|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
|
|
|
|
|
|
|
Ireland
|
|
98-0390500
|
(Jurisdiction of Incorporation)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
One Albert Quay
|
||
Cork, Ireland
|
||
(Address of principal executive offices)
|
|
|
|
|
|
Class
|
|
Ordinary Shares Outstanding at March 31, 2018
|
Ordinary Shares, $0.01 par value per share
|
|
926,204,412
|
|
|
|
|
|
Johnson Controls International plc
Consolidated Statements of Financial Position
(in millions, except par value; unaudited)
|
|||||||
|
|
|
|
||||
|
March 31, 2018
|
|
September 30, 2017
|
||||
Assets
|
|
|
|
||||
|
|
|
|
||||
Cash and cash equivalents
|
$
|
268
|
|
|
$
|
321
|
|
Accounts receivable - net
|
6,679
|
|
|
6,666
|
|
||
Inventories
|
3,565
|
|
|
3,209
|
|
||
Assets held for sale
|
22
|
|
|
189
|
|
||
Other current assets
|
1,737
|
|
|
1,907
|
|
||
Current assets
|
12,271
|
|
|
12,292
|
|
||
|
|
|
|
||||
Property, plant and equipment - net
|
6,235
|
|
|
6,121
|
|
||
Goodwill
|
19,806
|
|
|
19,688
|
|
||
Other intangible assets - net
|
6,625
|
|
|
6,741
|
|
||
Investments in partially-owned affiliates
|
1,294
|
|
|
1,191
|
|
||
Noncurrent assets held for sale
|
—
|
|
|
1,920
|
|
||
Other noncurrent assets
|
3,721
|
|
|
3,931
|
|
||
Total assets
|
$
|
49,952
|
|
|
$
|
51,884
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
||||
|
|
|
|
||||
Short-term debt
|
$
|
1,111
|
|
|
$
|
1,214
|
|
Current portion of long-term debt
|
25
|
|
|
394
|
|
||
Accounts payable
|
4,250
|
|
|
4,271
|
|
||
Accrued compensation and benefits
|
866
|
|
|
1,071
|
|
||
Deferred revenue
|
1,543
|
|
|
1,279
|
|
||
Liabilities held for sale
|
—
|
|
|
72
|
|
||
Other current liabilities
|
3,197
|
|
|
3,553
|
|
||
Current liabilities
|
10,992
|
|
|
11,854
|
|
||
|
|
|
|
||||
Long-term debt
|
10,962
|
|
|
11,964
|
|
||
Pension and postretirement benefits
|
864
|
|
|
947
|
|
||
Noncurrent liabilities held for sale
|
—
|
|
|
173
|
|
||
Other noncurrent liabilities
|
5,019
|
|
|
5,368
|
|
||
Long-term liabilities
|
16,845
|
|
|
18,452
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 21)
|
|
|
|
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interests
|
235
|
|
|
211
|
|
||
|
|
|
|
||||
Ordinary shares, $0.01 par value
|
9
|
|
|
9
|
|
||
Ordinary A shares, €1.00 par value
|
—
|
|
|
—
|
|
||
Preferred shares, $0.01 par value
|
—
|
|
|
—
|
|
||
Ordinary shares held in treasury, at cost
|
(946
|
)
|
|
(710
|
)
|
||
Capital in excess of par value
|
16,471
|
|
|
16,390
|
|
||
Retained earnings
|
5,594
|
|
|
5,231
|
|
||
Accumulated other comprehensive loss
|
(254
|
)
|
|
(473
|
)
|
||
Shareholders’ equity attributable to Johnson Controls
|
20,874
|
|
|
20,447
|
|
||
Noncontrolling interests
|
1,006
|
|
|
920
|
|
||
Total equity
|
21,880
|
|
|
21,367
|
|
||
Total liabilities and equity
|
$
|
49,952
|
|
|
$
|
51,884
|
|
Johnson Controls International plc
Consolidated Statements of Income
(in millions, except per share data; unaudited)
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
|
|
|
|
|
|
|
||||||||
Products and systems*
|
$
|
5,996
|
|
|
$
|
5,769
|
|
|
$
|
11,942
|
|
|
$
|
11,354
|
|
Services*
|
1,479
|
|
|
1,498
|
|
|
2,968
|
|
|
2,999
|
|
||||
|
7,475
|
|
|
7,267
|
|
|
14,910
|
|
|
14,353
|
|
||||
Cost of sales
|
|
|
|
|
|
|
|
||||||||
Products and systems*
|
4,417
|
|
|
4,087
|
|
|
8,866
|
|
|
8,150
|
|
||||
Services*
|
838
|
|
|
899
|
|
|
1,655
|
|
|
1,808
|
|
||||
|
5,255
|
|
|
4,986
|
|
|
10,521
|
|
|
9,958
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gross profit
|
2,220
|
|
|
2,281
|
|
|
4,389
|
|
|
4,395
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
(1,588
|
)
|
|
(1,726
|
)
|
|
(3,005
|
)
|
|
(3,296
|
)
|
||||
Restructuring and impairment costs
|
—
|
|
|
(99
|
)
|
|
(158
|
)
|
|
(177
|
)
|
||||
Net financing charges
|
(115
|
)
|
|
(116
|
)
|
|
(231
|
)
|
|
(252
|
)
|
||||
Equity income
|
44
|
|
|
53
|
|
|
104
|
|
|
108
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations before income taxes
|
561
|
|
|
393
|
|
|
1,099
|
|
|
778
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax provision
|
78
|
|
|
508
|
|
|
345
|
|
|
481
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
483
|
|
|
(115
|
)
|
|
754
|
|
|
297
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loss from discontinued operations, net of tax (Note 4)
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
483
|
|
|
(115
|
)
|
|
754
|
|
|
263
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations attributable to noncontrolling
interests
|
45
|
|
|
33
|
|
|
86
|
|
|
73
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from discontinued operations attributable to noncontrolling
interests
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Johnson Controls
|
$
|
438
|
|
|
$
|
(148
|
)
|
|
$
|
668
|
|
|
$
|
181
|
|
|
|
|
|
|
|
|
|
||||||||
Amounts attributable to Johnson Controls ordinary shareholders:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
438
|
|
|
$
|
(148
|
)
|
|
$
|
668
|
|
|
$
|
224
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
||||
Net income (loss)
|
$
|
438
|
|
|
$
|
(148
|
)
|
|
$
|
668
|
|
|
$
|
181
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share attributable to Johnson Controls
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.47
|
|
|
$
|
(0.16
|
)
|
|
$
|
0.72
|
|
|
$
|
0.24
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.05
|
)
|
||||
Net income (loss)
|
$
|
0.47
|
|
|
$
|
(0.16
|
)
|
|
$
|
0.72
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share attributable to Johnson Controls
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.47
|
|
|
$
|
(0.16
|
)
|
|
$
|
0.72
|
|
|
$
|
0.24
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.05
|
)
|
||||
Net income (loss)
|
$
|
0.47
|
|
|
$
|
(0.16
|
)
|
|
$
|
0.72
|
|
|
$
|
0.19
|
|
*
|
Products and systems consist of Building Technologies & Solutions and Power Solutions products and systems. Services are Building Technologies & Solutions technical services.
|
Johnson Controls International plc
Consolidated Statements of Comprehensive Income (Loss)
(in millions; unaudited)
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
483
|
|
|
$
|
(115
|
)
|
|
$
|
754
|
|
|
$
|
263
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
204
|
|
|
252
|
|
|
283
|
|
|
(451
|
)
|
||||
Realized and unrealized losses on derivatives
|
(10
|
)
|
|
(8
|
)
|
|
(11
|
)
|
|
(4
|
)
|
||||
Realized and unrealized gains (losses) on marketable securities
|
(2
|
)
|
|
11
|
|
|
(2
|
)
|
|
9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss)
|
192
|
|
|
255
|
|
|
270
|
|
|
(446
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Total comprehensive income (loss)
|
675
|
|
|
140
|
|
|
1,024
|
|
|
(183
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income attributable to noncontrolling interests
|
77
|
|
|
42
|
|
|
137
|
|
|
51
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss) attributable to Johnson Controls
|
$
|
598
|
|
|
$
|
98
|
|
|
$
|
887
|
|
|
$
|
(234
|
)
|
|
Six Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Operating Activities
|
|
|
|
||||
Net income attributable to Johnson Controls
|
$
|
668
|
|
|
$
|
181
|
|
Income from continuing operations attributable to noncontrolling interests
|
86
|
|
|
73
|
|
||
Income from discontinued operations attributable to noncontrolling interests
|
—
|
|
|
9
|
|
||
Net income
|
754
|
|
|
263
|
|
||
Adjustments to reconcile net income to cash provided (used) by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
552
|
|
|
638
|
|
||
Pension and postretirement benefit income
|
(72
|
)
|
|
(202
|
)
|
||
Pension and postretirement contributions
|
(37
|
)
|
|
(258
|
)
|
||
Equity in earnings of partially-owned affiliates, net of dividends received
|
(79
|
)
|
|
(116
|
)
|
||
Deferred income taxes
|
(77
|
)
|
|
1,059
|
|
||
Non-cash restructuring and impairment charges
|
30
|
|
|
39
|
|
||
Gain on Scott Safety business divestiture
|
(114
|
)
|
|
—
|
|
||
Equity-based compensation
|
56
|
|
|
81
|
|
||
Other
|
(24
|
)
|
|
1
|
|
||
Changes in assets and liabilities, excluding acquisitions and divestitures:
|
|
|
|
||||
Accounts receivable
|
108
|
|
|
(21
|
)
|
||
Inventories
|
(300
|
)
|
|
(370
|
)
|
||
Other assets
|
15
|
|
|
(150
|
)
|
||
Restructuring reserves
|
(12
|
)
|
|
47
|
|
||
Accounts payable and accrued liabilities
|
(521
|
)
|
|
(599
|
)
|
||
Accrued income taxes
|
254
|
|
|
(1,931
|
)
|
||
Cash provided (used) by operating activities
|
533
|
|
|
(1,519
|
)
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(497
|
)
|
|
(634
|
)
|
||
Sale of property, plant and equipment
|
10
|
|
|
18
|
|
||
Acquisition of businesses, net of cash acquired
|
(15
|
)
|
|
(6
|
)
|
||
Business divestitures
|
2,114
|
|
|
180
|
|
||
Changes in long-term investments
|
(14
|
)
|
|
(30
|
)
|
||
Cash provided (used) by investing activities
|
1,598
|
|
|
(472
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Increase (decrease) in short-term debt - net
|
(100
|
)
|
|
55
|
|
||
Increase in long-term debt
|
886
|
|
|
1,552
|
|
||
Repayment of long-term debt
|
(2,328
|
)
|
|
(831
|
)
|
||
Debt financing costs
|
(4
|
)
|
|
(17
|
)
|
||
Stock repurchases
|
(199
|
)
|
|
(119
|
)
|
||
Payment of cash dividends
|
(473
|
)
|
|
(235
|
)
|
||
Proceeds from the exercise of stock options
|
36
|
|
|
88
|
|
||
Employee equity-based compensation withholding taxes
|
(37
|
)
|
|
(33
|
)
|
||
Dividends paid to noncontrolling interests
|
(46
|
)
|
|
(78
|
)
|
||
Dividend from Adient spin-off
|
—
|
|
|
2,050
|
|
||
Cash transferred to Adient related to spin-off
|
—
|
|
|
(665
|
)
|
||
Cash paid related to prior acquisitions
|
—
|
|
|
(37
|
)
|
||
Other
|
11
|
|
|
14
|
|
||
Cash provided (used) by financing activities
|
(2,254
|
)
|
|
1,744
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
61
|
|
|
(25
|
)
|
||
Change in cash held for sale
|
9
|
|
|
105
|
|
||
Decrease in cash and cash equivalents
|
(53
|
)
|
|
(167
|
)
|
||
Cash and cash equivalents at beginning of period
|
321
|
|
|
579
|
|
||
Cash and cash equivalents at end of period
|
$
|
268
|
|
|
$
|
412
|
|
1.
|
Financial Statements
|
|
|
September 30,
2017
|
||
|
|
|
||
Current assets
|
|
$
|
2
|
|
Noncurrent assets
|
|
53
|
|
|
Total assets
|
|
$
|
55
|
|
|
|
|
||
Current liabilities
|
|
$
|
6
|
|
Noncurrent liabilities
|
|
42
|
|
|
Total liabilities
|
|
$
|
48
|
|
2.
|
New Accounting Standards
|
3.
|
Acquisitions and Divestitures
|
4.
|
Discontinued Operations
|
|
Six Months Ended March 31,
|
||
|
2017
|
||
|
|
||
Net sales
|
$
|
1,434
|
|
|
|
||
Income from discontinued operations before income taxes
|
1
|
|
|
Provision for income taxes on discontinued operations
|
35
|
|
|
Income from discontinued operations attributable to noncontrolling interests, net of tax
|
9
|
|
|
Loss from discontinued operations
|
$
|
(43
|
)
|
|
Six Months Ended March 31,
|
||
|
2017
|
||
|
|
||
Depreciation and amortization
|
$
|
29
|
|
Equity in earnings of partially-owned affiliates
|
(31
|
)
|
|
Deferred income taxes
|
562
|
|
|
Equity-based compensation
|
1
|
|
|
Accrued income taxes
|
(808
|
)
|
|
Capital expenditures
|
(91
|
)
|
|
September 30, 2017
|
||
|
|
||
Cash
|
$
|
9
|
|
Accounts receivable - net
|
100
|
|
|
Inventories
|
75
|
|
|
Other current assets
|
5
|
|
|
Assets held for sale
|
$
|
189
|
|
|
|
||
Property, plant and equipment - net
|
$
|
79
|
|
Goodwill
|
1,248
|
|
|
Other intangible assets - net
|
592
|
|
|
Other noncurrent assets
|
1
|
|
|
Noncurrent assets held for sale
|
$
|
1,920
|
|
|
|
||
Accounts payable
|
$
|
37
|
|
Accrued compensation and benefits
|
10
|
|
|
Other current liabilities
|
25
|
|
|
Liabilities held for sale
|
$
|
72
|
|
|
|
||
Other noncurrent liabilities
|
$
|
173
|
|
Noncurrent liabilities held for sale
|
$
|
173
|
|
5.
|
Percentage-of-Completion Contracts
|
6.
|
Inventories
|
|
March 31, 2018
|
|
September 30, 2017
|
||||
|
|
|
|
||||
Raw materials and supplies
|
$
|
991
|
|
|
$
|
919
|
|
Work-in-process
|
575
|
|
|
567
|
|
||
Finished goods
|
1,999
|
|
|
1,723
|
|
||
Inventories
|
$
|
3,565
|
|
|
$
|
3,209
|
|
7.
|
Goodwill and Other Intangible Assets
|
|
March 31, 2018
|
|
September 30, 2017
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
Amortized intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Technology
|
$
|
1,344
|
|
|
$
|
(205
|
)
|
|
$
|
1,139
|
|
|
$
|
1,328
|
|
|
$
|
(137
|
)
|
|
$
|
1,191
|
|
Customer relationships
|
3,163
|
|
|
(561
|
)
|
|
2,602
|
|
|
3,168
|
|
|
(486
|
)
|
|
2,682
|
|
||||||
Miscellaneous
|
443
|
|
|
(176
|
)
|
|
267
|
|
|
389
|
|
|
(147
|
)
|
|
242
|
|
||||||
Total amortized intangible assets
|
4,950
|
|
|
(942
|
)
|
|
4,008
|
|
|
4,885
|
|
|
(770
|
)
|
|
4,115
|
|
||||||
Unamortized intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trademarks/trade names
|
2,494
|
|
|
—
|
|
|
2,494
|
|
|
2,483
|
|
|
—
|
|
|
2,483
|
|
||||||
Miscellaneous
|
123
|
|
|
—
|
|
|
123
|
|
|
143
|
|
|
—
|
|
|
143
|
|
||||||
|
2,617
|
|
|
—
|
|
|
2,617
|
|
|
2,626
|
|
|
—
|
|
|
2,626
|
|
||||||
Total intangible assets
|
$
|
7,567
|
|
|
$
|
(942
|
)
|
|
$
|
6,625
|
|
|
$
|
7,511
|
|
|
$
|
(770
|
)
|
|
$
|
6,741
|
|
8.
|
Significant Restructuring and Impairment Costs
|
|
Employee Severance and Termination Benefits
|
|
Long-Lived Asset Impairments
|
|
Other
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Original reserve
|
$
|
125
|
|
|
$
|
30
|
|
|
$
|
3
|
|
|
$
|
158
|
|
Utilized—noncash
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
||||
Balance at December 31, 2017
|
$
|
125
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
128
|
|
Utilized—cash
|
(8
|
)
|
|
—
|
|
|
(1
|
)
|
|
(9
|
)
|
||||
Balance at March 31, 2018
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
119
|
|
|
Employee Severance and Termination Benefits
|
|
Long-Lived Asset Impairments
|
|
Other
|
|
Currency
Translation |
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Original reserve
|
$
|
276
|
|
|
$
|
77
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
367
|
|
Utilized—cash
|
(75
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|||||
Utilized—noncash
|
—
|
|
|
(77
|
)
|
|
(1
|
)
|
|
—
|
|
|
(78
|
)
|
|||||
Adjustment to restructuring reserves
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||
Balance at September 30, 2017
|
$
|
226
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
239
|
|
Utilized—cash
|
(109
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(112
|
)
|
|||||
Utilized—noncash
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||
Balance at March 31, 2018
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
1
|
|
|
$
|
128
|
|
|
Employee Severance and Termination Benefits
|
|
Long-Lived Asset Impairments
|
|
Other
|
|
Currency
Translation |
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Original reserve
|
$
|
368
|
|
|
$
|
190
|
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
620
|
|
Acquired Tyco restructuring
reserves
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|||||
Utilized—cash
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|||||
Utilized—noncash
|
—
|
|
|
(190
|
)
|
|
(32
|
)
|
|
1
|
|
|
(221
|
)
|
|||||
Balance at September 30, 2016
|
$
|
414
|
|
|
$
|
—
|
|
|
$
|
30
|
|
|
$
|
1
|
|
|
$
|
445
|
|
Adient spin-off impact
|
(194
|
)
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(216
|
)
|
|||||
Utilized—cash
|
(86
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(88
|
)
|
|||||
Utilized—noncash
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||
Adjustment to restructuring
reserves
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|||||
Transfer to liabilities held for sale
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Adjustment to acquired Tyco
restructuring reserves
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|||||
Balance at September 30, 2017
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
92
|
|
Utilized—cash
|
(14
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(16
|
)
|
|||||
Balance at March 31, 2018
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
2
|
|
|
$
|
76
|
|
9.
|
Income Taxes
|
Tax Jurisdiction
|
|
Tax Years Covered
|
|
|
|
Belgium
|
|
2015 - 2016
|
Brazil
|
|
2011 - 2012
|
Canada
|
|
2013 - 2014
|
China
|
|
2008 - 2016
|
France
|
|
2010 - 2016
|
Germany
|
|
2007 - 2015
|
Spain
|
|
2010 - 2014
|
Switzerland
|
|
2011 - 2014
|
United Kingdom
|
|
2011 - 2015
|
10.
|
Pension and Postretirement Plans
|
|
U.S. Pension Plans
|
||||||||||||||
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
9
|
|
Interest cost
|
27
|
|
|
29
|
|
|
53
|
|
|
57
|
|
||||
Expected return on plan assets
|
(57
|
)
|
|
(58
|
)
|
|
(114
|
)
|
|
(117
|
)
|
||||
Net actuarial gain
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
(135
|
)
|
||||
Settlement gain
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Net periodic benefit credit
|
$
|
(27
|
)
|
|
$
|
(44
|
)
|
|
$
|
(54
|
)
|
|
$
|
(195
|
)
|
|
Non-U.S. Pension Plans
|
||||||||||||||
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
6
|
|
|
$
|
8
|
|
|
$
|
12
|
|
|
$
|
16
|
|
Interest cost
|
15
|
|
|
11
|
|
|
29
|
|
|
23
|
|
||||
Expected return on plan assets
|
(29
|
)
|
|
(22
|
)
|
|
(58
|
)
|
|
(45
|
)
|
||||
Net periodic benefit credit
|
$
|
(8
|
)
|
|
$
|
(3
|
)
|
|
$
|
(17
|
)
|
|
$
|
(6
|
)
|
|
Postretirement Benefits
|
||||||||||||||
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost
|
1
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Expected return on plan assets
|
(3
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(5
|
)
|
||||
Net periodic benefit credit
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
11.
|
Debt and Financing Arrangements
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Interest expense, net of capitalized interest costs
|
$
|
104
|
|
|
$
|
118
|
|
|
$
|
218
|
|
|
$
|
228
|
|
Banking fees and bond cost amortization
|
14
|
|
|
11
|
|
|
27
|
|
|
41
|
|
||||
Interest income
|
(5
|
)
|
|
(5
|
)
|
|
(14
|
)
|
|
(12
|
)
|
||||
Net foreign exchange results for financing activities
|
2
|
|
|
(8
|
)
|
|
—
|
|
|
(5
|
)
|
||||
Net financing charges
|
$
|
115
|
|
|
$
|
116
|
|
|
$
|
231
|
|
|
$
|
252
|
|
12.
|
Stock-Based Compensation
|
|
Six Months Ended March 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Number Granted
|
|
Weighted Average Grant Date Fair Value
|
|
Number Granted
|
|
Weighted Average Grant Date Fair Value
|
||||||
|
|
|
|
|
|
|
|
||||||
Stock options
|
1,355,595
|
|
|
$
|
7.05
|
|
|
2,830,826
|
|
|
$
|
7.81
|
|
Stock appreciation rights
|
—
|
|
|
—
|
|
|
15,693
|
|
|
8.28
|
|
||
Restricted stock/units
|
2,095,225
|
|
|
37.37
|
|
|
1,582,962
|
|
|
41.74
|
|
||
Performance shares
|
496,478
|
|
|
36.31
|
|
|
846,725
|
|
|
48.40
|
|
|
Six Months Ended
March 31, |
||
|
2018
|
|
2017
|
Risk-free interest rate
|
1.92%
|
|
1.40%
|
Expected volatility of the Company’s stock
|
21.7%
|
|
21.0%
|
13.
|
Earnings Per Share
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Income (loss) Available to Ordinary
Shareholders
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
438
|
|
|
$
|
(148
|
)
|
|
$
|
668
|
|
|
$
|
224
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
||||
Basic and diluted income (loss) available to
shareholders
|
$
|
438
|
|
|
$
|
(148
|
)
|
|
$
|
668
|
|
|
$
|
181
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares Outstanding
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
926.2
|
|
|
939.2
|
|
|
926.2
|
|
|
938.2
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock options, unvested restricted stock and
unvested performance share awards
|
6.3
|
|
|
—
|
|
|
6.7
|
|
|
9.8
|
|
||||
Diluted weighted average shares outstanding
|
932.5
|
|
|
939.2
|
|
|
932.9
|
|
|
948.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Antidilutive Securities
|
|
|
|
|
|
|
|
||||||||
Options to purchase shares
|
1.4
|
|
|
—
|
|
|
1.2
|
|
|
0.1
|
|
14.
|
Equity and Noncontrolling Interests
|
|
Three Months Ended March 31, 2018
|
|
Three Months Ended March 31, 2017
|
||||||||||||||||||||
|
Equity
Attributable to
Johnson Controls International plc
|
|
Equity
Attributable to
Noncontrolling
Interests
|
|
Total
Equity
|
|
Equity
Attributable to
Johnson Controls International plc
|
|
Equity
Attributable to
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance, December 31,
|
$
|
20,535
|
|
|
$
|
965
|
|
|
$
|
21,500
|
|
|
$
|
19,577
|
|
|
$
|
819
|
|
|
$
|
20,396
|
|
Total comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
438
|
|
|
33
|
|
|
471
|
|
|
(148
|
)
|
|
25
|
|
|
(123
|
)
|
||||||
Foreign currency translation adjustments
|
168
|
|
|
31
|
|
|
199
|
|
|
241
|
|
|
10
|
|
|
251
|
|
||||||
Realized and unrealized gains (losses) on derivatives
|
(6
|
)
|
|
1
|
|
|
(5
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
(8
|
)
|
||||||
Realized and unrealized gains (losses) on marketable securities
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Other comprehensive income
|
160
|
|
|
32
|
|
|
192
|
|
|
246
|
|
|
8
|
|
|
254
|
|
||||||
Comprehensive income
|
598
|
|
|
65
|
|
|
663
|
|
|
98
|
|
|
33
|
|
|
131
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other changes in equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash dividends—ordinary shares
|
(240
|
)
|
|
—
|
|
|
(240
|
)
|
|
(235
|
)
|
|
—
|
|
|
(235
|
)
|
||||||
Dividends attributable to noncontrolling
interests
|
—
|
|
|
(43
|
)
|
|
(43
|
)
|
|
—
|
|
|
(47
|
)
|
|
(47
|
)
|
||||||
Repurchases of ordinary shares
|
(49
|
)
|
|
—
|
|
|
(49
|
)
|
|
(119
|
)
|
|
—
|
|
|
(119
|
)
|
||||||
Change in noncontrolling interest share
|
—
|
|
|
19
|
|
|
19
|
|
|
—
|
|
|
8
|
|
|
8
|
|
||||||
Spin-off of Adient
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
(18
|
)
|
||||||
Other, including options exercised
|
30
|
|
|
—
|
|
|
30
|
|
|
85
|
|
|
—
|
|
|
85
|
|
||||||
Ending balance, March 31
|
$
|
20,874
|
|
|
$
|
1,006
|
|
|
$
|
21,880
|
|
|
$
|
19,388
|
|
|
$
|
813
|
|
|
$
|
20,201
|
|
|
Six Months Ended March 31, 2018
|
|
Six Months Ended March 31, 2017
|
||||||||||||||||||||
|
Equity
Attributable to
Johnson Controls International plc
|
|
Equity
Attributable to
Noncontrolling
Interests
|
|
Total
Equity
|
|
Equity
Attributable to
Johnson Controls International plc
|
|
Equity
Attributable to
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance, September 30,
|
$
|
20,447
|
|
|
$
|
920
|
|
|
$
|
21,367
|
|
|
$
|
24,118
|
|
|
$
|
972
|
|
|
$
|
25,090
|
|
Total comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
668
|
|
|
61
|
|
|
729
|
|
|
181
|
|
|
61
|
|
|
242
|
|
||||||
Foreign currency translation adjustments
|
226
|
|
|
47
|
|
|
273
|
|
|
(418
|
)
|
|
(25
|
)
|
|
(443
|
)
|
||||||
Realized and unrealized gains (losses) on derivatives
|
(5
|
)
|
|
2
|
|
|
(3
|
)
|
|
(6
|
)
|
|
2
|
|
|
(4
|
)
|
||||||
Realized and unrealized gains (losses) on marketable securities
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||
Other comprehensive income (loss)
|
219
|
|
|
49
|
|
|
268
|
|
|
(415
|
)
|
|
(23
|
)
|
|
(438
|
)
|
||||||
Comprehensive income (loss)
|
887
|
|
|
110
|
|
|
997
|
|
|
(234
|
)
|
|
38
|
|
|
(196
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other changes in equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash dividends—ordinary shares
|
(482
|
)
|
|
—
|
|
|
(482
|
)
|
|
(471
|
)
|
|
—
|
|
|
(471
|
)
|
||||||
Dividends attributable to noncontrolling
interests
|
—
|
|
|
(43
|
)
|
|
(43
|
)
|
|
—
|
|
|
(47
|
)
|
|
(47
|
)
|
||||||
Repurchases of ordinary shares
|
(199
|
)
|
|
—
|
|
|
(199
|
)
|
|
(119
|
)
|
|
—
|
|
|
(119
|
)
|
||||||
Change in noncontrolling interest share
|
—
|
|
|
19
|
|
|
19
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
||||||
Adoption of ASU 2016-09
|
179
|
|
|
—
|
|
|
179
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Spin-off of Adient
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,038
|
)
|
|
(138
|
)
|
|
(4,176
|
)
|
||||||
Other, including options exercised
|
42
|
|
|
—
|
|
|
42
|
|
|
132
|
|
|
—
|
|
|
132
|
|
||||||
Ending balance, March 31
|
$
|
20,874
|
|
|
$
|
1,006
|
|
|
$
|
21,880
|
|
|
$
|
19,388
|
|
|
$
|
813
|
|
|
$
|
20,201
|
|
|
Three Months Ended
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Beginning balance, December 31
|
$
|
226
|
|
|
$
|
159
|
|
Net income
|
12
|
|
|
8
|
|
||
Foreign currency translation adjustments
|
5
|
|
|
1
|
|
||
Realized and unrealized losses on derivatives
|
(5
|
)
|
|
—
|
|
||
Dividends
|
(3
|
)
|
|
—
|
|
||
Ending balance, March 31
|
$
|
235
|
|
|
$
|
168
|
|
|
|
|
|
||||
|
Six Months Ended
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Beginning balance, September 30
|
$
|
211
|
|
|
$
|
234
|
|
Net income
|
25
|
|
|
21
|
|
||
Foreign currency translation adjustments
|
10
|
|
|
(8
|
)
|
||
Realized and unrealized losses on derivatives
|
(8
|
)
|
|
—
|
|
||
Dividends
|
(3
|
)
|
|
(43
|
)
|
||
Spin-off of Adient
|
—
|
|
|
(36
|
)
|
||
Ending balance, March 31
|
$
|
235
|
|
|
$
|
168
|
|
|
Three Months Ended
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Foreign currency translation adjustments ("CTA")
|
|
|
|
||||
Balance at beginning of period
|
$
|
(423
|
)
|
|
$
|
(1,248
|
)
|
Aggregate adjustment for the period (net of tax effect of $0)
|
168
|
|
|
241
|
|
||
Balance at end of period
|
(255
|
)
|
|
(1,007
|
)
|
||
|
|
|
|
||||
Realized and unrealized gains (losses) on derivatives
|
|
|
|
||||
Balance at beginning of period
|
7
|
|
|
20
|
|
||
Current period changes in fair value (net of tax effect of $(2) and $0)
|
(4
|
)
|
|
1
|
|
||
Reclassification to income (net of tax effect of $0 and $(4)) **
|
(2
|
)
|
|
(7
|
)
|
||
Balance at end of period
|
1
|
|
|
14
|
|
||
|
|
|
|
||||
Realized and unrealized gains (losses) on marketable securities
|
|
|
|
||||
Balance at beginning of period
|
4
|
|
|
(3
|
)
|
||
Current period changes in fair value (net of tax effect of $0)
|
(2
|
)
|
|
11
|
|
||
Balance at end of period
|
2
|
|
|
8
|
|
||
|
|
|
|
||||
Pension and postretirement plans
|
|
|
|
||||
Balance at beginning of period
|
(2
|
)
|
|
(2
|
)
|
||
Other changes
|
—
|
|
|
—
|
|
||
Balance at end of period
|
(2
|
)
|
|
(2
|
)
|
||
|
|
|
|
||||
Accumulated other comprehensive loss, end of period
|
$
|
(254
|
)
|
|
$
|
(987
|
)
|
|
|
|
|
||||
|
Six Months Ended
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
CTA
|
|
|
|
||||
Balance at beginning of period
|
$
|
(481
|
)
|
|
$
|
(1,152
|
)
|
Aggregate adjustment for the period (net of tax effect of $1 and $5) *
|
226
|
|
|
(418
|
)
|
||
Adient spin-off impact (net of tax effect of $0)
|
—
|
|
|
563
|
|
||
Balance at end of period
|
(255
|
)
|
|
(1,007
|
)
|
||
|
|
|
|
||||
Realized and unrealized gains (losses) on derivatives
|
|
|
|
||||
Balance at beginning of period
|
6
|
|
|
4
|
|
||
Current period changes in fair value (net of tax effect of $1 and $4)
|
2
|
|
|
7
|
|
||
Reclassification to income (net of tax effect of $(2) and $(7)) **
|
(7
|
)
|
|
(13
|
)
|
||
Adient spin-off impact (net of tax effect of $0 and $6)
|
—
|
|
|
16
|
|
||
Balance at end of period
|
1
|
|
|
14
|
|
||
|
|
|
|
||||
Realized and unrealized gains (losses) on marketable securities
|
|
|
|
||||
Balance at beginning of period
|
4
|
|
|
(1
|
)
|
||
Current period changes in fair value (net of tax effect of $0)
|
(2
|
)
|
|
9
|
|
||
Balance at end of period
|
2
|
|
|
8
|
|
||
|
|
|
|
||||
Pension and postretirement plans
|
|
|
|
||||
Balance at beginning of period
|
(2
|
)
|
|
(4
|
)
|
||
Adient spin-off impact (net of tax effect of $0)
|
—
|
|
|
2
|
|
||
Balance at end of period
|
(2
|
)
|
|
(2
|
)
|
||
|
|
|
|
||||
Accumulated other comprehensive loss, end of period
|
$
|
(254
|
)
|
|
$
|
(987
|
)
|
15.
|
Derivative Instruments and Hedging Activities
|
|
|
Volume Outstanding as of
|
||||
Commodity
|
|
March 31, 2018
|
|
September 30, 2017
|
||
|
|
|
|
|
||
Copper
|
|
3,901
|
|
|
1,962
|
|
Polypropylene
|
|
16,561
|
|
|
19,563
|
|
Lead
|
|
6,500
|
|
|
24,705
|
|
Aluminum
|
|
4,525
|
|
|
2,169
|
|
Tin
|
|
2,015
|
|
|
1,715
|
|
|
Derivatives and Hedging Activities Designated
as Hedging Instruments under ASC 815
|
|
Derivatives and Hedging Activities Not
Designated as Hedging Instruments under ASC 815
|
||||||||||||
|
March 31,
|
|
September 30,
|
|
March 31,
|
|
September 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Other current assets
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange derivatives
|
$
|
26
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commodity derivatives
|
3
|
|
|
9
|
|
|
—
|
|
|
—
|
|
||||
Other noncurrent assets
|
|
|
|
|
|
|
|
||||||||
Equity swap
|
—
|
|
|
—
|
|
|
63
|
|
|
55
|
|
||||
Total assets
|
$
|
29
|
|
|
$
|
36
|
|
|
$
|
63
|
|
|
$
|
55
|
|
|
|
|
|
|
|
|
|
||||||||
Other current liabilities
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange derivatives
|
$
|
15
|
|
|
$
|
21
|
|
|
$
|
22
|
|
|
$
|
25
|
|
Commodity derivatives
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Long-term debt
|
|
|
|
|
|
|
|
||||||||
Foreign currency denominated debt
|
3,081
|
|
|
2,058
|
|
|
—
|
|
|
—
|
|
||||
Total liabilities
|
$
|
3,098
|
|
|
$
|
2,080
|
|
|
$
|
22
|
|
|
$
|
25
|
|
|
|
Fair Value of Assets
|
|
Fair Value of Liabilities
|
||||||||||||
|
|
March 31,
|
|
September 30,
|
|
March 31,
|
|
September 30,
|
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gross amount recognized
|
|
$
|
92
|
|
|
$
|
91
|
|
|
$
|
3,120
|
|
|
$
|
2,105
|
|
Gross amount eligible for offsetting
|
|
(20
|
)
|
|
(16
|
)
|
|
(20
|
)
|
|
(16
|
)
|
||||
Net amount
|
|
$
|
72
|
|
|
$
|
75
|
|
|
$
|
3,100
|
|
|
$
|
2,089
|
|
Derivatives in ASC 815 Cash Flow
Hedging Relationships
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
Foreign currency exchange derivatives
|
|
$
|
(5
|
)
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
6
|
|
Commodity derivatives
|
|
(1
|
)
|
|
3
|
|
|
2
|
|
|
5
|
|
||||
Total
|
|
$
|
(6
|
)
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
11
|
|
Derivatives in ASC 815 Cash Flow Hedging Relationships
|
|
Location of Gain (Loss) Reclassified from AOCI into Income
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||||
Foreign currency exchange derivatives
|
|
Cost of sales
|
|
$
|
(2
|
)
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
16
|
|
Commodity derivatives
|
|
Cost of sales
|
|
4
|
|
|
3
|
|
|
9
|
|
|
4
|
|
||||
Total
|
|
|
|
$
|
2
|
|
|
$
|
11
|
|
|
$
|
9
|
|
|
$
|
20
|
|
Derivatives in ASC 815 Fair Value
Hedging Relationships
|
|
Location of Gain (Loss) Recognized in Income on Derivative
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||||
Interest rate swap
|
|
Net financing charges
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Fixed rate debt swapped to floating
|
|
Net financing charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Total
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
|
|
Amount of Gain (Loss) Recognized in
Income on Derivative
|
||||||||||||||
Derivatives Not Designated as Hedging Instruments under ASC 815
|
|
Location of Gain (Loss)
Recognized in Income on Derivative
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||||
Foreign currency exchange derivatives
|
|
Cost of sales
|
|
$
|
(4
|
)
|
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
3
|
|
Foreign currency exchange derivatives
|
|
Net financing charges
|
|
(3
|
)
|
|
5
|
|
|
1
|
|
|
9
|
|
||||
Foreign currency exchange derivatives
|
|
Income tax provision
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(3
|
)
|
||||
Foreign currency exchange derivatives
|
|
Income (loss) from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Equity swap
|
|
Selling, general and administrative
|
|
(5
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
||||
Total
|
|
|
|
$
|
(12
|
)
|
|
$
|
7
|
|
|
$
|
(6
|
)
|
|
$
|
14
|
|
16.
|
Fair Value Measurements
|
|
Fair Value Measurements Using:
|
||||||||||||||
|
Total as of
March 31, 2018
|
|
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
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
—
|
|
Commodity derivatives
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Exchange traded funds (fixed income)
1
|
29
|
|
|
29
|
|
|
—
|
|
|
—
|
|
||||
Other noncurrent assets
|
|
|
|
|
|
|
|
||||||||
Investments in marketable common stock
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||
Deferred compensation plan assets
|
95
|
|
|
95
|
|
|
—
|
|
|
—
|
|
||||
Exchange traded funds (fixed income)
1
|
137
|
|
|
137
|
|
|
—
|
|
|
—
|
|
||||
Exchange traded funds (equity)
1
|
108
|
|
|
108
|
|
|
—
|
|
|
—
|
|
||||
Equity swap
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
|
||||
Total assets
|
$
|
468
|
|
|
$
|
376
|
|
|
$
|
92
|
|
|
$
|
—
|
|
Other current liabilities
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange derivatives
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
Commodity derivatives
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Total liabilities
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
—
|
|
17.
|
Impairment of Long-Lived Assets
|
18.
|
Segment Information
|
•
|
The “Systems and Service North America” segment is now part of the new “Building Solutions North America” reportable segment.
|
•
|
The North America Unitary Products business, Air Distribution Technologies business and refrigeration systems business, as well as HVAC products installed for Marine customers, previously included in the “Products North America” segment, are now part of the new reportable segment “Global Products.” The systems and products installation business for U.S. Navy customers, previously included in the “Products North America” segment, is now part of the new “Building Solutions North America” reportable segment.
|
•
|
The systems and service business within the former “Asia” segment is now part of the new “Building Solutions Asia Pacific” reportable segment. The HVAC products manufacturing business and the Johnson Controls-Hitachi joint venture, previously part of the “Asia” segment, are now part of the new “Global Products” reportable segment.
|
•
|
The systems and service businesses in Europe, the Middle East and Latin America within the former “Rest of World” segment are now part of the new “Building Solutions EMEA/LA” reportable segment. The HVAC products manufacturing businesses, previously part of the “Rest of World” segment, are now part of the new “Global Products” reportable segment.
|
•
|
As the Company has integrated the legacy Tyco business with its legacy Building Efficiency business for segment reporting purposes, Tyco is no longer a separate reportable segment. The Tyco businesses are now included throughout the new reportable segments.
|
•
|
Building Solutions North America designs, sells, installs, and services HVAC and controls systems, integrated electronic security systems (including monitoring), and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional and governmental customers in North America. Building Solutions North America also provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, to non-residential building and industrial applications in the North American marketplace.
|
•
|
Building Solutions EMEA/LA designs, sells, installs, and services HVAC, controls, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and provides technical services to markets in Europe, the Middle East, Africa and Latin America.
|
•
|
Building Solutions Asia Pacific designs, sells, installs, and services HVAC, controls, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and provides technical services to the Asia Pacific marketplace.
|
•
|
Global Products designs and produces heating and air conditioning for residential and commercial applications, and markets products and refrigeration systems to replacement and new construction market customers globally. The Global Products business also designs, manufactures and sells fire protection and security products, including intrusion security, anti-theft devices, and access control and video management systems, for commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide. Global Products also includes the Johnson Controls-Hitachi joint venture, which was formed October 1, 2015, and included the Scott Safety business, prior to its sale on October 4, 2017.
|
|
Net Sales
|
||||||||||||||
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Building Technologies & Solutions
|
|
|
|
|
|
|
|
||||||||
Building Solutions North America
|
$
|
2,097
|
|
|
$
|
2,097
|
|
|
$
|
4,109
|
|
|
$
|
4,039
|
|
Building Solutions EMEA/LA
|
907
|
|
|
898
|
|
|
1,822
|
|
|
1,773
|
|
||||
Building Solutions Asia Pacific
|
586
|
|
|
562
|
|
|
1,183
|
|
|
1,137
|
|
||||
Global Products
|
2,040
|
|
|
2,014
|
|
|
3,821
|
|
|
3,808
|
|
||||
|
5,630
|
|
|
5,571
|
|
|
10,935
|
|
|
10,757
|
|
||||
Power Solutions
|
1,845
|
|
|
1,696
|
|
|
3,975
|
|
|
3,596
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total net sales
|
$
|
7,475
|
|
|
$
|
7,267
|
|
|
$
|
14,910
|
|
|
$
|
14,353
|
|
|
Segment EBITA
|
||||||||||||||
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Building Technologies & Solutions
|
|
|
|
|
|
|
|
||||||||
Building Solutions North America
|
$
|
239
|
|
|
$
|
255
|
|
|
$
|
466
|
|
|
$
|
451
|
|
Building Solutions EMEA/LA
|
77
|
|
|
89
|
|
|
146
|
|
|
138
|
|
||||
Building Solutions Asia Pacific
|
71
|
|
|
67
|
|
|
145
|
|
|
130
|
|
||||
Global Products
|
228
|
|
|
242
|
|
|
514
|
|
|
369
|
|
||||
|
615
|
|
|
653
|
|
|
1,271
|
|
|
1,088
|
|
||||
Power Solutions
|
314
|
|
|
303
|
|
|
698
|
|
|
692
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total segment EBITA
|
$
|
929
|
|
|
$
|
956
|
|
|
$
|
1,969
|
|
|
$
|
1,780
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate expenses
|
$
|
(159
|
)
|
|
$
|
(240
|
)
|
|
$
|
(293
|
)
|
|
$
|
(433
|
)
|
Amortization of intangible assets
|
(94
|
)
|
|
(126
|
)
|
|
(188
|
)
|
|
(275
|
)
|
||||
Restructuring and impairment costs
|
—
|
|
|
(99
|
)
|
|
(158
|
)
|
|
(177
|
)
|
||||
Net mark-to-market adjustments on pension
plans
|
—
|
|
|
18
|
|
|
—
|
|
|
135
|
|
||||
Net financing charges
|
(115
|
)
|
|
(116
|
)
|
|
(231
|
)
|
|
(252
|
)
|
||||
Income from continuing operations
before income taxes
|
$
|
561
|
|
|
$
|
393
|
|
|
$
|
1,099
|
|
|
$
|
778
|
|
19.
|
Guarantees
|
|
Six Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Balance at beginning of period
|
$
|
409
|
|
|
$
|
374
|
|
Accruals for warranties issued during the period
|
159
|
|
|
152
|
|
||
Accruals from acquisition and divestitures
|
—
|
|
|
(5
|
)
|
||
Accruals related to pre-existing warranties
|
(8
|
)
|
|
(2
|
)
|
||
Settlements made (in cash or in kind) during the period
|
(165
|
)
|
|
(146
|
)
|
||
Currency translation
|
5
|
|
|
(2
|
)
|
||
Balance at end of period
|
$
|
400
|
|
|
$
|
371
|
|
20.
|
Tyco International Finance S.A.
|
(in millions)
|
Johnson Controls
International plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,475
|
|
|
$
|
—
|
|
|
$
|
7,475
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
—
|
|
|
5,255
|
|
|
—
|
|
|
5,255
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit
|
—
|
|
|
—
|
|
|
—
|
|
|
2,220
|
|
|
—
|
|
|
2,220
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative
expenses
|
(7
|
)
|
|
—
|
|
|
11
|
|
|
(1,592
|
)
|
|
—
|
|
|
(1,588
|
)
|
||||||
Net financing charges
|
(86
|
)
|
|
23
|
|
|
(3
|
)
|
|
(49
|
)
|
|
—
|
|
|
(115
|
)
|
||||||
Equity income (loss)
|
582
|
|
|
439
|
|
|
(9
|
)
|
|
44
|
|
|
(1,012
|
)
|
|
44
|
|
||||||
Intercompany interest and fees
|
(51
|
)
|
|
70
|
|
|
(17
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before income taxes
|
438
|
|
|
532
|
|
|
(18
|
)
|
|
621
|
|
|
(1,012
|
)
|
|
561
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
78
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing
operations
|
438
|
|
|
532
|
|
|
(18
|
)
|
|
543
|
|
|
(1,012
|
)
|
|
483
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss from sale of intercompany
investment, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(953
|
)
|
|
953
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
438
|
|
|
532
|
|
|
(18
|
)
|
|
(410
|
)
|
|
(59
|
)
|
|
483
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
attributable to noncontrolling
interests
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
45
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to
Johnson Controls
|
$
|
438
|
|
|
$
|
532
|
|
|
$
|
(18
|
)
|
|
$
|
(455
|
)
|
|
$
|
(59
|
)
|
|
$
|
438
|
|
(in millions)
|
Johnson Controls
International
plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
438
|
|
|
$
|
532
|
|
|
$
|
(18
|
)
|
|
$
|
(410
|
)
|
|
$
|
(59
|
)
|
|
$
|
483
|
|
Other comprehensive income (loss),
net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation
adjustments
|
168
|
|
|
(16
|
)
|
|
(2
|
)
|
|
388
|
|
|
(334
|
)
|
|
204
|
|
||||||
Realized and unrealized losses
on derivatives
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
6
|
|
|
(10
|
)
|
||||||
Realized and unrealized losses
on marketable securities
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|
(2
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
160
|
|
|
(16
|
)
|
|
(2
|
)
|
|
376
|
|
|
(326
|
)
|
|
192
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total comprehensive income (loss)
|
598
|
|
|
516
|
|
|
(20
|
)
|
|
(34
|
)
|
|
(385
|
)
|
|
675
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
—
|
|
|
77
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
attributable to Johnson Controls
|
$
|
598
|
|
|
$
|
516
|
|
|
$
|
(20
|
)
|
|
$
|
(111
|
)
|
|
$
|
(385
|
)
|
|
$
|
598
|
|
(in millions)
|
Johnson Controls
International plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,910
|
|
|
$
|
—
|
|
|
$
|
14,910
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
—
|
|
|
10,521
|
|
|
—
|
|
|
10,521
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit
|
—
|
|
|
—
|
|
|
—
|
|
|
4,389
|
|
|
—
|
|
|
4,389
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative
expenses
|
(10
|
)
|
|
—
|
|
|
11
|
|
|
(3,006
|
)
|
|
—
|
|
|
(3,005
|
)
|
||||||
Restructuring and impairment costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(158
|
)
|
|
—
|
|
|
(158
|
)
|
||||||
Net financing charges
|
(136
|
)
|
|
24
|
|
|
(5
|
)
|
|
(114
|
)
|
|
—
|
|
|
(231
|
)
|
||||||
Equity income
|
867
|
|
|
627
|
|
|
133
|
|
|
104
|
|
|
(1,627
|
)
|
|
104
|
|
||||||
Intercompany interest and fees
|
(53
|
)
|
|
155
|
|
|
(46
|
)
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
before income taxes
|
668
|
|
|
806
|
|
|
93
|
|
|
1,159
|
|
|
(1,627
|
)
|
|
1,099
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|
345
|
|
|
—
|
|
|
345
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
|
668
|
|
|
806
|
|
|
93
|
|
|
814
|
|
|
(1,627
|
)
|
|
754
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss from sale of intercompany
investment, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(953
|
)
|
|
953
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
668
|
|
|
806
|
|
|
93
|
|
|
(139
|
)
|
|
(674
|
)
|
|
754
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
attributable to noncontrolling
interests
|
—
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|
86
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to
Johnson Controls
|
$
|
668
|
|
|
$
|
806
|
|
|
$
|
93
|
|
|
$
|
(225
|
)
|
|
$
|
(674
|
)
|
|
$
|
668
|
|
(in millions)
|
Johnson Controls
International
plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
668
|
|
|
$
|
806
|
|
|
$
|
93
|
|
|
$
|
(139
|
)
|
|
$
|
(674
|
)
|
|
$
|
754
|
|
Other comprehensive income (loss),
net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation
adjustments
|
226
|
|
|
(23
|
)
|
|
(3
|
)
|
|
441
|
|
|
(358
|
)
|
|
283
|
|
||||||
Realized and unrealized losses
on derivatives
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
5
|
|
|
(11
|
)
|
||||||
Realized and unrealized gains
(losses) on marketable securities
|
(2
|
)
|
|
—
|
|
|
(4
|
)
|
|
2
|
|
|
2
|
|
|
(2
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
219
|
|
|
(23
|
)
|
|
(7
|
)
|
|
432
|
|
|
(351
|
)
|
|
270
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total comprehensive income
|
887
|
|
|
783
|
|
|
86
|
|
|
293
|
|
|
(1,025
|
)
|
|
1,024
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
137
|
|
|
—
|
|
|
137
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income attributable
to Johnson Controls
|
$
|
887
|
|
|
$
|
783
|
|
|
$
|
86
|
|
|
$
|
156
|
|
|
$
|
(1,025
|
)
|
|
$
|
887
|
|
(in millions)
|
Johnson Controls
International plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,267
|
|
|
$
|
—
|
|
|
$
|
7,267
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
—
|
|
|
4,986
|
|
|
—
|
|
|
4,986
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit
|
—
|
|
|
—
|
|
|
—
|
|
|
2,281
|
|
|
—
|
|
|
2,281
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative
expenses
|
(4
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1,721
|
)
|
|
—
|
|
|
(1,726
|
)
|
||||||
Restructuring and impairment costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
(99
|
)
|
||||||
Net financing charges
|
(59
|
)
|
|
—
|
|
|
5
|
|
|
(62
|
)
|
|
—
|
|
|
(116
|
)
|
||||||
Equity income (loss)
|
(103
|
)
|
|
(187
|
)
|
|
(382
|
)
|
|
53
|
|
|
672
|
|
|
53
|
|
||||||
Intercompany interest and fees
|
18
|
|
|
73
|
|
|
20
|
|
|
(111
|
)
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing
operations before income taxes
|
(148
|
)
|
|
(114
|
)
|
|
(358
|
)
|
|
341
|
|
|
672
|
|
|
393
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|
508
|
|
|
—
|
|
|
508
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss
|
(148
|
)
|
|
(114
|
)
|
|
(358
|
)
|
|
(167
|
)
|
|
672
|
|
|
(115
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
attributable to noncontrolling
interests
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss attributable to
Johnson Controls
|
$
|
(148
|
)
|
|
$
|
(114
|
)
|
|
$
|
(358
|
)
|
|
$
|
(200
|
)
|
|
$
|
672
|
|
|
$
|
(148
|
)
|
(in millions)
|
Johnson Controls
International
plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss
|
$
|
(148
|
)
|
|
$
|
(114
|
)
|
|
$
|
(358
|
)
|
|
$
|
(167
|
)
|
|
$
|
672
|
|
|
$
|
(115
|
)
|
Other comprehensive income (loss),
net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation
adjustments
|
241
|
|
|
(7
|
)
|
|
(1
|
)
|
|
260
|
|
|
(241
|
)
|
|
252
|
|
||||||
Realized and unrealized losses
on derivatives
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
6
|
|
|
(8
|
)
|
||||||
Realized and unrealized gains
on marketable securities
|
11
|
|
|
—
|
|
|
7
|
|
|
4
|
|
|
(11
|
)
|
|
11
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
246
|
|
|
(7
|
)
|
|
6
|
|
|
256
|
|
|
(246
|
)
|
|
255
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total comprehensive income (loss)
|
98
|
|
|
(121
|
)
|
|
(352
|
)
|
|
89
|
|
|
426
|
|
|
140
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
42
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
attributable to Johnson Controls
|
$
|
98
|
|
|
$
|
(121
|
)
|
|
$
|
(352
|
)
|
|
$
|
47
|
|
|
$
|
426
|
|
|
$
|
98
|
|
(in millions)
|
Johnson Controls
International plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,353
|
|
|
$
|
—
|
|
|
$
|
14,353
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
—
|
|
|
9,958
|
|
|
—
|
|
|
9,958
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit
|
—
|
|
|
—
|
|
|
—
|
|
|
4,395
|
|
|
—
|
|
|
4,395
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative
expenses
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(3,290
|
)
|
|
—
|
|
|
(3,296
|
)
|
||||||
Restructuring and impairment costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(177
|
)
|
|
—
|
|
|
(177
|
)
|
||||||
Net financing charges
|
(78
|
)
|
|
—
|
|
|
(14
|
)
|
|
(160
|
)
|
|
—
|
|
|
(252
|
)
|
||||||
Equity income (loss)
|
215
|
|
|
(473
|
)
|
|
(492
|
)
|
|
108
|
|
|
750
|
|
|
108
|
|
||||||
Intercompany interest and fees
|
50
|
|
|
73
|
|
|
37
|
|
|
(160
|
)
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing
operations before income taxes
|
181
|
|
|
(400
|
)
|
|
(469
|
)
|
|
716
|
|
|
750
|
|
|
778
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|
481
|
|
|
—
|
|
|
481
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing
operations
|
181
|
|
|
(400
|
)
|
|
(469
|
)
|
|
235
|
|
|
750
|
|
|
297
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss from sale of intercompany
investment, net of tax
|
—
|
|
|
—
|
|
|
(935
|
)
|
|
—
|
|
|
935
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss from discontinued
operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
(34
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
181
|
|
|
(400
|
)
|
|
(1,404
|
)
|
|
201
|
|
|
1,685
|
|
|
263
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
attributable to noncontrolling
interests
|
—
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|
73
|
|
||||||
Income from discontinued
operations attributable to
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to
Johnson Controls
|
$
|
181
|
|
|
$
|
(400
|
)
|
|
$
|
(1,404
|
)
|
|
$
|
119
|
|
|
$
|
1,685
|
|
|
$
|
181
|
|
(in millions)
|
Johnson Controls
International
plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
181
|
|
|
$
|
(400
|
)
|
|
$
|
(1,404
|
)
|
|
$
|
201
|
|
|
$
|
1,685
|
|
|
$
|
263
|
|
Other comprehensive income (loss),
net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation
adjustments
|
(418
|
)
|
|
(7
|
)
|
|
26
|
|
|
(470
|
)
|
|
418
|
|
|
(451
|
)
|
||||||
Realized and unrealized losses
on derivatives
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
6
|
|
|
(4
|
)
|
||||||
Realized and unrealized gains
on marketable securities
|
9
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
(9
|
)
|
|
9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
(415
|
)
|
|
(7
|
)
|
|
33
|
|
|
(472
|
)
|
|
415
|
|
|
(446
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total comprehensive loss
|
(234
|
)
|
|
(407
|
)
|
|
(1,371
|
)
|
|
(271
|
)
|
|
2,100
|
|
|
(183
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive loss attributable to Johnson Controls
|
$
|
(234
|
)
|
|
$
|
(407
|
)
|
|
$
|
(1,371
|
)
|
|
$
|
(322
|
)
|
|
$
|
2,100
|
|
|
$
|
(234
|
)
|
(in millions)
|
Johnson Controls
International
plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
304
|
|
|
$
|
161
|
|
|
$
|
1,293
|
|
|
$
|
(1,490
|
)
|
|
$
|
268
|
|
Accounts receivable - net
|
—
|
|
|
—
|
|
|
—
|
|
|
6,679
|
|
|
—
|
|
|
6,679
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
—
|
|
|
3,565
|
|
|
—
|
|
|
3,565
|
|
||||||
Intercompany receivables
|
48
|
|
|
2,206
|
|
|
365
|
|
|
23,090
|
|
|
(25,709
|
)
|
|
—
|
|
||||||
Assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
22
|
|
||||||
Other current assets
|
11
|
|
|
2
|
|
|
2
|
|
|
1,722
|
|
|
—
|
|
|
1,737
|
|
||||||
Current assets
|
59
|
|
|
2,512
|
|
|
528
|
|
|
36,371
|
|
|
(27,199
|
)
|
|
12,271
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment - net
|
—
|
|
|
—
|
|
|
—
|
|
|
6,235
|
|
|
—
|
|
|
6,235
|
|
||||||
Goodwill
|
243
|
|
|
—
|
|
|
32
|
|
|
19,531
|
|
|
—
|
|
|
19,806
|
|
||||||
Other intangible assets - net
|
—
|
|
|
—
|
|
|
—
|
|
|
6,625
|
|
|
—
|
|
|
6,625
|
|
||||||
Investments in partially-owned
affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
1,294
|
|
|
—
|
|
|
1,294
|
|
||||||
Investments in affiliates
|
39,838
|
|
|
33,681
|
|
|
21,456
|
|
|
—
|
|
|
(94,975
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
—
|
|
|
4,140
|
|
|
2,836
|
|
|
9,004
|
|
|
(15,980
|
)
|
|
—
|
|
||||||
Other noncurrent assets
|
63
|
|
|
—
|
|
|
3
|
|
|
3,655
|
|
|
—
|
|
|
3,721
|
|
||||||
Total assets
|
$
|
40,203
|
|
|
$
|
40,333
|
|
|
$
|
24,855
|
|
|
$
|
82,715
|
|
|
$
|
(138,154
|
)
|
|
$
|
49,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term debt
|
$
|
2,163
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
429
|
|
|
$
|
(1,490
|
)
|
|
$
|
1,111
|
|
Current portion of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
||||||
Accounts payable
|
1
|
|
|
—
|
|
|
—
|
|
|
4,249
|
|
|
—
|
|
|
4,250
|
|
||||||
Accrued compensation and benefits
|
1
|
|
|
—
|
|
|
—
|
|
|
865
|
|
|
—
|
|
|
866
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
1,543
|
|
|
—
|
|
|
1,543
|
|
||||||
Intercompany payables
|
3,361
|
|
|
19,459
|
|
|
2,031
|
|
|
858
|
|
|
(25,709
|
)
|
|
—
|
|
||||||
Other current liabilities
|
303
|
|
|
13
|
|
|
27
|
|
|
2,854
|
|
|
—
|
|
|
3,197
|
|
||||||
Current liabilities
|
5,829
|
|
|
19,481
|
|
|
2,058
|
|
|
10,823
|
|
|
(27,199
|
)
|
|
10,992
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
8,812
|
|
|
—
|
|
|
155
|
|
|
1,995
|
|
|
—
|
|
|
10,962
|
|
||||||
Pension and postretirement benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
864
|
|
|
—
|
|
|
864
|
|
||||||
Intercompany loans payable
|
4,688
|
|
|
—
|
|
|
4,316
|
|
|
6,976
|
|
|
(15,980
|
)
|
|
—
|
|
||||||
Other noncurrent liabilities
|
—
|
|
|
—
|
|
|
24
|
|
|
4,995
|
|
|
—
|
|
|
5,019
|
|
||||||
Long-term liabilities
|
13,500
|
|
|
—
|
|
|
4,495
|
|
|
14,830
|
|
|
(15,980
|
)
|
|
16,845
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
235
|
|
|
—
|
|
|
235
|
|
||||||
Ordinary shares
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
Ordinary shares held in treasury
|
(946
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(946
|
)
|
||||||
Other shareholders' equity
|
21,811
|
|
|
20,852
|
|
|
18,302
|
|
|
55,821
|
|
|
(94,975
|
)
|
|
21,811
|
|
||||||
Shareholders’ equity attributable to Johnson Controls
|
20,874
|
|
|
20,852
|
|
|
18,302
|
|
|
55,821
|
|
|
(94,975
|
)
|
|
20,874
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
1,006
|
|
|
—
|
|
|
1,006
|
|
||||||
Total equity
|
20,874
|
|
|
20,852
|
|
|
18,302
|
|
|
56,827
|
|
|
(94,975
|
)
|
|
21,880
|
|
||||||
Total liabilities and equity
|
$
|
40,203
|
|
|
$
|
40,333
|
|
|
$
|
24,855
|
|
|
$
|
82,715
|
|
|
$
|
(138,154
|
)
|
|
$
|
49,952
|
|
(in millions)
|
Johnson Controls
International
plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
107
|
|
|
$
|
382
|
|
|
$
|
718
|
|
|
$
|
(886
|
)
|
|
$
|
321
|
|
Accounts receivable - net
|
—
|
|
|
—
|
|
|
—
|
|
|
6,666
|
|
|
—
|
|
|
6,666
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
—
|
|
|
3,209
|
|
|
—
|
|
|
3,209
|
|
||||||
Intercompany receivables
|
1,580
|
|
|
1,732
|
|
|
55
|
|
|
4,470
|
|
|
(7,837
|
)
|
|
—
|
|
||||||
Assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
189
|
|
||||||
Other current assets
|
14
|
|
|
—
|
|
|
1
|
|
|
1,892
|
|
|
—
|
|
|
1,907
|
|
||||||
Current assets
|
$
|
1,594
|
|
|
$
|
1,839
|
|
|
$
|
438
|
|
|
$
|
17,144
|
|
|
$
|
(8,723
|
)
|
|
$
|
12,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment - net
|
—
|
|
|
—
|
|
|
—
|
|
|
6,121
|
|
|
—
|
|
|
6,121
|
|
||||||
Goodwill
|
243
|
|
|
—
|
|
|
32
|
|
|
19,413
|
|
|
—
|
|
|
19,688
|
|
||||||
Other intangible assets - net
|
—
|
|
|
—
|
|
|
—
|
|
|
6,741
|
|
|
—
|
|
|
6,741
|
|
||||||
Investments in partially-owned affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
1,191
|
|
|
—
|
|
|
1,191
|
|
||||||
Investments in affiliates
|
19,487
|
|
|
31,594
|
|
|
21,132
|
|
|
—
|
|
|
(72,213
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
17,908
|
|
|
4,140
|
|
|
2,836
|
|
|
9,004
|
|
|
(33,888
|
)
|
|
—
|
|
||||||
Noncurrent assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
1,920
|
|
|
—
|
|
|
1,920
|
|
||||||
Other noncurrent assets
|
56
|
|
|
—
|
|
|
7
|
|
|
3,868
|
|
|
—
|
|
|
3,931
|
|
||||||
Total assets
|
$
|
39,288
|
|
|
$
|
37,573
|
|
|
$
|
24,445
|
|
|
$
|
65,402
|
|
|
$
|
(114,824
|
)
|
|
$
|
51,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term debt
|
$
|
1,476
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
624
|
|
|
$
|
(886
|
)
|
|
$
|
1,214
|
|
Current portion of long-term debt
|
307
|
|
|
—
|
|
|
18
|
|
|
69
|
|
|
—
|
|
|
394
|
|
||||||
Accounts payable
|
—
|
|
|
—
|
|
|
—
|
|
|
4,271
|
|
|
—
|
|
|
4,271
|
|
||||||
Accrued compensation and benefits
|
4
|
|
|
—
|
|
|
—
|
|
|
1,067
|
|
|
—
|
|
|
1,071
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
1,279
|
|
|
—
|
|
|
1,279
|
|
||||||
Liabilities held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
72
|
|
||||||
Intercompany payables
|
4,236
|
|
|
1,055
|
|
|
1,886
|
|
|
660
|
|
|
(7,837
|
)
|
|
—
|
|
||||||
Other current liabilities
|
324
|
|
|
2
|
|
|
24
|
|
|
3,203
|
|
|
—
|
|
|
3,553
|
|
||||||
Current liabilities
|
6,347
|
|
|
1,057
|
|
|
1,928
|
|
|
11,245
|
|
|
(8,723
|
)
|
|
11,854
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
7,806
|
|
|
—
|
|
|
152
|
|
|
4,006
|
|
|
—
|
|
|
11,964
|
|
||||||
Pension and postretirement benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
947
|
|
|
—
|
|
|
947
|
|
||||||
Intercompany loans payable
|
4,688
|
|
|
17,908
|
|
|
4,316
|
|
|
6,976
|
|
|
(33,888
|
)
|
|
—
|
|
||||||
Noncurrent liabilities held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
173
|
|
|
—
|
|
|
173
|
|
||||||
Other noncurrent liabilities
|
—
|
|
|
—
|
|
|
24
|
|
|
5,344
|
|
|
—
|
|
|
5,368
|
|
||||||
Long-term liabilities
|
12,494
|
|
|
17,908
|
|
|
4,492
|
|
|
17,446
|
|
|
(33,888
|
)
|
|
18,452
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
211
|
|
|
—
|
|
|
211
|
|
||||||
Ordinary shares
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
Ordinary shares held in treasury
|
(710
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(710
|
)
|
||||||
Other shareholders' equity
|
21,148
|
|
|
18,608
|
|
|
18,025
|
|
|
35,580
|
|
|
(72,213
|
)
|
|
21,148
|
|
||||||
Shareholders’ equity attributable to
Johnson Controls
|
20,447
|
|
|
18,608
|
|
|
18,025
|
|
|
35,580
|
|
|
(72,213
|
)
|
|
20,447
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
920
|
|
|
—
|
|
|
920
|
|
||||||
Total equity
|
20,447
|
|
|
18,608
|
|
|
18,025
|
|
|
36,500
|
|
|
(72,213
|
)
|
|
21,367
|
|
||||||
Total liabilities and equity
|
$
|
39,288
|
|
|
$
|
37,573
|
|
|
$
|
24,445
|
|
|
$
|
65,402
|
|
|
$
|
(114,824
|
)
|
|
$
|
51,884
|
|
(in millions)
|
Johnson Controls
International plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided (used) by operating
activities
|
$
|
(342
|
)
|
|
$
|
188
|
|
|
$
|
82
|
|
|
$
|
605
|
|
|
$
|
—
|
|
|
$
|
533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
—
|
|
|
—
|
|
|
(497
|
)
|
|
—
|
|
|
(497
|
)
|
||||||
Sale of property, plant and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||
Acquisition of businesses, net of cash
acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
Business divestitures
|
—
|
|
|
—
|
|
|
—
|
|
|
2,114
|
|
|
—
|
|
|
2,114
|
|
||||||
Changes in long-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
||||||
Net change in intercompany loans receivable
|
300
|
|
|
—
|
|
|
(285
|
)
|
|
583
|
|
|
(598
|
)
|
|
—
|
|
||||||
Net cash provided (used) by investing
activities
|
300
|
|
|
—
|
|
|
(285
|
)
|
|
2,181
|
|
|
(598
|
)
|
|
1,598
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase (decrease) in short-term debt - net
|
687
|
|
|
9
|
|
|
—
|
|
|
(192
|
)
|
|
(604
|
)
|
|
(100
|
)
|
||||||
Increase in long-term debt
|
885
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
886
|
|
||||||
Repayment of long-term debt
|
(307
|
)
|
|
—
|
|
|
(18
|
)
|
|
(2,003
|
)
|
|
—
|
|
|
(2,328
|
)
|
||||||
Debt financing costs
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Stock repurchases
|
(199
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(199
|
)
|
||||||
Payment of cash dividends
|
(473
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(473
|
)
|
||||||
Proceeds from the exercise of stock options
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||||
Employee equity-based compensation
withholding taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
(37
|
)
|
||||||
Net change in intercompany loans payable
|
(583
|
)
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
598
|
|
|
—
|
|
||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
(46
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Net cash provided (used) by financing
activities
|
42
|
|
|
9
|
|
|
(18
|
)
|
|
(2,281
|
)
|
|
(6
|
)
|
|
(2,254
|
)
|
||||||
Effect of exchange rate changes on
cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
61
|
|
||||||
Change in cash held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||
Increase (decrease) in cash and
cash equivalents
|
—
|
|
|
197
|
|
|
(221
|
)
|
|
575
|
|
|
(604
|
)
|
|
(53
|
)
|
||||||
Cash and cash equivalents at
beginning of period
|
—
|
|
|
107
|
|
|
382
|
|
|
718
|
|
|
(886
|
)
|
|
321
|
|
||||||
Cash and cash equivalents at
end of period
|
$
|
—
|
|
|
$
|
304
|
|
|
$
|
161
|
|
|
$
|
1,293
|
|
|
$
|
(1,490
|
)
|
|
$
|
268
|
|
(in millions)
|
Johnson Controls
International plc
|
|
Tyco Fire & Security Finance SCA
|
|
Tyco International Finance S.A.
|
|
Other Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided (used) by operating
activities
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
67
|
|
|
$
|
(1,648
|
)
|
|
$
|
—
|
|
|
$
|
(1,519
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
—
|
|
|
—
|
|
|
(634
|
)
|
|
—
|
|
|
(634
|
)
|
||||||
Sale of property, plant and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
||||||
Acquisition of businesses, net of cash
acquired
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||||
Business divestitures
|
—
|
|
|
—
|
|
|
—
|
|
|
180
|
|
|
—
|
|
|
180
|
|
||||||
Changes in long-term investments
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(19
|
)
|
|
—
|
|
|
(30
|
)
|
||||||
Net change in intercompany loans receivable
|
—
|
|
|
—
|
|
|
10
|
|
|
165
|
|
|
(175
|
)
|
|
—
|
|
||||||
Increase in intercompany investment
in subsidiaries
|
(1,924
|
)
|
|
(1,716
|
)
|
|
(76
|
)
|
|
—
|
|
|
3,716
|
|
|
—
|
|
||||||
Net cash used by investing activities
|
(1,924
|
)
|
|
(1,716
|
)
|
|
(83
|
)
|
|
(290
|
)
|
|
3,541
|
|
|
(472
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase (decrease) in short-term debt - net
|
885
|
|
|
76
|
|
|
—
|
|
|
(545
|
)
|
|
(361
|
)
|
|
55
|
|
||||||
Increase in long-term debt
|
1,544
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
1,552
|
|
||||||
Repayment of long-term debt
|
(46
|
)
|
|
—
|
|
|
(16
|
)
|
|
(769
|
)
|
|
—
|
|
|
(831
|
)
|
||||||
Debt financing costs
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
||||||
Stock repurchases
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
||||||
Payment of cash dividends
|
(235
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(235
|
)
|
||||||
Proceeds from the exercise of stock options
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
||||||
Employee equity-based compensation
withholding taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
||||||
Net change in intercompany loans payable
|
(165
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
175
|
|
|
—
|
|
||||||
Increase in equity from parent
|
—
|
|
|
1,640
|
|
|
76
|
|
|
2,000
|
|
|
(3,716
|
)
|
|
—
|
|
||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|
—
|
|
|
(78
|
)
|
||||||
Dividend from Adient spin-off
|
—
|
|
|
—
|
|
|
—
|
|
|
2,050
|
|
|
—
|
|
|
2,050
|
|
||||||
Cash transferred to Adient related to spin-off
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
(578
|
)
|
|
—
|
|
|
(665
|
)
|
||||||
Cash paid related to prior acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
(37
|
)
|
||||||
Other
|
6
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
14
|
|
||||||
Net cash provided by financing activities
|
1,854
|
|
|
1,716
|
|
|
60
|
|
|
2,016
|
|
|
(3,902
|
)
|
|
1,744
|
|
||||||
Effect of exchange rate changes on
cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
||||||
Change in cash held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
105
|
|
||||||
Increase (decrease) in cash and
cash equivalents
|
(8
|
)
|
|
—
|
|
|
44
|
|
|
158
|
|
|
(361
|
)
|
|
(167
|
)
|
||||||
Cash and cash equivalents at
beginning of period
|
11
|
|
|
—
|
|
|
244
|
|
|
324
|
|
|
—
|
|
|
579
|
|
||||||
Cash and cash equivalents at
end of period
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
288
|
|
|
$
|
482
|
|
|
$
|
(361
|
)
|
|
$
|
412
|
|
21.
|
Commitments and Contingencies
|
•
|
District of Colorado - Bell et al. v. The 3M Company et al.,
filed on September 18, 2016.
|
•
|
District of Colorado - Bell et al. v. The 3M Company et al.,
filed on September 18, 2016.
|
•
|
District of Colorado - Davis et al. v. The 3M Company et al.,
filed on September 22, 2016.
|
•
|
District of Massachusetts - Civitarese et al. v. The 3m Company et al.,
filed on April 18, 2018 in the United States District Court of Massachusetts.
|
•
|
Eastern District of Washington - Ackerman et al. v. The 3M Company et al.
filed on April 5, 2018 in the United States District Court, Eastern District of Washington.
|
•
|
Eastern District of New York - Green et al. v. The 3M Company et al.,
filed March 27, 2017 in Supreme Court of the State of New York, Suffolk County, prior to removal to federal court.
|
•
|
Southern District of New York - Adamo et al. v. The Port Authority of NY and NJ et al.,
filed August 11, 2017 in Supreme Court of the State of New York, Orange County, prior to removal to federal court.
|
•
|
Southern District of New York - Fogarty et al. v. The Port Authority of NY and NJ et al.,
filed August 11, 2017 in Supreme Court of the State of New York, Orange County, prior to removal to federal court.
|
•
|
Southern District of New York - Miller et al. v. The Port Authority of NY and NJ et al.,
filed August 11, 2017 in Supreme Court of the State of New York, Orange County, prior to removal to federal court.
|
•
|
Supreme Court of the State of New York, Suffolk County - Singer et al. v. The 3M Company et al.,
filed October 10, 2017.
|
•
|
Supreme Court of the State of New York, Suffolk County - Shipman et al. v. The 3M Company et al.,
filed March 21, 2018.
|
•
|
Eastern District of Pennsylvania - Bates et al. v. The 3M Company et al.,
filed September 15, 2016.
|
•
|
Eastern District of Pennsylvania - Grande et al. v. The 3M Company et al.,
filed October 13, 2016.
|
•
|
Eastern District of Pennsylvania - Yockey et al. v. The 3M Company et al.,
filed October 24, 2016.
|
•
|
Eastern District of Pennsylvania - Fearnley et al. v. The 3M Company et al.,
filed December 9, 2016.
|
22.
|
Related Party Transactions
|
|
|
March 31, 2018
|
|
September 30, 2017
|
|
|||
|
|
|
|
|
||||
Receivable from related parties
|
|
$
|
107
|
|
|
$
|
108
|
|
Payable to related parties
|
|
60
|
|
|
50
|
|
|
Three Months Ended
March 31,
|
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net sales
|
$
|
7,475
|
|
|
$
|
7,267
|
|
|
3
|
%
|
|
$
|
14,910
|
|
|
$
|
14,353
|
|
|
4
|
%
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
$
|
5,255
|
|
|
$
|
4,986
|
|
|
5
|
%
|
|
$
|
10,521
|
|
|
$
|
9,958
|
|
|
6
|
%
|
Gross profit
|
2,220
|
|
|
2,281
|
|
|
-3
|
%
|
|
4,389
|
|
|
4,395
|
|
|
—
|
%
|
||||
% of sales
|
29.7
|
%
|
|
31.4
|
%
|
|
|
|
29.4
|
%
|
|
30.6
|
%
|
|
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative
expenses
|
$
|
1,588
|
|
|
$
|
1,726
|
|
|
-8
|
%
|
|
$
|
3,005
|
|
|
$
|
3,296
|
|
|
-9
|
%
|
% of sales
|
21.2
|
%
|
|
23.8
|
%
|
|
|
|
20.2
|
%
|
|
23.0
|
%
|
|
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
|||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Restructuring and impairment costs
|
$
|
—
|
|
|
$
|
99
|
|
|
*
|
|
$
|
158
|
|
|
$
|
177
|
|
|
-11
|
%
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net financing charges
|
$
|
115
|
|
|
$
|
116
|
|
|
-1
|
%
|
|
$
|
231
|
|
|
$
|
252
|
|
|
-8
|
%
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity income
|
$
|
44
|
|
|
$
|
53
|
|
|
-17
|
%
|
|
$
|
104
|
|
|
$
|
108
|
|
|
-4
|
%
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income tax provision
|
$
|
78
|
|
|
$
|
508
|
|
|
*
|
|
$
|
345
|
|
|
$
|
481
|
|
|
*
|
Effective tax rate
|
14
|
%
|
|
129
|
%
|
|
|
|
31
|
%
|
|
62
|
%
|
|
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Income from continuing operations
attributable to noncontrolling interests |
$
|
45
|
|
|
$
|
33
|
|
|
36
|
%
|
|
$
|
86
|
|
|
$
|
73
|
|
|
18
|
%
|
Income from discontinued
operations attributable to
noncontrolling interests
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
9
|
|
|
*
|
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss)
attributable to Johnson Controls
|
$
|
598
|
|
|
$
|
98
|
|
|
*
|
|
$
|
887
|
|
|
$
|
(234
|
)
|
|
*
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Building Solutions North America
|
$
|
2,097
|
|
|
$
|
2,097
|
|
|
—
|
%
|
|
$
|
4,109
|
|
|
$
|
4,039
|
|
|
2
|
%
|
Building Solutions EMEA/LA
|
907
|
|
|
898
|
|
|
1
|
%
|
|
1,822
|
|
|
1,773
|
|
|
3
|
%
|
||||
Building Solutions Asia Pacific
|
586
|
|
|
562
|
|
|
4
|
%
|
|
1,183
|
|
|
1,137
|
|
|
4
|
%
|
||||
Global Products
|
2,040
|
|
|
2,014
|
|
|
1
|
%
|
|
3,821
|
|
|
3,808
|
|
|
—
|
|
||||
|
$
|
5,630
|
|
|
$
|
5,571
|
|
|
1
|
%
|
|
$
|
10,935
|
|
|
$
|
10,757
|
|
|
2
|
%
|
•
|
Building Solutions North America was consistent with the prior year due to higher volumes ($13 million) and the favorable impact of foreign currency translation ($10 million), offset by the impact of prior year nonrecurring purchase accounting adjustments ($23 million). The increase in volumes was primarily attributable to higher HVAC and controls sales.
|
•
|
The increase in Building Solutions EMEA/LA was due to the favorable impact of foreign currency translation ($81 million), partially offset by lower volumes related to a business divestiture ($37 million), lower volumes in Europe ($17 million) and the Middle East ($11 million), and the impact of prior year nonrecurring purchase accounting adjustments ($7 million).
|
•
|
The increase in Building Solutions Asia Pacific was due to the favorable impact of foreign currency translation ($35 million), partially offset by lower volumes ($9 million) and lower volumes related to a business divestiture ($2 million).
|
•
|
The increase in Global Products was due to higher volumes ($115 million), and the favorable impact of foreign currency translation ($72 million), partially offset by lower volumes related to business divestitures ($161 million). The increase in volumes was primarily attributable to higher building management, HVAC and refrigeration equipment, and specialty products sales.
|
•
|
The increase in Building Solutions North America was due to higher volumes ($73 million) and the favorable impact of foreign currency translation ($20 million), partially offset by the impact of prior year nonrecurring purchase accounting adjustments ($23 million). The increase in volumes was primarily attributable to higher HVAC and controls sales.
|
•
|
The increase in Building Solutions EMEA/LA was due to the favorable impact of foreign currency translation ($128 million), and higher volumes in Latin America ($11 million) and the Middle East ($9 million), partially offset by lower volumes related to a business divestiture ($80 million), lower volumes in Europe ($15 million) and the impact of prior year nonrecurring purchase accounting adjustments ($4 million).
|
•
|
The increase in Building Solutions Asia Pacific was due to the favorable impact of foreign currency translation ($49 million), higher volumes ($5 million) and the impact of prior year nonrecurring purchase accounting adjustments ($1 million), partially offset by lower volumes related to a business divestiture ($9 million).
|
•
|
The increase in Global Products was due to higher volumes ($211 million), the favorable impact of foreign currency translation ($95 million) and the impact of prior year nonrecurring purchase accounting adjustments ($6 million), partially offset by lower volumes related to business divestitures ($299 million). The increase in volumes was primarily attributable to higher building management, HVAC and refrigeration equipment, and specialty products sales.
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Building Solutions North America
|
$
|
239
|
|
|
$
|
255
|
|
|
-6
|
%
|
|
$
|
466
|
|
|
$
|
451
|
|
|
3
|
%
|
Building Solutions EMEA/LA
|
77
|
|
|
89
|
|
|
-13
|
%
|
|
146
|
|
|
138
|
|
|
6
|
%
|
||||
Building Solutions Asia Pacific
|
71
|
|
|
67
|
|
|
6
|
%
|
|
145
|
|
|
130
|
|
|
12
|
%
|
||||
Global Products
|
228
|
|
|
242
|
|
|
-6
|
%
|
|
514
|
|
|
369
|
|
|
39
|
%
|
||||
|
$
|
615
|
|
|
$
|
653
|
|
|
-6
|
%
|
|
$
|
1,271
|
|
|
$
|
1,088
|
|
|
17
|
%
|
•
|
The decrease in Building Solutions North America was due to prior year nonrecurring purchase accounting adjustments ($34 million), current year integration costs ($5 million) and incremental investments ($5 million), partially offset by favorable volumes / mix ($11 million), lower operating costs ($8 million), prior year integration costs ($7 million), lower selling, general and administrative expenses ($1 million), and prior year transaction costs ($1 million).
|
•
|
The decrease in Building Solutions EMEA/LA was due to prior year nonrecurring purchase accounting adjustments ($15 million), lower volumes ($9 million), incremental investments ($3 million), lower equity income ($3 million) and current year integration costs ($1 million), partially offset by the favorable impact of foreign currency translation ($9 million), prior year transaction costs ($3 million), favorable mix ($3 million), prior year integration costs ($2 million), and lower selling, general and administrative expenses ($2 million).
|
•
|
The increase in Building Solutions Asia Pacific was due to favorable mix ($8 million), the favorable impact of foreign currency translation ($2 million), and prior year integration costs ($2 million), partially offset by lower volumes ($3 million), incremental investments ($2 million), prior year nonrecurring purchase accounting adjustments ($2 million), and higher selling, general and administrative expenses ($1 million), .
|
•
|
The decrease in Global Products was due to lower income due to business divestitures ($39 million), higher operating costs ($20 million), current year integration costs ($9 million), and higher selling, general and administrative expenses including planned incremental global product and channel investments, partially offset by productivity savings and an insignificant gain on a business divestiture ($8 million). These items were partially offset by favorable volumes / mix ($37 million), the favorable impact of foreign currency translation ($10 million), prior year transaction costs ($6 million), prior year integration costs ($5 million) and higher equity income ($4 million).
|
•
|
The increase in Building Solutions North America was due to favorable volumes / mix ($16 million), prior year integration costs ($14 million), prior year transaction costs ($11 million), lower operating costs ($3 million), lower selling, general and administrative expenses ($3 million), and the favorable impact of foreign currency translation ($1 million), partially offset by current year integration costs ($14 million), prior year nonrecurring purchase accounting adjustments ($11 million) and incremental investments ($8 million).
|
•
|
The increase in Building Solutions EMEA/LA was due to the favorable impact of foreign currency translation ($13 million), prior year transaction costs ($5 million), prior year integration costs ($4 million), favorable mix ($3 million) and higher volumes ($1 million), partially offset by higher operating costs ($5 million), prior year nonrecurring purchase accounting adjustments ($3 million), current year integration costs ($3 million), incremental investments ($3 million), lower income due to a business divestiture ($2 million), and lower equity income ($2 million).
|
•
|
The increase in Building Solutions Asia Pacific was due to favorable mix ($8 million), prior year nonrecurring purchase accounting adjustments ($4 million), prior year integration costs ($3 million), lower selling, general and administrative expenses ($2 million), prior year transaction costs ($2 million) and the favorable impact of foreign currency translation ($2 million), partially offset by unfavorable pricing ($4 million) and incremental investments ($2 million).
|
•
|
The increase in Global Products was due to a gain on sale of Scott Safety ($114 million), prior year nonrecurring purchase accounting adjustments ($71 million), favorable volumes / mix ($67 million), the favorable impact of foreign currency translation ($15 million), higher equity income ($11 million), prior year integration costs ($9 million) and prior year transaction costs ($9 million). These items were partially offset by lower income due to business divestitures ($74 million), higher operating costs ($33 million), higher selling, general and administrative expenses including planned incremental global product and channel investments partially offset by productivity savings and an insignificant gain on a business divestiture ($29 million), and current year integration costs ($15 million).
|
|
Three Months Ended
March 31, |
|
|
|
Six Months Ended
March 31, |
|
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
1,845
|
|
|
$
|
1,696
|
|
|
9
|
%
|
|
$
|
3,975
|
|
|
$
|
3,596
|
|
|
11
|
%
|
Segment EBITA
|
314
|
|
|
303
|
|
|
4
|
%
|
|
698
|
|
|
692
|
|
|
1
|
%
|
•
|
Net sales increased due to the favorable impact of foreign currency translation ($113 million), the impact of higher lead costs on pricing ($68 million), and favorable pricing and product mix ($31 million), partially offset by lower volumes ($63 million). The decrease in volumes was driven by changes in customer demand patterns in North America and Europe, partially offset by an increase in start-stop battery volumes. Additionally, higher start-stop volumes contributed to favorable product mix.
|
•
|
Segment EBITA increased due to favorable pricing and product mix ($29 million), lower selling, general and administrative expenses due to lower employee related expenses and cost reduction initiatives ($16 million), and the favorable impact
|
•
|
Net sales increased due to the impact of higher lead costs on pricing ($199 million), the favorable impact of foreign currency translation ($191 million), and favorable pricing and product mix ($79 million), partially offset by lower volumes ($90 million). The decrease in volumes was driven by changes in customer demand patterns in North America and Europe, partially offset by an increase in start-stop battery volumes. Additionally, higher start-stop volumes contributed to favorable product mix.
|
•
|
Segment EBITA increased due to favorable pricing and product mix ($48 million), lower selling, general and administrative expenses from productivity savings and a gain on a business deconsolidation ($29 million), the favorable impact of foreign currency translation ($24 million) and prior year transaction costs ($1 million), partially offset by higher operating costs primarily driven by efforts to satisfy customer demand including higher transportation costs ($32 million), lower volumes ($30 million), incremental investments ($18 million) and lower equity income ($16 million).
|
|
March 31,
|
|
September 30,
|
|
|
|||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|||||
|
|
|
|
|
|
|||||
Current assets
|
$
|
12,271
|
|
|
$
|
12,292
|
|
|
|
|
Current liabilities
|
(10,992
|
)
|
|
(11,854
|
)
|
|
|
|||
|
1,279
|
|
|
438
|
|
|
*
|
|
||
|
|
|
|
|
|
|||||
Less: Cash
|
(268
|
)
|
|
(321
|
)
|
|
|
|||
Add: Short-term debt
|
1,111
|
|
|
1,214
|
|
|
|
|||
Add: Current portion of long-term debt
|
25
|
|
|
394
|
|
|
|
|||
Less: Assets held for sale
|
(22
|
)
|
|
(189
|
)
|
|
|
|||
Add: Liabilities held for sale
|
—
|
|
|
72
|
|
|
|
|||
Working capital (as defined)
|
$
|
2,125
|
|
|
$
|
1,608
|
|
|
32
|
%
|
|
|
|
|
|
|
|||||
Accounts receivable - net
|
$
|
6,679
|
|
|
$
|
6,666
|
|
|
—
|
%
|
Inventories
|
3,565
|
|
|
3,209
|
|
|
11
|
%
|
||
Accounts payable
|
4,250
|
|
|
4,271
|
|
|
—
|
%
|
||
|
|
|
|
|
|
|||||
* Measure not meaningful
|
|
|
|
|
|
•
|
The Company defines working capital as current assets less current liabilities, excluding cash, short-term debt, the current portion of long-term debt, and the current portion of assets and liabilities held for sale. Management believes that this measure of working capital, which excludes financing-related items and businesses to be divested, provides a more useful measurement of the Company’s operating performance.
|
•
|
The increase in working capital at
March 31, 2018
as compared to
September 30, 2017
, was primarily due to an increase in inventory to meet anticipated customer demand as well as the impact of foreign currency translation.
|
•
|
The Company’s days sales in accounts receivable at
March 31, 2018
were 68 days, higher than 65 days at
September 30, 2017
. There has been no significant adverse changes in the level of overdue receivables or changes in revenue recognition methods.
|
•
|
The Company’s inventory turns for the three months ended
March 31, 2018
were lower than the comparable period ended
September 30, 2017
, primarily due to changes in inventory production levels.
|
•
|
Days in accounts payable at
March 31, 2018
were 72 days, slightly lower than 73 days at the comparable period ended
September 30, 2017
.
|
|
|
Six Months Ended March 31,
|
||||||
(in millions)
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
||||
Cash provided (used) by operating activities
|
|
$
|
533
|
|
|
$
|
(1,519
|
)
|
Cash provided (used) by investing activities
|
|
1,598
|
|
|
(472
|
)
|
||
Cash provided (used) by financing activities
|
|
(2,254
|
)
|
|
1,744
|
|
||
Capital expenditures
|
|
(497
|
)
|
|
(634
|
)
|
•
|
The increase in cash provided by operating activities for the six months ended
March 31, 2018
was primarily due to higher prior year income tax payments related to the Adient spin-off ($1.2 billion in the first quarter of fiscal 2017) and prior year operating cash outflows in the Automotive Experience business before the Adient spin-off, change in control pension payments and transaction/integration related payments.
|
•
|
The increase in cash provided by investing activities for the six months ended
March 31, 2018
was primarily due to net cash proceeds received from the Scott Safety business divestiture in the current year and a decrease in capital expenditures.
|
•
|
The increase in cash used by financing activities for the six months ended
March 31, 2018
was primarily due to the prior year net dividend proceeds from the Adient spin-off, higher current year repayments of long-term debt and a decrease in long-term debt borrowings, partially offset by cash transferred in the prior year to Adient related to the spin-off.
|
•
|
The decrease in capital expenditures for the six months ended
March 31, 2018
primarily relates to lower capital investments in the current year in the Building Technologies & Solutions business and prior year capital investments in the Automotive Experience business before the Adient spin-off.
|
|
March 31,
|
|
September 30,
|
|
|
|||||
(in millions)
|
2018
|
|
2017
|
|
Change
|
|||||
|
|
|
|
|
|
|||||
Short-term debt
|
$
|
1,111
|
|
|
$
|
1,214
|
|
|
|
|
Current portion of long-term debt
|
25
|
|
|
394
|
|
|
|
|||
Long-term debt
|
10,962
|
|
|
11,964
|
|
|
|
|||
Total debt
|
12,098
|
|
|
13,572
|
|
|
-11
|
%
|
||
Less: cash and cash equivalents
|
268
|
|
|
321
|
|
|
|
|||
Total net debt
|
11,830
|
|
|
13,251
|
|
|
-11
|
%
|
||
|
|
|
|
|
|
|||||
Shareholders’ equity attributable to Johnson Controls
ordinary shareholders
|
20,874
|
|
|
20,447
|
|
|
2
|
%
|
||
Total capitalization
|
$
|
32,704
|
|
|
$
|
33,698
|
|
|
-3
|
%
|
|
|
|
|
|
|
|||||
Total net debt as a % of total capitalization
|
36.2
|
%
|
|
39.3
|
%
|
|
|
•
|
Net debt and net debt as a percentage of total capitalization are non-GAAP financial measures. The Company believes the percentage of total net debt to total capitalization is useful to understanding the Company’s financial condition as it provides a review of the extent to which the Company relies on external debt financing for its funding and is a measure of risk to its shareholders.
|
•
|
The Company believes its capital resources and liquidity position at
March 31, 2018
are adequate to meet projected needs. The Company believes requirements for working capital, capital expenditures, dividends, stock repurchases, minimum pension contributions, debt maturities and any potential acquisitions in the remainder of fiscal 2018 will continue to be funded from operations, supplemented by short- and long-term borrowings, if required. The Company currently manages its short-term debt position in the U.S. and euro commercial paper markets and bank loan markets. In the event the Company and Tyco International Holding S.à.r.l ("TSarl") are unable to issue commercial paper, they would have the ability to draw on their $2.0 billion and $1.25 billion revolving credit facilities, respectively. Both facilities mature in August 2020. There were no draws on the revolving credit facility as of
March 31, 2018
and
September 30, 2017
. The Company also selectively makes use of short-term credit lines other than its revolving credit facilities at the Company and TSarl. The Company estimates that, as of
March 31, 2018
, it could borrow up to $2.2 billion based on average borrowing levels during the quarter on committed credit lines. As such, the Company believes it has sufficient financial resources to fund operations and meet its obligations for the foreseeable future.
|
•
|
The Company’s debt financial covenant in its revolving credit facility require a minimum consolidated shareholders’ equity attributable to Johnson Controls of at least $3.5 billion at all times. The revolving credit facility also limits the amount of debt secured by liens that may be incurred to a maximum aggregated amount of 10% of consolidated shareholders’ equity attributable to Johnson Controls for liens and pledges. For purposes of calculating these covenants, consolidated shareholders’ equity attributable to Johnson Controls is calculated without giving effect to (i) the application of Accounting Standards Codification ("ASC") 715-60, "Defined Benefit Plans - Other Postretirement," or (ii) the cumulative foreign currency translation adjustment. TSarl's revolving credit facility contains customary terms and conditions, and a financial covenant that limits the ratio of TSarl's debt to earnings before interest, taxes, depreciation, and amortization as adjusted for certain items set forth in the agreement to 3.5x. TSarl's revolving credit facility also limits its ability to incur subsidiary debt or grant liens on its and its subsidiaries' property. As of March 31, 2018, the Company and TSarl were in compliance with all covenants and other requirements set forth in their credit agreements and the indentures, governing their notes, and expect to remain in compliance for the foreseeable future. None of the Company’s or TSarl's debt agreements limit access to stated borrowing levels or require accelerated repayment in the event of a decrease in the respective borrower's credit rating.
|
•
|
The key financial assumptions used in calculating the Company’s pension liability are determined annually, or whenever plan assets and liabilities are re-measured as required under accounting principles generally accepted in the U.S., including the expected rate of return on its plan assets. In fiscal
2018
, the Company believes the long-term rate of return will approximate 7.50%, 5.35% and 5.65% for U.S. pension, non-U.S. pension and postretirement plans, respectively. During the first six months of fiscal
2018
, the Company made approximately $37 million in total pension and postretirement contributions. In total, the
|
•
|
The Company earns a significant amount of its operating income outside of the parent company. Outside basis differences in consolidated subsidiaries are deemed to be permanently reinvested except in limited circumstances. However, in fiscal 2018, due to U.S. Tax Reform, the Company provided income tax related to the change in the Company’s assertion over the outside basis difference of certain non-U.S. subsidiaries owned directly or indirectly by U.S. subsidiaries. Under U.S. Tax Reform, the U.S. has adopted a territorial tax system that provides an exemption for dividends received by U.S. corporations from 10% or more owned non-U.S. corporations. However, certain non-U.S, U.S. state and withholding taxes may still apply when closing an outside basis difference via distribution or other transactions. The Company currently does not intend nor foresee a need to repatriate undistributed earnings or reduce outside basis differences other than as noted above or in tax efficient manners. The Company expects existing U.S. cash and liquidity to continue to be sufficient to fund the Company’s U.S. operating activities and cash commitments for investing and financing activities for at least the next twelve months and thereafter for the foreseeable future. In the U.S., should the Company require more capital than is generated by its operations, the Company could elect to raise capital in the U.S. through debt or equity issuances. The Company has borrowed funds in the U.S. and continues to have the ability to borrow funds in the U.S. at reasonable interest rates. In addition, the Company expects existing non-U.S. cash, cash equivalents, short-term investments and cash flows from operations to continue to be sufficient to fund the Company’s non-U.S. operating activities and cash commitments for investing activities, such as material capital expenditures, for at least the next twelve months and thereafter for the foreseeable future. Should the Company require more capital at the Luxembourg and Ireland holding and financing entities, other than amounts that can be provided in a tax efficient manner, the Company could also elect to raise capital through debt or equity issuances. These alternatives could result in increased interest expense or other dilution of the Company’s earnings.
|
•
|
To better align its resources with its growth strategies and reduce the cost structure of its global operations in certain underlying markets, the Company committed to a significant restructuring plan in fiscal 2018 and recorded
$158 million
of restructuring and impairment costs in the consolidated statements of income. The restructuring action related to cost reduction initiatives in the Company’s Building Technologies & Solutions and Power Solutions businesses and at Corporate. The costs consist primarily of workforce reductions, plant closures and asset impairments. The Company currently estimates that upon completion of the restructuring action, the fiscal 2018 restructuring plan will reduce annual operating costs by approximately $150 million, which is primarily the result of lower cost of sales and selling, general and administrative expenses due to reduced employee-related costs, depreciation and amortization expense. The Company expects the annual benefit of these actions will be substantially realized in 2020. For fiscal 2018, the savings, net of execution costs, are expected to be approximately 45% of the expected annual operating cost reduction. The restructuring action is expected to be substantially complete in 2020. The restructuring plan reserve balance of
$119 million
at
March 31, 2018
is expected to be paid in cash.
|
•
|
To better align its resources with its growth strategies and reduce the cost structure of its global operations in certain underlying markets, the Company committed to a significant restructuring plan in fiscal 2017 and recorded $367 million of restructuring and impairment costs in the consolidated statements of income. The restructuring action related to cost reduction initiatives in the Company’s Building Technologies & Solutions and Power Solutions businesses and at Corporate. The costs consist primarily of workforce reductions, plant closures and asset impairments. The Company currently estimates that upon completion of the restructuring action, the fiscal 2017 restructuring plan will reduce annual operating costs by approximately $280 million, which is primarily the result of lower cost of sales and selling, general and administrative expenses due to reduced employee-related costs, depreciation and amortization expense. The Company expects the annual benefit of these actions will be substantially realized in fiscal 2019. For fiscal 2018, the savings, net of execution costs, are expected to be approximately 85% of the expected annual operating cost reduction. The restructuring action is expected to be substantially complete in 2018. The restructuring plan reserve balance of
$128 million
at
March 31, 2018
is expected to be paid in cash.
|
•
|
To better align its resources with its growth strategies and reduce the cost structure of its global operations to address the softness in certain underlying markets, the Company committed to a significant restructuring plan in fiscal 2016 and recorded
$288 million
of restructuring and impairment costs in the consolidated statements of income. The restructuring action related to cost reduction initiatives in the Company’s Building Technologies & Solutions and Power Solutions businesses and at Corporate. The costs consist primarily of workforce reductions, plant closures, asset impairments and change-in-control payments. The Company currently estimates that upon completion of the restructuring action, the fiscal 2016 restructuring plan will reduce annual operating costs by approximately $135 million, which is primarily the result of lower cost of sales and selling, general and administrative expenses due to reduced employee-related costs, depreciation and amortization expense. The Company expects the annual benefit of these actions will be substantially realized in fiscal 2019. For fiscal 2018, the savings, net of execution costs, are expected to be approximately 75% of the expected annual operating cost reduction. The
|
•
|
Refer to Note 11, "Debt and Financing Arrangements," of the notes to consolidated financial statements for additional information on items impacting capitalization.
|
Period
|
Total Number of
Shares Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased as
Part of the Publicly
Announced Program
|
|
Approximate Dollar
Value of Shares that
May Yet be
Purchased under the
Programs
|
||||||
1/1/18 - 1/31/18
|
|
|
|
|
|
|
|
||||||
Purchases by Company
|
363,500
|
|
|
$
|
39.51
|
|
|
363,500
|
|
|
$
|
1,184,142,825
|
|
2/1/18 - 2/28/18
|
|
|
|
|
|
|
|
||||||
Purchases by Company
|
418,100
|
|
|
38.21
|
|
|
418,100
|
|
|
1,168,167,935
|
|
||
3/1/18 - 3/31/18
|
|
|
|
|
|
|
|
||||||
Purchases by Company
|
496,800
|
|
|
36.60
|
|
|
496,800
|
|
|
1,149,986,647
|
|
||
1/1/18 - 1/31/18
|
|
|
|
|
|
|
|
||||||
Purchases by affiliated purchaser
|
—
|
|
|
—
|
|
|
—
|
|
|
NA
|
|
||
2/1/18 - 2/28/18
|
|
|
|
|
|
|
|
||||||
Purchases by affiliated purchaser
|
—
|
|
|
—
|
|
|
—
|
|
|
NA
|
|
||
3/1/18 - 3/31/18
|
|
|
|
|
|
|
|
||||||
Purchases by affiliated purchaser
|
—
|
|
|
—
|
|
|
—
|
|
|
NA
|
|
|
|
JOHNSON CONTROLS INTERNATIONAL PLC
|
|
|
|
||
Date: May 3, 2018
|
|
By:
|
/s/ Brian J. Stief
|
|
|
|
Brian J. Stief
|
|
|
Executive Vice President and
Chief Financial Officer
|
Exhibit No.
|
Description
|
|
|
3.1
|
|
|
|
10.1
|
|
|
|
10.2*
|
|
|
|
10.3*
|
|
|
|
10.4*
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
101
|
The following materials from Johnson Controls International plc's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Position, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements.
|
1.
|
The name of the Company is Johnson Controls International public limited company.
|
2.
|
The Company is to be a public limited company for the purposes of Part 17 of the Companies Act 2014.
|
3.
|
The objects for which the Company is established are:
|
3.1 (a)
|
To carry on all or any of the businesses of producers, designers, manufacturers, servicers, buyers, sellers, and distributing agents of and dealers in all kinds of industrial and commercial goods, products, merchandise, services, solutions, and real and personal property of every class and description; and to do all things usually dealt in by persons carrying on any of the above mentioned businesses or likely to be required in connection with any of the said businesses.
|
(b)
|
To carry on the business of a holding company and to co-ordinate the administration, finances and activities of any subsidiary companies or associated companies, to do all lawful acts and things whatever that are necessary or convenient in carrying on the business of such a holding company and in particular to carry on in all its branches the business of a management services company, to act as managers and to direct or coordinate the management of other companies or of the business, property and estates of any company or person and to undertake and carry out all such services in connection therewith as may be deemed expedient by the Company’s board of directors and to exercise its powers as a shareholder of other companies.
|
3.2
|
To acquire shares, stocks, debentures, debenture stock, bonds, obligations and securities by original subscription, tender, purchase, exchange or otherwise and to subscribe for the same either conditionally or otherwise, and to guarantee the subscription thereof and to exercise and enforce all rights and powers conferred by or incidental to the ownership thereof.
|
3.3
|
To facilitate and encourage the creation, issue or conversion of and to offer for public subscription debentures, debenture stocks, bonds, obligations, shares, stocks, and securities and to act as trustees in connection with any such securities and to take part in the conversion of business concerns and undertakings into companies.
|
3.4
|
To purchase or by any other means acquire any freehold, leasehold or other property and in particular lands, tenements and hereditaments of any tenure, whether subject or not to any charges or incumbrances, for any estate or interest whatever, and any rights, privileges or easements over or in respect of any property, and any buildings, factories, mills, works, wharves, roads, machinery, engines, plant, live and dead stock, barges, vessels or things, and any real or personal property or rights whatsoever which may be necessary for, or may conveniently be used with, or may enhance the value or property of the Company, and to hold or to sell, let, alienate, mortgage, charge or otherwise deal with all or any such freehold, leasehold, or other property, lands, tenements or hereditaments, rights, privileges or easements.
|
3.5
|
To sell or otherwise dispose of any of the property or investments of the Company.
|
3.6
|
To establish and contribute to any scheme for the purchase of shares in the Company to be held for the benefit of the Company’s employees and to lend or otherwise provide money to such schemes or the Company’s employees or the employees of any of its subsidiary or associated companies to enable them to purchase shares of the Company.
|
3.7
|
To grant, convey, transfer or otherwise dispose of any property or asset of the Company of whatever nature or tenure for such price, consideration, sum or other return whether equal to or less than the market value thereof and whether by way of gift or otherwise as the Directors shall deem fit and to grant any fee, farm grant or lease or to enter into any agreement for letting or hire of any such property or asset for a rent or return equal to or less than the market or rack rent therefor or at no rent and subject to or free from covenants and restrictions as the Directors shall deem appropriate.
|
3.8
|
To acquire and undertake the whole or any part of the business, good-will and assets of any person, firm or company carrying on or proposing to carry on any of the businesses which this Company is authorised to carry on, and as part of the consideration for such acquisition to undertake all or any of the liabilities of such person, firm or company, or to acquire an interest in, amalgamate with, or enter into any arrangement for sharing profits, or for co-operation, or for limiting competition or for mutual assistance with any such person, firm or company and to give or accept by way of consideration for any of the acts or things aforesaid or property acquired, any shares, debentures, debenture stock or securities that may be agreed upon, and to hold and retain or sell, mortgage or deal with any shares, debentures, debenture stock or securities so received.
|
3.9
|
To apply for, purchase or otherwise acquire any patents, brevets d’invention, licences, concessions and the like conferring any exclusive or non-exclusive or limited rights to use or any secret or other information as to any invention which may seem capable of being used for any of the purposes of the Company or the acquisition of which may seem calculated directly or indirectly to benefit the Company, and to use, exercise, develop or grant licences in respect of or otherwise turn to account the property, rights or information so acquired.
|
3.10
|
To enter into partnership or into any arrangement for sharing profits, union of interests, co-operation, joint venture, reciprocal concession or otherwise with any person or company carrying on or engaged in or about to carry on or engage in any business or transaction which the Company is authorised to carry on or engage in or any business or transaction capable of being conducted so as directly to benefit this Company.
|
3.11
|
To invest and deal with the moneys of the Company not immediately required upon such securities and in such manner as may from time to time be determined.
|
3.12
|
To lend money to and guarantee the performance of the contracts or obligations of any company, firm or person, and the repayment of the capital and principal of, and dividends, interest or premiums payable on, any stock, shares and securities of any company, whether having objects similar to those of this Company or not, and to give all kinds of indemnities.
|
3.13
|
To engage in currency exchange and interest rate transactions including, but not limited to, dealings in foreign currency, spot and forward rate exchange contracts, futures, options, forward rate agreements, swaps, caps, floors, collars and any other foreign exchange or interest rate hedging arrangements and such other instruments as are similar to, or derived from, any of the foregoing whether for the purpose of making a profit or avoiding a loss or managing a currency or interest rate exposure or any other exposure or for any other purpose.
|
3.14
|
To guarantee, support or secure, whether by personal covenant or by mortgaging or charging all or any part of the undertaking, property and assets (both present and future) and uncalled capital of the Company, or by both such methods, the performance of the obligations of, and the repayment or payment of the principal amounts of and premiums, interest and dividends on any securities of, any person, firm or company including (without prejudice to the generality of the foregoing) any company which is for the time being the Company’s holding company as defined by the Acts or a subsidiary as therein defined of any such holding company or otherwise associated with the Company in business.
|
3.15
|
To borrow or secure the payment of money in such manner as the Company shall think fit, and in particular by the issue of debentures, debenture stocks, bonds, obligations and securities of all kinds, either perpetual or terminable and either redeemable or otherwise and to secure the repayment of any money borrowed, raised or owing by trust deed, mortgage, charge, or lien upon the whole or any part of the Company’s property or assets (whether present or future) including its uncalled capital, and also by a similar trust deed, mortgage, charge or lien to secure and guarantee the performance by the Company of any obligation or liability it may undertake.
|
3.16
|
To draw, make, accept, endorse, discount, execute, negotiate and issue promissory notes, bills of exchange, bills of lading, warrants, debentures and other negotiable or transferable instruments.
|
3.17
|
To subscribe for, take, purchase or otherwise acquire and hold shares or other interests in, or securities of any other company having objects altogether or in part similar to those of this Company, or carrying on any business capable of being conducted so as directly or indirectly to benefit this Company.
|
3.18
|
To hold in trust as trustees or as nominees and to deal with, manage and turn to account, any real or personal property of any kind, and in particular shares, stocks, debentures, securities, policies, book debts, claims and choses in actions, lands, buildings, hereditaments, business concerns and undertakings, mortgages, charges, annuities, patents, licences, and any interest in real or personal property, and any claims against such property or against any person or company.
|
3.19
|
To constitute any trusts with a view to the issue of preferred and deferred or other special stocks or securities based on or representing any shares, stocks and other assets specifically appropriated for the purpose of any such trust and to settle and regulate and if thought fit to undertake and execute any such trusts and to issue, dispose of or hold any such preferred, deferred or other special stocks or securities.
|
3.20
|
To give any guarantee in relation to the payment of any debentures, debenture stock, bonds, obligations or securities and to guarantee the payment of interest thereon or of dividends on any stocks or shares of any company.
|
3.21
|
To construct, erect and maintain buildings, houses, flats, shops and all other works, erections, and things of any description whatsoever either upon the lands acquired by the Company or upon other lands and to hold, retain as investments or to sell, let, alienate, mortgage, charge or deal with all or any of the same and generally to alter, develop and improve the lands and other property of the Company.
|
3.22
|
To provide for the welfare of persons in the employment of or holding office under or formerly in the employment of or holding office under the Company including Directors and ex-Directors of the Company and the wives, widows and families, dependants or connections of such persons by grants of money, pensions or other payments and by forming and contributing to pension, provident or benefit funds or profit sharing or co-partnership schemes for the benefit of such persons and to form, subscribe to or otherwise aid charitable, benevolent, religious, scientific, national or other institutions, exhibitions or objects which shall have any moral or other claims to support or aid by the Company by reason of the locality of its operation or otherwise.
|
3.23
|
To remunerate by cash payments or allotment of shares or securities of the Company credited as fully paid up or otherwise any person or company for services rendered or to be rendered to the Company whether in the conduct or management of its business, or in placing or assisting to place or guaranteeing the placing of any of the shares of the Company’s capital, or any debentures or other securities of the Company or in or about the formation or promotion of the Company.
|
3.24
|
To enter into and carry into effect any arrangement for joint working in business or for sharing of profits or for amalgamation with any other company or association or any partnership or person carrying on any business within the objects of the Company.
|
3.25
|
To distribute in specie or otherwise as may be resolved, any assets of the Company among its members and in particular the shares, debentures or other securities of any other company belonging to this Company or of which this Company may have the power of disposing.
|
3.26
|
To vest any real or personal property, rights or interest acquired or belonging to the Company in any person or company on behalf of or for the benefit of the Company, and with or without any declared trust in favour of the Company.
|
3.27
|
To transact or carry on any business which may seem to be capable of being conveniently carried on in connection with any of these objects or calculated directly or indirectly to enhance the value of or facilitate the realisation of or render profitable any of the Company’s property or rights.
|
3.28
|
To accept stock or shares in or debentures, mortgages or securities of any other company in payment or part payment for any services rendered or for any sale made to or debt owing from any such company, whether such shares shall be wholly or partly paid up.
|
3.29
|
To pay all costs, charges and expenses incurred or sustained in or about the promotion and establishment of the Company or which the Company shall consider to be preliminary thereto and to issue shares as fully or in part paid up, and to pay out of the funds of the Company all brokerage and charges incidental thereto.
|
3.30
|
To procure the Company to be registered or recognised in any part of the world.
|
3.31
|
To do all or any of the matters hereby authorised in any part of the world or in conjunction with or as trustee or agent for any other company or person or by or through any factors, trustees or agents.
|
3.32
|
To make gifts, pay gratuities or grant bonuses to current and former Directors (including substitute directors), officers or employees of the Company or to make gifts or pay gratuities to any person on their behalf or to charitable organisations, trusts or other bodies corporate nominated by any such person.
|
3.33
|
To do all such other things that the Company may consider incidental or conducive to the attainment of the above objects or as are usually carried on in connection therewith.
|
3.34
|
To carry on any business which the Company may lawfully engage in and to do all such things incidental or conducive to the business of the Company.
|
3.35
|
To make or receive gifts by way of capital contribution or otherwise.
|
NOTE:
|
It is hereby declared that the word “company” in this clause, except where used in reference to this Company shall be deemed to include any partnership or other body of persons whether incorporated or not incorporated and whether domiciled in Ireland or elsewhere and the intention is that the objects specified in each paragraph of this clause shall except where otherwise expressed in such paragraph be in no way limited or restricted by reference to or inference from the terms of any other paragraph.
|
4.
|
The share capital of the Company is US$22,000,000 and €40,000 divided into 2,000,000,000 Ordinary Shares of US$0.01 each, 200,000,000 Preferred Shares of US$0.01 each and 40,000 Ordinary A Shares of €1.00 each.
|
5.
|
The liability of the members is limited.
|
6.
|
The shares forming the capital, increased or reduced, may be increased or reduced and be divided into such classes and issued with any special rights, privileges and conditions or with such qualifications as regards preference, dividend, capital, voting or other special incidents, and be held upon such terms as may be attached thereto or as may from time to time be provided by the original or any substituted or amended articles of association and regulations of the Company for the time being, but so that where shares are issued with any preferential or special rights attached thereto such rights shall not be alterable otherwise than pursuant to the provisions of the Company’s articles of association for the time being.
|
Names, addresses and descriptions of subscribers
|
Number of shares taken by each subscriber
|
|
|
|
|
Enceladus Holding Limited
|
|
Arthur Cox Building
|
Thirty Nine Thousand,
|
Earlsfort Terrace, Dublin 2
|
Nine Hundred and Ninety
|
Corporate Body
|
Four A Ordinary Shares
|
|
|
AC Administration Services Limited
|
|
Arthur Cox Building, Earlsfort Terrace, Dublin 2.
|
|
Corporate Body
|
One A Ordinary Share
|
|
|
Arthur Cox Nominees Limited
|
|
Arthur Cox Building, Earlsfort Terrace, Dublin 2.
|
|
Corporate Body
|
One A Ordinary Share
|
|
|
Arthur Cox Registrars Limited
|
|
Arthur Cox Building, Earlsfort Terrace, Dublin 2.
|
|
Corporate Body
|
One A Ordinary Share
|
|
|
Arthur Cox Trust Services Limited
|
|
Arthur Cox Building, Earlsfort Terrace, Dublin 2
|
|
Corporate Body
|
One A Ordinary Share
|
|
|
DIJR Nominees Limited
|
|
Arthur Cox Building, Earlsfort Terrace, Dublin 2
|
|
Corporate Body
|
One A Ordinary Share
|
|
|
Fand Limited
|
|
Arthur Cox Building, Earlsfort Terrace, Dublin 2
|
|
Corporate Body
|
One A Ordinary Share
|
|
|
Dated 6 May 2014
|
|
|
|
Witness to the above signatures: JAMES HEARY
|
|
|
|
1.
|
The provisions set out in these Articles of Association shall constitute the whole of the regulations applicable to the Company and no “optional provision” as defined by Section 1007(2) of the Companies Act 2014 (with the exception of Sections 83 and 84 and 117(9) of the Companies Act 2014) shall apply to the Company.
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(b)
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Expressions in these articles referring to writing shall be construed, unless the contrary intention appears, as including references to printing, lithography, photography and any other modes of representing or reproducing words in a visible form except as provided in these articles and/or where it constitutes writing in electronic form sent to the Company, and the Company has agreed to its receipt in such form. Expressions in these articles referring to execution of any document shall include any mode of execution whether under seal or under hand or any mode of electronic signature as shall be approved by the Directors. Expressions in these articles referring to receipt of any electronic communications shall, unless the contrary intention appears, be limited to receipt in such manner as the Company has approved.
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(c)
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Unless the contrary intention appears, words or expressions contained in these articles shall bear the same meaning as in the Acts or in any statutory modification thereof in force at the date at which these articles become binding on the Company.
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(d)
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A reference to a statute or statutory provision shall be construed as a reference to the laws of Ireland unless otherwise specified and includes:
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(i)
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any subordinate legislation made under it including all regulations, by-laws, orders and codes made thereunder;
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(ii)
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any repealed statute or statutory provision which it re--enacts (with or without modification); and
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(iii)
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any statute or statutory provision which modifies, consolidates, re-enacts or supersedes it.
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(e)
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The masculine gender shall include the feminine and neuter, and vice versa, and the singular number shall include the plural, and vice versa, and words importing persons shall include firms or companies.
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(f)
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Reference to US$, USD, or dollars shall mean the currency of the United States of America and to €, euro, EUR or cent shall mean the currency of Ireland.
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3.
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(a) The share capital of the Company is US$22,000,000 and €40,000 divided into 2,000,000,000 Ordinary Shares of US$0.01 each, 200,000,000 Preferred Shares of US$0.01 each and 40,000 Ordinary A Shares of €1.00 each.
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(b)
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The rights and restrictions attaching to the ordinary shares shall be as follows:
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(i)
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subject to the right of the Company to set record dates for the purposes of determining the identity of members entitled to notice of and/or to vote at a general meeting, the right to attend and speak at any general meeting of the Company and to exercise one vote per ordinary share held at any general meeting of the Company;
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(ii)
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the right to participate pro rata in all dividends declared by the Company, save as provided in article 128; and
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(iii)
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the right, in the event of the Company’s winding up, to participate pro rata in the total assets of the Company.
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(c)
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The Directors are authorised to issue all or any of the authorised but unissued preferred shares from time to time in one or more classes or series, and to fix for each such class or series such voting power, full or limited, or no voting power, and such designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as shall be stated and expressed in the resolution or resolutions adopted by the Board providing for the issuance of such class or series, including, without limitation, the authority to provide that any such class or series may be:
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(i)
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redeemable at the option of the Company, or the Holders, or both, with the manner of the redemption to be set by the Board, and redeemable at such time or times, including upon a fixed date, and at such price or prices;
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(ii)
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entitled to receive dividends (which may be cumulative or non-cumulative) at such rates, on such conditions and at such times, and payable in preference to, or in such relation to, the dividends payable on any other class or classes of shares or any other series;
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(iii)
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entitled to such rights upon the dissolution of, or upon any distribution of the assets of, the Company; or
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(iv)
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convertible into, or exchangeable for, shares of any other class or classes of shares, or of any other series of the same or any other class or classes of shares, of the Company at such price or prices or at such rates of exchange and with such adjustments as the Directors determine,
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(d)
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An ordinary share shall be deemed to be a Redeemable Share on, and from the time of, the existence or creation of an agreement, transaction or trade between the Company and any third party pursuant to which the Company acquires or will acquire ordinary shares, or an interest in ordinary shares, from such third party. In these circumstances, the acquisition of such shares or interest in shares by the Company, save where acquired otherwise than for valuable consideration in accordance with the Act, shall constitute the redemption of a Redeemable Share in accordance with the Acts. No resolution, whether special or otherwise, shall be required to be passed to deem any ordinary share a Redeemable Share.
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4.
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Subject to the provisions of the Acts and the other provisions of this article, the Company may:
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(a)
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pursuant to the Acts, issue any shares of the Company which are to be redeemed or are liable to be redeemed at the option of the Company or the member on such terms and in such manner as may be determined by the Company in general meeting (by Special Resolution) on the recommendation of the Directors; or
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(b)
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subject to and in accordance with the provisions of the Acts and without prejudice to any relevant special rights attached to any class of shares, pursuant to the Acts, purchase any of its own shares (including any Redeemable Shares and without any obligation to purchase on any pro rata basis as between members or members of the same class) and may cancel any shares so purchased or hold them as treasury shares (as defined by the Acts) and may reissue any such shares as shares of any class or classes.
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5.
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Without prejudice to any special rights previously conferred on the Holders of any existing shares or class of shares, any share in the Company may be issued with such preferred or deferred or other special rights or such restrictions, whether in regard to dividend, voting, return of capital or otherwise, as the Company may from time to time by Ordinary Resolution determine.
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6.
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(a) Without prejudice to the authority conferred on the Directors pursuant to article 3 to issue preferred shares in the capital of the Company, if at any time the share capital is divided into different classes of shares, the rights attached to any class may, whether or not the Company is being wound up, be varied or abrogated with the sanction of a Special Resolution passed at a separate general meeting of the Holders of the shares of that class, provided that, if the relevant class of Holders has only one Holder, that person present in person or by proxy, shall constitute the necessary quorum for such a meeting. To every such meeting the provisions of article 35 shall apply.
