Name: Johnson Controls International plc (NYSE:JCI) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Johnson Controls International plc, consolidated income statement

US$ in millions

12 months ended:	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018
Products and systems	20,251)	19,274)	17,202)	16,253)	17,711)	25,332)
Services	6,542)	6,025)	6,466)	6,064)	6,257)	6,068)
Net sales	26,793)	25,299)	23,668)	22,317)	23,968)	31,400)
Products and systems	(14,031)	(13,533)	(11,848)	(11,401)	(12,577)	(18,602)
Services	(3,791)	(3,423)	(3,761)	(3,505)	(3,698)	(3,418)
Cost of sales	(17,822)	(16,956)	(15,609)	(14,906)	(16,275)	(22,020)
Gross profit	8,971)	8,343)	8,059)	7,411)	7,693)	9,380)
Selling, general and administrative expenses	(6,181)	(5,945)	(5,258)	(5,665)	(6,244)	(6,010)
Restructuring and impairment costs	(1,064)	(721)	(242)	(783)	(235)	(263)
Operating income	1,726)	1,677)	2,559)	963)	1,214)	3,107)
Interest expense, net of capitalized interest costs	(307)	(225)	(219)	(240)	(335)	(437)
Other financing charges	(52)	(27)	(25)	(26)	(28)	(58)
Gain (loss) on debt extinguishment	25)	—)	—)	—)	(60)	—)
Interest income	18)	6)	9)	23)	61)	29)
Net foreign exchange results for financing activities	35)	33)	29)	12)	12)	25)
Net financing charges	(281)	(213)	(206)	(231)	(350)	(441)
Equity income	265)	246)	261)	171)	192)	235)
Income from continuing operations before income taxes	1,710)	1,710)	2,614)	903)	1,056)	2,901)
Income tax (provision) benefit	323)	13)	(868)	(108)	233)	(518)
Income from continuing operations	2,033)	1,723)	1,746)	795)	1,289)	2,383)
Income from discontinued operations, net of tax	—)	—)	124)	—)	4,598)	—)
Net income	2,033)	1,723)	1,870)	795)	5,887)	2,383)
Income attributable to noncontrolling interests	(184)	(191)	(233)	(164)	(213)	(221)
Net income attributable to Johnson Controls	1,849)	1,532)	1,637)	631)	5,674)	2,162)

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

Financial performance between 2018 and 2023 indicates a significant structural shift in revenue scale followed by a period of steady recovery. Net sales experienced a sharp decline from $31.4 billion in 2018 to a trough of $22.3 billion in 2020, subsequently climbing to $26.79 billion by September 30, 2023. This trend is primarily driven by the Products and systems segment, which saw a substantial contraction between 2018 and 2019 before beginning a consistent upward trajectory. In contrast, the Services segment remained remarkably stable, fluctuating within a narrow range between $6.02 billion and $6.54 billion throughout the six-year period.

Profitability and Margin Trends: Gross profit mirrored the trajectory of net sales, declining from $9.38 billion in 2018 to $7.41 billion in 2020, before recovering to $8.97 billion in 2023. Despite the recovery in gross profit, operating income has not returned to 2018 levels. Operating income fell from $3.1 billion in 2018 to a low of $963 million in 2020, peaking again in 2021 at $2.55 billion before stabilizing between $1.67 billion and $1.72 billion in the final two years.
Operating Expense Analysis: Selling, general and administrative expenses remained relatively consistent, ranging from $5.25 billion to $6.24 billion. However, restructuring and impairment costs introduced significant volatility into the operating results. These costs peaked in 2023 at $1.06 billion, a substantial increase from the $235 million to $263 million range observed in 2018 and 2019, which placed downward pressure on operating margins in the later years.
Financing and Tax Impacts: Net financing charges showed a general downward trend from $441 million in 2018 to a low of $206 million in 2021, though expenses rose again to $281 million by 2023. Income tax provisions were highly inconsistent, with the company recording tax benefits in 2019, 2022, and 2023, which helped bolster the net income from continuing operations during those periods.
Net Income and Discontinued Operations: Net income attributable to Johnson Controls was heavily influenced by non-recurring items. A significant anomaly occurred in 2019, where net income reached $5.67 billion due to $4.59 billion in income from discontinued operations. Excluding this one-time event, the income from continuing operations reflects a recovery pattern, moving from $795 million in 2020 to $2.03 billion in 2023.

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