EX-99.1 2 exh991-discopsq4fy18.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1
Unaudited Supplemental Non-GAAP Information

On November 13, 2018, Johnson Controls International plc (the “Company”) announced that it had entered into a definitive agreement for the sale of its Power Solutions business (the “Disposition”) with BCP Acquisitions LLC, a Delaware limited liability company. In connection with this announcement, the Company is providing unaudited supplemental non-GAAP selected historical information for the fiscal years ended as of September 30, 2017 and 2018 as well as for each quarterly period of fiscal 2018 (the “Supplemental Non-GAAP Information”), which reflects the continuing operations of the Company as if the Power Solutions business was reported as a discontinued operation as of October 1, 2016.

The unaudited Supplemental Non-GAAP Information provided herein is for informational purposes only. It does not purport to indicate the results that would actually have been obtained had the Disposition been completed on the assumed date or for the periods presented, or which may be realized in the future.

The unaudited Supplemental Non-GAAP Information includes financial information regarding adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margin which are non-GAAP performance measures. Adjusted segment EBITA excludes special items such as transaction/integration costs and nonrecurring purchase accounting impacts because these costs are not considered to be directly related to the underlying operating performance of its business units. Management believes that, when considered together with unadjusted amounts, these non-GAAP measures are useful to investors in understanding period-over-period operating results and business trends of the Company. Further information regarding the adjustments is set forth in the footnote disclosures to the Supplemental Non-GAAP Information. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes. These metrics should be considered in addition to, and not as replacements for, the most comparable GAAP measure.

The Company evaluates the performance of its business units 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.

The unaudited Supplemental Non-GAAP Information reflects an income tax rate of 12.5% and 14.5% for fiscal years 2018 and 2017, respectively, which is representative of an estimated annual effective tax rate for the Company on a non-GAAP continuing operations basis for the historical periods. Diluted shares utilized to calculate a diluted EPS is based on the actual diluted weighted average shares outstanding reported for the period.

 
Johnson Controls International plc
Unaudited Supplemental Non-GAAP Information
Adjusted Continuing Operations
(in millions, except EPS)
 
First Quarter 2018
 
Second Quarter 2018
 
Third Quarter 2018
 
Fourth Quarter 2018
 
Fiscal Year 2018
 
Fiscal Year 2017
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
 
 
 
Building Solutions North America
$
2,012

 
$
2,097

 
$
2,246

 
$
2,324

 
$
8,679

 
$
8,316

Building Solutions EMEA/LA
915

 
907

 
926

 
948

 
3,696

 
3,579

Building Solutions Asia Pacific
597

 
586

 
681

 
689

 
2,553

 
2,445

Global Products
1,781

 
2,040

 
2,429

 
2,222

 
8,472

 
8,461

               Net sales
$
5,305

 
$
5,630

 
$
6,282

 
$
6,183

 
$
23,400

 
$
22,801

 
 
 
 
 
 
 
 
 
 
 
 
Segment EBITA
 
 
 
 
 
 
 
 
 
 
 
Building Solutions North America
$
236

 
$
244

 
$
318

 
$
336

 
$
1,134

 
$
1,070

Building Solutions EMEA/LA
71

 
78

 
98

 
103

 
350

 
328

Building Solutions Asia Pacific
74

 
71

 
97

 
105

 
347

 
332

Global Products
178

 
237

 
441

 
395

 
1,251

 
1,288

               Segment EBITA
559

 
630

 
954

 
939

 
3,082

 
3,018

 
 
 
 
 
 
 
 
 
 
 
 
Corporate expenses
(105
)
 
(113
)
 
(103
)
 
(95
)
 
(416
)
 
(467
)
Amortization of intangible assets
(92
)
 
(92
)
 
(98
)
 
(94
)
 
(376
)
 
(374
)
               EBIT
362

 
425

 
753

 
750

 
2,290

 
2,177

               EBIT margin
6.8
%
 
7.5
%
 
12.0
%
 
12.1
%
 
9.8
%
 
9.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Net financing charges
(102
)
 
(107
)
 
(95
)
 
(97
)
 
(401
)
 
(449
)
Income from continuing operations before
  income taxes
260

 
318

 
658

 
653

 
1,889

 
1,728

Income tax provision
(32
)
 
(40
)
 
(82
)
 
(82
)
 
(236
)
 
