Printer Friendly

JOHNSON CONTROLS TO ADOPT ACCOUNTING CHANGES IN FISCAL 1993

 MILWAUKEE, Sept. 28 /PRNewswire/ -- Johnson Controls, Inc. (JCI) (NYSE: JCI) today announced that it will adopt several new accounting standards effective for its 1993 fiscal year ending Sept. 30. The standards to be adopted are Statements of Financial Accounting Standards No. 106 ("Employers' Accounting for Postretirement Benefits Other Than Pensions"), No. 109 ("Accounting for Income Taxes") and No. 112 ("Employers' Accounting for Postemployment Benefits").
 The company said that it will restate its interim results for 1993 to reflect the adoption of these standards effective October 1, 1992, including a new effective tax rate. For fiscal 1993, the incremental cost related to the adoption of these standards and the increase in the U.S. statutory tax rate are estimated to reduce earnings per share on a primary and fully diluted basis by $.24 and $.25, respectively. These amounts reflect a one-point decline in its effective tax rate, to 45 percent for 1993. The combined cumulative effect of adopting these standards is estimated to result in a one-time, aftertax charge to 1993 earnings of approximately $115-120 million, which will be reflected in restated results for the 1993 first quarter.
 For fiscal 1994, the company said the effect of the ongoing costs is expected to be approximately 75 percent of the prior year's impact.
 All amounts are unaudited.
 The adoption of these standards will have no effect on the company's cash flow and will not materially affect the position of the company under its debt agreements.
 -0- 9/28/93
 /CONTACT: Glen L. Ponczak of Johnson Controls, Inc., 414-228-2375/
 (JCI)


CO: Johnson Controls, Inc. ST: Wisconsin IN: AUT SU: ACC

BM -- CL011 -- 6423 09/28/93 13:59 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 28, 1993
Words:276
Previous Article:NORFOLK SOUTHERN ELECTS NEW VICE PRESIDENTS
Next Article:USAIR OFFERS INTRODUCTORY CARIBBEAN FARES FOR FLIGHTS TO GRAND CAYMAN AND ST. THOMAS; ALSO SPECIAL SAVINGS ON SAN JUAN FARES

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters