Johnson Controls(JCI)2024-11-19 15:50Financial Performance and Challenges - The Company experienced material cost increases during fiscal 2022 and portions of fiscal 2023 due to global inflation and supply chain disruptions, negatively impacting margins but leading to improved margins in fiscal 2023 and 2024 as supply chain issues eased [37]. - The Company anticipates fluctuations in commodity prices and availability in fiscal 2025, which could significantly affect its results of operations [37]. Health and Safety - In fiscal 2024, the Company reported a Total Recordable Incident Rate (TRIR) of 0.34 and a Lost Time Incident Rate (LTIR) of 0.13, reflecting its commitment to health and safety [54]. Talent Development and Diversity - The Company filled more than half of open management positions internally during fiscal 2024, indicating a strong focus on talent development [62]. - The Women in Leadership program saw a 162% increase in participation since its inception in 2022, with 28% of original cohort participants being promoted post-completion [66]. - The Company is actively engaged in diversity, equity, and inclusion initiatives, with Business Resource Groups (BRGs) supporting the attraction and development of diverse talent [60]. - The employee diversity statistics show that 77% of total employees are male and 23% are female, with 31% of U.S. employees identifying as minorities [70]. Learning and Development - In fiscal 2024, the Company offered nearly 225,000 learning activities, with over 1.17 million activities completed by more than 81,000 employees, averaging almost 20 hours of learning per employee [67]. Environmental Commitment - The Company continues to invest in its product portfolio to meet or exceed emerging emissions regulations and standards, reflecting its commitment to environmental compliance [44]. - The Company has made substantial investments in compliance with environmental laws, which are integrated into its capital expenditure decisions [48]. - The Company is committed to investing a substantial portion of its research and development expenditures in climate and efficiency-related innovations [72]. - Investments are being made in the development of the Company's OpenBlue platform and related service offerings, as well as energy-efficient products and low GWP refrigerants [72]. Product and Market Strategy - The Company is enhancing its product lines and services to support its strategy, meet consumer preferences, and achieve regulatory compliance [72]. - Seasonal factors affect sales, particularly for residential air conditioning equipment, which sees increased demand during summer months [71]. - The Company’s sales are mitigated by other products and services that do not have a material seasonal effect [71]. Labor Relations - The Company maintains positive relations with labor unions, with approximately 22,000 employees covered by collective bargaining agreements [69]. Corporate Governance - The Company provides access to its SEC filings and other corporate governance materials through its Investor Relations website [73]. Workforce Overview - As of September 30, 2024, the Company employed approximately 94,000 people worldwide, with 35,000 in the United States and 59,000 outside the United States [69]. Risk Management - The Company’s risk management strategies are discussed in Item 7 of the Management's Discussion and Analysis of Financial Condition and Results of Operations [74].