8-KOther Events

Johnson Controls International plc 8-K Report, Corporate Update (Jun 12, 2020)

Filed June 12, 2020For Securities:JCI

Summary

Johnson Controls International plc (JCI) announced its intention to resume its previously announced share repurchase program, which was temporarily suspended due to financial market uncertainty stemming from the COVID-19 pandemic. The repurchase program is linked to the deployment of proceeds from the sale of its Power Solutions business and is set to recommence in the fourth quarter of fiscal year 2020. As of March 31, 2020, JCI had approximately $735 million remaining under its fiscal year 2020 repurchase plan and $3.1 billion under its overall authorization, providing significant capacity for share buybacks. This resumption signals increased confidence in the company's liquidity position and its commitment to returning capital to shareholders. Investors should note that repurchases are not obligated within a specific timeframe or amount and will be subject to market conditions and the company's discretion, including the potential use of Rule 10b5-1 plans. The company also includes a standard cautionary statement regarding forward-looking statements and the inherent risks and uncertainties associated with its business and the broader economic environment.

Key Highlights

  • 1Resumption of share repurchase program expected in Q4 FY2020.
  • 2Repurchases are tied to the deployment of proceeds from the Power Solutions sale.
  • 3Suspension was a precautionary measure due to COVID-19 related market uncertainty.
  • 4Approximately $735 million available under FY2020 program as of March 31, 2020.
  • 5Approximately $3.1 billion available under overall share repurchase authorization.
  • 6Purchases may occur via open market or Rule 10b5-1 plans.
  • 7No obligation to repurchase a specific amount or within a timeframe; subject to market conditions and company discretion.

Frequently Asked Questions

Johnson Controls is resuming its share repurchase program because it has enhanced its immediate liquidity resources and the company is moving forward with deploying proceeds from the sale of its Power Solutions business. The initial suspension was a precautionary measure due to financial market uncertainty related to the COVID-19 pandemic.

As of March 31, 2020, Johnson Controls had approximately $735 million remaining under its previously announced share repurchase program for fiscal year 2020, and approximately $3.1 billion remaining under its overall share repurchase authorization.

The company intends to begin repurchasing shares in the fourth quarter of its fiscal year 2020.

No, there is no obligation to repurchase any particular amount of shares within any specific timeframe. The manner, timing, and amount of any repurchases will be determined by the company based on an evaluation of share price and availability, general market conditions, and other factors. The authorization can be amended, suspended, or terminated at the company's discretion.