Equity and Noncontrolling Interests

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, 2018									Three Months Ended June 30, 2017
	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	$	20,874		$	1,006		$	21,880		$	19,388		$	813		$	20,201
Total comprehensive income:
Net income	723			71			794			555			66			621
Foreign currency translation adjustments	(557		)	(44		)	(601		)	268			3			271
Realized and unrealized gains (losses) on derivatives	3			(1		)	2			(7		)	(1		)	(8		)
Realized and unrealized losses on marketable securities	—			—			—			(3		)	—			(3		)
Other comprehensive income (loss)	(554		)	(45		)	(599		)	258			2			260
Comprehensive income	169			26			195			813			68			881

Other changes in equity:
Cash dividends—ordinary shares	(240		)	—			(240		)	(234		)	—			(234		)
Repurchases of ordinary shares	(56		)	—			(56		)	(307		)	—			(307		)
Change in noncontrolling interest share	—			4			4			—			3			3
Other, including options exercised	26			—			26			71			—			71
Ending balance, June 30	$	20,773		$	1,036		$	21,809		$	19,731		$	884		$	20,615



	Nine Months Ended June 30, 2018									Nine Months Ended June 30, 2017
	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,	$	20,447		$	920		$	21,367		$	24,118		$	972		$	25,090
Total comprehensive income:
Net income	1,391			132			1,523			736			127			863
Foreign currency translation adjustments	(331		)	3			(328		)	(150		)	(22		)	(172		)
Realized and unrealized gains (losses) on derivatives	(2		)	1			(1		)	(13		)	1			(12		)
Realized and unrealized gains (losses) on marketable securities	(2		)	—			(2		)	6			—			6
Other comprehensive income (loss)	(335		)	4			(331		)	(157		)	(21		)	(178		)
Comprehensive income	1,056			136			1,192			579			106			685

Other changes in equity:
Cash dividends—ordinary shares	(722		)	—			(722		)	(705		)	—			(705		)
Dividends attributable to noncontrolling interests	—			(43		)	(43		)	—			(47		)	(47		)
Repurchases of ordinary shares	(255		)	—			(255		)	(426		)	—			(426		)
Change in noncontrolling interest share	—			23			23			—			(9		)	(9		)
Adoption of ASU 2016-09	179			—			179			—			—			—
Spin-off of Adient	—			—			—			(4,038		)	(138		)	(4,176		)
Other, including options exercised	68			—			68			203			—			203
Ending balance, June 30	$	20,773		$	1,036		$	21,809		$	19,731		$	884		$	20,615

As previously disclosed, during the quarter ended December 31, 2017, the Company adopted ASU No. 2016-09. As a result, the Company recognized deferred tax assets of $179 million related to certain operating loss carryforwards resulting from the exercise of employee stock options and restricted stock vestings on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of October 1, 2017.

As previously disclosed, on October 31, 2016, the Company completed the Adient spin-off. As a result of the spin-off, the Company divested net assets of approximately $4.0 billion.

Following the Tyco Merger, the Company adopted, subject to the ongoing existence of sufficient distributable reserves, the existing Tyco International plc $1 billion share repurchase program in September 2016. In December 2017, the Company's Board of Directors approved an $1 billion increase to its share repurchase authorization. The share repurchase program does not have an expiration date and may be amended or terminated by the Board of Directors at any time without prior notice. For the three and nine month periods ended June 30, 2018, the Company repurchased $56 million and $255 million of its ordinary shares, respectively. For the three and nine month periods ended June 30, 2017, the Company repurchased $307 million and $426 million of its ordinary shares, respectively. As of June 30, 2018, approximately $1.1 billion remains available under the share repurchase program.

The Company consolidates certain subsidiaries in which the noncontrolling interest party has within its control the right to require the Company to redeem all or a portion of its interest in the subsidiary. The redeemable noncontrolling interests are reported at their estimated redemption value. Any adjustment to the redemption value impacts retained earnings but does not impact net income. Redeemable noncontrolling interests which are redeemable only upon future events, the occurrence of which is not currently probable, are recorded at carrying value.

The following schedules present changes in the redeemable noncontrolling interests (in millions):



	Three Months Ended June 30,
	2018			2017

Beginning balance, March 31	$	235		$	168
Net income	10			8
Foreign currency translation adjustments	(13		)	14
Realized and unrealized losses on derivatives	(1		)	(1		)
Ending balance, June 30	$	231		$	189




	Nine Months Ended June 30,
	2018			2017

Beginning balance, September 30	$	211		$	234
Net income	35			29
Foreign currency translation adjustments	(3		)	6
Realized and unrealized losses on derivatives	(9		)	(1		)
Dividends	(3		)	(43		)
Spin-off of Adient	—			(36		)
Ending balance, June 30	$	231		$	189

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,
	2018			2017

Foreign currency translation adjustments ("CTA")
Balance at beginning of period	$	(255	)	$	(1,007	)
Aggregate adjustment for the period (net of tax effect of $0 and $(5))	(557		)	268
Balance at end of period	(812		)	(739		)

Realized and unrealized gains (losses) on derivatives
Balance at beginning of period	1			14
Current period changes in fair value (net of tax effect of $1 and $(1))	5			(1		)
Reclassification to income (net of tax effect of $(2) and $(5)) **	(2		)	(6		)
Balance at end of period	4			7

Realized and unrealized gains (losses) on marketable securities
Balance at beginning of period	2			8
Current period changes in fair value (net of tax effect of $0 and $1)	1			(3		)
Reclassification to income (net of tax effect of $(1) and $0) ***	(1		)	—
Balance at end of period	2			5

Pension and postretirement plans
Balance at beginning of period	(2		)	(2		)
Other changes	—			—
Balance at end of period	(2		)	(2		)

Accumulated other comprehensive loss, end of period	$	(808	)	$	(729	)




	Nine Months Ended June 30,
	2018			2017

CTA
Balance at beginning of period	$	(481	)	$	(1,152	)
Aggregate adjustment for the period (net of tax effect of $1 and $0) *	(331		)	(150		)
Adient spin-off impact (net of tax effect of $0)	—			563
Balance at end of period	(812		)	(739		)

Realized and unrealized gains (losses) on derivatives
Balance at beginning of period	6			4
Current period changes in fair value (net of tax effect of $2 and $3)	7			6
Reclassification to income (net of tax effect of $(4) and $(12)) **	(9		)	(19		)
Adient spin-off impact (net of tax effect of $0 and $6)	—			16
Balance at end of period	4			7

Realized and unrealized gains (losses) on marketable securities
Balance at beginning of period	4			(1		)
Current period changes in fair value (net of tax effect of $0 and $1)	(1		)	6
Reclassification to income (net of tax effect of $(1) and $0) ***	(1		)	—
Balance at end of period	2			5

Pension and postretirement plans
Balance at beginning of period	(2		)	(4		)
Adient spin-off impact (net of tax effect of $0)	—			2
Balance at end of period	(2		)	(2		)

Accumulated other comprehensive loss, end of period	$	(808	)	$	(729	)

* During the nine months ended June 30, 2018, $12 million of cumulative CTA was recognized as part of the divestiture-related gain recognized as part of the divestiture of Scott Safety.

** Refer to Note 15, "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 nine months ended June 30, 2018, the Company sold certain marketable common stock for approximately $3 million. As a result, the Company recorded $2 million of realized gains within selling, general and administrative expenses.