XML 43 R25.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Information (Notes)
12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
ASC 280, "Segment Reporting," establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in ASC 280, the Company has determined that it has four reportable segments for financial reporting purposes.

Building Solutions North America: Building Solutions North America designs, sells, installs, and services HVAC, controls, refrigeration, integrated electronic security, 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, as well as data-driven “smart building” solutions, to non-residential building and industrial applications in the North American marketplace.

Building Solutions EMEA/LA: 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, including data-driven “smart building” solutions, to markets in Europe, the Middle East, Africa and Latin America.

Building Solutions Asia Pacific: 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, including data-driven “smart building” solutions, to the Asia Pacific marketplace.

Global Products: 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.

On October 1, 2018, the Company adopted ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The new standard requires the mark-to-market of marketable securities investments previously recorded within accumulated other comprehensive income on the statement of financial position be recorded in the statement of income on a prospective basis beginning as of the adoption date. As these restricted investments do not relate to the underlying operating performance of its business, the Company’s definition of segment earnings excludes the mark-to-market adjustments in fiscal 2020 and 2019.

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 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):
 Year Ended September 30,
 202020192018
Net Sales
Building Solutions North America$8,605 $9,031 $8,679 
Building Solutions EMEA/LA3,440 3,655 3,696 
Building Solutions Asia Pacific2,403 2,658 2,553 
Global Products7,869 8,624 8,472 
Total net sales$22,317 $23,968 $23,400 

 Year Ended September 30,
 202020192018
Segment EBITA
Building Solutions North America (1)$1,157 $1,153 $1,109 
Building Solutions EMEA/LA (2)338 368 344 
Building Solutions Asia Pacific (3)319 341 347 
Global Products (4)1,134 1,179 1,338 
Total segment EBITA$2,948 $3,041 $3,138 
Amortization of intangible assets(386)(377)(376)
Corporate expenses (5)(371)(405)(584)
Net financing charges(231)(350)(401)
Restructuring and impairment costs(783)(235)(255)
Net mark-to-market adjustments
(274)(618)24 
Income from continuing operations before income taxes$903 $1,056 $1,546 
 September 30,
 202020192018
Assets
Building Solutions North America (6)$15,215 $15,562 $15,384 
Building Solutions EMEA/LA (7)4,989 4,786 4,997 
Building Solutions Asia Pacific (8)2,720 2,657 2,743 
Global Products (9)13,882 13,945 14,261 
36,806 36,950 37,385 
Assets held for sale147 158 8,203 
Unallocated3,862 5,179 3,209 
Total$40,815 $42,287 $48,797 
 Year Ended September 30,
 202020192018
Depreciation/Amortization
Building Solutions North America$233 $233 $236 
Building Solutions EMEA/LA102 112 110 
Building Solutions Asia Pacific24 23 28 
Global Products414 396 390 
773 764 764 
Corporate49 61 60 
Continuing Operations822 825 824 
Discontinued Operations— 32 261 
Total$822 $857 $1,085 
 
 Year Ended September 30,
 202020192018
Capital Expenditures
Building Solutions North America$93 $119 $114 
Building Solutions EMEA/LA99 93 73 
Building Solutions Asia Pacific36 26 26 
Global Products191 310 307 
419 548 520 
Corporate24 38 125 
Continuing Operations443 586 645 
Discontinued Operations— 197 385 
Total$443 $783 $1,030 
 
(1)Building Solutions North America segment EBITA for the years ended September 30, 2020 and 2018 excludes $520 million and $20 million, respectively, of restructuring and impairment costs. For the year ended September 30, 2020, Building Solutions North America includes $1 million of equity losses.

(2)Building Solutions EMEA/LA segment EBITA for the years ended September 30, 2020 and 2018 excludes $59 million, and $56 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2020, 2019 and 2018, Building Solutions EMEA/LA segment EBITA includes $6 million, $12 million and $1 million, respectively, of equity income.
(3)Building Solutions Asia Pacific segment EBITA for the years ended September 30, 2020 and 2018 excludes $56 million and $16 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2020, 2019 and 2018, Building Solutions Asia Pacific segment EBITA includes less than $1 million, $1 million and $1 million, respectively, of equity income.

(4)Global Products segment EBITA for the years ended September 30, 2020, 2019 and 2018 excludes $143 million, $235 million and $113 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2020, 2019 and 2018, Global Products segment EBITA includes $166 million, $179 million and $175 million, respectively, of equity income.

(5)Corporate expenses for the years ended September 30, 2020 and 2018 excludes $5 million and $50 million, respectively, of restructuring and impairment costs.

(6)Buildings Solutions North America assets as of September 30, 2020, 2019 and 2018 include $7 million, $8 million and $8 million, respectively, of investments in partially-owned affiliates.

(7)Building Solutions EMEA/LA assets as of September 30, 2020, 2019 and 2018 include $108 million, $109 million and $99 million, respectively, of investments in partially-owned affiliates.

(8)Building Solutions Asia Pacific assets as of September 30, 2020, 2019 and 2018 include $2 million and $6 million, and $1 million, respectively, of investments in partially-owned affiliates.

(9)Global Products assets as of September 30, 2020, 2019 and 2018 include $797 million, $730 million and $740 million, respectively, of investments in partially-owned affiliates.

In fiscal years 2020, 2019 and 2018 no customer exceeded 10% of consolidated net sales.

Geographic Segments

Financial information relating to the Company’s operations by geographic area is as follows (in millions):
 Year Ended September 30,
 202020192018
Net Sales
United States$11,007 $11,773 $11,306 
China1,206 1,424 1,480 
Japan1,789 1,943 1,903 
Germany583 629 616 
United Kingdom980 1,042 1,075 
Taiwan725 612 661 
Other foreign4,113 4,625 4,423 
Other European countries1,914 1,920 1,936 
Total$22,317 $23,968 $23,400 
Long-Lived Assets (Year-end)
United States$1,713 $1,824 $1,879 
China164 326 332 
Japan204 228 209 
Germany22 20 19 
United Kingdom70 77 73 
Taiwan133 141 154 
Other foreign567 568 464 
Other European countries186 164 170 
Total$3,059 $3,348 $3,300 
Net sales attributed to geographic locations are based on the location of the assets producing the sales. Long-lived assets by geographic location consist of net property, plant and equipment.