Debt and Financing Arrangements (Notes)

12 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

DEBT AND FINANCING ARRANGEMENTS

DEBT AND FINANCING ARRANGEMENTS

Short-term debt consisted of the following (in millions):

	September 30,
	2021			2020
Bank borrowings	$	8		$	31
Weighted average interest rate on short-term debt outstanding	0.2		%	3.4		%

The Company had no commercial paper outstanding as of September 30, 2021 and 2020.

As of September 30, 2021, the Company has a syndicated $2.5 billion committed revolving credit facility, which is scheduled to expire in December 2024, and a syndicated $500 million committed revolving credit facility, which is scheduled to expire in December 2021. As of September 30, 2021, there were no draws on the facilities.

Long-term debt consisted of the following (in millions; due dates by fiscal year):

	September 30,
	2021		2020
Unsecured notes
JCI plc - 4.25% due in 2021 ($204 million par value)	$	—	$	204
JCI Inc. - 4.25% due in 2021 ($53 million par value)	—		53
JCI plc - 3.75% due in 2022 ($171 million par value)	—		171
JCI Inc. - 3.75% due in 2022 ($22 million par value)	—		22
JCI plc - 4.625% due in 2023 ($25 million par value)	25		26
Tyco International Finance S.A. ("TIFSA") - 4.625% due in 2023 ($7 million par value)	7		7
JCI plc - 1.00% due in 2023 (€846 million par value)	980		1,039
JCI plc - 3.625% due in 2024 ($453 million par value)	453		453
JCI Inc. - 3.625% due in 2024 ($31 million par value)	31		31
JCI plc - 1.375% due in 2025 (€423 million par value)	496		503
TIFSA - 1.375% due in 2025 (€54 million par value)	63		64
JCI plc - 3.90% due in 2026 ($487 million par value)	510		516
TIFSA - 3.90% due in 2026 ($51 million par value)	51		51
JCI plc and Tyco Fire & Security Finance S.C.A. ("TFSCA") - 0.375% due in 2027 (€500 million par value)	577		583
JCI plc and TFSCA - 1.75% due in 2030 ($625 million par value)	623		623
JCI plc and TFSCA - 2.00% due in 2031 ($500 million par value)	496		—
JCI plc and TFSCA - 1.00% due in 2032 (€500 million par value)	578		584
JCI plc - 6.00% due in 2036 ($342 million par value)	339		339
JCI Inc. - 6.00% due in 2036 ($8 million par value)	8		8
JCI plc - 5.70% due in 2041 ($190 million par value)	189		189
JCI Inc. - 5.70% due in 2041 ($30 million par value)	30		30
JCI plc - 5.25% due in 2042 ($155 million par value)	155		155
JCI Inc. - 5.25% due in 2042 ($6 million par value)	6		6
JCI plc - 4.625% due in 2044 ($444 million par value)	441		441
JCI Inc. - 4.625% due in 2044 ($6 million par value)	6		6
JCI plc - 5.125% due in 2045 ($477 million par value)	560		564
TIFSA - 5.125% due in 2045 ($23 million par value)	22		22
JCI plc - 6.95% due in 2046 ($32 million par value)	32		32
JCI Inc. - 6.95% due in 2046 ($4 million par value)	4		4
JCI plc - 4.50% due in 2047 ($500 million par value)	496		496
JCI plc - 4.95% due in 2064 ($341 million par value)	340		340
JCI Inc. - 4.95% due in 2064 ($15 million par value)	15		15
JCI plc - Term Loan - ¥25 billion; LIBOR JPY plus 0.40% due in 2022	223		237
Other	8		8
Gross long-term debt	7,764		7,822
Less: current portion	226		262
Less: debt issuance costs	32		34
Net long-term debt	$	7,506	$	7,526

The following table presents maturities of long-term debt as of September 30, 2021 (in millions):

2022	$	226
2023	1,012
2024	484
2025	559
2026	561
After 2026	4,922
Total	$	7,764

The Company’s long-term debt includes various financial covenants, none of which are expected to restrict future operations.

Total interest paid on both short and long-term debt for continuing operations for the fiscal years ended September 30, 2021, 2020 and 2019 was $242 million, $247 million and $369 million, respectively.

Financing Arrangements

In September 2021, the Company and its wholly owned subsidiary, TFSCA issued $500 million of sustainability-linked bonds with an initial interest rate of 2.0%, which are due in 2031. Beginning in March 2026, the interest rate payable on the note will be increased by an additional 12.5 basis points per annum if the Scope 1 and Scope 2 emissions sustainability performance target is not met and an additional 12.5 basis points per annum if the Scope 3 emissions sustainability performance target is not met. The proceeds were used for general corporate purposes, including the repayment of near-term indebtedness.

In September 2021, the Company repaid $193 million of 3.75% notes which were due in December 2021, and a €200 million bank term loan which was issued in March 2021 and due in March 2022.

The Company repaid $257 million in principal amount, plus accrued interest, of 4.25% fixed rate notes when they expired in March 2021.

Additionally, during fiscal year 2021, the Company repaid €43 million in principal amount, plus accrued interest, of 1.0% fixed rate notes which were due in September 2023.

Net Financing Charges

The Company's net financing charges line item in the consolidated statements of income for the years ended September 30, 2021, 2020 and 2019 contained the following components (in millions):

	Year Ended September 30,
	2021		2020		2019
Interest expense, net of capitalized interest costs	$	219	$	240	$	335
Banking and other fees and amortization of bond costs, premiums and discounts	25		26		28
Loss on debt extinguishment	—		—		60
Interest income	(9)		(23)		(61)
Net foreign exchange results for financing activities	(29)		(12)		(12)
Net financing charges	$	206	$	231	$	350