(251
)
Income tax rate
12.5
%
 
12.5
%
 
12.5
%
 
12.5
%
 
12.5
%
 
14.5
%
Income from continuing operations
228

 
278

 
576

 
571

 
1,653

 
1,477

Income from continuing operations
  attributable to noncontrolling interests
(28
)
 
(34
)
 
(72
)
 
(40
)
 
(174
)
 
(153
)
Net income from continuing operations
  attributable to JCI
$
200

 
$
244

 
$
504

 
$
531

 
$
1,479

 
$
1,324

 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares
933.3

 
932.5

 
930.7

 
930.5

 
931.7

 
944.6

Diluted EPS
$
0.21

 
$
0.26

 
$
0.54

 
$
0.57

 
$
1.59

 
$
1.40



Footnote Disclosures

 
Three Months Ended December 31, 2017
(in millions; unaudited)
Actual
 
Adjusted Non-GAAP
 
Less: Discontinued Operations
 
Continuing
Operations
 
 
 
 
 
 
 
 
Net sales (1)
 
 
 
 
 
 
 
Building Solutions North America
$
2,012

 
$
2,012

 
$
—

 
$
2,012

Building Solutions EMEA/LA
915

 
915

 
—

 
915

Building Solutions Asia Pacific
597

 
597

 
—

 
597

Global Products
1,781

 
1,781

 
—

 
1,781

Total Building Technologies & Solutions
5,305

 
5,305

 
—

 
5,305

Power Solutions
2,130

 
2,130

 
(2,130
)
 
—

               Net sales
$
7,435

 
$
7,435

 
$
(2,130
)
 
$
5,305

 
 
 
 
 
 
 
 
Segment EBITA (1)
 
 
 
 
 
 
 
Building Solutions North America
$
227

 
$
236

 
$
—

 
$
236

Building Solutions EMEA/LA
69

 
71

 
—

 
71

Building Solutions Asia Pacific
74

 
74

 
—

 
74

Global Products
286

 
178

 
—

 
178

Total Building Technologies & Solutions
656

 
559

 
—

 
559

Power Solutions
384

 
384

 
(384
)
 
—

               Segment EBITA
1,040

 
943

 
(384
)
 
559

 
 
 
 
 
 
 
 
Corporate expenses (2)
(134
)
 
(101
)
 
(4
)
 
(105
)
Amortization of intangible assets
(94
)
 
(94
)
 
2

 
(92
)
Mark-to-market gain for pension/postretirement plans
—

 
—

 
—

 
—

Restructuring and impairment costs (5)
(158
)
 
—

 
—

 
—

               EBIT (6)
654

 
748

 
(386
)
 
362

               EBIT margin
8.8
%
 
10.1
%
 
18.1
%
 
6.8
%
 
 
 
 
 
 
 
 
Net financing charges
(116
)
 
(116
)
 
14

 
(102
)
Income from continuing operations before income taxes
$
538

 
$
632

 
$
(372
)
 
$
260

 
 
 
 
 
 
 
 
Income from continuing operations attributable to
     noncontrolling interests
$
(41
)
 
$
(41
)
 
$
13

 
$
(28
)


 
Three Months Ended March 31, 2018
(in millions; unaudited)
Actual
 
Adjusted Non-GAAP
 
Less: Discontinued Operations
 
Continuing
Operations
 
 
 
 
 
 
 
 
Net sales (1)
 
 
 
 
 
 
 
Building Solutions North America
$
2,097

 
$
2,097

 
$
—

 
$
2,097

Building Solutions EMEA/LA
907

 
907

 
—

 
907

Building Solutions Asia Pacific
586

 
586

 
—

 
586

Global Products
2,040

 
2,040

 
—

 
2,040

Total Building Technologies & Solutions
5,630

 
5,630

 
—

 
5,630

Power Solutions
1,845

 
1,845

 
(1,845
)
 
—

               Net sales
$
7,475

 
$
7,475

 
$
(1,845
)
 
$
5,630

 
 
 
 
 
 
 
 
Segment EBITA (1)
 
 
 
 
 
 
 
Building Solutions North America
$
239

 
$
244

 
$
—

 
$
244

Building Solutions EMEA/LA
77

 
78

 
—

 
78

Building Solutions Asia Pacific
71

 
71

 
—

 
71

Global Products
228

 
237

 
—

 
237

Total Building Technologies & Solutions
615

 
630

 
—

 
630

Power Solutions
314

 
314

 
(314
)
 
—

               Segment EBITA
929

 
944

 
(314
)
 
630

 
 
 
 
 
 
 
 
Corporate expenses (2)
(159
)
 
(110
)
 
(3
)
 
(113
)
Amortization of intangible assets
(94
)
 
(94
)
 
2

 
(92
)
Mark-to-market gain for pension/postretirement plans
—

 
—

 
—

 
—

Restructuring and impairment costs
—

 
—

 
—

 
—

               EBIT (6)
676

 
740

 
(315
)
 
425

               EBIT margin
9.0
%
 
9.9
%
 
17.1
%
 
7.5
%
 
 
 
 
 
 
 
 
Net financing charges
(115
)
 
(115
)
 
8

 
(107
)
Income from continuing operations before income taxes
$
561

 
$
625

 
$
(307
)
 
$
318

 
 
 
 
 
 
 
 
Income from continuing operations attributable to
     noncontrolling interests
$
(45
)
 
$
(45
)
 
$
11

 
$
(34
)


 
Three Months Ended June 30, 2018
(in millions; unaudited)
Actual
 
Adjusted Non-GAAP
 
Less: Discontinued Operations
 
Continuing
Operations
 
 
 
 
 
 
 
 
Net sales (1)
 
 
 
 
 
 
 
Building Solutions North America
$
2,246

 
$
2,246

 
$
—

 
$
2,246

Building Solutions EMEA/LA
926

 
926

 
—

 
926

Building Solutions Asia Pacific
681

 
681

 
—

 
681

Global Products
2,429

 
2,429

 
—

 
2,429

Total Building Technologies & Solutions
6,282

 
6,282

 
—

 
6,282

Power Solutions
1,838

 
1,838

 
(1,838
)
 
—

               Net sales
$
8,120

 
$
8,120

 
$
(1,838
)
 
$
6,282

 
 
 
 
 
 
 
 
Segment EBITA (1)
 
 
 
 
 
 
 
Building Solutions North America
$
314

 
$
318

 
$
—

 
$
318

Building Solutions EMEA/LA
96

 
98

 
—

 
98

Building Solutions Asia Pacific
97

 
97

 
—

 
97

Global Products
435

 
441

 
—

 
441

Total Building Technologies & Solutions
942

 
954

 
—

 
954

Power Solutions
310

 
310

 
(310
)
 
—

               Segment EBITA
1,252

 
1,264

 
(310
)
 
954

 
 
 
 
 
 
 
 
Corporate expenses (2)
(141
)
 
(102
)
 
(1
)
 
(103
)
Amortization of intangible assets
(100
)
 
(100
)
 
2

 
(98
)
Mark-to-market gain for pension/postretirement plans
—

 
—

 
 
 
—

Restructuring and impairment costs
—

 
—

 
 
 
—

               EBIT (6)
1,011

 
1,062

 
(309
)
 
753

               EBIT margin
12.5
%
 
13.1
%
 
16.8
%
 
12.0
%
 
 
 
 
 
 
 
 
Net financing charges
(101
)
 
(101
)
 
6

 
(95
)
Income from continuing operations before income taxes
$
910

 
$
961

 
$
(303
)
 
$
658

 
 
 
 
 
 
 
 
Income from continuing operations attributable to
     noncontrolling interests
$
(81
)
 
$
(81
)
 
$
9

 
$
(72
)



 
Three Months Ended September 30, 2018
(in millions; unaudited)
Actual
 
Adjusted Non-GAAP
 
Less: Discontinued Operations
 
Continuing
Operations
 
 
 
 
 
 
 
 
Net sales (1)
 
 
 
 
 
 
 
Building Solutions North America
$
2,324

 
$
2,324

 
$
—

 
$
2,324

Building Solutions EMEA/LA
948

 
948

 
—

 
948

Building Solutions Asia Pacific
689

 
689

 
—

 
689

Global Products
2,222

 
2,222

 
—

 
2,222

Total Building Technologies & Solutions
6,183

 
6,183

 
—

 
6,183

Power Solutions
2,187

 
2,187

 
(2,187
)
 
—

               Net sales
$
8,370

 
$
8,370

 
$
(2,187
)
 
$
6,183

 
 
 
 
 
 
 
 
Segment EBITA (1)
 
 
 
 
 
