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Revenue Recognition | 6 Months Ended
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Mar. 31, 2025
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | REVENUE RECOGNITION Disaggregated Revenue The following tables present the Company's revenues disaggregated by segment and by Products & Systems and Services revenue (in millions):
|  | Three Months Ended March 31,
|  | 2025 |  | 2024
|  | Products & Systems |  | Services |  | Total |  | Products & Systems |  | Services |  | Total
Building Solutions North America |  | $ | 1,829 |  |  | $ | 1,087 |  |  | $ | 2,916 |  |  | $ | 1,700 |  |  | $ | 1,039 |  |  | $ | 2,739 |
Building Solutions EMEA/LA |  | 566 |  |  | 519 |  |  | 1,085 |  |  | 572 |  |  | 492 |  |  | 1,064 |
Building Solutions Asia Pacific |  | 337 |  |  | 205 |  |  | 542 |  |  | 308 |  |  | 183 |  |  | 491 |
Global Products |  | 1,133 |  |  | — |  |  | 1,133 |  |  | 1,303 |  |  | — |  |  | 1,303 |
Total |  | $ | 3,865 |  |  | $ | 1,811 |  |  | $ | 5,676 |  |  | $ | 3,883 |  |  | $ | 1,714 |  |  | $ | 5,597 |
|  | Six Months Ended March 31,
|  | 2025 |  | 2024
|  | Products & Systems |  | Services |  | Total |  | Products & Systems |  | Services |  | Total
Building Solutions North America |  | $ | 3,524 |  |  | $ | 2,136 |  |  | $ | 5,660 |  |  | $ | 3,218 |  |  | $ | 2,008 |  |  | $ | 5,226 |
Building Solutions EMEA/LA |  | 1,140 |  |  | 1,018 |  |  | 2,158 |  |  | 1,144 |  |  | 958 |  |  | 2,102 |
Building Solutions Asia Pacific |  | 671 |  |  | 398 |  |  | 1,069 |  |  | 645 |  |  | 353 |  |  | 998 |
Global Products |  | 2,215 |  |  | — |  |  | 2,215 |  |  | 2,480 |  |  | — |  |  | 2,480 |
Total |  | $ | 7,550 |  |  | $ | 3,552 |  |  | $ | 11,102 |  |  | $ | 7,487 |  |  | $ | 3,319 |  |  | $ | 10,806 |
The following table presents further disaggregation of Global Products segment revenues by product type (in millions):
|  | Three Months Ended March 31, |  | Six Months Ended March 31,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
HVAC |  | $ | 468 |  |  | $ | 581 |  |  | $ | 936 |  |  | $ | 1,114 |
Fire & Security |  | 573 |  |  | 607 |  |  | 1,095 |  |  | 1,154 |
Industrial Refrigeration |  | 92 |  |  | 115 |  |  | 184 |  |  | 212 |
Total |  | $ | 1,133 |  |  | $ | 1,303 |  |  | $ | 2,215 |  |  | $ | 2,480 |
Contract Balances Contract assets relate to the Company’s right to consideration for performance obligations satisfied but not billed. Contract liabilities relate to customer payments received in advance of satisfaction of performance obligations under the contract. Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. The following table presents the location and amount of contract balances in the Company's consolidated statements of financial position (in millions):
|  | Location of contract balances |  | March 31, 2025 |  | September 30, 2024 |  |
Contract assets - current |  | Accounts receivable - net |  | $ | 1,998 |  |  | $ | 1,931 |  |  |
Contract assets - noncurrent |  | Other noncurrent assets |  | 7 |  |  | 11 |  |  |
Contract liabilities - current |  | Deferred revenue |  | 2,380 |  |  | 2,160 |  |  |
Contract liabilities - noncurrent |  | Other noncurrent liabilities |  | 261 |  |  | 252 |  |  |
For the three months ended March 31, 2025 and 2024, the Company recognized revenue of $393 million and $369 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year. For the six months ended March 31, 2025 and 2024, the Company recognized revenue of $1,271 million and $1,208 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year. Performance Obligations Performance obligations are satisfied at a point in time or over time. The timing of satisfying the performance obligation is typically stipulated by the terms of the contract. As of March 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $22 billion, of which approximately 63% is expected to be recognized as revenue over the next two years. The remaining performance obligations expected to be recognized in revenue beyond two years primarily relate to large, multi-purpose construction contracts, which include services to be performed over the building's lifetime, with initial contract terms of 25 to 35 years. Future contract modifications could affect both the timing and the amount of the remaining performance obligations. The Company excludes the value of remaining performance obligations for service contracts with an original expected duration of one year or less and contracts that are cancellable without substantial penalty. Costs to Obtain or Fulfill a Contract The Company recognizes the incremental costs incurred to obtain or fulfill a contract with a customer as an asset when these costs are recoverable. These costs consist primarily of sales commissions and design costs that relate to a contract or an anticipated contract that the Company expects to recover. Costs to obtain or fulfill a contract are capitalized and amortized over the period of contract performance. The following table presents the location and amount of costs to obtain or fulfill a contract recorded in the Company's consolidated statements of financial position (in millions):
|  | March 31, 2025 |  | September 30, 2024 |  |
Other current assets |  | $ | 283 |  |  | $ | 265 |  |  |
Other noncurrent assets |  | 290 |  |  | 291 |  |  |
Total |  | $ | 573 |  |  | $ | 556 |  |  |
During the three months ended March 31, 2025 and 2024, the C ompany recognized expense of $91 million and $77 million, respectively, related to costs to obtain or fulfill a contract. During the six months ended March 31, 2025 and 2024, the C om pany recognized expense of $175 million and $134 million, respectively, related to costs to obtain or fulfill a contract.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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