Why Did The SG&A Expenses For Johnson Controls Increase In The First Half Of FY 2016?

by Trefis Team
+2.80%
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JCI
Johnson Controls
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JCI- SG&A

 

The Following Factors Resulted In A Change In SG&A Expenses:

1) Increase in SG&A Expenses in Building Efficiency Business

  • Incremental SG&A related to the JCI-Hitachi (JCH) joint venture.
  • Product and sales force investments in North America.

2) Decline in SG&A Expenses in Automotive Experience Business

  • Deconsolidation of the majority of the Automotive Experience Interiors business and restructuring savings.
  • Offset by separation costs of $194M.

3) Decline in SG&A Expenses in Power Solutions Business

  • Decline in SG&A due to lower employee related expenses.
  • Cost reduction initiatives.

4) Foreign Currency Translation

  • Favorable impact on SG&A of $65M.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Johnson Controls.

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