Financial Analysis

"COMMITMENTS AND CONTINGENCIES Environmental Matters The Company accrues for potential environmental liabilities when it is probable a liability has been incurred and the amount of the liability is reasonably estimable. The following table presents the location and amount of reserves for environmental liabilities in the Company's consolidated statements of financial position (in millions): September 30, 2025 2024 Other current liabilities $ 27 $ 32 Other noncurrent liabilities 160 179 Total reserves for environmental liabilities $ 187 $ 211 The Company periodically examines whether the contingent liabilities related to the environmental matters described below are probable and reasonably estimable based on experience and ongoing developments in those matters, including continued study and analysis of ongoing remediation obligations. The Company expects that it will pay the amounts recorded over an estimated period of up to 20 years. The Company is not able to estimate a possible loss or range of loss, if any, in excess of the established accruals for environmental liabilities at this time. A substantial portion of the Company's environmental reserves relates to ongoing long-term remediation efforts to address contamination relating to Aqueous Film Forming Foam (""AFFF"") containing perfluorooctane sulfonate (""PFOS""), perfluorooctanoic acid (""PFOA""), and/or other per- and poly-fluoroalkyl substances (""PFAS"") at or near the Tyco Fire Products L.P. (Tyco Fire Products) Fir …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT AND FINANCING ARRANGEMENTS Short-Term Debt Short-term debt consisted of the following (in millions): September 30, 2025 2024 Term loans $ 320 $ 603 Commercial paper 400 350 Bank borrowings 3 $ 723 $ 953 Weighted average interest rate on short-term debt outstanding 4.5 % 4.8 % Long-Term Debt Long-term debt consisted of the following (in millions): September 30, Issuer Interest Rate Due Date 2025 2024 US dollar debt JCI plc 3.90% February 2026 $ 487 $ 487 TIFSA 1 3.90% February 2026 51 51 JCI plc and TFSCA 2 5.50% April 2029 700 700 JCI plc and TFSCA 2 1.75% September 2030 625 625 JCI plc and TFSCA 2 2.00% September 2031 500 500 JCI plc and TFSCA 2 4.90% December 2032 650 400 JCI plc 6.00% January 2036 342 342 JCI inc 6.00% January 2036 8 8 JCI plc 5.70% March 2041 190 190 JCI inc 5.70% March 2041 30 30 JCI plc 5.25% December 2041 155 155 JCI inc 5.25% December 2041 6 6 JCI plc 4.625% July 2044 444 444 JCI inc 4.625% July 2044 6 6 JCI plc 5.125% September 2045 246 253 TIFSA 1 5.125% September 2045 23 23 JCI plc 6.95% December 2045 32 32 JCI plc 6.95% December 2045 4 4 JCI plc 4.50% February 2047 500 500 JCI plc 4.95% July 2064 341 341 JCI plc 4.95% July 2064 15 15 Euro debt JCI plc 1.375% February 2025 472 TIFSA 1 1.375% February 2025 60 JCI plc EURIBOR plus 0.75% April 2027 176 JCI plc and TFSCA 2 0.375% September 2027 587 559 JCI plc and TFSCA 2 3.00% September 2028 704 670 JCI plc and TFSCA 2 1.00% September 2032 587 559 JCI plc and TFSCA 2 3.125% December 2033 587 JCI …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Company's revenues disaggregated by segment and by products and systems versus services revenue (in millions): Year Ended September 30, 2025 2024 Products & Systems Services Total Products & Systems Services Total Americas $ 11,187 $ 4,644 $ 15,831 $ 11,206 $ 4,400 $ 15,606 EMEA 2,977 1,991 4,968 2,789 1,831 4,620 APAC 1,960 837 2,797 1,972 754 2,726 Total $ 16,124 $ 7,472 $ 23,596 $ 15,967 $ 6,985 $ 22,952

DisaggregationOfRevenueTableTextBlock

"STOCK-BASED COMPENSATION Unless otherwise noted, all activities and amounts reported in this footnote include both continuing operations of the Company and activities and amounts related to the R&LC HVAC business. See Note 2, ""Acquisitions and Divestitures"" for additional details regarding divestiture of the R&LC HVAC business. 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, 2025, there were 55 million shares of the Company's common stock reserved and 30 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, 2025 2024 2023 Compensation expense $ 126 $ 100 $ 101 Income tax benefit resulting from share-based compensation arrangements 19 25 25 Tax impact from exercise and vesting of equity settled awards 14 1 7 Substantially all compensation expense is recorded in selling, general and administrative expenses. The Company does not settle stock options …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS The following tables present the Companys fair value hierarchy for those assets and liabilities measured at fair value (in millions): Fair Value Measurements Using: Total as of September 30, 2025 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other current assets Foreign currency exchange derivatives $ 14 $ $ 14 $ Commodity derivatives 1 1 Other noncurrent assets Deferred compensation plan assets 63 63 Exchange traded funds (fixed income) (1) 73 73 Exchange traded funds (equity) (1) 217 217 Total assets $ 368 $ 353 $ 15 $ Other current liabilities Foreign currency exchange