Date of Report (Date of Earliest Event Reported): | May 1, 2019 (April 30, 2019) |
Ireland | 001-13836 | 98-0390500 | ||
(State or Other Jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||
One Albert Quay | ||
Cork, Ireland | ||
(Address of Principal Executive Offices) | ||
Registrant's Telephone Number, including Area Code: 353-21-423-5000 | ||
Not Applicable | ||
(Former name or former address, if changed since last report) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
Ordinary Shares, Par Value $0.01 | JCI | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). | |||||
Emerging growth company | ¨ | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ |
99.1 | Press release issued by Johnson Controls International plc, dated May 1, 2019, relating to the Company's results of operations. |
99.2 | Press release issued by Johnson Controls International plc, dated May 1, 2019, relating to the Debt Tender Offers. |
99.3 | Unaudited pro forma consolidated financial statements of Johnson Controls International plc. |
May 1, 2019 | By: | /s/ Michael R. Peterson | |||
Name: | Michael R. Peterson | ||||
Title: | Vice President and Corporate Secretary |
Exhibit No. | Description |
99.1 | |
99.2 | |
99.3 |
CONTACT: | Investors: Antonella Franzen (609) 720-4665 Ryan Edelman (609) 720-4545 Media: Fraser Engerman (414) 524-2733 | Exhibit 99.1 |
▪ | GAAP EPS from continuing operations of $0.26 per share, including special items |
▪ | Adjusted EPS from continuing operations of $0.32, up 23% versus prior year |
▪ | Sales of $5.8 billion, up 3%, reflecting organic growth of 6%; Field up 3% with organic growth of 6%; Products up 2% with organic growth of 7% |
▪ | Field orders up 2% organically versus prior year; Backlog up 6% organically versus prior year |
▪ | Repurchased approximately 16 million shares in the quarter for $533 million |
▪ | Closed sale of Power Solutions business with net cash proceeds of approximately $11.6 billion |
▪ | Increased fiscal 2019 adjusted EPS from continuing operations guidance to $1.85 to $1.95, representing a year-over-year increase of 16% to 23% |
GAAP | GAAP | Adjusted | Adjusted | |||||||
Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Change | ||||||
Sales | $5,630 | $5,779 | $5,630 | $5,779 | +3% | |||||
Segment EBITA | 615 | 664 | 630 | 671 | +7% | |||||
EBIT | 361 | 419 | 425 | 469 | +10% | |||||
Net income from continuing operations | 184 | 240 | 246 | 287 | +17% | |||||
Diluted EPS from continuing operations | $0.20 | $0.26 | $0.26 | $0.32 | +23% |
GAAP | GAAP | Adjusted | Adjusted | |||||||
Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Change | ||||||
Sales | $2,097 | $2,187 | $2,097 | $2,187 | 4% | |||||
Segment EBITA | $239 | $257 | $244 | $259 | 6% | |||||
Segment EBITA margin % | 11.4% | 11.8% | 11.6% | 11.8% | 20bps |
GAAP | GAAP | Adjusted | Adjusted | |||||||
Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Change | ||||||
Sales | $907 | $878 | $907 | $878 | (3%) | |||||
Segment EBITA | $77 | $80 | $78 | $81 | 4% | |||||
Segment EBITA margin % | 8.5% | 9.1% | 8.6% | 9.2% | 60bps |
GAAP | GAAP | Adjusted | Adjusted | |||||||
Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Change | ||||||
Sales | $586 | $628 | $586 | $628 | 7% | |||||
Segment EBITA | $71 | $76 | $71 | $76 | 7% | |||||
Segment EBITA margin % | 12.1% | 12.1% | 12.1% | 12.1% | Flat |
GAAP | GAAP | Adjusted | Adjusted | |||||||
Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Change | ||||||
Sales | $2,040 | $2,086 | $2,040 | $2,086 | 2% | |||||
Segment EBITA | $228 | $251 | $237 | $255 | 8% | |||||
Segment EBITA margin % | 11.2% | 12.0% | 11.6% | 12.2% | 60bps |
GAAP | GAAP | Adjusted | Adjusted | |||||||
Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Change | ||||||
Corporate expense | ($162) | ($167) | ($113) | ($104) | (8%) |
• | For the quarter, cash provided by operating activities from continuing operations was $0.2 billion and capital expenditures were $0.1 billion, resulting in free cash flow from continuing operations of $0.1 billion. Adjusted free cash flow was $0.2 billion, which excludes net cash outflows of $0.1 billion primarily related to integration costs. |
• | Year-to-date, cash provided by operating activities from continuing operations was $0.1 billion and capital expenditures were $0.3 billion, resulting in a free cash outflow from continuing operations of $0.2 billion. Adjusted free cash flow was neutral, which excludes net cash outflows of $0.2 billion primarily related to restructuring and integration costs. |
• | During the quarter, the Company repurchased approximately 16 million shares for $533 million. Year-to-date, the Company repurchased approximately 30 million shares for $1 billion. |
▪ | The Company is increasing its outlook for fiscal 2019 adjusted EPS before special items from continuing operations to a range of $1.85 to $1.95, representing a year-over-year increase of 16% to 23%. The updated outlook reflects the incremental use of Power Solutions sale proceeds, which are now expected to result in an approximate $0.15 benefit versus a $0.05 benefit previously expected. |
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data; unaudited) | |||||||||
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Net sales | $ | 5,779 | $ | 5,630 | |||||
Cost of sales | 3,935 | 3,806 | |||||||
Gross profit | 1,844 | 1,824 | |||||||
Selling, general and administrative expenses | (1,458 | ) | (1,490 | ) | |||||
Net financing charges | (98 | ) | (107 | ) | |||||
Equity income | 33 | 27 | |||||||
Income from continuing operations before income taxes | 321 | 254 | |||||||
Income tax provision | 47 | 36 | |||||||
Income from continuing operations | 274 | 218 | |||||||
Income from discontinued operations, net of tax | 284 | 265 | |||||||
Net income | 558 | 483 | |||||||
Less: Income from continuing operations attributable to noncontrolling interests | 34 | 34 | |||||||
Less: Income from discontinued operations attributable to noncontrolling interests | 9 | 11 | |||||||
Net income attributable to JCI | $ | 515 | $ | 438 | |||||
Income from continuing operations | $ | 240 | $ | 184 | |||||
Income from discontinued operations | 275 | 254 | |||||||
Net income attributable to JCI | $ | 515 | $ | 438 | |||||
Diluted earnings per share from continuing operations | $ | 0.26 | $ | 0.20 | |||||
Diluted earnings per share from discontinued operations | 0.30 | 0.27 | |||||||
Diluted earnings per share * | $ | 0.57 | $ | 0.47 | |||||
Diluted weighted average shares | 905.9 | 932.5 | |||||||
Shares outstanding at period end | 898.1 | 926.2 |
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data; unaudited) | |||||||||
Six Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Net sales | $ | 11,243 | $ | 10,935 | |||||
Cost of sales | 7,674 | 7,413 | |||||||
Gross profit | 3,569 | 3,522 | |||||||
Selling, general and administrative expenses | (2,896 | ) | (2,809 | ) | |||||
Restructuring and impairment costs | — | (154 | ) | ||||||
Net financing charges | (183 | ) | (209 | ) | |||||
Equity income | 75 | 74 | |||||||
Income from continuing operations before income taxes | 565 | 424 | |||||||
Income tax provision | 155 | 253 | |||||||
Income from continuing operations | 410 | 171 | |||||||
Income from discontinued operations, net of tax | 547 | 583 | |||||||
Net income | 957 | 754 | |||||||
Less: Income from continuing operations attributable to noncontrolling interests | 63 | 62 | |||||||
Less: Income from discontinued operations attributable to noncontrolling interests | 24 | 24 | |||||||
Net income attributable to JCI | $ | 870 | $ | 668 | |||||
Income from continuing operations | $ | 347 | $ | 109 | |||||
Income from discontinued operations | 523 | 559 | |||||||
Net income attributable to JCI | $ | 870 | $ | 668 | |||||
Diluted earnings per share from continuing operations | $ | 0.38 | $ | 0.12 | |||||
Diluted earnings per share from discontinued operations | 0.57 | 0.60 | |||||||
Diluted earnings per share | $ | 0.95 | $ | 0.72 | |||||
Diluted weighted average shares | 915.6 | 932.9 | |||||||
Shares outstanding at period end | 898.1 | 926.2 |
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in millions; unaudited) | ||||||||
March 31, 2019 | September 30, 2018 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 239 | $ | 185 | ||||
Accounts receivable - net | 5,707 | 5,622 | ||||||
Inventories | 2,124 | 1,819 | ||||||
Assets held for sale | 2,999 | 3,015 | ||||||
Other current assets | 1,767 | 1,182 | ||||||
Current assets | 12,836 | 11,823 | ||||||
Property, plant and equipment - net | 3,332 | 3,300 | ||||||
Goodwill | 18,311 | 18,381 | ||||||
Other intangible assets - net | 6,015 | 6,187 | ||||||
Investments in partially-owned affiliates | 937 | 848 | ||||||
Noncurrent assets held for sale | 5,229 | 5,188 | ||||||
Other noncurrent assets | 1,829 | 3,070 | ||||||
Total assets | $ | 48,489 | $ | 48,797 | ||||
LIABILITIES AND EQUITY | ||||||||
Short-term debt and current portion of long-term debt | $ | 3,968 | $ | 1,307 | ||||
Accounts payable and accrued expenses | 4,214 | 4,428 | ||||||
Liabilities held for sale | 1,558 | 1,791 | ||||||
Other current liabilities | 3,701 | 3,724 | ||||||
Current liabilities | 13,441 | 11,250 | ||||||
Long-term debt | 8,418 | 9,623 | ||||||
Other noncurrent liabilities | 5,144 | 5,259 | ||||||
Noncurrent liabilities held for sale | 185 | 207 | ||||||
Shareholders' equity attributable to JCI | 20,036 | 21,164 | ||||||
Noncontrolling interests | 1,265 | 1,294 | ||||||
Total liabilities and equity | $ | 48,489 | $ | 48,797 |
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions; unaudited) | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2019 | 2018 | ||||||||||||
Operating Activities | |||||||||||||
Net income attributable to JCI from continuing operations | $ | 240 | $ | 184 | |||||||||
Income from continuing operations attributable to noncontrolling interests | 34 | 34 | |||||||||||
Net income from continuing operations | 274 | 218 | |||||||||||
Adjustments to reconcile net income from continuing operations to | |||||||||||||
cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 211 | 212 | |||||||||||
Pension and postretirement benefit income | (28 | ) | (36 | ) | |||||||||
Pension and postretirement contributions | (16 | ) | (13 | ) | |||||||||
Equity in earnings of partially-owned affiliates, net of dividends received | (31 | ) | (26 | ) | |||||||||
Deferred income taxes | 460 | 1 | |||||||||||
Other - net | 5 | 11 | |||||||||||
Changes in assets and liabilities, excluding acquisitions and divestitures: | |||||||||||||
Accounts receivable | (285 | ) | (97 | ) | |||||||||
Inventories | (99 | ) | (13 | ) | |||||||||
Other assets | 34 | (37 | ) | ||||||||||
Restructuring reserves | (34 | ) | (102 | ) | |||||||||
Accounts payable and accrued liabilities | 209 | 206 | |||||||||||
Accrued income taxes | (518 | ) | (51 | ) | |||||||||
Cash provided by operating activities from continuing operations | 182 | 273 | |||||||||||
Investing Activities | |||||||||||||
Capital expenditures | (125 | ) | (166 | ) | |||||||||
Acquisition of businesses, net of cash acquired | — | (15 | ) | ||||||||||
Business divestitures, net of cash divested | — | 103 | |||||||||||
Other - net | 2 | 9 | |||||||||||
Cash used by investing activities from continuing operations | (123 | ) | (69 | ) | |||||||||
Financing Activities | |||||||||||||
Increase (decrease) in short and long-term debt - net | 530 | (488 | ) | ||||||||||
Stock repurchases | (533 | ) | (49 | ) | |||||||||
Payment of cash dividends | (239 | ) | (241 | ) | |||||||||
Proceeds from the exercise of stock options | 38 | 20 | |||||||||||
Dividends paid to noncontrolling interests | (89 | ) | (43 | ) | |||||||||
Employee equity-based compensation withholdings | (2 | ) | (12 | ) | |||||||||
Cash used by financing activities from continuing operations | (295 | ) | (813 | ) | |||||||||
Discontinued Operations | |||||||||||||
Net cash provided by operating activities | 309 | 391 | |||||||||||
Net cash used by investing activities | (87 | ) | (107 | ) | |||||||||
Net cash used by financing activities | (17 | ) | (1 | ) | |||||||||
Net cash flows provided by discontinued operations | 205 | 283 | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 5 | 44 | |||||||||||
Changes in cash held for sale | (28 | ) | (5 | ) | |||||||||
Decrease in cash, cash equivalents and restricted cash | $ | (54 | ) | $ | (287 | ) |
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions; unaudited) | |||||||||||||
Six Months Ended March 31, | |||||||||||||
2019 | 2018 | ||||||||||||
Operating Activities | |||||||||||||
Net income attributable to JCI from continuing operations | $ | 347 | $ | 109 | |||||||||
Income from continuing operations attributable to noncontrolling interests | 63 | 62 | |||||||||||
Net income from continuing operations | 410 | 171 | |||||||||||
Adjustments to reconcile net income from continuing operations to | |||||||||||||
cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 422 | 422 | |||||||||||
Pension and postretirement benefit income | (57 | ) | (72 | ) | |||||||||
Pension and postretirement contributions | (37 | ) | (36 | ) | |||||||||
Equity in earnings of partially-owned affiliates, net of dividends received | (67 | ) | (59 | ) | |||||||||
Deferred income taxes | 503 | (79 | ) | ||||||||||
Non-cash restructuring and impairment costs | — | 28 | |||||||||||
Gain on Scott Safety business divestiture | — | (114 | ) | ||||||||||
Other - net | 33 | 38 | |||||||||||
Changes in assets and liabilities, excluding acquisitions and divestitures: | |||||||||||||
Accounts receivable | (139 | ) | (107 | ) | |||||||||
Inventories | (321 | ) | (209 | ) | |||||||||
Other assets | (29 | ) | (174 | ) | |||||||||
Restructuring reserves | (59 | ) | (6 | ) | |||||||||
Accounts payable and accrued liabilities | (17 | ) | (53 | ) | |||||||||
Accrued income taxes | (539 | ) | 390 | ||||||||||
Cash provided by operating activities from continuing operations | 103 | 140 | |||||||||||
Investing Activities | |||||||||||||
Capital expenditures | (278 | ) | (280 | ) | |||||||||
Acquisition of businesses, net of cash acquired | (13 | ) | (15 | ) | |||||||||
Business divestitures, net of cash divested | 6 | 2,114 | |||||||||||
Other - net | 26 | (8 | ) | ||||||||||
Cash provided (used) by investing activities from continuing operations | (259 | ) | 1,811 | ||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in short and long-term debt - net | 1,544 | (1,544 | ) | ||||||||||
Stock repurchases | (1,000 | ) | (199 | ) | |||||||||
Payment of cash dividends | (479 | ) | (473 | ) | |||||||||
Dividends paid to noncontrolling interests | (132 | ) | (43 | ) | |||||||||
Proceeds from the exercise of stock options | 51 | 36 | |||||||||||
Employee equity-based compensation withholdings | (23 | ) | (36 | ) | |||||||||
Other - net | — | (4 | ) | ||||||||||
Cash used by financing activities from continuing operations | (39 | ) | (2,263 | ) | |||||||||
Discontinued Operations | |||||||||||||
Net cash provided by operating activities | 502 | 397 | |||||||||||
Net cash used by investing activities | (153 | ) | (228 | ) | |||||||||
Net cash provided (used) by financing activities | (28 | ) | 9 | ||||||||||
Net cash flows provided by discontinued operations | 321 | 178 | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (38 | ) | 61 | ||||||||||
Changes in cash held for sale | (30 | ) | 5 | ||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | $ | 58 | $ | (68 | ) |
Three Months Ended March 31, | |||||||||||||||
(in millions; unaudited) | 2019 | 2018 | |||||||||||||
Actual | Adjusted Non-GAAP | Actual | Adjusted Non-GAAP | ||||||||||||
Net sales | |||||||||||||||
Building Solutions North America | $ | 2,187 | $ | 2,187 | $ | 2,097 | $ | 2,097 | |||||||
Building Solutions EMEA/LA | 878 | 878 | 907 | 907 | |||||||||||
Building Solutions Asia Pacific | 628 | 628 | 586 | 586 | |||||||||||
Global Products | 2,086 | 2,086 | 2,040 | 2,040 | |||||||||||
Net sales | $ | 5,779 | $ | 5,779 | $ | 5,630 | $ | 5,630 | |||||||
Segment EBITA (1) | |||||||||||||||
Building Solutions North America | $ | 257 | $ | 259 | $ | 239 | $ | 244 | |||||||
Building Solutions EMEA/LA | 80 | 81 | 77 | 78 | |||||||||||
Building Solutions Asia Pacific | 76 | 76 | 71 | 71 | |||||||||||
Global Products | 251 | 255 | 228 | 237 | |||||||||||
Segment EBITA | 664 | 671 | 615 | 630 | |||||||||||
Corporate expenses (2) | (167 | ) | (104 | ) | (162 | ) | (113 | ) | |||||||
Amortization of intangible assets | (98 | ) | (98 | ) | (92 | ) | (92 | ) | |||||||
Net mark-to-market adjustments (3) | 20 | — | — | — | |||||||||||
Restructuring and impairment costs (4) | — | — | — | — | |||||||||||
EBIT (5) | 419 | 469 | 361 | 425 | |||||||||||
EBIT margin | 7.3 | % | 8.1 | % | 6.4 | % | 7.5 | % | |||||||
Net financing charges | (98 | ) | (98 | ) | (107 | ) | (107 | ) | |||||||
Income from continuing operations before income taxes | 321 | 371 | 254 | 318 | |||||||||||
Income tax provision (6) | (47 | ) | (50 | ) | (36 | ) | (38 | ) | |||||||
Income from continuing operations | 274 | 321 | 218 | 280 | |||||||||||
Income from continuing operations attributable to noncontrolling interests | (34 | ) | (34 | ) | (34 | ) | (34 | ) | |||||||
Net income from continuing operations attributable to JCI | $ | 240 | $ | 287 | $ | 184 | $ | 246 |
Six Months Ended March 31, | |||||||||||||||
(in millions; unaudited) | 2019 | 2018 | |||||||||||||
Actual | Adjusted Non-GAAP | Actual | Adjusted Non-GAAP | ||||||||||||
Net sales | |||||||||||||||
Building Solutions North America | $ | 4,303 | $ | 4,303 | $ | 4,109 | $ | 4,109 | |||||||
Building Solutions EMEA/LA | 1,785 | 1,785 | 1,822 | 1,822 | |||||||||||
Building Solutions Asia Pacific | 1,241 | 1,241 | 1,183 | 1,183 | |||||||||||
Global Products | 3,914 | 3,914 | 3,821 | 3,821 | |||||||||||
Net sales | $ | 11,243 | $ | 11,243 | $ | 10,935 | $ | 10,935 | |||||||
Segment EBITA (1) | |||||||||||||||
Building Solutions North America | $ | 507 | $ | 512 | $ | 466 | $ | 480 | |||||||
Building Solutions EMEA/LA | 157 | 158 | 146 | 149 | |||||||||||
Building Solutions Asia Pacific | 142 | 142 | 145 | 145 | |||||||||||
Global Products | 441 | 449 | 514 | 415 | |||||||||||
Segment EBITA | 1,247 | 1,261 | 1,271 | 1,189 | |||||||||||
Corporate expenses (2) | (303 | ) | (197 | ) | (300 | ) | (218 | ) | |||||||
Amortization of intangible assets | (195 | ) | (195 | ) | (184 | ) | (184 | ) | |||||||
Net mark-to-market adjustments (3) | (1 | ) | — | — | — | ||||||||||
Restructuring and impairment costs (4) | — | — | (154 | ) | — | ||||||||||
EBIT (5) | 748 | 869 | 633 | 787 | |||||||||||
EBIT margin | 6.7 | % | 7.7 | % | 5.8 | % | 7.2 | % | |||||||
Net financing charges | (183 | ) | (183 | ) | (209 | ) | (209 | ) | |||||||
Income from continuing operations before income taxes | 565 | 686 | 424 | 578 | |||||||||||
Income tax provision (6) | (155 | ) | (93 | ) | (253 | ) | (70 | ) | |||||||
Income from continuing operations | 410 | 593 | 171 | 508 | |||||||||||
Income from continuing operations attributable to noncontrolling interests | (63 | ) | (63 | ) | (62 | ) | (62 | ) | |||||||
Net income from continuing operations attributable to JCI | $ | 347 | $ | 530 | $ | 109 | $ | 446 |
(in millions) | Building Solutions North America | Building Solutions EMEA/LA | Building Solutions Asia Pacific | Global Products | Consolidated JCI plc | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Segment EBITA as reported | $ | 257 | $ | 239 | $ | 80 | $ | 77 | $ | 76 | $ | 71 | $ | 251 | $ | 228 | $ | 664 | $ | 615 | |||||||||||||||||||
Segment EBITA margin as reported | 11.8 | % | 11.4 | % | 9.1 | % | 8.5 | % | 12.1 | % | 12.1 | % | 12.0 | % | 11.2 | % | 11.5 | % | 10.9 | % | |||||||||||||||||||
Adjusting items: | |||||||||||||||||||||||||||||||||||||||
Integration costs | 2 | 5 | 1 | 1 | — | — | 4 | 9 | 7 | 15 | |||||||||||||||||||||||||||||
Adjusted segment EBITA | $ | 259 | $ | 244 | $ | 81 | $ | 78 | $ | 76 | $ | 71 | $ | 255 | $ | 237 | $ | 671 | $ | 630 | |||||||||||||||||||
Adjusted segment EBITA margin | 11.8 | % | 11.6 | % | 9.2 | % | 8.6 | % | 12.1 | % | 12.1 | % | 12.2 | % | 11.6 | % | 11.6 | % | 11.2 | % |
(in millions) | Building Solutions North America | Building Solutions EMEA/LA | Building Solutions Asia Pacific | Global Products | Consolidated JCI plc | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Segment EBITA as reported | $ | 507 | $ | 466 | $ | 157 | $ | 146 | $ | 142 | $ | 145 | $ | 441 | $ | 514 | $ | 1,247 | $ | 1,271 | |||||||||||||||||||
Segment EBITA margin as reported | 11.8 | % | 11.3 | % | 8.8 | % | 8.0 | % | 11.4 | % | 12.3 | % | 11.3 | % | 13.5 | % | 11.1 | % | 11.6 | % | |||||||||||||||||||
Adjusting items: | |||||||||||||||||||||||||||||||||||||||
Integration costs | 5 | 14 | 1 | 3 | — | — | 8 | 15 | 14 | 32 | |||||||||||||||||||||||||||||
Scott Safety gain on sale | — | — | — | — | — | — | — | (114 | ) | — | (114 | ) | |||||||||||||||||||||||||||
Adjusted segment EBITA | $ | 512 | $ | 480 | $ | 158 | $ | 149 | $ | 142 | $ | 145 | $ | 449 | $ | 415 | $ | 1,261 | $ | 1,189 | |||||||||||||||||||
Adjusted segment EBITA margin | 11.9 | % | 11.7 | % | 8.9 | % | 8.2 | % | 11.4 | % | 12.3 | % | 11.5 | % | 10.9 | % | 11.2 | % | 10.9 | % |
Net Income Attributable to JCI plc | Net Income Attributable to JCI plc from Continuing Operations | ||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Earnings per share as reported for JCI plc | $ | 0.57 | $ | 0.47 | $ | 0.26 | $ | 0.20 | |||||||
Adjusting items: | |||||||||||||||
Transaction costs | 0.02 | — | — | — | |||||||||||
Integration costs | 0.08 | 0.07 | 0.08 | 0.07 | |||||||||||
Related tax impact | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||
Net mark-to-market adjustments | (0.02 | ) | — | (0.02 | ) | — | |||||||||
Related tax impact | 0.01 | — | 0.01 | — | |||||||||||
Cease of Power Solutions | |||||||||||||||
depreciation / amortization expense | (0.07 | ) | — | — | — | ||||||||||
Related tax impact | 0.02 | — | — | — | |||||||||||
Discrete tax items | — | 0.01 | — | 0.01 | |||||||||||
Adjusted earnings per share for JCI plc* | $ | 0.59 | $ | 0.54 | $ | 0.32 | $ | 0.26 |
Net Income Attributable to JCI plc | Net Income Attributable to JCI plc from Continuing Operations | ||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Earnings per share as reported for JCI plc | $ | 0.95 | $ | 0.72 | $ | 0.38 | $ | 0.12 | |||||||
Adjusting items: | |||||||||||||||
Transaction costs | 0.05 | 0.01 | — | 0.01 | |||||||||||
Related tax impact | (0.01 | ) | — | — | — | ||||||||||
Integration costs | 0.13 | 0.11 | 0.13 | 0.11 | |||||||||||
Related tax impact | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.02 | ) | |||||||
Scott Safety gain on sale | — | (0.12 | ) | — | (0.12 | ) | |||||||||
Related tax impact | — | 0.03 | — | 0.03 | |||||||||||
Restructuring and impairment costs | — | 0.17 | — | 0.17 | |||||||||||
Related tax impact | — | (0.03 | ) | — | (0.02 | ) | |||||||||
Cease of Power Solutions | |||||||||||||||
depreciation / amortization expense | (0.10 | ) | — | — | — | ||||||||||
Related tax impact | 0.03 | — | — | — | |||||||||||
Discrete tax items | 0.16 | 0.21 | 0.08 | 0.21 | |||||||||||
Adjusted earnings per share for JCI plc* | $ | 1.20 | $ | 1.08 | $ | 0.58 | $ | 0.48 |
Three Months Ended | Six Months Ended | ||||||||||
March 31, | March 31, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Weighted average shares outstanding for JCI plc | |||||||||||
Basic weighted average shares outstanding | 902.5 | 926.2 | 912.1 | 926.2 | |||||||
Effect of dilutive securities: | |||||||||||
Stock options, unvested restricted stock | |||||||||||
and unvested performance share awards | 3.4 | 6.3 | 3.5 | 6.7 | |||||||
Diluted weighted average shares outstanding | 905.9 | 932.5 | 915.6 | 932.9 |
(in millions) | Net Sales for the Three Months Ended March 31, 2018 | Base Year Adjustments - Acquisitions and Divestitures | Adjusted Base Net Sales for the Three Months Ended March 31, 2018 | Foreign Currency | Organic Growth | Net Sales for the Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||
Building Solutions North America | $ | 2,097 | $ | — | — | $ | 2,097 | $ | (10 | ) | — | $ | 100 | 5 | % | $ | 2,187 | 4 | % | ||||||||||||||||
Building Solutions EMEA/LA | 907 | — | — | 907 | (69 | ) | -8 | % | 40 | 4 | % | 878 | -3 | % | |||||||||||||||||||||
Building Solutions Asia Pacific | 586 | — | — | 586 | (26 | ) | -4 | % | 68 | 12 | % | 628 | 7 | % | |||||||||||||||||||||
Total field | 3,590 | — | — | 3,590 | (105 | ) | -3 | % | 208 | 6 | % | 3,693 | 3 | % | |||||||||||||||||||||
Global Products | 2,040 | (38 | ) | -2 | % | 2,002 | (60 | ) | -3 | % | 144 | 7 | % | 2,086 | 4 | % | |||||||||||||||||||
Total net sales | $ | 5,630 | $ | (38 | ) | -1 | % | $ | 5,592 | $ | (165 | ) | -3 | % | $ | 352 | 6 | % | $ | 5,779 | 3 | % |
(in millions) | Net Sales for the Six Months Ended March 31, 2018 | Base Year Adjustments - Acquisitions and Divestitures | Adjusted Base Net Sales for the Six Months Ended March 31, 2018 | Foreign Currency | Organic Growth | Net Sales for the Six Months Ended March 31, 2019 | |||||||||||||||||||||||||||||
Building Solutions North America | $ | 4,109 | $ | — | — | $ | 4,109 | $ | (18 | ) | — | $ | 212 | 5 | % | $ | 4,303 | 5 | % | ||||||||||||||||
Building Solutions EMEA/LA | 1,822 | 2 | — | 1,824 | (112 | ) | -6 | % | 73 | 4 | % | 1,785 | -2 | % | |||||||||||||||||||||
Building Solutions Asia Pacific | 1,183 | — | — | 1,183 | (44 | ) | -4 | % | 102 | 9 | % | 1,241 | 5 | % | |||||||||||||||||||||
Total field | 7,114 | 2 | — | 7,116 | (174 | ) | -2 | % | 387 | 5 | % | 7,329 | 3 | % | |||||||||||||||||||||
Global Products | 3,821 | (87 | ) | -2 | % | 3,734 | (91 | ) | -2 | % | 271 | 7 | % | 3,914 | 5 | % | |||||||||||||||||||
Total net sales | $ | 10,935 | $ | (85 | ) | -1 | % | $ | 10,850 | $ | (265 | ) | -2 | % | $ | 658 | 6 | % | $ | 11,243 | 4 | % |
(in millions) | Adjusted Segment EBITA / EBIT for the Three Months Ended March 31, 2018 | Base Year Adjustments - Acquisitions and Divestitures | Adjusted Base Segment EBITA / EBIT for the Three Months Ended March 31, 2018 | Foreign Currency | Organic Growth | Adjusted Segment EBITA / EBIT for the Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||
Building Solutions North America | $ | 244 | $ | — | — | $ | 244 | $ | (1 | ) | — | $ | 16 | 7 | % | $ | 259 | 6 | % | ||||||||||||||||
Building Solutions EMEA/LA | 78 | — | — | 78 | (10 | ) | -13 | % | 13 | 17 | % | 81 | 4 | % | |||||||||||||||||||||
Building Solutions Asia Pacific | 71 | — | — | 71 | (3 | ) | -4 | % | 8 | 11 | % | 76 | 7 | % | |||||||||||||||||||||
Total field | 393 | — | — | 393 | (14 | ) | -4 | % | 37 | 9 | % | 416 | 6 | % | |||||||||||||||||||||
Global Products | 237 | (6 | ) | -3 | % | 231 | (7 | ) | -3 | % | 31 | 13 | % | 255 | 10 | % | |||||||||||||||||||
Total adjusted segment EBITA | 630 | $ | (6 | ) | -1 | % | 624 | $ | (21 | ) | -3 | % | $ | 68 | 11 | % | 671 | 8 | % | ||||||||||||||||
Corporate expenses | (113 | ) | — | (113 | ) | (104 | ) | 8 | % | ||||||||||||||||||||||||||
Amortization of intangible assets | (92 | ) | 2 | (90 | ) | (98 | ) | -9 | % | ||||||||||||||||||||||||||
Total adjusted EBIT | $ | 425 | $ | (4 | ) | $ | 421 | $ | 469 | 11 | % | ||||||||||||||||||||||||
(in millions) | Adjusted Segment EBITA / EBIT for the Six Months Ended March 31, 2018 | Base Year Adjustments - Acquisitions and Divestitures | Adjusted Base Segment EBITA / EBIT for the Six Months Ended March 31, 2018 | Foreign Currency | Organic Growth | Adjusted Segment EBITA / EBIT for the Six Months Ended March 31, 2019 | |||||||||||||||||||||||||||||
Building Solutions North America | $ | 480 | $ | — | — | $ | 480 | $ | (2 | ) | — | $ | 34 | 7 | % | $ | 512 | 7 | % | ||||||||||||||||
Building Solutions EMEA/LA | 149 | 1 | 1 | % | 150 | (17 | ) | -11 | % | 25 | 17 | % | 158 | 5 | % | ||||||||||||||||||||
Building Solutions Asia Pacific | 145 | — | — | 145 | (4 | ) | -3 | % | 1 | 1 | % | 142 | -2 | % | |||||||||||||||||||||
Total field | 774 | 1 | — | 775 | (23 | ) | -3 | % | 60 | 8 | % | 812 | 5 | % | |||||||||||||||||||||
Global Products | 415 | (12 | ) | -3 | % | 403 | (10 | ) | -2 | % | 56 | 14 | % | 449 | 11 | % | |||||||||||||||||||
Total adjusted segment EBITA | 1,189 | $ | (11 | ) | -1 | % | 1,178 | $ | (33 | ) | -3 | % | $ | 116 | 10 | % | 1,261 | 7 | % | ||||||||||||||||
Corporate expenses | (218 | ) | — | (218 | ) | (197 | ) | 10 | % | ||||||||||||||||||||||||||
Amortization of intangible assets | (184 | ) | 2 | (182 | ) | (195 | ) | -7 | % | ||||||||||||||||||||||||||
Total adjusted EBIT | $ | 787 | $ | (9 | ) | $ | 778 | $ | 869 | 12 | % | ||||||||||||||||||||||||
(in billions) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | Six Months Ended March 31, 2019 | Six Months Ended March 31, 2018 | |||||||||||
Cash provided by operating activities from continuing operations | $ | 0.2 | $ | 0.3 | $ | 0.1 | $ | 0.1 | |||||||
Capital expenditures | (0.1 | ) | (0.2 | ) | (0.3 | ) | (0.3 | ) | |||||||
Reported free cash flow* | 0.1 | 0.1 | (0.2 | ) | (0.1 | ) | |||||||||
Adjusting items: | |||||||||||||||
Transaction/integration costs | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||
Restructuring payments | — | 0.1 | 0.1 | 0.1 | |||||||||||
Nonrecurring tax payments, net of refunds | — | — | — | (0.1 | ) | ||||||||||
Total adjusting items* | 0.1 | 0.2 | 0.2 | 0.2 | |||||||||||
Adjusted free cash flow* | $ | 0.2 | $ | 0.3 | $ | — | $ | — | |||||||
Adjusted net income from continuing operations | |||||||||||||||
attributable to JCI | $ | 0.3 | $ | 0.2 | $ | 0.5 | $ | 0.4 | |||||||
Adjusted free cash flow conversion | 67 | % | 150 | % | 0 | % | 0 | % |
(in millions) | March 31, 2019 | September 30, 2018 | |||||
Short-term debt and current portion of long-term debt | $ | 3,968 | $ | 1,307 | |||
Long-term debt | 8,418 | 9,623 | |||||
Total debt | 12,386 | 10,930 | |||||
Less: cash and cash equivalents | 239 | 185 | |||||
Total net debt | 12,147 | 10,745 | |||||
Shareholders' equity attributable to JCI | 20,036 | 21,164 | |||||
Total capitalization | $ | 32,183 | $ | 31,909 | |||
Total net debt as a % of total capitalization | 37.7 | % | 33.7 | % |
CONTACT: | Investors: Antonella Franzen (609) 720-4665 Ryan Edelman (609) 720-4545 Media: Fraser Engerman (414) 524-2733 | Exhibit 99.2 |
Notes | CUSIP / ISIN | Principal Amount Outstanding | Series Maximum(1) | Acceptance Priority Level(2) | Early Tender Premium(3) | Reference Security / Interpolated Mid-Swap Rate | Bloomberg Reference Page | Fixed Spread (bps) |
4.250% notes due 2021 | 478375 AE8 / US478375AE82 | $446,908,000 | $500,000,000(4) | 1 | $30 | T 2.250% due April 30, 2021 | FIT1 | 40 |
3.750% notes due 2021 | 478375 AF5 / US478375AF57 | $428,017,000 | 2 | $30 | T 2.250% due April 30, 2021 | FIT1 | 40 | |
1.000% notes due 2023 | XS1580476759 (ISIN) | €1,000,000,000 | $125,000,000 | 3 | €30 | 1.000% 2023 Notes Interpolated Mid-Swap Rate | ICAE1 | 45 |
3.900% notes due 2026 | 478375 AR9 / US478375AR95 | $686,518,000 | $200,000,000 | 4 | $30 | T 2.625% due February 15, 2029 | FIT1 | 80 |
4.625% notes due 2023 | 478375 AQ1 / US478375AQ13 | $34,967,000 | N/A | 5 | $30 | T 2.250% due April 30, 2024 | FIT1 | 65 |
3.625% notes due 2024 | 478375 AG3 / US478375AG31 | $467,887,000 | N/A | 6 | $30 | T 2.250% due April 30, 2024 | FIT1 | 75 |
1.375% notes due 2025 | XS1539114287 (ISIN) | €422,576,000 | N/A | 7 | €30 | 2025 Notes Interpolated Mid-Swap Rate | ICAE1 | 65 |
Notes | CUSIP / ISIN | Principal Amount Outstanding | Series Maximum(1) | Acceptance Priority Level(2) | Early Tender Premium(3) | Reference Security | Bloomberg Reference Page | Fixed Spread (bps) |
5.125% notes due 2045 | 478375 AS7 / US478375AS78 | $727,005,000 | $250,000,000 | 1 | $30 | T 3.375% due November 15, 2048 | FIT1 | 165 |
6.950% notes due 2045 | 478375 AM0 / US478375AM09 | $120,642,000 | N/A | 2 | $30 | T 3.375% due November 15, 2048 | FIT1 | 185 |
6.000% notes due 2036 | 478375 AH1 / US478375AH14 | $391,964,000 | N/A | 3 | $30 | T 3.375% due November 15, 2048 | FIT1 | 155 |
5.700% notes due 2041 | 478375 AJ7 / US478375AJ79 | $269,949,000 | N/A | 4 | $30 | T 3.375% due November 15, 2048 | FIT1 | 185 |
5.250% notes due 2041 | 478375 AK4 / US478375AK43 | $241,955,000 | N/A | 5 | $30 | T 3.375% due November 15, 2048 | FIT1 | 185 |
4.950% notes due 2064 | 478375 AN8 / US478375AN81 | $434,845,000 | N/A | 6 | $30 | T 3.375% due November 15, 2048 | FIT1 | 220 |
4.625% notes due 2044 | 478375 AL2 / US478375AL26 | $443,659,000 | N/A | 7 | $30 | T 3.375% due November 15, 2048 | FIT1 | 185 |
4.500% notes due 2047 | 478375 AU2 / US478375AU25 | $500,000,000 | N/A | 8 | $30 | T 3.375% due November 15, 2048 | FIT1 | 180 |
(1) | The Series Maximum for each Series of Notes represents the maximum aggregate principal amount of Notes of such Series that will be purchased in the applicable Offer. |
(2) | Subject to satisfaction or waiver of the conditions of the Offers and any Pool Cap Reallocation (as defined below), the Acceptance Priority Level procedures will operate concurrently but separately for the Pool 1 Notes and the Pool 2 Notes. |
(3) | Per $1,000 principal amount of USD Notes (as defined herein) and €1,000 principal amount of Euro Notes (as defined herein), as applicable, validly tendered and not validly withdrawn and accepted for purchase in the applicable Offer at or prior to the Early Tender Deadline. The Early Tender Premium is included in the applicable Total Consideration for such Series of Notes. |
(4) | Up to $500,000,000 aggregate principal amount of the 4.250% notes due 2021 and 3.750% notes due 2021, collectively, will be purchased in the Offers. |
• | Power Solutions divestiture and related events. The unaudited pro forma consolidated statements of income for the three months ended December 31, 2018 and the year ended September 30, 2018 give effect to the Power Solutions divestiture and related events as if they occurred at the beginning of this period on October 1, 2017. The unaudited pro forma consolidated statement of financial position gives effect to the Power Solutions divestiture and related events as if they occurred as of December 31, 2018, the Company’s latest balance sheet date. |
• | Power Solutions Discontinued Operations. The unaudited pro forma consolidated statements of income reflect the removal of the Power Solutions Discontinued Operations historical results in all periods presented. |
• | Historical financial statements of Johnson Controls as of and for the year ended September 30, 2018 and the related notes included in Johnson Controls’ Annual Report on Form 10-K for the year ended September 30, 2018 that Johnson Controls filed with the Securities and Exchange Commission (“SEC”) on November 20, 2018; and |
• | Separate historical financial statements of Johnson Controls as of and for the three months ended December 31, 2018 and the related notes included in Johnson Controls’ Quarterly Report on Form 10-Q for the period ended December 31, 2018 that Johnson Controls filed with the SEC on February 1, 2019. In those historical financial statements, Power Solutions was classified as a discontinued operation for all periods presented. |
Pro Forma Johnson Controls Continuing Operations | ||||
Net sales | ||||
Products and systems | $ | 3,922 | ||
Services | 1,542 | |||
5,464 | ||||
Cost of sales | ||||
Products and systems | 2,824 | |||
Services | 915 | |||
3,739 | ||||
Gross profit | 1,725 | |||
Selling, general and administrative expenses | (1,438 | ) | ||
Net financing charges | (85 | ) | ||
Equity income | 42 | |||
Income from continuing operations before income taxes | 244 | |||
Income tax provision | 108 | |||
Net income from continuing operations | 136 | |||
Income from continuing operations attributable to noncontrolling interests | 29 | |||
Net income from continuing operations attributable to Johnson Controls | $ | 107 | ||
Basic earnings per share attributable to Johnson Controls from continuing operations | $ | 0.12 | ||
Diluted earnings per share attributable to Johnson Controls from continuing operations | $ | 0.12 | ||
Weighted average number of shares outstanding: | ||||
Basic | 921.6 | |||
Diluted | 925.2 |
Historical Johnson Controls | Power Solutions Discontinued Operations | Pro Forma Johnson Controls Continuing Operations | |||||||||
Net sales | |||||||||||
Products and systems | $ | 25,332 | $ | (8,000 | ) | $ | 17,332 | ||||
Services | 6,068 | — | 6,068 | ||||||||
31,400 | (8,000 | ) | 23,400 | ||||||||
Cost of sales | |||||||||||
Products and systems | 18,602 | (6,287 | ) | 12,315 | |||||||
Services | 3,418 | — | 3,418 | ||||||||
22,020 | (6,287 | ) | 15,733 | ||||||||
Gross profit | 9,380 | (1,713 | ) | 7,667 | |||||||
Selling, general and administrative expenses | (6,010 | ) | 368 | (5,642 | ) | ||||||
Restructuring and impairment costs | (263 | ) | 8 | (255 | ) | ||||||
Net financing charges | (441 | ) | 40 | (401 | ) | ||||||
Equity income | 235 | (58 | ) | 177 | |||||||
Income from continuing operations before income taxes | 2,901 | (1,355 | ) | 1,546 | |||||||
Income tax provision | 518 | (321 | ) | 197 | |||||||
Net income from continuing operations | 2,383 | (1,034 | ) | 1,349 | |||||||
Income from continuing operations attributable to noncontrolling interests | 221 | (47 | ) | 174 | |||||||
Net income from continuing operations attributable to Johnson Controls | $ | 2,162 | $ | (987 | ) | $ | 1,175 | ||||
Basic earnings per share attributable to Johnson Controls from continuing operations | $ | 2.34 | $ | 1.27 | |||||||
Diluted earnings per share attributable to Johnson Controls from continuing operations | $ | 2.32 | $ | 1.26 | |||||||
Weighted average number of shares outstanding: | |||||||||||
Basic | 925.7 | 925.7 | |||||||||
Diluted | 931.7 | 931.7 |
Historical Johnson Controls | Power Solutions Discontinued Operations | Pro Forma Johnson Controls Continuing Operations | |||||||||
Net sales | |||||||||||
Products and systems | $ | 24,099 | $ | (7,337 | ) | $ | 16,762 | ||||
Services | 6,073 | — | 6,073 | ||||||||
30,172 | (7,337 | ) | 22,835 | ||||||||
Cost of sales | |||||||||||
Products and systems | 17,220 | (5,528 | ) | 11,692 | |||||||
Services | 3,613 | — | 3,613 | ||||||||
20,833 | (5,528 | ) | 15,305 | ||||||||
Gross profit | 9,339 | (1,809 | ) | 7,530 | |||||||
Selling, general and administrative expenses | (6,158 | ) | 435 | (5,723 | ) | ||||||
Restructuring and impairment costs | (367 | ) | 20 | (347 | ) | ||||||
Net financing charges | (496 | ) | 30 | (466 | ) | ||||||
Equity income | 240 | (83 | ) | 157 | |||||||
Income from continuing operations before income taxes | 2,558 | (1,407 | ) | 1,151 | |||||||
