Equity and Noncontrolling Interests

9 Months Ended

Jun. 30, 2020

Stockholders' Equity Note [Abstract]

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 June 30, 2020										Three Months Ended June 30, 2019
	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, March 31,	$	18,084	$	1,004	$	19,088	$	20,036	$	1,265	$	21,301
Total comprehensive income (loss):
Net income (loss)	(182)		60		(122)		4,192		84		4,276
Foreign currency translation adjustments	72		4		76		(90)		(4)		(94)
Realized and unrealized gains (losses) on derivatives	6		—		6		(5)		(4)		(9)


Other comprehensive income (loss)	78		4		82		(95)		(8)		(103)
Comprehensive income (loss)	(104)		64		(40)		4,097		76		4,173

Other changes in equity:
Cash dividends—ordinary shares	(195)		—		(195)		(208)		—		(208)


Repurchases and retirements of ordinary shares	—		—		—		(4,122)		—		(4,122)
Divestiture of Power Solutions	—		—		—		483		(295)		188
Other, including options exercised	20		—		20		77		—		77
Ending balance, June 30,	$	17,805	$	1,068	$	18,873	$	20,363	$	1,046	$	21,409



	Nine Months Ended June 30, 2020										Nine Months Ended June 30, 2019
	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	190		115		305		5,062		171		5,233
Foreign currency translation adjustments	(148)		(9)		(157)		(103)		8		(95)
Realized and unrealized gains on derivatives	1		2		3		10		—		10

Pension and postretirement plans	(1)		—		(1)		—		—		—
Other comprehensive income (loss)	(148)		(7)		(155)		(93)		8		(85)
Comprehensive income	42		108		150		4,969		179		5,148

Other changes in equity:
Cash dividends—ordinary shares	(590)		—		(590)		(683)		—		(683)
Dividends attributable to noncontrolling interests	—		(103)		(103)		—		(132)		(132)
Repurchases and retirements of ordinary shares	(1,467)		—		(1,467)		(5,122)		—		(5,122)

Divestiture of Power Solutions	—		—		—		483		(295)		188
Adoption of ASC 606	—		—		—		(45)		—		(45)
Adoption of ASU 2016-16	—		—		—		(546)		—		(546)
Adoption of ASC 842	(5)		—		(5)		—		—		—
Other, including options exercised	59		—		59		143		—		143
Ending balance, June 30,	$	17,805	$	1,068	$	18,873	$	20,363	$	1,046	$	21,409

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.

In order to enhance liquidity resources in response to financial market uncertainty related to the COVID-19 pandemic, in March 2020 the Company made the decision to suspend its share repurchase program. As a result, no shares were repurchased during the three months ended June 30, 2020. For the nine months ended June 30, 2020, the Company repurchased and retired $1,467 million of its ordinary shares. As of June 30, 2020, approximately $3.1 billion remains available under the share repurchase program. In June 2020, the Company announced the share repurchase program would resume in the fourth quarter of fiscal 2020.

On May 1, 2019, the Company announced a "modified Dutch auction" tender offer for up to $4.0 billion of its ordinary shares with a price range between $36.00 and $40.00 per share. The tender offer expired on May 31, 2019. Through the tender offer, the Company accepted for payment 102 million shares at a purchase price of $39.25 per share, for a total of approximately $4,035 million, including fees and commissions. The shares purchased through the tender offer were immediately retired. Ordinary shares were reduced by the number of shares retired at $0.01 par value per share. The excess purchase price over par value was recorded in retained earnings in the consolidated statements of financial position.

In addition to the equity tender offer described above, the Company repurchased $87 million and $1,087 million of its ordinary shares, respectively, during the three and nine months ended June 30, 2019. These repurchased shares were retired in the fourth quarter of fiscal 2019.

The following schedules present changes in accumulated other comprehensive income ("AOCI") attributable to Johnson Controls (in millions, net of tax):


	Three Months Ended June 30,
	2020		2019

Foreign currency translation adjustments ("CTA")
Balance at beginning of period	$	(1,005)	$	(952)
Divestiture of Power Solutions	—		479
Aggregate adjustment for the period (net of tax effect of $0 and $0)	72		(90)
Balance at end of period	(933)		(563)

Realized and unrealized gains (losses) on derivatives
Balance at beginning of period	(7)		2
Divestiture of Power Solutions (net of tax effect of $0 and $1)	—		4
Current period changes in fair value (net of tax effect of $1 and $(3))	4		(4)
Reclassification to income (net of tax effect of $0 and $0) *	2		(1)
Balance at end of period	(1)		1

Pension and postretirement plans
Balance at beginning of period	(9)		(2)
Reclassification to income (net of tax effect of $0 and $0)	—		—
Balance at end of period	(9)		(2)

Accumulated other comprehensive loss, end of period	$	(943)	$	(564)



	Nine Months Ended June 30,
	2020		2019

CTA
Balance at beginning of period	$	(785)	$	(939)
Divestiture of Power Solutions	—		479
Aggregate adjustment for the period (net of tax effect of $0 and $0)	(148)		(103)
Balance at end of period	(933)		(563)

Realized and unrealized gains (losses) on derivatives
Balance at beginning of period	(2)		(13)
Divestiture of Power Solutions (net of tax effect of $0 and $1)	—		4
Current period changes in fair value (net of tax effect of $0 and $1)	1		4
Reclassification to income (net of tax effect of $0 and $3) *	—		6
Balance at end of period	(1)		1

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	$	(943)	$	(564)

* 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.