Johnson Controls JCI
today announced details of its planned fourth quarter restructuring activities
and the financial impact associated with adoption of a new pension /
post-retirement benefits accounting policy. The company disclosed in July
2012 its intention to take additional restructuring actions in the fourth
fiscal quarter and to adopt a new mark-to-market accounting method that
recognizes pension / post-retirement actuarial and investment gains or losses
in the fourth quarter of each fiscal year.
Restructuring actions
To better align its resources with its growth strategies, while reducing the
cost structure of its global operations, Johnson Controls, Inc. said it plans
to initiate restructuring activities which resulted in an estimated pre-tax
charge of $225 to $275 million in its 2012 fourth quarter. The restructuring
actions relate to cost reduction initiatives, including workforce reductions
and plant consolidations, in the Company's automotive experience, building
efficiency and power solutions businesses.
The charge is comprised of employee-related costs of approximately $180 to
$210 million, asset impairment charges of approximately $30 to $45 million and
other miscellaneous costs of approximately $15 to $20 million. Future cash
expenditures for these restructuring actions are expected to approximate $190
to $220 million. The restructuring actions
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