What Costs Did Johnson Controls’ 2015 Restructuring Plan Entail?

by Trefis Team
Johnson Controls
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Johnson Controls (NYSE:JCI) committed to a restructuring plan in 2015 in order to better align its resources with its growth strategies and reduce the cost structure of its global operations. The company recorded $397 million of restructuring and impairment costs in the consolidated statements of income. The restructuring actions related to cost reduction initiatives in the Automotive Experience, Building Efficiency, and Power Solutions businesses and at Corporate, with costs primarily consisting of workforce reductions, plant closures, and asset impairments. Of the restructuring and impairment costs recorded, $182 million related to the Automotive Experience Seating segment, $166 million related to Corporate, $27 million related to the Building Efficiency Rest of World segment, $11 million related to the Power Solutions segment, $7 million related to the Building Efficiency Asia segment, $2 million related to the Building Efficiency Systems and Service North America segment, and $2 million related to the Building Efficiency Products North America segment. The restructuring actions are expected to be substantially complete in fiscal 2016.

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