Document and Entity Information
Document and Entity Information Document and Entity Information | 3 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Dec. 31, 2019 |
Entity File Number | 001-13836 |
Entity Registrant Name | JOHNSON CONTROLS INTERNATIONAL PLC |
Document Transition Report | false |
Entity Incorporation, State or Country Code | L2 |
Entity Tax Identification Number | 98-0390500 |
Entity Address, Address Line One | One Albert Quay |
Entity Address, City or Town | Cork |
Entity Address, Country | IE |
Entity Address, Postal Zip Code | T12 X8N6 |
City Area Code | (353) |
Local Phone Number | 21-423-5000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Shell Company | false |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Central Index Key | 0000833444 |
Entity Common Stock, Shares Outstanding | 764,047,226 |
Ordinary Shares, Par Value 0.01 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary Shares, Par Value $0.01 |
Trading Symbol | JCI |
Security Exchange Name | NYSE |
Notes 5.000 Percent Due 2020 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 5.000% Senior Notes due 2020 |
Trading Symbol | JCI20A |
Security Exchange Name | NYSE |
Notes 0.000 Percent Due 2020 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 0.000% Senior Notes due 2020 |
Trading Symbol | JCI20B |
Security Exchange Name | NYSE |
Notes 4.250 Percent Due 2021 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 4.25% Senior Notes due 2021 |
Trading Symbol | JCI21B |
Security Exchange Name | NYSE |
Notes 3.750 Percent Due 2021 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 3.750% Senior Notes due 2021 |
Trading Symbol | JCI21C |
Security Exchange Name | NYSE |
Notes 4.625 Percent Due 2023 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 4.625% Notes due 2023 |
Trading Symbol | JCI23 |
Security Exchange Name | NYSE |
Notes 1.000 Percent Due 2023 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 1.000% Senior Notes due 2023 |
Trading Symbol | JCI23A |
Security Exchange Name | NYSE |
Notes 3.625 Percent Due 2024 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 3.625% Senior Notes due 2024 |
Trading Symbol | JCI24A |
Security Exchange Name | NYSE |
Notes 1.375 Percent Due 2025 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 1.375% Notes due 2025 |
Trading Symbol | JCI25A |
Security Exchange Name | NYSE |
Notes 3.900 Percent Due 2026 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 3.900% Notes due 2026 |
Trading Symbol | JCI26A |
Security Exchange Name | NYSE |
Notes 6.000 Percent Due 2036 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 6.000% Notes due 2036 |
Trading Symbol | JCI36A |
Security Exchange Name | NYSE |
Notes 5.700 Percent Due 2041 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 5.70% Senior Notes due 2041 |
Trading Symbol | JCI41B |
Security Exchange Name | NYSE |
Notes 5.250 Percent Due 2041 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 5.250% Senior Notes due 2041 |
Trading Symbol | JCI41C |
Security Exchange Name | NYSE |
Notes 4.625 Percent due 2044 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 4.625% Senior Notes due 2044 |
Trading Symbol | JCI44A |
Security Exchange Name | NYSE |
Notes 5.125 Percent Due 2045 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 5.125% Notes due 2045 |
Trading Symbol | JCI45B |
Security Exchange Name | NYSE |
Debentures 6.950 Percent Due December 1, 2045 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 6.950% Debentures due December 1, 2045 |
Trading Symbol | JCI45A |
Security Exchange Name | NYSE |
Notes 4.500 Percent Due 2047 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 4.500% Senior Notes due 2047 |
Trading Symbol | JCI47 |
Security Exchange Name | NYSE |
Notes 4.950 Percent Due 2064 [Domain] | |
Document Information [Line Items] | |
Title of 12(b) Security | 4.950% Senior Notes due 2064 |
Trading Symbol | JCI64A |
Security Exchange Name | NYSE |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Assets | ||
Cash and cash equivalents | $ 2,160 | $ 2,805 |
Accounts receivable - net | 5,612 | 5,770 |
Inventories | 1,953 | 1,814 |
Assets held for sale | 87 | 98 |
Other current assets | 1,508 | 1,906 |
Current assets | 11,320 | 12,393 |
Property, plant and equipment - net | 3,341 | 3,348 |
Goodwill | 18,351 | 18,178 |
Other intangible assets - net | 5,610 | 5,632 |
Investments in partially-owned affiliates | 865 | 853 |
Noncurrent assets held for sale | 46 | 60 |
Other noncurrent assets | 2,980 | 1,823 |
Total assets | 42,513 | 42,287 |
Liabilities and Equity | ||
Short-term debt | 20 | 10 |
Current portion of long-term debt | 1,342 | 501 |
Accounts payable | 3,336 | 3,582 |
Accrued compensation and benefits | 844 | 953 |
Deferred revenue | 1,495 | 1,407 |
Liabilities held for sale | 44 | 44 |
Other current liabilities | 2,611 | 2,573 |
Current liabilities | 9,692 | 9,070 |
Long-term debt | 5,920 | 6,708 |
Pension and postretirement benefits | 1,013 | 1,044 |
Other noncurrent liabilities | 5,457 | 4,636 |
Long-term liabilities | 12,390 | 12,388 |
Commitments and contingencies (Note 21) | ||
Ordinary shares, $0.01 par value | 8 | 8 |
Ordinary A shares, €1.00 par value | 0 | 0 |
Preferred shares, $0.01 par value | 0 | 0 |
Ordinary shares held in treasury, at cost | (1,116) | (1,086) |
Capital in excess of par value | 16,848 | 16,812 |
Retained earnings | 4,129 | 4,827 |
Accumulated other comprehensive loss | (540) | (795) |
Shareholders' equity attributable to Johnson Controls | 19,329 | 19,766 |
Noncontrolling interests | 1,102 | 1,063 |
Total equity | 20,431 | 20,829 |
Total liabilities and equity | $ 42,513 | $ 42,287 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) | Dec. 31, 2019€ / shares | Dec. 31, 2019$ / shares | Sep. 30, 2019€ / shares | Sep. 30, 2019$ / shares |
Ordinary shares, par value | $ 0.01 | $ 0.01 | ||
Preferred shares, par value | $ 0.01 | $ 0.01 | ||
Common Class A [Member] | ||||
Ordinary shares, par value | € / shares | € 1 | € 1 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Net sales | $ 5,576 | $ 5,464 | |
Cost of sales | 3,773 | 3,739 | |
Gross profit | 1,803 | 1,725 | |
Selling, general and administrative expenses | (1,427) | (1,438) | |
Restructuring and impairment costs | (111) | 0 | |
Net financing charges | (52) | (85) | |
Equity income | 43 | 42 | |
Income from continuing operations before income taxes | 256 | 244 | |
Income tax provision | 65 | 108 | |
Income from continuing operations | 191 | 136 | |
Income from discontinued operations, net of tax (Note 4) | 0 | 263 | |
Net income | 191 | 399 | |
Income from continuing operations attributable to noncontrolling interests | 32 | 29 | |
Income from discontinued operations attributable to noncontrolling interests | 0 | 15 | |
Net income attributable to Johnson Controls | 159 | 355 | |
Amounts attributable to Johnson Controls ordinary shareholders | |||
Income from continuing operations | 159 | 107 | |
Income from discontinued operations | $ 0 | $ 248 | |
Earnings per share | |||
Basic earnings per share from continuing operations | $ 0.21 | $ 0.12 | |
Basic earnings per share from discontinued operations | 0 | 0.27 | |
Basic earnings per share | 0.21 | 0.39 | |
Diluted earnings per share from continuing operations | 0.21 | 0.12 | |
Diluted earnings per share from discontinued operations | 0 | 0.27 | |
Diluted earnings per share | [1] | $ 0.21 | $ 0.38 |
Products and Systems [Member] | |||
Net sales | $ 4,036 | $ 3,922 | |
Cost of sales | 2,866 | 2,824 | |
Services [Member] | |||
Net sales | 1,540 | 1,542 | |
Cost of sales | $ 907 | $ 915 | |
[1] | Certain items do not sum due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 191 | $ 399 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | 261 | (118) |
Realized and unrealized gains on derivatives | 7 | 2 |
Pension and postretirement plans | (1) | 0 |
Other comprehensive income (loss) | 267 | (116) |
Total comprehensive income | 458 | 283 |
Comprehensive income attributable to noncontrolling interests | 44 | 54 |
Comprehensive income attributable to Johnson Controls | $ 414 | $ 229 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities of Continuing Operations | ||
Net income from continuing operations attributable to Johnson Controls | $ 159 | $ 107 |
Income from continuing operations attributable to noncontrolling interests | 32 | 29 |
Income from discontinued operations attributable to noncontrolling interests | 0 | 15 |
Income from continuing operations | 191 | 136 |
Adjustments to reconcile net income from continuing operations to cash provided by operating activities: | ||
Depreciation and amortization | 207 | 211 |
Pension and postretirement benefit income | (40) | (29) |
Pension and postretirement contributions | (12) | (21) |
Equity in earnings of partially-owned affiliates, net of dividends received | 8 | (36) |
Deferred income taxes | (3) | 43 |
Non-cash restructuring and impairment charges | 54 | 0 |
Equity-based compensation | 23 | 18 |
Other - net | (7) | 10 |
Changes in assets and liabilities, excluding acquisitions and divestitures: | ||
Accounts receivable | 237 | 146 |
Inventories | (114) | (222) |
Other assets | (92) | (63) |
Restructuring reserves | 33 | (25) |
Accounts payable and accrued liabilities | (498) | (226) |
Accrued income taxes | 524 | (21) |
Cash provided (used) by operating activities from continuing operations | 511 | (79) |
Investing Activities of Continuing Operations | ||
Capital expenditures | (126) | (153) |
Sale of property, plant and equipment | 1 | 2 |
Acquisition of businesses, net of cash acquired | (48) | (13) |
Business divestitures, net of cash divested | 0 | 6 |
Proceeds (payments) for equity swap | 0 | 7 |
Changes in long-term investments | 0 | 15 |
Cash used by investing activities from continuing operations | (173) | (136) |
Financing Activities of Continuing Operations | ||
Increase in short-term debt - net | 10 | 1,014 |
Debt financing costs | (4) | 0 |
Stock repurchases and retirements | (651) | (467) |
Payment of cash dividends | (203) | (240) |
Proceeds from the exercise of stock options | 21 | 13 |
Employee equity-based compensation withholding taxes | (20) | (21) |
Dividends paid to noncontrolling interests | (5) | (43) |
Other - net | 2 | 0 |
Cash provided (used) by financing activities from continuing operations | (850) | 256 |
Cash Provided (Used) by Operating Activities, Discontinued Operations | (194) | 193 |
Cash Used by Investing Activities, Discontinued Operations | 0 | (66) |
Cash Used by Financing Activities, Discontinued Operations | 0 | (11) |
Net Cash Provided (Used) by Discontinued Operations | (194) | 116 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | 57 | (43) |
Change in cash held for sale | 0 | (2) |
Increase (decrease) in Cash, Cash Equivalents and Restricted Cash | (649) | 112 |
Cash, cash equivalents and restricted cash at beginning of period | 2,821 | 200 |
Cash, cash equivalents and restricted cash at end of period | 2,172 | 312 |
Less: Restricted Cash | 12 | 20 |
Cash and cash equivalents at end of period | $ 2,160 | $ 292 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity Attributable to Johnson Controls Ordinary Shareholders Consolidated Statements of Shareholders' Equity Attributable to Johnson Controls Ordinary Shareholders - USD ($) $ in Millions | Total | Ordinary Shares | Capital in excess of par value | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Loss | |
Beginning balance at Sep. 30, 2018 | $ 21,164 | $ 10 | $ 16,549 | $ 6,604 | $ (1,053) | $ (946) | |
Comprehensive income (loss) | 229 | 0 | 0 | 355 | 0 | (126) | |
Cash dividends - ordinary shares | (240) | 0 | 0 | (240) | 0 | 0 | |
Treasury Stock, Value, Acquired, Cost Method | (467) | 0 | 0 | 0 | (467) | 0 | |
Accounting Pronouncement | Adoption of ASC 606 | (45) | 0 | 0 | (45) | 0 | 0 | |
Accounting Pronouncement | Adoption of ASU 2016-01 | 0 | 0 | 0 | 8 | 0 | (8) | |
Accounting Pronouncement | Adoption of ASU 2016-16 | (546) | 0 | 0 | (546) | 0 | 0 | |
Other, including options exercised | 7 | 0 | 30 | 0 | (23) | 0 | |
Ending balance at Dec. 31, 2018 | 20,102 | 10 | 16,579 | 6,136 | (1,543) | (1,080) | |
Beginning balance at Sep. 30, 2019 | 19,766 | 8 | 16,812 | 4,827 | (1,086) | (795) | |
Comprehensive income (loss) | 414 | 0 | 0 | 159 | 0 | 255 | |
Cash dividends - ordinary shares | (201) | 0 | 0 | (201) | 0 | 0 | |
Stock Repurchased and Retired During Period, Value | (651) | 0 | 0 | (651) | 0 | 0 | |
Accounting Pronouncement | Adoption of ASU 2016-01 | [1] | 0 | |||||
Accounting Pronouncement | Adoption of ASC 842 | (5) | 0 | 0 | (5) | 0 | 0 | |
Other, including options exercised | 6 | 0 | 36 | 0 | (30) | 0 | |
Ending balance at Dec. 31, 2019 | $ 19,329 | $ 8 | $ 16,848 | $ 4,129 | $ (1,116) | $ (540) | |
[1] | ** During the quarter ended December 31, 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." As a result, the Company reclassified $8 million of unrealized gains on marketable securities to retained earnings as of October 1, 2018. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity Attributable to Johnson Controls Ordinary Shareholders Consolidated Statements of Shareholders' Equity Attributable to Johnson Controls Ordinary Shareholders (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retained Earnings | ||
Dividend declared | $ 0.26 | $ 0.26 |
Financial Statements
Financial Statements | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statements | Financial Statements The consolidated financial statements include the consolidated accounts of Johnson Controls International plc, a corporation organized under the laws of Ireland, and its subsidiaries (Johnson Controls International plc and all its subsidiaries, hereinafter collectively referred to as the "Company" or "Johnson Controls"). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (which include normal recurring adjustments) necessary to state fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"). These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2019 filed with the SEC on November 21, 2019. The results of operations for the three month period ended December 31, 2019 are not necessarily indicative of results for the Company’s 2020 fiscal year because of seasonal and other factors. Nature of Operations Johnson Controls International plc, headquartered in Cork, Ireland, is a global diversified technology and multi industrial leader serving a wide range of customers in more than 150 countries. The Company creates intelligent buildings, efficient energy solutions and integrated infrastructure that work seamlessly together to deliver on the promise of smart cities and communities. The Company is committed to helping its customers win and creating greater value for all of its stakeholders through its strategic focus on buildings. The Company is a global market leader in engineering, developing, manufacturing and installing building products and systems around the world, including heating, ventilating, air-conditioning ("HVAC") equipment, HVAC controls, energy-management systems, security systems, fire detection systems and fire suppression solutions. The Company further serves customers by providing technical services (in the HVAC, security and fire-protection space), energy-management consulting and data-driven solutions via its data-enabled business. Finally, the Company has a strong presence in the North American residential air conditioning and heating systems market and is a global market leader in industrial refrigeration products. Principles of Consolidation The consolidated financial statements include the consolidated accounts of Johnson Controls International plc and its subsidiaries that are consolidated in conformity with U.S. GAAP. All significant intercompany transactions have been eliminated. The results of companies acquired or disposed of during the year are included in the consolidated financial statements from the effective date of acquisition or up to the date of disposal. Investments in partially-owned affiliates are accounted for by the equity method when the Company’s interest exceeds 20% and the Company does not have a controlling interest. The Company consolidates variable interest entities ("VIE") in which the Company has the power to direct the significant activities of the entity and the obligation to absorb losses or receive benefits from the entity that may be significant. The Company did not have a significant variable interest in any consolidated or nonconsolidated VIEs in its continuing operations for the presented reporting periods. Restricted Cash At December 31, 2019 and September 30, 2019 , the Company held restricted cash of approximately $12 million and $16 million , respectively, all of which was recorded within other current assets in the consolidated statements of financial position. These amounts were related to cash restricted for payment of asbestos liabilities. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." ASU No. 2016-02 requires recognition of operating leases as lease assets and liabilities on the balance sheet, and disclosure of key information about leasing arrangements. The Company adopted Topic 842 and the related amendments using a modified-retrospective approach as of October 1, 2019 and applied the new guidance to all leases through a cumulative-effect adjustment to beginning retained earnings. The comparative periods have not been recast and continue to be reported under the previous lease accounting guidance. The Company has elected to apply the package of transitional practical expedients, under which the Company did not reassess prior conclusions about lease identification, lease classification, and initial direct costs of existing leases as of the date of adoption. The adoption of the new guidance resulted in recognition of a right-of-use asset and related lease liabilities of $1.1 billion , with an immaterial impact to retained earnings. Refer to Note 6, “Leases,” for additional lease disclosures. Other recently issued accounting pronouncements are not expected to have a material impact on the Company's consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition and Divestitures | Acquisitions and Divestitures During the first quarter of fiscal 2020, the Company completed certain acquisitions for a combined purchase price, net of cash acquired, of $54 million , of which $48 million was paid as of December 31, 2019 . In connection with the acquisitions, the Company recorded goodwill of $17 million within the Global Products segment and $12 million within the Building Solutions EMEA/LA segment. During the first quarter of fiscal 2019, the Company completed an acquisition for a purchase price of $13 million , all of which was paid as of December 31, 2018 . In connection with the acquisition, the Company recorded goodwill of $9 million within the Global Products segment. During the first quarter of fiscal 2019, the Company completed certain divestitures within the Global Products business. The combined selling price was $6 million , all of which was received as of December 31, 2018 . |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Discontinued Operations On November 13, 2018, the Company entered into a Stock and Asset Purchase Agreement (“Purchase Agreement”) with BCP Acquisitions LLC (“Purchaser”). The Purchaser is a newly-formed entity controlled by investment funds managed by Brookfield Capital Partners LLC. Pursuant to the Purchase Agreement, on the terms and subject to the conditions therein, the Company agreed to sell, and Purchaser agreed to acquire, the Company’s Power Solutions business for a purchase price of $13.2 billion . The transaction closed on April 30, 2019 with net cash proceeds of $11.6 billion after tax and transaction-related expenses. During the first quarter of fiscal 2019, the Company determined that its Power Solutions business met the criteria to be classified as a discontinued operation and, as a result, Power Solutions' historical financial results are reflected in the Company's consolidated financial statements as a discontinued operation, and assets and liabilities were retrospectively reclassified as assets and liabilities held for sale. The Company did not allocate any general corporate overhead to discontinued operations. The following table summarizes the results of Power Solutions reclassified as discontinued operations for the three month period ended December 31, 2018 (in millions). Three Months Ended 2018 Net sales $ 2,427 Income from discontinued operations before income taxes 390 Provision for income taxes on discontinued operations (127 ) Income from discontinued operations attributable to noncontrolling interests, net of tax (15 ) Income from discontinued operations $ 248 For the three months ended December 31, 2018 , income from discontinued operations before income taxes included transaction costs of $28 million and a favorable impact of $32 million for ceasing depreciation and amortization expense as the business was held for sale. For the three months ended December 31, 2018 , the effective tax rate was more than the Irish statutory rate of 12.5% primarily due the establishment of a deferred tax liability on the outside basis difference of the Company's investment in certain subsidiaries related to the planned divestiture of the business and tax rate differentials. Assets and Liabilities Held for Sale During the third quarter of fiscal 2019, the Company determined that a business within its Global Products segment met the criteria to be classified as held for sale. The assets and liabilities of this business are presented as held for sale in the consolidated statements of financial position as of December 31, 2019 and September 30, 2019. Assets and liabilities held for sale are required to be recorded at the lower of carrying value or fair value less any costs to sell. Accordingly, the Company has recorded total impairment charges of $250 million within restructuring and impairment costs in the consolidated statements of income to write down the carrying value of the assets held for sale to fair value less any costs to sell. Of the $250 million total impairment charges, $235 million was recorded during the third quarter of fiscal 2019, and $15 million was recorded during the first quarter of fiscal 2020. Refer to Note 18, "Impairment of Long-Lived Assets" of the notes to consolidated financial statements for further information regarding the impairment charges. The divestiture of the business held for sale could result in a gain or loss on sale to the extent the ultimate selling price differs from the current carrying value of the net assets recorded. The business did not meet the criteria to be classified as a discontinued operation as the divestiture of the business will not have a major effect on the Company's operations and financial results. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition Disaggregated Revenue The following table presents the Company's revenues disaggregated by segment and by products and systems versus services revenue for the three months ended December 31, 2019 and 2018 (in millions): Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 Products & Systems Services Total Products & Systems Services Total Building Solutions North America $ 1,356 $ 811 $ 2,167 $ 1,321 $ 795 $ 2,116 Building Solutions EMEA/LA 457 471 928 417 490 907 Building Solutions Asia Pacific 371 258 629 356 257 613 Global Products 1,852 — 1,852 1,828 — 1,828 Total $ 4,036 $ 1,540 $ 5,576 $ 3,922 $ 1,542 $ 5,464 The following table presents further disaggregation of Global Products segment revenues by product type for the three months ended December 31, 2019 and 2018 (in millions): Three Months Ended 2019 2018 Building management systems $ 300 $ 281 HVAC & refrigeration equipment 1,285 1,285 Specialty products 267 262 Total $ 1,852 $ 1,828 Contract Balances Contract assets relate to the Company’s right to consideration for performance obligations satisfied but not billed and consist of unbilled receivables and costs in excess of billings. Contract liabilities relate to customer payments received in advance of satisfaction of performance obligations under the contract. Contract liabilities consist of deferred revenue. Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. The following table presents the location and amount of contract balances in the Company's consolidated statements of financial position (in millions): Location of contract balances December 31, 2019 September 30, 2019 Contract assets - current Accounts receivable - net $ 1,465 $ 1,389 Contract assets - noncurrent Other noncurrent assets 99 90 Contract liabilities - current Deferred revenue (1,495 ) (1,407 ) Contract liabilities - noncurrent Other noncurrent liabilities (119 ) (117 ) Total $ (50 ) $ (45 ) For the three months ended December 31, 2019 and December 31, 2018 , the Company recognized revenue of $686 million and $712 million , respectively, that was included in the beginning of period contract liability balance. Performance Obligations A performance obligation is a distinct good, service, or a bundle of goods and services promised in a contract. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When contracts with customers require significant and complex integration, contain goods or services which are highly interdependent or interrelated, or are goods or services which significantly modify or customize other promises in the contracts and, therefore, are not distinct, then the entire contract is accounted for as a single performance obligation. For any contracts with multiple performance obligations, the contract’s transaction price is allocated to each performance obligation based on the estimated relative standalone selling price of each distinct good or service in the contract. For product sales, each product sold to a customer typically represents a distinct performance obligation. Performance obligations are satisfied as of a point in time or over time. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. As of December 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $14.7 billion , of which approximately 60% is expected to be recognized as revenue over the next two years. The remaining performance obligations expected to be recognized in revenue beyond two years primarily relate to large, multi-purpose contracts to construct hospitals, schools and other governmental buildings, which include services to be performed over the building's lifetime, with initial contract terms of 25 to 35 years. Future contract modifications could affect both the timing and the amount of the remaining performance obligations. The Company excludes the value of remaining performance obligations for contracts with an original expected duration of one year or less. Costs to Obtain or Fulfill a Contract The Company recognizes the incremental costs incurred to obtain or fulfill a contract with a customer as an asset when these costs are recoverable. These costs consist primarily of sales commissions and bid/proposal costs. Costs to obtain or fulfill a contract are capitalized and amortized to revenue over the period of contract performance. As of December 31, 2019 , the Company recorded the costs to obtain or fulfill a contract of $236 million , of which $127 million is recorded within other current assets and $109 million is recorded within other noncurrent assets in the consolidated statements of financial position. As of September 30, 2019 , the Company recorded the costs to obtain or fulfill a contract of $212 million , of which $110 million is recorded within other current assets and $102 million is recorded within other noncurrent assets in the consolidated statements of financial position. During the three months ended December 31, 2019 and 2018 , the Company recognized amortization expense of $26 million and $35 million , respectively, related to costs to obtain or fulfill a contract. There were no impairment losses recognized in the three months ended December 31, 2019 and 2018 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases Lessee arrangements The Company leases certain administrative, production and other facilities, fleet vehicles, information technology equipment and other equipment under arrangements that are accounted for as operating leases. The Company determines whether an arrangement contains a lease at contract inception based on whether the arrangement involves the use of a physically distinct identified asset and whether the Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period as well as the right to direct the use of the asset. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Right-of-use assets and the corresponding lease liabilities are recognized at commencement date based on the present value of lease payments for all leases with terms longer than twelve months. As the majority of the Company's leases do not provide an implicit interest rate, to determine the present value of lease payments, the Company uses its incremental borrowing rate based on information available on the lease commencement date and uses the implicit rate when readily determinable. The Company determines its incremental borrowing rate based on a comparable market yield curve consistent with the Company's credit rating, term of the lease and relative economic environment. The Company has elected to combine lease and non-lease components for its leases. Most leases contain options to renew or terminate the lease. Right-of-use assets and lease liabilities reflect only the options which the Company is reasonably certain to exercise. Lease expense is recognized on a straight-line basis over the lease term. The Company has certain real estate leases that contain variable lease payments which are based on changes in the Consumer Price Index (CPI). Additionally, the Company’s leases generally require it to pay for fuel, maintenance, repair, insurance and taxes. These payments are not included in the right-of-use asset or lease liability and are expensed as incurred. The following table presents the Company’s lease costs for the three months ended December 31, 2019 (in millions): Three Months Ended 2019 Operating lease cost $ 99 Variable lease cost 40 Total lease costs $ 139 The following table presents supplemental consolidated statement of financial position information as of December 31, 2019 (in millions): Location of lease balances December 31, 2019 Operating lease right-of-use assets Other noncurrent assets $ 1,091 Operating lease liabilities - current Other current liabilities 322 Operating lease liabilities - noncurrent Other noncurrent liabilities 790 Weighted-average remaining lease term 6 years Weighted-average discount rate 2.3 % The following table presents supplemental cash flow information related to operating leases for the three months ended December 31, 2019 (in millions): Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liability: Operating cash outflows from operating leases $ 97 Noncash operating lease activity: Right-of-use assets obtained in exchange for operating lease liabilities 74 The following table presents maturities of operating lease liabilities as of December 31, 2019 (in millions): December 31, 2019 2020 (9 months) $ 264 2021 304 2022 217 2023 126 2024 85 After 2024 192 Total operating lease payments 1,188 Less interest (76 ) Present value of lease payments $ 1,112 As previously disclosed in the Company's Annual Report on Form 10-K for the year ended September 30, 2019 and accounted for under the previous lease accounting guidance, future minimum operating lease payments for long-term noncancellable operating leases as of September 30, 2019 were as follows (in millions): September 30, 2019 2020 $ 352 2021 287 2022 200 2023 111 2024 71 After 2024 172 Total minimum lease payments $ 1,193 Lessor arrangements The Company's monitoring services and maintenance agreements within its electronic security business that include the subscriber system assets for which the Company retains ownership contain both lease and nonlease components. The Company has elected the practical expedient to combine lease and nonlease components for these arrangements where the timing and pattern of transfer of the lease and nonlease components are the same and the lease component would be classified as an operating lease if accounted for separately. The Company has concluded that in these arrangements the nonlease components are the predominant characteristic and as a result, the combined component is accounted for under the revenue guidance. |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): December 31, 2019 September 30, 2019 Raw materials and supplies $ 637 $ 588 Work-in-process 167 176 Finished goods 1,149 1,050 Inventories $ 1,953 $ 1,814 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill in each of the Company’s reportable segments for the three month period ended December 31, 2019 were as follows (in millions): Business Acquisitions Currency Translation and Other September 30, December 31, 2019 2019 Building Solutions North America $ 9,588 $ — $ 12 $ 9,600 Building Solutions EMEA/LA 1,849 12 67 1,928 Building Solutions Asia Pacific 1,194 — 36 1,230 Global Products 5,547 17 29 5,593 Total $ 18,178 $ 29 $ 144 $ 18,351 At September 30, 2019 , accumulated goodwill impairment charges included $47 million related to the Building Solutions EMEA/LA - Latin America reporting unit. The Company’s other intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of (in millions): December 31, 2019 September 30, 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets Technology $ 1,328 $ (403 ) $ 925 $ 1,307 $ (370 ) $ 937 Customer relationships 2,754 (817 ) 1,937 2,722 (759 ) 1,963 Miscellaneous 585 (231 ) 354 584 (224 ) 360 Total amortized intangible assets 4,667 (1,451 ) 3,216 4,613 (1,353 ) 3,260 Unamortized intangible assets Trademarks/trade names 2,304 — 2,304 2,282 — 2,282 Miscellaneous 90 — 90 90 — 90 2,394 — 2,394 2,372 — 2,372 Total intangible assets $ 7,061 $ (1,451 ) $ 5,610 $ 6,985 $ (1,353 ) $ 5,632 Amortization of other intangible assets included within continuing operations for the three month period s ended December 31, 2019 and 2018 was $96 million and $97 million , respectively. Excluding the impact of any future acquisitions, the Company anticipates amortization for fiscal 2021 , 2022 , 2023 , 2024 and 2025 will be approximately $394 million , $390 million , $379 million , $368 million and $344 million per year, respectively. |
Significant Restructuring Costs
Significant Restructuring Costs | 3 Months Ended |
Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |
Significant Restructuring and Impairment Costs | Significant Restructuring and Impairment Costs To better align its resources with its growth strategies and reduce the cost structure of its global operations in certain underlying markets, the Company commits to restructuring plans as necessary. In fiscal 2020, the Company committed to a significant restructuring plan ("2020 Plan") and recorded $111 million of restructuring and impairment costs for continuing operations in the consolidated statements of income. This was the total amount incurred to date and the total amount expected to be incurred for this restructuring plan. The restructuring actions related primarily to cost reduction initiatives. The costs consist primarily of workforce reductions, plant closures and asset impairments. Of the restructuring and impairment costs recorded, $87 million related to the Global Products segment, $10 million related to the Building Solutions Asia Pacific segment, $8 million related to the Building Solutions North America segment and $6 million related to the Building Solutions EMEA/LA segment. The restructuring actions are expected to be substantially complete in fiscal 2020. The following table summarizes the changes in the Company’s 2020 Plan reserve, included within other current liabilities in the consolidated statements of financial position (in millions): Employee Severance and Termination Benefits Long-Lived Asset Impairments Other Total Original reserve $ 54 $ 54 $ 3 $ 111 Utilized—cash (8 ) — — (8 ) Utilized—noncash — (54 ) — (54 ) Balance at December 31, 2019 $ 46 $ — $ 3 $ 49 In fiscal 2018, the Company committed to a significant restructuring plan ("2018 Plan") and recorded $255 million of restructuring and impairment costs for continuing operations in the consolidated statements of income. This was the total amount incurred to date and the total amount expected to be incurred for this restructuring plan. The restructuring actions related to cost reduction initiatives in the Company’s Building Technologies & Solutions businesses and at Corporate. The costs consist primarily of workforce reductions, plant closures and asset impairments. Of the restructuring and impairment costs recorded, $113 million related to the Global Products segment, $56 million related to the Building Solutions EMEA/LA segment, $50 million related to Corporate, $20 million related to the Building Solutions North America segment and $16 million related to the Building Solutions Asia Pacific segment. The restructuring actions are expected to be substantially complete in 2020. Additionally, the Company recorded $8 million of restructuring and impairment costs related to Power Solutions in fiscal 2018. This is reported within discontinued operations. The following table summarizes the changes in the Company’s 2018 Plan reserve, included within other current liabilities in the consolidated statements of financial position (in millions): Employee Severance and Termination Benefits Long-Lived Asset Impairments Other Currency Total Original reserve $ 209 $ 42 $ 12 $ — $ 263 Utilized—cash (45 ) — (2 ) — (47 ) Utilized—noncash — (42 ) — — (42 ) Balance at September 30, 2018 $ 164 $ — $ 10 $ — $ 174 Utilized—cash (61 ) — (6 ) — (67 ) Utilized—noncash — — — (1 ) (1 ) Transfer to liabilities held for sale (4 ) — — — (4 ) Balance at September 30, 2019 $ 99 $ — $ 4 $ (1 ) $ 102 Utilized—cash (5 ) — — — (5 ) Utilized—noncash — — — 2 2 Adoption of ASC 842 1 — — (4 ) — (4 ) Balance at December 31, 2019 $ 94 $ — $ — $ 1 $ 95 1 Represents liability for facility closings recorded as an offset to right-of-use asset upon adoption of ASC 842. In fiscal 2017, the Company committed to a significant restructuring plan ("2017 Plan") and recorded $347 million of restructuring and impairment costs for continuing operations in the consolidated statements of income. This was the total amount incurred to date and the total amount expected to be incurred for this restructuring plan. The restructuring actions related to cost reduction initiatives in the Company’s Building Technologies & Solutions businesses and at Corporate. The costs consist primarily of workforce reductions, plant closures and asset impairments. Of the restructuring and impairment costs recorded, $166 million related to Corporate, $74 million related to the Building Solutions EMEA/LA segment, $59 million related to the Building Solutions North America segment, $32 million related to the Global Products segment and $16 million related to the Building Solutions Asia Pacific segment. The restructuring actions are expected to be substantially complete in fiscal 2020. Additionally, the Company recorded $20 million of restructuring and impairment costs related to Power Solutions in fiscal 2017. This is reported within discontinued operations. The following table summarizes the changes in the Company’s 2017 Plan reserve, included within other current liabilities in the consolidated statements of financial position (in millions): Employee Severance and Termination Benefits Long-Lived Asset Impairments Other Currency Total Original reserve $ 276 $ 77 $ 14 $ — $ 367 Utilized—cash (75 ) — — — (75 ) Utilized—noncash — (77 ) (1 ) — (78 ) Adjustment to restructuring reserves 25 — — — 25 Balance at September 30, 2017 $ 226 $ — $ 13 $ — $ 239 Utilized—cash (152 ) — (6 ) — (158 ) Utilized—noncash — — — (1 ) (1 ) Balance at September 30, 2018 $ 74 $ — $ 7 $ (1 ) $ 80 Utilized—cash (11 ) — (2 ) — (13 ) Utilized—noncash — — — (3 ) (3 ) Transfer to liabilities held for sale (3 ) — — — (3 ) Balance at September 30, 2019 $ 60 $ — $ 5 $ (4 ) $ 61 Utilized—cash (10 ) — — — (10 ) Adoption of ASC 842 1 — — (5 ) — (5 ) Balance at December 31, 2019 $ 50 $ — $ — $ (4 ) $ 46 1 Represents liability for facility closings recorded as an offset to right-of-use asset upon adoption of ASC 842. The Company's fiscal 2020, 2018 and 2017 restructuring plans included workforce reductions of approximately 11,200 employees ( 9,000 for the Building Technologies & Solutions business and 2,200 for Corporate). Restructuring charges associated with employee severance and termination benefits are paid over the severance period granted to each employee or on a lump sum basis in accordance with individual severance agreements. As of December 31, 2019 , approximately 8,100 of the employees have been separated from the Company pursuant to the restructuring plans. In addition, the restructuring plans included nine plant closures in the Building Technologies & Solutions business. As of December 31, 2019 , eight of the nine plants have been closed. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known at each interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. The statutory tax rate in Ireland is being used as a comparison since the Company is domiciled in Ireland. For the three months ended December 31, 2019 , the Company's effective tax rate for continuing operations was 25% and was higher than the statutory tax rate of 12.5% primarily due to a discrete tax charge related to the remeasurement of deferred tax assets and liabilities as a result of Swiss tax reform and tax rate differentials, partially offset by the benefits of continuing global tax planning initiatives. For the three months ended December 31, 2018 , the Company's effective tax rate for continuing operations was 44% and was higher than the statutory tax rate of 12.5% primarily due to valuation allowance adjustments as a result of tax law changes and tax rate differentials, partially offset by the benefits of continuing global tax planning initiatives. Valuation Allowance The Company reviews the realizability of its deferred tax assets on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset are considered, along with any other positive or negative evidence. Since future financial results may differ from previous estimates, periodic adjustments to the Company’s valuation allowances may be necessary. In the first quarter of fiscal 2019, as a result of changes to U.S. tax law, the Company recorded a discrete tax charge of $76 million related to valuation allowances on certain U.S. deferred tax assets. Uncertain Tax Positions At September 30, 2019 , the Company had gross tax effected unrecognized tax benefits of $2,451 million , of which $2,121 million , if recognized, would impact the effective tax rate. Total net accrued interest at September 30, 2019 was approximately $181 million (net of tax benefit). The interest and penalties accrued during the three months ended December 31, 2019 were approximately $20 million (net of tax benefit). Interest and penalties accrued during the three months ended December 31, 2018 were immaterial. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company is currently under exam in the following major jurisdictions for continuing operations: Tax Jurisdiction Tax Years Covered Belgium 2015 - 2018 China 2008 - 2016 Germany 2007 - 2016 Japan 2015 - 2018 Luxembourg 2016 United Kingdom 2012 - 2015 It is reasonably possible that certain tax examinations and/or tax litigation will conclude within the next twelve months, which could have a material impact on tax expense. Impacts of Tax Legislation In the first quarter of fiscal 2020, the Company recorded a noncash discrete tax charge of $30 million due to the remeasurement of deferred tax assets and liabilities related to Switzerland and the canton of Schaffhausen. On September 28, 2018, the Swiss Parliament approved the Federal Act on Tax Reform and AHV Financing (“TRAF”), which was subsequently approved by the Swiss electorate on May 19, 2019. During the fourth quarter of fiscal 2019, the Swiss Federal Council enacted TRAF which becomes effective for the Company on January 1, 2020. The impacts of the federal enactment did not have a material impact to the Company’s financial statements. TRAF also provides for parameters which enable the Swiss cantons to adjust tax rates and establish new regulations for companies. As of September 30, 2019, the canton of Schaffhausen had not concluded its public referendum; however, the enactment did occur during the first quarter of fiscal 2020. During the three months ended December 31, 2019 and 2018 , other tax legislation was adopted in various jurisdictions. These law changes did not have a material impact on the Company's consolidated financial statements. Other Tax Matters In the first quarter of fiscal 2020, the Company recorded $111 million of significant restructuring and impairment costs. Refer to Note 9, “Significant Restructuring and Impairment Costs,” of the notes to consolidated financial statements for additional information. The restructuring costs generated a $16 million tax benefit, which reflects the Company’s current tax position in the impacted jurisdictions. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 3 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Pension and Postretirement Plans | Pension and Postretirement Plans The components of the Company’s net periodic benefit costs from continuing operations associated with its defined benefit pension and postretirement plans, which are primarily recorded in selling, general and administrative expenses in the consolidated statements of income, are shown in the tables below in accordance with ASC 715, "Compensation – Retirement Benefits" (in millions): U.S. Pension Plans Three Months Ended December 31, 2019 2018 Interest cost $ 18 $ 25 Expected return on plan assets (44 ) (46 ) Net periodic benefit credit $ (26 ) $ (21 ) Non-U.S. Pension Plans Three Months Ended December 31, 2019 2018 Service cost $ 6 $ 5 Interest cost 9 14 Expected return on plan assets (27 ) (27 ) Net periodic benefit credit $ (12 ) $ (8 ) Postretirement Benefits Three Months Ended December 31, 2019 2018 Interest cost $ 1 $ 2 Expected return on plan assets (2 ) (2 ) Amortization of prior service credit (1 ) — Net periodic benefit credit $ (2 ) $ — |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Net Financing Charges The Company's net financing charges line item in the consolidated statements of income for the three months ended December 31, 2019 and 2018 contained the following components (in millions): Three Months Ended December 31, 2019 2018 Interest expense, net of capitalized interest costs $ 62 $ 91 Banking fees and bond cost amortization 5 6 Interest income (13 ) (7 ) Net foreign exchange results for financing activities (2 ) (5 ) Net financing charges $ 52 $ 85 In December 2019, the Company entered into a syndicated $2.5 billion committed revolving credit facility, which is scheduled to expire in December 2024, and a syndicated $500 million committed revolving credit facility, which is scheduled to expire in December 2020. As of December 31, 2019, there were no draws on the facilities. In December 2019, the Company terminated its syndicated 5 -year $2 billion committed revolving credit facility and four 364 -day revolving credit facilities with total committed capacity of $750 million . |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On September 2, 2016, the shareholders of the Company approved amendments to the Johnson Controls International plc 2012 Share and Incentive Plan (the "Plan"). The types of awards authorized by the Plan comprise of stock options, stock appreciation rights, performance shares, performance units and other stock-based compensation awards. The Compensation Committee of the Company's Board of Directors determines the types of awards to be granted to individual participants and the terms and conditions of the awards. Awards are typically granted annually in the Company’s fiscal first quarter. A summary of the stock-based awards granted during the three month period s ended December 31, 2019 and 2018 is presented below: Three Months Ended December 31, 2019 2018 Number Granted Weighted Average Grant Date Fair Value Number Granted Weighted Average Grant Date Fair Value Stock options 1,302,729 $ 7.29 1,713,733 $ 5.56 Restricted stock/units 1,695,130 41.78 2,143,457 33.39 Performance shares 464,234 42.53 574,716 36.28 Stock Options Stock options are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. Stock option awards typically vest between two and three years after the grant date and expire ten years from the grant date. The fair value of each option is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. The expected life of options represents the period of time that options granted are expected to be outstanding, assessed separately for executives and non-executives. The risk-free interest rate for periods during the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the historical volatility of the Company’s stock since October 2016 blended with the historical volatility of certain peer companies’ stock prior to October 2016 over the most recent period corresponding to the expected life as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of the Company’s ordinary shares as of the grant date. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. Three Months Ended December 31, 2019 2018 Expected life of option (years) 6.5 6.4 Risk-free interest rate 1.67% 2.77% Expected volatility of the Company’s stock 22.4% 21.8% Expected dividend yield on the Company’s stock 2.49% 3.29% Restricted (Nonvested) Stock / Units The Plan provides for the award of restricted stock or restricted stock units to certain employees. These awards are typically share settled unless the employee is a non-U.S. employee or elects to defer settlement until retirement at which point the award would be settled in cash. Restricted awards typically vest over a period of three years from the grant date. The Plan allows for different vesting terms on specific grants with approval by the Board of Directors. The fair value of each share-settled restricted award is based on the closing market value of the Company’s ordinary shares on the date of grant. The fair value of each cash-settled restricted award is recalculated at the end of each reporting period based on the closing market value of the Company's ordinary shares at the end of the reporting period, and the liability and expense are adjusted based on the new fair value. Performance Share Awards The Plan permits the grant of performance-based share unit ("PSU") awards. The PSUs are generally contingent on the achievement of pre-determined performance goals over a performance period of three years as well as on the award holder's continuous employment until the vesting date. The PSUs are also indexed to the achievement of specified levels of total shareholder return versus a peer group over the performance period. Each PSU that is earned will be settled with shares of the Company's ordinary shares following the completion of the performance period, unless the award holder elected to defer a portion or all of the award until retirement which would then be settled in cash. The fair value of each PSU is estimated on the date of grant with the use of a Monte Carlo simulation that uses the assumptions noted in the following table. The risk-free interest rate for periods during the contractual life of the PSU is based on the U.S. Treasury yield curve in effect at the time of grant. For fiscal 2020, the expected volatility is based on the historical volatility of the Company's stock over the most recent three-year period as of the grant date. For fiscal 2019, the expected volatility is based on the historical volatility of the Company’s stock since October 2016 blended with the historical volatility of certain peer companies’ stock prior to October 2016 over the most recent three-year period as of the grant date. Three Months Ended December 31, 2019 2018 Risk-free interest rate 1.60% 2.76% Expected volatility of the Company’s stock 21.8% 22.9% |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company presents both basic and diluted earnings per share ("EPS") amounts. Basic EPS is calculated by dividing net income attributable to Johnson Controls by the weighted average number of ordinary shares outstanding during the reporting period. Diluted EPS is calculated by dividing net income attributable to Johnson Controls by the weighted average number of ordinary shares and ordinary equivalent shares outstanding during the reporting period that are calculated using the treasury stock method for stock options, unvested restricted stock and unvested performance share awards. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase ordinary shares at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future and compensation cost for future service that the Company has not yet recognized. For unvested restricted stock and unvested performance share awards, assumed proceeds under the treasury stock method would include unamortized compensation cost. The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share (in millions): Three Months Ended December 31, 2019 2018 Income Available to Ordinary Shareholders Income from continuing operations $ 159 $ 107 Income from discontinued operations — 248 Basic and diluted income available to shareholders $ 159 $ 355 Weighted Average Shares Outstanding Basic weighted average shares outstanding 769.9 921.6 Effect of dilutive securities: Stock options, unvested restricted stock and unvested performance share awards 4.1 3.6 Diluted weighted average shares outstanding 774.0 925.2 Antidilutive Securities Options to purchase shares 0.2 2.7 |
Equity and Noncontrolling Inter
Equity and Noncontrolling Interests | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity and Noncontrolling Interests | Equity and Noncontrolling Interests Other comprehensive income includes activity relating to discontinued operations. The following schedules present changes in consolidated equity attributable to Johnson Controls and noncontrolling interests (in millions, net of tax): Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 Equity Attributable to Johnson Controls International plc Equity Attributable to Noncontrolling Interests Total Equity Equity Attributable to Johnson Controls International plc Equity Attributable to Noncontrolling Interests Total Equity Beginning balance, September 30, $ 19,766 $ 1,063 $ 20,829 $ 21,164 $ 1,294 $ 22,458 Total comprehensive income: Net income 159 32 191 355 44 399 Foreign currency translation adjustments 251 10 261 (127 ) 9 (118 ) Realized and unrealized gains on derivatives 5 2 7 1 1 2 Pension and postretirement plans (1 ) — (1 ) — — — Other comprehensive income (loss) 255 12 267 (126 ) 10 (116 ) Comprehensive income 414 44 458 229 54 283 Other changes in equity: Cash dividends—ordinary shares (201 ) — (201 ) (240 ) — (240 ) Dividends attributable to noncontrolling interests — (5 ) (5 ) — (43 ) (43 ) Repurchases and retirements of ordinary shares (651 ) — (651 ) (467 ) — (467 ) Adoption of ASC 606 — — — (45 ) — (45 ) Adoption of ASU 2016-16 — — — (546 ) — (546 ) Adoption of ASC 842 (5 ) — (5 ) — — — Other, including options exercised 6 — 6 7 — 7 Ending balance, December 31, $ 19,329 $ 1,102 $ 20,431 $ 20,102 $ 1,305 $ 21,407 During the quarter ended December 31, 2018, the Company adopted ASC 606, "Revenue from Contracts with Customers." As a result, the Company recorded $45 million to beginning retained earnings, which relates primarily to deferred revenue recorded for the Power Solutions business for certain battery core returns that represent a material right provided to customers. During the quarter ended December 31, 2018, the Company adopted ASU 2016-16, "Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other Than Inventory." As a result, the Company recognized deferred taxes of $546 million related to the tax effects of all intra-entity sales of assets other than inventory on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of October 1, 2018. For the three months ended December 31, 2019 , the Company repurchased and retired $651 million of its ordinary shares. For the three months ended December 31, 2018 , the Company repurchased $467 million of its ordinary shares, which were retired in the fourth quarter of fiscal 2019. As of December 31, 2019 , approximately $3.9 billion remains available under the share repurchase program. The following schedules present changes in accumulated other comprehensive income ("AOCI") attributable to Johnson Controls (in millions, net of tax): Three Months Ended December 31, 2019 2018 Foreign currency translation adjustments ("CTA") Balance at beginning of period $ (785 ) $ (939 ) Aggregate adjustment for the period (net of tax effect of $0 and $0) 251 (127 ) Balance at end of period (534 ) (1,066 ) Realized and unrealized gains (losses) on derivatives Balance at beginning of period (2 ) (13 ) Current period changes in fair value (net of tax effect of $2 and $(2)) 5 (4 ) Reclassification to income (net of tax effect of $0 and $1) * — 5 Balance at end of period 3 (12 ) Realized and unrealized gains (losses) on marketable securities Balance at beginning of period — 8 Adoption of ASU 2016-01** — (8 ) Balance at end of period — — Pension and postretirement plans Balance at beginning of period (8 ) (2 ) Reclassification to income (net of tax effect of $0 and $0) (1 ) — Balance at end of period (9 ) (2 ) Accumulated other comprehensive loss, end of period $ (540 ) $ (1,080 ) * Refer to Note 16, "Derivative Instruments and Hedging Activities," of the notes to consolidated financial statements for disclosure of the line items in the consolidated statements of income affected by reclassifications from AOCI into income related to derivatives. ** During the quarter ended December 31, 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." As a result, the Company reclassified $8 million of unrealized gains on marketable securities to retained earnings as of October 1, 2018. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company selectively uses derivative instruments to reduce market risk associated with changes in foreign currency, commodities, stock-based compensation liabilities and interest rates. Under Company policy, the use of derivatives is restricted to those intended for hedging purposes; the use of any derivative instrument for speculative purposes is strictly prohibited. A description of each type of derivative utilized by the Company to manage risk is included in the following paragraphs. In addition, refer to Note 17, "Fair Value Measurements," of the notes to consolidated financial statements for information related to the fair value measurements and valuation methods utilized by the Company for each derivative type. Cash Flow Hedges The Company has global operations and participates in the foreign exchange markets to minimize its risk of loss from fluctuations in foreign currency exchange rates. The Company selectively hedges anticipated transactions that are subject to foreign exchange rate risk primarily using foreign currency exchange hedge contracts. The Company hedges 70% to 90% of the nominal amount of each of its known foreign exchange transactional exposures. The Company selectively hedges anticipated transactions that are subject to commodity price risk, primarily using commodity hedge contracts, to minimize overall price risk associated with the Company’s purchases of copper and aluminum in cases where commodity price risk cannot be naturally offset or hedged through supply base fixed price contracts. Commodity risks are systematically managed pursuant to policy guidelines. The maturities of the commodity hedge contracts coincide with the expected purchase of the commodities. As cash flow hedges under ASC 815, "Derivatives and Hedging," the hedge gains or losses due to changes in fair value are initially recorded as a component of AOCI and are subsequently reclassified into earnings when the hedged transactions occur and affect earnings. These contracts were highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates during the three months ended December 31, 2019 and 2018 . The Company had the following outstanding contracts to hedge forecasted commodity purchases (in metric tons): Volume Outstanding as of Commodity December 31, 2019 September 30, 2019 Copper 3,447 3,561 Aluminum 2,691 2,967 Net Investment Hedges The Company enters into foreign currency denominated debt obligations to selectively hedge portions of its net investment in non-U.S. subsidiaries. The currency effects of the debt obligations are reflected in the AOCI account within shareholders’ equity attributable to Johnson Controls ordinary shareholders where they offset currency gains and losses recorded on the Company’s net investments globally. At December 31, 2019 and September 30, 2019 , the Company had 888 million euro, 750 million euro, 423 million euro and 54 million euro in bonds designated as net investment hedges in the Company's net investment in Europe and 25 billion yen of foreign denominated debt designated as net investment hedge in the Company's net investment in Japan. Derivatives Not Designated as Hedging Instruments The Company selectively uses equity swaps to reduce market risk associated with certain of its stock-based compensation plans, such as its deferred compensation plans. These equity compensation liabilities increase as the Company’s stock price increases and decrease as the Company’s stock price decreases. In contrast, the value of the swap agreement moves in the opposite direction of these liabilities, allowing the Company to fix a portion of the liabilities at a stated amount. As of December 31, 2019 , the Company hedged approximately 1.4 million shares of its ordinary shares, which have a cost basis of $60 million . As of September 30, 2019 , the Company hedged approximately 1.4 million shares of its ordinary shares, which have a cost basis of $60 million . The Company also holds certain foreign currency forward contracts for which hedge accounting treatment was not elected. The change in fair value of foreign currency exchange derivatives not designated as hedging instruments under ASC 815 are recorded in the consolidated statements of income. Fair Value of Derivative Instruments The following table presents the location and fair values of derivative instruments and hedging activities included in the Company’s consolidated statements of financial position (in millions): Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815 Derivatives and Hedging Activities Not Designated as Hedging Instruments under ASC 815 December 31, September 30, December 31, September 30, 2019 2019 2019 2019 Other current assets Foreign currency exchange derivatives $ 10 $ 16 $ 37 $ 19 Commodity derivatives 1 — — — Other noncurrent assets Equity swap — — 58 62 Total assets $ 11 $ 16 $ 95 $ 81 Other current liabilities Foreign currency exchange derivatives $ 8 $ 23 $ 1 $ — Commodity derivatives — 1 — — Long-term debt Foreign currency denominated debt 2,602 2,544 — — Total liabilities $ 2,610 $ 2,568 $ 1 $ — Counterparty Credit Risk The use of derivative financial instruments exposes the Company to counterparty credit risk. The Company has established policies and procedures to limit the potential for counterparty credit risk, including establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. As a matter of practice, the Company deals with major banks worldwide having strong investment grade long-term credit ratings. To further reduce the risk of loss, the Company generally enters into International Swaps and Derivatives Association ("ISDA") master netting agreements with substantially all of its counterparties. The Company enters into ISDA master netting agreements with counterparties that permit the net settlement of amounts owed under the derivative contracts. The master netting agreements generally provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. The Company has not elected to offset the fair value positions of the derivative contracts recorded in the consolidated statements of financial position. The Company's derivative contracts do not contain any credit risk related contingent features and do not require collateral or other security to be furnished by the Company or the counterparties. The Company's exposure to credit risk associated with its derivative instruments is measured on an individual counterparty basis, as well as by groups of counterparties that share similar attributes. The Company does not anticipate any non-performance by any of its counterparties, and the concentration of risk with financial institutions does not present significant credit risk to the Company. The gross and net amounts of derivative assets and liabilities were as follows (in millions): Fair Value of Assets Fair Value of Liabilities December 31, September 30, December 31, September 30, 2019 2019 2019 2019 Gross amount recognized $ 106 $ 97 $ 2,611 $ 2,568 Gross amount eligible for offsetting (7 ) (11 ) (7 ) (11 ) Net amount $ 99 $ 86 $ 2,604 $ 2,557 Derivatives Impact on the Statements of Income and Statements of Comprehensive Income The following table presents the pre-tax gains (losses) recorded in other comprehensive income (loss) related to cash flow hedges for the three months ended December 31, 2019 and 2018 (in millions): Derivatives in ASC 815 Cash Flow Hedging Relationships Three Months Ended December 31, 2019 2018 Foreign currency exchange derivatives $ 9 $ — Commodity derivatives 1 (6 ) Total $ 10 $ (6 ) The following table presents the location and amount of the pre-tax gains (losses) on cash flow hedges reclassified from AOCI into the Company’s consolidated statements of income for the three months ended December 31, 2019 and 2018 (in millions): Derivatives in ASC 815 Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from AOCI into Income Three Months Ended December 31, 2019 2018 Foreign currency exchange derivatives Cost of sales $ 1 $ — Foreign currency exchange derivatives Income from discontinued operations — 1 Commodity derivatives Cost of sales (1 ) (2 ) Commodity derivatives Income from discontinued operations — (5 ) Total $ — $ (6 ) The following table presents the location and amount of pre-tax gains (losses) on derivatives not designated as hedging instruments recognized in the Company’s consolidated statements of income for the three months ended December 31, 2019 and 2018 (in millions): Amount of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments under ASC 815 Location of Gain (Loss) Recognized in Income on Derivative Three Months Ended December 31, 2019 2018 Foreign currency exchange derivatives Cost of sales $ — $ (4 ) Foreign currency exchange derivatives Net financing charges 59 (21 ) Foreign currency exchange derivatives Income from discontinued operations — 26 Equity swap Selling, general and administrative (4 ) (9 ) Total $ 55 $ (8 ) The pre-tax gains (losses) on net investment hedges recorded in CTA within other comprehensive income (loss) were $(58) million and $34 million for the three months ended December 31, 2019 and 2018 , respectively. For the three months ended December 31, 2019 and 2018 , no gains or losses were reclassified from CTA into income. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820, "Fair Value Measurement," defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows: Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Recurring Fair Value Measurements The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of December 31, 2019 and September 30, 2019 (in millions): Fair Value Measurements Using: Total as of December 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other current assets Foreign currency exchange derivatives $ 47 $ — $ 47 $ — Exchange traded funds (fixed income) 1 38 38 — — Commodity derivatives 1 — 1 — Other noncurrent assets Deferred compensation plan assets 75 75 — — Exchange traded funds (fixed income) 1 119 119 — — Exchange traded funds (equity) 1 125 125 — — Equity swap 58 — 58 — Total assets $ 463 $ 357 $ 106 $ — Other current liabilities Foreign currency exchange derivatives $ 9 $ — $ 9 $ — Total liabilities $ 9 $ — $ 9 $ — Fair Value Measurements Using: Total as of September 30, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other current assets Foreign currency exchange derivatives $ 35 $ — $ 35 $ — Exchange traded funds (fixed income) 1 19 19 — — Other noncurrent assets Deferred compensation plan assets 71 71 — — Exchange traded funds (fixed income) 1 138 138 — — Exchange traded funds (equity) 1 116 116 — — Equity swap 62 — 62 — Total assets $ 441 $ 344 $ 97 $ — Other current liabilities Foreign currency exchange derivatives $ 23 $ — $ 23 $ — Commodity derivatives 1 — 1 — Total liabilities $ 24 $ — $ 24 $ — 1 Classified as restricted investments for payment of asbestos liabilities. See Note 21, "Commitments and Contingencies," of the notes to consolidated financial statements for further details. Valuation Methods Foreign currency exchange derivatives : The foreign currency exchange derivatives are valued under a market approach using publicized spot and forward prices. Commodity derivatives : The commodity derivatives are valued under a market approach using publicized prices, where available, or dealer quotes. Equity swaps : The equity swaps are valued under a market approach as the fair value of the swaps is equal to the Company’s stock price at the reporting period date. Deferred compensation plan assets : Assets held in the deferred compensation plans will be used to pay benefits under certain of the Company's non-qualified deferred compensation plans. The investments primarily consist of mutual funds which are publicly traded on stock exchanges and are valued using a market approach based on the quoted market prices. During the three months ended December 31, 2019 and 2018, the Company recognized unrealized losses of $3 million and $9 million , respectively, in the consolidated statements of income on these investments that were still held as of December 31, 2019 and 2018, where they offset unrealized gains and losses on the related deferred compensation plan liability. Investments in marketable common stock and exchange traded funds : Investments in marketable common stock and exchange traded funds are valued using a market approach based on the quoted market prices, where available, or broker/dealer quotes of identical or comparable instruments. During the three months ended December 31, 2019 , the Company recognized unrealized gains of $10 million in the consolidated statements of income on these investments that were still held as of December 31, 2019 , all of which related to restricted investments. During the three months ended December 31, 2018, the Company recognized unrealized losses of $22 million in the consolidated statements of income on these investments that were still held as of December 31, 2018, of which $21 million related to restricted investments. Refer to Note 21, "Commitments and Contingencies," of the notes to consolidated financial statements for further information. The fair values of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. At both December 31, 2019 and September 30, 2019 , the fair value of long-term debt was $7.6 billion , including public debt of $7.4 billion , which was determined primarily using market quotes classified as Level 1 inputs within the ASC 820 fair value hierarchy and other long-term debt of $0.2 billion , which was determined based on quoted market prices for similar instruments classified as Level 2 inputs within the ASC 820 fair value hierarchy. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets (Notes) | 3 Months Ended |
Jun. 30, 2019 | |
Disclosure of Impairment of Long-Lived Assets [Abstract] | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including right-of-use assets under operating leases, other tangible assets and intangible assets with definitive lives, for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-15, "Impairment or Disposal of Long-Lived Assets," ASC 350-30, "General Intangibles Other than Goodwill" and ASC 985-20, "Costs of software to be sold, leased, or marketed." ASC 360-10-15 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset group is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. ASC 350-30 requires intangible assets acquired in a business combination that are used in research and development activities to be considered indefinite lived until the completion or abandonment of the associated research and development efforts. During the period that those assets are considered indefinite lived, they shall not be amortized but shall be tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. If the carrying amount of an intangible asset exceeds its fair value, an entity shall recognize an impairment loss in an amount equal to that excess. ASC 985-20 requires the unamortized capitalized costs of a computer software product be compared to the net realizable value of that product. The amount by which the unamortized capitalized costs of a computer software product exceed the net realizable value of that asset shall be written off. During the third quarter of fiscal 2019, the Company concluded it had a triggering event requiring assessment of impairment for certain of its long-lived assets in conjunction with the plans to dispose of a business within its Global Products segment that met the criteria to be classified as held for sale. Assets and liabilities held for sale are required to be recorded at the lower of carrying value or fair value less any costs to sell. The Company recorded an initial impairment charge of $235 million within restructuring and impairment costs in the consolidated statements of income in the third quarter of fiscal 2019 to write down the carrying value of the assets held for sale to fair value less any costs to sell. In the first quarter of fiscal 2020, the Company recorded an additional impairment charge of $15 million to further write down the carrying value of the assets held for sale to the current fair value less any costs to sell. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement." In the first quarter of fiscal 2020, the Company concluded it had a triggering event requiring assessment of impairment for certain of its long-lived assets in conjunction with its restructuring actions announced in fiscal 2020. As a result, the Company reviewed the long-lived assets for impairment and recorded $39 million of asset impairment charges within restructuring and impairment costs in the consolidated statements of income. Of the total impairment charges, $33 million related to the Global Products segment and $6 million related to the Building Solutions North America segment. Refer to Note 9, "Significant Restructuring and Impairment Costs," of the notes to consolidated financial statements for additional information. The impairments were measured under a market approach utilizing an appraisal to determine fair values of the impaired assets. This method is consistent with the methods the Company employed in prior periods to value other long-lived assets. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement." At December 31, 2019 and 2018 , the Company concluded it did not have any other triggering events requiring assessment of impairment of its long-lived assets. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Information | Segment Information four reportable segments for financial reporting purposes. • Building Solutions North America designs, sells, installs, and services HVAC and controls systems, integrated electronic security systems (including monitoring), and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional and governmental customers in North America. Building Solutions North America also provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, to non-residential building and industrial applications in the North American marketplace. • Building Solutions EMEA/LA designs, sells, installs, and services HVAC, controls, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and provides technical services to markets in Europe, the Middle East, Africa and Latin America. • Building Solutions Asia Pacific designs, sells, installs, and services HVAC, controls, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and provides technical services to the Asia Pacific marketplace. • Global Products designs and produces heating and air conditioning for residential and commercial applications, and markets products and refrigeration systems to replacement and new construction market customers globally. The Global Products business also designs, manufactures and sells fire protection and security products, including intrusion security, anti-theft devices, and access control and video management systems, for commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide. Global Products also includes the Johnson Controls-Hitachi joint venture. Management evaluates the performance of its business segments primarily on segment earnings before interest, taxes and amortization ("EBITA"), which represents income from continuing operations before income taxes and noncontrolling interests, excluding general corporate expenses, intangible asset amortization, net financing charges, restructuring and impairment costs, and the net mark-to-market adjustments related to pension and postretirement plans and restricted asbestos investments. Financial information relating to the Company’s reportable segments is as follows (in millions): Net Sales Three Months Ended December 31, 2019 2018 Building Solutions North America $ 2,167 $ 2,116 Building Solutions EMEA/LA 928 907 Building Solutions Asia Pacific 629 613 Global Products 1,852 1,828 Total net sales $ 5,576 $ 5,464 Segment EBITA Three Months Ended December 31, 2019 2018 Building Solutions North America $ 258 $ 250 Building Solutions EMEA/LA 90 77 Building Solutions Asia Pacific 72 66 Global Products 203 190 Total segment EBITA $ 623 $ 583 Corporate expenses $ (118 ) $ (136 ) Amortization of intangible assets (96 ) (97 ) Restructuring and impairment costs (111 ) — Net mark-to-market adjustments 10 (21 ) Net financing charges (52 ) (85 ) Income from continuing operations before income taxes $ 256 $ 244 |
Guarantees
Guarantees | 3 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Certain of the Company's subsidiaries at the business segment level have guaranteed the performance of third-parties and provided financial guarantees for uncompleted work and financial commitments. The terms of these guarantees vary with end dates ranging from the current fiscal year through the completion of such transactions and would typically be triggered in the event of nonperformance. Performance under the guarantees, if required, would not have a material effect on the Company's financial position, results of operations or cash flows. The Company offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement. A typical warranty program requires that the Company replace defective products within a specified time period from the date of sale. The Company records an estimate for future warranty-related costs based on actual historical return rates and other known factors. Based on analysis of return rates and other factors, the Company’s warranty provisions are adjusted as necessary. The Company monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be different than those estimates. The Company’s product warranty liability for continuing operations is recorded in the consolidated statements of financial position in deferred revenue or other current liabilities if the warranty is less than one year and in other noncurrent liabilities if the warranty extends longer than one year . The changes in the carrying amount of the Company’s total product warranty liability for continuing operations, including extended warranties for which deferred revenue is recorded, for the three months ended December 31, 2019 and 2018 were as follows (in millions): Three Months Ended December 31, 2019 2018 Balance at beginning of period $ 285 $ 315 Accruals for warranties issued during the period 23 29 Accruals from acquisition and divestitures 1 — Accruals related to pre-existing warranties (2 ) (5 ) Settlements made (in cash or in kind) during the period (21 ) (30 ) Currency translation 1 1 Balance at end of period $ 287 $ 310 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Matters The Company accrues for potential environmental liabilities when it is probable a liability has been incurred and the amount of the liability is reasonably estimable. As of December 31, 2019 , reserves for environmental liabilities for continuing operations totaled $151 million , of which $51 million was recorded within other current liabilities and $100 million was recorded within other noncurrent liabilities in the consolidated statements of financial position. Reserves for environmental liabilities for continuing operations totaled $159 million at September 30, 2019 , of which $52 million was recorded within other current liabilities and $107 million was recorded within other noncurrent liabilities in the consolidated statements of financial position. Tyco Fire Products L.P. (“Tyco Fire Products”), in coordination with the Wisconsin Department of Natural Resources ("WDNR"), has been conducting an environmental assessment of its Fire Technology Center ("FTC") located in Marinette, Wisconsin and surrounding areas in the City of Marinette and Town of Peshtigo, Wisconsin. In connection with the assessment, perfluorooctane sulfonate ("PFOS") and perfluorooctanoic acid ("PFOA") and/or other per- and poly fluorinated substances ("PFAS") have been detected at the FTC and in groundwater and surface water outside of the boundaries of the FTC. Tyco Fire Products continues to investigate the extent of potential migration of these compounds and is working with WDNR to address these issues insofar as they related to this migration. During the third quarter of 2019, the Company increased its environmental reserves which included $140 million related to remediation efforts to be undertaken to address contamination relating to fire-fighting foams containing PFAS compounds at or near the FTC, as well as the continued remediation of arsenic and other contaminants at the Tyco Fire Products Stanton Street manufacturing facility also located in Marinette, Wisconsin (the “Stanton Street Facility”). The Company is not able to estimate a possible loss or range of loss in excess of the established accruals at this time. A substantial portion of the increased reserves relates to remediation resulting from the use of fire-fighting foams containing PFAS at the FTC. The use of fire-fighting foams at the FTC was primarily for training and testing purposes in order to ensure that such products sold by the Company’s affiliates, Chemguard, Inc. ("Chemguard") and Tyco Fire Products, were effective at suppressing high intensity fires that may occur at military installations, airports or elsewhere. The reserve was recorded in the quarter ended June 30, 2019 following a comprehensive review by independent environmental consultants related to the presence of PFAS at or near the FTC, as well as remediation discussions with the WDNR. On June 21, 2019, the WDNR announced that it had received from the Wisconsin Department of Health Services (“WDHS”) a recommendation for groundwater quality standards as to, among other compounds, PFOA and PFOS. The WDHS recommended a groundwater enforcement standard for PFOA and PFOS of 20 parts per trillion. On August 22, 2019, the Governor of Wisconsin issued an executive order that, among other things, directed the WDNR to create a PFAS Coordinating Council and to work with other Wisconsin agencies (including WDHS) to establish final groundwater quality standards based on the WDHS’s prior recommendation. In July 2019, the Company received a letter from the WDNR directing the expansion of the evaluation of PFAS in the Marinette region to include (1) biosolids sludge produced by the City of Marinette Waste Water Treatment Plant and spread on certain fields in the area and (2) the Menominee and Peshtigo Rivers. Tyco Fire Products voluntarily responded to the WDNR’s letter to request additional necessary information. On October 16, 2019, the WDNR issued a “Notice of Noncompliance” to Tyco Fire Products and Johnson Controls, Inc. regarding the WDNR’s July 3, 2019 letter. The letter stated that “if you fail to take the actions required by Wis. Stat. § 292.11 to address this contamination, the DNR will move forward under Wis. Stat. § 292.31 to implement the SI workplan and evaluate further environmental enforcement actions and cost recovery under Wis. Stat. § 292.31(8).” The WDNR issued a further letter regarding the issue on November 4, 2019. Tyco Fire Products and Johnson Controls, Inc. believe that they have complied with all applicable environmental laws and regulations. The Company cannot predict what regulatory or enforcement actions, if any, might result from the WDNR’s actions, or the consequences of any such actions. Tyco Fire Products has been engaged in remediation activities at the Stanton Street Facility since 1990. Its corporate predecessor, Ansul Incorporated (“Ansul”) manufactured arsenic-based agricultural herbicides at the Stanton Street Facility, which resulted in significant arsenic contamination of soil and groundwater on the site and in parts of the adjoining Menominee River. In 2009, Ansul entered into an Administrative Consent Order (the "Consent Order") with the U.S. Environmental Protection Agency to address the presence of arsenic at the site. Under this agreement, Tyco Fire Products’ principal obligations are to contain the arsenic contamination on the site, pump and treat on-site groundwater, dredge, treat and properly dispose of contaminated sediments in the adjoining river areas, and monitor contamination levels on an ongoing basis. Activities completed under the Consent Order since 2009 include the installation of a subsurface barrier wall around the facility to contain contaminated groundwater, the installation of a groundwater extraction and treatment system and the dredging and offsite disposal of treated river sediment. The increase in the reserve related to the Stanton Street Facility was recorded following a further review of the Consent Order, which resulted in the identification of several structural upgrades needed to preserve the effectiveness of prior remediation efforts. Potential environmental liabilities accrued by the Company do not take into consideration possible recoveries of future insurance proceeds. They do, however, take into account the likely share other parties will bear at remediation sites. It is difficult to estimate the Company’s ultimate level of liability at many remediation sites due to the large number of other parties that may be involved, the complexity of determining the relative liability among those parties, the uncertainty as to the nature and scope of the investigations and remediation to be conducted, the uncertainty in the application of law and risk assessment, the various choices and costs associated with diverse technologies that may be used in corrective actions at the sites, and the often quite lengthy periods over which eventual remediation may occur. It is possible that technological, regulatory or enforcement developments, the results of additional environmental studies or other factors could change the Company's expectations with respect to future charges and cash outlays, and such changes could be material to the Company's future results of operations, financial condition or cash flows. Nevertheless, the Company does not currently believe that any claims, penalties or costs in addition to the amounts accrued will have a material adverse effect on the Company’s financial position, results of operations or cash flows. In addition, the Company has identified asset retirement obligations for environmental matters that are expected to be addressed at the retirement, disposal, removal or abandonment of existing owned facilities. At December 31, 2019 and September 30, 2019 , the Company recorded conditional asset retirement obligations for continuing operations of $31 million and $30 million , respectively. Asbestos Matters The Company and certain of its subsidiaries, along with numerous other third parties, are named as defendants in personal injury lawsuits based on alleged exposure to asbestos containing materials. These cases have typically involved product liability claims based primarily on allegations of manufacture, sale or distribution of industrial products that either contained asbestos or were used with asbestos containing components. As of December 31, 2019 , the Company's estimated asbestos related net liability recorded on a discounted basis within the Company's consolidated statements of financial position was $132 million . The net liability within the consolidated statements of financial position was comprised of a liability for pending and future claims and related defense costs of $502 million , of which $50 million was recorded in other current liabilities and $452 million was recorded in other noncurrent liabilities. The Company also maintained separate cash, investments and receivables related to insurance recoveries within the consolidated statements of financial position of $370 million , of which $42 million was recorded in other current assets, and $328 million was recorded in other noncurrent assets. Assets included $12 million of cash and $282 million of investments, which have all been designated as restricted. In connection with the recognition of liabilities for asbestos-related matters, the Company records asbestos-related insurance recoveries that are probable; the amount of such recoveries recorded at December 31, 2019 was $76 million . As of September 30, 2019 , the Company's estimated asbestos related net liability recorded on a discounted basis within the Company's consolidated statements of financial position was $141 million . The net liability within the consolidated statements of financial position was comprised of a liability for pending and future claims and related defense costs of $507 million , of which $50 million was recorded in other current liabilities and $457 million was recorded in other noncurrent liabilities. The Company also maintained separate cash, investments and receivables related to insurance recoveries within the consolidated statements of financial position of $366 million , of which $46 million was recorded in other current assets, and $320 million was recorded in other noncurrent assets. Assets included $16 million of cash and $273 million of investments, which have all been designated as restricted. In connection with the recognition of liabilities for asbestos-related matters, the Company records asbestos-related insurance recoveries that are probable; the amount of such recoveries recorded at September 30, 2019 was $77 million . The Company's estimate of the liability and corresponding insurance recovery for pending and future claims and defense costs is based on the Company's historical claim experience, and estimates of the number and resolution cost of potential future claims that may be filed and is discounted to present value from 2068 (which is the Company's reasonable best estimate of the actuarially determined time period through which asbestos-related claims will be filed against Company affiliates). Asbestos related defense costs are included in the asbestos liability. The Company's legal strategy for resolving claims also impacts these estimates. The Company considers various trends and developments in evaluating the period of time (the look-back period) over which historical claim and settlement experience is used to estimate and value claims reasonably projected to be made through 2068. At least annually, the Company assesses the sufficiency of its estimated liability for pending and future claims and defense costs by evaluating actual experience regarding claims filed, settled and dismissed, and amounts paid in settlements. In addition to claims and settlement experience, the Company considers additional quantitative and qualitative factors such as changes in legislation, the legal environment, and the Company's defense strategy. The Company also evaluates the recoverability of its insurance receivable on an annual basis. The Company evaluates all of these factors and determines whether a change in the estimate of its liability for pending and future claims and defense costs or insurance receivable is warranted. The amounts recorded by the Company for asbestos-related liabilities and insurance-related assets are based on the Company's strategies for resolving its asbestos claims, currently available information, and a number of estimates and assumptions. Key variables and assumptions include the number and type of new claims that are filed each year, the average cost of resolution of claims, the identity of defendants, the resolution of coverage issues with insurance carriers, amount of insurance, and the solvency risk with respect to the Company's insurance carriers. Many of these factors are closely linked, such that a change in one variable or assumption will impact one or more of the others, and no single variable or assumption predominately influences the determination of the Company's asbestos-related liabilities and insurance-related assets. Furthermore, predictions with respect to these variables are subject to greater uncertainty in the later portion of the projection period. Other factors that may affect the Company's liability and cash payments for asbestos-related matters include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, reforms of state or federal tort legislation and the applicability of insurance policies among subsidiaries. As a result, actual liabilities or insurance recoveries could be significantly higher or lower than those recorded if assumptions used in the Company's calculations vary significantly from actual results. Insurable Liabilities The Company records liabilities for its workers' compensation, product, general, and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated by utilizing actuarial valuations based upon historical claims experience. At December 31, 2019 and September 30, 2019 , the insurable liabilities totaled $378 million and $379 million , respectively, of which $101 million and $99 million was recorded within other current liabilities, $22 million and $22 million was recorded within accrued compensation and benefits, and $255 million and $258 million was recorded within other noncurrent liabilities in the consolidated statements of financial position, respectively. The Company records receivables from third party insurers when recovery has been determined to be probable. The amount of such receivables recorded at December 31, 2019 were $23 million , of which $5 million was recorded within other current assets and $18 million was recorded within other noncurrent assets, respectively. The amount of such receivables recorded at September 30, 2019 were $23 million , of which $5 million was recorded within other current assets and $18 million was recorded within other noncurrent assets, respectively. The Company maintains captive insurance companies to manage its insurable liabilities. Aqueous Film-Forming Foam ("AFFF") Litigation Two of our subsidiaries, Chemguard and Tyco Fire Products, have been named, along with other defendant manufacturers, in a number of class action and other lawsuits relating to the use of fire-fighting foam products by the U.S. Department of Defense (the "DOD") and others for fire suppression purposes and related training exercises. Plaintiffs generally allege that the firefighting foam products manufactured by defendants contain or break down into the chemicals PFOS and PFOA and/or other PFAS compounds and that the use of these products by others at various airbases, airports and other sites resulted in the release of these chemicals into the environment and ultimately into communities’ drinking water supplies neighboring those airports, airbases and other sites. PFOA, PFOS, and other PFAS compounds are being studied by the United States Environmental Protection Agency ("EPA") and other environmental and health agencies and researchers. The EPA has not issued binding regulatory limits, but has stated that it would propose regulatory standards for PFOS and PFOA in drinking water by the end of 2019, in accordance with its PFAS Action Plan released in February 2019, and issued interim recommendations for addressing PFOA and PFOS in groundwater in December 2019. While those studies continue, the EPA has issued a health advisory level for PFOA and PFOS in drinking water. Both PFOA and PFOS are types of synthetic chemical compounds that have been present in firefighting foam. However, both are also present in many existing consumer products. According to EPA, PFOA and PFOS have been used to make carpets, clothing, fabrics for furniture, paper packaging for food and other materials (e.g., cookware) that are resistant to water, grease or stains. Plaintiffs generally seek compensatory damages, including damages for alleged personal injuries, medical monitoring, diminution in property values, investigation and remediation costs, and natural resources damages, and also seek punitive damages and injunctive relief to address remediation of the alleged contamination. In September 2018, Tyco Fire Products and Chemguard filed a Petition for Multidistrict Litigation with the United States Judicial Panel on Multidistrict Litigation (“JPML”) seeking to consolidate all existing and future federal cases into one jurisdiction. On December 7, 2018, the JPML issued an order transferring various AFFF cases to a multi-district litigation (“MDL”) before the United States District Court for the District of South Carolina. Additional cases have been identified for transfer to the MDL. AFFF Putative Class Actions Chemguard and Tyco Fire Products are named in 24 putative class actions in federal and state courts in Colorado, Delaware, Florida, Massachusetts, New York, Pennsylvania, Washington New Hampshire, Guam, and Michigan. Each of these cases has been transferred to the MDL. The following putative class actions were filed since the beginning of fiscal year 2020: • Aguon et al. v. The 3M Company et al. , filed October 3, 2019, in the United States District Court, District of Guam. AFFF Individual or Mass Actions There are approximately 152 individual or “mass” actions pending in federal court in Colorado (41 cases), New York (4 cases), Pennsylvania (11 cases), New Mexico (2 cases) and South Carolina (94 cases) against Chemguard and Tyco Fire Products and other defendants in which the plaintiffs generally seek compensatory damages, including damages for alleged personal injuries, medical monitoring, and alleged diminution in property values. The cases involve approximately 7,000 plaintiffs in Colorado, approximately 126 plaintiffs in New York, 15 plaintiffs in Pennsylvania, two plaintiffs in New Mexico, and approximately 100 plaintiffs from various states who direct-filed complaints in South Carolina. These matters have been transferred to or directly-filed in the MDL. The Company is also on notice of approximately 660 other possible individual product liability claims by filings made in Pennsylvania state court, but complaints have not been filed in those matters in Pennsylvania. Some of the individuals who filed claims in Pennsylvania state court filed individual complaints in the MDL in South Carolina (and dismissed their claims in Pennsylvania state court), and the Company anticipates that the rest will soon be filed in the MDL. AFFF Municipal Cases Chemguard and Tyco Fire Products are also defendants in 37 cases in federal and state courts involving municipal or water provider plaintiffs in Alaska, Arizona, California, Colorado, Florida, Massachusetts, New Jersey, New York, Maryland, Ohio, Pennsylvania, and South Carolina. These municipal plaintiffs generally allege that the use of the defendants’ fire-fighting foam products at fire training academies, municipal airports, Air National Guard bases, or Navy or Air Force bases released PFOS and PFOA into public water supply wells, allegedly requiring remediation of public property. All of these cases but one have been transferred to the MDL. The following municipal actions were filed since the beginning of fiscal year 2020: • California Water Service Co. v. The 3M Company et al. , direct-filed on October 14, 2019 in the MDL pending in the United States District Court, District of South Carolina. • Town of Ayer v. The 3M Company et al. , direct-filed on November 4, 2019 in the MDL pending in the United States District Court, District of South Carolina. • Town of Maysville v. The 3M Company et al. , direct-filed on December 10, 2019 in the MDL pending in the United States District Court, District of South Carolina. • Town of Grantsville v. The 3M Company et al. , filed November 26, 2019, in the United States District Court, District of Maryland. • Town of Mountain Lake Park v. The 3M Company et al. , filed November 26, 2019, in the United States District Court, District of Maryland. • Sanford Airport Authority v. The 3M Company et al. , filed November 19, 2019, in circuit court in Seminole County, Florida, and removed to the United States District Court, Middle District of Florida. It has been tagged for transfer to the MDL pending in the United States District Court, District of South Carolina. • South Adams County Water & Sanitation District v. The 3M Company et al. , filed December 20, 2019, in the MDL pending in the United States District Court, District of South Carolina. • Town of Southampton v. The 3M Company et al. , filed December 17, 2019, in the MDL pending in the United States District Court, District of South Carolina. In May 2018, the Company was also notified by the Widefield Water and Sanitation District in Colorado Springs, Colorado that it may assert claims regarding its remediation costs in connection with PFOS and PFOA contamination allegedly resulting from the use of those products at the Peterson Air Force Base. State Attorneys General Litigation related to AFFF In June 2018, the State of New York filed a lawsuit in New York state court (State of New York v. The 3M Company et al., No. 904029-18 (N.Y. Sup. Ct., Albany County)) against a number of manufacturers, including affiliates of the Company, with respect to alleged PFOS and PFOA contamination purportedly resulting from firefighting foams used at locations across New York, including Stewart Air National Guard Base in Newburgh and Gabreski Air National Guard Base in Southampton, Plattsburgh Air Force Base in Plattsburgh, Griffiss Air Force Base in Rome, and unspecified “other” sites throughout the State. The lawsuit seeks to recover costs and natural resource damages associated with contamination at these sites. This suit has been removed to the United States District Court for the Northern District of New York and transferred to the MDL. In February 2019, the State of New York filed a second lawsuit in New York state court (State of New York v. The 3M Company et al., (N.Y. Sup. Ct., Albany County)), against a number of manufacturers, including affiliates of the Company, with respect to alleged PFOS and PFOA contamination purportedly resulting from firefighting foams used at additional locations across New York. This suit has been removed to the United States District Court for the Northern District of New York and transferred to the MDL. In July 2019, the State of New York filed a third lawsuit in New York state court ( State of New York v. The 3M Company et al. , (N.Y. Sup. Ct., Albany County)), against a number of manufacturers, including affiliates of the Company, with respect to alleged PFOS and PFOA contamination purportedly resulting from firefighting foams used at further additional locations across New York. This suit has been removed to the United States District Court for the Northern District of New York and transferred to the MDL. In November 2019, the State of New York filed a fourth lawsuit in New York state court ( State of New York v. The 3M Company et al. , (N.Y. Sup. Ct., Albany County)), against a number of manufacturers, including affiliates of the Company, with respect to alleged PFOS and PFOA contamination purportedly resulting from firefighting foams used at further additional locations across New York. This suit has been removed to federal court and transferred to the MDL. In January 2019, the State of Ohio filed a lawsuit in Ohio state court (State of Ohio v. The 3M Company et al., No. G-4801-CI-021804752 -000 (Court of Common Pleas of Lucas County, Ohio)) against a number of manufacturers, including affiliates of the Company, with respect to PFOS and PFOA contamination allegedly resulting from the use of firefighting foams at various specified and unspecified locations across Ohio. The lawsuit seeks to recover costs and natural resource damages associated with the contamination. This lawsuit has been removed to the United States District Court for the Northern District of Ohio and transferred to the MDL. In addition, in May and June 2019, three other states filed lawsuits in their respective state courts against a number of manufacturers, including affiliates of the Company, with respect to PFOS and PFOA contamination allegedly resulting from the use of firefighting foams at various specified and unspecified locations across their jurisdictions ( State of New Hampshire v. The 3M Company et al. ; State of Vermont v. The 3M Company et al .; State of New Jersey v. The 3M Company et al .). All three of these suits have been removed to federal court and transferred to the MDL. In September 2019, the government of Guam filed a lawsuit in the superior court of Guam against a number of manufacturers, including affiliates of the Company, with respect to PFOS and PFOA contamination allegedly resulting from the use of firefighting foams at various locations within its jurisdiction. This complaint has been removed to federal court and transferred to the MDL. In November 2019, the government of the Commonwealth of the Northern Mariana Islands filed a lawsuit in the superior court of the Northern Mariana Islands against a number of manufacturers, including affiliates of the Group, with respect to PFOS and PFOA contamination allegedly resulting from the use of firefighting foams at various locations within its jurisdiction. This complaint has been removed to federal court and tagged for transfer to the MDL. AFFF Matters Related to the Tyco Fire Products Fire Technology Center in Marinette, Wisconsin Tyco Fire Products and Chemguard are defendants in one lawsuit in Marinette County, Wisconsin alleging damages due to the historical use of AFFF products at Tyco’s Fire Technology Center in Marinette, Wisconsin. The putative class action, Joan & Richard Campbell for themselves and on behalf of other similarly situated v. Tyco Fire Products LP and Chemguard Inc., et al. (Marinette County Circuit Court, filed Dec. 17, 2018) alleges PFAS (including PFOA/PFOS) contaminated groundwater migrated off Tyco’s property and into residential drinking water wells causing both personal injuries and property damage to the plaintiffs; Tyco and Chemguard removed this case to the United States District Court for the Eastern District of Wisconsin and it has been transferred to the MDL. A second lawsuit, Duane and Janell Goldsmith individually and on behalf of H.G. and K.G v. Tyco Fire Products LP and Chemguard Inc., et al. (Marinette County Circuit Court, filed Dec. 17, 2018) was also filed by a family alleging personal injuries due to contaminated groundwater; this case has been dismissed without prejudice. The Company is vigorously defending the above AFFF matters and believes that it has meritorious defenses to class certification and the claims asserted. However, there are numerous factual and legal issues to be resolved in connection with these claims, and it is extremely difficult to predict the outcome or ultimate financial exposure, if any, represented by these matters, but there can be no assurance that any such exposure will not be material. The Company is also pursuing insurance coverage for these matters. Bosch Litigation On March 15, 2019, a German subsidiary of the Company received a complaint from Robert Bosch GmbH (“Bosch”), filed in a German court. The complaint relates to an automotive starter batteries joint venture in which the Company and Bosch were 80/20 parties to this joint venture. At the time the complaint was filed, JCI’s ownership interest in the joint venture was to be transferred to entities controlled by the Purchaser upon consummation of the previously announced sale of the Company’s Power Solutions business. The complaint alleged that certain internal Company reorganization transactions were not in compliance with the arrangements relating to such joint venture. The complaint sought a declaration that such internal reorganization transactions are void or, in the alternative, a declaration of damages that represent an alleged difference between (i) the value ascribed to the joint venture interests in connection with the Power Solutions sale and (ii) the value that was assigned to those interests in connection with such internal reorganization transactions. On August 8, 2019, Bosch entered into an agreement with Purchaser pursuant to which Purchaser would purchase Bosch’s interest in the joint venture. Simultaneously with this agreement, the Company and Bosch executed an agreement to dismiss the proceedings between the parties upon the completion of Purchaser’s acquisition of Bosch’s interest. In the first quarter of fiscal 2020, following the completion of Purchaser’s acquisition of Bosch’s interest in the joint venture, the Company and Bosch made filings with the German court terminating the litigation. Pursuant to the Company’s obligations to Purchaser in connection with the divestiture of the Company’s Power Solutions business, the Company reimbursed Purchaser a portion of its costs in connection with its acquisition of Bosch’s interests in the joint venture, which is reflected as a cash outflow for discontinued operations. Other Matters The Company is involved in various lawsuits, claims and proceedings incident to the operation of its businesses, including those pertaining to product liability, environmental, safety and health, intellectual property, employment, commercial and contractual matters, and various other casualty matters. Although the outcome of litigation cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to us, it is management’s opinion that none of these will have a material adverse effect on the Company’s financial position, results of operations or cash flows. Costs related to such matters were not material to the periods presented. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the ordinary course of business, the Company enters into transactions with related parties, such as equity affiliates. Such transactions consist of facility management services, the sale or purchase of goods and other arrangements. The net sales to and purchases from related parties included in the consolidated statements of income for continuing operations were $45 million and $12 million , respectively, for the three months ended December 31, 2019 ; and $43 million and $14 million , respectively, for the three months ended December 31, 2018 . The following table sets forth the amount of accounts receivable due from and payable to related parties in the consolidated statements of financial position for continuing operations (in millions): December 31, 2019 September 30, 2019 Receivable from related parties $ 29 $ 34 Payable to related parties 6 6 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Power Solutions | Discontinued Operations, Disposed of by Sale [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operations, Income Statement Disclosures [Table Text Block] | The following table summarizes the results of Power Solutions reclassified as discontinued operations for the three month period ended December 31, 2018 (in millions). Three Months Ended 2018 Net sales $ 2,427 Income from discontinued operations before income taxes 390 Provision for income taxes on discontinued operations (127 ) Income from discontinued operations attributable to noncontrolling interests, net of tax (15 ) Income from discontinued operations $ 248 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents the Company's revenues disaggregated by segment and by products and systems versus services revenue for the three months ended December 31, 2019 and 2018 (in millions): Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 Products & Systems Services Total Products & Systems Services Total Building Solutions North America $ 1,356 $ 811 $ 2,167 $ 1,321 $ 795 $ 2,116 Building Solutions EMEA/LA 457 471 928 417 490 907 Building Solutions Asia Pacific 371 258 629 356 257 613 Global Products 1,852 — 1,852 1,828 — 1,828 Total $ 4,036 $ 1,540 $ 5,576 $ 3,922 $ 1,542 $ 5,464 The following table presents further disaggregation of Global Products segment revenues by product type for the three months ended December 31, 2019 and 2018 (in millions): Three Months Ended 2019 2018 Building management systems $ 300 $ 281 HVAC & refrigeration equipment 1,285 1,285 Specialty products 267 262 Total $ 1,852 $ 1,828 |
Contract with Customer, Asset and Liability [Table Text Block] | The following table presents the location and amount of contract balances in the Company's consolidated statements of financial position (in millions): Location of contract balances December 31, 2019 September 30, 2019 Contract assets - current Accounts receivable - net $ 1,465 $ 1,389 Contract assets - noncurrent Other noncurrent assets 99 90 Contract liabilities - current Deferred revenue (1,495 ) (1,407 ) Contract liabilities - noncurrent Other noncurrent liabilities (119 ) (117 ) Total $ (50 ) $ (45 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table presents the Company’s lease costs for the three months ended December 31, 2019 (in millions): Three Months Ended 2019 Operating lease cost $ 99 Variable lease cost 40 Total lease costs $ 139 |
Supplemental Balance Sheet Information Leases [Table Text Block] | The following table presents supplemental consolidated statement of financial position information as of December 31, 2019 (in millions): Location of lease balances December 31, 2019 Operating lease right-of-use assets Other noncurrent assets $ 1,091 Operating lease liabilities - current Other current liabilities 322 Operating lease liabilities - noncurrent Other noncurrent liabilities 790 Weighted-average remaining lease term 6 years Weighted-average discount rate 2.3 % |
Supplemental Lease Cash Flow Information [Table Text Block] | The following table presents supplemental cash flow information related to operating leases for the three months ended December 31, 2019 (in millions): Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liability: Operating cash outflows from operating leases $ 97 Noncash operating lease activity: Right-of-use assets obtained in exchange for operating lease liabilities 74 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents maturities of operating lease liabilities as of December 31, 2019 (in millions): December 31, 2019 2020 (9 months) $ 264 2021 304 2022 217 2023 126 2024 85 After 2024 192 Total operating lease payments 1,188 Less interest (76 ) Present value of lease payments $ 1,112 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As previously disclosed in the Company's Annual Report on Form 10-K for the year ended September 30, 2019 and accounted for under the previous lease accounting guidance, future minimum operating lease payments for long-term noncancellable operating leases as of September 30, 2019 were as follows (in millions): September 30, 2019 2020 $ 352 2021 287 2022 200 2023 111 2024 71 After 2024 172 Total minimum lease payments $ 1,193 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): December 31, 2019 September 30, 2019 Raw materials and supplies $ 637 $ 588 Work-in-process 167 176 Finished goods 1,149 1,050 Inventories $ 1,953 $ 1,814 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill in each of the Company’s reportable segments for the three month period ended December 31, 2019 were as follows (in millions): Business Acquisitions Currency Translation and Other September 30, December 31, 2019 2019 Building Solutions North America $ 9,588 $ — $ 12 $ 9,600 Building Solutions EMEA/LA 1,849 12 67 1,928 Building Solutions Asia Pacific 1,194 — 36 1,230 Global Products 5,547 17 29 5,593 Total $ 18,178 $ 29 $ 144 $ 18,351 |
Other Intangible Assets | The Company’s other intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of (in millions): December 31, 2019 September 30, 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets Technology $ 1,328 $ (403 ) $ 925 $ 1,307 $ (370 ) $ 937 Customer relationships 2,754 (817 ) 1,937 2,722 (759 ) 1,963 Miscellaneous 585 (231 ) 354 584 (224 ) 360 Total amortized intangible assets 4,667 (1,451 ) 3,216 4,613 (1,353 ) 3,260 Unamortized intangible assets Trademarks/trade names 2,304 — 2,304 2,282 — 2,282 Miscellaneous 90 — 90 90 — 90 2,394 — 2,394 2,372 — 2,372 Total intangible assets $ 7,061 $ (1,451 ) $ 5,610 $ 6,985 $ (1,353 ) $ 5,632 |
Significant Restructuring Cos_2
Significant Restructuring Costs Change in Restructuring Reserve - 2020 Restructuring Plan (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
2020 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the changes in the Company’s 2020 Plan reserve, included within other current liabilities in the consolidated statements of financial position (in millions): Employee Severance and Termination Benefits Long-Lived Asset Impairments Other Total Original reserve $ 54 $ 54 $ 3 $ 111 Utilized—cash (8 ) — — (8 ) Utilized—noncash — (54 ) — (54 ) Balance at December 31, 2019 $ 46 $ — $ 3 $ 49 |
Significant Restructuring Cos_3
Significant Restructuring Costs Change in Restructuring Reserve - 2018 Restructuring Plan (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
2018 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the changes in the Company’s 2018 Plan reserve, included within other current liabilities in the consolidated statements of financial position (in millions): Employee Severance and Termination Benefits Long-Lived Asset Impairments Other Currency Total Original reserve $ 209 $ 42 $ 12 $ — $ 263 Utilized—cash (45 ) — (2 ) — (47 ) Utilized—noncash — (42 ) — — (42 ) Balance at September 30, 2018 $ 164 $ — $ 10 $ — $ 174 Utilized—cash (61 ) — (6 ) — (67 ) Utilized—noncash — — — (1 ) (1 ) Transfer to liabilities held for sale (4 ) — — — (4 ) Balance at September 30, 2019 $ 99 $ — $ 4 $ (1 ) $ 102 Utilized—cash (5 ) — — — (5 ) Utilized—noncash — — — 2 2 Adoption of ASC 842 1 — — (4 ) — (4 ) Balance at December 31, 2019 $ 94 $ — $ — $ 1 $ 95 |
Significant Restructuring Cos_4
Significant Restructuring Costs Changes in Restructuring Reserve - 2017 Restructuring Plan (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
2017 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the changes in the Company’s 2017 Plan reserve, included within other current liabilities in the consolidated statements of financial position (in millions): Employee Severance and Termination Benefits Long-Lived Asset Impairments Other Currency Total Original reserve $ 276 $ 77 $ 14 $ — $ 367 Utilized—cash (75 ) — — — (75 ) Utilized—noncash — (77 ) (1 ) — (78 ) Adjustment to restructuring reserves 25 — — — 25 Balance at September 30, 2017 $ 226 $ — $ 13 $ — $ 239 Utilized—cash (152 ) — (6 ) — (158 ) Utilized—noncash — — — (1 ) (1 ) Balance at September 30, 2018 $ 74 $ — $ 7 $ (1 ) $ 80 Utilized—cash (11 ) — (2 ) — (13 ) Utilized—noncash — — — (3 ) (3 ) Transfer to liabilities held for sale (3 ) — — — (3 ) Balance at September 30, 2019 $ 60 $ — $ 5 $ (4 ) $ 61 Utilized—cash (10 ) — — — (10 ) Adoption of ASC 842 1 — — (5 ) — (5 ) Balance at December 31, 2019 $ 50 $ — $ — $ (4 ) $ 46 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax Jurisdictions and Years Currently under Audit Exam | The Company is currently under exam in the following major jurisdictions for continuing operations: Tax Jurisdiction Tax Years Covered Belgium 2015 - 2018 China 2008 - 2016 Germany 2007 - 2016 Japan 2015 - 2018 Luxembourg 2016 United Kingdom 2012 - 2015 |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Components of Net Periodic Benefit Cost | The components of the Company’s net periodic benefit costs from continuing operations associated with its defined benefit pension and postretirement plans, which are primarily recorded in selling, general and administrative expenses in the consolidated statements of income, are shown in the tables below in accordance with ASC 715, "Compensation – Retirement Benefits" (in millions): U.S. Pension Plans Three Months Ended December 31, 2019 2018 Interest cost $ 18 $ 25 Expected return on plan assets (44 ) (46 ) Net periodic benefit credit $ (26 ) $ (21 ) Non-U.S. Pension Plans Three Months Ended December 31, 2019 2018 Service cost $ 6 $ 5 Interest cost 9 14 Expected return on plan assets (27 ) (27 ) Net periodic benefit credit $ (12 ) $ (8 ) Postretirement Benefits Three Months Ended December 31, 2019 2018 Interest cost $ 1 $ 2 Expected return on plan assets (2 ) (2 ) Amortization of prior service credit (1 ) — Net periodic benefit credit $ (2 ) $ — |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Components of Net Financing Charges | The Company's net financing charges line item in the consolidated statements of income for the three months ended December 31, 2019 and 2018 contained the following components (in millions): Three Months Ended December 31, 2019 2018 Interest expense, net of capitalized interest costs $ 62 $ 91 Banking fees and bond cost amortization 5 6 Interest income (13 ) (7 ) Net foreign exchange results for financing activities (2 ) (5 ) Net financing charges $ 52 $ 85 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Activity [Table Text Block] | A summary of the stock-based awards granted during the three month period s ended December 31, 2019 and 2018 is presented below: Three Months Ended December 31, 2019 2018 Number Granted Weighted Average Grant Date Fair Value Number Granted Weighted Average Grant Date Fair Value Stock options 1,302,729 $ 7.29 1,713,733 $ 5.56 Restricted stock/units 1,695,130 41.78 2,143,457 33.39 Performance shares 464,234 42.53 574,716 36.28 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended December 31, 2019 2018 Expected life of option (years) 6.5 6.4 Risk-free interest rate 1.67% 2.77% Expected volatility of the Company’s stock 22.4% 21.8% Expected dividend yield on the Company’s stock 2.49% 3.29% |
Schedule of share-based payment award, performance share, valuation assumptions [Table Text Block] | Three Months Ended December 31, 2019 2018 Risk-free interest rate 1.60% 2.76% Expected volatility of the Company’s stock 21.8% 22.9% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share (in millions): Three Months Ended December 31, 2019 2018 Income Available to Ordinary Shareholders Income from continuing operations $ 159 $ 107 Income from discontinued operations — 248 Basic and diluted income available to shareholders $ 159 $ 355 Weighted Average Shares Outstanding Basic weighted average shares outstanding 769.9 921.6 Effect of dilutive securities: Stock options, unvested restricted stock and unvested performance share awards 4.1 3.6 Diluted weighted average shares outstanding 774.0 925.2 Antidilutive Securities Options to purchase shares 0.2 2.7 |
Equity and Noncontrolling Int_2
Equity and Noncontrolling Interests (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity Attributable to Johnson Controls and Noncontrolling Interests | The following schedules present changes in consolidated equity attributable to Johnson Controls and noncontrolling interests (in millions, net of tax): Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 Equity Attributable to Johnson Controls International plc Equity Attributable to Noncontrolling Interests Total Equity Equity Attributable to Johnson Controls International plc Equity Attributable to Noncontrolling Interests Total Equity Beginning balance, September 30, $ 19,766 $ 1,063 $ 20,829 $ 21,164 $ 1,294 $ 22,458 Total comprehensive income: Net income 159 32 191 355 44 399 Foreign currency translation adjustments 251 10 261 (127 ) 9 (118 ) Realized and unrealized gains on derivatives 5 2 7 1 1 2 Pension and postretirement plans (1 ) — (1 ) — — — Other comprehensive income (loss) 255 12 267 (126 ) 10 (116 ) Comprehensive income 414 44 458 229 54 283 Other changes in equity: Cash dividends—ordinary shares (201 ) — (201 ) (240 ) — (240 ) Dividends attributable to noncontrolling interests — (5 ) (5 ) — (43 ) (43 ) Repurchases and retirements of ordinary shares (651 ) — (651 ) (467 ) — (467 ) Adoption of ASC 606 — — — (45 ) — (45 ) Adoption of ASU 2016-16 — — — (546 ) — (546 ) Adoption of ASC 842 (5 ) — (5 ) — — — Other, including options exercised 6 — 6 7 — 7 Ending balance, December 31, $ 19,329 $ 1,102 $ 20,431 $ 20,102 $ 1,305 $ 21,407 |
Changes in Redeemable Noncontrolling Interests | |
Changes in Accumulated Other Comprehensive Income, Net of Tax | The following schedules present changes in accumulated other comprehensive income ("AOCI") attributable to Johnson Controls (in millions, net of tax): Three Months Ended December 31, 2019 2018 Foreign currency translation adjustments ("CTA") Balance at beginning of period $ (785 ) $ (939 ) Aggregate adjustment for the period (net of tax effect of $0 and $0) 251 (127 ) Balance at end of period (534 ) (1,066 ) Realized and unrealized gains (losses) on derivatives Balance at beginning of period (2 ) (13 ) Current period changes in fair value (net of tax effect of $2 and $(2)) 5 (4 ) Reclassification to income (net of tax effect of $0 and $1) * — 5 Balance at end of period 3 (12 ) Realized and unrealized gains (losses) on marketable securities Balance at beginning of period — 8 Adoption of ASU 2016-01** — (8 ) Balance at end of period — — Pension and postretirement plans Balance at beginning of period (8 ) (2 ) Reclassification to income (net of tax effect of $0 and $0) (1 ) — Balance at end of period (9 ) (2 ) Accumulated other comprehensive loss, end of period $ (540 ) $ (1,080 ) * Refer to Note 16, "Derivative Instruments and Hedging Activities," of the notes to consolidated financial statements for disclosure of the line items in the consolidated statements of income affected by reclassifications from AOCI into income related to derivatives. ** During the quarter ended December 31, 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." As a result, the Company reclassified $8 million of unrealized gains on marketable securities to retained earnings as of October 1, 2018. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments [Line Items] | |
Outstanding Commodity Hedge Contracts | The Company had the following outstanding contracts to hedge forecasted commodity purchases (in metric tons): Volume Outstanding as of Commodity December 31, 2019 September 30, 2019 Copper 3,447 3,561 Aluminum 2,691 2,967 |
Location and Fair Values of Derivative Instruments and Hedging Activities | The following table presents the location and fair values of derivative instruments and hedging activities included in the Company’s consolidated statements of financial position (in millions): Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815 Derivatives and Hedging Activities Not Designated as Hedging Instruments under ASC 815 December 31, September 30, December 31, September 30, 2019 2019 2019 2019 Other current assets Foreign currency exchange derivatives $ 10 $ 16 $ 37 $ 19 Commodity derivatives 1 — — — Other noncurrent assets Equity swap — — 58 62 Total assets $ 11 $ 16 $ 95 $ 81 Other current liabilities Foreign currency exchange derivatives $ 8 $ 23 $ 1 $ — Commodity derivatives — 1 — — Long-term debt Foreign currency denominated debt 2,602 2,544 — — Total liabilities $ 2,610 $ 2,568 $ 1 $ — |
Offsetting Assets and Liabilities | The gross and net amounts of derivative assets and liabilities were as follows (in millions): Fair Value of Assets Fair Value of Liabilities December 31, September 30, December 31, September 30, 2019 2019 2019 2019 Gross amount recognized $ 106 $ 97 $ 2,611 $ 2,568 Gross amount eligible for offsetting (7 ) (11 ) (7 ) (11 ) Net amount $ 99 $ 86 $ 2,604 $ 2,557 |
Location and Amount of Gains and Losses Gross of Tax on Derivative Instruments and Related Hedge Items | The following table presents the pre-tax gains (losses) recorded in other comprehensive income (loss) related to cash flow hedges for the three months ended December 31, 2019 and 2018 (in millions): Derivatives in ASC 815 Cash Flow Hedging Relationships Three Months Ended December 31, 2019 2018 Foreign currency exchange derivatives $ 9 $ — Commodity derivatives 1 (6 ) Total $ 10 $ (6 ) The following table presents the location and amount of the pre-tax gains (losses) on cash flow hedges reclassified from AOCI into the Company’s consolidated statements of income for the three months ended December 31, 2019 and 2018 (in millions): Derivatives in ASC 815 Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from AOCI into Income Three Months Ended December 31, 2019 2018 Foreign currency exchange derivatives Cost of sales $ 1 $ — Foreign currency exchange derivatives Income from discontinued operations — 1 Commodity derivatives Cost of sales (1 ) (2 ) Commodity derivatives Income from discontinued operations — (5 ) Total $ — $ (6 ) The following table presents the location and amount of pre-tax gains (losses) on derivatives not designated as hedging instruments recognized in the Company’s consolidated statements of income for the three months ended December 31, 2019 and 2018 (in millions): Amount of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments under ASC 815 Location of Gain (Loss) Recognized in Income on Derivative Three Months Ended December 31, 2019 2018 Foreign currency exchange derivatives Cost of sales $ — $ (4 ) Foreign currency exchange derivatives Net financing charges 59 (21 ) Foreign currency exchange derivatives Income from discontinued operations — 26 Equity swap Selling, general and administrative (4 ) (9 ) Total $ 55 $ (8 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of December 31, 2019 and September 30, 2019 (in millions): Fair Value Measurements Using: Total as of December 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other current assets Foreign currency exchange derivatives $ 47 $ — $ 47 $ — Exchange traded funds (fixed income) 1 38 38 — — Commodity derivatives 1 — 1 — Other noncurrent assets Deferred compensation plan assets 75 75 — — Exchange traded funds (fixed income) 1 119 119 — — Exchange traded funds (equity) 1 125 125 — — Equity swap 58 — 58 — Total assets $ 463 $ 357 $ 106 $ — Other current liabilities Foreign currency exchange derivatives $ 9 $ — $ 9 $ — Total liabilities $ 9 $ — $ 9 $ — Fair Value Measurements Using: Total as of September 30, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other current assets Foreign currency exchange derivatives $ 35 $ — $ 35 $ — Exchange traded funds (fixed income) 1 19 19 — — Other noncurrent assets Deferred compensation plan assets 71 71 — — Exchange traded funds (fixed income) 1 138 138 — — Exchange traded funds (equity) 1 116 116 — — Equity swap 62 — 62 — Total assets $ 441 $ 344 $ 97 $ — Other current liabilities Foreign currency exchange derivatives $ 23 $ — $ 23 $ — Commodity derivatives 1 — 1 — Total liabilities $ 24 $ — $ 24 $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Financial Information Related to Company's Reportable Segments | Financial information relating to the Company’s reportable segments is as follows (in millions): Net Sales Three Months Ended December 31, 2019 2018 Building Solutions North America $ 2,167 $ 2,116 Building Solutions EMEA/LA 928 907 Building Solutions Asia Pacific 629 613 Global Products 1,852 1,828 Total net sales $ 5,576 $ 5,464 Segment EBITA Three Months Ended December 31, 2019 2018 Building Solutions North America $ 258 $ 250 Building Solutions EMEA/LA 90 77 Building Solutions Asia Pacific 72 66 Global Products 203 190 Total segment EBITA $ 623 $ 583 Corporate expenses $ (118 ) $ (136 ) Amortization of intangible assets (96 ) (97 ) Restructuring and impairment costs (111 ) — Net mark-to-market adjustments 10 (21 ) Net financing charges (52 ) (85 ) Income from continuing operations before income taxes $ 256 $ 244 |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Changes in Carrying Amount of Product Warranty Liability | The changes in the carrying amount of the Company’s total product warranty liability for continuing operations, including extended warranties for which deferred revenue is recorded, for the three months ended December 31, 2019 and 2018 were as follows (in millions): Three Months Ended December 31, 2019 2018 Balance at beginning of period $ 285 $ 315 Accruals for warranties issued during the period 23 29 Accruals from acquisition and divestitures 1 — Accruals related to pre-existing warranties (2 ) (5 ) Settlements made (in cash or in kind) during the period (21 ) (30 ) Currency translation 1 1 Balance at end of period $ 287 $ 310 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following table sets forth the amount of accounts receivable due from and payable to related parties in the consolidated statements of financial position for continuing operations (in millions): December 31, 2019 September 30, 2019 Receivable from related parties $ 29 $ 34 Payable to related parties 6 6 |
Financial Statements - Addition
Financial Statements - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Financial Statement Details [Line Items] | ||
Number of Countries in which Entity Operates | 150 | |
Interest percentage minimum for investments in partially-owned affiliates to be accounted for by the equity method | 20.00% | |
Restricted Cash and Cash Equivalents | $ 12 | $ 16 |
New Accounting Standards Recent
New Accounting Standards Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Oct. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 1,091 | |
Operating lease liability | $ 1,112 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 1,100 | |
Operating lease liability | $ 1,100 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Acquisitions And Discontinued Operations [Line Items] | |||
Purchase price, net of cash acquired | $ 54 | $ 13 | |
Cash paid for business acquisition | 48 | 13 | |
Goodwill, Acquired During Period | 29 | ||
Power Solutions | |||
Acquisitions And Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 13,200 | ||
Business Divestitures, Not Specific [Member] | |||
Acquisitions And Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | 6 | ||
Global Products | Individually Immaterial Acquisitions | |||
Acquisitions And Discontinued Operations [Line Items] | |||
Goodwill, Acquired During Period | 17 | $ 9 | |
Building Solutions EMEA/LA | Individually Immaterial Acquisitions | |||
Acquisitions And Discontinued Operations [Line Items] | |||
Goodwill, Acquired During Period | $ 12 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations, Income Statement Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income from discontinued operations attributable to noncontrolling interests | $ 0 | $ 15 | |
Income from discontinued operations | 0 | $ 248 | |
Ireland statutory income tax rate | 12.50% | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ 30 | $ 76 | |
Discontinued Operations, Disposed of by Sale [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 2,427 | ||
Income from discontinued operations before income taxes | 390 | ||
Provision for income taxes on discontinued operations | (127) | ||
Income from discontinued operations attributable to noncontrolling interests | (15) | ||
Income from discontinued operations | 248 | ||
Power Solutions | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 13,200 | ||
Separation costs | 28 | ||
Depreciation and Amortization, Discontinued Operations | $ 32 | ||
Disposal Group, Discontinued Operations, Consideration, net | $ 11,600 |
Discontinued Operations Disposa
Discontinued Operations Disposal Group - Assets Held For Sale (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 87 | $ 98 | |
Noncurrent assets held for sale | 46 | 60 | |
Liabilities held for sale | 44 | $ 44 | |
Global Products | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total Long-Lived Asset Held-for-Sale Impairment | 250 | ||
Impairment of Long-Lived Assets to be Disposed of | $ 15 | $ 235 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | $ 5,576,000,000 | $ 5,464,000,000 | |
Deferred revenue | (1,495,000,000) | $ (1,407,000,000) | |
Contract with Customer Asset Liability Net | (50,000,000) | (45,000,000) | |
Contract with Customer, Liability, Revenue Recognized | 686,000,000 | 712,000,000 | |
Revenue, Remaining Performance Obligation, Amount | $ 14,700,000,000 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | 60.00% | ||
Capitalized Contract Cost, Gross | $ 236,000,000 | 212,000,000 | |
Capitalized Contract Cost, Amortization | 26,000,000 | 35,000,000 | |
Capitalized Contract Cost, Impairment Loss | 0 | ||
Products and Systems [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 4,036,000,000 | 3,922,000,000 | |
Services [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 1,540,000,000 | 1,542,000,000 | |
Building Solutions North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 2,167,000,000 | 2,116,000,000 | |
Building Solutions North America | Products and Systems [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 1,356,000,000 | 1,321,000,000 | |
Building Solutions North America | Services [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 811,000,000 | 795,000,000 | |
Building Solutions EMEA/LA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 928,000,000 | 907,000,000 | |
Building Solutions EMEA/LA | Products and Systems [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 457,000,000 | 417,000,000 | |
Building Solutions EMEA/LA | Services [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 471,000,000 | 490,000,000 | |
Building Solutions Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 629,000,000 | 613,000,000 | |
Building Solutions Asia Pacific | Products and Systems [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 371,000,000 | 356,000,000 | |
Building Solutions Asia Pacific | Services [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 258,000,000 | 257,000,000 | |
Global Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 1,852,000,000 | 1,828,000,000 | |
Global Products | Global Products- Building Management Systems [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 300,000,000 | 281,000,000 | |
Global Products | Global Products- HVAC & Refrigeration Equipment [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 1,285,000,000 | 1,285,000,000 | |
Global Products | Global Products- Specialty Products [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 267,000,000 | 262,000,000 | |
Global Products | Products and Systems [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 1,852,000,000 | 1,828,000,000 | |
Global Products | Services [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Net | 0 | $ 0 | |
Other Current Assets | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized Contract Cost, Gross | 127,000,000 | 110,000,000 | |
Accounts Receivable [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract with Customer, Asset, Net, Current | 1,465,000,000 | 1,389,000,000 | |
Other Noncurrent Assets | |||
Disaggregation of Revenue [Line Items] | |||
Contract with Customer, Asset, Net, Noncurrent | 99,000,000 | 90,000,000 | |
Capitalized Contract Cost, Gross | 109,000,000 | 102,000,000 | |
Deferred Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | (1,495,000,000) | (1,407,000,000) | |
Other Noncurrent Liabilities [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract with Customer, Liability, Noncurrent | $ (119,000,000) | $ (117,000,000) |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 99 | |
Variable lease cost | 40 | |
Total lease costs | 139 | |
Operating lease right-of-use assets | 1,091 | |
Operating lease liabilities - current | 322 | |
Operating lease liabilities - noncurrent | $ 790 | |
Weighted-average remaining lease term | 6 years | |
Weighted-average discount rate | 2.30% | |
Operating cash outflows from operating leases | $ 97 | |
Right-of-use assets obtained in exchange for operating lease liabilities | 74 | |
2020 | 264 | $ 352 |
2021 | 304 | 287 |
2022 | 217 | 200 |
2023 | 126 | 111 |
2024 | 85 | 71 |
After 2024 | 192 | 172 |
Total operating lease payments | 1,188 | 1,193 |
Total minimum lease payments | 1,188 | $ 1,193 |
Less interest | (76) | |
Present value of lease payments | $ 1,112 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 637 | $ 588 |
Work-in-process | 167 | 176 |
Finished goods | 1,149 | 1,050 |
Inventories | $ 1,953 | $ 1,814 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 18,178 |
Business Acquisitions | 29 |
Currency Translation and Other | 144 |
Ending Balance | 18,351 |
Building Technologies & Solutions | Building Solutions North America | |
Goodwill [Roll Forward] | |
Beginning Balance | 9,588 |
Business Acquisitions | 0 |
Currency Translation and Other | 12 |
Ending Balance | 9,600 |
Building Technologies & Solutions | Building Solutions EMEA/LA | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,849 |
Business Acquisitions | 12 |
Currency Translation and Other | 67 |
Ending Balance | 1,928 |
Building Technologies & Solutions | Building Solutions Asia Pacific | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,194 |
Business Acquisitions | 0 |
Currency Translation and Other | 36 |
Ending Balance | 1,230 |
Building Technologies & Solutions | Global Products | |
Goodwill [Roll Forward] | |
Beginning Balance | 5,547 |
Business Acquisitions | 17 |
Currency Translation and Other | 29 |
Ending Balance | $ 5,593 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Building Solutions EMEA/LA | |
Goodwill [Line Items] | |
Accumulated goodwill impairment | $ 47 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Intangible Assets [Line Items] | ||
Gross carrying amount, total intangible assets | $ 7,061 | $ 6,985 |
Net, Total Intangible Assets | 5,610 | 5,632 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Gross Carrying Amount | 4,667 | 4,613 |
Accumulated Amortization | (1,451) | (1,353) |
Net, Total Amortized Intangible Assets | 3,216 | 3,260 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Carrying Amount, Gross and Net | 2,394 | 2,372 |
Patented Technology | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Gross Carrying Amount | 1,328 | 1,307 |
Accumulated Amortization | (403) | (370) |
Net, Total Amortized Intangible Assets | 925 | 937 |
Customer Relationships | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Gross Carrying Amount | 2,754 | 2,722 |
Accumulated Amortization | (817) | (759) |
Net, Total Amortized Intangible Assets | 1,937 | 1,963 |
Miscellaneous | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Gross Carrying Amount | 585 | 584 |
Accumulated Amortization | (231) | (224) |
Net, Total Amortized Intangible Assets | 354 | 360 |
Trademarks/trade names | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Carrying Amount, Gross and Net | 2,304 | 2,282 |
Miscellaneous | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Carrying Amount, Gross and Net | $ 90 | $ 90 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Other Intangible Assets Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 96 | $ 97 |
Future amortization expense, 2021 | 394 | |
Future amortization expense, 2022 | 390 | |
Future amortization expense, 2023 | 379 | |
Future amortization expense, 2024 | 368 | |
Future amortization expense, 2025 | $ 344 |
Significant Restructuring Cos_5
Significant Restructuring Costs Change in Restructuring Reserve - 2020 Restructuring Plan (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | $ 111 | $ 0 |
2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 111 | |
Payments for Restructuring | (8) | |
Restructuring Reserve, Settled without Cash | (54) | |
Restructuring Reserve | 49 | |
Employee Severance | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 54 | |
Payments for Restructuring | (8) | |
Restructuring Reserve, Settled without Cash | 0 | |
Restructuring Reserve | 46 | |
Fixed Asset Impairment | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 54 | |
Payments for Restructuring | 0 | |
Restructuring Reserve, Settled without Cash | (54) | |
Restructuring Reserve | 0 | |
Other Restructuring | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 3 | |
Payments for Restructuring | 0 | |
Restructuring Reserve, Settled without Cash | 0 | |
Restructuring Reserve | 3 | |
Global Products | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 87 | |
Building Solutions Asia Pacific | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 10 | |
Building Solutions EMEA/LA | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 6 | |
Building Solutions North America | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 8 | |
Continuing Operations | 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | $ 111 |
Significant Restructuring Cos_6
Significant Restructuring Costs Change in Restructuring Reserve - 2018 Restructuring Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | $ 111 | $ 0 | ||
2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | $ 263 | |||
Payments for Restructuring | (5) | $ (67) | (47) | |
Restructuring Reserve, Settled without Cash | 2 | (1) | (42) | |
Restructuring Reserve | 95 | 102 | 174 | |
Employee Severance | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 209 | |||
Payments for Restructuring | (5) | (61) | (45) | |
Restructuring Reserve, Settled without Cash | 0 | 0 | 0 | |
Restructuring Reserve | 94 | 99 | 164 | |
Fixed Asset Impairment | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 42 | |||
Payments for Restructuring | 0 | 0 | 0 | |
Restructuring Reserve, Settled without Cash | 0 | 0 | (42) | |
Restructuring Reserve | 0 | 0 | 0 | |
Other Restructuring | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 12 | |||
Payments for Restructuring | 0 | (6) | (2) | |
Restructuring Reserve, Settled without Cash | 0 | 0 | 0 | |
Restructuring Reserve | 0 | 4 | 10 | |
Currency Translation | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 0 | |||
Payments for Restructuring | 0 | 0 | 0 | |
Restructuring Reserve, Settled without Cash | (2) | (1) | 0 | |
Restructuring Reserve | 1 | (1) | 0 | |
Global Products | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 113 | |||
Building Solutions EMEA/LA | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 56 | |||
Corporate Segment | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 50 | |||
Building Solutions Asia Pacific | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 16 | |||
Building Solutions North America | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 20 | |||
Continuing Operations | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 255 | |||
Discontinued Operations | Power Solutions | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | $ 8 | |||
Transfer To Held for Sale [Member] | Power Solutions | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Settled without Cash | (4) | |||
Transfer To Held for Sale [Member] | Power Solutions | Employee Severance | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Settled without Cash | (4) | |||
Transfer To Held for Sale [Member] | Power Solutions | Fixed Asset Impairment | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Settled without Cash | 0 | |||
Transfer To Held for Sale [Member] | Power Solutions | Other Restructuring | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Settled without Cash | 0 | |||
Transfer To Held for Sale [Member] | Power Solutions | Currency Translation | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Settled without Cash | $ 0 | |||
Adoption of ASC 842 | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Adoption of ASC 842 | (4) | |||
Adoption of ASC 842 | Employee Severance | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Adoption of ASC 842 | 0 | |||
Adoption of ASC 842 | Fixed Asset Impairment | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Adoption of ASC 842 | 0 | |||
Adoption of ASC 842 | Other Restructuring | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Adoption of ASC 842 | (4) | |||
Adoption of ASC 842 | Currency Translation | 2018 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Adoption of ASC 842 | $ 0 |
Significant Restructuring Cos_7
Significant Restructuring Costs Change in Restructuring Reserve - 2017 Restructuring Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | $ 111 | $ 0 | |||
2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | $ 367 | ||||
Payments for Restructuring | (10) | $ (13) | $ (158) | (75) | |
Restructuring Reserve, Settled without Cash | (3) | (1) | (78) | ||
Adjustment to restructuring reserves | 25 | ||||
Restructuring Reserve | 46 | 61 | 80 | 239 | |
Employee Severance | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 276 | ||||
Payments for Restructuring | (10) | (11) | (152) | (75) | |
Restructuring Reserve, Settled without Cash | 0 | 0 | 0 | ||
Adjustment to restructuring reserves | 25 | ||||
Restructuring Reserve | 50 | 60 | 74 | 226 | |
Fixed Asset Impairment | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 77 | ||||
Payments for Restructuring | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Settled without Cash | 0 | 0 | (77) | ||
Adjustment to restructuring reserves | 0 | ||||
Restructuring Reserve | 0 | 0 | 0 | 0 | |
Other Restructuring | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 14 | ||||
Payments for Restructuring | 0 | (2) | (6) | 0 | |
Restructuring Reserve, Settled without Cash | 0 | 0 | (1) | ||
Adjustment to restructuring reserves | 0 | ||||
Restructuring Reserve | 0 | 5 | 7 | 13 | |
Currency Translation | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 0 | ||||
Payments for Restructuring | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Settled without Cash | (3) | (1) | 0 | ||
Adjustment to restructuring reserves | 0 | ||||
Restructuring Reserve | (4) | (4) | $ (1) | 0 | |
Corporate Segment | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 166 | ||||
Building Technologies & Solutions EMEA LA [Member] | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 74 | ||||
Building Solutions North America | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 59 | ||||
Building Solutions Asia Pacific | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 16 | ||||
Global Products | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 32 | ||||
Continuing Operations | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | 347 | ||||
Power Solutions | Transfer To Held for Sale [Member] | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Settled without Cash | (3) | ||||
Power Solutions | Transfer To Held for Sale [Member] | Employee Severance | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Settled without Cash | (3) | ||||
Power Solutions | Transfer To Held for Sale [Member] | Fixed Asset Impairment | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Settled without Cash | 0 | ||||
Power Solutions | Transfer To Held for Sale [Member] | Other Restructuring | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Settled without Cash | 0 | ||||
Power Solutions | Transfer To Held for Sale [Member] | Currency Translation | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Settled without Cash | $ 0 | ||||
Power Solutions | Discontinued Operations | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | $ 20 | ||||
Accounting Standards Update 2016-02 [Member] | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Translation and Other Adjustment | (5) | ||||
Accounting Standards Update 2016-02 [Member] | Employee Severance | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Translation and Other Adjustment | 0 | ||||
Accounting Standards Update 2016-02 [Member] | Fixed Asset Impairment | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Translation and Other Adjustment | 0 | ||||
Accounting Standards Update 2016-02 [Member] | Other Restructuring | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Translation and Other Adjustment | (5) | ||||
Accounting Standards Update 2016-02 [Member] | Currency Translation | 2017 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Translation and Other Adjustment | $ 0 |
Significant Restructuring Cos_8
Significant Restructuring Costs - Additional Information (Detail) $ in Millions | 3 Months Ended | 39 Months Ended | |
Dec. 31, 2019USD ($)EmployeesPlant | Dec. 31, 2018USD ($) | Dec. 31, 2019EmployeesPlant | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and impairment costs | $ | $ 111 | $ 0 | |
Number of employees to be severed | 11,200 | ||
Number of employees severed | 8,100 | 8,100 | |
Number of plants to be closed | Plant | 9 | ||
Plants closed | Plant | 8 | 8 | |
Building Technologies & Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of employees to be severed | 9,000 | ||
Number of plants to be closed | Plant | 9 | ||
Corporate Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of employees to be severed | 2,200 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Income Taxes, Additional Information [Line Items] | |||
Effective income tax rate | 25.00% | 44.00% | |
Ireland statutory income tax rate | 12.50% | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ 30 | $ 76 | |
Gross tax effected unrecognized tax benefits | $ 2,451 | ||
Amount of unrecognized tax benefits which may impact effective tax rate | 2,121 | ||
Total net accrued interest, net of tax benefit | $ 181 | ||
Income Tax Examination, Penalties and Interest Accrued | 20 | ||
Restructuring and impairment costs | 111 | $ 0 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Amount | (16) | ||
2020 Restructuring Plan | |||
Income Taxes, Additional Information [Line Items] | |||
Restructuring and impairment costs | 111 | ||
2020 Restructuring Plan | Continuing Operations | |||
Income Taxes, Additional Information [Line Items] | |||
Restructuring and impairment costs | 111 | ||
Global Products | 2020 Restructuring Plan | |||
Income Taxes, Additional Information [Line Items] | |||
Restructuring and impairment costs | $ 87 | ||
IRELAND | |||
Income Taxes, Additional Information [Line Items] | |||
Ireland statutory income tax rate | 12.50% | 12.50% |
Income Taxes - Tax Jurisdiction
Income Taxes - Tax Jurisdictions and Years Currently under Audit Exam (Details) | 3 Months Ended |
Dec. 31, 2019 | |
BELGIUM | |
Income Tax Examination [Line Items] | |
Tax years currently under audit exam | 2015 2016 2017 2018 |
CHINA | |
Income Tax Examination [Line Items] | |
Tax years currently under audit exam | 2008 2009 2010 2011 2012 2013 2014 2015 2016 |
Germany | |
Income Tax Examination [Line Items] | |
Tax years currently under audit exam | 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 |
JAPAN | |
Income Tax Examination [Line Items] | |
Tax years currently under audit exam | 2015 2016 2017 2018 |
LUXEMBOURG | |
Income Tax Examination [Line Items] | |
Tax years currently under audit exam | 2016 |
United Kingdom | |
Income Tax Examination [Line Items] | |
Tax years currently under audit exam | 2012 2013 2014 2015 |
Pension and Postretirement Pl_3
Pension and Postretirement Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1 | $ 2 |
Expected return on plan assets | (2) | (2) |
Amortization of prior service credit | (1) | 0 |
Net periodic benefit credit | (2) | 0 |
UNITED STATES | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 18 | 25 |
Expected return on plan assets | (44) | (46) |
Net periodic benefit credit | (26) | (21) |
Foreign Plan [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 6 | 5 |
Interest cost | 9 | 14 |
Expected return on plan assets | (27) | (27) |
Net periodic benefit credit | $ (12) | $ (8) |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Additional Information (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
$2.5 billion facility expiring Dec 2024 [Domain] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500 |
$500 million facility expiring Dec 2020 [Domain] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
$2 billion facility, terminated Dec 2019 [Domain] | |
Debt Instrument [Line Items] | |
Debt Instrument, Term | 5 years |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000 |
Combined $750 million of facilities terminated Dec 2019 [Domain] | |
Debt Instrument [Line Items] | |
Debt Instrument, Term | 364 days |
Line of Credit Facility, Maximum Borrowing Capacity | $ 750 |
Revolving Credit Facility [Member] | Floating rate term loan [Domain] | |
Debt Instrument [Line Items] | |
Debt Instrument, Term |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Components of Net Financing Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | ||
Interest expense, net of capitalized interest costs | $ 62 | $ 91 |
Banking fees and bond cost amortization | 5 | 6 |
Interest income | (13) | (7) |
Net foreign exchange results for financing activities | (2) | (5) |
Net financing charges | $ 52 | $ 85 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of option (years) | 6 years 6 months | 6 years 4 months 24 days |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options, number granted | 1,302,729 | 1,713,733 |
Stock options, weighted average grant date fair value | $ 7.29 | $ 5.56 |
Risk-free interest rate | 1.67% | 2.77% |
Expected volatility of the Company's stock | 22.40% | 21.80% |
Expected dividend yield on the Company's stock | 2.49% | 3.29% |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Stock options | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
Stock options | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted stock/units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Equity instruments other than options, number granted | 1,695,130 | 2,143,457 |
Equity instruments other than options, weighted average grant date fair value | $ 41.78 | $ 33.39 |
Performance shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Equity instruments other than options, number granted | 464,234 | 574,716 |
Equity instruments other than options, weighted average grant date fair value | $ 42.53 | $ 36.28 |
Risk-free interest rate | 1.60% | 2.76% |
Expected volatility of the Company's stock | 21.80% | 22.90% |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Income from continuing operations | $ 159 | $ 107 |
Loss from discontinued operations | 0 | 248 |
Basic and diluted income available to shareholders | $ 159 | $ 355 |
Weighted Average Shares Outstanding | ||
Basic weighted average shares outstanding | 769.9 | 921.6 |
Effect of dilutive securities: | ||
Stock options, unvested restricted stock and unvested performance share awards | 4.1 | 3.6 |
Diluted weighted average shares outstanding | 774 | 925.2 |
Antidilutive Securities | ||
Options to purchase shares | 0.2 | 2.7 |
Equity and Noncontrolling Int_3
Equity and Noncontrolling Interests - Equity Attributable to Johnson Controls and Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 19,766 | $ 21,164 |
Beginning balance | 1,063 | |
Beginning balance | 20,829 | |
Net income (loss) attributable to Johnson Controls | 159 | 355 |
Foreign currency translation adjustments | 251 | (127) |
Foreign currency translation adjustments | 261 | (118) |
Realized and unrealized gains on derivatives | 7 | 2 |
Pension and postretirement plans | (1) | 0 |
Other comprehensive income (loss) | 267 | (116) |
Comprehensive income attributable to Johnson Controls | 414 | 229 |
Comprehensive income attributable to noncontrolling interests | 44 | 54 |
Total comprehensive income | 458 | 283 |
Cash dividends - ordinary shares | (201) | (240) |
Stock Repurchased and Retired During Period, Value | (651) | |
Repurchases and retirements of ordinary shares | (467) | |
Other, including options exercised | 6 | 7 |
Ending balance | 19,329 | 20,102 |
Ending balance | 1,102 | |
Ending balance | 20,431 | |
Equity Attributable to Johnson Controls | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 19,766 | 21,164 |
Net income (loss) attributable to Johnson Controls | 159 | 355 |
Foreign currency translation adjustments | 251 | (127) |
Realized and unrealized gains on derivatives | 5 | 1 |
Pension and postretirement plans | (1) | 0 |
Other comprehensive income (loss) | 255 | (126) |
Comprehensive income attributable to Johnson Controls | 414 | 229 |
Cash dividends - ordinary shares | (201) | (240) |
Dividends attributable to noncontrolling interests | 0 | 0 |
Stock Repurchased and Retired During Period, Value | (651) | |
Repurchases and retirements of ordinary shares | (467) | |
Other, including options exercised | 6 | 7 |
Ending balance | 19,329 | 20,102 |
Equity Attributable to Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 1,063 | 1,294 |
Income attributable to noncontrolling interests | 32 | 44 |
Foreign currency translation adjustments | 10 | 9 |
Realized and unrealized gains on derivatives | 2 | 1 |
Pension and postretirement plans | 0 | 0 |
Other comprehensive income (loss) | 12 | 10 |
Comprehensive income attributable to noncontrolling interests | 44 | 54 |
Cash dividends - ordinary shares | 0 | 0 |
Dividends attributable to noncontrolling interests | (5) | (43) |
Stock Repurchased and Retired During Period, Value | 0 | |
Repurchases and retirements of ordinary shares | 0 | |
Other, including options exercised | 0 | 0 |
Ending balance | 1,102 | 1,305 |
Total Equity Excluding Redeemable Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 20,829 | 22,458 |
Net income | 191 | 399 |
Foreign currency translation adjustments | 261 | (118) |
Realized and unrealized gains on derivatives | 7 | 2 |
Pension and postretirement plans | (1) | 0 |
Other comprehensive income (loss) | 267 | (116) |
Total comprehensive income | 458 | 283 |
Cash dividends - ordinary shares | (201) | (240) |
Dividends attributable to noncontrolling interests | (5) | (43) |
Stock Repurchased and Retired During Period, Value | (651) | |
Repurchases and retirements of ordinary shares | (467) | |
Other, including options exercised | 6 | 7 |
Ending balance | 20,431 | 21,407 |
Adoption of ASC 606 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | (45) | |
Adoption of ASC 606 | Equity Attributable to Johnson Controls | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | (45) |
Adoption of ASC 606 | Equity Attributable to Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | 0 |
Adoption of ASC 606 | Total Equity Excluding Redeemable Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | (45) |
Adoption of ASU 2016-16 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | (546) | |
Adoption of ASU 2016-16 | Equity Attributable to Johnson Controls | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | (546) |
Adoption of ASU 2016-16 | Equity Attributable to Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | 0 |
Adoption of ASU 2016-16 | Total Equity Excluding Redeemable Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | (546) |
Adoption of ASC 842 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | (5) | |
Adoption of ASC 842 | Equity Attributable to Johnson Controls | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | (5) | 0 |
Adoption of ASC 842 | Equity Attributable to Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | 0 |
Adoption of ASC 842 | Total Equity Excluding Redeemable Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cumulative Effect on Retained Earnings, Net of Tax | $ (5) | $ 0 |
Equity and Noncontrolling Int_4
Equity and Noncontrolling Interests Equity and Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchased and Retired During Period, Value | $ 651 | |
Repurchases and retirements of ordinary shares | $ 467 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 3,900 | |
Parent | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchased and Retired During Period, Value | 651 | |
Repurchases and retirements of ordinary shares | 467 | |
Accounting Standards Update 2014-09 [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 45 | |
Accounting Standards Update 2014-09 [Member] | Parent | ||
Equity, Class of Treasury Stock [Line Items] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | 45 |
Accounting Standards Update 2016-16 [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Cumulative Effect on Retained Earnings, Net of Tax | 546 | |
Accounting Standards Update 2016-16 [Member] | Parent | ||
Equity, Class of Treasury Stock [Line Items] | ||
Cumulative Effect on Retained Earnings, Net of Tax | $ 0 | $ 546 |
Equity and Noncontrolling Int_5
Equity and Noncontrolling Interests - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | $ 3 | $ (12) | $ (2) | $ (13) | ||
Foreign currency translation adjustments | ||||||
Balance at beginning of period | (785) | (939) | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 251 | (127) | ||||
Balance at end of period | (534) | (1,066) | ||||
Realized and unrealized gains (losses) on derivatives | ||||||
Current period changes in fair value | 7 | 2 | ||||
Realized and unrealized gains (losses) on marketable securities | ||||||
Balance at beginning of period | 0 | 8 | ||||
Balance at end of period | 0 | 0 | ||||
Reclassification to income, tax effect | ||||||
Pension and postretirement plans | ||||||
Balance at beginning of period | (8) | (2) | ||||
Reclassification to income | (1) | 0 | ||||
Balance at end of period | (9) | (2) | ||||
Accumulated other comprehensive loss | (540) | (1,080) | $ (795) | |||
Foreign currency translation adjustments | ||||||
Foreign currency translation adjustments | ||||||
Aggregate adjustment for period, tax effect | 0 | 0 | ||||
Realized and unrealized gains (losses) on derivatives | ||||||
Realized and unrealized gains (losses) on derivatives | ||||||
Current period changes in fair value | 5 | (4) | ||||
Reclassification to income | [1] | 0 | 5 | |||
Current period changes in fair value, tax effect | 2 | (2) | ||||
Reclassifcation to income, tax effect | 0 | 1 | ||||
Pension and postretirement plans | ||||||
Pension and postretirement plans | ||||||
Reclassification to income, tax effect | 0 | 0 | ||||
Adoption of ASU 2016-01 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | [2] | 0 | |||
Other Comprehensive Income Loss ASU201601 Adoption Impact | [2] | 8 | ||||
Retained Earnings | Adoption of ASU 2016-01 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | 8 | |||||
AOCI Attributable to Parent [Member] | Adoption of ASU 2016-01 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | (8) | |||||
Power Solutions | Realized and unrealized gains (losses) on derivatives | ||||||
Realized and unrealized gains (losses) on derivatives | ||||||
Current period changes in fair value, tax effect | ||||||
[1] | * Refer to Note 16, "Derivative Instruments and Hedging Activities," of the notes to consolidated financial statements for disclosure of the line items in the consolidated statements of income affected by reclassifications from AOCI into income related to derivatives. | |||||
[2] | ** During the quarter ended December 31, 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." As a result, the Company reclassified $8 million of unrealized gains on marketable securities to retained earnings as of October 1, 2018. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Location and Fair Values of Derivative Instruments and Hedging Activities (Detail) € in Millions, shares in Millions, $ in Millions, ¥ in Billions | 3 Months Ended | |||
Dec. 31, 2019EUR (€) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019USD ($)TSwapshares | Sep. 30, 2019USD ($)Tshares | |
Derivative Instruments [Line Items] | ||||
Hedge Percentage For Foreign Exchange Transactional Exposures Minimum | 70.00% | 70.00% | ||
Hedge Percentage For Foreign Exchange Transactional Exposures Maximum | 90.00% | 90.00% | ||
Number of Interest Rate Derivatives Held | Swap | ||||
Derivative, amount of hedged ordinary shares | shares | 1.4 | 1.4 | ||
Derivative assets | $ 106 | $ 97 | ||
Derivative liabilities | $ 2,611 | $ 2,568 | ||
Copper [Member] | ||||
Derivative Instruments [Line Items] | ||||
Derivative, Nonmonetary Notional Amount | T | 3,447 | 3,561 | ||
Aluminum [Member] | ||||
Derivative Instruments [Line Items] | ||||
Derivative, Nonmonetary Notional Amount | T | 2,691 | 2,967 | ||
Equity swap | ||||
Derivative Instruments [Line Items] | ||||
Derivative, Amount of Hedged Item | $ 60 | $ 60 | ||
Foreign Currency Denominated Debt [Member] | ||||
Derivative Instruments [Line Items] | ||||
Notional amount | ¥ | ¥ 25 | |||
Other Current Liabilities | Commodity Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative liabilities | 1 | |||
Designated as Hedging Instrument | ||||
Derivative Instruments [Line Items] | ||||
Derivative assets | 11 | 16 | ||
Derivative liabilities | 2,610 | 2,568 | ||
Designated as Hedging Instrument | Other Current Assets | Foreign Currency Exchange Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative assets | 10 | 16 | ||
Designated as Hedging Instrument | Other Current Assets | Commodity Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative assets | 1 | 0 | ||
Designated as Hedging Instrument | Other Noncurrent Assets | Equity swap | ||||
Derivative Instruments [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Designated as Hedging Instrument | Other Current Liabilities | Foreign Currency Exchange Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative liabilities | 8 | 23 | ||
Designated as Hedging Instrument | Other Current Liabilities | Commodity Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative liabilities | 0 | 1 | ||
Designated as Hedging Instrument | Long-term Debt | Foreign Currency Denominated Debt [Member] | ||||
Derivative Instruments [Line Items] | ||||
Derivative liabilities | 2,602 | 2,544 | ||
Not Designated as Hedging Instrument | ||||
Derivative Instruments [Line Items] | ||||
Derivative assets | 95 | 81 | ||
Derivative liabilities | 1 | 0 | ||
Not Designated as Hedging Instrument | Other Current Assets | Foreign Currency Exchange Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative assets | 37 | 19 | ||
Not Designated as Hedging Instrument | Other Current Assets | Commodity Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Not Designated as Hedging Instrument | Other Noncurrent Assets | Equity swap | ||||
Derivative Instruments [Line Items] | ||||
Derivative assets | 58 | 62 | ||
Not Designated as Hedging Instrument | Other Current Liabilities | Foreign Currency Exchange Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative liabilities | 1 | 0 | ||
Not Designated as Hedging Instrument | Other Current Liabilities | Commodity Derivatives | ||||
Derivative Instruments [Line Items] | ||||
Derivative liabilities | 0 | 0 | ||
Not Designated as Hedging Instrument | Long-term Debt | Foreign Currency Denominated Debt [Member] | ||||
Derivative Instruments [Line Items] | ||||
Derivative liabilities | $ 0 | $ 0 | ||
One billion euro net investment hedge [Member] | Foreign Currency Denominated Debt [Member] | ||||
Derivative Instruments [Line Items] | ||||
Notional amount | € | € 888 | |||
423 million euro net investment hedge [Member] | Foreign Currency Denominated Debt [Member] | ||||
Derivative Instruments [Line Items] | ||||
Notional amount | € | 423 | |||
58 million euro net investment hedge [Member] | Foreign Currency Denominated Debt [Member] | ||||
Derivative Instruments [Line Items] | ||||
Notional amount | € | € 54 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Offsetting Derivative Assets and Liabilities [Abstract] | ||
Collateral Already Posted, Aggregate Fair Value | ||
Derivative assets | 106 | $ 97 |
Gross amount eligible for offsetting, derivative assets | (7) | (11) |
Net derivative amount, derivative assets | 99 | 86 |
Derivative liabilities | 2,611 | 2,568 |
Gross amount eligible for offsetting, derivative liabilities | (7) | (11) |
Net derivative amount, derivative liabilities | $ 2,604 | $ 2,557 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Location and Amount of Gains and Losses on Derivative Instruments and Related Hedge Items (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Gain (Loss) Recognized in Income, Derivative not Recognized as Hedge | $ 55 | $ (8) |
Foreign Currency Exchange Derivatives | Cost of Sales | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Gain (Loss) Recognized in Income, Derivative not Recognized as Hedge | 0 | (4) |
Foreign Currency Exchange Derivatives | Net Financing Charges | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Gain (Loss) Recognized in Income, Derivative not Recognized as Hedge | 59 | (21) |
Foreign Currency Exchange Derivatives | Discontinued Operations | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Gain (Loss) Recognized in Income, Derivative not Recognized as Hedge | 0 | 26 |
Equity swap | Selling, General And Administrative | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Gain (Loss) Recognized in Income, Derivative not Recognized as Hedge | (4) | (9) |
Net Investment Hedging [Member] | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (58) | 34 |
Cash Flow Hedging | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 10 | (6) |
Amount of Gain (Loss) Reclassified from AOCI into Income | 0 | (6) |
Cash Flow Hedging | Foreign Currency Exchange Derivatives | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 9 | 0 |
Cash Flow Hedging | Foreign Currency Exchange Derivatives | Cost of Sales | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income | 1 | 0 |
Cash Flow Hedging | Foreign Currency Exchange Derivatives | Discontinued Operations | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income | 0 | 1 |
Cash Flow Hedging | Commodity Derivatives | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 1 | (6) |
Cash Flow Hedging | Commodity Derivatives | Cost of Sales | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income | (1) | (2) |
Cash Flow Hedging | Commodity Derivatives | Discontinued Operations | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income | $ 0 | $ (5) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Additional Information (Detail) € in Millions, $ in Millions, ¥ in Billions | 3 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019JPY (¥) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | ||||
Gains (losses) reclassified from CTA to income for the Company's outstanding net investment hedges | $ | ||||
Foreign Currency Denominated Debt [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | ¥ | ¥ 25 | |||
58 million euro net investment hedge [Member] | Foreign Currency Denominated Debt [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | € 54 | |||
One billion euro net investment hedge [Member] | Foreign Currency Denominated Debt [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | 888 | |||
750 million euro net investment hedge [Member] | Foreign Currency Denominated Debt [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | 750 | |||
423 million euro net investment hedge [Member] | Foreign Currency Denominated Debt [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | € 423 | |||
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ | $ (58) | $ 34 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 106 | $ 97 | |
Derivative liabilities | 2,611 | 2,568 | |
Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 463 | 441 | |
Total liabilities | 9 | 24 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 357 | 344 | |
Total liabilities | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 106 | 97 | |
Total liabilities | 9 | 24 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 0 | 0 | |
Total liabilities | 0 | 0 | |
Other Current Assets | Fair Value, Recurring [Member] | Exchange Traded Funds in Fixed Income securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 38 | 19 |
Other Current Assets | Fair Value, Recurring [Member] | Exchange Traded Funds in Fixed Income securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 38 | 19 |
Other Current Assets | Fair Value, Recurring [Member] | Exchange Traded Funds in Fixed Income securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 0 | 0 |
Other Current Assets | Fair Value, Recurring [Member] | Exchange Traded Funds in Fixed Income securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 0 | 0 |
Other Current Assets | Fair Value, Recurring [Member] | Foreign Currency Exchange Derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 47 | 35 | |
Other Current Assets | Fair Value, Recurring [Member] | Foreign Currency Exchange Derivatives | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Other Current Assets | Fair Value, Recurring [Member] | Foreign Currency Exchange Derivatives | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 47 | 35 | |
Other Current Assets | Fair Value, Recurring [Member] | Foreign Currency Exchange Derivatives | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Assets Held for Sale, Current [Member] | Fair Value, Recurring [Member] | Commodity Derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 1 | ||
Assets Held for Sale, Current [Member] | Fair Value, Recurring [Member] | Commodity Derivatives | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Assets Held for Sale, Current [Member] | Fair Value, Recurring [Member] | Commodity Derivatives | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 1 | ||
Assets Held for Sale, Current [Member] | Fair Value, Recurring [Member] | Commodity Derivatives | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Other Noncurrent Assets | Fair Value, Recurring [Member] | Deferred compensation plan assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | 75 | 71 | |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Deferred compensation plan assets [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | 75 | 71 | |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Deferred compensation plan assets [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | 0 | 0 | |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Deferred compensation plan assets [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | 0 | 0 | |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Exchange Traded Funds in Fixed Income securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 119 | 138 |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Exchange Traded Funds in Fixed Income securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 119 | 138 |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Exchange Traded Funds in Fixed Income securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 0 | 0 |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Exchange Traded Funds in Fixed Income securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 0 | 0 |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Exchange traded funds in equity securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 125 | 116 |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Exchange traded funds in equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 125 | 116 |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Exchange traded funds in equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 0 | 0 |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Exchange traded funds in equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | [1] | 0 | 0 |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Equity swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 58 | 62 | |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Equity swap | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Equity swap | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 58 | 62 | |
Other Noncurrent Assets | Fair Value, Recurring [Member] | Equity swap | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Other Current Liabilities | Commodity Derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 1 | ||
Other Current Liabilities | Commodity Derivatives | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 0 | ||
Other Current Liabilities | Commodity Derivatives | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 1 | ||
Other Current Liabilities | Commodity Derivatives | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 0 | ||
Other Current Liabilities | Fair Value, Recurring [Member] | Foreign Currency Exchange Derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 9 | 23 | |
Other Current Liabilities | Fair Value, Recurring [Member] | Foreign Currency Exchange Derivatives | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 0 | 0 | |
Other Current Liabilities | Fair Value, Recurring [Member] | Foreign Currency Exchange Derivatives | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 9 | 23 | |
Other Current Liabilities | Fair Value, Recurring [Member] | Foreign Currency Exchange Derivatives | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | $ 0 | $ 0 | |
[1] | 1 Classified as restricted investments for payment of asbestos liabilities. See Note 21, "Commitments and Contingencies," of the notes to consolidated financial statements for further details. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Derivative [Line Items] | |||
Derivative liabilities | $ 2,611 | $ 2,568 | |
Derivative assets | 106 | 97 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) Restricted | 10 | $ (21) | |
Fair value of long term debt | 7,600 | 7,600 | |
Fair Value, Inputs, Level 1 [Member] | |||
Derivative [Line Items] | |||
Fair value of long term debt | 7,400 | 7,400 | |
Fair Value, Inputs, Level 2 [Member] | |||
Derivative [Line Items] | |||
Fair value of long term debt | 200 | $ 200 | |
Marketable Securities [Member] | |||
Derivative [Line Items] | |||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 10 | (22) | |
Marketable Securities [Member] | Restricted investments | |||
Derivative [Line Items] | |||
Equity Securities, FV-NI, Unrealized Gain (Loss) | (21) | ||
Deferred compensation plan assets [Member] | |||
Derivative [Line Items] | |||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ (3) | $ (9) |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Impairment of Long Lived Assets [Line Items] | |||
Asset Impairment Charges | $ 54 | $ 0 | |
Impairment of Long-Lived Assets Held-for-use | 39 | ||
Global Products | |||
Impairment of Long Lived Assets [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 15 | $ 235 | |
Impairment of Long-Lived Assets Held-for-use | 33 | ||
Building Solutions North America | |||
Impairment of Long Lived Assets [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 6 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Segment Information - Financial
Segment Information - Financial Information Related to Company's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 5,576 | $ 5,464 |
Segment EBITA | 623 | 583 |
Corporate expenses | (118) | (136) |
Amortization of intangible assets | (96) | (97) |
Restructuring and impairment costs | (111) | 0 |
Equity Securities, FV-NI, Unrealized Gain (Loss) Restricted | 10 | (21) |
Net financing charges | (52) | (85) |
Income from continuing operations before income taxes | 256 | 244 |
Building Solutions North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,167 | 2,116 |
Building Solutions EMEA/LA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 928 | 907 |
Building Solutions Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 629 | 613 |
Global Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,852 | 1,828 |
Building Technologies & Solutions | Building Solutions North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,167 | 2,116 |
Segment EBITA | 258 | 250 |
Building Technologies & Solutions | Building Solutions EMEA/LA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 928 | 907 |
Segment EBITA | 90 | 77 |
Building Technologies & Solutions | Building Solutions Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 629 | 613 |
Segment EBITA | 72 | 66 |
Building Technologies & Solutions | Global Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,852 | 1,828 |
Segment EBITA | $ 203 | $ 190 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | |
Maximum length, in years, of a product warranty for it to be recorded in other current liabilities | 1 year |
Minimum length, in years, of a product warranty for it to be recorded in other noncurrent liabilities | 1 year |
Product Warranties - Changes in
Product Warranties - Changes in Carrying Amount of Product Warranty liability (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 285 | $ 315 |
Accruals for warranties issued during the period | 23 | 29 |
Accruals from acquisition and divestitures | 1 | 0 |
Accruals related to pre-existing warranties | (2) | (5) |
Settlements made (in cash or in kind) during the period | (21) | (30) |
Currency translation | 1 | 1 |
Balance at end of period | $ 287 | $ 310 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | |
Loss Contingencies [Line Items] | |||
Estimated asbestos related net liability on a discounted basis | $ 132 | $ 141 | |
Reserves for environmental liabilities | 151 | 159 | |
Conditional asset retirement obligations | 31 | 30 | |
Accrued Environmental Loss Contingencies, Current | 51 | 52 | |
Accrued Environmental Loss Contingencies, Noncurrent | 100 | 107 | |
Liability for Asbestos and Environmental Claims, Gross | 502 | 507 | |
Restricted Cash and Investments | 370 | 366 | |
Restricted Cash and Cash Equivalents | 12 | 16 | |
Insurance Recoveries | 76 | 77 | |
Insurable liabilities | 378 | 379 | |
Insurance Settlements Receivable, Current | 5 | 5 | |
Insurance Settlements Receivable | 23 | 23 | |
Insurance Settlements Receivable, Noncurrent | 18 | 18 | |
Asbestos Issue [Member] | |||
Loss Contingencies [Line Items] | |||
Restricted Cash and Cash Equivalents | 12 | 16 | |
Restricted Investments | 282 | 273 | |
Accrued Compensation and Benefits [Member] | |||
Loss Contingencies [Line Items] | |||
Insurable liabilities | 22 | 22 | |
Other Current Assets | |||
Loss Contingencies [Line Items] | |||
Restricted Cash and Investments | 42 | 46 | |
Other Noncurrent Assets | |||
Loss Contingencies [Line Items] | |||
Restricted Cash and Investments | 328 | 320 | |
Other Noncurrent Liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Liability for Asbestos and Environmental Claims, Gross | 452 | 457 | |
Insurable liabilities | 255 | 258 | |
Other Current Liabilities | |||
Loss Contingencies [Line Items] | |||
Liability for Asbestos and Environmental Claims, Gross | 50 | 50 | |
Insurable liabilities | $ 101 | $ 99 | |
Stanton Street Facility, Marinette, WI [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental Remediation Expense | $ 140 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | |||
Receivable from related parties | $ 29 | $ 34 | |
Payable to related parties | 6 | $ 6 | |
Revenue from related parties | 45 | $ 43 | |
Purchases from related parties | $ 12 | $ 14 |