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Assets and Liabilities Held for Sale and Discontinued Operations
 3 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Assets and Liabilities Held for Sale and Discontinued Operations ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
In July 2024, the Company entered into a definitive agreement to sell its 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%, to Bosch Group for approximately $8.1 billion in cash with the Company’s portion of the aggregate consideration being approximately $6.7 billion, inclusive of an upfront royalty payment for the licensing of the York tradename. The transaction is expected to close in the fourth quarter of fiscal 2025, subject to required regulatory approvals and other customary closing conditions. The R&LC HVAC business, which was previously reported in the Global Products segment, meets the criteria to be classified as discontinued operations as it represents a strategic shift in the Company's operations and results in the exit of substantially all of its residential and light commercial HVAC businesses. Results of the business are presented in discontinued 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. Accordingly, the businesses' assets and liabilities were reclassified in the consolidated balance sheets at December 31, 2024 and September 30, 2024 to held for sale, and the Company ceased recording depreciation and amortization for the held for sale assets.

The following table summarizes the results of the R&LC HVAC business which are reported as discontinued operations (in millions):
Three Months Ended December 31,
20242023
Net sales$966 $885 
Cost of goods sold731 671 
Gross profit235 214 
Selling, general and administrative expenses183 180 
Restructuring and impairment costs4 4 
Net financing charges(1)11 
Equity income65 64 
Income from discontinued operations before income taxes114 83 
Provision for income taxes on discontinued operations24 19 
Income from discontinued operations, net of tax90 64 
Income from discontinued operations attributable to noncontrolling interest, net of tax34 30 
Income from discontinued operations$56 $34 
The following table summarizes the assets and liabilities of the R&LC HVAC business which were classified as held for sale (in millions):

December 31, 2024September 30, 2024
Cash$2 $5 
Accounts receivable - net539 592 
Inventories979 876 
Other current assets138 122 
Current assets held for sale1,658 1,595 
Property, plant and equipment - net743 793 
Goodwill1,130 1,182 
Other intangible assets - net94 96 
Investments in partially-owned affiliates833 949 
Other noncurrent assets186 190 
Noncurrent assets held for sale2,986 3,210 
Total assets classified as held for sale$4,644 $4,805 
Accounts payable$887 $917 
Accrued compensation and benefits99 113 
Deferred revenue112 84 
Other current liabilities 224 317 
Current liabilities held for sale1,322 1,431 
Pension and postretirement benefit obligations25 28 
Other noncurrent liabilities382 377 
Noncurrent liabilities held for sale407 405 
Total liabilities classified as held for sale$1,729 $1,836 

Assets and liabilities classified as held for sale are required to be recorded at the lower of carrying value or fair value less costs to sell. As of December 31, 2024, the estimated fair value less costs to sell of the held for sale businesses exceeded their carrying value, and therefore, no adjustment was necessary.