1,000,000 Shares
Johnson Controls, Inc.
Automatic Dividend Reinvestment and Common Stock Purchase Plan
Common Stock, $0.16 Par Value, With Attached Common Stock Purchase Rights
Johnson Controls, Inc. (the "Company") hereby offers to
participants in its Automatic Dividend Reinvestment and Common Stock
Purchase Plan (the "Plan") an opportunity to purchase Common Stock, $0.16
par value ("Common Stock"), in the Company under the Plan. Each share of
Common Stock purchased under the Plan will include one right to purchase
Common Stock (collectively, the "Rights"), as described in "Description of
Plan--Rights." Participation in the Plan is open to
- holders of Common Stock,
- holders of any Preferred Stock of the Company,
- persons not presently shareholders of the Company upon
payment of $50 or more, and
- eligible employees ("Employee Participants") of the Company
or a subsidiary of the Company (collectively, the
"Participants").
Participants holding stock in the Company may use their
quarterly Common Stock and/or Preferred Stock dividends to purchase Common
Stock. In addition, all Participants have the option of making
supplemental cash payments of not less than $50 per payment ($10 per month
through payroll deductions for Employee Participants) subject to a maximum
of $15,000 per calendar quarter to purchase additional shares of Common
Stock and to have the dividends on such stock reinvested under the Plan.
See "Description of Plan."
The price of each share of the Common Stock purchased under the
Plan will be 100% of market value, determined as provided in the Plan.
Participants do not pay any brokerage fee or commission when they purchase
shares under the Plan. The Company bears the cost of administering the
Plan.
Employee Participants should read Appendix A for a discussion of
certain matters relating to the Plan that apply specifically to Employee
Participants.
Except when otherwise indicated by the context, any masculine
terminology used herein shall also include the feminine gender, and the
definition of any term herein in the singular shall also include the
plural.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES REGULATORY
AUTHORITY NOR HAS THE COMMISSION OR ANY STATE REGULATORY AUTHORITY PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
The date of this Prospectus is June 11, 1997
<PAGE>
The Company
Johnson Controls, Inc. (the "Company") is a corporation
organized under the laws of the State of Wisconsin. The Company is a
global market leader in automotive systems and building controls. The
principal executive offices of the Company are located at 5757 North Green
Bay Avenue, P.O. Box 591, Milwaukee, Wisconsin 53201-0591, and its
telephone number is (414) 228-1200.
Use of Proceeds
The Company has no specific plan for the net proceeds to be
received from the sales, if any, of authorized but unissued shares of
Common Stock under the Plan. Rather, the Company offers the shares for
the purposes set out below, and any net proceeds will be applied toward
general corporate purposes.
Description of Plan
Set forth below are the provisions of the Plan, as amended to
date. Future amendments to the Plan by the Company or the Trust Company
will be effective immediately upon mailing of notice to Participants.
Purpose
The purposes of the Plan are twofold. First, it provides
Participants with a convenient and economical method of reinvesting cash
dividends and making additional limited cash investments in shares of
Common Stock at regular intervals. Second, the Plan provides the Company
with the ability to sell its authorized but unissued shares of Common
Stock to Participants which will raise funds to increase its equity base
and for investment and other general corporate purposes.
Advantages
Participants will not pay any commissions or service charges in
connection with purchases under the Plan. Full investment of funds is
possible because the Plan permits fractions of shares, as well as full
shares, to be credited to Participants' accounts. Participants can avoid
the responsibility for safekeeping of certificates for shares purchased
under the Plan and will be furnished a statement of account after each
purchase of shares. Participation in the Plan is entirely voluntary and
may be terminated at any time.
Administration
Firstar Trust Company, Milwaukee, Wisconsin (the "Trust
Company"), administers the Plan and will acquire shares of Common Stock as
agent for Participants.
Eligibility for Plan Participation
Any holder of record of the Common Stock or the Company's
Preferred Stock ("Preferred Stock") is eligible to participate in the
Plan. Beneficial owners of the Common Stock or the Preferred Stock whose
shares are held for them in registered names other than their own, such as
in the names of brokers, nominees or trustees, must take such steps as
they deem appropriate to become a holder of record to qualify for Plan
participation. Nonshareholders may begin participating by making an
initial cash payment of $50 to $15,000 through the Plan.
MANNER OF PARTICIPATION
Shareholders
To participate in the Plan, those who are already shareholders
of the Company must sign and mail the Authorization Form to Firstar Trust
Company, Corporate Trust Department, P.O. Box 3078, Milwaukee, Wisconsin
53201. Forms may also be delivered to the Corporate Trust Department of
the Trust Company. Authorization Forms will be provided from time to time
by mail to all shareholders and will be furnished at any time upon request
made to the Shareholder Services Department of the Company. Separate
Authorization Forms are required for Preferred and Common Stock.
Participation will commence with the next cash dividend payment date after
receipt of the Authorization Form, provided it is received by the Trust
Company at least three days prior to the date of record for such dividend.
If authorization is not received by that date, participation will be
delayed until the next cash dividend payment date.
Any shareholder of the Company may participate in the Plan by
reinvestment of dividends on all or part of his shares of Common Stock
and/or Preferred Stock of the Company.
Nonshareholders
With limited exceptions described below, any person who is not
currently a shareholder of the Company may participate in the Plan by
signing and mailing the attached Authorization Form with a check or money
order in amounts from $50 to $15,000 drawn in favor of "Firstar Trust
Company" as an initial cash investment. All amounts received must be in
United States dollars. The Authorization Form and remittance should be
mailed or delivered to the Trust Company, which will send a receipt to the
Participant for such investment. The Trust Company will use the initial
cash investment to purchase shares of Common Stock as described below and
all dividends on such shares will be reinvested for the Participant. The
Company reserves the right to prohibit participation in the Plan by
nonshareholders who reside in a state where (i) participation the Plan by
nonshareholders who reside in such state would require the Company to take
special action under the securities or "blue sky" laws of such state and
(ii) the Company has not yet taken such action. In any such case, this
Prospectus shall not be deemed an offer to sell Common Stock to
nonshareholders in such state and the Company will direct the Trust
Company to return any Authorization Form and remittance tendered by any
nonshareholder who resides in such state.
Supplemental Cash Investments
Participants may also make supplemental cash investments at any
time after the first reinvestment of their dividends or initial cash
investments in amounts from $50 ($10 per month through payroll deductions
in the case of Employee Participants), not to exceed $15,000 per calendar
quarter when combined with the amount of any initial cash investment. All
amounts received must be in United States dollars. Each supplemental
investment by a Participant shall be made by cash or by check or money
order drawn in favor of "Firstar Trust Company" and mailed or delivered to
the Trust Company with the remittance advice furnished by the Trust
Company for the purpose. The Trust Company will send a receipt to the
Participant for each such investment. The Trust Company will use the
supplemental cash investment to purchase shares of Common Stock as
described below and all dividends on such shares will be reinvested for
the Participant. A Participant may request the Trustee to return by mail
any amount sent to the Trustee for supplemental cash investment, and not
yet invested, by furnishing to the Trustee a written notice requesting
such return received by the Trustee at least 48 hours prior to the next
purchase date.
Purchase of Stock by Trust Company
As agent for the Participant, the Trust Company will apply all
funds received by it from or on behalf of the Participant to the purchase
of shares of the Common Stock for the account of the Participant. Shares
purchased under the Plan will normally be outstanding shares. Funds
representing cash dividends (both on stock held in the name of the
Participant and on any full or fractional shares held under the Plan) will
be applied to the purchase of Common Stock on the cash dividend payment
date or as soon as practicable thereafter. Initial and supplemental cash
investments received by the Trust Company from Participants, and any
proceeds from the sale of Common Stock subscription rights received by the
Trust Company on behalf of Participants, on or before the 25th of any
month will be invested by the Trust Company in Common Stock on the last
business day of such month or as soon as practicable thereafter; any such
funds received by the Trust Company after the 25th day of any month shall
be so invested by the Trust Company on the last business day of the
following month or as soon as practicable thereafter. In any event,
however, Common Stock will be purchased within 35 days of receipt of
supplemental cash payments or within 30 days of the payment date for
dividend reinvestments, or funds will be returned to the Participant. If
the funds received from or on behalf of a Participant are insufficient to
buy a full share (or shares), the Trust Company will credit the
Participant's account with a fractional share computed to three decimal
places. The Trust Company may make purchases of outstanding shares of
Common Stock for the Plan on any securities exchange where such stock is
traded, in the over-the-counter market, or in negotiated transactions, on
such terms as to price, delivery and otherwise as the Trust Company in its
sole discretion may determine, and subject to any applicable Federal
securities laws and guidelines established by the Securities and Exchange
Commission. The Trust Company shall have no liability in connection with
its inability to purchase shares or the timing of any purchase. For a
number of reasons, including observance of the rules and regulations of
the Securities and Exchange Commission or other regulatory agencies
requiring temporary curtailment or suspension of purchases, the
application of all or part of the amount of funds available in the
Participant's account for purchase of shares might be delayed from time to
time. No interest will be paid on funds held by the Trust Company pending
investment.
