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

Building Technologies & Solutions

•

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, 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, and included the Scott Safety business, prior to its sale on October 4, 2017.

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.

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, significant restructuring and impairment costs, and the net mark-to-market adjustments related to pension and postretirement plans.

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



	Year Ended September 30,
	2018		2017		2016
Net Sales
Building Technologies & Solutions
Building Solutions North America	$	8,679	$	8,341	$	4,687
Building Solutions EMEA/LA	3,696		3,595		1,613
Building Solutions Asia Pacific	2,553		2,444		1,736
Global Products	8,472		8,455		6,148
	23,400		22,835		14,184
Power Solutions	8,000		7,337		6,653

Total net sales	$	31,400	$	30,172	$	20,837



	Year Ended September 30,
	2018			2017			2016
Segment EBITA
Building Technologies & Solutions
Building Solutions North America (1)	$	1,109		$	1,039		$	494
Building Solutions EMEA/LA (2)	344			290			74
Building Solutions Asia Pacific (3)	347			323			222
Global Products (4)	1,338			1,179			637
	3,138			2,831			1,427
Power Solutions (5)	1,417			1,427			1,327
Total segment EBITA	$	4,555		$	4,258		$	2,754

Amortization of intangible assets	(384		)	(489		)	(116		)
Corporate expenses (6)	(576		)	(768		)	(607		)
Net financing charges	(441		)	(496		)	(289		)
Restructuring and impairment costs	(263		)	(367		)	(288		)
Net mark-to-market adjustments on pension and postretirement plans	10			420			(393		)

Income from continuing operations before income taxes	$	2,901		$	2,558		$	1,061



	September 30,
	2018		2017		2016
Assets
Building Technologies & Solutions (7)
Building Solutions North America (8)	$	15,384	$	15,228	$	15,554
Building Solutions EMEA/LA (9)	4,997		4,885		4,649
Building Solutions Asia Pacific (10)	2,743		2,575		2,521
Global Products (11)	14,261		14,018		15,782
	37,385		36,706		38,506
Power Solutions (12)	7,996		7,894		6,793
Assets held for sale	—		2,109		13,186
Unallocated	3,416		5,175		4,694

Total	$	48,797	$	51,884	$	63,179



	Year Ended September 30,
	2018		2017		2016
Depreciation/Amortization
Building Technologies & Solutions
Building Solutions North America	$	236	$	272	$	49
Building Solutions EMEA/LA	110		140		14
Building Solutions Asia Pacific	28		37		11
Global Products	390		410		230
	764		859		304
Power Solutions	256		236		238
Corporate	65		64		80
Discontinued Operations	—		29		331

Total	$	1,085	$	1,188	$	953



	Year Ended September 30,
	2018		2017		2016
Capital Expenditures
Building Technologies & Solutions
Building Solutions North America	$	114	$	107	$	16
Building Solutions EMEA/LA	73		98		19
Building Solutions Asia Pacific	26		27		7
Global Products	307		421		304
	520		653		346
Automotive Experience
Seating	—		62		392
Interiors	—		1		3
	—		63		395
Power Solutions	372		481		357
Corporate	138		146		151

Total	$	1,030	$	1,343	$	1,249


(1)	Building Solutions North America segment EBITA for the year ended September 30, 2018 and 2017 excludes $20 million and $59 million, respectively, of restructuring and impairment costs.


(2)	Building Solutions EMEA/LA segment EBITA for the years ended September 30, 2018, 2017 and 2016 excludes $56 million, $74 million and $17 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2018, 2017 and 2016, EMEA/LA segment EBITA includes $1 million, $5 million and $11 million, respectively, of equity income.


(3)	Building Solutions Asia Pacific segment EBITA for the year ended September 30, 2018 and 2017 excludes $16 million and $16 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2018, 2017 and 2016, Asia Pacific segment EBITA includes $1 million, $1 million and $1 million, respectively, of equity income.


(4)	Global Products segment EBITA for the years ended September 30, 2018, 2017 and 2016 excludes $113 million, $32 million and $44 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2018, 2017 and 2016, Global Products segment EBITA includes $175 million, $151 million and $114 million, respectively, of equity income.


(5)	Power Solutions segment EBITA for the years ended September 30, 2018, 2017 and 2016 excludes $8 million, $20 million and $66 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2018, 2017 and 2016, Power Solutions segment EBITA includes $58 million, $83 million and $48 million, respectively, of equity income.


(6)	Corporate expenses for the years ended September 30, 2018, 2017 and 2016 excludes $50 million, $166 million and $161 million, respectively, of restructuring and impairment costs.


(7)	Prior year amounts exclude assets held for sale. Refer to Note 4, "Discontinued Operations," of the notes to consolidated financial statements for further information regarding the Company's disposal groups classified as held for sale.


(8)	Buildings Solutions North America assets as of September 2018, 2017 and 2016, include $8 million, $8 million and $7 million, respectively, of investments in partially-owned affiliates.


(9)	Building Solutions EMEA/LA assets as of September 30, 2018, 2017 and 2016, include $99 million, $107 million and $103 million, respectively, of investments in partially-owned affiliates.


(10)	Building Solutions Asia Pacific assets as of September 30, 2018 include $1 million of investments in partially-owned affiliates.


(11)	Global Products assets as of September 30, 2018, 2017 and 2016, include $740 million, $629 million and $513 million, respectively, of investments in partially-owned affiliates.


(12)	Power Solutions assets as of September 30, 2018, 2017 and 2016, include $453 million, $447 million and $367 million, respectively, of investments in partially-owned affiliates.

In fiscal years 2018, 2017 and 2016, 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,
	2018		2017		2016
Net Sales
United States	$	14,625	$	14,495	$	9,633
China	2,166		2,046		1,620
Japan	1,903		1,816		1,805
Germany	1,961		1,779		1,430
United Kingdom	1,139		928		291
Mexico	909		840		639
Other foreign	5,692		5,408		3,602
Other European countries	3,005		2,860		1,817

Total	$	31,400	$	30,172	$	20,837

Long-Lived Assets (Year-end)
United States	$	3,216	$	3,155	$	2,880
China	766		535		484
Japan	209		180		188
Germany	275		290		287
United Kingdom	73		109		103
Mexico	531		489		457
Other foreign	659		821		785
Other European countries	442		542		448

Total	$	6,171	$	6,121	$	5,632

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.