Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Johnson Controls International plc, consolidated cash flow 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
Net income attributable to Johnson Controls	1,849)	1,532)	1,513)	631)	1,100)	2,162)
Income attributable to noncontrolling interests	184)	191)	233)	164)	189)	221)
Net income	2,033)	1,723)	1,746)	795)	1,289)	2,383)
Depreciation and amortization	848)	830)	845)	822)	825)	1,085)
Pension and postretirement benefit (income) expense	61)	(216)	(551)	118)	515)	(156)
Pension and postretirement contributions	(57)	(96)	(68)	(61)	(53)	(57)
Equity in earnings of partially-owned affiliates, net of dividends received	(98)	30)	(117)	(36)	(34)	(166)
Deferred income taxes	(676)	(141)	36)	(537)	612)	(636)
Non-cash restructuring and impairment charges	827)	555)	98)	582)	235)	42)
Gain on Scott Safety business divestiture	—)	—)	—)	—)	—)	(114)
Equity-based compensation expense	111)	102)	76)	74)	95)	115)
Other, net	(123)	(58)	(85)	(90)	29)	(48)
Accounts receivable	(168)	(427)	(143)	534)	(312)	(513)
Inventories	(81)	(773)	(219)	45)	(72)	(92)
Other assets	(216)	(362)	(164)	(52)	(99)	26)
Restructuring reserves	59)	(7)	(44)	(29)	(121)	(8)
Accounts payable and accrued liabilities	(222)	1,270)	813)	(717)	56)	15)
Accrued income taxes	(77)	(440)	328)	1,031)	(1,222)	637)
Changes in assets and liabilities, excluding acquisitions and divestitures	(705)	(739)	571)	812)	(1,770)	65)
Adjustments to reconcile net income to cash provided by operating activities	188)	267)	805)	1,684)	454)	130)
Cash provided by operating activities from continuing operations	2,221)	1,990)	2,551)	2,479)	1,743)	2,513)
Capital expenditures	(539)	(592)	(552)	(443)	(586)	(1,030)
Sale of property, plant and equipment	32)	127)	124)	127)	27)	48)
Acquisition of businesses, net of cash acquired	(726)	(269)	(725)	(77)	(25)	(21)
Other, net	49)	41)	63)	135)	51)	2,218)
Cash (used) provided by investing activities from continuing operations	(1,184)	(693)	(1,090)	(258)	(533)	1,215)
Net proceeds (payments) from borrowings with maturities less than three months	(51)	379)	(18)	(33)	(1,296)	107)
Proceeds from debt	1,173)	1,771)	734)	1,804)	—)	1,136)
Repayments of debt	(1,555)	(184)	(744)	(1,386)	(2,333)	(3,729)
Stock repurchases and retirements	(625)	(1,441)	(1,307)	(2,204)	(5,983)	(300)
Payment of cash dividends	(980)	(916)	(762)	(790)	(920)	(954)
Proceeds from the exercise of stock options	42)	17)	178)	75)	171)	66)
Dividends paid to noncontrolling interests	(149)	(121)	(142)	(114)	(132)	(46)
Employee equity-based compensation withholding taxes	(37)	(51)	(33)	(34)	(31)	(43)
Other, net	8)	30)	(37)	(142)	5)	11)
Cash used by financing activities from continuing operations	(2,174)	(516)	(2,131)	(2,824)	(10,519)	(3,752)
Cash used by operating activities	—)	(4)	(64)	(260)	(541)	—)
Cash provided by investing activities	—)	—)	—)	—)	12,611)	—)
Cash used by financing activities	—)	—)	—)	(113)	(35)	—)
Cash provided (used) by discontinued operations	—)	(4)	(64)	(373)	12,035)	—)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(5)	(53)	116)	115)	(120)	(106)
Change in cash, cash equivalents and restricted cash held for sale	—)	—)	—)	—)	15)	9)
Increase (decrease) in cash, cash equivalents and restricted cash	(1,142)	724)	(618)	(861)	2,621)	(121)
Cash, cash equivalents and restricted cash at beginning of period	2,066)	1,342)	1,960)	2,821)	200)	321)
Cash, cash equivalents and restricted cash at end of period	924)	2,066)	1,342)	1,960)	2,821)	200)

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).

Net Income Trends: Net income attributable to the company exhibited a general downward trend from 2018 through 2020, declining from $2,162 million to $631 million. A recovery began in 2021, increasing to $1,849 million by 2023. Total net income followed a similar pattern, decreasing sharply through 2020 before increasing again in the two subsequent years, reaching $2,033 million in 2023. Income attributable to noncontrolling interests showed modest fluctuations but remained relatively stable compared to net income attributable to the company.
Depreciation, Amortization and Pension: Depreciation and amortization expenses decreased substantially from 2018 to 2019 but stabilized between 2020 and 2023, fluctuating narrowly around $820–$850 million. Pension and postretirement benefit expenses exhibited volatility, including income recognition in some years (notably in 2018 and 2021) and expenses in others, indicating varying pension-related charges and contributions over the period.
Non-Cash Charges and Other Adjustments: Non-cash restructuring and impairment charges increased markedly, peaking in 2023 at $827 million after previously rising and falling, indicating ongoing business restructuring initiatives. Equity-based compensation expense remained fairly consistent, with slight increases toward 2023. Other non-cash adjustments, including equity in earnings of partially-owned affiliates and deferred income taxes, showed significant variability, contributing to irregular adjustments in net income reconciliation.
Working Capital Components: Accounts receivable and inventories showed mixed and somewhat volatile trends, with occasional negative changes indicating possible collection challenges or inventory reductions. Accounts payable and accrued liabilities revealed large swings, with significant increases and decreases across years, reflecting possible changes in payment terms or supplier activity. Accrued income taxes also fluctuated considerably, likely reflecting changes in taxable income or tax planning strategies.
Operating Cash Flow: Cash provided by operating activities from continuing operations showed an upward trend with occasional declines, peaking in 2021 at $2,551 million and declining thereafter but remaining above $2 billion as of 2023. Adjustments to reconcile net income to operating cash flows were inconsistent, reflecting various noncash and working capital changes.
Investing Activities: Capital expenditures steadily declined from $1,030 million in 2018 to $539 million in 2023, indicating restrained investment in fixed assets. Proceeds from sales of property and equipment were generally stable but declined in 2023. Acquisition activity varied significantly, with large cash outflows in years such as 2021 and 2023, suggesting active portfolio management. Overall, cash used by investing activities from continuing operations tended to increase, indicating significant investment and acquisition activity.
Financing Activities: The company exhibited large repayments of debt in earlier years (2018–2020), shifting towards increased debt proceeds later, particularly in 2022, before a decline in 2023. Stock repurchases were substantial in earlier periods, peaking in 2019 with $5,983 million, and decreased markedly by 2023. Dividend payments to shareholders remained relatively stable with a slight upward trend. Cash used by financing activities was highest in 2019, reflecting repurchases and debt repayments, and reduced substantially after that, though still representing outflows in recent years.
Cash Position and Liquidity: The cash, cash equivalents, and restricted cash position showed volatility. After a significant increase in 2019, likely related to divestitures or other transactions, it declined gradually between 2020 and 2023, ending at $924 million, down from $2,066 million in 2022. This fluctuation in cash balances aligns with the variations seen in operating, investing, and financing cash flows and indicates dynamic liquidity management amid changing business activities.
Other Observations: Exchange rate effects on cash were relatively minor but consistently negative in recent years, reflecting modest currency headwinds. Restructuring reserves showed modest negative balances shifting to positive in 2023, possibly indicating release or utilization of reserves. Changes in assets and liabilities were volatile, contributing to the year-to-year variance in cash flow from operating activities.
Overall Summary: The financial data reveals a company undergoing active transformation and portfolio adjustments, as evidenced by restructuring charges, acquisition expenditures, and fluctuating working capital components. Profitability experienced a dip through 2020 followed by recovery. Operating cash flows remained robust despite volatility in working capital. Capital expenditures were moderated in recent years, while financing activities reflected a shift from heavy debt reduction and buybacks toward less aggressive cash outflows. The liquidity position is influenced by the interplay of these factors, demonstrating both challenges and responsive management actions to maintain financial stability.

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Johnson Controls International plc (NYSE:JCI)

Cash Flow Statement