Tyco International Finance S.A. |
CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Three Months Ended June 30, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | Johnson Controls International plc | | Tyco Fire & Security Finance SCA | | Tyco International Finance S.A. | | Other Subsidiaries | | Consolidating Adjustments | | Total | | | | | | | | | | | | | Net sales | $ | — |
| | $ | — |
| | $ | — |
| | $ | 7,683 |
| | $ | — |
| | $ | 7,683 |
| Cost of sales | — |
| | — |
| |
|
| | 5,252 |
| | — |
| | 5,252 |
| | | | | | | | | | | | | Gross profit | — |
| | — |
| | — |
| | 2,431 |
| | — |
| | 2,431 |
| | | | | | | | | | | | | Selling, general and administrative expenses | (1 | ) | | — |
| | — |
| | (1,608 | ) | | — |
| | (1,609 | ) | Restructuring and impairment costs | — |
| | — |
| | — |
| | (49 | ) | | — |
| | (49 | ) | Net financing charges | (59 | ) | | (1 | ) | | (3 | ) | | (61 | ) | | — |
| | (124 | ) | Equity income | 626 |
| | 468 |
| | 68 |
| | 69 |
| | (1,162 | ) | | 69 |
| Intercompany interest and fees | (11 | ) | | 89 |
| | (5 | ) | | (73 | ) | | — |
| | — |
| | | | | | | | | | | | | Income from continuing operations before income taxes | 555 |
| | 556 |
| | 60 |
| | 709 |
| | (1,162 | ) | | 718 |
| | | | | | | | | | | | | Income tax provision | — |
| | — |
| | — |
| | 89 |
| | — |
| | 89 |
| Net income | 555 |
| | 556 |
| | 60 |
| | 620 |
| | (1,162 | ) | | 629 |
| | | | | | | | | | | | | Income from continuing operations attributable to noncontrolling interests | — |
| | — |
| | — |
| | 74 |
| | — |
| | 74 |
| | | | | | | | | | | | | Net income attributable to Johnson Controls | $ | 555 |
| | $ | 556 |
| | $ | 60 |
| | $ | 546 |
| | $ | (1,162 | ) | | $ | 555 |
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | Johnson Controls International plc | | Tyco Fire & Security Finance SCA | | Tyco International Finance S.A. | | Other Subsidiaries | | Consolidating Adjustments | | Total | | | | | | | | | | | | | Net income | $ | 555 |
| | $ | 556 |
| | $ | 60 |
| | $ | 620 |
| | $ | (1,162 | ) | | $ | 629 |
| Other comprehensive income (loss), net of tax | | | | | | | | | | | | Foreign currency translation adjustments | 268 |
| | (30 | ) | | (4 | ) | | 319 |
| | (268 | ) | | 285 |
| Realized and unrealized losses on derivatives | (7 | ) | | — |
| | — |
| | (9 | ) | | 7 |
| | (9 | ) | Realized and unrealized gains (losses) on marketable securities | (3 | ) | | — |
| | (6 | ) | | 3 |
| | 3 |
| | (3 | ) | | | | | | | | | | | | | Other comprehensive income (loss) | 258 |
| | (30 | ) | | (10 | ) | | 313 |
| | (258 | ) | | 273 |
| | | | | | | | | | | | | Total comprehensive income | 813 |
| | 526 |
| | 50 |
| | 933 |
| | (1,420 | ) | | 902 |
| | | | | | | | | | | | | Comprehensive income attributable to noncontrolling interests | — |
| | — |
| | — |
| | 89 |
| | — |
| | 89 |
| | | | | | | | | | | | | Comprehensive income attributable to Johnson Controls | $ | 813 |
| | $ | 526 |
| | $ | 50 |
| | $ | 844 |