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(b)
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The redemption or purchase of preferred shares or any class of preferred shares shall not constitute a variation of rights of the preferred Holders where the redemption or purchase of the preferred shares has been authorised solely by a resolution of the ordinary Holders.
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(c)
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The issue, redemption or purchase of any of the preferred shares of US$0.01 each shall not constitute a variation of the rights of the Holders of ordinary shares.
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(d)
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The issue of preferred shares or any class of preferred shares which rank
pari passu
with, or junior to, any existing preferred shares or class of preferred shares shall not constitute a variation of the existing preferred shares or class of preferred shares.
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7.
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The rights conferred upon the Holders of the shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation or issue of further shares ranking
pari passu
therewith.
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8.
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(a) Subject to the provisions of these articles relating to new shares, the shares shall be at the disposal of the Directors, and they may (subject to the provisions of the Acts) allot, grant options over or otherwise dispose of them to such persons, on such terms and conditions and at such times as they may consider to be in the best interests of the Company and its members, but so that no share shall be issued at a discount save in accordance with the Acts, and so that, in the case of shares offered to the public for subscription, the amount payable on application on each share shall not be less than one-quarter of the nominal amount of the share and the whole of any premium thereon. To the extent permitted by the Acts, shares may also be allotted by a committee of the Directors or by any other person where such committee or person is so authorised by the Directors.
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(b)
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Subject to any requirement to obtain the approval of members under any laws, regulations or the rules of any stock exchange to which the Company is subject, the Board is authorised, from time to time, in its discretion, to grant such persons, for such periods and upon such terms as the Board deems advisable, options to purchase or subscribe for such number of shares of any class or classes or of any series of any class as the Board may deem advisable, and to cause warrants or other appropriate instruments evidencing such options to be issued.
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(c)
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The Directors are, for the purposes of the Acts, generally and unconditionally authorised to exercise all powers of the Company to allot and issue relevant securities (as defined by the Acts) up to the amount of Company’s authorised share capital as of the date of adoption of this article 8 and to allot and issue any shares purchased by the Company pursuant to the provisions of the Acts and held as treasury shares and this authority shall expire five years from 8 September 2014. The Company may before the expiry of such authority make an offer or agreement which would or might require equity securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such an offer or agreement notwithstanding that the authority hereby conferred has expired.
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(d)
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The Directors are hereby empowered pursuant to sections 23 and 24(1) of the 1983 Act to allot equity securities within the meaning of the said section 23 for cash pursuant to the authority conferred by paragraph (c) of this article 8 as if section 23(1) of the said 1983 Act did not apply to any such allotment. The Company may before the expiry of such authority make an offer or agreement which would or might require equity securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such an offer or agreement as if the power conferred by this paragraph (d) had not expired.
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(e)
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Nothing in these articles shall preclude the Directors from recognising a renunciation of the allotment of any shares by any allottee in favour of some other person.
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9.
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If by the conditions of allotment of any share the whole or part of the amount or issue price thereof shall be payable by instalments, every such instalment when due shall be paid to the Company by the person who for the time being shall be the Holder of the share.
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10.
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The Company may pay commission to any person in consideration of a person subscribing or agreeing to subscribe, whether absolutely or conditionally, for any shares in the Company or procuring or agreeing to procure subscriptions, whether absolute or conditional, for any shares in the Company on such terms and subject to such conditions as the Directors may determine, including, without limitation, by paying cash or allotting and issuing fully or partly paid shares or any combination of the two. The Company may also, on any issue of shares, pay such brokerage as may be lawful.
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11.
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Except as required by law, no person shall be recognised by the Company as holding any share upon any trust, and the Company shall not be bound by or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any share or any interest in any fractional part of a share or (except only as by these articles or by law otherwise provided) any other rights in respect of any share except an absolute right to the entirety thereof in the Holder.
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12.
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No person shall be entitled to a share certificate in respect of any ordinary share held by them in the share capital of the Company, whether such ordinary share was allotted or transferred to them, and the Company shall not be bound to issue a share certificate to any such person entered in the Register.
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13.
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The Company shall not give, whether directly or indirectly and whether by means of a loan, guarantee, the provision of security or otherwise, any financial assistance for the purpose of or in connection with a purchase or subscription made or to be made by any person of or for any shares in the Company or in its holding company, except as permitted by the Acts.
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14.
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(a) The Company shall have a first and paramount lien on every share (not being a fully paid share) for all moneys (whether presently payable or not) payable at a fixed time or called in respect of that share. The Directors, at any time, may declare any share to be wholly or in part exempt from the provisions of this article. The Company’s lien on a share shall extend to all moneys payable in respect of it. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 14 are disapplied.
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(b)
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The Company may sell in such manner as the Directors determine any share on which the Company has a lien if a sum in respect of which the lien exists is presently payable and is not paid within fourteen Clear Days after notice demanding payment, and stating that if the notice is not complied with the share may be sold, has been given to the Holder of the share or to the person entitled to it by reason of the death or bankruptcy of the Holder.
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(c)
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To give effect to a sale, the Directors may authorise some person to execute an instrument of transfer of the share sold to, or in accordance with the directions of, the purchaser. The transferee shall be entered in the Register as the Holder of the share comprised in any such transfer and he shall not be bound to see to the application of the purchase moneys nor shall his title to the share be affected by any irregularity in or invalidity of the proceedings in reference to the sale, and after the name of the transferee has been entered in the Register, the remedy of any person aggrieved by the sale shall be in damages only and against the Company exclusively.
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(d)
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The net proceeds of the sale, after payment of the costs, shall be applied in payment of so much of the sum for which the lien exists as is presently payable and any residue (upon surrender to the Company for cancellation of the certificate for the shares sold and subject to a like lien for any moneys not presently payable as existed upon the shares before the sale) shall be paid to the person entitled to the shares at the date of the sale.
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15.
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(a) Subject to the terms of allotment, the Directors may make calls upon the members in respect of any moneys unpaid on their shares, including shares where the conditions of allotment provide for payment at fixed times, and each member (subject to receiving at least fourteen Clear Days’ notice specifying when and where payment is to be made) shall pay to the Company as required by the notice the amount called on his shares. A call may be required to be paid by instalments. A call may be revoked before receipt by the Company of a sum due thereunder, in whole or in part and payment of a call may be postponed in whole or in part. A person upon whom a call is made shall remain liable for calls made upon him notwithstanding the subsequent transfer of the shares in respect of which the call was made. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 15 are disapplied.
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(b)
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A call shall be deemed to have been made at the time when the resolution of the Directors authorising the call was passed.
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(c)
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The joint Holders of a share shall be jointly and severally liable to pay all calls in respect thereof.
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(d)
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If a call remains unpaid after it has become due and payable the person from whom it is due and payable shall pay interest on the amount unpaid from the day it became due until it is paid at the rate fixed by the terms of allotment of the share or in the notice of the call or, if no rate is fixed, at the appropriate rate (as defined by the Acts) but the Directors may waive payment of the interest wholly or in part.
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(e)
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An amount payable in respect of a share on allotment or at any fixed date, whether in respect of nominal value or as an instalment of a call, shall be deemed to be a call and if it is not paid the provisions of these articles shall apply as if that amount had become due and payable by virtue of a call.
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(f)
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Subject to the terms of allotment, the Directors may make arrangements on the issue of shares for a difference between the Holders in the amounts and times of payment of calls on their shares.
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(g)
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The Directors, if they think fit, may receive from any member willing to advance the same all or any part of the moneys uncalled and unpaid upon any shares held by him, and upon all or any of the moneys so advanced may pay (until the same would, but for such advance, become payable) interest at such rate, not exceeding (unless the Company in general meeting otherwise directs) fifteen percent per annum, as may be agreed upon between the Directors and the member paying such sum in advance.
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(h)
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(i) If a member fails to pay any call or instalment of a call on the day appointed for payment thereof, the Directors, at any time thereafter and during such times as any part of the call or instalment remains unpaid, may serve a notice on him requiring payment of so much of the call or instalment as is unpaid together with any interest which may have accrued.
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(ii)
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The notice shall name a further day (not earlier than the expiration of fourteen Clear Days from the date of service of the notice) on or before which the payment required by the notice is to be made, and shall state that in the event of non-payment at or before the time appointed the shares in respect of which the call was made will be liable to be forfeited.
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(iii)
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If the requirements of any such notice as aforesaid are not complied with then, at any time thereafter before the payment required by the notice has been made, any shares in respect of which the notice has been given may be forfeited by a resolution of the Directors to that effect. The forfeiture shall include all dividends or other moneys payable in respect of the forfeited shares and not paid before forfeiture. The Directors may accept a surrender of any share liable to be forfeited hereunder.
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(iv)
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On the trial or hearing of any action for the recovery of any money due for any call it shall be sufficient to prove that the name of the member sued is entered in the Register as the Holder, or one of the Holders, of the shares in respect of which such debt accrued, that the resolution making the call is duly recorded in the minute book and that notice of such call was duly given to the member sued, in pursuance of these articles, and it shall not be necessary to prove the appointment of the Directors who made such call nor any other matters whatsoever, but the proof of the matters aforesaid shall be conclusive evidence of the debt.
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(i)
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A forfeited share may be sold or otherwise disposed of on such terms and in such manner as the Directors think fit and at any time before a sale or disposition the forfeiture may be cancelled on such terms as the Directors think fit. Where for the purposes of its disposal such a share is to be transferred to any person, the Directors may authorise some person to execute an instrument of transfer of the share to that person. The Company may receive the consideration, if any, given for the share on any sale or disposition thereof and may execute a transfer of the share in favour of the person to whom the share is sold or disposed of and thereupon he shall be registered as the Holder of the share and shall not be bound to see to the application of the purchase money, if any, nor shall his title to the share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the share.
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(j)
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A person whose shares have been forfeited shall cease to be a member in respect of the forfeited shares, but nevertheless shall remain liable to pay to the Company all moneys which, at the date of forfeiture, were payable by him to the Company in respect of the shares, without any deduction or allowance for the value of the shares at the time of forfeiture but his liability shall cease if and when the Company shall have received payment in full of all such moneys in respect of the shares.
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(k)
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A statutory declaration that the declarant is a Director or the Secretary of the Company, and that a share in the Company has been duly forfeited on the date stated in the declaration, shall be conclusive evidence of the facts therein stated as against all persons claiming to be entitled to the share.
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(l)
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The provisions of these articles as to forfeiture shall apply in the case of non-payment of any sum which, by the terms of issue of a share, becomes payable at a fixed time, whether on account of the nominal value of the share or by way of premium, as if the same had been payable by virtue of a call duly made and notified.
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(m)
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The Directors may accept the surrender of any share which the Directors have resolved to have been forfeited upon such terms and conditions as may be agreed and, subject to any such terms and conditions, a surrendered share shall be treated as if it has been forfeited.
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16.
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(a) The instrument of transfer of any share may be executed for and on behalf of the transferor by the Secretary, an Assistant Secretary or any such person that the Secretary or an Assistant Secretary nominates for that purpose (whether in respect of specific transfers or pursuant to a general standing authorisation), and the Secretary, Assistant Secretary or the relevant nominee shall be deemed to have been irrevocably appointed agent for the transferor of such share or shares with full power to execute, complete and deliver in the name of and on behalf of the transferor of such share or shares all such transfers of shares held by the members in the share capital of the Company. Any document which records the name of the transferor, the name of the transferee, the class and number of shares agreed to be transferred, the date of the agreement to transfer shares and the price per share, shall, once executed by the transferor or the Secretary, Assistant Secretary or the relevant nominee as agent for the transferor, and by the transferee where required by the Act, be deemed to be a proper instrument of transfer for the purposes of the Act. The transferor shall be deemed to remain the Holder of the share until the name of the transferee is entered on the Register in respect thereof, and neither the title of the transferee nor the title of the transferor shall be affected by any irregularity or invalidity in the proceedings in reference to the sale should the Directors so determine.
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(b)
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The Company, at its absolute discretion, may, or may procure that a subsidiary of the Company shall, pay Irish stamp duty arising on a transfer of shares on behalf of the transferee of such shares of the Company. If stamp duty resulting from the transfer of shares in the Company which would otherwise be payable by the transferee is paid by the Company or any subsidiary of the Company on behalf of the transferee, then in those circumstances, the Company shall, on its behalf or on behalf of its subsidiary (as the case may be), be entitled to (i) seek reimbursement of the stamp duty from the transferee, (ii) set-off the stamp duty against any dividends payable to the transferee of those shares and (iii) claim a first and permanent lien on the shares on which stamp duty has been paid by the Company or its subsidiary for the amount of stamp duty paid. The Company’s lien shall extend to all dividends paid on those shares.
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(c)
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Notwithstanding the provisions of these articles and subject to any provision of the Acts, title to any shares in the Company may also be evidenced and transferred without a written instrument in accordance with the Acts or any regulations made thereunder. The Directors shall have power to permit any class of shares to be held in uncertificated form and to implement any arrangements they think fit for such evidencing and transfer which accord with such regulations and in particular shall, where appropriate, be entitled to disapply or modify all or part of the provisions in these articles with respect to the requirement for written instruments of transfer and share certificates (if any), in order to give effect to such regulations.
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17.
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Subject to such of the restrictions of these articles and to such of the conditions of issue of any share warrants as may be applicable, the shares of any member and any share warrant may be transferred by instrument in writing in any usual or common form or any other form which the Directors may approve.
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18.
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(a) The Directors in their absolute discretion and without assigning any reason therefor may decline to register:
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(i)
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any transfer of a share which is not fully paid; or
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(ii)
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any transfer to or by a minor or person of unsound mind;
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(i)
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the instrument of transfer is accompanied by the certificate of the shares to which it relates and such other evidence as the Directors may reasonably require to show the right of the transferor to make the transfer;
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(ii)
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the instrument of transfer is in respect of one class of share only;
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(iii)
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a fee of €10 or such lesser sum is paid to the Company;
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(iv)
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the instrument of transfer is in favour of not more than four transferees; and
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(v)
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it is lodged at the Office or at such other place as the Directors may appoint.
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19.
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If the Directors refuse to register a transfer, they shall, within two months after the date on which the transfer was lodged with the Company, send to the transferee notice of the refusal.
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20.
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(a) The Directors may from time to time fix a record date for the purposes of determining the rights of members to notice of and/or to vote at any general meeting of the Company. The record date shall not precede the date upon which the resolution fixing the record date is adopted by the Directors, and the record date shall be not more than eighty nor less than ten days before the date of such meeting. If no record date is fixed by the Directors, the record date for determining members entitled to notice of or to vote at a meeting of the members shall be the close of business on the day next preceding the day on which notice is given. Unless the Directors determine otherwise, a determination of members of record entitled to notice of or to vote at a meeting of members shall apply to any adjournment or postponement of the meeting.
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(b)
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In order that the Directors may determine the members entitled to receive payment of any dividend or other distribution or allotment of any rights or the members entitled to exercise any rights in respect of any change, conversion or exchange of shares, or for the purpose of any other lawful action, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than thirty nor less than two days prior to such action. If no record date is fixed, the record date for determining members for such purpose shall be at the close of business on the day on which the Directors adopt the resolution relating thereto.
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21.
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Registration of transfers may be suspended at such times and for such period, not exceeding in the whole 30 days in each year, as the Directors may from time to time determine subject to the requirements of the Acts.
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22.
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All instruments of transfer shall upon their being lodged with the Company remain the property of the Company and the Company shall be entitled to retain them.
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23.
|
Subject to the provisions of these articles, whenever as a result of a consolidation of shares or otherwise any members would become entitled to fractions of a share, the Directors may sell or cause to be sold, on behalf of those members, the shares representing the fractions for the best price reasonably obtainable to any person and distribute the proceeds of sale (subject to any applicable tax and abandoned property laws) in due proportion among those members, and the Directors may authorise some person to execute an instrument of transfer of the shares to, or in accordance with the directions of, the purchaser. The transferee shall not be bound to see to the application of the purchase money nor shall his title to the shares be affected by any irregularity in or invalidity of the proceedings in reference to the sale.
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24.
|
In the case of the death of a member, the survivor or survivors where the deceased was a joint Holder, and the personal representatives of the deceased where he was a sole Holder, shall be the only persons recognised by the Company as having any title to his interest in the shares; but nothing herein contained shall release the estate of a deceased joint Holder from any liability in respect of any share which had been jointly held by him with other persons. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as articles 24 to 27 are disapplied.
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25.
|
Any person becoming entitled to a share in consequence of the death or bankruptcy of a member may, upon such evidence being produced as may from time to time properly be required by the Directors and subject as herein provided, elect either to be registered himself as Holder of the share or to have some person nominated by him registered as the transferee thereof, but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the shares by that member before his death or bankruptcy, as the case may be.
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26.
|
If the person so becoming entitled elects to be registered himself, he shall deliver or send to the Company a notice in writing signed by him stating that he so elects. If he elects to have another person registered, he shall testify his election by executing to that person a transfer of the share. All the limitations, restrictions and provisions of these regulations relating to the right to transfer and the registration of transfers of shares shall be applicable to any such notice or transfer as aforesaid as if the death or bankruptcy of the member had not occurred and the notice of transfer were a transfer signed by that member.
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27.
|
A person becoming entitled to a share by reason of the death or bankruptcy of the Holder shall be entitled to the same dividends and other advantages to which he would be entitled if he were the registered Holder of the share, except that he shall not, before being registered as a member in respect of the share, be entitled in respect of it to exercise any right conferred by membership in relation to the meetings of the Company, so, however, that the Directors may at any time give notice requiring such person to elect either to be registered himself or to transfer the share, and if the notice is not complied with within 90 days, the Directors may thereupon withhold payment of all dividends, bonuses or other moneys payable in respect of the share until the requirements of the notice have been complied with.
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28.
|
The Company may from time to time by Ordinary Resolution increase the authorised share capital by such sum, to be divided into shares of such amount, as the resolution shall prescribe.
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29.
|
The Company may by Ordinary Resolution:
|
(a)
|
consolidate and divide all or any of its share capital into shares of larger amount than its existing shares;
|
(b)
|
subdivide its existing shares, or any of them, into shares of smaller amount than is fixed by the memorandum of association subject, nevertheless, to the Acts; or
|
(c)
|
cancel any shares which, at the date of the passing of the resolution, have not been taken or agreed to be taken by any person and reduce the amount of its authorised share capital by the amount of the shares so cancelled.
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30.
|
The Company may by Special Resolution or by Ordinary Resolution as may be required by the Act reduce its share capital, any capital redemption reserve fund or any share premium account or undenominated capital account in any manner and with and subject to any incident authorised, and consent required, by law.
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31.
|
The Company shall in each year hold a general meeting as its annual general meeting in addition to any other meeting in that year, and shall specify the meeting as such in the notices calling it. Not more than fifteen months shall elapse between the date of one annual general meeting of the Company and that of the next. This article shall not apply in the case of the first general meeting, in respect of which the Company shall convene the meeting within the time periods required by the Act.
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32.
|
Subject to the Acts, all general meetings of the Company may be held outside of Ireland.
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33.
|
All general meetings other than annual general meetings shall be called extraordinary general meetings.
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34.
|
The Directors may, whenever they think fit, convene an extraordinary general meeting, and extraordinary general meetings shall also be convened on such requisition, or in default may be convened by such requisitionists, as provided in the Acts. Where any enactment confers rights on the members of a company to convene a general meeting and expresses such rights to apply save where a company's articles of association or constitution provides otherwise, such rights shall not apply to the members of the Company.
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35.
|
All provisions of these articles relating to general meetings of the Company shall, mutatis mutandis, apply to every separate general meeting of the Holders of any class of shares in the capital of the Company, except that:
|
(a)
|
the necessary quorum shall be two or more persons holding or representing by proxy (whether or not such Holder actually exercises his voting rights in whole, in part or at all at the relevant general meeting) at least a majority in nominal value of the issued shares of the class or, at any adjourned meeting of such Holders, one Holder holding or representing by proxy (whether or not such Holder actually exercises his voting rights in whole, in part or at all at the relevant general meeting) at least a majority in nominal value of the issued shares of the class, shall be deemed to constitute a meeting;
|
(b)
|
any Holder of shares of the class present in person or by proxy may demand a poll; and
|
(c)
|
on a poll, each Holder of shares of the class shall have one vote in respect of every share of the class held by him.
|
36.
|
A Director shall be entitled, notwithstanding that he is not a member, to attend and speak at any general meeting and at any separate meeting of the Holders of any class of shares in the Company.
|
37.
|
(a) Subject to the provisions of the Acts allowing a general meeting to be called by shorter notice, an annual general meeting and an extraordinary general meeting shall be called by not more than 60 Clear Days’ notice and not less than 21 Clear Days’ notice.
|
(b)
|
Any notice convening a general meeting shall specify the time and place of the meeting and, in the case of special business, the general nature of that business and, in reasonable prominence, that a member entitled to attend and vote is entitled to appoint a proxy to attend, speak and vote in his place and that a proxy need not be a member of the Company. It shall also give particulars of any Directors who are to retire at the meeting and of any persons who are recommended by the Directors for appointment or re-appointment as Directors at the meeting or in respect of whom notice has been duly given to the Company of the intention to propose them for appointment or re-appointment as Directors at the meeting. Provided that the latter requirement shall only apply where the intention to propose the person has been received by the Company in accordance with the provisions of these articles. Subject to any restrictions imposed on any shares, the notice of the meeting shall be given to all the members of the Company as of the record date set by the Directors and to the Directors and the Auditors.
|
(c)
|
The accidental omission to give notice of a meeting to, or the non-receipt of notice of a meeting by, any person entitled to receive notice shall not invalidate the proceedings at the meeting.
|
38.
|
Where, by any provision contained in the Acts, extended notice is required of a resolution, the resolution shall not be effective (except where the Directors of the Company have resolved to submit it) unless notice of the intention to move it has been given to the Company not less than 28 days (or such shorter period as the Acts permit) before the meeting at which it is moved, and the Company shall give to the members notice of any such resolution as required by and in accordance with the provisions of the Acts.
|
39.
|
All business shall be deemed special that is transacted at an extraordinary general meeting, and also all that is transacted at an annual general meeting, with the exception of declaring a dividend, the consideration of the company’s statutory financial statements and the Directors' and Statutory Auditors' Reports, the review by the members of the Company’s affairs (to the extent required by the Acts), the election of Directors, the re-appointment of the retiring auditors and the authorisation of the directors to fix the statutory Auditors’ remuneration.
|
40.
|
At any annual general meeting of the members, only such nominations of persons for election to the Board shall be made, and only such other business shall be conducted or considered, as shall have been properly brought before the meeting. For nominations to be properly made at an annual general meeting, and proposals of other business to be properly brought before an annual meeting, nominations and proposals of other business must be: (a) specified in the Company’s notice of meeting (or any supplement thereto) given by or at the direction of the Board, (b) otherwise properly made at the annual general meeting, by or at the direction of the Board, or (c) otherwise properly requested to be brought before the annual general meeting by a member of the Company in accordance with these articles. For nominations of persons for election to the Board or proposals of other business to be properly requested by a member to be made at an annual general
|
41.
|
At any extraordinary general meeting of the members, only such business shall be conducted or considered, as shall have been properly brought before the meeting pursuant to the Company’s notice of meeting. To be properly brought before an extraordinary general meeting, proposals of business must be (a) specified in the Company’s notice of meeting (or any supplement thereto) given by or at the direction of the Board, (b) otherwise properly brought before the extraordinary general meeting, by or at the direction of the Board, or (c) otherwise properly brought before the meeting by any members of the Company pursuant to the valid exercise of power granted to them under the Acts.
|
42.
|
Nominations of persons for election to the Board may be made at an extraordinary general meeting of members at which directors are to be elected pursuant to the Company’s notice of meeting (a) by or at the direction of the Board, (b) by any members of the Company pursuant to the valid exercise of power granted to them under the Acts, or (c) provided that the Board has determined that directors shall be elected at such meeting by any member of the Company who (i) is a member at the time of giving of notice of such extraordinary general meeting and at the time of the extraordinary general meeting, (ii) is entitled to vote at the meeting and (iii) complies with the procedures set forth in these articles as to such nomination. The immediately preceding sentence shall be the exclusive means for a member to make nominations (other than matters properly brought under Rule 14a-8 under the Exchange Act and included in the Company’s notice of meeting) before an extraordinary general meeting of members.
|
43.
|
Except as otherwise provided by the Acts, the memorandum of association or these articles, the Chairman of any general meeting shall have the power to determine whether a nomination or any other business proposed to be brought before the general meeting was made or proposed, as the case may be, in accordance with these articles and, if any proposed nomination or other business is not in compliance with these articles, to declare that no action shall be taken on such nomination or other proposal and such nomination or other proposal shall be disregarded.
|
44.
|
No business shall be transacted at any general meeting unless a quorum is present at the time when the meeting proceeds to business. The Holders of shares, present in person or by proxy (whether or not such Holder actually exercises his voting rights in whole, in part or at all at the relevant general meeting), entitling them to exercise a majority of the voting power of the Company on the relevant record date shall constitute a quorum.
|
45.
|
Any general meeting duly called at which a quorum is not present shall be adjourned and the Company shall provide notice pursuant to article 37 in the event that such meeting is to be reconvened. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 45 are disapplied.
|
46.
|
The Chairman, if any, of the Board shall preside as Chairman at every general meeting of the Company, or if there is no such Chairman, or if he is not present within fifteen minutes after the time appointed for the holding of the meeting or is unwilling to act, the Directors present shall elect one of their number to be Chairman of the meeting.
|
47.
|
If at any meeting no Director is willing to act as Chairman or if no Director is present within fifteen minutes after the time appointed for holding the meeting, the members present shall choose one of their number to be Chairman of the meeting.
|
48.
|
The Chairman may, with the consent of any meeting at which a quorum is present, and shall if so directed by the meeting, adjourn the meeting from time to time and from place to place without notice other than by announcement of the time and place of the adjourned meeting by the Chairman of the meeting. The Chairman of the meeting may at any time without the consent of the meeting adjourn the meeting to another time and/or place if, in his opinion, it would facilitate the conduct of the business of the meeting to do so or if he is so directed by the Board. Save as aforesaid, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 48 are disapplied.
|
49.
|
At any general meeting a resolution put to the vote of the meeting shall be decided on a show of hands unless a poll is (before or on the declaration of the result of the show of hands) demanded in accordance with the Acts, including by:
|
(a)
|
the Chairman; or
|
(b)
|
by at least three members present in person or by proxy; or
|
(c)
|
by any member or members present in person or by proxy and representing not less than one-tenth of the total voting rights of all the members having the right to vote at the meeting; or
|
(d)
|
by a member or members holding shares in the Company conferring the right to vote at the meeting being shares on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all the shares conferring that right.
|
50.
|
Except as provided in article 51, if a poll is duly demanded it shall be taken in such manner as the Chairman directs, and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded.
|
51.
|
A poll demanded on the election of the Chairman or on a question of adjournment shall be taken forthwith. A poll demanded on any other question shall be taken at such time as the Chairman of the meeting directs, and any business other than that on which a poll has been demanded may be proceeded with pending the taking of the poll.
|
52.
|
Where there is an equality of votes, whether on a show of hands or on a poll, the Chairman of the meeting at which the show of hands takes place or at which the poll is demanded shall be entitled to a casting vote in addition to any other vote he may have.
|
53.
|
Unless the Directors otherwise determine, no member shall be entitled to vote at any general meeting or any separate meeting of the Holders of any class of shares in the Company, either in person or by proxy, or to exercise any privilege as a member in respect of any share held by him unless all monies then payable by him in respect of that share have been paid.
|
54.
|
Without qualification or limitation, subject to article 67, for any nominations or any other business to be properly brought before an annual general meeting by a member pursuant to article 40, the member must have given timely notice thereof (including, in the case of nominations, the completed and signed questionnaire, representation and agreement required by article 68), and timely updates and supplements thereof, in writing to the Secretary, and such other business must otherwise be a proper matter for member action.
|
55.
|
To be timely, a member’s notice for any nominations or any other business to be properly brought before an annual general meeting by a member pursuant to article 40 shall be delivered to the Secretary at the Office by close of business on that day that is not less than 120 days prior to the first anniversary of the day of release to shareholders of the Company’s proxy statement issued pursuant to section 14(a) of the Exchange Act in respect of the preceding year’s annual general meeting; provided, however, that in the event that the date of the annual general meeting is changed by more than 30 days from the date contemplated at the time of the previous year’s proxy statement, notice by the member must be so delivered by close of business on the day that is not less than the later of (a) 150 days prior to the day of the contemplated annual general meeting or (b) ten days after the day on which public announcement of the date of the contemplated annual general meeting is first made by the Company; provided, further, that with respect to the first annual general meeting of the Company, notice by the member must be so delivered by close of business on the day that is not less than ten days after the day on which public announcement of the date of such meeting is first made by the Company. In no event shall any adjournment or postponement of an annual general meeting, or the public announcement thereof, commence a new time period for the giving of a member’s notice as described above.
|
56.
|
Notwithstanding anything in article 55 to the contrary, in the event that the number of directors to be elected to the Board is increased by the Board, and there is no public announcement by the Company naming all of the nominees for director or specifying the size of the increased Board at least 130 days prior to the first anniversary of the day of release to shareholders of the Company’s proxy statement issued pursuant to section 14(a) of the Exchange Act in respect of the preceding year’s annual general meeting, a member’s notice required by articles 54-57 shall also be considered timely, but only with respect to nominees for any new positions created by such increase, if it shall be delivered to the Secretary at the Office not later than the close of business on the day that is ten days after the day on which such public announcement is first made by the Company.
|
57.
|
In addition, to be considered timely, a member’s notice shall further be updated and supplemented, if necessary, so that the information provided or required to be provided in such notice shall be true and correct as of the record date for the meeting and as of the date that is ten business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to the Secretary at the Office not later than five business days after the record date for the meeting in the case of the update and supplement required to be made as of the record date, and not later than eight business days prior to the date for the meeting or any adjournment or postponement thereof in the case of the update and supplement required to be made as of ten business days prior to the meeting or any adjournment or postponement thereof.
|
58.
|
Subject to article 67, in the event the Company calls an extraordinary general meeting of members for the purpose of electing one or more directors to the Board, any member may nominate a person or persons (as the case may be) for election to such position(s) as specified in the Company’s notice of meeting, provided that the member gives timely notice thereof (including the completed and signed questionnaire, representation and agreement required by article 68), and timely updates and supplements thereof, in writing, to the Secretary.
|
59.
|
To be timely, a member’s notice for any nomination to be properly brought before such an extraordinary general meeting shall be delivered to the Secretary at the Office by close of business on the day that is not less than 120 days prior to the date of such extraordinary general meeting or, if the first public announcement of the date of such extraordinary general meeting is less than 130 days prior to the date of such extraordinary general meeting, by close of business on the day that is ten days after the day on which public announcement of the date of the extraordinary general meeting and of the nominees proposed by the Board to be elected at such meeting is first made by the Company. In no event shall any adjournment or postponement of an extraordinary general meeting, or the public announcement thereof, commence a new time period for the giving of a member’s notice as described above.
|
60.
|
In addition, to be considered timely, a member’s notice shall further be updated and supplemented, if necessary, so that the information provided or required to be provided in such notice shall be true and correct as of the record date for the meeting and as of the date that is ten business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to the Secretary at the Office not later than five business days after the record date for the meeting in the case of the update and supplement required to be made as of the record date, and not later than eight business days prior to the date for the meeting, any adjournment or postponement thereof in the case of the update and supplement required to be made as of ten business days prior to the meeting or any adjournment or postponement thereof.
|
61.
|
To be in proper form, a member’s notice (whether given pursuant to articles 54-57 or articles 58-60) to the Secretary must include the following, as applicable:
|
62.
|
As to the member giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made, a member’s notice must set forth: (i) the name and address of such member, as they appear on the Company’s books, of such beneficial owner, if any, and of their respective affiliates or associates or others acting in concert therewith, (ii) (A) the class or series and number of shares of the Company which are, directly or indirectly, owned beneficially and of record by such member, such beneficial owner and their respective affiliates or associates or others acting in concert therewith, (B) any option, warrant, convertible security, share appreciation right, or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of shares of the Company or with a value derived in whole or in part from the value of any class or series of shares of the Company, or any derivative or synthetic arrangement having the characteristics of a long position in any class or series of shares of the Company, or any contract, derivative, swap or other transaction or series of transactions designed to produce economic benefits and risks that correspond substantially to the ownership of any class or series of shares of the Company, including due to the fact that the value of such contract, derivative, swap or other transaction or series of transactions is determined by reference to the price, value or volatility of any class or series of shares of the Company, whether or not such instrument, contract or right shall be subject to settlement in the underlying class or series of shares of the Company, through the delivery of cash or other property, or otherwise, and without regard to whether the member, the beneficial owner, if any, or any affiliates or associates or others acting in concert therewith, may have entered into transactions that hedge or mitigate the economic effect of such instrument, contract or right, or any other direct or indirect opportunity to profit or share in any profit derived from any increase or decrease in the value of shares of the Company (any of the foregoing, a “Derivative Instrument”) directly or indirectly owned beneficially by such member, the beneficial owner, if any, or any affiliates or associates or others acting in concert therewith, (C) any proxy, contract, arrangement, understanding, or relationship pursuant to which such member has a right to vote any class or series of shares of the Company, (D) any agreement, arrangement, understanding, relationship or otherwise, including any repurchase or similar so-called “stock borrowing” agreement or arrangement, involving such member, directly or indirectly, the purpose or effect of which is to mitigate loss to, reduce the economic risk (of ownership or otherwise) of any class or series of the shares of the Company by, manage the risk of share price changes for, or increase or decrease the voting power of, such member with respect to any class or series of the shares of the Company, or which provides, directly or indirectly, the opportunity to profit or share in any profit derived from any decrease in the price or value of any class or series of the shares of the Company (any of the foregoing, a “Short Interest”), (E) any rights to dividends on the shares of the Company owned beneficially by such member that are separated or separable from the underlying shares of the Company, (F) any proportionate interest in shares of the Company or Derivative Instruments held, directly or indirectly, by a general or limited partnership in which such member is a general partner or, directly or indirectly, beneficially owns an interest in a general partner of such general or limited partnership, (G) any performance-related fees (other than an asset-based fee) that such member is entitled to based on any increase or decrease in the value of shares of the Company or Derivative Instruments, if any, including without limitation any such interests held by members of such member’s immediate family sharing the same household, (H) any significant equity interests or any Derivative Instruments or Short Interests in any principal competitor of the Company held by such member, and (I) any direct or indirect interest of such member in any contract with the Company, any affiliate of the Company or any principal competitor of the Company (including, in any such case, any employment agreement, collective bargaining agreement or consulting agreement), and (iii) any other information relating to such member and beneficial owner, if any, that would be required to be disclosed in a proxy statement and form or proxy or other filings required to be made in connection with solicitations of proxies for, as applicable, the proposal and/or for the election of directors in a contested election pursuant to section 14 of the Exchange Act and the rules and regulations promulgated thereunder.
|
63.
|
If the notice relates to any business other than a nomination of a director or directors that the member proposes to bring before the meeting, a member’s notice must, in addition to the matters set forth in article 62 above, also set forth: (i) a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting and any material interest of such member and beneficial owner, if any, in such business, (ii) the text of the proposal or business (including the text of any resolutions proposed for consideration and, in the event that such proposal or business includes a proposal to amend these articles, the text of the proposed amendment), and (iii) a description of all agreements, arrangements and understandings between such member and beneficial owner, if any, and any other person or persons (including their names) in connection with the proposal of such business by such member.
|
64.
|
As to each person, if any, whom the member proposes to nominate for election or re-election to the Board, a member’s notice must, in addition to the matters set forth in article 62 above, also set forth: (i) all information relating to such person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors in a contested election pursuant to section 14 of the Exchange Act and the rules and regulations promulgated thereunder (including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected) and (ii) a description of all direct and indirect compensation and other material monetary agreements, arrangements and understandings during the past three years, and any other material relationships, between or among such member and beneficial owner, if any, and their respective affiliates and associates, or others acting in concert therewith, on the one hand, and each proposed nominee, and his or her respective affiliates and associates, or others acting in concert therewith, on the other hand, including, without limitation all information that would be required to be disclosed pursuant to Rule 404 promulgated under Regulation S-K under the Exchange Act if the member making the nomination and any beneficial owner on whose behalf the nomination is made, if any, or any affiliate or associate thereof or person acting in concert therewith, were the “registrant” for purposes of such rule and the nominee were a director or executive officer of such registrant.
|
65.
|
With respect to each person, if any, whom the member proposes to nominate for election or re-election to the Board, a member’s notice must, in addition to the matters set forth in articles 62 and 64 above, also include a completed and signed questionnaire, representation and agreement required by article 68 of these articles. The Company may require any proposed nominee to furnish such other information as may reasonably be required by the Company to determine the eligibility of such proposed nominee to serve as an independent director of the Company or that could be material to a reasonable member’s understanding of the independence, or lack thereof, of such nominee.
|
66.
|
Notwithstanding the provisions of these articles, a member shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in articles 54-68; provided, however, that any references in these articles to the Exchange Act or the rules promulgated thereunder are not intended to and shall not limit the separate and additional requirements set forth in these articles with respect to nominations or proposals as to any other business to be considered pursuant to articles 39-43.
|
67.
|
Nothing in these articles shall be deemed to affect any rights (i) of members to request inclusion of proposals in the Company’s proxy statement pursuant to Rule 14a-8 under the Exchange Act, (ii) of the holders of any series of preferred shares if and to the extent provided for under law, the memorandum of association or these articles or (iii) of members of the Company to bring business before an extraordinary general meeting pursuant to the valid exercise of power granted to them under the Acts. Subject to Rule 14a-8 under the Exchange Act, nothing in these articles shall be construed to permit any member, or give any member the right, to include or have disseminated or described in the Company’s proxy statement any nomination of director or directors or any other business proposal.
|
68.
|
Subject to the rights of members of the Company to propose nominations at an extraordinary general meeting pursuant to the valid exercise of power granted to them under the Acts, to be eligible to be a nominee for election or re-election as a director of the Company, a person must deliver (in accordance with the time periods prescribed for delivery of notice under articles 54-67) to the Secretary at the Office a written questionnaire with respect to the background and qualification of such person and the background of any other person or entity on whose behalf the nomination is being made (which questionnaire shall be provided by the Secretary upon written request), and a written representation and agreement (in the form provided by the Secretary upon written request) that such person (A) is not and will not become a party to (1) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Company, will act or vote on any issue or question (a “Voting Commitment”) that has not been disclosed to the Company or (2) any Voting Commitment that could limit or interfere with such person’s ability to comply, if elected as a director of the Company, with such person’s fiduciary duties under applicable law, (B) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Company with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director that has not been disclosed therein, and (C) in such person’s individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Company, and will comply with all applicable corporate governance, conflict of interest, confidentiality and share ownership and trading policies and guidelines of the Company publicly disclosed from time to time.
|
69.
|
Subject to any special rights or restrictions as to voting for the time being attached by or in accordance with these articles to any class of shares, on a show of hands every member present in person and every proxy shall have one vote, but so that no one member shall on a show of hands have more than one vote in respect of the aggregate number of shares of which he is the Holder, and on a poll every member who is present in person or by proxy shall have one vote for each share of which he is the Holder.
|
70.
|
When there are joint Holders, the vote of the senior who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of the other joint Holders; and for this purpose, seniority shall be determined by the order in which the names stand in the Register.
|
71.
|
A member of unsound mind, or in respect of whom an order has been made by any court having jurisdiction (whether in Ireland or elsewhere) in matters concerning mental disorder, may vote, whether on a show of hands or on a poll, by his committee, receiver, guardian or other person appointed by that court and any such committee, receiver, guardian or other person may vote by proxy on a show of hands or on a poll. Evidence to the satisfaction of the Directors of the authority of the person claiming to exercise the right to vote shall be received at the Office or at such other address as is specified in accordance with these articles for the receipt of appointments of proxy, not less than forty-eight hours before the time appointed for holding the meeting or adjourned meeting at which the right to vote is to be exercised and in default the right to vote shall not be exercisable. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 71 are disapplied.
|
72.
|
No objection shall be raised to the qualification of any voter except at the meeting or adjourned meeting at which the vote objected to is given or tendered, and every vote not disallowed at such meeting shall be valid for all purposes. Any such objection made in due time shall be referred to the Chairman of the meeting, whose decision shall be final and conclusive.
|
73.
|
Votes may be given either personally or by proxy.
|
74.
|
(a) Every member entitled to attend and vote at a general meeting may appoint a proxy to attend, speak and vote on his behalf and may appoint more than one proxy to attend, speak and vote at the same meeting. The appointment of a proxy shall be in any form which the Directors may approve, subject to compliance with any requirements as to form under the Acts, and shall be signed by or on behalf of the appointer. A body corporate must sign a form of proxy under its common seal or under the hand of a duly authorised officer thereof. A proxy need not be a member of the Company. The appointment of a proxy in electronic or other form shall only be effective in such manner as the Directors may approve, subject to any requirements of the Acts. An instrument or other form of communication appointing or evidencing the appointment of a proxy or a corporate representative (other than a standing proxy or representative) together with such evidence as to its due execution as the Directors may from time to time require, shall be returned to the address or addresses stated in the notice of meeting or adjourned meeting or any other information or communication by such time or times as may be specified in the notice of meeting or adjourned meeting or in any other such information or communication (which times may differ when more than one place is so specified) or, if no such time is specified, at any time prior to the holding of the relevant meeting or adjourned meeting at which the appointee proposes to vote, and, subject to the Acts, if not so delivered the appointment shall not be treated as valid.
|
(b)
|
Without limiting the foregoing, the Directors may from time to time permit appointments of a proxy to be made by means of an electronic or internet communication or facility and may in a similar manner permit supplements to, or amendments or revocations of, any such electronic or internet communication or facility to be made. For the avoidance of doubt, such appointments of proxy as made by electronic or internet communication or facility as permitted by the Directors will be deemed to be deposited at the place specified for such purpose once received by the Company. The Directors may in addition prescribe the method of determining the time at which any such electronic or internet communication or facility is to be treated as deposited at the place specified for such purpose. The Directors may treat any such electronic or internet communication or facility which purports to be or is expressed to be sent on behalf of a Holder of a share as sufficient evidence of the authority of the person sending that instruction to send it on behalf of that Holder.
|
75.
|
A body corporate which is a member of the Company may authorise such person as it thinks fit to act as its representative at any meeting of the Company or of any class of members of the Company and the person so authorised shall be entitled to exercise the same powers on behalf of the body corporate which he represents as that body corporate could exercise
|
76.
|
An appointment of proxy relating to more than one meeting (including any adjournment thereof) having once been received by the Company for the purposes of any meeting shall not require to be delivered, deposited or received again by the Company for the purposes of any subsequent meeting to which it relates.
|
77.
|
Receipt by the Company of an appointment of proxy in respect of a meeting shall not preclude a member from attending and voting at the meeting or at any adjournment thereof. An appointment proxy shall be valid, unless the contrary is stated therein, as well for any adjournment of the meeting as for the meeting to which it relates.
|
78.
|
(a)
A vote given or poll demanded in accordance with the terms of an appointment of proxy or a resolution authorising a representative to act on behalf of a body corporate shall be valid notwithstanding the death or insanity of the principal, or the revocation of the appointment of proxy or of the authority under which the proxy was appointed or of the resolution authorising the representative to act or transfer of the share in respect of which the proxy was appointed or the authorisation of the representative to act was given, provided that no intimation in writing (whether in electronic form or otherwise) of such death, insanity, revocation or transfer shall have been received by the Company at the Office, before the commencement of the meeting or adjourned meeting at which the appointment of proxy is used or at which the representative acts; provided, however, that where such intimation is given in electronic form it shall have been received by the Company at least 24 hours (or such lesser time as the Directors may specify) before the commencement of the meeting.
|
(b)
|
The Directors may send, at the expense of the Company, by post, electronic mail or otherwise, to the members forms for the appointment of a proxy (with or without stamped envelopes for their return) for use at any general meeting or at any class meeting, either in blank or nominating any one or more of the Directors or any other persons in the alternative.
|
79.
|
The instrument appointing a proxy shall, be deemed to confer authority to demand or join in demanding a poll.
|
80.
|
Subject to the Acts, a resolution in writing signed by all of the members for the time being entitled to attend and vote on such resolution at a general meeting (or being bodies corporate by their duly authorised representatives) shall be as valid and effective for all purposes as if the resolution had been passed at a general meeting of the Company duly convened and held, and may consist of several documents in like form each signed by one or more persons, and if described as a special resolution shall be deemed to be a special resolution. Any such resolution shall be served on the Company.
|
81.
|
The number of Directors shall not be less than two nor more than 13. The continuing Directors may act notwithstanding any vacancy in their body, provided that if the number of the Directors is reduced below the prescribed minimum the remaining Director or Directors shall appoint forthwith an additional Director or additional Directors to make up such minimum or shall convene a general meeting of the Company for the purpose of making such appointment. If, at any annual general meeting of the Company, the number of Directors is reduced below the prescribed minimum due to the failure of any Directors to be re-elected, then in those circumstances, the two Directors which receive the highest number of votes in favour of re-election shall be re-elected and shall remain Directors until such time as additional Directors have been appointed to replace them as Directors. If, at any annual general meeting of the Company, the number of Directors is reduced below the prescribed minimum in any circumstances where one Director is re-elected, then that Director shall hold office until the next annual general meeting and the Director which (excluding the re-elected Director) receives the highest number of votes in favour of re-election shall be re-elected and shall remain a Director until such time as one or more additional Directors have been appointed to replace him or her. If there are no Director or Directors able or willing to act then any two members may summon a general meeting for the purpose of appointing Directors. Any additional Director so appointed shall hold office (subject to the provisions of the Acts and these articles) only until the conclusion of the annual general meeting of the Company next following such appointment unless he is re-elected during such meeting. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 81 are disapplied.
|
82.
|
Each Director, not being an employee, shall be paid a fee for their services and each Director who is an employee of the Company or the Group shall be paid remuneration (to include benefits in kind) for their employment. The fee or remuneration paid to each Director shall be at such rate and on such basis as may from time to time be determined by the Board. The Directors may also be paid all travelling, hotel and other expenses properly incurred by them in attending and returning from meetings of the Directors or any committee of the Directors or general meetings of the Company or in connection with the business of the Company. The amount, rate or basis of the fees, remuneration or expenses paid to the Directors shall not require approval or ratification by the Company in general meeting. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 82 are disapplied
|
83.
|
If any Director shall be called upon to perform extra services which in the opinion of the Directors are outside the scope of the ordinary duties of a Director, the Company may remunerate such Director either by a fixed sum or by a percentage of profits or otherwise as may be determined by a resolution passed at a meeting of the Directors and such remuneration may be either in addition to or in substitution for any other remuneration to which he may be entitled as a Director.
|
84.
|
No shareholding qualification for Directors shall be required. A Director (whether or not a member of the Company) shall be entitled to attend and speak at general meetings.
|
85.
|
Unless the Company otherwise directs, a Director of the Company may be or become a Director or other officer of, or otherwise interested in, any company promoted by the Company or in which the Company may be interested as Holder or otherwise, and no such Director shall be accountable to the Company for any remuneration or other benefits received by him as a Director or officer of, or from his interest in, such other company.
|
86.
|
Subject to the Acts, the Directors may exercise all the powers of the Company to borrow or raise money, and to mortgage or charge its undertaking, property, assets and uncalled capital or any part thereof and to issue debentures, debenture stock and other securities whether outright or as collateral security for any debt, liability or obligation of the Company or of any third party, without any limitation as to amount.
|
87.
|
Subject always to article 107A, the business of the Company shall be managed by the Directors, who may pay all expenses incurred in promoting and registering the Company and may exercise all such powers of the Company as are not, by the Acts or by these articles, required to be exercised by the Company in general meeting, subject, nevertheless, to any of these articles and to the provisions of the Acts. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as articles 87 to 97 are disapplied.
|
88.
|
The Directors may from time to time and at any time by power of attorney appoint any company, firm or person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys of the Company for such purposes and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Directors under these articles) and for such period and subject to such conditions as they may think fit, and any such power of attorney may contain such provisions for the protection of persons dealing with any such attorney as the Directors may think fit, and may also authorise any such attorney to delegate all or any of the powers, authorities and discretions vested in him.
|
89.
|
The Company may exercise the powers conferred by the Acts with regard to having an official seal for use abroad and such powers shall be vested in the Directors.
|
90.
|
A Director who is in any way, whether directly or indirectly, interested in a contract or proposed contract with the Company shall declare the nature of his interest at a meeting of the Directors in accordance with the Acts.
|
91.
|
A Director may vote in respect of any contract, appointment or arrangement in which he is interested, and he shall be counted in the quorum present at the meeting.
|
92.
|
A Director may hold and be remunerated in respect of any other office or place of profit under the Company or any other company in which the Company may be interested (other than the office of auditor of the Company or any subsidiary thereof) in conjunction with his office of Director for such period and on such terms as to remuneration and otherwise as the Directors may determine, and no Director or intending Director shall be disqualified by his office from contracting or being interested, directly or indirectly, in any contract or arrangement with the Company or any such other company either with regard to his tenure of any such other office or place of profit or as vendor, purchaser or otherwise nor shall any Director so contracting or being so interested be liable to account to the Company for any profits and advantages accruing to him from any such contract or arrangement by reason of such Director holding that office or of the fiduciary relationship thereby established.
|
93.
|
The Directors may exercise the voting powers conferred by shares of any other company held or owned by the Company in such manner in all respects as they think fit and in particular they may exercise their voting powers in favour of any resolution appointing the Directors or any of them as Directors or officers of such other company or providing for the payment of remuneration or pensions to the Directors or officers of such other company.
|
94.
|
Any Director may act by himself or his firm in a professional capacity for the Company, and he or his firm shall be entitled to remuneration for professional services as if he were not a Director, but nothing herein contained shall authorise a Director or his firm to act as auditor to the Company.
|
95.
|
All cheques, promissory notes, drafts, bills of exchange and other negotiable instruments and all receipts for money paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed, as the case may be, by such person or persons and in such manner as the Directors shall from time to time by resolution determine.
|
96.
|
The Directors shall cause minutes to be made in books provided for the purpose:
|
(a)
|
of all appointments of officers made by the Directors;
|
(b)
|
of the names of the Directors present at each meeting of the Directors and of any committee of the Directors; and
|
(c)
|
of all resolutions and proceedings at all meetings of the Company and of the Directors and of committees of Directors.
|
97.
|
The Directors may procure the establishment and maintenance of or participate in, or contribute to any non-contributory or contributory pension or superannuation fund, scheme or arrangement or life assurance scheme or arrangement for the benefit of, and pay, provide for or procure the grant of donations, gratuities, pensions, allowances, benefits or emoluments to any persons (including Directors or other officers) who are or shall have been at any time in the employment or service of the Company or of any company which is or was a subsidiary of the Company or of the predecessor in business of the Company or any such subsidiary or holding Company and the wives, widows, families, relatives or dependants of any such persons. The Directors may also procure the establishment and subsidy of or subscription to and support of any institutions, associations, clubs, funds or trusts calculated to be for the benefit of any such persons as aforesaid or otherwise to advance the interests and well being of the Company or of any such other Company as aforesaid, or its members, and payments for or towards the insurance of any such persons as aforesaid and subscriptions or guarantees of money for charitable or benevolent objects or for any exhibition or for any public, general or useful object. Provided that any Director shall be entitled to retain any benefit received by him under this article, subject only, where the Acts require, to disclosure to the members and the approval of the Company in general meeting.
|
98.
|
The office of a Director shall be vacated ipso facto if the Director:
|
(a)
|
is restricted or disqualified to act as a Director under the Acts; or
|
(b)
|
resigns his office by notice in writing to the Company or in writing offers to resign and the Directors resolve to accept such offer; or
|
(c)
|
is removed from office under article 103.
|
99.
|
At every annual general meeting of the Company, all of the Directors shall retire from office unless re-elected by Ordinary Resolution at the annual general meeting. A Director retiring at a meeting shall retain office until the close or adjournment of the meeting. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as articles 99 to 107A are disapplied.
|
100.
|
Every Director shall be eligible to stand for re-election at an annual general meeting.
|
101.
|
If a Director offers himself for re-election, he shall be deemed to have been re-elected, unless at such meeting the Ordinary Resolution for the re-election of such Director has been defeated.
|
102.
|
The Company may from time to time by Special Resolution increase or reduce the maximum number of Directors.
|
103.
|
The Company may, by Ordinary Resolution, of which extended notice has been given in accordance with the Acts, remove any Director before the expiration of his period of office notwithstanding anything in these articles or in any agreement between the Company and such Director. Such removal shall be without prejudice to any claim such Director may have for damages for breach of any contract of service between him and the Company.
|
104.
|
The Company may, by Ordinary Resolution, appoint another person in place of a Director removed from office under article 103 and without prejudice to the powers of the Directors under article 81 the Company in general meeting by Ordinary Resolution may appoint any person to be a Director either to fill a casual vacancy or as an additional Director, subject to the maximum number of Directors set out in article 81.
|
105.
|
The Directors may appoint a person who is willing to act to be a Director, either to fill a vacancy or as an additional Director, provided that the appointment does not cause the number of Directors to exceed any number fixed by or in accordance with these articles as the maximum number of Directors. A Director so appointed shall hold office only until the next following annual general meeting. If not re-appointed at such annual general meeting, such Director shall vacate office at the conclusion thereof.
|
106.
|
The Directors are not entitled to appoint alternate directors and the terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 106 are disapplied.
|
107.
|
The Directors may appoint any person to fill the following positions:
|
(a)
|
Chairman of the Board:
|
(b)
|
Vice Chairman:
|
(c)
|
Subject always to article 107A, such other officers as the Directors may, from time to time, determine, including but not limited to, chief executive officer, president, vice president, Treasurer, controller and assistant treasurer.
|
(a)
|
Effective as of the Merger Effective Time, Mr. Alex Molinaroli shall become and serve as chief executive officer of the Company (“Chief Executive Officer”) and the Chairman of the Company.
|
(b)
|
Effective as of the Merger Effective Time, Mr. George Oliver shall become and serve as president of the Company (“President”) and chief operating officer of the Company (“Chief Operating Officer”).
|
(c)
|
Mr. Molinaroli shall cease to be Chief Executive Officer, and Mr. Oliver shall cease to be President and Chief Operating Officer and shall be the successor to Mr. Molinaroli as Chief Executive Officer, in each case with effect from the date that is 18 months after the Merger Effective Time or any such earlier date as of which Mr. Molinaroli ceases for any reason to serve in the position of Chief Executive Officer (the “First Succession Date”).
|
(d)
|
Mr. Molinaroli shall continue to serve as Chairman with executive functions such that he shall act as executive chairman (“Executive Chairman”) with effect from the First Succession Date (subject to the provisions of this article 107A).
|
(e)
|
Mr. Molinaroli shall cease to be Executive Chairman (including the office of Chairman) and Mr. Oliver shall be the successor to Mr. Molinaroli as Chairman, in each case with effect from the date that is 12 months after the First Succession Date or any such earlier date as of which Mr. Molinaroli ceases for any reason to serve in the position of Executive Chairman (the “Second Succession Date”), at which point Mr. Oliver shall continue to serve as Chief Executive Officer in addition to his position as Chairman (subject to the provisions of this article 107A).
|
(f)
|
During the period beginning at the Merger Effective Time and ending on the date that is 3 months after the Second Succession Date (the “Specified Period”):
|
(i)
|
no person shall be appointed, removed or replaced as Chief Executive Officer, Chairman, Executive Chairman, President or Chief Operating Officer save as provided for in article 107A (a) to (e); and
|
(ii)
|
no amendment or modification to or, except in accordance with its existing terms, termination of any employment or similar agreement with Messrs. Molinaroli and/or Oliver in effect as of the Merger Effective Time shall occur;
|
(iii)
|
no material modification or diminution of the roles, functions and/or powers of the position of Chairman, President, Chief Operating Officer and/or Chief Executive Officer as they exist at the Merger Effective Time, or in the case of the position of Executive Chairman, as defined by the Board of Directors at or prior to the Merger Effective Time, shall occur,
|
(g)
|
In the event that during the Specified Period any of the individuals named in article 107A (a) to (f) shall be unable (whether by reason of death, permanent disability, retirement or otherwise) or unwilling to be appointed to or continue in such office, other than as expressly set forth in article 107A (a) to (e) with respect to Mr. Molinaroli at the Merger Effective Time, the succession of Mr. Oliver as Chief Executive Officer on the First Succession Date or with respect to the succession of Mr. Oliver as Chairman on the Second Succession Date, the vacancy created thereby shall be filled only by the affirmative vote of at least 75 per cent of the total number of Non-Executive Directors.
|
(h)
|
Any appointment or cessation in office provided for in article 107A (a) to (e) shall be automatically effective from the time and date provided for such appointment or cessation in office in accordance with article 107A (a) to (e) and no further resolution, notice or other action shall be required to make such appointment or cessation in office effective.
|
(i)
|
The Board shall not, without the affirmative vote of at least 75 per cent of the total number of Non-Executive Directors, propose any business at a general meeting amending, deleting or otherwise adversely impacting the operation or effect of this article 107A (in whole or in part) nor propose any scheme of arrangement which has a similar impact or effect.
|
(j)
|
Nothing in this article 107A shall limit any rights of shareholders under section 146 of the Act or article 99, including the rights of shareholders to remove and/or replace and/or not re-elect, under section 146 of the Act or article 99, any Director, including a Chairman, Executive Chairman or any President or Chief Executive Officer that is a Director.
|
(k)
|
This article 107A (including any references to this article 107A in the articles) shall come into effect at the Merger Effective Time and shall cease to have effect on the date that is 3 months after the Second Succession Date.
|
(l)
|
In the event of any conflict between this article 107A and any other provision of these articles, article 107A shall take precedence.
|
(m)
|
“Merger Effective Time” means the time and date of the filing of articles of merger with respect to the business combination through merger of Jagara Merger Sub LLC with and into Johnson Controls, Inc., with Johnson Controls, Inc. being the surviving corporation, or if such later time and date agreed between the Company and Johnson Controls, Inc. in writing as specified in such articles of merger in respect of such business combination through merger.
|
(n)
|
“Non-Executive Director” means a Director who is not the Chairman or an employee of the Company or a subsidiary of the Company.
|
108.
|
(a) The Directors may meet together for the dispatch of business, adjourn and otherwise regulate their meetings as they may think fit. The quorum necessary for the transaction of the business of the Directors shall be a majority of the Directors in office at the time when the meeting is convened. Questions arising at any meeting shall be decided by a majority of votes, save as otherwise provided in article 107A. Each director present and voting shall have one vote. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 108 are disapplied.
|
(b)
|
Any Director may participate in a meeting of the Directors by means of telephonic or other such communication whereby all persons participating in the meeting can hear each other speak, and participation in a meeting in this manner shall be deemed to constitute presence in person at such meeting and any director may be situated in any part of the world for any such meeting.
|
109.
|
The Chairman or a majority of the Directors may, and the Secretary on the requisition of the Chairman or a majority of the Directors shall, at any time summon a meeting of the Directors. Any provision of an enactment permitting the Secretary to summon a meeting of the Directors on the requisition of a Director acting alone shall not apply to the Company.
|
110.
|
The continuing Directors may act notwithstanding any vacancy in their number but, if and so long as their number is reduced below the number fixed by or pursuant to these articles as the minimum number of Directors, the continuing Directors or Director may act for the purpose of increasing the number of Directors to that number or of summoning a general meeting of the Company but for no other purpose.
|
111.
|
The Directors may elect a Chairman of their meetings and determine the period for which he is to hold office. Any Director may be elected no matter by whom he was appointed but if no such Chairman is elected, or if at any meeting the Chairman is not present within five minutes after the time appointed for holding the same, the Directors present may choose one of their number to be Chairman of the meeting. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 111 are disapplied.
|
112.
|
Subject always to article 107A, the Board may from time to time designate committees of the Board, with such powers and duties as the Board may decide to confer on such committees, and shall, for those committees and any others provided for herein, elect a director or directors to serve as the member or members, designating, if it desires, other directors as alternate members who may replace any absent or disqualified member at any meeting of the committee. Adequate provision shall be made for notice to members of all meetings; a majority of the members shall constitute a quorum unless the committee shall consist of one or two members, in which event one member shall constitute a quorum; and all matters shall be determined by a majority vote of the members present. Action may be taken by any committee without a meeting if all members thereof consent thereto in writing, and the writing or writings are filed with the minutes of the proceedings of such committees.
|
113.
|
A committee may elect a chairman of its meeting. If no such chairman is elected, or if at any meeting the chairman is not present within five minutes after the time appointed for holding the same, the members present may choose one of their number to be chairman of the meeting.
|
114.
|
All acts done by any meeting of the Directors or of a committee of Directors or by any person acting as a Director shall, notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such Director or person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such person had been duly appointed and was qualified to be a Director.
|
115.
|
Notwithstanding anything in these articles or in the Acts which might be construed as providing to the contrary, notice of every meeting of the Directors shall be given to all Directors either by mail not less than 48 hours before the date of the meeting, by telephone, email, or any other electronic means on not less than 24 hours’ notice, or on such shorter notice as person or persons calling such meeting may deem necessary or appropriate and which is reasonable in the circumstances. Any director may waive any notice required to be given under these articles, and the attendance of a director at a meeting shall be deemed to be a waiver by such Director.
|
116.
|
Subject to article 107A, a resolution or other document in writing (in electronic form or otherwise) signed (whether by electronic signature, advanced electronic signature or otherwise as approved by the Directors) by (a) all of the Directors entitled to receive notice of a meeting of Directors or of a committee of Directors or (b) a majority of the Directors where notice in accordance with article 115 of the resolution or other document in writing has been given to all Directors entitled to receive notice of a meeting of Directors or of a committee of Directors, shall be as valid as if it had been passed at a meeting of Directors or (as the case may be) a committee of Directors duly convened and held, and may consist of several documents in the like form each signed by one or more Directors, and such resolution or other document or documents when duly signed may be delivered or transmitted (unless the Directors shall otherwise determine either generally or in any specific case) by facsimile transmission, electronic mail or some other similar means of transmitting the contents of documents. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 116 are disapplied.
|
117.
|
(a) The Directors shall ensure that the Seal (including any official securities seal kept pursuant to the Acts) shall be used only by the authority of the Directors or of a committee authorised by the Directors and that every instrument to which the seal shall be affixed shall be signed by a Director or some other person appointed by the Directors for that purpose. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 117 are disapplied.
|
(b)
|
The Company may exercise the powers conferred by the Acts with regard to having an official seal for use abroad and such powers shall be vested in the Directors.
|
118.
|
The Company in general meeting may declare dividends, but no dividends shall exceed the amount recommended by the Directors. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as articles 118 to 128 are disapplied.
|
119.
|
The Directors may from time to time pay to the members such interim dividends as appear to the Directors to be justified by the profits of the Company.
|
120.
|
No dividend or interim dividend shall be paid otherwise than in accordance with the provisions of the Acts.
|
121.
|
The Directors may, before recommending any dividend, set aside out of the profits of the Company such sums as they think proper as a reserve or reserves which shall, at the discretion of the Directors, be applicable for any purpose to which the profits of the Company may be properly applied and pending such application may at the like discretion either be employed in the business of the Company or be invested in such investments as the Directors may lawfully determine. The Directors may also, without placing the same to reserve, carry forward any profits which they may think it prudent not to divide.
|
122.
|
Subject to the rights of persons, if any, entitled to shares with special rights as to dividend, all dividends shall be declared and paid according to the amounts paid or credited as paid on the shares in respect whereof the dividend is paid. All dividends shall be apportioned and paid proportionately to the amounts paid or credited as paid on the shares during any portion or portions of the period in respect of which the dividend is paid; but if any share is issued on terms providing that it shall rank for dividend as from a particular date, such share shall rank for dividend accordingly.
|
123.
|
The Directors may deduct from any dividend payable to any member all sums of money (if any) immediately payable by him to the Company in relation to the shares of the Company.
|
124.
|
Any general meeting declaring a dividend or bonus and any resolution of the Directors declaring an interim dividend may direct payment of such dividend or bonus or interim dividend wholly or partly by the distribution of specific assets and in particular of paid up shares, debentures or debenture stocks of any other company or in any one or more of such ways, and the Directors shall give effect to such resolution, and where any difficulty arises in regard to such distribution, the Directors may settle the same as they think expedient, and in particular may fix the value for distribution of such specific assets or any part thereof and may determine that cash payments shall be made to any members upon the footing of the value so fixed, in order to adjust the rights of all the parties, and may vest any such specific assets in trustees as may seem expedient to the Directors.
|
125.
|
Any dividend or other moneys payable in respect of any share may be paid by cheque or warrant sent by post, at the risk of the person or persons entitled thereto, to the registered address of the Holder or, where there are joint Holders, to the registered address of that one of the joint Holders who is first named on the members Register or to such person and to such address as the Holder or joint Holders may in writing direct. Every such cheque or warrant shall be made payable to the order of the person to whom it is sent and payment of the cheque or warrant shall be a good discharge to the Company. Any joint Holder or other person jointly entitled to a share as aforesaid may give receipts for any dividend or other moneys payable in respect of the share. Any such dividend or other distribution may also be paid by any other method (including payment in a currency other than US$, electronic funds transfer, direct debit, bank transfer or by means of a relevant system) which the Directors consider appropriate and any member who elects for such method of payment shall be deemed to have accepted all of the risks inherent therein. The debiting of the Company’s account in respect of the relevant amount shall be evidence of good discharge of the Company’s obligations in respect of any payment made by any such methods.
|
126.
|
No dividend shall bear interest against the Company.
|
127.
|
If the Directors so resolve, any dividend which has remained unclaimed for twelve years from the date of its declaration shall be forfeited and cease to remain owing by the Company. The payment by the Directors of any unclaimed dividend or other moneys payable in respect of a share into a separate account shall not constitute the Company a trustee in respect thereof.
|
128.
|
(a) For the purposes of this article 128, the “Effective Time” shall mean the time at which the Merger becomes effective and “Merger” means the transaction pursuant to which the Company acquires by way of merger governed by the laws of the Swiss Confederation under the principle of universal succession the entire business, including all of the assets, liabilities, rights and obligations, howsoever arising, of Tyco International Ltd., a company incorporated pursuant to the laws of the Swiss Confederation.
|
(b)
|
Without limitation or prejudice to the Company’s obligations pursuant to the documents and laws effecting the Merger, the Directors are authorised to take all actions necessary to discharge any liabilities owed by Tyco International Ltd. assumed by the Company pursuant to or in connection with the Merger due from time to time, including (without limitation) the obligation to discharge any liability in respect of the dividend declared by Tyco International Ltd. on 5 March 2014, including (without limitation) in respect of (a) any instalment of such liability due to be paid (but unpaid) prior to the Effective Time and (b) any instalment of such liability due to be paid after the Effective Time (including the instalment to be discharged on or around February 2015), and, unless the Company is otherwise so notified by the relevant holder(s) in a manner satisfactory to the Directors, the entitlement to the payment of such liability attaching to each share in Tyco International Ltd. immediately prior to the Effective Date shall be recognised and deemed to attach to each Ordinary Share in the Company issued at the Effective Time pursuant to the Merger (including in respect of an instalment due to be paid after the Effective Time), and the entitlement to be paid any such liability shall be deemed to transfer and/or be transmitted with each transfer and/or transmission of such Ordinary Shares in the Company up to and including the relevant record date for determining the entitlement to any such liability, and the payment of any such liability to the holder of Ordinary Shares in the Company on the relevant record date for determining the entitlement to such liability shall constitute
|
(c)
|
Notwithstanding article 3(b)(ii), subject to the Act, the Directors are authorised to pay (at their sole discretion) an interim dividend to the holder of each Ordinary Share issued after the Effective Time (excluding, for the avoidance of doubt, any Ordinary Share issued at the Effective Time pursuant to the Merger) which remains in issue on a record date referred to in paragraph (b) of this article 128 equal to the amount of the liability that the holder of such Ordinary Share would have been entitled to be paid on such record date in accordance with paragraph (b) of this article 128 had such Ordinary Share been issued at the Effective Time pursuant to the Merger, and any such dividend or payment shall not create any liability to make an equivalent payment to any holder of Ordinary Shares issued at the Effective Time pursuant to the Merger. For the avoidance of doubt, nothing in this paragraph (c) shall limit or restrict the ability of the Directors or the Company to declare or pay dividends or interim dividends pursuant to articles 118 to 127 from time to time, including (without limitation) on all of the Ordinary Shares from time to time.
|
129.
|
(a) The Company shall cause to be kept accounting records, whether in the form of documents, electronic form or otherwise, that:
|
(i)
|
correctly record and explain the transactions of the Company;
|
(ii)
|
will at any time enable the financial position of the Company to be determined with reasonable accuracy;
|
(iii)
|
will enable the Directors to ensure that any balance sheet, profit and loss account or income and expenditure account of the Company complies with the requirements of the Acts; and
|
(iv)
|
will enable the accounts of the Company to be readily and properly audited.
|
(b)
|
The books of account shall be kept at the Office or, subject to the provisions of the Acts, at such other place as the Directors think fit and shall be open at all reasonable times to the inspection of the Directors.
|
(c)
|
In accordance with the provisions of the Acts, the Directors shall cause to be prepared and to be laid before the annual general meeting of the Company from time to time such profit and loss accounts, balance sheets, group accounts and reports as are required by the Acts to be prepared and laid before such meeting.
|
(d)
|
A copy of every balance sheet (including every document required by law to be annexed thereto) which is to be laid before the annual general meeting of the Company together with a copy of the Directors’ report and Auditors’ report shall be sent by post, electronic mail or any other means of communication (electronic or otherwise), not less than twenty-one Clear Days before the date of the annual general meeting, to every person entitled under the provisions of the Acts to receive them; provided that in the case of those documents sent by electronic mail or any other means of electronic communication, such documents shall be sent with the consent of the recipient, to the address of the recipient notified to the Company by the recipient for such purposes.
|
130.
|
The Directors shall determine from time to time whether and to what extent and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to the inspection of members, not being Directors, and no member (not being a Director) shall have any right of inspecting any account or book or document of the Company except as conferred by the Acts or authorised by the Directors or by the Company in general meeting. No member shall be entitled to require discovery of or any information respecting any detail of the Company’s trading, or any matter which is or may be in the nature of a trade secret, mystery of trade, or secret process which may relate to the conduct of the business of the Company and which in the opinion of the Directors it would be inexpedient in the interests of the members of the Company to communicate to the public.
|
131.
|
Without prejudice to any powers conferred on the Directors as aforesaid and subject to the Directors’ authority to issue and allot shares under articles 8(c) and 8(d), the Directors may resolve to capitalise any part of the amount for the time being standing to the credit of any of the Company’s reserve accounts (including any capital redemption reserve fund, share premium account or other reserve account not available for distribution) or to the credit of the profit and loss account which is not available for distribution by applying such sum in paying up in full unissued shares to be allotted as fully paid bonus shares to those members of the Company who would have been entitled to that sum if it were distributable and had been distributed by way of dividend (and in the same proportions). Whenever such a resolution is passed in pursuance of this article, the Directors shall make all appropriations and applications of the amounts resolved to be capitalised thereby and all allotments and issues of fully paid shares or debentures, if any. Any such capitalisation will not require approval or ratification by the members of the Company. The terms of any optional provisions of the Act or any replacement enactment covering substantially the same subject matter as this article 131 are disapplied.
|
132.
|
Without prejudice to any powers conferred on the Directors by these articles, and subject to the Directors’ authority to issue and allot shares under articles 8(c) and 8(d), the Directors may resolve that any sum for the time being standing to the credit of any of the Company’s reserve accounts (including any reserve account available for distribution) or to the credit of the profit and loss account be capitalised and applied on behalf of the members who would have been entitled to receive that sum if it had been distributed by way of dividend (and in the same proportions) either in or towards paying up amounts for the time being unpaid on any shares held by them respectively, or in paying up in full unissued shares or debentures of the Company of a nominal amount equal to the sum capitalised (such shares or debentures to be allotted and distributed and credited as fully paid up to and amongst such Holders in the proportions aforesaid) or partly in one way and partly in another, so, however, that the only purposes for which sums standing to the credit of the capital redemption reserve fund or the share premium account shall be applied shall be those permitted by the Acts.
|
133.
|
The Directors may from time to time at their discretion, subject to the provisions of the Acts and, in particular, to their being duly authorised pursuant to the Acts, to allot the relevant shares, offer to the Holders of Ordinary Shares the right to elect to receive in lieu of any dividend or proposed dividend or part thereof an allotment of additional Ordinary Shares credited as fully paid. In any such case the following provisions shall apply.
|
(i)
|
The basis of allotment shall be determined by the Directors so that, as nearly as may be considered convenient in the Directors’ absolute discretion, the value (calculated by reference to the average quotation) of the additional Ordinary Shares (excluding any fractional entitlement) to be allotted in lieu of any amount of dividend shall equal such amount. For such purpose the “average quotation” of an Ordinary Share shall be the average of the five amounts resulting from determining whichever of the following ((A), (B) or (C) specified below) in respect of Ordinary Shares shall be appropriate for each of the first five business days on which Ordinary Shares are quoted “ex” the relevant dividend and as determined from the information published by the New York Stock Exchange reporting the business done on each of these five business days:
|
(A)
|
if there shall be more than one dealing reported for the day, the average of the prices at which such dealings took place; or
|
(B)
|
if there shall be only one dealing reported for the day, the price at which such dealing took place; or
|
(C)
|
if there shall not be any dealing reported for the day, the average of the closing bid and offer prices for the day;
|
(ii)
|
The Directors shall give notice in writing (whether in electronic form or otherwise) to the Holders of Ordinary Shares of the right of election offered to them and shall send with or following such notice forms of election and specify the procedure to be followed and the place at which, and the latest date and time by which, duly completed forms of election must be lodged in order to be effective. The Directors may also issue forms under which Holders may elect in advance to receive new Ordinary Shares instead of dividends in respect of future dividends not yet declared (and, therefore, in respect of which the basis of allotment shall not yet have been determined).
|
(iii)
|
The dividend (or that part of the dividend in respect of which a right of election has been offered) shall not be payable on Ordinary Shares in respect of which the right of election as aforesaid has been duly exercised (the “Subject Ordinary Shares”) and in lieu thereof additional Ordinary Shares (but not any fraction of a share) shall be allotted to the Holders of the Subject Ordinary Shares on the basis of allotment determined aforesaid and for such purpose the Directors shall capitalise, out of such of the sums standing to the credit of any of the Company’s reserves (including any capital redemption reserve fund or share premium account) or to the credit of the profit and loss account as the Directors may determine, a sum equal to the aggregate nominal amount of additional Ordinary Shares to be allotted on such basis and apply the same in paying up in full the appropriate number of unissued Ordinary Shares for allotment and distribution to and amongst the holders of the Subject Ordinary Shares on such basis.
|
134.
|
(a) The additional Ordinary Shares allotted pursuant to articles 131, 132 or 133 shall rank pari passu in all respects with the fully paid Ordinary Shares then in issue save only as regards participation in the relevant dividend or share election in lieu.
|
(b)
|
The Directors may do all acts and things considered necessary or expedient to give effect to any capitalisation pursuant to articles 131, 132 or 133 with full power to the Directors to make such provisions as they think fit where shares would otherwise have been distributable in fractions (including provisions whereby, in whole or in part, fractional entitlements are disregarded and the benefit of fractional entitlements accrues to the Company rather than to the holders concerned). The Directors may authorise any person to enter on behalf of all the Holders interested into an agreement with the Company providing for such capitalisation and matters incidental thereto and any agreement made under such authority shall be effective and binding on all concerned.
|
(c)
|
The Directors may on any occasion determine that rights of election shall not be offered to any Holders of Ordinary Shares who are citizens or residents of any territory where the making or publication of an offer of rights of election or any exercise of rights of election or any purported acceptance of the same would or might be unlawful, and in such event the provisions aforesaid shall be read and construed subject to such determination.
|
135.
|
Statutory auditors shall be appointed and their duties regulated in accordance with the Acts.
|
136.
|
Any notice to be given, served, sent or delivered pursuant to these articles shall be in writing (whether in electronic form or otherwise).
|
137.
|
(a) A notice or document to be given, served, sent or delivered in pursuance of these articles may be given to, served on or delivered to any member by the Company;
|
(iv)
|
by sending the same to the member by electronic means, to the maximum extent permitted by any optional provisions of the Acts notwithstanding article 1, to the address of the member notified to the Company by the member for such purpose (or if not so notified, then to the address of the member last known to the Company); or
|
(v)
|
by sending, with the consent of the member, the same by means of electronic mail or other means of electronic communication approved by the Directors, with the consent of the member, to the address of the member notified to the Company by the member for such purpose (or if not so notified, then to the address of the member last known to the Company).
|
(b)
|
For the purposes of these articles and the Act, a document shall be deemed to have been sent to a member if a notice is given, served, sent or delivered to the member and the notice specifies the website or hotlink or other electronic link at or through which the member may obtain a copy of the relevant document.
|
(c)
|
Where a notice or document is given, served or delivered pursuant to sub-paragraph (a)(i) or (ii) of this article, the giving, service or delivery thereof shall be deemed to have been effected at the time the same was handed to the member or his authorised agent, or left at his registered address (as the case may be).
|
(d)
|
Where a notice or document is given, served or delivered pursuant to sub-paragraph (a)(iii) of this article, the giving, service or delivery thereof shall be deemed to have been effected at the expiration of twenty-four hours after the cover containing it was posted. In proving service or delivery it shall be sufficient to prove that such cover was properly addressed, stamped and posted.
|
(e)
|
Where a notice or document is given, served or delivered pursuant to sub-paragraph (a)(iv) or (a)(v)of this article, the giving, service or delivery thereof shall be deemed to have been effected at the expiration of 48 hours after despatch.
|
(f)
|
Every legal personal representative, committee, receiver, curator bonis or other legal curator, assignee in bankruptcy, examiner or liquidator of a member shall be bound by a notice given as aforesaid if sent to the last registered address of such member, or, in the event of notice given or delivered pursuant to sub-paragraph (a)(iv) or (a)(v), if sent to the address notified by the Company by the member for such purpose notwithstanding that the Company may have notice of the death, lunacy, bankruptcy, liquidation or disability of such member.
|
(g)
|
Notwithstanding anything contained in this article the Company shall not be obliged to take account of or make any investigations as to the existence of any suspension or curtailment of postal services within or in relation to all or any part of any jurisdiction or other area other than Ireland.
|
(h)
|
Any requirement in these articles for the consent of a member in regard to the receipt by such member of electronic mail or other means of electronic communications approved by the Directors, including the receipt of the Company’s audited accounts and the directors’ and auditor’s reports thereon, shall be deemed to have been satisfied where the Company has written to the member informing him/her of its intention to use electronic communications for such purposes and the member has not, within four weeks of the issue of such notice, served an objection in writing on the Company to such proposal. Where a member has given, or is deemed to have given, his/her consent to the receipt by such member of electronic mail or other means of electronic communications approved by the Directors, he/she may revoke such consent at any time by requesting the Company to communicate with him/her in documented form; provided, however, that such revocation shall not take effect until five days after written notice of the revocation is received by the Company.
|
(i)
|
Without prejudice to the provisions of sub-paragraphs (a)(i) and (a)(ii) of this article, if at any time by reason of the suspension or curtailment of postal services in any territory, the Company is unable effectively to convene a general meeting by notices sent through the post, a general meeting may be convened by a public announcement and such notice shall be deemed to have been duly served on all members entitled thereto at noon on the day on which the said public announcement is made. In any such case the Company shall put a full copy of the notice of the general meeting on its website.
|
138.
|
A notice may be given by the Company to the joint Holders of a share by giving the notice to the joint Holder whose name stands first in the Register in respect of the share and notice so given shall be sufficient notice to all the joint Holders.
|
139.
|
(a) Every person who becomes entitled to a share shall before his name is entered in the Register in respect of the share, be bound by any notice in respect of that share which has been duly given to a person from whom he derives his title.
|
(b)
|
A notice may be given by the Company to the persons entitled to a share in consequence of the death or bankruptcy of a member by sending or delivering it, in any manner authorised by these articles for the giving of notice to a member, addressed to them at the address, if any, supplied by them for that purpose. Until such an address has been supplied, a notice may be given in any manner in which it might have been given if the death or bankruptcy had not occurred.
|
140.
|
The signature (whether electronic signature, an advanced electronic signature or otherwise) to any notice to be given by the Company may be written (in electronic form or otherwise) or printed.
|
141.
|
A member present, either in person or by proxy, at any meeting of the Company or the Holders of any class of shares in the Company shall be deemed to have received notice of the meeting and, where requisite, of the purposes for which it was called.
|
142.
|
If the Company shall be wound up and the assets available for distribution among the members as such shall be insufficient to repay the whole of the paid up or credited as paid up share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the members in proportion to the capital paid up or credited as paid up at the commencement of the winding up on the shares held by them respectively. And if in a winding up the assets available for distribution among the members shall be more than sufficient to repay the whole of the share capital paid up or credited as paid up at the commencement of the winding up, the excess shall be distributed among the members in proportion to
|
143.
|
(a) In case of a sale by the liquidator under section 260 of the Act, the liquidator may by the contract of sale agree so as to bind all the members for the allotment to the members directly of the proceeds of sale in proportion to their respective interests in the Company and may further by the contract limit a time at the expiration of which obligations or shares not accepted or required to be sold shall be deemed to have been irrevocably refused and be at the disposal of the Company, but so that nothing herein contained shall be taken to diminish, prejudice or affect the rights of dissenting members conferred by the said section.
|
(b)
|
The power of sale of the liquidator shall include a power to sell wholly or partially for debentures, debenture stock, or other obligations of another company, either then already constituted or about to be constituted for the purpose of carrying out the sale.
|
144.
|
If the Company is wound up, the liquidator, with the sanction of a Special Resolution and any other sanction required by the Acts, may divide among the members in specie or kind the whole or any part of the assets of the Company (whether they shall consist of property of the same kind or not), and, for such purpose, may value any assets and determine how the division shall be carried out as between the members or different classes of members. The liquidator, with the like sanction, may vest the whole or any part of such assets in trustees upon such trusts for the benefit of the contributories as, with the like sanction, he determines, but so that no member shall be compelled to accept any assets upon which there is a liability.
|
145.
|
(a) Subject to the provisions of and so far as may be admitted by the Acts, every Director and the Secretary of the Company shall be entitled to be indemnified by the Company against all costs, charges, losses, expenses and liabilities incurred by him in the execution and discharge of his duties or in relation thereto including any liability incurred by him in defending any proceedings, civil or criminal, which relate to anything done or omitted or alleged to have been done or omitted by him as an officer or employee of the Company and in which judgement is given in his favour (or the proceedings are otherwise disposed of without any finding or admission of any material breach of duty on his part) or in which he is acquitted or in connection with any application under any statute for relief from liability in respect of any such act or omission in which relief is granted to him by the Court.
|
(b)
|
The Directors shall have power to purchase and maintain for any Director, the Secretary or any employees of the Company or its subsidiaries insurance against any such liability as referred to in the Acts.
|
(c)
|
As far as is permissible under the Acts, the Company shall indemnify any current or former executive officer of the Company (excluding any present or former Directors of the Company or Secretary of the Company), or any person who is serving or has served at the request of the Company as a director or executive officer of another company, joint venture, trust or other enterprise, including any Company subsidiary (each individually, a “Covered Person”), against any expenses, including attorney’s fees, judgements, fines, and amounts paid in settlement actually and reasonably incurred by him or her in connection with any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, to which he or she was or is threatened to be made a party, or is otherwise involved (a “proceeding”), by reason of the fact that he or she is or was a Covered Person; provided, however, that this provision shall not indemnify any Covered Person against any liability arising out of (a) any fraud or dishonesty in the performance of such Covered Person’s duty to the Company, or (b) such Covered Party’s conscious, intentional or wilful breach of the obligation to act honestly and in good faith with a view to the best interests of the Company. Notwithstanding the preceding sentence, this section shall not extend to any matter which would render it void pursuant to the Acts or to any person holding the office of auditor in relation to the Company.
|
(d)
|
In the case of any threatened, pending or completed action, suit or proceeding by or in the name of the Company, the Company shall indemnify each Covered Person against expenses, including attorneys’ fees, actually and reasonably incurred in connection with the defence or the settlement thereof, except no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for fraud or dishonesty in the performance of his or her duty to the Company, or for conscious, intentional or wilful breach of his or her obligation to act honestly and in good faith with a view to the best interests of the Company, unless and only to the extent that the High Court of Ireland or the court in which such action or suit was brought shall determine upon application that despite the adjudication of liability, but in view of all the circumstances of the case, such Covered Person is fairly and reasonably entitled to indemnity for such expenses as the court shall deem proper. Notwithstanding the preceding sentence, this section shall not extend to any matter which would render it void pursuant to the Acts or to any person holding the office of auditor in relation to the Company.
|
(e)
|
Any indemnification under this article (unless ordered by a court) shall be made by the Company only as authorised in the specific case upon a determination that indemnification of the Covered Person is proper in the circumstances because such person has met the applicable standard of conduct set forth in this article. Such determination shall be made by any person or persons having the authority to act on the matter on behalf of the Company. To the extent, however, that any Covered Person has been successful on the merits or otherwise in defence of any proceeding, or in defence of any claim, issue or matter therein, such Covered Person shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection therewith, without necessity of authorisation in the specific case.
|
(f)
|
As far as permissible under the Acts, expenses, including attorneys’ fees, incurred in defending any proceeding for which indemnification is permitted pursuant to this article shall be paid by the Company in advance of the final disposition of such proceeding upon receipt by the Board of an undertaking by the particular indemnitee to repay such amount if it shall ultimately be determined that he or she is not entitled to be indemnified by the Company pursuant to these articles.
|
(g)
|
It being the policy of the Company that indemnification of the persons specified in this article shall be made to the fullest extent permitted by law, the indemnification provided by this article shall not be deemed exclusive (a) of any other rights to which those seeking indemnification or advancement of expenses may be entitled under these articles, any agreement, any insurance purchased by the Company, vote of members or disinterested directors, or pursuant to the direction (however embodied) of any court of competent jurisdiction, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office, or (b) of the power of the Company to indemnify any person who is or was an employee or agent of the Company or of another company, joint venture, trust or other enterprise which he or she is serving or has served at the request of the Company, to the same extent and in the same situations and subject to the same determinations as are hereinabove set forth. As used in this article, references to the “Company” include all constituent companies in a scheme of arrangement, consolidation or merger in which the Company or a predecessor to the Company by scheme of arrangement, consolidation or merger was involved. The indemnification provided by this article shall continue as to a person who has ceased to be a Covered Person and shall inure to the benefit of their heirs, executors, and administrators.
|
146.
|
(a) The Company shall be entitled to sell at the best price reasonably obtainable any share or stock of a member or any share or stock to which a person is entitled by transmission if and provided that:
|
(i)
|
for a period of twelve years (not less than three dividends having been declared and paid) no cheque or warrant sent by the Company through the post in a prepaid letter addressed to the member or to the person entitled by transmission to the share or stock at his address on the Register or other last known address given by the member or the person entitled by transmission to which cheques and warrants are to be sent has been cashed and no communication has been received by the Company from the member or the person entitled by transmission; and
|
(ii)
|
at the expiration of the said period of twelve years the Company has given notice by advertisement in a leading Dublin newspaper and a newspaper circulating in the area in which the address referred to in paragraph (a) of this article is located of its intention to sell such share or stock; and
|
(iii)
|
the Company has not during the further period of three months after the date of the advertisement and prior to the exercise of the power of sale received any communication from the member or person entitled by transmission.
|
(b)
|
To give effect to any such sale the Company may appoint any person to execute as transferor an instrument of transfer of such share or stock and such instrument of transfer shall be as effective as if it had been executed by the registered Holder of or person entitled by transmission to such share or stock. The Company shall account to the member or other person entitled to such share or stock for the net proceeds of such sale by carrying all monies in respect thereof to a separate account which shall be a permanent debt of the Company and the Company shall be deemed to be a debtor and not a trustee in respect thereof for such member or other person. Monies carried to such separate account may either be employed in the business of the Company or invested in such investments (other than shares of the Company or its holding company if any) as the Directors may from time to time think fit.
|
(c)
|
To the extent necessary in order to comply with any laws or regulations to which the Company is subject in relation to escheatment, abandonment of property or other similar or analogous laws or regulations (“Applicable Escheatment Laws”), the Company may deal with any share of any member and any unclaimed cash payments relating to such share in any manner which it sees fit, including (but not limited to) transferring or selling such share and transferring to third parties any unclaimed cash payments relating to such share.
|
(d)
|
The Company may only exercise the powers granted to it in sub-paragraph (a) above in circumstances where it has complied with, or procured compliance with, the required procedures (as set out in the Applicable Escheatment Laws) with respect to attempting to identify and locate the relevant member of the Company.
|
(e)
|
Any stock transfer form to be executed by the Company in order to sell or transfer a share pursuant to sub-paragraph (a) may be executed in accordance with article 16(a).
|
147.
|
The Company may implement such document destruction policies as it so chooses in relation to any type of documents (whether in paper, electronic or other formats), and in particular (without limitation to the foregoing) may destroy:
|
(a)
|
any dividend mandate or any variation or cancellation thereof or any notification of change of name or address, at any time after the expiry of two years from the date such mandate variation, cancellation or notification was recorded by the Company;
|
(b)
|
any instrument of transfer of shares which has been registered, at any time after the expiry of six years from the date of registration; and
|
(c)
|
any other document on the basis of which any entry in the Register was made, at any time after the expiry of six years from the date an entry in the Register was first made in respect of it,
|
(i)
|
the foregoing provisions of this article shall apply only to the destruction of a document in good faith and without express notice to the Company that the preservation of such document was relevant to a claim;
|
(ii)
|
nothing contained in this article shall be construed as imposing upon the Company any liability in respect of the destruction of any such document earlier than as aforesaid or in any case where the conditions of proviso (a) above are not fulfilled; and
|
(iii)
|
references in this article to the destruction of any document include references to its disposal in any manner.
|
148.
|
The Directors are hereby expressly authorised to sell, lease or exchange all or substantially all of the Company’s property and assets, including the Company’s goodwill and its corporate franchises, upon such terms and conditions and for such consideration, which may consist in whole or in part of money or other property, including shares of stock in, and/or other securities of, any other company or companies, as the Directors deem expedient and for the best interests of the Company subject to authorisation by an Ordinary Resolution of members and any additional vote required by article 149. Notwithstanding authorisation or consent to a proposed sale, lease or exchange of the Company’s property and assets by the members, the Board may abandon such sale, lease or exchange without further action of the members, subject to the rights, if any, of third parties under any contract relating thereto. Notwithstanding the foregoing, no resolution adopted by the members shall be required for a sale, lease or exchange of property and assets of the Company to a subsidiary. For the purposes of this article 148:
|
(a)
|
the property and assets of the Company include the property and assets of any subsidiary of the Company; and
|
(b)
|
“subsidiary” means any entity wholly owned and controlled, directly or indirectly, by the Company and includes, without limitation, companies, partnerships, limited partnerships, limited liability partnerships, limited liability companies, and/or statutory trusts.
|
149.
|
(a) Notwithstanding anything to the contrary contained in these articles, the Company shall not engage in any business combination with any Interested Member for a period of three years following the time that such member became an Interested Member, unless:
|
(i)
|
prior to such time the Directors approved either the business combination or the transaction which resulted in the member becoming an Interested Member;
|
(ii)
|
upon consummation of the transaction which resulted in the member becoming an Interested Member, the Interested Member owned at least 85% of the voting shares of the Company outstanding at the time the transaction commenced, excluding for purposes of determining the voting shares outstanding (but not the outstanding voting shares owned by the Interested Member) those shares owned (A) by persons who are directors and also officers and (B) employee shares plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
|
(iii)
|
at or subsequent to such time the business combination is approved by the Directors and authorised by way of Special Resolution without the Interested Member.
|
(b)
|
The Directors shall have the power and duty to determine, on the basis of information known to them after reasonable inquiry, all facts necessary to determine compliance with this article, including, without limitation, (i) whether a Person is an Interested Member, (ii) the number of shares or other securities beneficially owned
|
(c)
|
As used in this article only, the term:
|
(i)
|
“Affiliate” means a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, another person.
|
(ii)
|
“Associate”, when used to indicate a relationship with any person, means: (A) any company, partnership, unincorporated association or other entity of which such person is a director, officer or partner or is, directly or indirectly, the owner of 20% or more of any class of voting shares; (B) any trust or other estate in which such person has at least a 20% beneficial interest or as to which such person serves as trustee or in a similar fiduciary capacity; and (C) any relative or spouse of such person, or any relative of such spouse, who has the same residence as such person.
|
(iii)
|
“Business combination”, when used in reference to any company and any Interested Member of such company, means:
|
(A)
|
any scheme of arrangement, merger or consolidation of the Company or any direct or indirect majority-owned subsidiary of the Company with (1) the Interested Member, or (2) any other company, partnership, unincorporated association or other entity if the scheme of arrangement, merger or consolidation is caused by the Interested Member;
|
(B)
|
any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), except proportionately as a member of such company, to or with the Interested Member, whether as part of a dissolution or otherwise, of assets of the Company or of any direct or indirect majority-owned subsidiary of the Company which assets have an aggregate market value equal to 10% or more of either the aggregate market value of all the assets of the Company determined on a consolidated basis or the aggregate market value of all the outstanding shares of the Company;
|
(C)
|
any transaction which results in the issuance or transfer by the Company or by any direct or indirect majority-owned subsidiary of the Company of any shares of the Company or of such subsidiary to the Interested Member, except: (1) pursuant to the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into shares of such company or any such subsidiary which securities were outstanding prior to the time that the Interested Member became such; (2) pursuant to a dividend or distribution paid or made, or the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into shares of such company or any such subsidiary which security is distributed, pro rata to all holders of a class or series of shares of such company subsequent to the time the Interested Member became such; (3) pursuant to an exchange offer by the Company to purchase shares made on the same terms to all holders of said shares; or (4) any issuance or transfer of shares by the Company; provided however, that in no case under items (3) and (4) of this subparagraph shall there be an increase in the Interested Member’s proportionate share of the shares of any class or series of the Company or of the voting shares of the Company;
|
(D)
|
any transaction involving the Company or any direct or indirect majority-owned subsidiary of the Company which has the effect, directly or indirectly, of increasing the proportionate share of the shares of any class or series, or securities convertible into the shares of any class or series, of the Company or of any such subsidiary which is owned by the Interested Member, except as a result of immaterial changes due to fractional share adjustments or as a result of any purchase or redemption of any shares of shares not caused, directly or indirectly, by the Interested Member; or
|
(E)
|
any receipt by the Interested Member of the benefit, directly or indirectly (except proportionately as a member of such company), of any loans, advances, guarantees, pledges or other financial benefits (other than those expressly permitted in subparagraphs (A)-(D) of this paragraph) provided by or through the Company or any direct or indirect majority-owned subsidiary.
|
(iv)
|
“Control”, including the terms “controlling”, “controlled by” and “under common control with”, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract or otherwise. A person who is the owner of 20% or more of the outstanding voting shares of any company, partnership, unincorporated association or other entity shall be presumed to have control of such entity, in the absence of proof by a preponderance of the evidence to the contrary. Notwithstanding the foregoing, a presumption of control shall not apply where such person holds voting shares, in good faith and not for the purpose of circumventing this article, as an agent, bank, broker, nominee, custodian or trustee for one or more owners who do not individually or as a group have control of such entity.
|
(v)
|
“Interested Member” means any Person, including its Affiliates and Associates (other than the Company and any direct or indirect majority-owned subsidiary of the Company), that is, or was at any time within the three-year period immediately prior to the date in question, the Owner of 15% or more of the outstanding voting shares of the Company; provided, however, that the term “Interested Member” shall not include any person whose ownership of shares in excess of the 15% limitation set forth herein is the result of action taken solely by the Company; provided that such person shall be an Interested Member if thereafter such person acquires additional voting shares of the Company, except as a result of further corporate action not caused, directly or indirectly, by such person. For the purpose of determining whether a person is an Interested Member, the voting shares of the Company deemed to be outstanding shall include shares deemed to be owned by the person through application of (viii) of this subsection but shall not include any other unissued shares of such company which may be issuable pursuant to any agreement, arrangement or understanding, or upon exercise of conversion rights, warrants or options, or otherwise.
|
(vi)
|
“Person” means any individual, company, partnership, unincorporated association or other entity.
|
(vii)
|
“Shares” means, with respect to any company, capital shares and, with respect to any other entity, any equity interest.
|
(viii)
|
“Voting shares” means, with respect to any company, shares of any class or series entitled to vote generally in the election of directors and, with respect to any entity that is not a company, any equity interest entitled to vote generally in the election of the governing body of such entity. Every reference to a percentage of voting shares shall refer to such percentage of the votes of such voting shares.
|
(ix)
|
“Owner”, including the terms “own” and “owned”, when used with respect to any Shares, means a person that individually or with or through any of its Affiliates or Associates:
|
(A)
|
beneficially owns such Shares, directly or indirectly; or
|
(B)
|
has (1) the right to acquire such Shares (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise; provided, however, that a person shall not be deemed the Owner of Shares tendered pursuant to a tender or exchange offer made by such person or any of such person’s affiliates or associates until such tendered Shares are accepted for purchase or exchange; or (2) the right to vote such shares pursuant to any agreement, arrangement or understanding; provided, however, that a person shall not be deemed the Owner of any Shares because of such person’s right to vote such Shares if the agreement, arrangement or understanding to vote such shares arises solely from a revocable proxy or consent given in response to a proxy or consent solicitation made to 10 or more persons; or
|
(C)
|
has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except voting pursuant to a revocable proxy or consent as described in item (2) of subparagraph (B) of this paragraph), or disposing of such Shares with any other person that beneficially owns, or whose Affiliates or Associates beneficially own, directly or indirectly, such Shares.
|
Citibank, N.A.
|
$78,750,000
|
Wells Fargo Bank, National Association
|
$102,500,000
|
Bank of America, N.A.
|
$78,125,000
|
Barclays Bank PLC
|
$78,125,000
|
JPMorgan Chase Bank, N.A.
|
$78,125,000
|
Banco Bilbao Vizcaya Argentaria, S.A. New York Branch
|
$53,125,000
|
Commerzbank AG New York Branch
|
$53,125,000
|
Credit Agricole Corporate and Investment Bank
|
$53,125,000
|
Danske Bank A/S
|
$53,125,000
|
Goldman Sachs Bank USA
|
$53,125,000
|
ING Bank N.V., Dublin Branch
|
$53,125,000
|
The Bank of New York Mellon
|
$53,125,000
|
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
|
$53,125,000
|
Toronto Dominion (Texas) LLC
|
$53,125,000
|
U.S. Bank National Association
|
$53,125,000
|
UniCredit Bank AG, New York Branch
|
$53,125,000
|
Intesa Sanpaolo Bank Luxembourg SA
|
$42,500,000
|
Industrial and Commercial Bank of China Limited, New York Branch
|
$35,000,000
|
BNP Paribas
|
$30,000,000
|
Deutsche Bank AG New York Branch
|
$28,125,000
|
Standard Chartered Bank
|
$28,125,000
|
The Bank of Nova Scotia
|
$28,125,000
|
Westpac Banking Corporation
|
$28,125,000
|
The Northern Trust Company
|
$22,500,000
|
First Hawaiian Bank
|
$7,500,000
|
TOTAL
|
$1,250,000,000
|
•
|
the identity and the contact details of the controller (usually the administrator and/or the Company) and, where applicable, of the controller's representative;
|
•
|
the contact details of the data protection officer, where applicable;
|
•
|
that the purposes of the processing of personal data is for the grant, administration and vesting of the Award and the legal basis for the processing is that this is required for the performance of this Award Agreement and for compliance with its terms and the Award or to cover the legitimate interests of the data controller and the data processor;
|
•
|
the recipients or categories of recipients of the personal data, if any;
|
•
|
the controller intends to transfer personal data to a third country or international organization subject to the existence of an adequacy decision by the Commission, or reference to the appropriate or suitable safeguards (reliance on the US/EU Privacy Shield or adoption of the EU Model Clauses) and you may obtain a copy of these or details of where they are made available on the administrator’s portal;
|
•
|
the period for which the personal data will be stored, or if that is not possible, the criteria used to determine that period;
|
•
|
the right to request from the controller access to and rectification or erasure, in certain circumstances but this could impact the Award, of personal data or restriction of processing concerning the data subject or to object to processing as well as the right to data portability;
|
•
|
the right to lodge a complaint with a supervisory authority;
|
•
|
the provision of personal data is a requirement for the performance of this Award Agreement and the terms of the Award.
|
|
JOHNSON CONTROLS INTERNATIONAL PLC
|
|
|
|
/s/ John Donofrio
|
|
John Donofrio
|
|
Executive Vice President and General Counsel
|
|
|
(1)
|
Annual Incentive Awards
: All or a portion of a Participant’s performance cash award made under a plan of the Company, or with the consent of the Administrator, any other annual bonus plan maintained by an Affiliate. For 2016, the term “Annual Incentive Awards” also includes cash awards payable under a plan of Johnson Controls, Inc., to the extent the deferral election with respect to such amounts are effective under Code Section 409A.
|
(2)
|
Long-Term Incentive Awards
: All or a portion of a Participant’s multi-year performance cash award under a plan of the Company, or, with the consent of the Administrator, any other long-term bonus plan maintained by an Affiliate. For 2016, the term “Long-Term Incentive Awards” also includes the cash award payable under a plan of Johnson Controls, Inc., to the extent
|
(3)
|
Shares
: The Shares that would have otherwise been issued to a Participant under any equity award (other than share options or share appreciation rights) granted under any plan of the Company (including granted under any plan of Johnson Controls, Inc. prior to the Amended and Restated Effective Date), but only to the extent the Committee (with respect to those Participants who are Company officers), or the Administrator (with respect to all other Participants), designates such equity award as being eligible for deferral hereunder.
|
(4)
|
Other Incentive Compensation
: Any other incentive award or compensation that the Committee (with respect to those Participants who are Company officers), or the Administrator (with respect to all other Participants), designates is eligible for deferral hereunder.
|
(1)
|
Annual Incentive Deferrals
: A deferral of all or a portion of a Participant’s Annual Incentive Award, as described in subsection (l)(1).
|
(2)
|
Long-Term Incentive Deferrals
: A deferral of all or a portion of a Participant’s Long-Term Incentive Award, as described in subsection (l)(2).
|
(3)
|
Share Deferrals
: A deferral of Shares , as described in subsection (l)(3).
|
(4)
|
Other Incentive Compensation
: A deferral of any other type of Deferrable Compensation, as described in subsection (l)(4).
|
(1)
|
If a Participant takes a leave of absence from the Company or an Affiliate for purposes of military leave, sick leave or other bona fide leave of absence, the Participant’s employment will be deemed to continue for the first six (6) months of the leave of absence, or if longer, for so long as the Participant’s right to reemployment is provided by either by statute or by contract;
provided
that if the leave of absence is due to the Participant’s medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of six (6) months or more, and such impairment causes the Participant to be unable to perform the duties of his position with the Company or an Affiliate or a substantially similar position of employment, then the leave period may be extended for up to a total of twenty-nine (29) months. If the period of the leave exceeds the time periods set forth above and the Participant’s right to reemployment is not provided by either statute or contract, the Participant will be considered to have incurred a Separation from Service on the first day following the time periods set forth above.
|
(2)
|
A Participant will be presumed to have incurred a Separation from Service when the level of bona fide services performed by the Participant for the Company and its Affiliates permanently decreases to a level equal to twenty percent (20%) or less of the average level of services performed by the Participant for the Company or its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service).
|
(3)
|
The Participant will be presumed not to have incurred a Separation from Service while the Participant continues to provide bona fide services to the Company or an Affiliate in any capacity (whether as an employee or independent contractor) at a level that is at least fifty percent (50%) or more of the average level of services performed by the Participant for the Company or its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service).
|
(4)
|
If a Participant ceases to provide services as an employee to the Company or an Affiliate, but immediately thereafter continues to provide services as an independent contractor to any such entity without incurring a Separation from Service as described in the subparagraphs above, then such Participant will not incur a Separation from Service until the expiration of the contract (or, if applicable, all contracts) under which services are performed for the Company and any Affiliate if the expiration is a good-faith and complete termination of the contractual relationship.
|
(1)
|
if the Company determines that an award qualifies as performance-based compensation within the meaning of Code Section 409A, the Company may specify a later election period, which in all events must end 180 days prior to the end of the performance period for such award;
provided
that any election made hereunder shall not be applicable to compensation that is readily ascertainable at the time of the election, or
|
(2)
|
if the Company determines that an award does not qualify as performance-based compensation within the meaning of Code Section 409A, or determines that, at the time of the election described above, the compensation payable under such award will be readily ascertainable, then the Company may specify an earlier election period consistent with the requirements of Code Section 409A.
|
(1)
|
If an amount deferred under this Plan is required to be included in a Participant’s income under Code Section 409A prior to the date such amount is actually distributed, such Participant shall receive a distribution, in a lump sum within ninety (90) days after the Plan fails to meet the requirements of Code Section 409A, of the amount required to be included in the Participant’s income as a result of such failure.
|
(2)
|
If an amount under the Plan is required to be immediately distributed in a lump sum under a domestic relations order within the meaning of Code Section 414(p)(1)(B), it may be distributed according to the terms of such order, provided the Participant holds the Administrator harmless with respect to such distribution. The Plan shall not distribute amounts required to be distributed under a domestic relations order other than in the limited circumstance specifically stated herein.
|
(1)
|
If a distribution required under the terms of this Plan would jeopardize the ability of the Company or an Affiliate to continue as a going concern, the Company or the Affiliate shall not be required to make such distribution. Rather, the distribution shall be delayed until the first date that making the distribution does not jeopardize the ability of the Company or of an Affiliate to continue as a going concern. Any distribution delayed under this provision shall be treated as made on the date specified under the terms of this Plan.
|
(2)
|
If the distribution will violate the terms of Section 16(b) of the Exchange Act or other Federal securities laws, or any other applicable law, then the distribution shall be delayed until the earliest date on which making the distribution will not violate such law.
|
(1)
|
The Plan is terminated pursuant to irrevocable action taken by the Committee within the thirty (30) days preceding or the twelve (12) months following a change in control event (as defined in Code Section 409A),
provided
that all other plans required to be aggregated with this Plan under Code Section 409A are also terminated and liquidated with respect to each participant that experienced the change in control event. In such event, the single sum payment must be distributed within twelve (12) months after such irrevocable action is taken.
|
(2)
|
The Plan is terminated within twelve (12) months of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A). In such event, the single sum payment must be distributed by the latest of: (A) the last day of the calendar year in which the Plan termination occurs, (B) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture, or (C) the first calendar year in which payment is administratively practicable.
|
(3)
|
The Plan is terminated at any other time,
provided
that such termination does not occur proximate to a downturn in the financial health of the Company or an Affiliate, and all other plans required to be aggregated with this Plan under Code Section 409A are also terminated and liquidated. In such event, the single sum payment shall be paid no earlier than twelve (12) months (and no later than twenty-four (24) months) after the date of the Plan’s termination. Notwithstanding the foregoing, any payment that would otherwise be paid during the twelve (12)-month period beginning on the Plan termination date pursuant to the terms of the Plan shall be paid in accordance with such terms. In addition, the Company or any Affiliate shall be prohibited from adopting a similar arrangement within three (3) years following the date of the Plan’s termination.
|
(1)
|
Application
. Notwithstanding any employee agreement in effect between a Participant and the Company or any Affiliate, if a Participant or Beneficiary brings a claim that relates to benefits under this Plan that is not covered under ERISA, and regardless of the basis of the claim (including but not limited to, actions under Title VII, wrongful discharge, breach of employment agreement, etc.), such claim shall be settled by final binding arbitration in accordance with the rules of the American Arbitration Association (“AAA”) and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
|
(2)
|
Initiation of Action
. Arbitration must be initiated by serving or mailing a written notice of the complaint to the other party. Normally, such written notice should be provided to the other party within one year (365 days) after the day the complaining party first knew or should have known of the events giving rise to the complaint. However, this time frame may be extended if the applicable statute of limitation provides for a longer period of time. If the complaint is not properly submitted within the appropriate time frame, all rights and claims that the complaining party has or may have against the other party shall be waived and void. Any notice sent to the Company shall be delivered to:
|
(3)
|
Compliance with Personnel Policies
. Before proceeding to arbitration on a complaint, the Participant or Beneficiary must initiate and participate in any complaint resolution procedure identified in the Company’s or Affiliate’s personnel policies. If the claimant has not initiated the complaint resolution procedure before initiating arbitration on a complaint, the initiation of the arbitration shall be deemed to begin the complaint resolution procedure. No arbitration hearing shall be held on a complaint until any applicable complaint resolution procedure has been completed.
|
(4)
|
Rules of Arbitration
. All arbitration will be conducted by a single arbitrator according to the Employment Dispute Arbitration Rules of the AAA. The arbitrator will have authority to award any remedy or relief that a court of competent jurisdiction could order or grant including, without limitation, specific performance of any obligation created under policy, the awarding of punitive damages, the issuance of any injunction, costs and attorney’s fees to the extent permitted by law, or the imposition of sanctions for abuse of the arbitration process. The arbitrator’s award must be rendered in a writing that sets forth the essential findings and conclusions on which the arbitrator’s award is based.
|
(5)
|
Representation and Costs
. Each party may be represented in the arbitration by an attorney or other representative selected by the party. The Company or Affiliate shall be responsible for its own costs, the AAA filing fee and all other fees, costs and expenses of the arbitrator and AAA for administering the arbitration. The claimant shall be responsible for his attorney’s or representative’s fees, if any. However, if any party prevails on a statutory claim which allows the prevailing party costs and/or attorneys’ fees, the arbitrator may award costs and reasonable attorneys’ fees as provided by such statute.
|
(6)
|
Discovery; Location; Rules of Evidence
. Discovery will be allowed to the same extent afforded under the Federal Rules of Civil Procedure. Arbitration will be held at a location selected by the Company. AAA rules notwithstanding, the admissibility of evidence offered at the arbitration shall be determined by the arbitrator who shall be the judge of its materiality and relevance. Legal rules of evidence will not be controlling, and the standard for admissibility of evidence will generally be whether it is the type of information that responsible people rely upon in making important decisions.
|
(7)
|
Confidentiality
. The existence, content or results of any arbitration may not be disclosed by a party or arbitrator without the prior written consent of both parties. Witnesses who are not a party to the arbitration shall be excluded from the hearing except to testify.
|
(i)
|
If a Participant takes a leave of absence from the Company or an Affiliate for purposes of military leave, sick leave or other bona fide leave of absence, the Participant’s service will be deemed to continue for the first six (6) months of the leave of absence, or if longer, for so long as the Participant’s right to reemployment is provided either by statute or by contract;
provided
that if the leave of absence is due to the Participant’s medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of six (6) months or more, and such impairment causes the Participant to be unable to perform the duties of his or her position with the Company or an Affiliate or a substantially similar position of employment, then the leave period may be extended for up to a total of twenty-nine (29) months. If the period of the leave exceeds the time periods set forth above and the Participant’s right to reemployment is not provided by either statute or contract, the Participant will be considered to have incurred a Separation from Service on the first day following the end of the applicable time period set forth above.
|
(ii)
|
A Participant will be presumed to have incurred a Separation from Service when the level of bona fide services performed by the Participant for the Company and its Affiliates permanently decreases to a level equal to twenty percent (20%) or less of the average level of services performed by the Participant for the Company and its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service).
|
(iii)
|
The Participant will be presumed not to have incurred a Separation from Service while the Participant continues to provide bona fide services to the Company or an Affiliate in any capacity (whether as an employee or independent contractor) at a level that at least fifty percent (50%) of the average level of services performed by the Participant for the Company and its Affiliates during the immediately preceding thirty-six (36) month period (or such lesser period of service).
|
(iv)
|
If a Participant ceases to provide services as an employee to the Company or an Affiliate, but immediately thereafter continues to provide services as an independent contractor to any such entity without incurring a Separation from Service as described in the subparagraphs above, then such Participant will not incur a Separation from Service until the expiration of the contract (or, if applicable, all contracts) under which services are performed for the Company and any Affiliate if the expiration is a good-faith and complete termination of the contractual relationship.
|
(i)
|
If an amount deferred under this Plan is required to be included in the income of a Participant under Code Section 409A prior to the date such amount is scheduled to be distributed, then such Participant shall receive a distribution, in a lump sum within ninety (90) days after the date the Plan fails to meet the requirements of Code Section 409A, of the amount required to be included in the Participant’s income as a result of such failure.
|
(ii)
|
If an amount under the Plan is required to be immediately distributed in a lump sum under a domestic relations order in accordance with Section 9.8, then such amount shall be distributed according to the terms of such order.
|
(i)
|
If a distribution required under the terms of this Plan would jeopardize the ability of the Company or an Affiliate to continue as a going concern, the Company or the Affiliate shall not be required to make such distribution. Rather, the distribution shall be delayed until the first date that making the distribution does not jeopardize the ability of the Company or an Affiliate to continue as a going concern. Any distribution delayed under this provision shall be treated as made on the date specified under the terms of this Plan.
|
(ii)
|
If a distribution will violate the terms of Section 16(b) of the Exchange Act or other Federal securities laws, or any other applicable law, then the distribution shall be delayed until the earliest date on which making the distribution will not violate such law.
|
(i)
|
The Participant may make an initial investment election at the time of enrollment in the Plan in whole increments of one percent (1%).
|
(ii)
|
A Participant may elect to allocate any future amounts credited among the various Measurement Funds in whole increments of one percent (1%) from time to time as prescribed by the Administrator.
|
(iii)
|
A Participant may elect to reallocate the balance of his or her Account into various Measurement Funds from time to time as prescribed by the Administrator.
|
1.
|
Eligibility
. This Appendix A covers employees of the Company or its Affiliates (a) who are participants in a Retirement Plan, (b) whose benefits under such Retirement Plan are limited as described in Section 1.1, and (c) who either (i) were an officer (as elected by the Board or appointed by the Chief Executive Officer ) of the Company as of September 3, 2016 and continue to be an officer of the Company, (ii) were an officer immediately prior to the merger of Johnson Controls, Inc. with a subsidiary of Tyco International plc and who ceased to be am officer in connection with such merger or (iii) was selected by the Chief Executive Officer or the Committee to participate under this Appendix A of the Plan. For purposes hereof, an employee shall nonetheless remain eligible under this Appendix A,
provided
such employee continues to satisfy the requirements of (b) and(c) above.
|
2.
|
Definitions
.
|
3.
|
Retirement Plan Supplement Contributions
.
|
4.
|
Vesting
.
|
Years of Vesting Service
*
|
Vested Percentage
|
Less than 1
|
0%
|
1
|
20%
|
2
|
40%
|
3
|
60%
|
4
|
80%
|
5 or more
|
100%
|
Years of Vesting Service
*
|
Vested Percentage
|
Less than 1
|
0%
|
1
|
20%
|
2
|
40%
|
3
|
60%
|
4
|
80%
|
5 or more
|
100%
|
5.
|
Distribution Elections
.
|
6.
|
Distribution Payments
.
|
7.
|
Forfeiture
.
|
8.
|
Administrative Error Correction
. The Administrator may permit an Administrative Error (as defined below) to be corrected by allowing a Participant’s deferral election to be processed as soon as practicable after December 31 (and any related payroll discrepancy to be corrected) to the extent permitted under Code Section 409A. “Administrative Error” shall mean (a) an error by a Participant to file a deferral election according to Section 2(a) of this Appendix with the Administrator, following a good faith attempt, or (b) the failure of the Administrator to properly process a Participant’s deferral election.
|
1.
|
Eligibility
. This Appendix B covers an employee (a) whose Retirement Income Contributions (as defined in the Savings Plan) or other employer non-matching contributions under his or her Retirement Plan are limited by reason of the application of Code Section 401(a)(17) and (b) who is not covered by Appendix A.
|
2.
|
Participation Date
. An eligible employee shall become a Participant on the date the Participant’s compensation first exceeds the Code Section 401(a)(17) limit. For this purpose, the only bonus that may be included in compensation is the amount a Participant receives (or would receive but for a deferral election) under an annual cash incentive award granted under a plan of the Company or the Employer for the calendar year.
|
3.
|
Retirement Income Allocation
. A Participant’s Account shall be credited at such time or times as may be determined by the Administrator in its sole discretion, but in no event less frequently than annually as of December 31, with an amount equal to the difference between the amount of Retirement Income Contributions or other employer non-matching contributions actually credited to the Participant’s Retirement Plan account for the year and the amount of Retirement Income Contributions or other employer non-matching contributions that would have been so credited if the limit on considered compensation under Section 401(a)(17) of the Code did not apply and by including all amounts of cash compensation which the Participant would have received under an annual cash incentive award granted under a plan of the Company or Employer for the year but for a deferral election;
provided
the Participant has met the eligibility requirements to receive a Retirement Income Contribution or other employer non-matching contributions under the Participant’s Retirement Plan for such year.
|
4.
|
Vesting
. The Retirement Income Contributions or other employer non-matching contributions credited to a Participant under this Appendix B shall be shall be vested as follows:
|
Years of Vesting Service
*
|
Vested Percentage
|
Less than 1
|
0%
|
1
|
20%
|
2
|
40%
|
3
|
60%
|
4
|
80%
|
5 or more
|
100%
|
5.
|
Manner of Distribution
. Amounts credited under this Appendix B (as adjusted for earnings or losses thereon) shall be paid in a cash lump sum on the first distribution date (as defined below) following the six-month anniversary of the Participant’s Separation from Service. For purposes hereof, the term “distribution date” means each January 15 or July 15, or the first business day prior such date if such date falls on a holiday or weekend. The lump sum payment shall equal the vested balance of the Participant’s Account as of the Valuation Date.
|
1.
|
Vesting
. The ADTI Restoration Plan Accounts will be subject to the vesting schedule set forth in the ADTI Restoration Plan as in effect on December 31, 2014. Under such plan, all participants who were active employees of ADTI on the date that the Company acquired JCI shall be 100% vested in their ADTI Restoration Plan Account.
|
2.
|
Payment to Participants
. An ADTI Restoration Plan Account shall be paid in 3 annual installments following the Participant’s Separation from Service. The first installment shall be paid during the 75-day window that commences 6 months after the Participant’s Separation from Service. The second and third annual installment payments will be made during the 30-day window commencing on each of the first and second anniversary of the Participant’s Separation from Service. The amount of each installment will be determined by dividing the vested balance of the ADTI Restoration Plan Account by the number of remaining installments to be paid.
|
3.
|
Payment to Beneficiaries
. All beneficiary designations filed under the ADTI Restoration Plan (except those with respect to participants who are deceased as of December 31, 2014) shall be cancelled effective January 1, 2015. Thereafter, the beneficiary designation procedures of this Plan shall apply to the ADTI Restoration Plan Accounts. Upon the death of a Participant with an unpaid vested balance in his or her ADTI Restoration Plan Account, such unpaid vested balance shall be paid in a lump sum to the Participant’s Beneficiary during the 90-day period commencing after 3 months from the date of the Participant’s death.
|
4.
|
Offset to SERB
. This Plan constitutes a retirement plan of the employer for purposes of the Supplemental Executive Retirement Benefit (SERB) which has been extended to certain Participants. Consequently, the benefits provided under this Plan (whether under this Appendix C or otherwise) shall constitute an offset (i.e., an “Other Benefit”) to any Participant’s benefit under any SERB Agreement with any employer.
|
5.
|
Final Contributions
. Notwithstanding anything herein to the contrary, employer allocations that were due with respect to the 2014 plan year under the terms of the ADTI Restoration Plan shall be credited to the ADTI Restoration Plan Accounts hereunder in 2015.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Johnson Controls International plc;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ George R. Oliver
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George R. Oliver
Chairman and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Johnson Controls International plc;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
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a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Brian J. Stief
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Brian J. Stief
Executive Vice President and
Chief Financial Officer
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1.
|
the Quarterly Report on Form 10-Q for the quarter ended
March 31, 2018
(Periodic Report) to which this statement is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and
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2.
|
information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Johnson Controls International plc.
|
|
/s/ George R. Oliver
|
George R. Oliver
Chairman and Chief Executive Officer
|
|
/s/ Brian J. Stief
|
Brian J. Stief
Executive Vice President and
Chief Financial Officer
|