 
 
Building Solutions North America
$
329

 
$
336

 
$
—

 
$
336

Building Solutions EMEA/LA
102

 
103

 
—

 
103

Building Solutions Asia Pacific
105

 
105

 
—

 
105

Global Products
389

 
395

 
—

 
395

Total Building Technologies & Solutions
925

 
939

 
—

 
939

Power Solutions
409

 
424

 
(424
)
 
—

               Segment EBITA
1,334

 
1,363

 
(424
)
 
939

 
 
 
 
 
 
 
 
Corporate expenses (2)
(142
)
 
(95
)
 
—

 
(95
)
Amortization of intangible assets
(96
)
 
(96
)
 
2

 
(94
)
Mark-to-market gain for pension/postretirement plans (4)
10

 
—

 
—

 
—

Restructuring and impairment costs (5)
(105
)
 
—

 
—

 
—

               EBIT (6)
1,001

 
1,172

 
(422
)
 
750

               EBIT margin
12.0
%
 
14.0
%
 
19.3
%
 
12.1
%
 
 
 
 
 
 
 
 
Net financing charges
(109
)
 
(109
)
 
12

 
(97
)
Income from continuing operations before income taxes
$
892

 
$
1,063

 
$
(410
)
 
$
653

 
 
 
 
 
 
 
 
Income from continuing operations attributable to
     noncontrolling interests
$
(54
)
 
$
(54
)
 
$
14

 
$
(40
)


 
Twelve Months Ended September 30, 2018
(in millions; unaudited)
Actual
 
Adjusted Non-GAAP
 
Less: Discontinued Operations
 
Continuing
Operations
 
 
 
 
 
 
 
 
Net sales (1)
 
 
 
 
 
 
 
Building Solutions North America
$
8,679

 
$
8,679

 
$
—

 
$
8,679

Building Solutions EMEA/LA
3,696

 
3,696

 
—

 
3,696

Building Solutions Asia Pacific
2,553

 
2,553

 
—

 
2,553

Global Products
8,472

 
8,472

 
—

 
8,472

Total Building Technologies & Solutions
23,400

 
23,400

 
—

 
23,400

Power Solutions
8,000

 
8,000

 
(8,000
)
 
—

               Net sales
$
31,400

 
$
31,400

 
$
(8,000
)
 
$
23,400

 
 
 
 
 
 
 
 
Segment EBITA (1)
 
 
 
 
 
 
 
Building Solutions North America
$
1,109

 
$
1,134

 
$
—

 
$
1,134

Building Solutions EMEA/LA
344

 
350

 
—

 
350

Building Solutions Asia Pacific
347

 
347

 
—

 
347

Global Products
1,338

 
1,251

 
—

 
1,251

Total Building Technologies & Solutions
3,138

 
3,082

 
—

 
3,082

Power Solutions
1,417

 
1,432

 
(1,432
)
 
—

               Segment EBITA
4,555

 
4,514

 
(1,432
)
 
3,082

 
 
 
 
 
 
 
 
Corporate expenses (2)
(576
)
 
(408
)
 
(8
)
 
(416
)
Amortization of intangible assets
(384
)
 
(384
)
 
8

 
(376
)
Mark-to-market gain for pension/postretirement plans (4)
10

 
—

 
—

 
—

Restructuring and impairment costs (5)
(263
)
 
—

 
—

 
—

               EBIT (6)
3,342

 
3,722

 
(1,432
)
 
2,290

               EBIT margin
10.6
%
 
11.9
%
 
17.9
%
 
9.8
%
 
 
 
 
 
 
 
 
Net financing charges
(441
)
 
(441
)
 
40

 
(401
)
Income from continuing operations before income taxes
$
2,901

 
$
3,281

 
$
(1,392
)
 
$
1,889

 
 
 
 
 
 
 
 
Income from continuing operations attributable to
     noncontrolling interests
$
(221
)
 
$
(221
)
 
$
47

 
$
(174
)



 
Twelve Months Ended September 30, 2017
(in millions; unaudited)
Actual
 
Adjusted Non-GAAP
 
Less: Discontinued Operations
 
Continuing
Operations
 
 
 
 
 
 
 
 
Net sales (1)
 
 
 
 
 
 
 
