EMR: Financial results

Item 2.02 Results of Operations and Financial Condition (Dollars in millions, except per share amounts) On October 13, 2026, Emerson Electric Co. ("Emerson" or the "Company") announced that, effective for the fiscal year ended September 30, 2026, it has elected to change its method of accounting for actuarial gains and losses associated with its defined benefit pension and other postretirement benefit plans. Under the new method, commonly referred to as mark-to-market accounting, actuarial gains and losses will be recognized in earnings in the period in which they arise. Historically, Emerson recognized actuarial gains and losses in accumulated other comprehensive income and amortized a portion of those amounts into net periodic benefit cost in subsequent periods. Beginning in the fourth quarter of fiscal 2026, the Company will recognize actuarial gains and losses annually in the fourth quarter based on the plans' September 30 annual measurement date. The annual mark-to-market adjustment will principally reflect changes in discount rates, returns on plan assets and other actuarial assumptions. Emerson believes the new method is preferable under U.S. generally accepted accounting principles ("U.S. GAAP") because it improves the transparency of the Company's results of operations by recognizing the effects of current economic conditions and pla n experience in the period in which they arise, rather than amortizing those effects into earnings over future periods. The new method also better aligns the measurement of pension and other postretirement benefit expense with fair value principles. The Company expects to record a pretax gain of less than $5 for the mark-to-market adjustment in the fourth quarter of fiscal 2026 based on its current actuarial assumptions and estimat