Income tax provision | 705 | (383 | ) | 322 | |||||||
Net income from continuing operations | 1,853 | (1,024 | ) | 829 | |||||||
Income from continuing operations attributable to noncontrolling interests | 199 | (42 | ) | 157 | |||||||
Net income from continuing operations attributable to Johnson Controls | $ | 1,654 | $ | (982 | ) | $ | 672 | ||||
Basic earnings per share attributable to Johnson Controls from continuing operations | $ | 1.77 | $ | 0.72 | |||||||
Diluted earnings per share attributable to Johnson Controls from continuing operations | $ | 1.75 | $ | 0.71 | |||||||
Weighted average number of shares outstanding: | |||||||||||
Basic | 935.3 | 935.3 | |||||||||
Diluted | 944.6 | 944.6 |
Historical Johnson Controls | Power Solutions Discontinued Operations | Pro Forma Johnson Controls Continuing Operations | |||||||||
Net sales | |||||||||||
Products and systems | $ | 18,084 | $ | (6,653 | ) | $ | 11,431 | ||||
Services | 2,753 | — | 2,753 | ||||||||
20,837 | (6,653 | ) | 14,184 | ||||||||
Cost of sales | |||||||||||
Products and systems | 13,323 | (4,960 | ) | 8,363 | |||||||
Services | 1,860 | — | 1,860 | ||||||||
15,183 | (4,960 | ) | 10,223 | ||||||||
Gross profit | 5,654 | (1,693 | ) | 3,961 | |||||||
Selling, general and administrative expenses | (4,190 | ) | 471 | (3,719 | ) | ||||||
Restructuring and impairment costs | (288 | ) | 66 | (222 | ) | ||||||
Net financing charges | (289 | ) | 13 | (276 | ) | ||||||
Equity income | 174 | (48 | ) | 126 | |||||||
Income (loss) from continuing operations before income taxes | 1,061 | (1,191 | ) | (130 | ) | ||||||
Income tax provision (benefit) | 197 | (426 | ) | (229 | ) | ||||||
Net income from continuing operations | 864 | (765 | ) | 99 | |||||||
Income from continuing operations attributable to noncontrolling interests | 132 | (23 | ) | 109 | |||||||
Net income (loss) from continuing operations attributable to Johnson Controls | $ | 732 | $ | (742 | ) | $ | (10 | ) | |||
Basic earnings (loss) per share attributable to Johnson Controls from continuing operations | $ | 1.10 | $ | (0.01 | ) | ||||||
Diluted earnings (loss) per share attributable to Johnson Controls from continuing operations | $ | 1.09 | $ | (0.01 | ) | ||||||
Weighted average number of shares outstanding: | |||||||||||
Basic | 667.4 | 667.4 | |||||||||
Diluted | 672.6 | 667.4 |
Historical Johnson Controls | Power Solutions Discontinued Operations | Pro Forma Adjustments | Pro Forma Johnson Controls Continuing Operations | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 292 | $ | — | $ | 12,711 | (a) | $ | 13,003 | ||||||
Accounts receivable - net | 5,442 | — | — | 5,442 | |||||||||||
Inventories | 2,027 | — | — | 2,027 | |||||||||||
Assets held for sale | 3,042 | (3,042 | ) | — | — | ||||||||||
Other current assets | 1,152 | — | (111 | ) | (b) | 1,041 | |||||||||
Current assets | 11,955 | (3,042 | ) | 12,600 | 21,513 | ||||||||||
Property, plant and equipment - net | 3,314 | — | — | 3,314 | |||||||||||
Goodwill | 18,291 | — | — | 18,291 | |||||||||||
Other intangible assets - net | 6,080 | — | — | 6,080 | |||||||||||
Investments in partially-owned affiliates | 887 | — | — | 887 | |||||||||||
Noncurrent assets held for sale | 5,159 | (5,159 | ) | — | — | ||||||||||
Other noncurrent assets | 2,330 | — | — | 2,330 | |||||||||||
Total assets | $ | 48,016 | $ | (8,201 | ) | $ | 12,600 | $ | 52,415 | ||||||
Liabilities and Equity | |||||||||||||||
Short-term debt | $ | 2,319 | $ | — | $ | — | $ | 2,319 | |||||||
Current portion of long-term debt | 1 | — | — | 1 | |||||||||||
Accounts payable | 3,273 | — | — | 3,273 | |||||||||||
Accrued compensation and benefits | 868 | — | — | 868 | |||||||||||
Deferred revenue | 1,378 | — | — | 1,378 | |||||||||||
Liabilities held for sale | 1,636 | (1,636 | ) | — | — | ||||||||||
Other current liabilities | 2,178 | — | 807 | (b) | 2,985 | ||||||||||
Current liabilities | 11,653 | (1,636 | ) | 807 | 10,824 | ||||||||||
Long-term debt | 9,588 | — | — | 9,588 | |||||||||||
Pension and postretirement benefits | 569 | — | — | 569 | |||||||||||
Noncurrent liabilities held for sale | 201 | (201 | ) | — | — | ||||||||||
Other noncurrent liabilities | 4,598 | — | 943 | (b) | 5,541 | ||||||||||
Long-term liabilities | 14,956 | (201 | ) | 943 | 15,698 | ||||||||||
Ordinary shares | 10 | — | — | 10 | |||||||||||
Ordinary shares held in treasury, at cost | (1,543 | ) | — | — | (1,543 | ) | |||||||||
Capital in excess of par value | 16,579 | — | — | 16,579 | |||||||||||
Retained earnings | 6,136 | (6,515 | ) | 10,850 | (c) | 10,471 | |||||||||
Accumulated other comprehensive loss | (1,080 | ) | 442 | — | (638 | ) | |||||||||
Shareholders’ equity attributable to Johnson Controls | 20,102 | (6,073 | ) | 10,850 | 24,879 | ||||||||||
Noncontrolling interests | 1,305 | (291 | ) | — | 1,014 | ||||||||||
Total equity | 21,407 | (6,364 | ) | 10,850 | 25,893 | ||||||||||
Total liabilities and equity | $ | 48,016 | $ | (8,201 | ) | $ | 12,600 | $ | 52,415 |
(a) | Represents the cash proceeds received, net of certain transaction costs, in connection with the Power Solutions divestiture. |
(b) | Represents the Company's income tax impact resulting from the Power Solutions divestiture gain as well as certain separation related costs. |
(c) | Represents the net effect of the pro forma adjustments described in notes (a) through (b) above, had the transaction closed on December 31, 2018. These amounts are subject to finalization. |
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