| | $ | (1,420 | ) | | $ | 813 |
|
CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Nine Months Ended June 30, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | Johnson Controls International plc | | Tyco Fire & Security Finance SCA | | Tyco International Finance S.A. | | Other Subsidiaries | | Consolidating Adjustments | | Total | | | | | | | | | | | | | Net sales | $ | — |
| | $ | — |
| | $ | — |
| | $ | 22,036 |
| | $ | — |
| | $ | 22,036 |
| Cost of sales | — |
| | — |
| | — |
| | 15,210 |
| | — |
| | 15,210 |
| | | | | | | | | | | | | Gross profit | — |
| | — |
| | — |
| | 6,826 |
| | — |
| | 6,826 |
| | | | | | | | | | | | | Selling, general and administrative expenses | (7 | ) | | — |
| | — |
| | (4,898 | ) | | — |
| | (4,905 | ) | Restructuring and impairment costs | — |
| | — |
| | — |
| | (226 | ) | | — |
| | (226 | ) | Net financing charges | (137 | ) | | (1 | ) | | (17 | ) | | (221 | ) | | — |
| | (376 | ) | Equity income (loss) | 841 |
| | (32 | ) | | (433 | ) | | 177 |
| | (376 | ) | | 177 |
| Intercompany interest and fees | 39 |
| | 162 |
| | 32 |
| | (233 | ) | | — |
| | — |
| | | | | | | | | | | | | Income (loss) from continuing operations before income taxes | 736 |
| | 129 |
| | (418 | ) | | 1,425 |
| | (376 | ) | | 1,496 |
| | | | | | | | | | | | | Income tax provision | — |
| | — |
| | — |
| | 570 |
| | — |
| | 570 |
| | | | | | | | | | | | | Income (loss) from continuing operations | 736 |
| | 129 |
| | (418 | ) | | 855 |
| | (376 | ) | | 926 |
| | | | | | | | | | | | | Income (loss) from sale of intercompany investment, net of tax | — |
| | — |
| | (935 | ) | | — |
| | 935 |
| | — |
| | | | | | | | | | | | | Loss from discontinued operations, net of tax | — |
| | — |
| | — |
| | (34 | ) | | — |
| | (34 | ) | | | | | | | | | | | | | Net income (loss) | 736 |
| | 129 |
| | (1,353 | ) | | 821 |
| | 559 |
| | 892 |
| | | | | | | | | | | | | Income from continuing operations attributable to noncontrolling interests | — |
| | — |
| | — |
| | 147 |
| | — |
| | 147 |
| Income from discontinued operations attributable to noncontrolling interests | — |
| | — |
| | — |
| | 9 |
| | — |
| | 9 |
| | | | | | | | | | | | | Net income (loss) attributable to Johnson Controls | $ | 736 |
| | $ | 129 |
| | $ | (1,353 | ) | | $ | 665 |
| | $ | 559 |
| | $ | 736 |
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Nine Months Ended June 30, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | Johnson Controls International plc | | Tyco Fire & Security Finance SCA | | Tyco International Finance S.A. | | Other Subsidiaries | | Consolidating Adjustments | | Total | | | | | | | | | | | | | Net income (loss) | $ | 736 |
| | $ | 129 |
| | $ | (1,353 | ) | | $ | 821 |
| | $ | 559 |
| | $ | 892 |
| Other comprehensive income (loss), net of tax | | | | | | | | | | | | Foreign currency translation adjustments | (150 | ) | | (37 | ) | | 22 |
| | (151 | ) | | 150 |
| | (166 | ) | Realized and unrealized losses on derivatives | (13 | ) | | — |
| | — |
| | (13 | ) | | 13 |
| | (13 | ) | Realized and unrealized gains on marketable securities | 6 |
| | — |
| | 1 |
| | 5 |
| | (6 | ) | | 6 |
| | | | | | | | | | | | | Other comprehensive income (loss) | (157 | ) | | (37 | ) | | 23 |
| | (159 | ) | | 157 |
| | (173 | ) | | | | | | | | | | | | | Total comprehensive income (loss) | 579 |
| | 92 |
| | (1,330 | ) | | 662 |
| | 716 |
| | 719 |
| | | | | | | | | | | | | Comprehensive income attributable to noncontrolling interests | — |
| | — |
| | — |
| | 140 |
| | — |
| | 140 |
| | | | | | | | | | | | | Comprehensive income (loss) attributable to Johnson Controls | $ | 579 |
| | $ | 92 |
| | $ | (1,330 | ) | | $ | 522 |
| | $ | 716 |
| | $ | 579 |
|
CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION As of June 30, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | Johnson Controls International plc | | Tyco Fire & Security Finance SCA | | Tyco International Finance S.A. | | Other Subsidiaries | | Consolidating Adjustments | | Total | | | | | | | | | | | | | Assets | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 318 |
| | $ | 388 |
| | $ | (248 | ) | | $ | 458 |
| Accounts receivable - net | — |
| | — |
| | — |
| | 6,443 |
| | — |
| | 6,443 |
| Inventories | — |
| | — |
| | — |
| | 3,384 |
| | — |
| | 3,384 |
| Intercompany receivables | 1,857 |
| | 1,786 |
| | 38 |
| | 8,279 |
| | (11,960 | ) | | — |
| Assets held for sale | — |
| | — |
| | — |
| | 2,082 |
| | — |
| | 2,082 |
| Other current assets | 40 |
| | — |
| | 2 |
| | 1,553 |
| | — |
| | 1,595 |
| Current assets | $ | 1,897 |
| | $ | 1,786 |
| | $ | 358 |
| | $ | 22,129 |
| | $ | (12,208 | ) | | $ | 13,962 |
| | | | | | | | | | | | | Property, plant and equipment - net | — |
| | — |
| | — |
| | 5,870 |
| | — |
| | 5,870 |
| Goodwill | 243 |
| | — |
| | 32 |
| | 19,344 |
| | — |
| | 19,619 |
| Other intangible assets - net | — |
| | — |
| | — |
| | 6,727 |
| | — |
| | 6,727 |
| Investments in partially-owned affiliates | — |
| | — |
| | — |
| | 1,159 |
| | — |
| | 1,159 |
| Investments in affiliates | 18,098 |
| | 29,456 |
| | 22,515 |
| | — |
| | (70,069 | ) | | — |
| Intercompany loans receivable | 17,862 |
| | 4,140 |
| | 2,836 |
| | 4,688 |
| | (29,526 | ) | | — |
| Other noncurrent assets | 59 |
| | — |
| | 12 |
| | 3,278 |
| | — |
| | 3,349 |
| Total assets | $ | 38,159 |
| | $ | 35,382 |
| | $ | 25,753 |
| | $ | 63,195 |
| | $ | (111,803 | ) | | $ | 50,686 |
| | | | | | | | | | | | | Liabilities and Equity | | | | | | | | | | | | Short-term debt | $ | 1,592 |
| | $ | 76 |
| | $ | — |
| | $ | 536 |
| | $ | (248 | ) | | $ | 1,956 |
| Current portion of long-term debt | 444 |
| | — |
| | 18 |
| | 81 |
| | — |
| | 543 |
| Accounts payable | — |
| | — |
| | — |
| | 3,764 |
| | — |
| | 3,764 |
| Accrued compensation and benefits | 1 |
| | — |
| | — |
| | 1,003 |
| | — |
| | 1,004 |
| Liabilities held for sale | — |
| | — |
| | — |
| | 247 |
| | — |
| | 247 |
| Intercompany payables | 3,911 |
| | 1,037 |
| | 6,001 |
| | 1,011 |
| | (11,960 | ) | | — |
| Other current liabilities | 350 |
| | 3 |
| | 24 |
| | 3,624 |
| | — |
| | 4,001 |
| Current liabilities | 6,298 |
| | 1,116 |
| | 6,043 |
| | 10,266 |
| | (12,208 | ) | | 11,515 |
| | | | | | | | | | | | | Long-term debt | 7,442 |
| | — |
| | 153 |
| | 4,177 |
| | — |
| | 11,772 |
| Pension and postretirement benefits | — |
| | — |
| | — |
| | 1,330 |
| | — |
| | 1,330 |
| Intercompany loans payable | 4,688 |
| | 17,862 |
| | — |
| | 6,976 |
| | (29,526 | ) | | — |
| Other noncurrent liabilities | — |
| | — |
| | 24 |
| | 5,241 |
| | — |
| | 5,265 |
| Long-term liabilities | 12,130 |
| | 17,862 |
| | 177 |
| | 17,724 |
| | (29,526 | ) | | 18,367 |
| | | | | | | | | | | | | Redeemable noncontrolling interests | — |
| | — |
| | — |
| | 189 |
| | — |
| | 189 |
| Ordinary shares | 9 |
| | — |
| | — |
| | — |
| | — |
| | 9 |
| Ordinary shares held in treasury | (481 | ) | | — |
| | — |
| | — |
| | — |
| | (481 | ) | Other shareholders' equity | 20,203 |
| | 16,404 |
| | 19,533 |
| | 34,132 |
| | (70,069 | ) | | 20,203 |
| Shareholders’ equity attributable to Johnson Controls | 19,731 |
| | 16,404 |
| | 19,533 |
| | 34,132 |
| | (70,069 | ) | | 19,731 |
| Noncontrolling interests | — |
| | — |
| | — |
| | 884 |
| | — |
| | 884 |
| Total equity | 19,731 |
| | 16,404 |
| | 19,533 |
| | 35,016 |
| | (70,069 | ) | | 20,615 |
| Total liabilities and equity | $ | 38,159 |
| | $ | 35,382 |
| | $ | 25,753 |
| | $ | 63,195 |
| | $ | (111,803 | ) | | $ | 50,686 |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended June 30, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | Johnson Controls International plc | | Tyco Fire & Security Finance SCA | | Tyco International Finance S.A. | | Other Subsidiaries | | Consolidating Adjustments | | Total | | | | | | | | | | | | | Operating Activities | | | | | | | | | | | | Net cash provided (used) by operating activities | $ | 136 |
| | $ | — |
| | $ | 97 |
| | $ | (1,554 | ) | | $ | — |
| | $ | (1,321 | ) | | | | | | | | | | | | | Investing Activities | | | | | | | | | | | | Capital expenditures | — |
| | — |
| | — |
| | (996 | ) | | — |
| | (996 | ) | Sale of property, plant and equipment | — |
| | — |
| | — |
| | 23 |
| | — |
| | 23 |
| Acquisition of businesses, net of cash acquired | — |
| | — |
| | (6 | ) | | — |
| | — |
| | (6 | ) | Business divestitures | — |
| | — |
| | — |
| | 180 |
| | — |
| | 180 |
| Changes in long-term investments | — |
| | — |
| | (11 | ) | | (22 | ) | | — |
| | (33 | ) | Net change in intercompany loans receivable | — |
| | — |
| | 10 |
| | 357 |
| | (367 | ) | | — |
| Increase in intercompany investment in subsidiaries | (1,924 | ) | | (1,716 | ) | | (76 | ) | | — |
| | 3,716 |
| | — |
| Net cash used by investing activities | (1,924 | ) | | (1,716 | ) | | (83 | ) | | (458 | ) | | 3,349 |
| | (832 | ) | | | | | | | | | | | | | Financing Activities | | | | | | | | | | | | Increase (decrease) in short-term debt - net | 1,592 |
| | 76 |
| | — |
| | (533 | ) | | (248 | ) | | 887 |
| Increase in long-term debt | 1,544 |
| | — |
| | — |
| | 9 |
| | — |
| | 1,553 |
| Repayment of long-term debt | (46 | ) | | — |
| | (16 | ) | | (910 | ) | | — |
| | (972 | ) | Debt financing costs | (17 | ) | | — |
| | — |
| | (1 | ) | | — |
| | (18 | ) | Stock repurchases | (426 | ) | | — |
| | — |
| | — |
| | — |
| | (426 | ) | Payment of cash dividends | (469 | ) | | — |
| | — |
| | — |
| | — |
| | (469 | ) | Proceeds from the exercise of stock options | 56 |
| | — |
| | — |
| | 74 |
| | — |
| | 130 |
| Net change in intercompany loans payable | (357 | ) | | — |
| | — |
| | (10 | ) | | 367 |
| | — |
| Increase in equity from parent | — |
| | 1,640 |
| | 76 |
| | 2,000 |
| | (3,716 | ) | | — |
| Change in noncontrolling interest share | — |
| | — |
| | — |
| | 8 |
| | — |
| | 8 |
| Dividends paid to noncontrolling interests | — |
| | — |
| | — |
| | (78 | ) | | — |
| | (78 | ) | Dividend from Adient spin-off | (87 | ) | | — |
| | — |
| | 2,137 |
| | — |
| | 2,050 |
| Cash transferred to Adient related to spin-off | — |
| | — |
| | — |
| | (665 | ) | | — |
| | (665 | ) | Cash paid related to prior acquisitions | — |
| | — |
| | — |
| | (75 | ) | | — |
| | (75 | ) | Other | (13 | ) | | — |
| | — |
| | 3 |
| | — |
| | (10 | ) | Net cash provided by financing activities | 1,777 |
| | 1,716 |
| | 60 |
| | 1,959 |
| | (3,597 | ) | | 1,915 |
| Effect of exchange rate changes on cash and cash equivalents | — |
| | — |
| | — |
| | 12 |
| | — |
| | 12 |
| Changes in cash held for sale | — |
| | — |
| | — |
| | 105 |
| | — |
| | 105 |
| Increase (decrease) in cash and cash equivalents | (11 | ) | | — |
| | 74 |
| | 64 |
| | (248 | ) | | (121 | ) | Cash and cash equivalents at beginning of period | 11 |
| | — |
| | 244 |
| | 324 |
| | — |
| | 579 |
| Cash and cash equivalents at end of period | $ | — |
| | $ | — |
| | $ | 318 |
| | $ | 388 |
| | $ | (248 | ) | | $ | 458 |
|
CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION As of September 30, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | Johnson Controls International plc | | Tyco Fire & Security Finance SCA | | Tyco International Finance S.A. | | Other Subsidiaries | | Consolidating Adjustments | | Total | | | | | | | | | | | | | Assets | | | | | | | | | | | | Cash and cash equivalents | $ | 11 |
| | $ | — |
| | $ | 244 |
| | $ | 324 |
| | $ | — |
| | $ | 579 |
| Accounts receivable - net | — |
| | — |
| | — |
| | 6,394 |
| | — |
| | 6,394 |
| Inventories | — |
| | — |
| | — |
| | 2,888 |
| | — |
| | 2,888 |
| Intercompany receivables | 16 |
| | — |
| | 2 |
| | 6,188 |
| | (6,206 | ) | | — |
| Assets held for sale | — |
| | — |
| | — |
| | 5,812 |
| | — |
| | 5,812 |
| Other current assets | 6 |
| | — |
| | 1 |
| | 1,429 |
| | — |
| | 1,436 |
| Current assets | $ | 33 |
| | $ | — |
| | $ | 247 |
| | $ | 23,035 |
| | $ | (6,206 | ) | | $ | 17,109 |
| | | | | | | | | | | | | Property, plant and equipment - net | — |
| | — |
| | — |
| | 5,632 |
| | — |
| | 5,632 |
| Goodwill | — |
| | — |
| | 274 |
| | 20,750 |
| | — |
| | 21,024 |
| Other intangible assets - net | — |
| | — |
| | — |
| | 7,540 |
| | — |
| | 7,540 |
| Investments in partially-owned affiliates | — |
| | — |
| | — |
| | 990 |
| | — |
| | 990 |
| Investments in affiliates | 12,460 |
| | 31,142 |
| | 27,643 |
| | — |
| | (71,245 | ) | | — |
| Intercompany loans receivable | 18,680 |
| | — |
| | 13,336 |
| | 15,631 |
| | (47,647 | ) | | — |
| Noncurrent assets held for sale | — |
| | — |
| | — |
| | 7,374 |
| | — |
| | 7,374 |
| Other noncurrent assets | — |
| | — |
| | — |
| | 3,510 |
| | — |
| | 3,510 |
| Total assets | $ | 31,173 |
| | $ | 31,142 |
| | $ | 41,500 |
| | $ | 84,462 |
| | $ | (125,098 | ) | | $ | 63,179 |
| | | | | | | | | | | | | Liabilities and Equity | | | | | | | | | | | | Short-term debt | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1,078 |
| | $ | — |
| | $ | 1,078 |
| Current portion of long-term debt | — |
| | — |
| | — |
| | 628 |
| | — |
| | 628 |
| Accounts payable | 1 |
| | — |
| | — |
| | 3,999 |
| | — |
| | 4,000 |
| Accrued compensation and benefits | — |
| | — |
| | — |
| | 1,333 |
| | — |
| | 1,333 |
| Liabilities held for sale | — |
| | — |
| | — |
| | 4,276 |
| | — |
| | 4,276 |
| Intercompany payables | 3,873 |
| | — |
| | 2,315 |
| | 18 |
| | (6,206 | ) | | — |
| Other current liabilities | 3 |
| | 2 |
| | 32 |
| | 4,979 |
| | — |
| | 5,016 |
| Current liabilities | 3,877 |
| | 2 |
| | 2,347 |
| | 16,311 |
| | (6,206 | ) | | 16,331 |
| | | | | | | | | | | | | Long-term debt | — |
| | — |
| | 2,413 |
| | 8,640 |
| | — |
| | 11,053 |
| Pension and postretirement benefits | — |
| | — |
| | — |
| | 1,550 |
| | — |
| | 1,550 |
| Intercompany loans payable | 3,178 |
| | 18,680 |
| | 12,453 |
| | 13,336 |
| | (47,647 | ) | | — |
| Noncurrent liabilities held for sale | — |
| | — |
| | — |
| | 3,888 |
| | — |
| | 3,888 |
| Other noncurrent liabilities | — |
| | — |
| | 22 |
| | 5,011 |
| | — |
| | 5,033 |
| Long-term liabilities | 3,178 |
| | 18,680 |
| | 14,888 |
| | 32,425 |
| | (47,647 | ) | | 21,524 |
| | | | | | | | | | | | | Redeemable noncontrolling interest | — |
| | — |
| | — |
| | 234 |
| | — |
| | 234 |
| Ordinary shares | 9 |
| | — |
| | — |
| | — |
| | — |
| | 9 |
| Ordinary shares held in treasury | (20 | ) | | — |
| | — |
| | — |
| | — |
| | (20 | ) | Other shareholders' equity | 24,129 |
| | 12,460 |
| | 24,265 |
| | 34,520 |
| | (71,245 | ) | | 24,129 |
| Shareholders’ equity attributable to Johnson Controls | 24,118 |
| | 12,460 |
| | 24,265 |
| | 34,520 |
| | (71,245 | ) | | 24,118 |
| Noncontrolling interests | — |
| | — |
| | — |
| | 972 |
| | — |
| | 972 |
| Total equity | 24,118 |
| | 12,460 |
| | 24,265 |
| | 35,492 |
| | (71,245 | ) | | 25,090 |
| Total liabilities and equity | $ | 31,173 |
| | $ | 31,142 |
| | $ | 41,500 |
| | $ | 84,462 |
| | $ | (125,098 | ) | | $ | 63,179 |
|
|