Emerson Electric Adopts Mark-to-Market Pension Accounting, Recasts Historical Results

Summary of Filing

On October 13, 2026, Emerson Electric Co. filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits).

Key Disclosures

• Change in Accounting Principle: Effective for the fiscal year ended September 30, 2026, Emerson has elected to change its accounting method for actuarial gains and losses related to defined benefit pension and other postretirement plans to mark-to-market accounting.
• Recognition Timing: Under the new policy, actuarial gains and losses will be recognized in earnings annually during the fourth fiscal quarter based on the September 30 measurement date, rather than amortizing amounts out of accumulated other comprehensive income (AOCI) over subsequent periods.
• Expected Financial Impact:
  • Emerson anticipates recording a pretax mark-to-market gain of less than $5 million in Q4 fiscal 2026.
  • The retrospective adoption increased net earnings for the nine months ended June 30, 2026, by $8 million ($6 million after-tax, or $0.01 per share) due to the reversal of amortized losses.
  • Mark-to-market adjustments will be excluded from non-GAAP adjusted EPS.
• Operational & Cash Flow Neutral: The accounting change does not affect total cash flows, plan funded status, required funding contributions, or benefits payable to participants.
• Exhibit 99.1: The company provided recast unaudited historical results for fiscal years 2024 and 2025, as well as quarterly periods for fiscal 2025 and the first three quarters of fiscal 2026.