0000833444-17-000056.txt : 20171109 0000833444-17-000056.hdr.sgml : 20171109 20171109070932 ACCESSION NUMBER: 0000833444-17-000056 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20171109 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20171109 DATE AS OF CHANGE: 20171109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Johnson Controls International plc CENTRAL INDEX KEY: 0000833444 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS BUSINESS SERVICES [7380] IRS NUMBER: 000000000 STATE OF INCORPORATION: L2 FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13836 FILM NUMBER: 171188239 BUSINESS ADDRESS: STREET 1: ONE ALBERT QUAY STREET 2: ALBERT QUAY CITY: CORK STATE: L2 ZIP: 00000 BUSINESS PHONE: 609-720-4200 MAIL ADDRESS: STREET 1: 5757 N. GREEN BAY AVENUE STREET 2: P.O. BOX 591 CITY: MILWAUKEE STATE: WI ZIP: 53201 FORMER COMPANY: FORMER CONFORMED NAME: TYCO INTERNATIONAL plc DATE OF NAME CHANGE: 20141117 FORMER COMPANY: FORMER CONFORMED NAME: TYCO INTERNATIONAL LTD DATE OF NAME CHANGE: 20100408 FORMER COMPANY: FORMER CONFORMED NAME: TYCO INTERNATIONAL LTD /BER/ DATE OF NAME CHANGE: 19970715 8-K 1 a8-ksegmentrecast93017.htm 8-K Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
 
Date of Report (Date of Earliest Event Reported):
 
November 9, 2017

JOHNSON CONTROLS INTERNATIONAL PLC
(Exact name of registrant as specified in its charter)
 
 
 
 
 
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)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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.
¨




Item 2.02 Results of Operations and Financial Condition
Effective July 1, 2017, Johnson Controls International plc (the "Company") reorganized the reportable segments within its Building Technologies & Solutions business to align with its new management reporting structure and business activities. Prior to this reorganization, Building Technologies & Solutions was comprised of five reportable segments for financial reporting purposes: Systems and Service North America, Products North America, Asia, Rest of World and Tyco. As a result of this change, Building Technologies & Solutions is now comprised of four reportable segments for financial reporting purposes: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific and Global Products.
A summary of the significant Building Technologies & Solutions reportable segment changes is as follows:
•
The “Systems and Service North America” segment is now part of the new “Building Solutions North America” reportable segment.
•
The North America Unitary Products business, Air Distribution Technologies business and refrigeration systems business, as well as heating, ventilating and air conditioning (HVAC) products installed for Marine customers, previously included in the “Products North America” segment, are now part of the new reportable segment “Global Products.” The systems and products installation business for U.S. Navy customers, previously included in the “Products North America” segment, is now part of the new “Building Solutions North America” reportable segment.
•
The systems and service business within the former “Asia” segment is now part of the new “Building Solutions Asia Pacific” reportable segment. The HVAC products manufacturing business and the Johnson Controls-Hitachi joint venture, previously part of the “Asia” segment, are now part of the new “Global Products” reportable segment.
•
The systems and service businesses in Europe, the Middle East and Latin America within the former “Rest of World” segment are now part of the new “Building Solutions EMEA/LA” reportable segment. The HVAC products manufacturing businesses, previously part of the “Rest of World” segment, are now part of the new “Global Products” reportable segment.
•
As the Company has integrated the legacy Tyco business with its legacy Building Efficiency business for segment reporting purposes, Tyco is no longer a separate reportable segment. The Tyco businesses are now included throughout the new reportable segments.
A description of the four Building Technologies & Solutions reportable segments for financial reporting purposes is as follows:
•
Building Solutions North America designs, sells, installs, and services HVAC and controls systems, integrated electronic security systems (including monitoring), 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, to non-residential building and industrial applications in the North American marketplace.
•
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 to markets in Europe, the Middle East, Africa and Latin America.
•
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 to the Asia Pacific marketplace.
•
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, breathing apparatus 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, which was formed October 1, 2015, as well as the Scott Safety business, which was sold on October 4, 2017. 



Exhibit 99.1 to this report, which is incorporated herein by reference, is selected supplemental information related to previously issued historical segment information for the Building Technologies & Solutions business that has been revised on a basis that is consistent with the reorganization of the reportable segments.
The information contained in this Current Report on Form 8-K and the Exhibit hereto shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits

(d) Exhibits:

99.1
Selected Supplemental Information





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

JOHNSON CONTROLS INTERNATIONAL PLC

November 9, 2017
 
By:
/s/ Suzanne M. Vincent
 
 
 
Name:
Suzanne M. Vincent
 
 
 
Title:
Vice President and Corporate Controller


















































EXHIBIT INDEX

    
Exhibit No.
Description
 
 
99.1
 
 




 EX-99.1 2 exh991-segmentrecast93017.htm EXHIBIT 99.1 Exhibit


November 9, 2017

Exhibit 99.1
 
Three Months Ended December 31, 2016
 
Three Months Ended March 31, 2017
 
Three Months Ended June 30, 2017
 
Three Months Ended September 30, 2017
 
Twelve Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions); (unaudited)
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
 
Building Solutions North America
$
1,942

 
$
2,097

 
$
2,142

 
$
2,160

 
$
8,341

Building Solutions EMEA/LA
875

 
898

 
896

 
926

 
3,595

Building Solutions Asia Pacific
575

 
562

 
630

 
677

 
2,444

Global Products
1,794

 
2,014

 
2,406

 
2,241

 
8,455

Total Building Technologies & Solutions
$
5,186

 
$
5,571

 
$
6,074

 
$
6,004

 
$
22,835

 
 
 
 
 
 
 
 
 
 
Segment EBITA *
 
 
 
 
 
 
 
 
 
Building Solutions North America
$
196

 
$
255

 
$
290

 
$
298

 
$
1,039

Building Solutions EMEA/LA
49

 
89

 
100

 
52

 
290

Building Solutions Asia Pacific
63

 
67

 
85

 
108

 
323

Global Products
127

 
242

 
437

 
373

 
1,179

Total Building Technologies & Solutions
$
435

 
$
653

 
$
912

 
$
831

 
$
2,831


* Management evaluates the performance of the 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, significant restructuring and impairment costs, and the net mark-to-market adjustments related to pension and postretirement plans.

The Company's filing contains financial information regarding adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margins, which are non-GAAP performance measures. The Company's definition of adjusted segment EBITA excludes special items because these costs are not considered to be directly related to the underlying operating performance of its business units. Management believes these non-GAAP measures are useful to investors in understanding the ongoing operations and business trends of the Company.
The following is the three months ended December 31, 2016 reconciliation of net sales, segment EBITA and segment EBITA margin as reported to adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margin (unaudited):
 
Building Solutions North America
 
Building Solutions EMEA/LA
 
Building Solutions Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
Net sales as reported
$
1,942

 
$
875

 
$
575

 
$
1,794

 
$
5,186

 
 
 
 
 
 
 
 
 


Adjusting items:
 
 
 
 
 
 
 
 


   Nonrecurring purchase accounting impacts
—

 
3

 
1

 
6

 
10

 
 
 
 
 
 
 
 
 
 
Adjusted net sales
$
1,942

 
$
878

 
$
576

 
$
1,800

 
$
5,196

 
 
 
 
 
 
 
 
 


Segment EBITA as reported
$
196

 
$
49

 
$
63

 
$
127

 
$
435

Segment EBITA margin as reported
10.1
%
 
5.6
%
 
11.0
%
 
7.1
%
 
8.4
%
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 


   Transaction costs
10

 
2

 
2

 
3

 
17

   Integration costs
7

 
2

 
1

 
4

 
14

   Nonrecurring purchase accounting impacts
23

 
12

 
6

 
71

 
112

 
 
 
 
 
 
 
 
 
 
Adjusted segment EBITA
$
236

 
$
65

 
$
72

 
$
205

 
$
578

Adjusted segment EBITA margin
12.2
%
 
7.4
%
 
12.5
%
 
11.4
%
 
11.1
%













The following is the three months ended March 31, 2017 reconciliation of net sales, segment EBITA and segment EBITA margin as reported to adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margin (unaudited):

 
Building Solutions North America
 
Building Solutions EMEA/LA
 
Building Solutions Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
Net sales as reported
$
2,097

 
$
898

 
$
562

 
$
2,014

 
$
5,571

 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
   Nonrecurring purchase accounting impacts
(23
)
 
(7
)
 
—

 
—

 
(30
)
 
 
 
 
 
 
 
 
 
 
Adjusted net sales
$
2,074

 
$
891

 
$
562

 
$
2,014

 
$
5,541

 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
255

 
$
89

 
$
67

 
$
242

 
$
653

Segment EBITA margin as reported
12.2
%
 
9.9
%
 
11.9
%
 
12.0
%
 
11.7
%
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
   Transaction costs
1

 
3

 
—

 
6

 
10

   Integration costs
7

 
2

 
2

 
5

 
16

   Nonrecurring purchase accounting impacts
(34
)
 
(15
)
 
(2
)
 
—

 
(51
)
 
 
 
 
 
 
 
 
 
 
Adjusted segment EBITA
$
229

 
$
79

 
$
67

 
$
253

 
$
628

Adjusted segment EBITA margin
11.0
%
 
8.9
%
 
11.9
%
 
12.6
%
 
11.3
%

The following is the three months ended June 30, 2017 reconciliation of net sales, segment EBITA and segment EBITA margin as reported to adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margin (unaudited):

 
Building Solutions North America
 
Building Solutions EMEA/LA
 
Building Solutions Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
Net sales as reported
$
2,142

 
$
896

 
$
630

 
$
2,406

 
$
6,074

 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
   Nonrecurring purchase accounting impacts
(7
)
 
(7
)
 
—

 
—

 
(14
)
 
 
 
 
 
 
 
 
 
 
Adjusted net sales
$
2,135

 
$
889

 
$
630

 
$
2,406

 
$
6,060

 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
290

 
$
100

 
$
85

 
$
437

 
$
912

Segment EBITA margin as reported
13.5
%
 
11.2
%
 
13.5
%
 
18.2
%
 
15.0
%
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
   Transaction costs
2

 
—

 
—

 
4

 
6

   Integration costs
10

 
—

 
—

 
4

 
14

   Nonrecurring purchase accounting impacts
(12
)
 
(11
)
 
(1
)
 
—

 
(24
)
 
 
 
 
 
 
 
 
 
 
Adjusted segment EBITA
$
290

 
$
89

 
$
84

 
$
445

 
$
908

Adjusted segment EBITA margin
13.6
%
 
10.0
%
 
13.3
%
 
18.5
%
 
15.0
%






The following is the three months ended September 30, 2017 reconciliation of net sales, segment EBITA and segment EBITA margin as reported to adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margin (unaudited):

 
Building Solutions North America
 
Building Solutions EMEA/LA
 
Building Solutions Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
Net sales as reported
$
2,160

 
$
926

 
$
677

 
$
2,241

 
$
6,004

 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
   Nonrecurring purchase accounting impacts
5

 
(5
)
 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Adjusted net sales
$
2,165

 
$
921

 
$
677

 
$
2,241

 
$
6,004

 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
298

 
$
52

 
$
108

 
$
373

 
$
831

Segment EBITA margin as reported
13.8
%
 
5.6
%
 
16.0
%
 
16.6
%
 
13.8
%
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
   Integration costs
18

 
2

 
2

 
12

 
34

   Nonrecurring purchase accounting impacts
(1
)
 
(9
)
 
(1
)
 
—

 
(11
)
   Unfavorable arbitration award
—

 
50

 
—

 
—

 
50

 
 
 
 
 
 
 
 
 
 
Adjusted segment EBITA
$
315

 
$
95

 
$
109

 
$
385

 
$
904

Adjusted segment EBITA margin
14.5
%
 
10.3
%
 
16.1
%
 
17.2
%
 
15.1
%

The following is the twelve months ended September 30, 2017 reconciliation of net sales, segment EBITA and segment EBITA margin as reported to adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margin (unaudited):

 
Building Solutions North America
 
Building Solutions EMEA/LA
 
Building Solutions Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
Net sales as reported
$
8,341

 
$
3,595

 
$
2,444

 
$
8,455

 
$
22,835

 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
   Nonrecurring purchase accounting impacts
(25
)
 
(16
)
 
1

 
6

 
(34
)
 
 
 
 
 
 
 
 
 
 
Adjusted net sales
$
8,316

 
$
3,579

 
$
2,445

 
$
8,461

 
$
22,801

 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
1,039

 
$
290

 
$
323

 
$
1,179

 
$
2,831

Segment EBITA margin as reported
12.5
%
 
8.1
%
 
13.2
%
 
13.9
%
 
12.4
%
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
   Transaction costs
13

 
5

 
2

 
13

 
33

   Integration costs
42

 
6

 
5

 
25

 
78

   Nonrecurring purchase accounting impacts
(24
)
 
(23
)
 
2

 
71

 
26

   Unfavorable arbitration award
—

 
50

 
—

 
—

 
50

 
 
 
 
 
 
 
 
 
 
Adjusted segment EBITA
$
1,070

 
$
328

 
$
332

 
$
1,288

 
$
3,018

Adjusted segment EBITA margin
12.9
%
 
9.2
%
 
13.6
%
 
15.2
%
 
13.2
%