Building Solutions North America
$
8,341

 
$
8,316

 
$
—

 
$
8,316

Building Solutions EMEA/LA
3,595

 
3,579

 
—

 
3,579

Building Solutions Asia Pacific
2,444

 
2,445

 
—

 
2,445

Global Products
8,455

 
8,461

 
—

 
8,461

Total Building Technologies & Solutions
22,835

 
22,801

 
—

 
22,801

Power Solutions
7,337

 
7,337

 
(7,337
)
 
—

               Net sales
$
30,172

 
$
30,138

 
$
(7,337
)
 
$
22,801

 
 
 
 
 
 
 
 
Segment EBITA (1)
 
 
 
 
 
 
 
Building Solutions North America
$
1,039

 
$
1,070

 
$
—

 
$
1,070

Building Solutions EMEA/LA
290

 
328

 
—

 
328

Building Solutions Asia Pacific
323

 
332

 
—

 
332

Global Products
1,179

 
1,288

 
—

 
1,288

Total Building Technologies & Solutions
2,831

 
3,018

 
—

 
3,018

Power Solutions
1,427

 
1,428

 
(1,428
)
 
—

               Segment EBITA
4,258

 
4,446

 
(1,428
)
 
3,018

 
 
 
 
 
 
 
 
Corporate expenses (2)
(768
)
 
(465
)
 
(2
)
 
(467
)
Amortization of intangible assets (3)
(489
)
 
(382
)
 
8

 
(374
)
Mark-to-market gain for pension/postretirement plans (4)
420

 
—

 
—

 
—

Restructuring and impairment costs (5)
(367
)
 
—

 
—

 
—

               EBIT (6)
3,054

 
3,599

 
(1,422
)
 
2,177

               EBIT margin
10.1
%
 
11.9
%
 
19.4
%
 
9.5
%
 
 
 
 
 
 
 
 
Net financing charges (7)
(496
)
 
(479
)
 
30

 
(449
)
Income from continuing operations before income taxes
$
2,558

 
$
3,120

 
$
(1,392
)
 
$
1,728

 
 
 
 
 
 
 
 
Income from continuing operations attributable to
     noncontrolling interests (8)
$
(199
)
 
$
(193
)
 
$
40

 
$
(153
)





(1) The Company's financial information regarding adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margins are non-GAAP performance measures. The Company's definition of adjusted segment EBITA excludes special items because these costs are not considered to be directly related to the underlying operating performance of its business units. Management believes these non-GAAP measures are useful to investors in understanding the ongoing operations and business trends of the Company.

The following are the reconciliations of net sales, segment EBITA and segment EBITA margin as reported to adjusted net sales, adjusted segment EBITA and adjusted segment EBITA margin (in millions; unaudited):

 
Three Months Ended December 31, 2017
 
Building Solutions
North America
 
Building Solutions EMEA/LA
 
Building Solutions
Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
Power Solutions
 
Consolidated JCI plc
Net sales as reported
$
2,012

 
$
915

 
$
597

 
$
1,781

 
$
5,305

 
$
2,130

 
$
7,435

Adjusted net sales
$
2,012

 
$
915

 
$
597

 
$
1,781

 
$
5,305

 
$
2,130

 
$
7,435

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
227

 
$
69

 
$
74

 
$
286

 
$
656

 
$
384

 
$
1,040

Segment EBITA margin as reported
11.3
%
 
7.5
%
 
12.4
%
 
16.1
%
 
12.4
%
 
18.0
%
 
14.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Integration costs
9

 
2

 
—

 
6

 
17

 
—

 
17

  Scott Safety gain on sale
—

 
—

 
—

 
(114
)
 
(114
)
 
—

 
(114
)
Adjusted segment EBITA
$
236

 
$
71

 
$
74

 
$
178

 
$
559

 
$
384

 
$
943

Adjusted segment EBITA margin
11.7
%
 
7.8
%
 
12.4
%
 
10.0
%
 
10.5
%
 
18.0
%
 
12.7
%

 
Three Months Ended March 31, 2018
 
Building Solutions
North America
 
Building Solutions EMEA/LA
 
Building Solutions
Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
Power Solutions
 
Consolidated JCI plc
Net sales as reported
$
2,097

 
$
907

 
$
586

 
$
2,040

 
$
5,630

 
$
1,845

 
$
7,475

Adjusted net sales
$
2,097

 
$
907

 
$
586

 
$
2,040

 
$
5,630

 
$
1,845

 
$
7,475

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
239

 
$
77

 
$
71

 
$
228

 
$
615

 
$
314

 
$
929

Segment EBITA margin as reported
11.4
%
 
8.5
%
 
12.1
%
 
11.2
%
 
10.9
%
 
17.0
%
 
12.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Integration costs
5

 
1

 
—

 
9

 
15

 
—

 
15

Adjusted segment EBITA
$
244

 
$
78

 
$
71

 
$
237

 
$
630

 
$
314

 
$
944

Adjusted segment EBITA margin
11.6
%
 
8.6
%
 
12.1
%
 
11.6
%
 
11.2
%
 
17.0
%
 
12.6
%

 
Three Months Ended June 30, 2018
 
Building Solutions
North America
 
Building Solutions EMEA/LA
 
Building Solutions
Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
Power Solutions
 
Consolidated JCI plc
Net sales as reported
$
2,246

 
$
926

 
$
681

 
$
2,429

 
$
6,282

 
$
1,838

 
$
8,120

Adjusted net sales
$
2,246

 
$
926

 
$
681

 
$
2,429

 
$
6,282

 
$
1,838

 
$
8,120

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
314

 
$
96

 
$
97

 
$
435

 
$
942

 
$
310

 
$
1,252

Segment EBITA margin as reported
14.0
%
 
10.4
%
 
14.2
%
 
17.9
%
 
15.0
%
 
16.9
%
 
15.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Integration costs
4

 
2

 
—

 
6

 
12

 
—

 
12

Adjusted segment EBITA
$
318

 
$
98

 
$
97

 
$
441

 
$
954

 
$
310

 
$
1,264

Adjusted segment EBITA margin
14.2
%
 
10.6
%
 
14.2
%
 
18.2
%
 
15.2
%
 
16.9
%
 
15.6
%

 
Three Months Ended September 30, 2018
 
Building Solutions
North America
 
Building Solutions EMEA/LA
 
Building Solutions
Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
Power Solutions
 
Consolidated JCI plc
Net sales as reported
$
2,324

 
$
948

 
$
689

 
$
2,222

 
$
6,183

 
$
2,187

 
$
8,370

Adjusted net sales
$
2,324

 
$
948

 
$
689

 
$
2,222

 
$
6,183

 
$
2,187

 
$
8,370

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
329

 
$
102

 
$
105

 
$
389

 
$
925

 
$
409

 
$
1,334

Segment EBITA margin as reported
14.2
%
 
10.8
%
 
15.2
%
 
17.5
%
 
15.0
%
 
18.7
%
 
15.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Transaction costs
—

 
—

 
—

 
—

 
—

 
8

 
8

  Integration costs
7

 
1

 
—

 
6

 
14

 
—

 
14

  Restructuring costs and discontinued
    operations losses in equity income
—

 
—

 
—

 
—

 
—

 
7

 
7

Adjusted segment EBITA
$
336

 
$
103

 
$
105

 
$
395

 
$
939

 
$
424

 
$
1,363

Adjusted segment EBITA margin
14.5
%
 
10.9
%
 
15.2
%
 
17.8
%
 
15.2
%
 
19.4
%
 
16.3
%

 
Fiscal Year Ended September 30, 2018
 
Building Solutions
North America
 
Building Solutions EMEA/LA
 
Building Solutions
Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
Power Solutions
 
Consolidated JCI plc
Net sales as reported
$
8,679

 
$
3,696

 
$
2,553

 
$
8,472

 
$
23,400

 
$
8,000

 
$
31,400

Adjusted net sales
$
8,679

 
$
3,696

 
$
2,553

 
$
8,472

 
$
23,400

 
$
8,000

 
$
31,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
1,109

 
$
344

 
$
347

 
$
1,338

 
$
3,138

 
$
1,417

 
$
4,555

Segment EBITA margin as reported
12.8
%
 
9.3
%
 
13.6
%
 
15.8
%
 
13.4
%
 
17.7
%
 
14.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Transaction costs
—

 
—

 
—

 
—

 
—

 
8

 
8

  Integration costs
25

 
6

 
—

 
27

 
58

 
—

 
58

  Scott Safety gain on sale
—

 
—

 
—

 
(114
)
 
(114
)
 
—

 
(114
)
  Restructuring costs and discontinued
    operations losses in equity income
—

 
—

 
—

 
—

 
—

 
7

 
7

Adjusted segment EBITA
$
1,134

 
$
350

 
$
347

 
$
1,251

 
$
3,082

 
$
1,432

 
$
4,514

Adjusted segment EBITA margin
13.1
%
 
9.5
%
 
13.6
%
 
14.8
%
 
13.2
%
 
17.9
%
 
14.4
%
 
Fiscal Year Ended September 30, 2017
 
Building Solutions
North America
 
Building Solutions EMEA/LA
 
Building Solutions
Asia Pacific
 
Global Products
 
Total Building Technologies & Solutions
 
Power Solutions
 
Consolidated JCI plc
Net sales as reported
$
8,341

 
$
3,595

 
$
2,444

 
$
8,455

 
$
22,835

 
$
7,337

 
$
30,172

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Nonrecurring purchase accounting
    impacts
(25
)
 
(16
)
 
1

 
6

 
(34
)
 
—

 
(34
)
Adjusted net sales
$
8,316

 
$
3,579

 
$
2,445

 
$
8,461

 
$
22,801

 
$
7,337

 
$
30,138

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment EBITA as reported
$
1,039

 
$
290

 
$
323

 
$
1,179

 
$
2,831

 
$
1,427

 
$
4,258

Segment EBITA margin as reported
12.5
%
 
8.1
%
 
13.2
%
 
13.9
%
 
12.4
%
 
19.4
%
 
14.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Transaction costs
13

 
5

 
2

 
13

 
33

 
1

 
34

  Integration costs
42

 
6

 
5

 
25

 
78

 
—

 
78

  Scott Safety gain on sale
—

 
—

 
—

 
—

 
—

 
—

 
—

  Unfavorable arbitration award
—

 
50

 
—

 
—

 
50

 
—

 
50

  Nonrecurring purchase accounting
    impacts
(24
)
 
(23
)
 
2

 
71

 
26

 
—

 
26

Adjusted segment EBITA
$
1,070

 
$
328

 
$
332

 
$
1,288

 
$
3,018

 
$
1,428

 
$
4,446

Adjusted segment EBITA margin
12.9
%
 
9.2
%
 
13.6
%
 
15.2
%
 
13.2
%
 
19.5
%
 
14.8
%

(2) Adjusted Corporate expenses for the three months ended December 31, 2017 excludes $28 million of integration costs and $5 million of transaction costs. Adjusted Corporate expenses for the three months ended March 31, 2018 excludes $46 million of integration costs and $3 million of transaction costs. Adjusted Corporate expenses for the three months ended June 30, 2018 excludes $37 million of integration costs and $2 million of transaction costs. Adjusted Corporate expenses for the three months ended September 30, 2018 excludes $43 million of integration costs and $4 million of transaction costs. Adjusted Corporate expenses for the twelve months ended September 30, 2018 excludes $154 million of integration costs and $14 million of transaction costs. Adjusted Corporate expenses for the twelve months ended September 30, 2017 excludes $241 million of integration costs, $58 million of transaction costs and $4 million of separation costs.

(3) Adjusted amortization of intangible assets for the twelve months ended September 30, 2017 excludes $107 million of nonrecurring asset amortization related to Tyco purchase accounting.

(4) The three and twelve months ended September 30, 2018 pension and postretirement mark-to-market gain of $10 million is excluded from the adjusted non-GAAP results. The twelve months ended September 30, 2017 pension and postretirement mark-to-market gain of $420 million is excluded from the adjusted non-GAAP results.

(5) Restructuring and impairment costs for the three months ended December 31, 2017 of $158 million are excluded from the adjusted non-GAAP results. Restructuring and impairment costs for the three and twelve months ended September 30, 2018 of $105 million and $263 million, respectively, are excluded from the adjusted non-GAAP results. Restructuring and impairment costs for the twelve months ended September 30, 2017 of $367 million are excluded from the adjusted non-GAAP results.

(6) Management defines earnings before interest and taxes (EBIT) as income from continuing operations before net financing charges, income taxes and noncontrolling interests.

(7) Adjusted net financing charges for the twelve months ended September 30, 2017 exclude $17 million of transaction costs related to the debt exchange offers.

(8) Adjusted income from continuing operations attributable to noncontrolling interests for the twelve months ended September 30, 2017 excludes the noncontrolling interest impact of $4 million for mark-to-market pension gain and $2 million for valuation allowance adjustments.