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 closed on July 31, 2025 with net cash proceeds of approximately $5.0 billion after tax and transaction-related expenses. The R&LC HVAC business, which was previously reported in the Global Products segment prior to the Company's resegmentation, 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. Results of the business are presented in discontinued operations for all periods presented.

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


	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Net sales	$	1,369	$	1,333	$	3,404	$	3,320
Cost of goods sold	1,007		954		2,579		2,468
Gross profit	362		379		825		852
Selling, general and administrative expenses	212		195		584		562
Restructuring and impairment costs	12		3		21		22
Net financing charges	5		2		6		17
Equity income	77		75		211		196
Income from discontinued operations before income taxes	210		254		425		447
Provision for income taxes on discontinued operations	50		53		124		98
Income from discontinued operations, net of tax	160		201		301		349
Income from discontinued operations attributable to noncontrolling interest, net of tax	77		78		157		148
Income from discontinued operations	$	83	$	123	$	144	$	201


	June 30, 2025		September 30, 2024

Cash	$	2	$	5
Accounts receivable - net	751		592
Inventories	1,089		876
Other current assets	135		122
Current assets held for sale	1,977		1,595

Property, plant and equipment - net	808		793
Goodwill	1,195		1,182
Other intangible assets - net	98		96
Investments in partially-owned affiliates	769		949
Other noncurrent assets	198		190
Noncurrent assets held for sale	3,068		3,210
Total assets classified as held for sale	$	5,045	$	4,805




Accounts payable	$	1,083	$	917
Accrued compensation and benefits	101		113
Deferred revenue	125		84
Other current liabilities	339		317
Current liabilities held for sale	1,648		1,431


Pension and postretirement benefit obligations	27		28
Other noncurrent liabilities	362		377
Noncurrent liabilities held for sale	389		405
Total liabilities classified as held for sale	$	2,037	$	1,836

During the third quarter of fiscal 2025, the Company signed a definitive agreement to sell its ADT Mexico residential security business. The transaction is expected to close in the first quarter of fiscal 2026. The ADT Mexico business, which is reported in the EMEA segment, does not meet the criteria to be classified as discontinued operations as it does not represent a strategic shift in the Company's operations nor result in the exit of substantially all of its residential security businesses.

The Company determined that the assets and liabilities of the ADT Mexico business met the held for sale criteria during the third quarter of 2025. Accordingly, $122 million of assets and $23 million of liabilities associated with the ADT Mexico business were reclassified to held for sale in the consolidated balance sheet at June 30, 2025.

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 June 30, 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.