The Company reserves the right to instruct the Trust Company,
not less than 10 days prior to any proposed purchase for the Plan, to
purchase authorized but unissued shares of Common Stock from the Company.
However, the Company cannot change its determination that shares purchased
for the Plan will be purchased from the Company or in the open market more
than once in any 12 month period. Further, the Company cannot exercise
such right absent a documented determination by the Company's Board of
Directors or its Chief Financial Officer that the Company's need to raise
additional capital has changed or that there is another valid reason for
such change.
Price to Participants
In making purchases for the Participant's account the Trust
Company will commingle the Participant's funds with those of other
Participants. The price at which the Trust Company shall be deemed to
have acquired outstanding shares for the Participant's account shall be
the average price of all outstanding shares purchased by the Trust Company
as agent for the Participants. The price at which the Trust Company shall
acquire newly issued shares from the Company for the Participant's account
shall be the average of the highest and lowest prices, carried to four
decimal places, of the Common Stock reported as New York Stock Exchange --
Composite Transactions on the cash dividend payment date or other date of
purchase. If no trading occurs on the New York Stock Exchange in the
Common Stock on the cash dividend payment date or other date of purchase,
the price will be determined with reference to the next preceding date on
which the Common Stock is traded on the Exchange. In the event that
investment under the Plan is at any time made in both newly issued and
already outstanding shares, such shares shall be allocated proportionately
among the accounts of all Participants for whom funds are being invested
at that time.
Statements and Reports to Participants
As soon as practicable after each purchase, the Trust Company
will furnish to each Participant for whom a purchase was made a detailed
statement showing transactions in the Participant's account since the
immediately preceding purchase, including among other things, the net
dollars invested, the price paid per share, and the number of full and
fractional shares purchased during the current period and to date. At the
end of each year, the Trust Company will report, to the extent required
under the Internal Revenue Code, to each Participant on the appropriate
federal tax form the dividends credited to his account for that year on
the shares held for him in the name of the Trust Company's nominee and the
dividends credited to his account on the shares registered in his name.
Custody of Stock and Issuance of Certificates
The Trust Company will hold the shares of all Participants
together in the name of its nominee, and all cash dividends on those
shares will be reinvested. No certificates will be issued in a
Participant's name for full shares in his account unless he so requests
the Trust Company in writing from time to time prior to, or at,
termination of his account. Such requests shall be handled without charge
to the Participant. No fractional share certificates will be issued.
Unless the Participant terminates his account, obtaining certificates will
not affect the reinvestment of dividends on such shares.
Cost to Participants
All service charges for the Trust Company's services in
administering the Plan and all brokerage commissions for purchasing shares
will be paid for by the Company.
Voting of Shares Held Under the Plan
The Trust Company will vote at shareholders' meetings any full
shares in the Participant's account in accordance with the proxies
returned to the Company by the Participant with respect to shares of the
Company's stock registered in the Participant's name. Such shares will
not be voted if no proxy or instructions are given by the Participant.
Withdrawal or Sale of Shares From Account
A participant may withdraw or sell less than all of the shares
of Common Stock held in his account by giving written notice to the Trust
Company. If a Participant desires to withdraw shares, the Trust Company
will, promptly upon receipt of written notice, issue and deliver to the
Participant a certificate representing such shares. If a Participant
desires to sell shares, the Trust Company will sell such shares and send
the Participant the proceeds less any commissions. Generally, sales are
made at the current market price on either Tuesday or Friday within ten
business days of receipt of the Participant's written sales request.
Sales requests may be accumulated by the Trust Company, but no sales
transactions will be delayed more than ten business days. Such shares
may, if funds are available and the Trust Company is so directed by the
Company, be purchased by the Trust Company for investment under the Plan
at the market price at which such shares otherwise would have been sold.
Termination of Account
A Participant may terminate his account not less than 30 days
prior to any cash dividend payment date by giving written notice of
termination to the Trust Company. Any such notice received less than 30
days prior to such cash dividend payment date shall not be effective until
dividends and other accumulated funds, if any, have been invested and
credited to his account. The Trust Company may terminate any account by
notice in writing to the Participant. In the event of termination by
either the Trust Company or the Participant, the Participant may elect to
receive either stock or cash for all the full shares in his account. If
the Participant's account with the Trust Company is terminated and he
elects to have his shares in the Plan sold, the Trust Company will make
such sale and send him the proceeds less any commissions and a service
charge of $5.00. Generally, sales are made at the current market price on
either Tuesday or Friday within ten business days of receipt of the
Participant's written sales request. Sales requests may be accumulated by
the Trust Company, but no sales transactions will be delayed more than ten
business days (except during dividend payment periods). Such shares may,
if funds are available and the Trust Company is so directed by the
Company, be purchased by the Trust Company for investment under the plan
at the market price at which such shares otherwise would have been sold.
If no election is made by the Participant, a certificate for the stock
will be issued and delivered to the Participant for all full shares. In
any event, any fractional interest in a share will be converted to cash at
the current market price on the date of termination. In every case of
termination, uninvested supplemental cash investments credited to the
Participant's account will be distributed in cash.
Stock Dividends, Issuance of Rights and Other Distributions
Any stock dividends or stock splits distributed by the Company
on shares held by the Trust Company for the Participant will be credited
to the Participant's account. In the event that the Company makes
available to holders of Common Stock rights to purchase additional shares
of Common Stock or other securities (including the Rights), the Trust
Company will sell the rights accruing to all shares held by the Trust
Company for the Participants (if and when such rights become independently
traded) and will apply the net proceeds of such sale to the purchase of
Common Stock. However, the Company will, in advance of a subscription
offer (or, if such rights may not be independently traded upon issuance,
prior to the date on which such rights trade independently), inform each
Participant that if he does not want the Trust Company to sell his rights
and invest the proceeds, it will be necessary for him to transfer all full
shares held under the Plan to his own name by a given date. This will
permit the Participant to exercise, transfer or sell the rights on such
shares. In the event that rights (including the Rights) issued by the
Company are redeemed prior to the date that such rights trade
independently, the Trust Company will invest the resultant funds in
additional shares of Common Stock.
In the event that the Company distributes to holders of Common
Stock any securities (other than shares of Common Stock or rights to
purchase additional shares of Common Stock or other securities), such
securities (other than fractional shares thereof) accruing to all shares
of Common Stock held by the Trust Company for each Participant will be
transferred to such Participant's own name. Such securities will not be
credited to the Participant's account or sold by the Trust Company on the
Participant's behalf.
Rights
On November 29, 1984, rights declared as a dividend by the Board
of Directors of the Company were issued to holders of Common Stock, and
such rights have since expired. Effective as of November 30, 1994, the
Board of Directors of the Company declared a dividend of the Rights. The
Rights are not presently exercisable, but 10 days after a person or group
acquires 20% or more of the Common Stock or 10 business days (subject to
extension) after a person or group announces a tender offer to acquire at
least 20% of the Common Stock, the Rights will become exercisable. The
Rights will entitle each holder of a Right to purchase one share of
authorized but unissued Common Stock for each Right, subject to
adjustment. The exercise price of each Right is $87.50. Upon the
occurrence of certain events, including the acquisition by any person or
group of 20% or more of the Common Stock, each Right, other than Rights
held by an acquiring party, will entitle the holder to purchase, at the
exercise price, Common Stock having a market value of two times the
exercise price. The Rights Agreement excludes from the effects thereof
the inadvertent acquisition of 20% or more of the Common Stock, provided
there is a prompt divestment to less than 20%. The Rights may be redeemed
as provided and subject to the limitations set forth in the agreement
setting forth the terms of the Rights; otherwise, the Rights expire on
November 30, 2004. The Company has prepared a Summary of Rights to
Purchase Common Shares, a copy of which is available free of charge from
the Company.
No Right to Draw Against Account
The Participant shall have no right to draw checks or drafts
against his account or to give instructions to the Trust Company with
respect to any shares or cash held therein except as expressly provided
therein.
Notices to Participant
Notices to the Participant may be given by letter addressed to
the Participant at his address of record with the Company. The
Participant agrees to notify the Company promptly in writing of any change
of address.
Disposition of Shares
If a Participant disposes of all shares registered in his name,
whether or not in the account participating in the Plan (except in the
case where the Participant transfers such shares to the Trust Company to
be added to his account under the Plan), then the Trust Company will
request instructions from the Participant as to the disposition he wishes
to be made of shares in his account with the Trust Company. If the Trust
Company is unable to obtain instructions in such a case within 30 days
after the mailing of such request, it may terminate the account and have a
certificate issued and delivered for all full shares in the Plan together
with cash for any fractional interest in a share at the then current
market value, or it may in its discretion continue to reinvest the
dividends until otherwise instructed.
Amendment and Termination of Plan
The Plan may be amended, supplemented or terminated at any time
by the Company or the Trust Company by mailing appropriate notice to each
Participant at his last address of record and by giving proper notice to
the Trust Company or the Company, as the case may be. Any such amendment,
supplement or termination shall be effective immediately upon the mailing
of notice to Participants. No waiver or modification hereof shall be
deemed to be made by the Trust Company unless in writing and signed on the
Trust Company's behalf, and each waiver or modification, if any, shall
apply only to the specific instance involved. The Company shall be under
no obligation to continue to pay dividends to the Trust Company under the
Plan if it gives proper notification to each Participant and to the Trust
Company of its intent to terminate such dividend payments.
Duties and Responsibilities
Neither the Company, the Trust Company, nor its nominee shall
have any responsibility beyond the exercise of ordinary care for any
action taken or omitted pursuant to the Plan, nor shall they have any
duties, responsibilities or liabilities except such as are expressly set
forth herein. Neither the Company nor the Trust Company shall be liable
hereunder for any act done in good faith or for any good faith omission to
act including, without limitation, any claims of liability (a) with
respect to the prices at which shares are purchased or sold for a
Participant's account and the times when such purchases or sales are made,
(b) for any fluctuation in the market value after purchase or sale of
shares, or (c) arising out of failure to terminate the Participant's
account upon such Participant's death prior to receipt of notice in
writing of such death.
State Regulation
The terms and conditions of the Plan shall governed by the laws
of the State of Wisconsin. Section 180.1150 of the Wisconsin Business
Corporation Law provides that the voting power of shares of an "issuing
public corporation," such as the Company, which are held by certain
persons in excess of 20% of the voting power of any such corporation shall
be limited to 10% of the full voting power of such excess shares. This
statutory voting restriction is not applicable to shares acquired directly
from the Company, shares acquired prior to April 22, 1986, and under
certain other circumstances.
Section 180.1141 of the Wisconsin Business Corporation Law
provides that a "resident domestic corporation," such as the Company, may
not engage in a "business combination" with an "interested stockholder" (a
person beneficially owning 10% or more of the aggregate voting power of
the Company's Common Stock) for three years after the date (the "stock
acquisition date") the interested stockholder acquired his 10% or greater
interest, unless the business combination (or the acquisition of the 10%
or greater interest) was approved before the stock acquisition date by the
corporation's board of directors. After the three-year period, a business
combination that was not so approved can be consummated only if it is
approved by the majority of the outstanding voting shares not held by the
interested stockholder or is made at a specified formula price intended to
provide a fair price for the shares held by noninterested stockholders.
Participants with significant holdings of the Company's stock
are advised to consult their attorney to determine the applicability and
effect of such provisions.
Certain Federal Income Tax Consequences
The following discussion sets forth the general federal income
tax consequences for an individual participating in the Plan. However,
the discussion is not intended to be an exhaustive treatment of such tax
consequences. Future legislative changes or changes in administrative or
judicial interpretation, some or all of which may be retroactive, could
significantly alter the tax treatment discussed herein. Accordingly, and
because tax consequences may differ among Participants in the Plan, each
Participant should discuss specific tax questions regarding participation
in the Plan with his or her own tax advisor.
In general, Participants in the Plan have the same federal
income tax consequences with respect to their dividends as do shareholders
who are not participants in the Plan. On the dividend payment date,
Participants will receive a taxable dividend equal to the cash dividend
reinvested, to the extent the Company has earnings and profits. This
treatment applies with respect to both the shares of Common Stock held of
record by such Participant and such Participant's Plan account shares of
Common Stock and even though such amount is not actually received in cash
but is instead applied to the purchase of shares of Common Stock for the
Participant's Plan account. If shares are purchased on the open market or
in a privately negotiated transaction, the Participant's share of
brokerage fees, if any, paid by the Company will also be taxed as an
additional dividend to that Participant, to the extent the Company has
earnings and profits.
Shares or any fraction thereof of Common Stock purchased on the
open market or in a privately negotiated transaction with reinvested
dividends will have a tax basis equal to the amount paid therefor,
increased by any brokerage fees treated as a dividend to the Participant.
Shares or any fraction thereof of Common Stock purchased from the Company
with reinvested dividends will have a tax basis equal to the amount of the
dividend. Whether purchased on the open market or in a privately
negotiated transaction or from the Company, the shares or any fraction
thereof will have a holding period beginning on the day following the
purchase date.
Participants that make an initial or supplemental cash
investments to the Plan will be deemed to have received an additional
taxable dividend in the amount of the Participant's pro rata share of the
brokerage commissions, if any, paid by the Company, to the extent the
Company has earnings and profits. Such brokerage commissions will only be
incurred on the purchase of the Common Stock in the open market or in
privately negotiated transactions. Shares or any fraction thereof
purchased with initial or supplemental cash payments will have a tax basis
equal to the amount of such payments increased by the amount of brokerage
fees, if any, treated as a taxable dividend to the Participant with
respect to those shares or fraction thereof. The holding period for such
shares or fraction thereof will begin on the day following the purchase
date.
In contrast to the tax treatment described above with respect to
a Participant's share of brokerage fees, Participants should not be
treated as receiving an additional taxable dividend based upon their pro
rata share of the costs of administering the Plan which are paid by the
Company. However, there can be no assurances that the Internal Revenue
Service ("IRS") will agree with this position. The Company has no present
plans to seek formal advice from the IRS on this issue.
Participants will not recognize any taxable income when they
receive certificates for whole shares credited to their accounts, either
upon their requests for such certificates for whole shares credited to
their accounts, either upon their requests for such certificates or upon
withdrawal from or termination of the Plan. However, Participants will
recognize gain or loss when whole shares acquired under the Plan are sold
or exchanged either through the Plan at their request or by Participants
themselves after receipt of certificates for shares from the Plan.
Participants will also recognize gain or loss when they receive cash
payments for fractional shares credited to their accounts, upon withdrawal
from or termination of the Plan. The amount of gain or loss is the
difference between the amount which the Participant receives for his or
her shares or fractional shares and the tax basis thereof. Such gain or
loss will generally be a capital gain or loss, long-term or short-term
depending on the Participant's holding period. Presently, net long-term
capital gains of certain taxpayers are taxed at lower rates than other
items of taxable income.
Participants Subject to Income Tax Withholding
In the case of a participating foreign shareholder whose
dividends are subject to United States income tax withholding or a
participating domestic stockholder subject to backup withholding (because
a correct taxpayer identification number has not been furnished or
otherwise), the tax required to be withheld will be deducted from the
amount of any cash dividend otherwise to be applied to the purchase of
shares for his or her account under the Plan, and the amount of the
dividend after such deduction will be so applied. Since any such
withholding tax applies also to a dividend on shares credited to the Plan
account, only the net dividend on such shares will be applied to the
purchase of additional stock. The regular statements sent to such
Participants will indicate the amount of tax withheld. The Company cannot
refund amounts withheld. Participants subject to withholding should
contact their tax advisors or the Internal Revenue Service for additional
information.
Available Information
The Company is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith files reports and other information with the
Securities and Exchange Commission (the "Commission"). Certain
information, as of particular dates, concerning directors and officers,
their remuneration and any material interest of such persons in
transactions with the Company has been disclosed in proxy statements
distributed to shareholders of the Company and filed with the Commission.
Such reports, proxy statements and other information can be inspected and
copied at the public reference facilities maintained by the Commission at
the offices of the Commission at Room 1024, 450 Fifth Street, N.W.,
Washington, D.C. 20549, and at the following regional offices of the
Commission: New York Regional Office, Seven World Trade Center, Suite
1300, New York, New York 10048; and Chicago Regional Office, Citicorp.
Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661.
Copies of such material can be obtained from the Public Reference Section
of the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549, at
prescribed rates. The Commission maintains a Web site that contains
reports, proxy and information statements and other information regarding
registrants that file electronically with the Commission. The address of
such Web site is http://www.sec.gov. In addition, reports, proxy material
and other information concerning the Company may be inspected at the
office of the New York Stock Exchange, 11 Wall Street, New York, New York
10005.
Incorporation of Certain Documents by Reference
The following documents are incorporated by reference in this
Prospectus:
(a) The Company's Annual Report on Form 10-K for the year ended
September 30, 1995, filed pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
(b) All reports of the Company filed with the Securities and
Exchange Commission, pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 since September 30, 1995.
(c) The definitive proxy statement of the Company filed with
the Commission pursuant to Section 14 of the Securities Exchange Act of
1934 in connection with the Annual Meeting of Shareholders to be held on
January 24, 1996.
(d) The description of the Common Stock and Rights contained in
any registration statements filed under the Securities Exchange Act of
1934, including any amendments or reports filed for the purpose of
updating such description.
All documents subsequently filed by the Company pursuant to
Sections 13, 14 or 15(d) of the Securities Exchange Act of 1934 prior to
the termination of this offering shall also be deemed to be incorporated
by reference in this Prospectus and to be a part hereof from the date of
filing such documents.
The Company will provide without charge to each person to whom a
Prospectus is delivered, upon the oral or written request of any such
person, a copy of any or all of the documents incorporated by reference
herein, other than exhibits to such documents. Such requests should be
addressed to:
Shareholder Services, X-32
Johnson Controls, Inc.
Post Office Box 591
Milwaukee, Wisconsin 53201-0591
(telephone number: (414) 228-2363)
<PAGE>
APPENDIX A
AUTOMATIC DIVIDEND REINVESTMENT AND
COMMON STOCK PURCHASE PLAN
Provisions for Employee Participants
Introduction
The Common Stock Purchase Plan, as this Plan is known to
employees of Johnson Controls, allows Employee Participants to share in
the ownership of Johnson Controls by purchasing Johnson Controls common
stock through payroll deductions. But owning stock isn't for everyone,
and the Company can't recommend its own stock. Where stock ownership is
concerned, there's always risk involved.
But if you decide you would like to purchase Johnson Controls
stock, this Plan makes it easier. For one thing, money is deducted right
from your paycheck (on an after-tax basis). In addition, the Company pays
the commissions and service charges. So all your money goes directly to
purchase stock.
The remainder of the prospectus of which this appendix is a part
contains a description of terms of the plan applicable to all
participants, including employee participants. The following discusses
certain matters relating to the plan that apply specifically to employee
participants. However, you should be familiar with all of the information
in the prospectus, including this appendix, before participating in the
plan.
Opening an Account
Eligibility. Firstar Trust Company maintains accounts for
everyone purchasing stock through the Common Stock Purchase Plan. The
only requirements are that you:
- be a Company employee
- have reached the age of majority in your state (usually age
21)
- reside in the U.S. or in an authorized location outside the
U.S.
Enrolling and making payroll deductions. You may enroll in the
Plan at any time by calling Firstar Trust Company at 1-800-828-1489,
company code 5201. To enroll in the Common Stock Purchase Plan, press 4.
Some employee groups may require a form. Check with your Human Resources
Department.
When you decide to enroll, you must also decide how much money
to have deducted from your pay to purchase stock. You can choose any
amount between $10 and $500 each month, in whole dollars.
Changing your deduction amount. Just as with any other
investment, flexibility is an important consideration. You can change
your Common Stock Purchase Plan deduction as often as you like.
Or you can stop your deductions temporarily and begin them again
later. During times when you aren't having deductions made, statements
are sent to keep you up to date on dividend payments. If you have an
address change during this time, you must inform the Trust Company of the
change.
To change or suspend your deductions, call Firstar Trust Company
at 1-800-828-1489, company code 5201, option 4. Some employee groups may
require a form. Check with your Human Resources Department. Firstar
Trust Company will make the change as soon as it can be arranged.
Purchasing Stock
Purchase price. Your payroll deductions are used to purchase
Johnson Controls Common Stock on the New York Stock Exchange. To purchase
shares for this Plan, all Participants' deposits are combined. The
purchase price is the price of Common Stock on the New York Stock Exchange
at the time of purchase.
Dividends. Shares purchased for you are credited to your
account. Periodically, the Company pays dividends on its Common Stock.
Historically, dividends have been paid on a quarterly basis. These go
back into your account to purchase more shares.
Voting shares. As soon as you own one full share, you
automatically receive all the information that goes to shareholders, such
as annual reports and proxy material. This way you can instruct the plan
administrator to vote your shares the way you wish.
Commissions and service charges. Brokers receive commissions
and make other charges for their services. Broker charges to purchase
shares of Johnson Controls Common Stock through this Plan are paid by the
Company. However, as is discussed more fully in the remainder of the
Prospectus, you will have additional taxable income in the amount of your
share of brokerage fees paid by the Company.
Account Statements. You receive a quarterly statement on your
account when the dividend is posted and a year-end statement in December.
The statements tell you how much money has been applied to purchase
shares, how many shares were purchased, and the purchase price.
These reports will help you establish the change in value for
income tax purposes. The December statement will list the entire year's
transactions and should be retained for tax purposes for as long as you
hold the stock.
Use the top portion of the account statement for sending
instructions to Firstar Trust Company regarding your account. The front
side includes a provision for changing your address. Use the top portion
of the account statement to notify the Trust Company of an address change.
You can also use the tear-off portion to make voluntary cash contributions
(over and above your payroll deductions) as described more fully at the
end of this Appendix and in the remainder of the Prospectus of which this
Appendix is a part. The reverse side of the form can be used to request
issuance of a certificate and/or sale of shares. Be sure to sign the form
before mailing it to Firstar Trust Company.
Stopping Payroll Deductions
When your payroll deductions are stopped, your shares will
remain in the Plan and dividends will continue to be reinvested. You will
receive quarterly statements.
To close your account after your last investment has been
posted, make sure your deductions have stopped and Firstar Trust Company
has had time to invest your last payroll deduction (this can take as long
as 35 days). Send written instructions or use the reverse side of the top
portion of your statement to instruct Firstar Trust Company with one of
these choices:
1. Issue your shares in certificate form. You will receive a
check for the sale of the fractional share. Future dividends will be paid
in cash.
2. Issue a certificate for some of the full shares and sell
the remaining shares.
3. Sell all of your shares.
If you wish, you may request that Firstar Trust Company issue a
portion of the shares in certificate form. To change to partial dividends
reinvestment on any issued shares (dividends are always reinvested on Plan
shares), contact Firstar Trust Company for a new enrollment form.
You can remain in the Plan even if you have terminated your
employment with Johnson Controls. You will receive quarterly statements
when dividends are posted to your account, and you can make monthly
voluntary cash investments.
Selling or Transferring Stock Ownership
You can get shares out of your account at any time. The shares
are registered in your name and sent to you.
This Plan is designed to encourage you and other employees to
become part owners of the Company through stock purchase. So, the Company
wants you to consider holding on to the shares you've purchased. On the
other hand, once purchased, the shares are yours. Of course, you are
responsible for brokerage charges if you sell them or transfer their
ownership.
Selling shares. You can sell shares while they're in your
account. Just notify the plan administrator, Firstar Trust Company, in
writing, or complete the reverse side of the top portion of your
statement. Be sure to sign your form or letter.
Or you can sell shares through a broker once they've been
delivered to you. You pay the brokerage fees when you sell your shares.
Transferring share ownership. Once ownership has been
transferred to you, you may, in turn, transfer it to someone else.
Further information is available from the transfer agent, Firstar Trust
Company.
Relatives and Friends and Employee Supplemental Contributions
Family or friends can become Company shareholders through the
features of this Plan known as the Automatic Dividend Reinvestment (ADRP)
and Common Stock Purchase Plan (CSPP). Through the ADRP/CSPP, you can
also purchase stock in lieu of or in addition to payroll deductions. By
purchasing through the ADRP/CSPP, you do not pay brokers' fees or
commissions on purchases. The ADRP/CSPP differs from the payroll
deduction Common Stock Purchase Plan in that purchases must be through a
minimum payment of $50 and are subject to a maximum of $15,000 (total
including your payroll deduction amount) per calendar quarter.
Information on the ADRP/CSPP is set forth in the remainder of the
Prospectus of which this Appendix is a part and is also available from the
plan administrator:
Firstar Trust Company
615 East Michigan Street
P.O. Box 3078
Milwaukee, Wisconsin 53201
1-800-828-1489 (Company Code JC01 (5201))