What changed in this filing

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Item 1. Business

2024-11-19 compared with 2023-12-14 · 82 added, 62 removed, 193 unchanged (43% of the section changed)

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The Company is committed to helping its customers win and creating greater value for all of its stakeholders through its strategic focus on buildings.

Johnson Controls was originally incorporated in the state of Wisconsin in 1885 as Johnson Electric Service Company to manufacture, install and service automatic temperature regulation systems for buildings and was renamed Johnson Controls,

In 2005, Johnson Controls acquired York International, a global supplier of heating, ventilating and air-conditioning ("HVAC") and refrigeration equipment and services.

In 2014, Johnson Controls acquired Air Distribution Technologies, Inc., one of the largest independent providers of air distribution and ventilation products in North America.

In 2015, Johnson Controls formed a joint venture with Hitachi to expand its building related product offerings.

Following this acquisition, Johnson Controls continued to expand its portfolio of building related product and service offerings for residential and commercial customers.

In 2016, Johnson Controls, Inc.

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In 2019, the Company closed the sale of its Power Solutions business, completing the Company’s transformation into a pure-play building technologies and solutions provider.

The Company is a global leader in engineering, manufacturing and commissioning building products and systems, including residential and commercial HVAC equipment, industrial refrigeration systems, controls, security systems, fire-detection systems and fire-suppression solutions.

In 2024, the Company announced that it was evaluating its non-core product lines in connection with its objective to be a pure-play provider of technologies and solutions for commercial buildings.

During the fourth quarter of fiscal 2024, the Company completed the sale of its Air Distribution Technologies business included within its Global Products segment.

During the fourth quarter of fiscal 2024, the Company entered into a definitive agreement to sell its Residential and Light Commercial ("R&LC") HVAC business to Robert Bosch GmbH (“Bosch”).

The R&LC HVAC business includes the Company's North America ducted business and Johnson Controls-Hitachi Air Conditioning Holding (UK) Ltd., the Company’s global residential joint venture with Hitachi Global Life Solutions, Inc.

(“Hitachi”), of which the Company owns 60% and Hitachi owns 40%.

The sale of the R&LC HVAC business is expected to be completed in the fourth quarter of fiscal 2025.

The Company is a global leader in engineering, manufacturing, commissioning and retrofitting building products and systems, including residential and commercial HVAC equipment, industrial refrigeration systems, controls, security systems, fire-detection systems and fire-suppression solutions.

The Company further serves customers by providing technical services, including maintenance, management, repair, retrofit and replacement of equipment (in the HVAC, industrial refrigeration, security and fire-protection space), and energy-management consulting.

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• Building Solutions Asia Pacific which operates in Asia Pacific;

• Global Products which operates worldwide and includes the Johnson Controls-Hitachi joint venture.

• Global Products which operates worldwide.

The Building Solutions segments:

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The Global Products segment designs, manufactures and sells:

• HVAC equipment, controls software and software services for residential and commercial applications;

• HVAC equipment, controls software and software services;

• Refrigeration equipment and controls;

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• Security products, including intrusion security, anti-theft devices, access control, and video surveillance and management systems.

The Company’s segments provide products and services to commercial, institutional, industrial, data center, governmental and residential customers.

The Company’s segments provide products and services primarily to commercial, institutional, industrial, data center, and governmental customers.

For more information on the Company’s segments, refer to Note 19, "Segment Information," of the notes to consolidated financial statements.

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The Company sells and installs its commercial HVAC equipment and systems, control systems, security systems, fire-detection and fire suppression systems, equipment and services primarily through its extensive direct channel, consisting of a global network of sales and service offices.

Significant sales are also generated through global third-party channels, such as

distributors of air-conditioning, controls, security and fire-detection and suppression products.

Significant sales are also generated through global third-party channels, such as distributors of air-conditioning, controls, security and fire-detection and suppression products.

The Company’s large base of current customers leads to significant repeat business for the maintenance, retrofit and replacement markets.

The Company is also able to leverage its installed base to generate sales for its service business.

Trusted building brands, such as YORK®, Hitachi Air Conditioning, Metasys®, Ansul, Ruskin®, Titus®, Frick®, FM:Systems®, PENN®, Sabroe®, Silent-Aire®, Simplex® and Grinnell®, together with the breadth and depth of the products, systems and solutions offered by the Company, give it what it believes to be the most diverse portfolio in the building technology industry.

Trusted building brands, such as YORK®, Metasys®, Ansul, Frick®, FM:Systems®, PENN®, Sabroe®, Silent-Aire®, Simplex® and Grinnell®, together with the breadth and depth of the products, systems and solutions offered by the Company, give it what it believes to be the most diverse portfolio in the building technology industry.

The Company has developed software platforms, including on-premises platforms and cloud-based software services, and integrated its products and services with digital capabilities to provide data-driven solutions to create smarter, safer and more sustainable buildings.

The Company's OpenBlue platform enables enterprises to better manage their physical spaces delivering sustainability, new occupant experiences, safety and security by combining the Company’s building expertise with cutting-edge technology, including artificial intelligence and machine learning-powered service solutions such as remote diagnostics, predictive maintenance, workplace management, compliance monitoring and advanced risk assessments.

The Company leverages its digital and data-driven products and services to offer integrated and customizable solutions focused on delivering outcomes to customers, including OpenBlue Buildings-as-a-Service, OpenBlue Net Zero Buildings-as-a-Service and OpenBlue Healthy Buildings.

The Company leverages its product portfolio and service network, together with digital and data-driven technologies to offer integrated and customizable solutions focused on delivering outcomes to customers, including OpenBlue Buildings-as-a-Service, OpenBlue Net Zero Buildings-as-a-Service and OpenBlue Healthy Buildings.

These services are generally designed to generate recurring revenue for the Company as it supports its customers in achieving their desired outcomes.

In fiscal 2023, products and systems accounted for 76% of sales and services accounted for 24% of sales.

In fiscal 2024, products and systems accounted for 70% of sales from continuing operations and services accounted for 30% of sales from continuing operations.

The Company conducts its operations through a significant number of individual contracts that are either negotiated or awarded on a competitive basis.

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Business Strategy

The Company’s business strategy is to sustain and expand its position as a leader in smart and sustainable building solutions by offering a full spectrum of products and solutions for customer buildings across the globe.

The Company’s core strategy remains focused on creating growth platforms, driving operational improvements and creating a high-performance culture.

The Company’s business strategy is to sustain and expand its position as a leader in commercial building technology and solutions by offering a full spectrum of products and solutions for commercial customers across the globe.

In 2024, the Company acted to optimize its core commercial buildings portfolio with the sale of its Air Distribution Technologies business and the entry into a definitive agreement to sell its R&LC HVAC business.

Following these portfolio optimization actions, the Company’s core strategy remains focused on creating growth platforms, driving operational improvements and creating a high-performance, customer-centric culture.

The Company has strong positions in attractive and growing end-markets across HVAC, controls, fire, security and services, enhanced by its comprehensive product portfolio and substantial installed base.

The Company believes that it is well positioned to capitalize on the emerging and prevalent trends in the buildings industry, including sustainability, healthy buildings/indoor environmental quality and smart buildings.

To capitalize on these trends, the Company remains focused on maintaining leading positions in delivering building products, systems and solutions, as well as enabling growth through digital, to develop and leverage new digital technologies and capabilities into outcomes powered by its OpenBlue software platform.

In furtherance of these goals, the Company has three strategic priorities:

The Company believes that it is well positioned to capitalize on the emerging and prevalent trends in the commercial buildings industry, including data centers, sustainable buildings, healthy buildings/indoor environmental quality and smart buildings.

To capitalize on these trends, the Company

remains focused on maintaining leading positions in delivering commercial building products, systems and solutions through its direct and indirect channels, as well as enabling growth through digital, to develop and leverage the breath of its portfolio to drive attachment, offer differentiated services and solutions over the building lifecycle and generate recurring revenue.

In furtherance of these goals, the Company has four strategic priorities:

Capitalize on Key Growth Vectors:

Sustainability, healthy buildings/indoor environmental quality and smart buildings represent key growth opportunities for the Company.

Data centers, sustainable buildings, healthy buildings/indoor environmental quality and smart buildings represent key growth opportunities for the Company.

The Company seeks to leverage its existing portfolio breadth and investments in product development, combined with the expansion of its digital products and capabilities powered by OpenBlue, to offer differentiated solutions and innovative deal structures to help customers achieve their objectives.

The Company intends to expand its capabilities by investing in products and technologies, as well as expanding its partnerships, to power innovation that will allow it to provide differentiated services that are tailored to its customers’ desired outcomes.

Bringing Value Across the Building Lifecycle :

The Company provides system and service solutions that maximize the opportunities around the lifecycle of the building, delivering outcomes to the customer that save energy, reduce emissions and optimize building lifecycle costs while improving the overall occupant experience.

The Company’s ability to drive direct, integrated solutions within multiple domains enables opportunities for attachment, cross-selling, recurring revenue, and developing long term relationships with customers from installation to service, retrofit, and replacement.

Accelerate in High Growth Digital Services, Regions and Verticals :

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The Company is focused on developing and deploying connected equipment, systems and controls that will support the provision of digital services and solutions.

The Company further intends to expand its presence in high growth regions and

invest in high growth verticals within the markets it serves, including healthcare, commercial offices/campus, education and data centers.

The Company further intends to expand its presence in high growth regions and invest in high growth verticals within the markets it serves, including healthcare, commercial offices/campus, education and data centers.

Sustain a High-Performance, Customer-Centric Culture :

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The Company aims to leverage its talent capabilities and training to create a customer-focused culture to drive customer loyalty and decisions.

To realize these priorities, the Company is leveraging its technology leadership, comprehensive product portfolio, global presence, substantial installed base and strong channels to monetize the lifecycle opportunities of install, service, retrofit and replacement which are established and delivered by the Company’s direct field businesses and third-party channels across the globe.

To realize these priorities, the Company is leveraging its technology leadership, comprehensive product portfolio, global presence, substantial installed base and strong channels to monetize the lifecycle opportunities of systems, service, retrofit and replacement which are established and delivered by the Company’s direct field businesses and third-party channels across the globe.

The Company is augmenting its strategic priorities with disciplined execution, productivity enhancements and sustainable cost management to create a path to realize expanded margins and enhanced profitability.

The Company’s backlog is applicable to its sales of systems and services.

At September 30, 2023, the backlog was $13.6 billion, of which $12.1 billion was attributable to the building solutions (field) business.

The backlog amount outstanding at any given time is not necessarily indicative of the amount of revenue to be earned in the upcoming fiscal year.

At September 30, 2023, remaining performance obligations were $19.6 billion, which is $6.0 billion higher than the Company's backlog of $13.6 billion.

Differences between the Company’s remaining performance obligations and backlog are primarily due to the following:

• Remaining performance obligations include large, multi-purpose contracts including services to be performed over the initial term of the building contract (typically 25 to 35 years) versus backlog which includes only the lifecycle period of the contract (approximately five years);

• Remaining performance obligations exclude certain customer contracts with a term of one year or less and contracts that are cancellable without substantial penalty versus backlog which includes short-term and cancellable contracts;

• Remaining performance obligations include the full remaining term of service contracts with substantial termination penalties versus backlog which includes one year for all outstanding service contracts.

The Company believes backlog is a useful measure of evaluating the Company's operational performance and relationship to total orders.

Backlog and Orders

Backlog and orders are additional metrics that are meant to provide management with a deeper level of insight into the progress of specific strategic and growth initiatives.

Backlog is applicable to sales of products and systems and services and totaled $15.2 billion at September 30, 2024, including both the Building Solutions and Global Products segments.

Orders provide management with a signal of customer demand for the Company's products and services, as well as an indication of future revenues and performance.

However, the timing and conversion of backlog and orders are subject to numerous uncertainties and risks and are not necessarily indicative of the amount of revenue to be earned in the upcoming fiscal year.

The following table summarizes backlog and orders for the Building Solutions segments:

Backlog Orders

(in billions) September 30, 2024 Year-over-Year Change (1)

September 30, 2024 Year-over-Year Change (1)

Building Solutions North America $ 9.1 10 % $ 12.3 9 %

Building Solutions EMEA/LA 2.5 10 % 4.6 9 %

Building Solutions Asia Pacific 1.5 (10) % 2.5 (8) %

Total Building Solutions $ 13.1 7 % $ 19.4 7 %

(1) Change is compared to September 30, 2023 (backlog) and the year ended September 30, 2023 (orders) and excludes the impact of mergers, acquisitions, dispositions and foreign currency.

Remaining performance obligations were $21.1 billion at September 30, 2024.

Differences between the Company’s remaining performance obligations and backlog are primarily due to:

• Remaining performance obligations include large, multi-purpose contracts to construct hospitals, schools and other governmental buildings, which are services to be performed over the building's lifetime with average initial contract terms of 25 to 35 years for the entire term of the contract versus backlog which includes only the lifecycle period of these contracts which approximates five years;

• Remaining performance obligations exclude service contracts with an original expected duration of one year or less and contracts that are cancellable without substantial penalty versus backlog which includes short-term and cancellable contracts;

• Remaining performance obligations include the full remaining term of service contracts with substantial termination penalties versus backlog which includes only one year for all outstanding service contracts.

The Company reports backlog, which it believes is a useful measure of evaluating the Company's operational performance and relationship to total orders.

Raw Materials

Raw materials used by the Company’s businesses in connection with their operations include steel, aluminum, brass, copper, polypropylene and certain flurochemicals used in fire suppression agents.

Raw materials used by the Company’s businesses in connection with their operations include steel, aluminum, brass, copper, polypropylene and certain fluorochemicals used in fire suppression agents.

The Company also uses semiconductors and other electronic components in the manufacture of its products.

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The collective impact of these trends were favorable to revenue due to increased demand and price increases to offset inflation, while negatively impacting margins due to supply chain disruptions and cost pressures.

However, throughout fiscal 2023, the Company experienced improved margins as supply chain disruptions eased and higher priced backlog was converted to sales, as discussed in Item 7.

However, throughout fiscal 2023 and 2024, the Company experienced improved margins as supply chain disruptions eased and higher priced backlog was converted to sales, as discussed in Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations.

Although the Company has experienced recent improvement in its supply chain, the Company could experience further disruptions, shortages and price inflation in the future, the effect of which will depend on the Company’s ability to successfully mitigate and offset the impact of these events.

Although the Company has seen its supply chain normalize, the Company could experience further disruptions, shortages and price inflation in the future, the effect of which will depend on the Company’s ability to successfully mitigate and offset the impact of these events.

In fiscal 2025, commodity prices and availability could fluctuate throughout the year and could significantly affect the Company’s results of operations.

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The Company works actively in the U.S.

and internationally to ensure the enforcement of copyright, trademark, trade secret, and other

protections that apply to the Company's products, services, software, solutions, and branding.

and internationally to ensure the enforcement of copyright, trademark, trade secret, and other protections that apply to the Company's products, services, software, solutions, and branding.

Certain intellectual property, where appropriate, is protected by contracts, licenses, confidentiality or other agreements.

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These regulations tend to be implemented under global, national and sub-national climate objectives or policies, and target the global warming potential (“GWP”) of refrigerants, equipment energy efficiency, and the combustion of fossil fuels as a heating source.

The Company continues to invest in its product portfolio to meet emerging emissions regulations and standards.

The Company continues to invest in its product portfolio to meet or exceed emerging emissions regulations and standards.

The Company has expended substantial resources globally, both financial and managerial, to comply with environmental laws and worker safety laws and maintains procedures designed to foster and ensure compliance.

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Such matters typically are resolved with regulatory authorities through commitments to compliance, abatement or remediation programs and, in some cases, payment of penalties.

In addition, governments in the United States and internationally have increasingly been regulating perfluorooctane sulfonate ("PFOS"), perfluorooctanoic acid ("PFOA"), and/or other per- and poly-fluoroalkyl substances ("PFAS"), which are contained in certain of the Company's firefighting foam products.

In addition, governments in the United States and internationally have increasingly been regulating perfluorooctane sulfonate ("PFOS"), perfluorooctanoic acid ("PFOA"), and/or other per- and poly-fluoroalkyl substances ("PFAS"), which were contained in certain of the Company's legacy firefighting foam products.

These regulations include declining emission standards and limits set as to the presence of certain compounds.

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The Company’s businesses may also be affected by changes in governmental regulation of refrigerants, PFAS, energy efficiency standards, noise regulation and product safety regulations, including changes related to hydro fluorocarbons/emissions reduction efforts, energy conservation standards and the regulation of fluorinated gases.

These and other laws and regulations impact the manner in which the Company conducts its

business, and changes in legislation or government policies can affect the Company's worldwide operations, both favorably and unfavorably.

These and other laws and regulations impact the manner in which the Company conducts its business, and changes in legislation or government policies can affect the Company's worldwide operations, both favorably and unfavorably.

For a more detailed description of the various laws and regulations that affect the Company's business, see Item 1A.

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The Governance and Sustainability Committee is the primary overseer of employee health and safety.

The Chief Executive Officer ("CEO"), the CHRO, the General Counsel, the Vice President of Global Environment Health & Safety, the Vice President of Diversity, Equity and Inclusion and other senior leaders within the Company are responsible for the execution of the strategy and engage with the Compensation and Talent Development Committee, the Governance and Sustainability Committee and the full Board of Directors on the critical components driving the Company’s High-Performance Culture, including discussions of future of work, human capital trends, processes and practices, diversity, equity and inclusion, health and safety, talent development, succession planning, and talent and culture best practices.

Key components driving the Company’s High-Performance Culture include:

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Health and Wellness, Safety and Environment are the three pillars of the Company’s Zero Harm vision.

The Company’s health and safety programs are designed around global standards with appropriate variations addressing multiple jurisdictions and regulations, specific hazards and unique working environments of the Company’s manufacturing, service and install, and headquarter operations.

The Company requires each of its locations to perform regular safety audits to ensure proper safety policies, program procedures, analyses and training are in place.

In addition, the Company engages an independent third-party conformity assessment and certification vendor to audit selected operations for adherence to its global health and safety standards.

Safety culture and values-based safety initiatives have been deployed within the Company to sustain and further enhance performance.

Cultural and values-based safety initiatives have been deployed within the Company to sustain and further enhance performance.

The Company utilizes a mixture of leading and lagging indicators to assess the health and safety performance of its operations.

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The Company is dedicated to creating a workplace where diversity is celebrated, where every employee feels included and valued, and where equitable practices are the norm.

By prioritizing diversity, equity, and inclusion, the Company aims to foster a culture of innovation, collaboration, and respect that drives its success in the global marketplace.

Diversity, Equity, and Inclusion (“DEI”) is a core component of the Company’s strategy to drive a High-Performance Culture, recognized as adding value to the Company’s creation and delivery of innovative high performing products and enabling solutions to its customers’ toughest problems.

The Company has recently elevated its focus on ‘equity’ to further enable all employees to have access to the opportunities, resources, support and networks they need to develop and succeed.

The Company aims to foster a culture of innovation, collaboration, and respect that drives its success in the global marketplace.

Diversity, equity, and inclusion (“DEI”) is a component of the Company’s strategy to drive a High-Performance Culture, recognized as adding value to the Company’s creation and delivery of innovative high performing products and enabling solutions to its customers’ toughest problems.

The Company has elevated its focus on ‘equity’ to enable all employees to have access to the opportunities, resources, support and networks they need to develop and succeed.

The Company empowers employees to take an active role in creating a culture that values uniqueness, celebrates creativity and drives innovation.

The Company encourages employees to enable an inclusive culture through active participation in Business Resource Groups ("BRGs") - employee-led voluntary organizations of people with similar interests, experiences, or demographic characteristics.

The Company continues to increase participation in its BRG chapters worldwide across nine categories:

African American, Asia Pacific, LGBTQ+, Emerging Leaders, Hispanic, Disabilities, Veterans, Women and Sustainability.

In 2023, the Company established BRGs focused on Wellness and Caregiving in response to feedback through its Voice of the Employee events.

The Company continues to increase participation in its BRG chapters worldwide across eleven categories:

African American, Asia Pacific, LGBTQ+, Emerging Leaders, Hispanic, Disabilities, Veterans, Women, Sustainability, Parents and Caregivers, and Mindful Living.

Each BRG is open to all employees and sponsored and supported by senior leaders across the enterprise.

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The Company also engages BRGs to support the acquisition and development of diverse talent internally and externally.

As a world leader in building technologies, the Company is committed to enabling employees to bring their authentic selves to work each day, which in turn adds value, fosters creativity, and inspires change across the organization.

The Company is committed to enabling employees to bring their authentic selves to work each day, which in turn adds value, fosters creativity, and inspires change across the organization.

The Company recognizes that it is its people that make the Company exceptional.

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The Company’s global flagship Future Leaders Internship Program continues to expand the diversity of its outreach and focus on the skills needed to advance the Company’s growth initiatives.

In 2024, the Company, in response to employee feedback, launched the Mindful Living and Parents and Caregivers Together ("PACT") BRG groups.

Interest and enthusiasm has been strong, and the new BRGs are growing membership at the fastest pace of any BRG group.

• Honoring Employee Contributions:

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Talent Development

To maintain a High-Performance Culture, the Company must ensure the continued development and advancement of its employees.

The Company has adopted a continual improvement approach to talent development, working to support employees’ growth while defining the skills and capabilities the organization will need in future years.

The Company must ensure the continued development and advancement of its employees to maintain a High-Performance Culture.

The Company has adopted a continuous improvement approach to talent development, working to support employees’ growth while defining the skills and capabilities the organization will need in future years.

To assess current enterprise capabilities and define future needs, strategic talent reviews and succession planning occur on a planned cadence annually – globally and across all business areas.

The Company continues to provide opportunities for its employees to grow their careers, with approximately half of open management positions filled internally during fiscal year 2023.

The Company continues to provide opportunities for its employees to grow their careers, with more than half of open management positions filled internally during fiscal 2024.

The Company believes that high performance is an outcome of an employee’s ability to change, adapt, and grow their capabilities throughout their career.

This talent development approach includes self and multi-rater assessments, functional and

leadership competency models, providing employees a personalized approach to their development planning and skill acquisition.

This talent development approach includes self and multi-rater assessments, functional and leadership competency models, providing employees a personalized approach to their development planning and skill acquisition.

The Company emphasizes real-life, real-time learning that enables each employee to meet the demands of challenging and changing work and focuses on reinforcing key principles that are designed to support an individual’s effectiveness in his or her current job and in their future development.

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• Diversity and Inclusion:

The Company has developed a structured diversity and inclusion training curriculum across the levels and stages of individuals' careers to develop and align employees with the Company’s diversity and inclusion strategy and values.

In fiscal year 2023, the Company expanded the diversity curriculum, adding new training programs to develop careers of under-represented talent and a toolkit for managers to guide their self-led inclusion efforts.

The Company has developed a structured diversity and inclusion education curriculum across the levels and stages of individuals' careers to develop and align employees with the Company’s diversity and inclusion strategy and values.

The Dimensions training program is designed to develop careers of under-represented talent and a toolkit for managers to guide their self-led inclusion efforts.

In fiscal 2024, the program was expanded

beyond North America to a global audience.

The Company’s flagship Women in Leadership ("WIL") program continues to grow in participation with a total increase of 162% since inception in 2022.

The program is demonstrating measurable impact with 28% of original cohort participants being promoted since program completion.

In fiscal 2024, the Company offered a robust curriculum of almost 225,000 activities that were completed by employees, consisting of videos, courses, e-learning, documentation, articles and books, including over 4,000 active (in person or virtual) learning courses.

In fiscal 2024, over 1.17 million learning activities were completed by over 81,000 employees (excluding non-wired).

The total learning hours consumed by employees was 1.58 million hours, averaging almost 20 hours per employee including time invested in formal learning and standard time invested in self-paced reading or video consumption.

Organizational Engagement

The Company periodically measures the engagement of its employees using a quarterly pulse survey.

In fiscal 2023, the survey was launched and conducted three times.

The Company measures the engagement of its employees using a quarterly pulse survey initially launched in fiscal 2023.

The engagement survey provides managers with their own data dashboard to view their own engagement results and can be utilized by managers at all levels to understand how to improve the Company’s culture and employee engagement.

Managers are provided with resources to interpret their results and plan their actions following each survey.

In fiscal 2023, the Company offered a robust curriculum of over 197,000 activities that were completed by employees, consisting of videos, courses, e-learning, documentation, articles and books, including over 4,000 active (in person or virtual) learning courses.

In fiscal 2023, over 1.26 million learning activities were completed by approximately 86,300 employees.

The total learning hours consumed by employees was 1.22 million hours, averaging almost 14 hours per employee including time invested in formal learning and standard time invested in self-paced reading or video consumption.

Employee Population and Demographics

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Refer to Note 1, "Summary of Significant Accounting Policies," of the notes to consolidated financial statements for research and development expenditures.

The Company has committed to invest a substantial portion of its new product research and development in climate-related innovation to develop sustainable products and services.

The Company has committed to invest a substantial portion of its new product research and development in climate and efficiency-related innovation to develop sustainable products and services.

The Company invests in enhancements to the capabilities of its product lines and services to support its strategy, meet consumer preferences and achieve regulatory compliance.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business