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Debt and Financing Arrangements (Notes) | 12 Months Ended
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Sep. 30, 2018
Debt Disclosure [Abstract] |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS Short-term debt consisted of the following (in millions):
| September 30,
| 2018 |  | 2017
Bank borrowings and commercial paper | $ | 1,315 |  |  | $ | 1,214 |
Weighted average interest rate on short-term debt outstanding | 2.8 | % |  | 1.6 | %
In connection with the Tyco Merger, JCI Inc. replaced its $2.5 billion committed five-year credit facility scheduled to mature in August 2018 with a $2.0 billion committed four-year credit facility scheduled to mature in August 2020. Additionally, TSarl, a wholly-owned subsidiary of Johnson Controls, entered into a $1.0 billion committed four-year credit facility scheduled to mature in August 2020. The TSarl facility was increased to $1.25 billion in March 2018. The facilities are used to support the Company's outstanding commercial paper. There were no draws on either committed credit facilities during the fiscal years ended September 30, 2018 and 2017. Commercial paper outstanding as of September 30, 2018 and 2017 was $879 million and $954 million, respectively. In March 2018, the Company entered into a 364-day $250 million committed revolving credit facility scheduled to expire in March 2019. As of September 30, 2018, there were no draws on the facility. In March 2018, a 364-day $150 million committed revolving credit facility expired. The Company entered into a new $150 million committed revolving credit facility scheduled to expire in February 2019. As of September 30, 2018, there were no draws on the facility. In February 2018, a 364-day $150 million committed revolving credit facility expired. The Company entered into a new $150 million committed revolving credit facility scheduled to expire in February 2019. As of September 30, 2018, there were no draws on the facility. In January 2018, a 364-day $250 million committed revolving credit facility expired. The Company entered into a new $200 million committed revolving credit facility scheduled to expire in January 2019. As of September 30, 2018, there were no draws on the facility. In December 2017, the Company repaid a 364-day 150 million euro floating rate term loan, plus accrued interest, scheduled to mature in September 2018. Long-term debt consisted of the following (in millions; due dates by fiscal year):
| September 30,
| 2018 |  | 2017
Unsecured notes |  |  |
JCI plc - 1.4% due in 2018 ($259 million par value) | $ | — |  |  | $ | 259 |
JCI Inc. - 1.4% due in 2018 ($41 million par value) | — |  |  | 42 |
JCI plc - 3.75% due in 2018 ($49 million par value) | — |  |  | 49 |
Tyco International Finance S.A. ("TIFSA") - 3.75% due in 2018 ($18 million par value) | — |  |  | 18 |
JCI plc - 5.00% due in 2020 ($453 million par value) | 452 |  |  | 452 |
JCI Inc. - 5.00% due in 2020 ($47 million par value) | 47 |  |  | 47 |
JCI plc - 0.00% due in 2021 (€750 million par value) | 868 |  |  | — |
JCI plc - 4.25% due in 2021 ($447 million par value) | 446 |  |  | 446 |
JCI Inc. - 4.25% due in 2021 ($53 million par value) | 53 |  |  | 53 |
JCI plc - 3.75% due in 2022 ($428 million par value) | 427 |  |  | 427 |
JCI Inc. - 3.75% due in 2022 ($22 million par value) | 22 |  |  | 22 |
JCI plc - 4.625% due in 2023 ($35 million par value) | 37 |  |  | 38 |
TIFSA - 4.625% due in 2023 ($7 million par value) | 8 |  |  | 8 |
JCI plc - 1.00% due in 2023 (€1,000 million par value) | 1,154 |  |  | 1,171 |
JCI plc - 3.625% due in 2024 ($468 million par value) | 468 |  |  | 468 |
JCI Inc. - 3.625% due in 2024 ($31 million par value) | 31 |  |  | 31 |
JCI plc - 1.375% due in 2025 (€423 million par value) | 501 |  |  | 510 |
TIFSA - 1.375% due in 2025 (€58 million par value) | 69 |  |  | 70 |
JCI plc - 3.90% due in 2026 ($698 million par value) | 755 |  |  | 763 |
TIFSA - 3.90% due in 2026 ($51 million par value) | 52 |  |  | 53 |
JCI plc - 6.00% due in 2036 ($392 million par value) | 388 |  |  | 388 |
JCI Inc. - 6.00% due in 2036 ($8 million par value) | 8 |  |  | 8 |
JCI plc - 5.70% due in 2041 ($270 million par value) | 269 |  |  | 269 |
JCI Inc. - 5.70% due in 2041 ($30 million par value) | 30 |  |  | 30 |
JCI plc - 5.25% due in 2042 ($242 million par value) | 242 |  |  | 242 |
JCI Inc. - 5.25% due in 2042 ($8 million par value) | 8 |  |  | 8 |
JCI plc - 4.625% due in 2044 ($445 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 ($727 million par value) | 867 |  |  | 872 |
TIFSA - 5.125% due in 2045 ($23 million par value) | 23 |  |  | 23 |
JCI plc - 6.95% due in 2046 ($121 million par value) | 121 |  |  | 121 |
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 |  |  | 495 |
JCI plc - 4.95% due in 2064 ($435 million par value) | 434 |  |  | 434 |
JCI Inc. - 4.95% due in 2064 ($15 million par value) | 15 |  |  | 15 |
TSarl - Term Loan A - LIBOR plus 1.25% due in 2020 | 364 |  |  | 3,700 |
TSarl - Term Loan B - €215 million; EURIBOR plus 0.62% due in 2020 | 250 |  |  | — |
JCI plc - Term Loan - 35 billion yen; LIBOR JPY plus 0.40% due in 2022 | 309 |  |  | 311 |
Capital lease obligations | 36 |  |  | 19 |
Other | 23 |  |  | 90 |
Gross long-term debt | 9,724 |  |  | 12,403 |
Less: current portion | 26 |  |  | 394 |
Less: debt issuance costs | 44 |  |  | 45 |
Net long-term debt | $ | 9,654 |  |  | $ | 11,964 |
The installments of long-term debt maturing in subsequent fiscal years are: 2019 - $26 million; 2020 - $1,118 million; 2021 - $1,371 million; 2022 - $772 million; 2023 - $1,201 million; 2024 and thereafter - $5,236 million. 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 the fiscal years ended September 30, 2018, 2017 and 2016 was $415 million, $448 million and $319 million, respectively. The Company used financial instruments to manage its interest rate exposure in fiscal 2016 and the first quarter of 2017 (see Note 10, "Derivative Instruments and Hedging Activities," and Note 11, "Fair Value Measurements," of the notes to consolidated financial statements). These instruments affected the weighted average interest rate of the Company’s debt and interest expense. Financing Arrangements Financing in connection with Tyco Merger and subsequent activities Simultaneously with the closing of the Tyco Merger on September 2, 2016, TSarl borrowed $4.0 billion under the Term Loan Credit Agreement dated as of March 10, 2016 with a syndicate of lenders, providing for a three and a half year senior unsecured term loan facility to finance the cash consideration for, and fees, expenses and costs incurred in connection with the Merger. During fiscal 2017, the Company partially repaid $300 million of the $4.0 billion floating rate term loan scheduled to expire in March 2020. In October 2017, the Company completed the previously announced sale of its Scott Safety business to 3M. Net cash proceeds from the transaction of approximately $1.9 billion were used to repay a significant portion of the TSarl $4.0 billion of merger related debt. In March 2018, the Company repaid $26 million in principal amount, plus accrued interest. In April 2018, the Company refinanced approximately $400 million of the TSarl merger related debt with commercial paper. In July 2018, the Company refinanced approximately $250 million in principal amount of the TSarl merger related debt with a 364-day $250 million floating rate term loan scheduled to mature in July 2019. In September 2018, the Company repaid approximately $450 million in principal amount, plus accrued interest, and refinanced approximately $250 million of the TSarl merger related debt with an 18-month 215 million euro floating rate term loan scheduled to mature in March 2020. Other financing arrangements In January 2018, the Company retired $67 million in principal amount, plus accrued interest, of its 3.75% fixed rate notes that expired in January 2018. In November 2017, the Company issued 750 million euro in principal amount of 0.0% senior unsecured fixed rate notes due in December 2020. Proceeds from the issuance were used to repay existing debt and for other general corporate purposes. In November 2017, the Company retired $300 million in principal amount, plus accrued interest, of its 1.4% fixed rate notes that expired in November 2017. Net Financing Charges The Company's net financing charges line item in the consolidated statements of income for the years ended September 30, 2018, 2017 and 2016 contained the following components (in millions):
| Year Ended September 30,
| 2018 |  | 2017 |  | 2016
Interest expense, net of capitalized interest costs | $ | 437 |  |  | $ | 466 |  |  | $ | 293 |
Banking fees and bond cost amortization | 58 |  |  | 67 |  |  | 30 |
Interest income | (29 | ) |  | (19 | ) |  | (12 | )
Net foreign exchange results for financing activities | (25 | ) |  | (18 | ) |  | (22 | )
Net financing charges | $ | 441 |  |  | $ | 496 |  |  | $ | 289 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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