XML 41 R21.htm IDEA: XBRL DOCUMENT
v3.23.3

Stock-based Compensation | 12 Months Ended
--- | ---
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Johnson Controls International plc 2021 Equity and Incentive Plan authorizes stock options, stock appreciation rights, restricted (non-vested) stock/units, performance shares, performance units and other stock-based awards. The Compensation and Talent Development Committee of the Company's Board of Directors determines the types of awards to be granted to individual participants and the terms and conditions of the awards. Annual awards are typically granted in the first quarter of the fiscal year. As of September 30, 2023, there were 55 million shares of the Company's common stock reserved and 41 million shares available for issuance under the 2021 Equity and Incentive Plan. The following table summarizes stock-based compensation related charges and benefits (in millions):
|  | Year Ended September 30,
| 2023 |  | 2022 |  | 2021
Compensation expense |  | $ | 101 |  |  | $ | 104 |  |  | $ | 97 |
Income tax benefit resulting from share-based compensation arrangements |  | 25 |  |  | 26 |  |  | 24 |
Tax impact from exercise and vesting of equity settled awards |  | 7 |  |  | 12 |  |  | 12 |
Compensation expense is recorded in selling, general and administrative expenses. The Company does not settle stock options granted under share-based payment arrangements in cash. Restricted (Non-vested) Stock / Units A summary of non-vested restricted stock awards at September 30, 2023, and changes for the year then ended, is presented below:
| Weighted Average Price |  | Shares/Units Subject to Restriction
Non-vested, September 30, 2022 | $ | 58.78 |  |  | 2,949,194 |
Granted | 65.72 |  |  | 2,010,495 |
Vested | 53.55 |  |  | (1,487,685) |
Forfeited | 64.14 |  |  | (664,891) |
Non-vested, September 30, 2023 | $ | 64.90 |  |  | 2,807,113 |
At September 30, 2023, the Company had approximately $113 million of total unrecognized compensation cost related to non-vested restricted stock arrangements granted which is expected to be recognized over a weighted-average period of 1.9 years. Performance Share Awards (PSU's) The following table summarizes the assumptions used in determining the fair value of stock options granted:
| Year Ended September 30,
| 2023 |  | 2022 |  | 2021
Risk-free interest rate | 4.04% |  | 0.99% |  | 0.20%
Expected volatility of the Company’s stock | 33.50% |  | 30.00% |  | 30.90%
A summary of the status of the Company’s non-vested PSU's at September 30, 2023, and changes for the year then ended, is presented below:
| Weighted Average Price |  | Shares/Units Subject to PSU
Non-vested, September 30, 2022 | $ | 60.30 |  |  | 1,143,071 |
Granted | 79.45 |  |  | 344,029 |
Vested | 43.19 |  |  | (361,117) |
Forfeited | 71.18 |  |  | (258,459) |
Non-vested, September 30, 2023 | $ | 71.77 |  |  | 867,524 |
At September 30, 2023, the Company had approximately $32 million of total unrecognized compensation cost related to non-vested performance-based share unit awards which is expected to be recognized over a weighted-average period of 1.9 years. Stock Options The following table summarizes the assumptions used in determining the fair value of stock options granted:
| Year Ended September 30,
| 2023 |  | 2022 |  | 2021
Expected life of option (years) | 5.8 |  | 6.0 |  | 6.5
Risk-free interest rate | 3.59% |  | 1.35% |  | 0.60%
Expected volatility of the Company’s stock | 29.40% |  | 27.80% |  | 27.60%
Expected dividend yield on the Company’s stock | 2.10% |  | 1.71% |  | 2.28%
A summary of stock option activity at September 30, 2023, and changes for the year then ended, is presented below:
| Weighted Average Option Price |  | Shares Subject to Option |  | Weighted Average Remaining Contractual Life (years) |  | Aggregate Intrinsic Value (in millions)
Outstanding, September 30, 2022 | $ | 42.46 |  |  | 5,683,847 |  |  |  |  |
Granted | 66.77 |  |  | 570,140 |  |  |  |  |
Exercised | 38.17 |  |  | (1,068,612) |  |  |  |  |
Forfeited or expired | 59.31 |  |  | (265,459) |  |  |  |  |
Outstanding, September 30, 2023 | $ | 45.44 |  |  | 4,919,916 |  |  | 5.75 |  | $ | 56 |
Exercisable, September 30, 2023 | $ | 39.11 |  |  | 3,762,092 |  |  | 3.83 |  | $ | 53 |
The following table summarizes additional stock option information:
|  | Year Ended September 30,
| 2023 |  | 2022 |  | 2021
Weighted-average grant-date fair value of options granted |  | $ | 18.21 |  |  | $ | 18.59 |  |  | $ | 9.36 |
Intrinsic value of options exercised (in millions) |  | 27 |  |  | 19 |  |  | 94 |
At September 30, 2023, the Company had approximately $10 million of total unrecognized compensation cost related to non-vested stock options which is expected to be recognized over a weighted-average period of 1.6 years.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration