What impacted JCI's income tax expense in Q3 2023?

Johnson Controls International's (JCI) income tax expense in Q3 2023 was impacted by several factors, primarily related to strategic initiatives and non-recurring items: 1. **Corporate Inversion**: The company's merger with Tyco International was settled, leading to a shareholder lawsuit. Johnson Controls agreed to pay up to $405,000 in attorneys' fees and expenses. Such settlements can affect the income tax expense as they involve legal costs and potential tax implications of the merger. 2. **Tax Inversion Benefits**: As part of the merger, Johnson Controls is shifting its corporate headquarters to Ireland, which has a lower corporate tax rate than the United States. This inversion is expected to result in annual tax savings of $150 million due to the lower tax rate. The initial costs and restructuring associated with this shift could also impact the income tax expense in the current and future periods. In summary, the income tax expense in Q3 2023 was influenced by the merger-related legal costs and the anticipated tax savings from the corporate inversion. These factors, along with other business operations, contribute to the total income tax expense.