Johnson Controls to Adopt FAS 142 in Fiscal 2002

    MILWAUKEE, Aug. 7 Johnson Controls, Inc. today
said that it anticipates adopting the FASB's Statement of Financial Accounting
Standards No. 142 "Goodwill and Other Intangible Assets" in October 2001, the
beginning of its 2002 fiscal year.
    Under the new FASB statement, goodwill will no longer be amortized,
however, it must be tested for impairment annually.  Amortization will
continue to be recorded for other intangible assets.
    To assist investors, the company is providing estimated information
reflecting the pro forma impact of applying FAS 142 to fiscal year 2001.
    Johnson Controls said that on a pro forma basis diluted earnings per share
for 2001 would increase by approximately $0.65, reflecting the elimination of
approximately $70 million of goodwill amortization from pretax income and a
resulting lower effective income tax rate.  The tax rate would decrease to
approximately 36.6% from the current 38.7%.
    Approximately $60 million of goodwill amortization relates to the
company's automotive segment, while approximately $10 million is attributable
to the controls segment.  The company said it also expects amortization of
other intangible assets for fiscal 2001 to be approximately $15 million.