What changed in this filing

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Item 1. Financial Statements

2025-05-07 compared with 2025-02-05 · 230 added, 185 removed, 831 unchanged (33% of the section changed)

4 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Products and systems $ 3,865 $ 3,883 $ 7,550 $ 7,487

Services 1,811 1,714 3,552 3,319

5,676 5,597 11,102 10,806

Cost of sales

1 unchanged sentence

Services 1,084 1,059 2,128 1,999

3,607 3,675 7,107 7,106

Gross profit 2,069 1,922 3,995 3,700

2 unchanged sentences

Net financing charges 80 89 166 176

Equity loss — ( 2 )

Income from continuing operations before income taxes 408 320

Equity income (loss) 1 ( 1 ) 1 ( 3 )

Income (loss) from continuing operations before income taxes 501 ( 471 ) 909 ( 151 )

Income tax provision (benefit) 26 ( 153 ) 73 ( 173 )

Income from continuing operations 361 340

Income from discontinued operations, net of tax (Note 3) 90 64

Net income 451 404

Income (loss) from continuing operations 475 ( 318 ) 836 22

Income from discontinued operations, net of tax 51 84 141 148

Net income (loss) 526 ( 234 ) 977 170

Income (loss) attributable to noncontrolling interests

1 unchanged sentence

Discontinued operations 46 40 80 70

Net income attributable to Johnson Controls $ 419 $ 374

Income attributable to Johnson Controls

Net income (loss) attributable to Johnson Controls $ 478 $ ( 277 ) $ 897 $ 97

Income (loss) attributable to Johnson Controls

Continuing operations $ 473 $ ( 321 ) $ 836 $ 19

1 unchanged sentence

Total $ 478 $ ( 277 ) $ 897 $ 97

Basic earnings per share attributable to Johnson Controls

Basic earnings (loss) per share attributable to Johnson Controls

Continuing operations $ 0.72 $ ( 0.47 ) $ 1.27 $ 0.03

1 unchanged sentence

Total $ 0.73 $ ( 0.41 ) $ 1.36 $ 0.14

Diluted earnings per share attributable to Johnson Controls

Diluted earnings (loss) per share attributable to Johnson Controls

Continuing operations $ 0.71 $ ( 0.47 ) $ 1.26 $ 0.03

6 unchanged sentences

Three Months Ended

Net income $ 451 $ 404

March 31, Six Months Ended

2025 2024 2025 2024

Net income (loss) $ 526 $ ( 234 ) $ 977 $ 170

Other comprehensive income (loss), net of tax:

3 unchanged sentences

Other comprehensive income (loss) ( 72 ) ( 69 ) ( 207 ) ( 50 )

Total comprehensive income 316 423

Total comprehensive income (loss) 454 ( 303 ) 770 120

Comprehensive income attributable to noncontrolling interests:

3 unchanged sentences

Realized and unrealized gains (losses) on derivatives ( 1 ) 4 5 —

Other comprehensive loss ( 55 ) ( 3 )

Other comprehensive income (loss) 12 1 ( 43 ) ( 2 )

Comprehensive income attributable to noncontrolling interests 60 44 37 71

Comprehensive income attributable to Johnson Controls $ 339 $ 396

Comprehensive income (loss) attributable to Johnson Controls $ 394 $ ( 347 ) $ 733 $ 49

The accompanying notes are an integral part of the consolidated financial statements.

2 unchanged sentences

(in millions, except par value;

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Cash and cash equivalents $ 795 $ 606

41 unchanged sentences

(in millions;

Three Months Ended December 31,

Six Months Ended March 31,

Operating Activities of Continuing Operations

Income from continuing operations attributable to Johnson Controls $ 836 $ 19

Loss from continuing operations attributable to noncontrolling interests ( 2 ) —

Income from continuing operations attributable to noncontrolling interests — 3

Income from continuing operations 836 22

Adjustments to reconcile net income to cash provided by operating activities:

Adjustments to reconcile net income to cash provided (used) by operating activities:

Depreciation and amortization 395 423

4 unchanged sentences

Other - net 32 ( 37 )

Changes in assets and liabilities, excluding acquisitions and divestitures:

Changes in assets and liabilities:

Accounts receivable 93 ( 509 )

12 unchanged sentences

Proceeds from debt 775 422

Repayments of debt ( 502 ) ( 163 )

Stock repurchases and retirements ( 660 ) ( 474 )

Payment of cash dividends ( 490 ) ( 504 )

Proceeds from the exercise of stock options 105 20

Employee equity-based compensation withholding taxes ( 31 ) ( 24 )

Other - net ( 29 ) ( 80 )

Cash provided by financing activities from continuing operations 201 1,236

Cash provided (used) by financing activities from continuing operations ( 474 ) 740

Discontinued Operations

Cash used by operating activities ( 2 ) ( 135 )

Cash provided (used) by operating activities 47 ( 12 )

Cash used by investing activities ( 27 ) ( 15 )

13 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Shareholders' Equity Attributable to Johnson Controls

12 unchanged sentences

Beginning balance 691 1,506 848 1,384

Net income attributable to Johnson Controls 419 374

Net income (loss) attributable to Johnson Controls 478 ( 277 ) 897 97

Cash dividends declared ( 240 ) ( 248 ) ( 486 ) ( 500 )

1 unchanged sentence

Ending balance 599 507 599 507

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Loss

Beginning balance ( 1,044 ) ( 933 ) ( 964 ) ( 955 )

Other comprehensive income (loss) ( 80 ) 22

Other comprehensive loss ( 84 ) ( 70 ) ( 164 ) ( 48 )

Ending balance ( 1,128 ) ( 1,003 ) ( 1,128 ) ( 1,003 )

2 unchanged sentences

Beginning Balance 1,230 1,176 1,263 1,149

Comprehensive income (loss) attributable to noncontrolling interests ( 23 ) 27

Comprehensive income attributable to noncontrolling interests 60 44 37 71

Dividends attributable to noncontrolling interests ( 65 ) ( 39 ) ( 78 ) ( 39 )

6 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

BASIS OF PRESENTATION

4 unchanged sentences

These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2024 filed with the SEC on November 19, 2024.

The results of operations for the three month period ended December 31, 2024 are not necessarily indicative of results for the Company’s 2025 fiscal year because of seasonal and other factors.

The results of operations for the three and six month periods ended March 31, 2025 are not necessarily indicative of results for the Company’s 2025 fiscal year because of seasonal and other factors.

Nature of Operations

Johnson Controls International plc, headquartered in Cork, Ireland, is a global leader in smart, healthy and sustainable buildings, serving a wide range of customers around the globe.

Johnson Controls International plc, headquartered in Cork, Ireland, is a global leader in smart, safe, healthy and sustainable buildings, serving a wide range of customers around the globe.

The Company’s products, services, systems and solutions advance the safety, comfort and intelligence of spaces to serve people, places and the planet.

9 unchanged sentences

Principles of Consolidation

The consolidated financial statements include the consolidated accounts of Johnson Controls International plc and its subsidiaries that are consolidated in conformity with U.S.

The consolidated financial statements include the consolidated accounts of Johnson Controls International plc and its subsidiaries in conformity with U.S.

The results of companies acquired or disposed of during the reporting period are included in the consolidated financial statements from the effective date of acquisition or up to the date of disposal.

2 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

The Company consolidates variable interest entities ("VIE") when it has the power to direct the significant activities of the entity and the obligation to absorb losses or receive benefits from the entity that may be significant.

9 unchanged sentences

Amounts outstanding related to supply chain financing ("SCF") programs are included in accounts payable in the consolidated statements of financial position.

Accounts payable included in the SCF programs were approximately $ 733 million and $ 703 million as of December 31, 2024 and September 30, 2024, respectively.

Accounts payable included in the SCF programs were approximately $ 655 million and $ 703 million as of March 31, 2025 and September 30, 2024, respectively.

Recently Issued Accounting Pronouncements

12 unchanged sentences

The Company expects to adopt the new annual disclosures as required for fiscal 2025 and the interim disclosures as required beginning with the first quarter of fiscal 2026.

The Company does not expect the recently issued accounting pronouncements above to have a material impact on its consolidated financial statements other than the related incremental disclosures.

Other recently issued accounting pronouncements are not expected to have a material impact on the Company's consolidated financial statements.

1 unchanged sentence

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

In July 2024, the Company entered into a definitive agreement to sell its R&LC HVAC business, which includes the North America Ducted businesses and the global Residential joint venture with Hitachi, of which Johnson Controls owns 60 % and Hitachi owns 40 %, to Bosch Group for approximately $ 8.1 billion in cash with the Company’s portion of the aggregate consideration being approximately $ 6.7 billion, inclusive of an upfront royalty payment for the licensing of the York tradename.

The transaction is expected to close in the fourth quarter of fiscal 2025, subject to required regulatory approvals and other customary closing conditions.

The transaction is expected to close in the second half of fiscal 2025, subject to required regulatory approvals and other customary closing conditions.

The R&LC HVAC business, which was previously reported in the Global Products segment, meets the criteria to be classified as discontinued operations as it represents a strategic shift in the Company's operations and results in the exit of substantially all of its residential and light commercial HVAC businesses.

1 unchanged sentence

The Company determined that the assets and liabilities for the R&LC HVAC business met the held for sale criteria during the fourth quarter of 2024.

Accordingly, the businesses' assets and liabilities were reclassified in the consolidated balance sheets at December 31, 2024 and September 30, 2024 to held for sale, and the Company ceased recording depreciation and amortization for the held for sale assets.

Accordingly, the assets and liabilities of the business were reclassified in the consolidated balance sheets at March 31, 2025 and September 30, 2024 to held for sale, and the Company ceased recording depreciation and amortization for the held for sale assets.

The following table summarizes the results of the R&LC HVAC business which are reported as discontinued operations (in millions):

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

Net sales $ 1,069 $ 1,102 $ 2,035 $ 1,987

12 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

The following table summarizes the assets and liabilities of the R&LC HVAC business which were classified as held for sale (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Accounts receivable - net 613 592

19 unchanged sentences

Assets and liabilities classified as held for sale are required to be recorded at the lower of carrying value or fair value less costs to sell.

As of December 31, 2024, the estimated fair value less costs to sell of the held for sale businesses exceeded their carrying value, and therefore, no adjustment was necessary.

As of March 31, 2025, the estimated fair value less costs to sell of the held for sale businesses exceeded their carrying value, and therefore, no adjustment was necessary.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

REVENUE RECOGNITION

1 unchanged sentence

The following tables present the Company's revenues disaggregated by segment and by Products & Systems and Services revenue (in millions):

Three Months Ended December 31,

Three Months Ended March 31,

Products & Systems Services Total Products & Systems Services Total

4 unchanged sentences

Total $ 3,865 $ 1,811 $ 5,676 $ 3,883 $ 1,714 $ 5,597

Six Months Ended March 31,

Products & Systems Services Total Products & Systems Services Total

Building Solutions North America $ 3,524 $ 2,136 $ 5,660 $ 3,218 $ 2,008 $ 5,226

Building Solutions EMEA/LA 1,140 1,018 2,158 1,144 958 2,102

Building Solutions Asia Pacific 671 398 1,069 645 353 998

Global Products 2,215 — 2,215 2,480 — 2,480

Total $ 7,550 $ 3,552 $ 11,102 $ 7,487 $ 3,319 $ 10,806

The following table presents further disaggregation of Global Products segment revenues by product type (in millions):

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

HVAC $ 468 $ 581 $ 936 $ 1,114

6 unchanged sentences

Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

The following table presents the location and amount of contract balances in the Company's consolidated statements of financial position (in millions):

Location of contract balances December 31, 2024 September 30, 2024

Location of contract balances March 31, 2025 September 30, 2024

Contract assets - current Accounts receivable - net $ 1,998 $ 1,931

2 unchanged sentences

Contract liabilities - noncurrent Other noncurrent liabilities 261 252

For the three months ended December 31, 2024 and 2023, the Company recognized revenue of $ 878 million and $ 839 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

For the three months ended March 31, 2025 and 2024, the Company recognized revenue of $ 393 million and $ 369 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

For the six months ended March 31, 2025 and 2024, the Company recognized revenue of $ 1,271 million and $ 1,208 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

Performance Obligations

A performance obligation is a distinct good, service, or a bundle of goods and services promised in a contract.

A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.

When contracts with customers require significant and complex integration, contain

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

goods or services which are highly interdependent or interrelated, or are goods or services which significantly modify or customize other promises in the contracts and, therefore, are not distinct, then the entire contract is accounted for as a single performance obligation.

For any contracts with multiple performance obligations, the contract’s transaction price is allocated to each performance obligation based on the estimated relative standalone selling price of each distinct good or service in the contract.

For product sales, each product sold to a customer typically represents a distinct performance obligation.

Performance obligations are satisfied at a point in time or over time.

The timing of satisfying the performance obligation is typically stipulated by the terms of the contract.

As of December 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 20.9 billion, of which approximately 64 % is expected to be recognized as revenue over the next two years .

As of March 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 22 billion, of which approximately 63 % is expected to be recognized as revenue over the next two years .

The remaining performance obligations expected to be recognized in revenue beyond two years primarily relate to large, multi-purpose construction contracts, which include services to be performed over the building's lifetime, with initial contract terms of 25 to 35 years.

6 unchanged sentences

The following table presents the location and amount of costs to obtain or fulfill a contract recorded in the Company's consolidated statements of financial position (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Other current assets $ 283 $ 265

1 unchanged sentence

Total $ 573 $ 556

During the three months ended December 31, 2024 and 2023, the C ompany recognized expense of $ 84 million and $ 57 million, respectively, related to costs to obtain or fulfill a contract.

There were no impairment losses recognized in the three months ended December 31, 2024 and 2023.

During the three months ended March 31, 2025 and 2024, the C ompany recognized expense of $ 91 million and $ 77 million, respectively, related to costs to obtain or fulfill a contract.

During the six months ended March 31, 2025 and 2024, the C om pany recognized expense of $ 175 million and $ 134 million, respectively, related to costs to obtain or fulfill a contract.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

Inventories consisted of the following (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Raw materials and supplies $ 718 $ 765

2 unchanged sentences

Inventories $ 1,756 $ 1,774

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes changes in the carrying amount of goodwill in each of the Company’s reportable segments (in millions):

Three Months Ended December 31, 2024

Six Months Ended March 31, 2025

Building Solutions North America Building Solutions EMEA/LA Building Solutions Asia Pacific Global Products Total

2 unchanged sentences

Balance at beginning of period 9,391 1,762 1,227 4,345 16,725

Foreign currency translation ( 41 ) ( 107 ) ( 84 ) ( 81 ) ( 313 )

Foreign currency translation and other ( 38 ) ( 43 ) ( 76 ) ( 59 ) ( 216 )

Balance at end of period $ 9,353 $ 1,719 $ 1,151 $ 4,286 $ 16,509

Other intangible assets, primarily from business acquisitions, consisted of (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Amount Accumulated

10 unchanged sentences

Total intangible assets $ 6,980 $ ( 3,097 ) $ 3,883 $ 7,082 $ ( 2,952 ) $ 4,130

Amortization of other intangible assets included within continuing operations for the three months ended December 31, 2024 and 2023 was $ 120 million and $ 119 million, respectively.

Amortization of other intangible assets included within continuing operations for the three months ended March 31, 2025 and 2024 was $ 112 million and $ 122 million, respectively.

Amortization of other intangible assets included within continuing operations for the six months ended March 31, 2025 and 2024 was $ 232 million and $ 241 million, respectively.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

The following table presents supplemental consolidated statement of financial position information (in millions):

Location of lease balances December 31, 2024 September 30, 2024

Location of lease balances March 31, 2025 September 30, 2024

Operating lease right-of-use assets Other noncurrent assets

3 unchanged sentences

The following table presents supplemental noncash operating lease activity (in millions):

Three Months Ended

Six Months Ended

Right-of-use assets obtained in exchange for operating lease liabilities $ 226 $ 129

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

DEBT AND FINANCING ARRANGEMENTS

Short-term debt consisted of the following (in millions):

December 31, September 30,

March 31, September 30,

Commercial paper $ 673 $ 350

1 unchanged sentence

Bank borrowings 1 —

$ 1,261 $ 953

Weighted average interest rate on short-term debt outstanding 3.8 % 4.8 %

As of December 31, 2024, the Company had two syndicated committed revolving credit facilities, including $ 2.5 billion which is scheduled to expire in December 2028 and $ 500 million which is scheduled to expire in December 2025.

There were no draws on the facilities as of December 31, 2024.

As of March 31, 2025, the Company had two syndicated committed revolving credit facilities, including $ 2.5 billion which is scheduled to expire in December 2028 and $ 500 million which is scheduled to expire in December 2025.

There were no draws on the facilities as of March 31, 2025.

In February 2025, the Company repaid € 476 million of its 1.375 % Notes due 2025 and extinguished $ 7 million of its 5.125 % Notes due 2045 through a bilateral private purchase.

In December 2024, the Company and its wholly-owned subsidiary, Tyco Fire & Security Finance S.C.A, co-issued the following unsecured, unsubordinated senior notes:

• $ 250 million 4.900 % Senior Notes due December 2032.

• $ 250 million 4.900 % Senior Notes due 2032.

These notes are a further issuance of the $ 400 million, 4.900 % Senior Notes due 2032, which were originally issued in September 2022.

• € 500 million 3.125 % Senior Notes due December 2033.

• € 500 million 3.125 % Senior Notes due 2033.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

1 unchanged sentence

The Company has global operations and participates in foreign exchange markets to minimize its risk of loss from fluctuations in foreign currency exchange rates.

The Company selectively hedges anticipated transactions that are subject to foreign exchange rate risk primarily using foreign currency exchange forward contracts.

The Company selectively hedges anticipated transactions that are subject to

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

foreign exchange rate risk primarily using foreign currency exchange forward contracts.

The Company hedges 70 % to 90 % of the notional amount of each of its known foreign exchange transactional exposures.

2 unchanged sentences

The maturities of the commodity hedge contracts coincide with the expected purchase of the commodities.

As cash flow hedges under ASC 815, "Derivatives and Hedging," the hedge gains or losses due to changes in fair value are initially recorded as a component of accumulated other comprehensive income ("AOCI") and are subsequently reclassified into earnings when the hedged transactions occur and affect earnings.

These contracts were highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates and commodity prices during the three months ended December 31, 2024 and 2023.

Under ASC 815, "Derivatives and Hedging," cash flow hedge gains or losses due to changes in fair value are initially recorded as a component of accumulated other comprehensive income ("AOCI") and are subsequently reclassified into earnings when the hedged transactions occur and affect earnings.

These contracts were highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates and commodity prices during the three and six months ended March 31, 2025 and 2024.

The Company had the following outstanding contracts to hedge forecasted commodity purchases (in metric tons):

Volume Outstanding as of

Commodity December 31, 2024 September 30, 2024

Commodity March 31, 2025 September 30, 2024

Copper 2,313 2,676

Aluminum 2,289 2,450

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

The Company may enter into forward-starting interest rate swaps in conjunction with anticipated note issuances to manage exposure to interest rate changes.

The forward-starting interest swaps are terminated when the anticipated notes are issued.

As of December 31, 2023, $ 600 million of forward-starting interest swaps were outstanding on an $ 800 million anticipated note issuance which was subsequently terminated in fiscal 2024 once the note issuance was no longer highly likely to occur.

Accumulated amounts previously recorded in AOCI were not material and were recognized as net financing charges in the consolidated statements of income when the swaps were terminated.

Net Investment Hedges

3 unchanged sentences

The following table summarizes net investment hedges (in billions):

December 31, September 30,

March 31, September 30,

Euro-denominated bonds designated as net investment hedges in Europe € 2.9 € 2.9

5 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

Fair Value of Derivative Instruments

4 unchanged sentences

as Hedging Instruments

December 31, September 30, December 31, September 30,

March 31, September 30, March 31, September 30,

2025 2024 2025 2024

1 unchanged sentence

Foreign currency exchange derivatives $ 22 $ 19 $ — $ 1

Interest rate swaps — 2 — —

Commodity derivatives 4 2 — —

Total assets $ 26 $ 21 $ — $ 1

18 unchanged sentences

Fair Value of Assets Fair Value of Liabilities

December 31, September 30, December 31, September 30,

March 31, September 30, March 31, September 30,

2025 2024 2025 2024

4 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

Derivatives Impact on the Statements of Income and Statements of Comprehensive Income

1 unchanged sentence

Derivatives in Cash Flow

Hedging Relationships Three Months Ended December 31,

Hedging Relationships Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

Foreign currency exchange derivatives $ ( 2 ) $ 15 $ 15 $ 2

4 unchanged sentences

Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from AOCI into Income Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Foreign currency exchange derivatives Cost of sales $ 2 $ ( 2 ) $ 3 $ ( 3 )

4 unchanged sentences

Recognized in Income on Derivative Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Foreign currency exchange derivatives Cost of sales $ ( 1 ) $ 2 $ ( 8 ) $ ( 3 )

4 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Net investment hedges $ ( 131 ) $ 98 $ 107 $ ( 47 )

No gains or losses were reclassified from CTA into income during the three months ended December 31, 2024 and 2023.

No gains or losses were reclassified from CTA into income during the three and six months ended March 31, 2025 and 2024.

FAIR VALUE MEASUREMENTS

4 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs, other than quoted prices in active markets, that are observable either directly or indirectly;

5 unchanged sentences

Fair Value Measurements Using:

December 31, 2024 Quoted Prices

March 31, 2025 Quoted Prices

(Level 1) Significant

2 unchanged sentences

Foreign currency exchange derivatives $ 22 $ — $ 22 $ —

Commodity derivatives 4 — 4 —

Other noncurrent assets

5 unchanged sentences

Foreign currency exchange derivatives $ 36 $ — $ 36 $ —

Commodity derivatives 3 — 3 —

Contingent earn-out liabilities 27 — — 27

Other noncurrent liabilities

Contingent earn-out liabilities 14 — — 14

Total liabilities $ 63 $ — $ 36 $ 27

3 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

Fair Value Measurements Using:

35 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

The following table presents the portion of unrealized gains (losses) recognized in the consolidated statements of income that relate to equity securities still held at December 31, 2024 and 2023 (in millions):

Three Months Ended December 31,

March 31, 2025

The following table presents the portion of unrealized gains (losses) recognized in the consolidated statements of income that relate to equity securities still held at March 31, 2025 and 2024 (in millions):

Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

Deferred compensation plan assets $ ( 1 ) $ 3 $ ( 2 ) $ 7

1 unchanged sentence

The fair values of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values.

The fair value of long-term debt at December 31, 2024 and September 30, 2024 was as follows (in billions):

December 31, September 30,

The fair value of long-term debt at March 31, 2025 and September 30, 2024 was as follows (in billions):

March 31, September 30,

Public debt $ 8.0 $ 8.1

6 unchanged sentences

Three Months Ended

Income Available to Ordinary Shareholders

Income from continuing operations $ 363 $ 340

March 31, Six Months Ended

2025 2024 2025 2024

Income (Loss) Available to Ordinary Shareholders

Income (loss) from continuing operations $ 473 $ ( 321 ) $ 836 $ 19

Income from discontinued operations 5 44 61 78

Basic and diluted income available to shareholders $ 419 $ 374

Basic and diluted income (loss) available to shareholders $ 478 $ ( 277 ) $ 897 $ 97

Weighted Average Shares Outstanding

6 unchanged sentences

Stock options and unvested restricted stock 0.1 — 0.1 0.5

For the three months ended March 31, 2024, the total number of potential dilutive shares due to stock options, unvested restricted stock and unvested performance share awards was 1.6 million.

However, these items were not included in the computation of diluted loss per share for the three months ended March 31, 2024 since to do so would decrease the loss per share.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

1 unchanged sentence

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Foreign currency translation adjustments

6 unchanged sentences

Reclassification to income (1)

( 1 ) 3 ( 2 ) 7

Net tax impact — ( 3 ) ( 1 ) ( 2 )

3 unchanged sentences

Reclassification to income ( 1 ) ( 2 ) ( 2 ) ( 3 )

Net tax impact — 1 — 1

Balance at end of period ( 6 ) ( 2 ) ( 6 ) ( 2 )

7 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Interest cost $ 17 $ 19 $ 33 $ 39

3 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

March 31, 2025

Pension Plans

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Service cost $ 4 $ 4 $ 8 $ 8

4 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Interest cost $ — $ 1 $ 1 $ 2

10 unchanged sentences

The following table summarizes restructuring and related costs (in millions):

Three Months Ended December 31, 2024

Three Months Ended March 31, 2025 Six Months Ended March 31, 2025

Building Solutions North America $ 4 $ 10

2 unchanged sentences

Global Products 4 13

Corporate 23 28

Total $ 40 $ 73

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

The following table summarizes changes in the current restructuring reserve, which is included within other current liabilities in the consolidated statements of financial position (in millions):

Employee Severance and Termination Benefits Long-Lived Asset Impairments Total

March 31, 2025

The following table summarizes changes in the reserve under the Company's restructuring plan announced in the fourth quarter of fiscal 2024, which is included within other current liabilities in the consolidated statements of financial position (in millions):

Employee Severance and Termination Benefits Long-Lived Asset Impairments Other Total

Restructuring and related costs $ 44 $ 11 $ 18 $ 73

1 unchanged sentence

Utilized—noncash — ( 11 ) — ( 11 )

Balance at December 31, 2024

Other — — 2 2

Balance at March 31, 2025

$ 20 $ — $ 8 $ 28

The following table summarizes changes in the previous restructuring reserve, which is included within other current liabilities in the consolidated statements of financial position (in millions):

The following table summarizes changes in the previous restructuring plan reserve, which is included within other current liabilities in the consolidated statements of financial position (in millions):

Employee Severance and Termination Benefits Other Total

1 unchanged sentence

Utilized—cash ( 40 ) — ( 40 )

Balance at December 31, 2024 $ 31 $ 18 $ 49

Balance at March 31, 2025 $ 18 $ 18 $ 36

In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known at each interim period.

1 unchanged sentence

The statutory tax rate in Ireland is being used as a comparison since the Company is domiciled in Ireland.

For the three months ended December 31, 2024, the Company's effective tax rate for continuing operations was 11.5 % and was lower than the statutory tax rate of 12.5 % primarily due to the benefits of continuing global tax planning, partially offset by tax rate differentials.

For the three months ended December 31, 2023, the Company's effective tax rate for continuing operations was ( 6.3 )% and was lower than the statutory tax rate of 12.5 % primarily due to Swiss tax reform and the benefits of continuing global tax planning, partially offset by the establishment of a deferred tax liability on the outside basis difference of the Company's investment in certain consolidated subsidiaries and tax rate differentials.

For the three months ended March 31, 2025, the Company's effective tax rate for continuing operations was 5.2 % and was lower than the statutory tax rate of 12.5 % primarily due to tax reserve adjustments as the result of expired statute of limitations for certain tax years and the benefits of continuing global tax planning, partially offset by tax rate differentials.

For the six months ended March 31, 2025, the Company's effective tax rate was 8.0 % and was lower than the statutory tax rate of 12.5 % primarily due to tax reserve adjustments as the result of expired statute of limitations for certain tax years and the benefits of continuing global tax planning, partially offset by tax rate differentials.

For the three months ended March 31, 2024, the Company's effective tax rate for continuing operations was 32.5 % and was higher than the statutory tax rate of 12.5 % primarily due to the tax impact of an impairment charge and tax rate differentials, partially offset by the tax impact of the water systems Aqueous Film Forming Foam ("AFFF") settlement costs and the benefits of continuing global tax planning.

For the six months ended March 31, 2024, the Company's effective tax rate was 114.6 % and was higher than the statutory tax rate of 12.5 % primarily due to the tax impact of an impairment charge, the establishment of a deferred tax liability on the outside basis difference of the Company's investment in certain consolidated subsidiaries, and tax rate differentials,

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

partially offset by the tax impact of the water systems AFFF settlement costs, Swiss tax reform, and the benefits of continuing global tax planning.

Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further disclosure related to the water systems AFFF settlement.

Uncertain Tax Positions

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Accrued interest, net at September 30, 2024 was approximately $ 398 million (net of tax benefit).

Interest accrued during the three months ended December 31, 2024 and 2023 was approximately $ 28 million and $ 30 million (both net of tax benefit), respectively.

Interest accrued during the six months ended March 31, 2025 and 2024 was approximately $ 54 million and $ 59 million (both net of tax benefit), respectively.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

During the three months ended March 31, 2025, as the result of the expiration of the statute of limitations in certain jurisdictions, the Company adjusted its reserve for uncertain tax positions which resulted in a $ 36 million net benefit to income tax expense.

In the U.S., fiscal years 2019 through 2020 are currently under audit and fiscal years 2017 through 2018 are currently under appeal with the Internal Revenue Service (“IRS”) for certain legal entities.

18 unchanged sentences

The IMTM increased Switzerland's combined statutory income tax rate to approximately 15 %.

As a result, in the three months ended December 31, 2023, the Company recorded a noncash discrete net tax benefit of $ 80 million due to the remeasurement of deferred tax assets and liabilities related to Switzerland and the canton of Schaffhausen.

As a result, in the six months ended March 31, 2024, the Company recorded a noncash discrete net tax benefit of $ 80 million due to the remeasurement of deferred tax assets and liabilities related to Switzerland and the canton of Schaffhausen.

SEGMENT INFORMATION

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• Building Solutions EMEA/LA which operates in Europe, the Middle East, Africa and Latin America;

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

• Building Solutions Asia Pacific which operates in Asia Pacific;

8 unchanged sentences

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

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

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

Management evaluates the performance of its segments primarily on segment earnings before interest, taxes and amortization ("EBITA"), which represents income from continuing operations before income taxes and noncontrolling interests, excluding corporate expenses, amortization of intangible assets, restructuring and impairment costs, the water systems AFFF settlement costs and insurance recoveries, net mark-to-market gains and losses related to pension and postretirement plans and restricted asbestos investments, and net financing charges.

On April 1, 2025, the Company, as part of ongoing initiatives to drive simplification, accelerate growth, better reflect its organizational and operational structure and align with the manner in which the Company's chief operating decision maker assesses performance and makes decisions regarding the allocation of resources following portfolio simplification actions, realigned into three reporting segments (Americas, EMEA and APAC) from four reporting segments (Global Products, Building Solutions North America, Building Solutions EMEA/LA and Building Solutions APAC).

The Company will begin reporting under this segment structure when it reports its quarterly results for the fiscal third quarter ending June 30, 2025.

Financial information relating to the Company’s reportable segments is as follows (in millions):

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Building Solutions North America $ 2,916 $ 2,739 $ 5,660 $ 5,226

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Total net sales $ 5,676 $ 5,597 $ 11,102 $ 10,806

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

Segment EBITA

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Building Solutions North America $ 390 $ 373 $ 722 $ 658

6 unchanged sentences

Restructuring and impairment costs 62 239 95 274

Water systems AFFF settlement (1)

Water systems AFFF insurance recoveries (1)

( 8 ) — ( 12 ) —

Net mark-to-market losses (gains) 13 ( 15 ) 14 ( 37 )

Net financing charges 80 89 166 176

Income before income taxes $ 408 $ 320

Income (loss) before income taxes $ 501 $ ( 471 ) $ 909 $ ( 151 )

(1) Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further disclosure related to the water systems AFFF settlement.

Certain of the Company's subsidiaries at the business segment level guarantee the performance of third parties and provide financial guarantees for uncompleted work and financial commitments.

The terms of these guarantees vary with end dates ranging from the current fiscal year through the completion of such transactions and would typically be triggered in the

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

event of nonperformance.

The terms of these guarantees vary with end dates ranging from the current fiscal year through the completion of such transactions and would typically be triggered in the event of nonperformance.

Performance under the guarantees, if required, would not have a material effect on the Company's financial position, results of operations or cash flows.

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Currency translation ( 2 )

Balance at December 31, 2024 $ 115

Balance at March 31, 2025 $ 119

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

COMMITMENTS AND CONTINGENCIES

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The following table presents the location and amount of reserves for environmental liabilities in the Company's consolidated statements of financial position (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Other current liabilities $ 25 $ 32

6 unchanged sentences

(“Tyco Fire Products”) Fire Technology Center ("FTC") located in Marinette, Wisconsin and surrounding areas in the City of Marinette and Town of Peshtigo, Wisconsin, as well as the continued remediation of PFAS, arsenic and other contaminants at the Tyco Fire Products Stanton Street manufacturing facility also located in Marinette, Wisconsin (the “Stanton Street Facility”).

During the three months ended June 30, 2024, Tyco Fire Products completed its previously announced plan to discontinue the production and sale of fluorinated firefighting foams, including AFFF products, and has transitioned to non-fluorinated foam alternatives.

PFOA, PFOS, and other PFAS compounds are being studied by the U.S.

Environmental Protection Agency ("EPA") and other environmental and health agencies and researchers.

In March 2021, EPA published its final determination to regulate

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

PFOS and PFOA in drinking water.

On April 10, 2024, EPA announced the final National Primary Drinking Water Regulation (“NPDWR”) for six PFAS compounds including PFOA and PFOS.

In April 2024, EPA published National Primary Drinking Water Regulation (“NPDWR”) for six PFAS compounds including PFOA and PFOS.

The NPDWR established legally enforceable levels, called Maximum Contaminant Levels, of 4.0 parts per trillion ("ppt") for each of PFOA and PFOS, 10 ppt for each of PFHxS, PFNA, and HFPO-DA (commonly known as GenX Chemicals), and a Hazard Index of one for mixtures containing two or more of PFHxS, PFNA, HFPO-DA, and PFBA.

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one rule proposes to list nine PFAS (including PFOA and PFOS) as “hazardous constituents,” and a second rule proposes to clarify that hazardous waste regulated under the rule includes not only substances listed or identified as hazardous waste in the regulations, but also any substances that meet the statutory definition of hazardous waste.

In August 2022, EPA published a proposed rule that would designate PFOA and PFOS as “hazardous substances” under Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA").

In April 2023, EPA issued an Advanced Notice of Proposed Rulemaking ("ANPR") seeking input on whether it should expand the proposed rule to designate as "hazardous substances" under CERCLA:

(1) seven additional PFAS;

(2) the precursors to PFOA, PFOS, and the seven additional PFAS;

or (3) entire categories of PFAS.

On April 17, 2024, the EPA Administrator signed the final rule designating PFOA and PFOS, along with their salts and structural isomers, as “hazardous substances.”

In April 2024, EPA finalized a rule designating PFOA and PFOS, along with their salts and structural isomers, as "hazardous substances" under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA").

It is not possible to estimate the Company’s ultimate level of liability at many remediation sites due to the large number of other parties that may be involved, the complexity of determining the relative liability among those parties, the financial viability of other potentially responsible parties and third-party indemnitors, the uncertainty as to the nature and scope of the investigations and remediation to be conducted, changes in environmental regulations, changes in permissible levels of specific compounds in soil, groundwater and drinking water sources, or changes in enforcement theories and policies, including efforts to recover natural resource damages, the uncertainty in the application of law and risk assessment, the various choices and costs associated with diverse technologies that may be used in corrective actions at the sites, and the often quite lengthy periods over which eventual remediation may occur.

It is possible that technological, regulatory or enforcement developments, the results of additional environmental studies or other factors could change the Company's expectations with respect to future charges and cash outlays, and such changes could be material to the Company's future results of operations, financial condition or cash flows.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

results of operations, financial condition or cash flows.

Nevertheless, the Company does not currently believe that any claims, penalties or costs in addition to the amounts accrued will have a material adverse effect on the Company’s financial position, results of operations or cash flows.

In addition, the Company has identified asset retirement obligations for environmental matters that are expected to be addressed at the retirement, disposal, removal or abandonment of existing owned facilities.

Conditional asset retirement obligations were $ 7 million at both December 31, 2024 and September 30, 2024.

Conditional asset retirement obligations were $ 7 million at both March 31, 2025 and September 30, 2024.

FTC-Related Matters

FTC Remediation

FTC and Stanton Street Remediation

The use of fire-fighting foams at the FTC was primarily for training and testing purposes to ensure that such products sold by the Company’s affiliates, Chemguard, Inc.

("Chemguard") and Tyco Fire Products, were effective at suppressing high intensity fires that may occur at military installations, airports or elsewhere.

Tyco Fire Products has been engaged in remediation activities at the Stanton Street Facility since 1990.

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Under this agreement, Tyco Fire Products’ principal obligations are to contain the arsenic contamination on the site, pump and treat on-site groundwater, dredge, treat and properly dispose of contaminated sediments in the adjoining river areas, and monitor contamination levels on an ongoing basis.

Activities completed under the Consent Order since 2009 include the installation of a subsurface barrier wall around the facility to contain contaminated groundwater, the installation and ongoing operation and monitoring of a groundwater extraction and

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

treatment system and the dredging and offsite disposal of treated river sediment.

In addition to ongoing remediation activities, the Company is also working with the Wisconsin Department of Natural Resources ("WDNR") to investigate and remediate the presence of PFAS at or near the Stanton Street Facility as part of the evaluation and remediation of PFAS in the Marinette region.

1 unchanged sentence

Tyco Fire Products has also completed the removal and disposal of PFAS-affected soil from the FTC.

The Company is also continuing to replace private drinking water wells that may have been impacted by PFAS migrating from the FTC.

The Company's reserves for continued remediation of the FTC, the Stanton Street Facility and surrounding areas in Marinette and Peshtigo are based on estimates of costs associated with the long-term remediation actions, including the continued operation of the GETS, the implementation of long-term drinking water solutions for the area impacted by groundwater migrating from the FTC, continued monitoring and testing of groundwater monitoring wells, the operation and wind-down of other legacy remediation and treatment systems and the completion of ongoing investigation obligations.

FTC-Related Litigation

On June 21, 2019, the WDNR announced that it had received from the Wisconsin Department of Health Services (“WDHS”) a recommendation for groundwater quality standards as to, among other compounds, PFOA and PFOS.

The WDHS recommended a groundwater enforcement standard for PFOA and PFOS of 20 parts per trillion.

Although Wisconsin approved final regulatory standards for PFOA and PFOS in drinking water and surface water in February 2022, the Wisconsin Natural Resources Board did not approve WDNR's proposed standards for PFOA and PFOS in groundwater.

Wisconsin approved final regulatory standards for PFOA and PFOS in drinking water and surface water in February 2022.

In August 2024, WDNR issued a new proposed rule to adopt the EPA Maximum Contaminant Levels for PFAS in drinking water.

The WDNR initiated a rulemaking proceeding that would establish groundwater quality standards for PFOA, PFOS, perfluorobutane sulfonic acid and its potassium salt (“PFBS”) and hexafluoropropylene oxide dimer acid and its ammonium salt (“HFPO-DA”).

Pursuant to state law, the WDNR has stopped work on the proposed rule and notified the state legislature that, following economic analysis, the proposed costs would exceed statutory thresholds.

As a result, the state legislature is required to authorize the WDNR to allow the rulemaking to continue.

In February 2025, the Wisconsin Department of Health Services ("WDHS") recommended individual groundwater enforcement standards of 4 ng/L for PFOA and PFOS, 10 ng/L for PFHxS, PFNA, and HFPO-DA, and 2,000 ng/L for PFBS.

Following the February 2025 WDHS recommendation, the WDNR Secretary and the Governor signed the WDNR scope statement and WDNR is in the early stages of rule development for enforcement standards for these six PFAS constituents.

In July 2019, the Company received a letter from the WDNR directing the expansion of the evaluation of PFAS in the Marinette region to include (1) biosolids sludge produced by the City of Marinette Waste Water Treatment Plant and spread on certain fields in the area and (2) the Menominee and Peshtigo Rivers.

On October 16, 2019, the WDNR issued a “Notice of Noncompliance” to Tyco Fire Products and Johnson Controls, Inc.

On October 16, 2019, the WDNR issued a

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

“Notice of Noncompliance” to Tyco Fire Products and Johnson Controls, Inc.

regarding the WDNR’s July 2019 letter.

The WDNR issued a further letter regarding the issue on November 4, 2019.

In February 2020, the WDNR sent a letter to Tyco Fire Products and Johnson Controls, Inc.

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The Court has continued the trial previously scheduled for March 3, 2025 and has not yet set a new trial date.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

In October 2022, the Town of Peshtigo filed a tort action in Wisconsin state court against Tyco Fire Products, Johnson Controls Inc., Chemguard, Inc., and ChemDesign, Inc.

17 unchanged sentences

Plaintiffs generally seek compensatory damages, including damages for alleged personal injuries, medical monitoring, diminution in property values, investigation and remediation costs, and natural resources damages, and also seek punitive damages and injunctive relief to address remediation of the alleged contamination.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

In September 2018, Tyco Fire Products and Chemguard filed a Petition for Multidistrict Litigation with the United States Judicial Panel on Multidistrict Litigation (“JPML”) seeking to consolidate all existing and future federal cases into one jurisdiction.

6 unchanged sentences

Tyco Fire Products and Chemguard are also periodically notified by other municipal entities that those entities may assert claims regarding PFOS and/or PFOA contamination allegedly resulting from the use of AFFF.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

Water Systems AFFF Settlement Agreement

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The settlement does not constitute an admission of liability or wrongdoing by Tyco Fire Products or Chemguard.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

AFFF Putative Class Actions

1 unchanged sentence

All of these cases have been direct-filed in or transferred to the MDL.

In addition, six proposed class actions were filed in Canada (British Columbia, Manitoba, Quebec and Ontario) in the past year, which name Tyco Fire Products and other manufacturers as defendants, on behalf of various classes of members (including individuals and government entities) who seek to recover for remediation (past and future) costs, claim property or other environmental damages, or claim personal injuries or other harms arising from alleged exposure to or contamination with PFAS or PFAS-containing products (including AFFF).

In addition, six proposed class actions were filed in Canada (British Columbia, Manitoba, Quebec and Ontario), which name Tyco Fire Products and other manufacturers as defendants, on behalf of various classes of members (including individuals and government entities) who seek to recover for remediation (past and future) costs, claim property or other environmental damages, or claim personal injuries or other harms arising from alleged exposure to or contamination with PFAS or PFAS-containing products (including AFFF).

AFFF Individual or Mass Actions

1 unchanged sentence

The cases involve plaintiffs from various states including approximately 7,000 plaintiffs in Colorado and more than 7,510 other plaintiffs.

The decrease in individual actions during the three months ended March 31, 2025 reflect a court order establishing a dismissal process for cases that do not involve certain types of personal injuries.

The vast majority of these matters have been tagged for transfer to, transferred to, or directly-filed in the MDL, and it is anticipated that several newly-filed state court actions will be similarly tagged and transferred.

1 unchanged sentence

Tyco and Chemguard are also periodically notified by other individuals that they may assert claims regarding PFOS and/or PFOA contamination allegedly resulting from the use of AFFF.

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

AFFF State or U.S.

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The State’s case has been removed to federal court and transferred to the MDL.

The State of Alaska has also named a number of manufacturers and other defendants, including affiliates of the Company, as third-party defendants in two cases brought by individuals against the State.

The State of Alaska has also named a

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

number of manufacturers and other defendants, including affiliates of the Company, as third-party defendants in two cases brought by individuals against the State.

These two cases have also been transferred to the MDL.

8 unchanged sentences

Other AFFF Related Matters

In March 2020, the Kalispel Tribe of Indians (a federally recognized Tribe) and two tribal corporations filed a lawsuit in the United States District Court for the Eastern District of Washington against a number of manufacturers, including affiliates of the Company, and the United States with respect to PFAS contamination allegedly resulting from the use and

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

disposal of AFFF by the United States Air Force at and around Fairchild Air Force Base in eastern Washington.

This case has been transferred to the MDL.

10 unchanged sentences

These cases have typically involved product liability claims based primarily on allegations of manufacture, sale or distribution of industrial products that either contained asbestos or were used with asbestos containing components.

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

The following table presents the location and amount of asbestos-related assets and liabilities in the Company's consolidated statements of financial position (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Other current liabilities $ 58 $ 58

5 unchanged sentences

Net asbestos-related liabilities $ 88 $ 74

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

The following table presents the components of asbestos-related assets (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Investments 262 281

12 unchanged sentences

The following table presents the location and amount of self-insured liabilities in the Company's consolidated statements of financial position (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Other current liabilities $ 99 $ 92

2 unchanged sentences

Total self-insured liabilities $ 370 $ 351

Johnson Controls International plc

Notes to Consolidated Financial Statements

March 31, 2025

The following table presents the location and amount of insurance receivables in the Company's consolidated statements of financial position (in millions):

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Other current assets $ 5 $ 5

1 unchanged sentence

Total insurance receivables $ 18 $ 18

Johnson Controls International plc

Notes to Consolidated Financial Statements

December 31, 2024

Other Matters

3 unchanged sentences

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-Q

Item 1. Financial Statements