XML 26 R27.htm IDEA: XBRL DOCUMENT v3.20.1
Segment Information
6 Months Ended
Mar. 31, 2020
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Segment Information
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
four reportable segments for financial reporting purposes.

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.

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

Financial information relating to the Company’s reportable segments is as follows (in millions):
 
Net Sales
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
Building Solutions North America
$
2,175

 
$
2,187

 
$
4,342

 
$
4,303

Building Solutions EMEA/LA
850

 
878

 
1,778

 
1,785

Building Solutions Asia Pacific
525

 
628

 
1,154

 
1,241

Global Products
1,894

 
2,086

 
3,746

 
3,914

   Total net sales
$
5,444

 
$
5,779

 
$
11,020

 
$
11,243

 
Segment EBITA
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
Building Solutions North America
$
251

 
$
257

 
$
509

 
$
507

Building Solutions EMEA/LA
85

 
80

 
175

 
157

Building Solutions Asia Pacific
65

 
76

 
137

 
142

Global Products
216

 
251

 
419

 
441

      Total segment EBITA
$
617

 
$
664

 
$
1,240

 
$
1,247

 
 
 
 
 
 
 
 
Corporate expenses
$
(118
)
 
$
(167
)
 
$
(236
)
 
$
(303
)
Amortization of intangible assets
(97
)
 
(98
)
 
(193
)
 
(195
)
Restructuring and impairment costs
(62
)
 

 
(173
)
 

Net mark-to-market adjustments
(32
)
 
20

 
(22
)
 
(1
)
Net financing charges
(59
)
 
(98
)
 
(111
)
 
(183
)
Income from continuing operations
   before income taxes
$
249

 
$
321

 
$
505

 
$
565