Segment Information

9 Months Ended

Jun. 30, 2017

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Segment Information

Segment Information

During the first quarter of fiscal 2017, the Company determined that the Automotive Experience business met the criteria to be classified as a discontinued operation, which required retrospective application to financial information for all periods presented. Refer to Note 5, "Discontinued Operations," of the notes to consolidated financial statements for further information regarding the Company's discontinued operations.

In the first quarter of fiscal 2017, the Company began evaluating the performance of its business segments primarily on segment EBITA, which represents income from continuing operations before income taxes and noncontrolling interests, excluding general corporate expenses, intangible asset amortization, net financing charges, significant restructuring and impairment costs, and the net mark-to-market adjustments related to pension and postretirement plans. Historical information has been revised to present the comparable periods on a consistent basis.

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 six reportable segments for financial reporting purposes. The Company’s six reportable segments are presented in the context of its two primary businesses – Building Technologies & Solutions and Power Solutions.

Building Technologies & Solutions

Building Efficiency

Building Efficiency designs, produces, markets and installs HVAC and control systems that monitor, automate and integrate critical building segment equipment and conditions including HVAC, fire-safety and security in commercial buildings and in various industrial applications.

• Systems and Service North America provides products and services to non-residential building and industrial applications in the North American marketplace. The products and services include HVAC and controls systems, energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems.

• Products North America designs and produces heating and air conditioning solutions for residential and light commercial applications, and also markets products and refrigeration systems to the replacement and new construction markets in the North American marketplace. Products North America also includes HVAC products installed for Navy and Marine customers globally.

• Asia provides HVAC, controls and refrigeration systems and technical services to the Asian marketplace. Asia also includes the Johnson Controls-Hitachi Air Conditioning joint venture, which was formed October 1, 2015.

• Rest of World provides HVAC, controls and refrigeration systems and technical services to markets in Europe, the Middle East and Latin America.

Tyco

Tyco designs, sells, installs, services and monitors integrated electronic security systems and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional and governmental customers. The Tyco business also designs, manufactures and sells fire protection, security and life safety products, including intrusion security, anti-theft devices, breathing apparatus and access control and video management systems, for commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide.

Power Solutions

Power Solutions services both automotive original equipment manufacturers and the battery aftermarket by providing advanced battery technology, coupled with systems engineering, marketing and service expertise.

Financial information relating to the Company’s reportable segments is as follows (in millions):

	Net Sales
	Three Months Ended June 30,				Nine Months Ended June 30,
	2017		2016		2017		2016
Building Technologies & Solutions
Building Efficiency
Systems and Service North America	$	1,128	$	1,113	$	3,103	$	3,131
Products North America	698		690		1,826		1,793
Asia	1,456		1,361		3,671		3,515
Rest of World	456		471		1,278		1,302
	3,738		3,635		9,878		9,741
Tyco	2,336		—		6,953		—
	6,074		3,635		16,831		9,741
Power Solutions	1,609		1,519		5,205		4,842
Total net sales	$	7,683	$	5,154	$	22,036	$	14,583

	Segment EBITA
	Three Months Ended June 30,						Nine Months Ended June 30,
	2017			2016			2017			2016
Building Technologies & Solutions
Building Efficiency
Systems and Service North America	$	126		$	142		$	291		$	342
Products North America	98			96			192			176
Asia	246			180			483			368
Rest of World	26			22			25			29
	496			440			991			915
Tyco	416			—			1,009			—
	912			440			2,000			915
Power Solutions	304			280			996			922
Segment EBITA	$	1,216		$	720		$	2,996		$	1,837
Corporate expenses	(172		)	(126		)	(605		)	(323		)
Amortization of intangible assets	(108		)	(22		)	(383		)	(62		)
Restructuring and impairment costs	(49		)	(27		)	(226		)	(87		)
Net mark-to-market adjustments on pension      plans	(45		)	—			90			—
Net financing charges	(124		)	(65		)	(376		)	(202		)
Income from continuing operations before      income taxes	$	718		$	480		$	1,496		$	1,163