XML 35 R26.htm IDEA: XBRL DOCUMENT v3.22.1
Segment Information
6 Months Ended
Mar. 31, 2022
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: Building Solutions North America designs, sells, installs, and services HVAC, controls, building management, refrigeration, integrated electronic security, and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional and governmental customers in the United States and Canada. 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,
as well as data-driven "smart building" solutions, to non-residential building and industrial applications in the United States and Canadian marketplace.

Building Solutions EMEA/LA: Building Solutions EMEA/LA designs, sells, installs, and services HVAC, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and provides technical services, including data-driven "smart building" solutions, to markets in Europe, the Middle East, Africa and Latin America.

Building Solutions Asia Pacific: Building Solutions Asia Pacific designs, sells, installs, and services HVAC, controls, building management, refrigeration, integrated electronic security, integrated fire-detection and suppression systems, and provides technical services, including data-driven "smart building" solutions, to the Asia Pacific marketplace.

Global Products: Global Products designs, manufactures and sells HVAC equipment, controls software and software services for residential and commercial applications to commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide. In addition, Global Products designs, manufactures and sells refrigeration equipment and controls globally. The Global Products business also designs, manufactures and sells fire protection, fire suppression and security products, including intrusion security, anti-theft devices, access control, and video surveillance and management systems, for commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide. Global Products also includes the Johnson Controls-Hitachi joint venture.

Effective October 1, 2021, the Company's marine businesses previously included in Building Solutions Asia Pacific and Global Products reportable segments became part of Building Solutions EMEA/LA reportable segment. Historical information has been re-cast to present the comparative periods on a consistent basis. This change was not material to the segment presentation.

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,
 2022202120222021
Building Solutions North America$2,227 $2,092 $4,379 $4,126 
Building Solutions EMEA/LA958 934 1,917 1,882 
Building Solutions Asia Pacific623 594 1,298 1,198 
Global Products2,290 1,974 4,366 3,729 
   Total net sales$6,098 $5,594 $11,960 $10,935 
 Segment EBITA
 Three Months Ended
March 31,
Six Months Ended
March 31,
2022202120222021
Building Solutions North America$235 $266 $485 $521 
Building Solutions EMEA/LA79 88 183 186 
Building Solutions Asia Pacific74 73 142 150 
Global Products412 284 713 496 
      Total segment EBITA800 711 1,523 1,353 
Corporate expenses(60)(70)(130)(137)
Amortization of intangible assets(106)(104)(224)(208)
Restructuring and impairment costs(384)(96)(433)(96)
Net mark-to-market adjustments(89)209 (32)230 
Net financing charges(51)(44)(104)(103)
Income from continuing operations before income taxes$110 $606 $600 $1,039