derivatives $ 23 $ $ 23 $ Commodity derivatives 1 1 Contingent earn-out liabilities 19 19 Total liabilities $ 43 $ $ 24 $ 19 ( 1 ) Classified as restricted investments for payment of asbestos liabilities. Refer to Note 20, ""Commitments and Contingencies,"" of the notes to consolidated financial statements for further details. Fair Value Measurements Using: Total as of September 30, 2024 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other current assets Foreign currency exchange derivatives $ 20 $ $ 20 $ Commodity derivatives 2 2 Other noncurrent assets Deferred compensation plan assets 56 56 Exchange traded funds (fixed income) (1) 81 81 Exchange traded funds (equity) (1) 200 200 Total assets $ 359 $ 337 $ 22 $ Other …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill in each of the Companys reportable segments were as follows (in millions): Year Ended September 30, 2025 Americas EMEA APAC Total Goodwill $ 14,118 $ 2,409 $ 1,393 17,920 Accumulated impairment loss (918) (277) (1,195) Balance at beginning of period 13,200 2,132 1,393 16,725 Foreign currency translation and other (1) (26) (21) (45) (92) Balance at end of period $ 13,174 $ 2,111 $ 1,348 $ 16,633 (1) Includes measurement period adjustments and the allocation of $86 million of goodwill from EMEA to the ADT Mexico residential security business disposal group classified as held for sale. Refer to Note 3, ""Assets and Liabilities Held for Sale,"" of the notes to consolidated financial statements for further information. Year Ended September 30, 2024 Americas EMEA APAC Total Goodwill $ 14,090 $ 2,302 $ 1,345 17,737 Accumulated impairment loss (918) (47) (965) Balance at beginning of period 13,172 2,255 1,345 16,772 Impairments (230) (230) Foreign currency translation and other (1) 28 107 48 183 Balance at end of period $ 13,200 $ 2,132 $ 1,393 $ 16,725 (1) Includes measurement period adjustments and the allocation of $21 million of goodwill from the ADTi disposal group classified as held for sale in June 2024 and subsequently divested in July 2024. Refer to Note 2, ""Acquisitions and Divestitures,"" of the notes to consolidated financial statements for further information. At April 1, 2025, …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The components of the Companys income tax provision from continuing operations are as follows (in millions): 2025 2024 2023 Tax expense at Ireland statutory rate of 12.5% $ 246 $ 190 $ 139 U.S. state income tax, net of federal benefit 60 42 30 Income subject to the U.S. federal tax rate 117 63 42 Income subject to rates different than the statutory rate (181) (204) 44 Reserve and valuation allowance adjustments 14 (139) (559) Intellectual property transactions and adjustments (176) Impact of acquisitions and divestitures 121 Restructuring and impairment costs (11) 38 12 Income tax provision (benefit) $ 245 $ 111 $ (468) Effective tax rate 12 % 7 % (42) % For fiscal 2025, the effective tax rate for continuing operations was 12% and was lower than the statutory tax rate primarily due to the favorable impact of impairment and restructuring charges and the benefits of continuing global tax planning initiatives, partially offset by the unfavorable impact of tax audit resolutions. For fiscal 2024, the effective tax rate for continuing operations was 7% and was lower than the statutory tax rate primarily due to tax reserve adjustments as the result of tax audit resolutions and expired statute of limitations for certain tax years, valuation allowance adjustments and the benefits of continuing global tax planning initiatives, partially offset by the establishment of a deferred tax liability on the outside basis difference of the Companys investment in certain subsidiaries …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The following table presents the Companys lease costs (in millions): Year Ended September 30, 2025 2024 2023 Operating lease cost $ 381 $ 374 $ 365 Variable lease cost 153 170 154 Total lease costs $ 534 $ 544 $ 519 The following table presents supplemental consolidated statement of financial position information (in millions): September 30, Location of lease balances 2025 2024 Operating lease right-of-use assets Other noncurrent assets $ 1,347 $ 1,170 Operating lease liabilities - current Other current liabilities 226 289 Operating lease liabilities - noncurrent Other noncurrent liabilities 1,084 921 Weighted-average remaining lease term 7 years 7 years Weighted-average discount rate 4.1 % 3.8 % The following table presents supplemental cash flow information related to operating leases (in millions): Year Ended September 30, 2025 2024 2023 Cash paid for amounts included in the measurement of lease liability: Operating cash outflows from operating leases $ 452 $ 377 $ 355 Noncash operating lease activity: Right-of-use assets obtained in exchange for operating lease liabilities 555 354 389 The following table presents future minimum rental payments for operating lease liabilities as of September 30, 2025 (in millions): 2026 $ 274 2027 306 2028 245 2029 189 2030 132 After 2030 370 Total operating lease payments 1,516 Less: Interest (206) Present value of lease payments $ 1,310 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"New Accounting Pronouncements Recently Adopted Accounting Pronouncements In September 2022, the FASB issued ASU 2022-04, ""Disclosure of Supplier Finance Program Obligations,"" which is intended to enhance the transparency surrounding the use of supplier finance programs. Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments require a buyer that uses supplier finance programs to make annual disclosures about the programs key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period, and associated rollforward information. Only the amount outstanding at the end of the period must be disclosed in interim periods. The Company adopted the new disclosures as required at the beginning of fiscal 2024, other than the rollforward disclosure which was adopted for the annual period ended September 30, 2025. The Company maintains agreements with third-party financial institutions who offer voluntary supply chain financing (""SCF"") programs to its suppliers. The SCF programs enable suppliers to sell their receivables to third-party financial institutions and receive payments earlier than the negotiated commercial terms between the suppliers and the Company, which generally range from 90 to 120 days. Suppliers sell receivables to third-party financial institutions on terms negotiated between the supplier and the respective third-party financial …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"PENSION AND RETIREMENT PLANS Unless otherwise noted, all activities and amounts reported in this footnote include both continuing operations of the Company and activities and amounts related to the R&LC HVAC business. See Note 2, ""Acquisitions and Divestitures"" for additional details regarding divestiture of the R&LC HVAC business. Pension Benefits The Company has non-contributory defined benefit pension plans covering certain U.S. and non-U.S. employees. The benefits provided are primarily based on years of service and average compensation or a monthly retirement benefit amount. The Companys U.S. pension plans no longer allow new participants to enter the plans and no longer accrue benefits. Funding for U.S. pension plans equals or exceeds the minimum requirements of the Employee Retirement Income Security Act of 1974. Funding for non-U.S. plans observes the local legal and regulatory limits. Also, the Company makes contributions to union-trusteed pension funds for construction and service personnel. The following table includes information for pension plans with accumulated benefit obligations (""ABO"") in excess of plan assets (in millions): September 30, 2025 2024 Accumulated benefit obligation $ 1,758 $ 331 Fair value of plan assets 1,595 149 The following table includes information for pension plans with projected benefit obligations (""PBO"") in excess of plan assets (in millions): September 30, 2025 2024 Projected benefit obligation $ 1,806 $ 344 Fair value …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

RESTRUCTURING AND RELATED COSTS To better align its resources with its growth strategies and reduce the cost structure of its global operations in certain underlying markets, the Company commits to restructuring plans as necessary. Restructuring activities generally result in charges for workforce reductions, plant closures, asset impairments and other related costs which are reported as restructuring and impairment costs in the Companys consolidated statements of income. The Company expects the restructuring actions to reduce cost of sales and SG&A due to reduced employee-related costs, depreciation and amortization expense. During the fourth quarter of fiscal 2024, the Company completed its previous restructuring plan and committed to a new multi-year restructuring plan to address stranded costs and further right-size its global operations as a result of previously announced portfolio simplification actions. It is expected that one-time restructuring costs, including severance and other employee termination benefits, contract termination costs, and certain other related cash and non-cash charges, of approximately $400 million will be incurred over the course of fiscal 2025, 2026 and 2027. Restructuring costs will be incurred across all segments and Corporate functions. The following table summarizes restructuring and related costs (in millions): Year Ended September 30, 2025 Americas $ 51 EMEA 49 APAC 17 Corporate 47 Total $ 164 The following table summarizes changes in …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION Disaggregated Revenue The following table presents the Company's revenues disaggregated by segment and by products and systems versus services revenue (in millions): Year Ended September 30, 2025 2024 Products & Systems Services Total Products & Systems Services Total Americas $ 11,187 $ 4,644 $ 15,831 $ 11,206 $ 4,400 $ 15,606 EMEA 2,977 1,991 4,968 2,789 1,831 4,620 APAC 1,960 837 2,797 1,972 754 2,726 Total $ 16,124 $ 7,472 $ 23,596 $ 15,967 $ 6,985 $ 22,952 Contract Balances Contract assets represent the Companys right to consideration for performance obligations that have been satisfied but not billed and consist of unbilled receivables and costs in excess of billings. Contract liabilities are customer payments received before performance obligations are satisfied. 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): September 30, Location of contract balances 2025 2024 Contract assets - current Accounts receivable - net $ 2,178 $ 1,931 Contract assets - noncurrent Other noncurrent assets 9 11 Contract liabilities - current Deferred revenue 2,470 2,160 Contract liabilities - noncurrent Other noncurrent liabilities 478 252 The Company recognized revenue that was included in the beginning of period contract liability balanc …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION On April 1, 2025, the Company, as part of ongoing initiatives to drive simplification, accelerate growth, better reflect its organizational and operational structure and align with the manner in which the Company's chief operating decision maker (""CODM"") assesses performance and makes decisions regarding the allocation of resources following portfolio simplification actions, realigned into three reportable segments (Americas, EMEA and APAC). The Company conducts its business through three operating segments, all of which are reportable segments: Americas, which designs, manufactures, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commercial, industrial, data center, institutional and governmental customers in the Americas (United States, Canada, and Latin America Central and South America). Americas also provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven ""smart building"" solutions, to the Americas marketplace. EMEA, which designs, manufactures sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commer …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements include the consolidated accounts of Johnson Controls International plc, a public limited company organized under the laws of Ireland, and its subsidiaries (Johnson Controls International plc and all its subsidiaries, hereinafter collectively referred to as the ""Company,"" ""Johnson Controls"" or ""JCI plc""). The Company's fiscal year ends on September 30. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Nature of Operations Johnson Controls International plc, headquartered in Cork, Ireland, is a global leader in smart, safe, healthy and sustainable buildings, serving a wide range of customers around the globe. The Companys products and solutions advance the safety, comfort and intelligence of spaces to serve people, places and the planet. The Company is committed to helping its customers win and creating greater value for all of its stakeholders through its strategic focus on buildings. The Company is a global leader in engineering, manufacturing, commissioning and retrofitting building products and systems, including commercial heating, ventilating, air-conditioning (""HVAC"") equipment, industrial refrigeration systems, controls, security systems, fire-detection systems and fire-suppression solutions. The Company further serves customers by providing technical services, including maintenance, management, repair, retrofit and repl …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES Environmental Matters The Company accrues for potential environmental liabilities when it is probable a liability has been incurred and the amount of the liability is reasonably estimable. The following table presents the location and amount of reserves for environmental liabilities in the Company's consolidated statements of financial position (in millions): June 30, 2026 September 30, 2025 Other current liabilities $ 21 $ 27 Other noncurrent liabilities 148 160 Total reserves for environmental liabilities $ 169 $ 187 The Company periodically examines whether the contingent liabilities related to the environmental matters described below are probable and reasonably estimable based on experience and ongoing developments in those matters, including continued study and analysis of ongoing remediation obligations. The Company expects that it will pay the amounts recorded over an estimated period of up to 20 years. The Company is not able to estimate a possible loss or range of loss, if any, in excess of the established accruals for environmental liabilities at this time. A substantial portion of the Company's environmental reserves relates to ongoing long-term remediation efforts to address contamination relating to Aqueous Film Forming Foam (""AFFF"") containing perfluorooctane sulfonate (""PFOS""), perfluorooctanoic acid (""PFOA""), and/or other per- and poly-fluoroalkyl substances (""PFAS"") at or near the Tyco Fire Products L.P. (Tyco Fire Prod …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT AND FINANCING ARRANGEMENTS Short-term debt consisted of the following (in millions): June 30, 2026 September 30, 2025 Commercial paper $ 200 $ 400 Term loans 665 320 Bank borrowings 3 $ 865 $ 723 Weighted average interest rate on short-term debt outstanding 3.5 % 4.5 % As of June 30, 2026, the Company had an outstanding syndicated committed revolving credit facility of $2.5 billion which is scheduled to expire in December 2028. There were no draws on the facility as of June 30, 2026. In February 2026, the Company repaid $538 million of outstanding 3.90% Notes due 2026. The following table presents the Company's net financing charges (in millions): Three Months Ended June 30, Nine Months Ended June 30, (in millions) 2026 2025 2026 2025 Interest expense, net of capitalized interest costs $ 58 $ 55 $ 160 $ 178 Other financing charges 5 4 16 14 Interest income (3) (3) (6) (8) Net foreign exchange results for financing activities 11 21 27 59 Net financing charges $ 71 $ 77 $ 197 $ 243 Net financing charges includes pre-tax gains (losses) on derivatives not designated as hedging instruments of $(33) million and $71 million for the three months ended June 30, 2026 and 2025, respectively, and $(222) million and $(13) million for the nine months ended June 30, 2026 and 2025, respectively, which are offset by changes in foreign exchange rates on underlying exposures during those periods. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Company's revenues disaggregated by segment and by Products & Systems and Services revenue (in millions): Three Months Ended June 30, 2026 2025 Products & Systems Services Total Products & Systems Services Total Americas $ 3,194 $ 1,310 $ 4,504 $ 2,847 $ 1,195 $ 4,042 EMEA 777 487 1,264 756 517 1,273 APAC 625 221 846 519 218 737 Total $ 4,596 $ 2,018 $ 6,614 $ 4,122 $ 1,930 $ 6,052 Nine Months Ended June 30, 2026 2025 Products & Systems Services Total Products & Systems Services Total Americas $ 8,709 $ 3,759 $ 12,468 $ 8,094 $ 3,412 $ 11,506 EMEA 2,338 1,469 3,807 2,177 1,454 3,631 APAC 1,640 638 2,278 1,401 616 2,017 Total $ 12,687 $ 5,866 $ 18,553 $ 11,672 $ 5,482 $ 17,154

DisaggregationOfRevenueTableTextBlock

"FAIR VALUE MEASUREMENTS ASC 820, ""Fair Value Measurement,"" defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows: Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Recurring Fair Value Measurements The following tables present the Companys fair value hierarchy for those assets and liabilities measured at fair value (in millions): Fair Value Measurements Using: Total as of June 30, 2026 Qu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes changes in the carrying amount of goodwill in each of the Companys reportable segments (in millions): Nine Months Ended June 30, 2026 Americas EMEA APAC Total Goodwill $ 14,092 $ 2,388 $ 1,348 $ 17,828 Accumulated impairment loss (918) (277) (1,195) Balance at beginning of period 13,174 2,111 1,348 16,633 Acquisitions 193 3 196 Foreign currency translation and other (1) (30) (188) 1 (217) Balance at end of period $ 13,337 $ 1,926 $ 1,349 $ 16,612 (1) Includes the allocation of goodwill to the ADT Spain Security business and the ADT United Kingdom Residential Security business disposal groups of $38 million and $102 million, respectively. Refer to Note 3, ""Acquisitions and Divestitures"" of the notes to the consolidated financial statements for further information. Other intangible assets, primarily from business acquisitions, consisted of (in millions): June 30, 2026 September 30, 2025 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets Technology $ 1,330 $ (787) $ 543 $ 1,197 $ (714) $ 483 Customer relationships 2,006 (1,384) 622 2,026 (1,272) 754 Miscellaneous 993 (569) 424 910 (511) 399 4,329 (2,740) 1,589 4,133 (2,497) 1,636 Indefinite-lived intangible assets Trademarks/trade names 1,961 1,961 1,977 1,977 Total intangible assets $ 6,290 $ (2,740) $ 3,550 $ 6,110 $ (2,497) $ 3,613 Amortization of other intangible assets in …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"INCOME TAXES In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known at each interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. The statutory tax rate in Ireland is being used as a comparison since the Company is domiciled in Ireland. For the three months ended June 30, 2026, the Company's effective tax rate for continuing operations was 18.0% and was higher than the statutory tax rate of 12.5% primarily due to tax rate differentials, partially offset by the benefits of continuing global tax planning. For the nine months ended June 30, 2026, the Company's effective tax rate for continuing operations was 18.7% and was higher than the statutory tax rate of 12.5% primarily due to the tax impact of the water systems Aqueous Film Forming Foam (""AFFF"") insurance proceeds, the tax impact of current and planned divestitures, and tax rate differentials, partially offset by the benefits of continuing global tax planning. For the three months ended June 30, 2025, the Company's effective tax rate for continuing operations was 12.3% and was lower than the statutory tax rate of 12.5% primarily due to the benefits of continuing global tax planning, partially offset by tax rate differentials. F …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, ""Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,"" which is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The Company adopted the new annual disclosures as required for fiscal 2025 and the interim disclosures as required in the first quarter of fiscal 2026. Refer to Note 16, ""Segment Information,"" of the notes to consolidated financial statements for the Company's segment disclosures. Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, ""Income Taxes (Topic 740): Improvements to Income Tax Disclosures,"" which is intended to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments require that on an annual basis, entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments require th …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"PENSION AND RETIREMENT PLANS The components of net periodic benefit cost (credit) associated with defined benefit pension and postretirement plans, which are primarily recorded in selling, general and administrative expenses (""SG&A"") in the consolidated statements of income, are shown in the table below (in millions): Three Months Ended June 30, Nine Months Ended June 30, 2026 2025 2026 2025 Service cost $ 4 $ 5 $ 12 $ 13 Interest cost 32 33 96 99 Expected return on plan assets (44) (47) (132) (139) Amortization of prior service credit (1) (2) (2) (4) Net periodic benefit credit $ (9) $ (11) $ (26) $ (31)"

PensionAndOtherPostretirementBenefitsDisclosureTextBlock

RESTRUCTURING AND RELATED COSTS To better align its resources with its growth strategies and reduce the cost structure of its global operations in certain underlying markets, the Company commits to restructuring plans as necessary. Restructuring activities generally result in charges for workforce reductions, plant closures, asset impairments and other related costs which are reported as restructuring and impairment costs in the Companys consolidated statements of income. The Company expects the restructuring actions to reduce cost of sales and SG&A due to reduced employee-related costs, depreciation and amortization expense. During the fourth quarter of fiscal 2024, the Company committed to a multi-year restructuring plan to address stranded costs and further right-size its global operations as a result of portfolio simplification actions. It is expected that the plan will be completed in fiscal 2027 and the Company will incur one-time restructuring costs, including severance and other employee termination benefits, contract termination costs, and certain other related cash and non-cash charges, totaling approximately $400 million. The following table summarizes restructuring and related costs (in millions): Three Months Ended June 30, 2026 Nine Months Ended June 30, 2026 Inception to June 30, 2026 Americas $ 7 $ 39 $ 90 EMEA 10 28 77 APAC 1 6 23 Corporate 27 45 92 Total $ 45 $ 118 $ 282 The following table summarizes changes in the reserve under the Company's restructur …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

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 June 30, 2026 2025 Products & Systems Services Total Products & Systems Services Total Americas $ 3,194 $ 1,310 $ 4,504 $ 2,847 $ 1,195 $ 4,042 EMEA 777 487 1,264 756 517 1,273 APAC 625 221 846 519 218 737 Total $ 4,596 $ 2,018 $ 6,614 $ 4,122 $ 1,930 $ 6,052 Nine Months Ended June 30, 2026 2025 Products & Systems Services Total Products & Systems Services Total Americas $ 8,709 $ 3,759 $ 12,468 $ 8,094 $ 3,412 $ 11,506 EMEA 2,338 1,469 3,807 2,177 1,454 3,631 APAC 1,640 638 2,278 1,401 616 2,017 Total $ 12,687 $ 5,866 $ 18,553 $ 11,672 $ 5,482 $ 17,154 Contract Balances Contract assets relate to the Companys 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 June 30, 2026 September 30, 2025 Contract assets - current Accounts receivable - net $ 2,582 $ 2,178 Contract assets - noncurrent Other noncurren …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION On April 1, 2025, the Company, as part of ongoing initiatives to drive simplification, accelerate growth, better reflect its organizational and operational structure and align with the manner in which the Company's chief operating decision maker assesses performance and makes decisions regarding the allocation of resources following portfolio simplification actions, realigned into three reportable segments (Americas, EMEA and APAC). The Company conducts its business through three operating segments, all of which are reportable segments: Americas, which designs, manufactures, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commercial, industrial, data center, institutional and governmental customers in the Americas (United States, Canada, and Latin America Central and South America). Americas also provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven ""smart building"" solutions, to the Americas marketplace. EMEA, which designs, manufactures, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commercial, resi …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing