Johnson Controls Provides Details of Q4 Restructuring Plans and Changes to Pension
Johnson Controls (NYSE: 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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