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Johnson Controls moves to mark-to-market accounting

Johnson Controls

Johnson Controls Inc., Milwaukee, adopted mark-to-market accounting for its defined benefit pension plans, according to a company statement.

The accounting change “has no impact on future pension and post-retirement funding or benefits paid to participants,” the statement said.

The auto-parts company had $2.3 billion in U.S. pension assets and $2.9 billion in U.S. pension liabilities as of Sept. 30, 2011, according to its most recent 10-K report. As of the same date, Johnson Controls had $1.4 billion of non-U.S. pension assets and $1.8 billion in non-U.S. pension liabilities, the report said.

The move will recognize pension investment and actuarial gains or losses in the fourth quarter of the company's fiscal year, starting with the one that ended Sept. 30, the statement said.

Its previous accounting method amortized deferred gains or losses and smoothed asset returns over a number of years.

Johnson Controls plans a fourth-quarter earnings conference call Oct. 30. Fraser Engerman, spokesman, said he didn't know if the pension accounting change is on the agenda but it would likely come as a question during the call.

The company has not yet issued its 10-K for its recently concluded fiscal year. In recent years it has filed its 10-K report in November; Mr. Engerman couldn't confirm the date Johnson Controls plans to issue its 2012 report.