XML 69 R49.htm IDEA: XBRL DOCUMENT
v3.23.3

Income Taxes (Tables) | 12 Months Ended
--- | ---
Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Significant Components of Company's Income Tax Provision from Continuing Operations | The more significant components of the Company’s income tax provision from continuing operations are as follows (in millions):
| 2023 |  | 2022 |  | 2021
Tax expense at Ireland statutory rate of 12.5% | $ | 214 |  |  | $ | 214 |  |  | $ | 327 |
U.S. state income tax, net of federal benefit | 39 |  |  | (23) |  |  | 34 |
Income subject to the U.S. federal tax rate | 56 |  |  | (95) |  |  | 3 |
Income subject to rates different than the statutory rate | 92 |  |  | 125 |  |  | 30 |
Reserve and valuation allowance adjustments | (559) |  |  | (274) |  |  | 66 |
Intellectual property transactions and adjustments | (176) |  |  | — |  |  | 417 |
Restructuring and impairment costs | 11 |  |  | 40 |  |  | (9) |
Income tax provision (benefit) | $ | (323) |  |  | $ | (13) |  |  | $ | 868 |
Effective tax rate | (19) | % |  | (1)% |  | 33%
Summary of Changes in Valuation Allowance | The following table summarizes changes in the valuation allowance (in millions):
| Year Ended September 30,
| 2023 |  | 2022 |  | 2021
Balance at beginning of period | $ | 5,973 |  |  | $ | 5,853 |  |  | $ | 5,518 |
Allowance provision for new operating and other loss carryforwards | 573 |  |  | 325 |  |  | 505 |
Allowance benefits | (168) |  |  | (205) |  |  | (170) |
Balance at end of period | $ | 6,378 |  |  | $ | 5,973 |  |  | $ | 5,853 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
| 2023 |  | 2022 |  | 2021
Beginning balance, October 1 | $ | 2,537 |  |  | $ | 2,726 |  |  | $ | 2,528 |
Additions for tax positions related to the current year | 72 |  |  | 169 |  |  | 240 |
Additions for tax positions of prior years | 96 |  |  | 31 |  |  | 33 |
Reductions for tax positions of prior years | (27) |  |  | (48) |  |  | (6) |
Settlements with taxing authorities | (6) |  |  | (7) |  |  | (24) |
Statute closings and audit resolutions | (446) |  |  | (334) |  |  | (45) |
Ending balance, September 30 | $ | 2,226 |  |  | $ | 2,537 |  |  | $ | 2,726 |
Summary of Income Tax Contingencies | The following table summarizes tax effected unrecognized tax benefits that, if recognized, would impact the effective tax rate and the related accrued interest, net of tax benefit (in millions):
| September 30,
| 2023 |  | 2022 |  | 2021
Tax effected unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ | 1,581 |  |  | $ | 1,973 |  |  | $ | 2,268 |
Net accrued interest | 335 |  |  | 284 |  |  | 252 |
Tax Jurisdictions and Years Currently under Audit Exam | In the U.S., fiscal years 2017 through 2018 are currently under appeal by the Internal Revenue Service (“IRS”) for certain legal entities. Additionally, the Company is currently under exam in the following major non-U.S. jurisdictions for continuing operations:
Tax Jurisdiction |  | Tax Years Covered
Belgium |  | 2015 - 2022
Germany |  | 2007 - 2021
Luxembourg |  | 2017 - 2018
Mexico |  | 2015 - 2018
United Kingdom |  | 2014 - 2015; 2018; 2020 - 2021
Components of Provision for Income Taxes on Continuing Operations | Selected income tax data related to continuing operations were as follows (in millions):
| 2023 |  | 2022 |  | 2021
Components of income (loss) from continuing operations before income taxes: |  |  |  |  |
U.S. | $ | (130) |  |  | $ | 67 |  |  | $ | 543 |
Non-U.S. | 1,840 |  |  | 1,643 |  |  | 2,071 |
Income from continuing operations before income taxes | $ | 1,710 |  |  | $ | 1,710 |  |  | $ | 2,614 |
Components of the provision (benefit) for income taxes: |  |  |  |  |
Current |  |  |  |  |
U.S. federal | $ | (165) |  |  | $ | (219) |  |  | $ | 459 |
U.S. state | 105 |  |  | 53 |  |  | 108 |
Non-U.S. | 413 |  |  | 294 |  |  | 265 |
| 353 |  |  | 128 |  |  | 832 |
Deferred |  |  |  |  |
U.S. federal | (267) |  |  | (175) |  |  | (7) |
U.S. state | (25) |  |  | (69) |  |  | 46 |
Non-U.S. | (384) |  |  | 103 |  |  | (3) |
| (676) |  |  | (141) |  |  | 36 |
Income tax provision (benefit) | $ | (323) |  |  | $ | (13) |  |  | $ | 868 |
Income taxes paid | $ | 430 |  |  | $ | 568 |  |  | $ | 504 |
Deferred Taxes Classified in Consolidated Statements of Financial Position | Deferred taxes were classified in the consolidated statements of financial position as follows (in millions):
| September 30,
| 2023 |  | 2022
Other noncurrent assets | $ | 1,499 |  |  | $ | 954 |
Other noncurrent liabilities | (411) |  |  | (503) |
Net deferred tax asset | $ | 1,088 |  |  | $ | 451 |
Temporary Differences and Carryforwards in Deferred Tax Assets and Liabilities | Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities included (in millions):
| September 30,
| 2023 |  | 2022
Deferred tax assets |  |  |
Accrued expenses and reserves | $ | 507 |  |  | $ | 376 |
Employee and retiree benefits | 71 |  |  | 78 |
Property, plant and equipment | 629 |  |  | 444 |
Net operating loss and other credit carryforwards | 6,748 |  |  | 6,488 |
Research and development | 171 |  |  | 52 |
Operating lease liabilities | 348 |  |  | 309 |
Other, net | 38 |  |  | 58 |
| 8,512 |  |  | 7,805 |
Valuation allowances | (6,378) |  |  | (5,973) |
| 2,134 |  |  | 1,832 |
Deferred tax liabilities |  |  |
Subsidiaries, joint ventures and partnerships | 446 |  |  | 338 |
Intangible assets | 252 |  |  | 734 |
Operating lease right-of-use assets | 348 |  |  | 309 |
| 1,046 |  |  | 1,381 |
Net deferred tax asset | $ | 1,088 |  |  | $ | 451 |

X
- Definition Tabular disclosure of deferred taxes classified in consolidated statements of financial position. + References No definition available. + Details
Name: | jci_DeferredTaxesClassifiedInConsolidatedStatementsOfFinancialPositionTableTableTextBlock
Namespace Prefix: | jci_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482663/740-10-55-217 + Details
Name: | us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration