Summary
Johnson Controls International plc (JCI) presents its 2016 10-K, detailing significant strategic transformations during the fiscal year. The company completed its substantial combination with Tyco International plc in September 2016, a move intended to enhance its position in the building technologies and services sector. Furthermore, JCI completed the spin-off of its Automotive Experience business into Adient plc in October 2016, sharpening its focus on building and energy solutions. The report highlights the operational and financial integration challenges and opportunities presented by these major transactions, with a strong emphasis on aligning its portfolio for future growth in intelligent buildings and efficient energy solutions. Investors should note the significant shift in the company's structure and strategic direction as it integrates Tyco and divests non-core assets.
Financial Highlights
54 data points| Revenue | $20.84B |
| Cost of Revenue | $15.18B |
| Gross Profit | $5.65B |
| R&D Expenses | $158.00M |
| SG&A Expenses | $4.19B |
| Operating Income | $732.00M |
| Interest Expense | $293.00M |
| Net Income | -$868.00M |
| EPS (Basic) | $-1.30 |
| EPS (Diluted) | $-1.29 |
| Shares Outstanding (Basic) | 667.40M |
| Shares Outstanding (Diluted) | 672.60M |
Key Highlights
- 1Completed a significant combination with Tyco International plc on September 2, 2016, creating a more robust building solutions business.
- 2Spun off its Automotive Experience business into Adient plc on October 31, 2016, to focus on core building technologies and services.
- 3Reported a net loss attributable to Johnson Controls of $868 million for fiscal year 2016, impacted by significant merger, integration, and restructuring costs.
- 4Net sales for fiscal year 2016 were $37.7 billion, a slight increase of 1% over the prior year, driven by the Buildings and Power Solutions segments, partially offset by the Automotive Experience business and foreign currency impacts.
- 5Goodwill increased significantly to $23.4 billion, primarily due to the Tyco merger and the JCH joint venture.
- 6The company ended the fiscal year with a substantial debt load of $16.4 billion, largely reflecting financing for the Tyco acquisition.
- 7Restructuring and impairment costs totaled $620 million in fiscal year 2016, reflecting ongoing efforts to streamline operations.