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Acquisitions and Divestitures | 12 Months Ended
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Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Fiscal 2025 In July 2024, the Company entered into a definitive agreement to sell its Residential and Light Commercial ("R&LC") HVAC business, which includes the North America Ducted businesses and the global Residential joint venture with Hitachi, of which Johnson Controls owns 60% and Hitachi owns 40%. The Company completed the sale of its R&LC HVAC business on July 31, 2025 for proceeds of $5.6 billion, net of cash disposed, after tax and transaction-related expenses. In connection with the sale, the Company recognized a gain, net of transaction and other costs, of $2.7 billion ($1.5 billion after tax) for the year ended September 30, 2025, subject to final post-closing working capital and net debt adjustments, within income from discontinued operations, net of tax, in the consolidated statements of income. The Company determined that the R&LC HVAC business, which was previously reported in the Global Products segment prior to the Company's resegmentation, met the criteria to be classified as a discontinued operation as it represented a strategic shift in the Company's operations and resulted in the exit of substantially all of its residential and light commercial HVAC businesses. As a result, the R&LC HVAC business was presented in discontinued operations separate from continuing operations for all periods presented. The Company determined that the assets and liabilities for the R&LC HVAC business met the held for sale criteria during the fourth quarter of 2024 and ceased recording depreciation and amortization for the held for sale assets upon meeting the held for sale criteria. The major classes of line items constituting income from discounted operations, net, in millions:
|  | Year Ended September 30, |
|  | 2025 |  | 2024 |  | 2023 |
Net sales |  | $ | 3,790 |  |  | $ | 4,466 |  |  | $ | 4,462 |  |
Cost of goods sold |  | 2,881 |  |  | 3,300 |  |  | 3,295 |  |
Gross profit |  | 909 |  |  | 1,166 |  |  | 1,167 |  |
Selling, general and administrative expenses |  | (2,008) |  |  | 761 |  |  | 794 |  |
Restructuring and impairment costs |  | 30 |  |  | 34 |  |  | 15 |  |
Net financing charges |  | 5 |  |  | 17 |  |  | 23 |  |
Equity income |  | 240 |  |  | 276 |  |  | 262 |  |
Income from discontinued operations before income taxes |  | 3,122 |  |  | 630 |  |  | 597 |  |
Provision for income taxes on discontinued operations |  | 1,333 |  |  | 141 |  |  | 145 |  |
Income from discontinued operations, net of tax |  | 1,789 |  |  | 489 |  |  | 452 |  |
Income from discontinued operations attributable to noncontrolling interest, net of tax |  | 219 |  |  | 191 |  |  | 165 |  |
Income from discontinued operations |  | $ | 1,570 |  |  | $ | 298 |  |  | $ | 287 |  |
The carrying amounts of major classes of assets and liabilities included as part of the R&LC HVAC business discontinued operations and reported as held for sale, were as follows, in millions:
|  | September 30, 2024
Cash |  | $ | 5 |
Accounts receivable - net |  | 592 |
Inventories |  | 876 |
Other current assets |  | 122 |
Current assets held for sale |  | 1,595 |
Property, plant and equipment - net |  | 793 |
Goodwill |  | 1,182 |
Other intangible assets - net |  | 96 |
Investments in partially-owned affiliates |  | 949 |
Other noncurrent assets |  | 190 |
Noncurrent assets held for sale |  | 3,210 |
Total assets classified as held for sale |  | $ | 4,805 |
Accounts payable |  | $ | 917 |
Accrued compensation and benefits |  | 113 |
Deferred revenue |  | 84 |
Other current liabilities |  | 317 |
Current liabilities held for sale |  | 1,431 |
Pension and postretirement benefit obligations |  | 28 |
Other noncurrent liabilities |  | 377 |
Noncurrent liabilities held for sale |  | 405 |
Total liabilities classified as held for sale |  | $ | 1,836 |
In conjunction with the divestiture, we entered into Transition Services Agreements to provide administrative services to the buyers. The fees for services rendered under each of the Transition Service Agreements were not material to our results of operations. Fiscal 2024 During fiscal 2024, the Company completed three divestitures, including the divestiture of its Air Distribution Technologies ("ADTi") business which was previously reported in the Global Products segment prior to the Company's resegmentation. The combined selling price, net of cash divested, was $347 million, of which $332 million was received as of September 30, 2024. In connection with the closing of the ADTi transaction, the Company recorded a pre-tax loss of $42 million within selling, general and administrative expenses in the consolidated statements of income. An impairment of $56 million was recorded within restructuring and impairment costs in the consolidated statements of income while the business was classified as held for sale. Net cash proceeds from the divestitures were used for general corporate purposes. The businesses did not meet the criteria to be classified as discontinued operations as the divestitures did not represent a strategic shift that will have a major effect on the Company's operations and financial results.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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