Emerson Electric (EMR) 10-Q 5 May 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Entity Information [Line Items]
Entity Registrant Name	EMERSON ELECTRIC CO
Entity Central Index Key	32,604
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		643,351,041

Consolidated Statements Of Earn

Consolidated Statements Of Earnings - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net sales	$ 4,928	$ 5,400	$ 9,641	$ 10,987
Costs and expenses:
Cost of sales	2,934	3,234	5,758	6,541
Selling, general and administrative expenses	1,218	1,318	2,444	2,723
Gain on sale of business	0	932	0	932
Other deductions, net	122	136	236	200
Interest expense (net of interest income of $8, $9, $16 and $16, respectively)	46	40	92	86
Earnings before income taxes	608	1,604	1,111	2,369
Income taxes	231	625	382	861
Net earnings	377	979	729	1,508
Less: Noncontrolling interests in earnings of subsidiaries	8	6	11	10
Net earnings common stockholders	$ 369	$ 973	$ 718	$ 1,498
Basic earnings per share common stockholders	$ 0.57	$ 1.42	$ 1.11	$ 2.18
Diluted earnings per share common stockholders	0.57	1.42	1.10	2.17
Cash dividends per common share	$ 0.475	$ 0.47	$ 0.95	$ 0.94

Consolidated Statements Of Ear3

Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Interest income	$ 8	$ 9	$ 16	$ 16

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net earnings	$ 377	$ 979	$ 729	$ 1,508
Other comprehensive income (loss), net of tax:
Foreign currency translation	125	(427)	(28)	(732)
Pension and postretirement	27	28	53	56
Cash flow hedges	5	1	11	(23)
Total other comprehensive income (loss)	157	(398)	36	(699)
Comprehensive income	534	581	765	809
Less: Noncontrolling interests in comprehensive income of subsidiaries	9	6	12	9
Comprehensive income common stockholders	$ 525	$ 575	$ 753	$ 800

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2016	Sep. 30, 2015
Current assets
Cash and equivalents	$ 3,322	$ 3,054
Receivables, less allowances of $120 and $128, respectively	3,874	4,319
Inventories	1,950	1,847
Other current assets	767	829
Total current assets	9,913	10,049
Property, plant and equipment, net	3,523	3,585
Other assets
Goodwill	6,642	6,653
Other intangible assets	1,437	1,526
Other	249	275
Total other assets	8,328	8,454
Total assets	21,764	22,088
Current liabilities
Short-term borrowings and current maturities of long-term debt	3,232	2,553
Accounts payable	2,140	2,358
Accrued expenses	2,722	2,803
Income taxes	88	86
Total current liabilities	8,182	7,800
Long-term debt	4,062	4,289
Other liabilities	1,777	1,871
Equity
Common stock, $0.50 par value; authorized, 1,200,000,000 shares; issued, 953,354,012 shares; outstanding, 643,261,142 shares and 654,608,521 shares, respectively	477	477
Additional paid-in-capital	189	170
Retained earnings	21,410	21,308
Accumulated other comprehensive income (loss)	(1,582)	(1,617)
Cost of common stock in treasury, 310,092,870 shares and 298,745,491 shares, respectively	(12,802)	(12,257)
Common stockholders’ equity	7,692	8,081
Noncontrolling interests in subsidiaries	51	47
Total equity	7,743	8,128
Total liabilities and equity	$ 21,764	$ 22,088

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 120	$ 128
Common stock, par value per share	$ 0.50	$ 0.50
Common stock, shares authorized	1,200,000,000	1,200,000,000
Common stock, shares issued	953,354,012	953,354,012
Common stock, shares outstanding	643,261,142	654,608,521
Treasury stock, shares	310,092,870	298,745,491

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net earnings	$ 729	$ 1,508
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	397	412
Changes in operating working capital	(57)	(530)
Gain on divestiture of business, after tax	0	528
Other, net	137	67
Net cash provided by operating activities	1,206	929
Investing activities
Capital expenditures	(247)	(359)
Purchases of businesses, net of cash and equivalents acquired	(11)	(145)
Divestiture of business	0	1,391
Other, net	70	(86)
Net cash provided by (used by) investing activities	(188)	801
Financing activities
Net increase in short-term borrowings	357	1,223
Proceeds from short-term borrowings greater than three months	1,174	2,299
Payments of short-term borrowings greater than three months	(827)	(2,668)
Payments of long-term debt	(253)	(251)
Dividends paid	(616)	(647)
Purchases of common stock	(555)	(1,351)
Other, net	(5)	(20)
Net cash used by financing activities	(725)	(1,415)
Effect of exchange rate changes on cash and equivalents	(25)	(208)
Increase (decrease) in cash and equivalents	268	107
Beginning cash and equivalents	3,054	3,149
Ending cash and equivalents	3,322	3,256
Changes in operating working capital
Receivables	436	408
Inventories	(100)	(251)
Other current assets	(30)	(40)
Accounts payable	(175)	(310)
Accrued expenses	(189)	(183)
Income taxes	1	(154)
Changes in operating working capital	$ (57)	$ (530)

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2016
Disclosure Text Block [Abstract]
Basis of Presentation And Recently Issued Accounting Pronouncements	In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for a fair presentation of operating results for the interim periods presented. Adjustments consist of normal and recurring accruals. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all disclosures required for annual financial statements presented in conformity with U.S. generally accepted accounting principles (GAAP). For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2015 . In February 2016, the FASB amended ASC 842, Leases , to require recognition on the balance sheet of assets and liabilities related to the rights and obligations associated with all lease arrangements. Currently, obligations classified as operating leases are not recorded on the balance sheet but must be disclosed. The new standard is effective for the Company in the first quarter of fiscal 2020. The Company is in the process of evaluating the impact of the revised standard on its financial statements.

Weighted Average Common Shares

Weighted Average Common Shares	6 Months Ended
	Mar. 31, 2016
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted Average Common Shares	Reconciliations of weighted-average shares for basic and diluted earnings per common share follow (in millions). Earnings allocated to participating securities were inconsequential. Three Months Ended Six Months Ended 2015 2016 2015 2016 Basic shares outstanding 680.9 642.0 686.1 646.0 Dilutive shares 3.2 2.7 3.3 2.6 Diluted shares outstanding 684.1 644.7 689.4 648.6

Other Financial Information

Other Financial Information	6 Months Ended
	Mar. 31, 2016
Disclosure Text Block [Abstract]
Other Financial Information	Other Financial Information (in millions): Sept 30, 2015 Mar 31, 2016 Inventories Finished products $ 680 701 Raw materials and work in process 1,167 1,249 Total $ 1,847 1,950 Property, plant and equipment, net Property, plant and equipment, at cost $ 8,931 9,034 Less: Accumulated depreciation 5,346 5,511 Total $ 3,585 3,523 Goodwill by business segment Process Management $ 2,790 2,790 Industrial Automation 1,031 1,027 Network Power 2,144 2,137 Climate Technologies 492 491 Commercial & Residential Solutions 196 197 Total $ 6,653 6,642 The gross carrying amount of goodwill for the Company was $7,288 million and $7,299 million as of March 31, 2016 and September 30, 2015, respectively. Accumulated pretax goodwill impairment losses were $646 million at the end of both periods, all in the Network Power segment. Sept 30, 2015 Mar 31, 2016 Accrued expenses include the following Employee compensation $ 597 517 Customer advanced payments $ 450 495 Product warranty $ 167 172 Sept 30, 2015 Mar 31, 2016 Other liabilities Pension liabilities $ 662 579 Deferred income taxes 408 453 Postretirement liabilities, excluding current portion 199 197 Other 602 548 Total $ 1,871 1,777

Financial Instruments

Financial Instruments	6 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Following is a discussion regarding the Company’s use of financial instruments: Hedging Activities – As of March 31, 2016 , the notional amount of foreign currency hedge positions was approximately $1.5 billion , and commodity hedge contracts totaled approximately $125 million (primarily 54 million pounds of copper and aluminum). All derivatives receiving deferral accounting are cash flow hedges. The majority of hedging gains and losses deferred as of March 31, 2016 are expected to be recognized over the next 12 months as the underlying forecasted transactions occur. Gains and losses on foreign currency derivatives reported in other deductions, net reflect hedges of balance sheet exposures that do not receive deferral accounting. The following gains and losses are included in earnings and other comprehensive income (OCI) for the three and six months ended March 31, 2016 and 2015 (in millions): Into Earnings Into OCI 2nd Quarter Six Months 2nd Quarter Six Months Gains (Losses) Location 2015 2016 2015 2016 2015 2016 2015 2016 Commodity Cost of sales $ (8 ) (12 ) (10 ) (20 ) (7 ) 1 (19 ) (10 ) Foreign currency Sales, cost of sales 1 (9 ) — (15 ) 4 (13 ) (27 ) (7 ) Foreign currency Other deductions, net 31 (10 ) 14 (7 ) Total $ 24 (31 ) 4 (42 ) (3 ) (12 ) (46 ) (17 ) Regardless of whether derivatives receive deferral accounting, the Company expects hedging gains or losses to be essentially offset by losses or gains on the related underlying exposures. The amounts ultimately recognized will differ from those presented above for open positions, which remain subject to ongoing market price fluctuations until settlement. Derivatives receiving deferral accounting are highly effective and no amounts were excluded from the assessment of hedge effectiveness. Hedge ineffectiveness was immaterial for the three and six months ended March 31, 2016 and 2015 . Fair Value Measurement – Valuations for all derivatives and the Company's long-term debt fall within Level 2 of the GAAP valuation hierarchy. As of March 31, 2016 , the fair value of long-term debt was $4,736 million , which exceeded the carrying value by $407 million . At March 31, 2016 , the fair values of commodity contracts and foreign currency contracts were reported in other current assets and accrued expenses. Valuations of derivative contract positions are summarized below (in millions): September 30, 2015 March 31, 2016 Assets Liabilities Assets Liabilities Foreign Currency $ 30 65 16 45 Commodity $ — 29 — 19 Counterparties to derivatives arrangements are companies with investment-grade credit ratings. The Company has bilateral collateral arrangements with counterparties with credit rating-based posting thresholds that vary depending on the arrangement. If credit ratings on the Company's debt fall below preestablished levels, counterparties can require immediate full collateralization of all derivatives in net liability positions. The maximum amount that could have potentially been required was $52 million . The Company also can demand full collateralization of derivatives in net asset positions should any counterparty credit ratings fall below certain thresholds. No collateral was posted with counterparties and none was held by the Company as of March 31, 2016 .

Equity Roll Forward

Equity Roll Forward	6 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Equity	The change in equity for the first six months of 2016 is shown below (in millions): Common Stockholders' Equity Noncontrolling Interests in Subsidiaries Total Equity Balance at September 30, 2015 $ 8,081 47 8,128 Net earnings 718 11 729 Other comprehensive income (loss) 35 1 36 Cash dividends (616 ) (8 ) (624 ) Net purchases of common stock (526 ) — (526 ) Balance at March 31, 2016 $ 7,692 51 7,743

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Comprehensive Income (Loss)	Activity in accumulated other comprehensive income (loss) for the three and six months ended March 31, 2016 and 2015 is shown below (in millions): Three Months Ended Six Months Ended 2015 2016 2015 2016 Foreign currency translation Beginning balance $ (133 ) (775 ) 171 (622 ) Other comprehensive income (loss) (427 ) 124 (731 ) (29 ) Ending balance (560 ) (651 ) (560 ) (651 ) Pension and postretirement Beginning balance (718 ) (926 ) (746 ) (952 ) Amortization of deferred actuarial losses into earnings 27 27 55 53 Divestiture of business 1 — 1 — Ending balance (690 ) (899 ) (690 ) (899 ) Cash flow hedges Beginning balance (24 ) (37 ) — (43 ) Deferral of gains (losses) arising during the period (3 ) (8 ) (29 ) (11 ) Reclassification of realized (gains) losses to sales and cost of sales 4 13 6 22 Ending balance (23 ) (32 ) (23 ) (32 ) Accumulated other comprehensive income (loss) $ (1,273 ) (1,582 ) (1,273 ) (1,582 ) Activity above is shown net of income taxes for the three and six months ended March 31, 2016 and 2015, respectively, as follows: amortization of pension and postretirement deferred actuarial losses: $(14), $(15), $(28) and $(30); deferral of cash flow hedging gains (losses): $4, $ -, $6 and $17; reclassification of realized cash flow hedging (gains) losses: $(8), $(3), $(13) and $(4).

Pension & Postretirement Expens

Pension & Postretirement Expenses	6 Months Ended
	Mar. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Pension And Postretirement Plan Expenses	Total periodic pension and postretirement expense is summarized below (in millions): Three Months Ended Six Months Ended 2015 2016 2015 2016 Service cost $ 27 23 54 45 Interest cost 61 49 121 99 Expected return on plan assets (92 ) (88 ) (184 ) (176 ) Net amortization 42 41 85 81 Total $ 38 25 76 49 Beginning in 2016, the Company refined the method used to determine the service and interest cost components of pension expense for its U.S. plans. The specific spot rates along the yield curve, rather than the single weighted-average rate previously used, are now applied to the projected cash flows to provide more precise measurement of these costs. This is a change in estimate which has been accounted for prospectively in the 2016 financial statements. The discount rates used to measure service and interest cost were 4.6 percent and 3.5 percent , respectively, compared with the single weighted-average rate of 4.35 percent which would have been used. The change will reduce interest and service cost by a total of $38 million ( $0.04 per share) for fiscal 2016 compared with the cost measured using the weighted-average rate.

Other Deductions, Net

Other Deductions, Net	6 Months Ended
	Mar. 31, 2016
Other Income and Expenses [Abstract]
Other Deductions, Net	Other deductions, net are summarized below (in millions): Three Months Ended Six Months Ended 2015 2016 2015 2016 Amortization of intangibles $ 53 46 108 97 Rationalization of operations 44 15 53 28 Separation costs — 31 — 55 Other 39 30 39 56 Total $ 136 122 200 236 Separation costs relate to the planned portfolio repositioning actions. See Note 11. Foreign currency transactions were unfavorable by $19 million for the second quarter and $46 million year-to-date. The second quarter of 2015 included $20 million of litigation costs.

Rationalization Of Operations

Rationalization Of Operations	6 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Rationalization Of Operations	Rationalization of operations expense reflects costs associated with the Company’s ongoing efforts to improve operational efficiency and deploy assets globally in order to remain competitive on a worldwide basis. The Company expects full year 2016 rationalization expense to be in the range of $70 to $80 million . This includes $28 million incurred to date, as well as costs to complete actions initiated before the end of the second quarter and actions anticipated to be approved and initiated during the remainder of the year. Costs for the three and six months ended March 31, 2016 largely relate to restructuring of the global cost structure consistent with the current level of economic activity, as well as the redeployment of resources for future growth. Rationalization of operations expense by segment is provided below (in millions): Three Months Ended Six Months Ended 2015 2016 2015 2016 Process Management $ 22 9 25 13 Industrial Automation 2 1 4 4 Network Power 13 2 14 6 Climate Technologies 4 2 6 3 Commercial & Residential Solutions 3 1 4 2 Total $ 44 15 53 28 Details of the change in the liability for rationalization during the six months ended March 31, 2016 follow (in millions): Sept 30, 2015 Expense Paid/Utilized Mar 31, 2016 Severance and benefits $ 105 14 69 50 Lease and other contract terminations 1 2 2 1 Vacant facility and other shutdown costs 3 4 5 2 Start-up and moving costs 3 8 9 2 Total $ 112 28 85 55

Business Segment Information

Business Segment Information	6 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Reporting	Summarized information about the Company's results of operations by business segment follows (in millions): Three Months Ended March 31, Six Months Ended March 31, Sales Earnings Sales Earnings 2015 2016 2015 2016 2015 2016 2015 2016 Process Management $ 2,042 1,828 299 265 4,141 3,634 691 536 Industrial Automation 1,034 870 144 116 2,186 1,678 308 211 Network Power 1,063 1,018 34 83 2,182 2,069 113 167 Climate Technologies 982 995 170 188 1,882 1,782 296 297 Commercial & Residential Solutions 465 394 91 92 945 786 194 177 5,586 5,105 738 744 11,336 9,949 1,602 1,388 Differences in accounting methods 53 58 111 113 Corporate and other 853 (148 ) 742 (298 ) Eliminations/Interest (186 ) (177 ) (40 ) (46 ) (349 ) (308 ) (86 ) (92 ) Total $ 5,400 4,928 1,604 608 10,987 9,641 2,369 1,111 Industrial Automation intersegment sales for the quarters ended March 31, 2016 and 2015 were $164 million and $167 million , respectively, and year-to-date $280 million and $312 million . Corporate and other in 2015 included a $932 million gain on the power transmission solutions divestiture. See Note 11. Corporate and other for 2016 includes higher incentive stock compensation expense of $46 million in the second quarter and $67 million year-to-date due primarily to an increasing stock price in the current year compared with a decreasing price in the prior year, and overlap of award programs. Corporate and other also includes separation costs of $31 million in the second quarter and $55 million year-to-date.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Mar. 31, 2016
Disclosure Text Block Supplement [Abstract]
Acquisitions and Divestitures	In June 2015, the Company announced plans to spin off its network power systems business through a tax-free distribution to shareholders and to explore strategic alternatives, including potential sale, for its power generation and motors, drives, and residential storage businesses. These businesses together accounted for approximately $6.4 billion , $400 million and $500 million of consolidated 2015 sales, pretax earnings and cash flow, respectively. The Company currently estimates it will incur separation costs throughout 2016 to effect the portfolio repositioning as follows: approximately $250 to $300 million of expense for income taxes related to reorganizing the ownership structures of these businesses, investment banking, legal, consulting and other costs; and approximately $50 million in capitalized costs, including debt issuance costs and the separation of information technology systems. In the second quarter of 2016, the Company incurred separation costs of $56 million , or $0.09 per share, which is comprised of income tax expense of $28 million and other costs of $31 million ( $28 million after-tax). Year-to-date the Company incurred costs of $78 million , or $0.12 per share, which is comprised of income tax expense of $28 million and other costs of $55 million ( $50 million after-tax). In addition, the Company continues to discuss the potential sale of the network power systems business with interested parties. There can be no assurance that the Company will not recognize a goodwill impairment charge or incur a loss on sale in connection with the separation of these businesses. With regard to the evaluation of strategic alternatives for the power generation and motors, drives, and residential storage businesses, it is uncertain whether the review process will result in any transaction. See the Company's 2015 Annual Report on Form 10-K for further information. In the second quarter of 2015, the Company sold its power transmission solutions business to Regal Beloit Corporation for $1.4 billion and recognized a pretax gain of $932 million ( $528 million after-tax, $0.77 per share).

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	6 Months Ended
	Mar. 31, 2016
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Schedule Of Basic And Diluted Earnings Per Share Reconciliation	Three Months Ended Six Months Ended 2015 2016 2015 2016 Basic shares outstanding 680.9 642.0 686.1 646.0 Dilutive shares 3.2 2.7 3.3 2.6 Diluted shares outstanding 684.1 644.7 689.4 648.6

Other Financial Information (Ta

Other Financial Information (Tables)	6 Months Ended
	Mar. 31, 2016
Disclosure Text Block [Abstract]
Inventories	Sept 30, 2015 Mar 31, 2016 Inventories Finished products $ 680 701 Raw materials and work in process 1,167 1,249 Total $ 1,847 1,950
Property, Plant And Equipment, Net	Property, plant and equipment, net Property, plant and equipment, at cost $ 8,931 9,034 Less: Accumulated depreciation 5,346 5,511 Total $ 3,585 3,523
Goodwill By Business Segment	Goodwill by business segment Process Management $ 2,790 2,790 Industrial Automation 1,031 1,027 Network Power 2,144 2,137 Climate Technologies 492 491 Commercial & Residential Solutions 196 197 Total $ 6,653 6,642
Accrued Expenses	Sept 30, 2015 Mar 31, 2016 Accrued expenses include the following Employee compensation $ 597 517 Customer advanced payments $ 450 495 Product warranty $ 167 172
Other Liabilities	Sept 30, 2015 Mar 31, 2016 Other liabilities Pension liabilities $ 662 579 Deferred income taxes 408 453 Postretirement liabilities, excluding current portion 199 197 Other 602 548 Total $ 1,871 1,777

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule Of Derivative Instruments	The following gains and losses are included in earnings and other comprehensive income (OCI) for the three and six months ended March 31, 2016 and 2015 (in millions): Into Earnings Into OCI 2nd Quarter Six Months 2nd Quarter Six Months Gains (Losses) Location 2015 2016 2015 2016 2015 2016 2015 2016 Commodity Cost of sales $ (8 ) (12 ) (10 ) (20 ) (7 ) 1 (19 ) (10 ) Foreign currency Sales, cost of sales 1 (9 ) — (15 ) 4 (13 ) (27 ) (7 ) Foreign currency Other deductions, net 31 (10 ) 14 (7 ) Total $ 24 (31 ) 4 (42 ) (3 ) (12 ) (46 ) (17 )
Fair Value Measurements	Valuations of derivative contract positions are summarized below (in millions): September 30, 2015 March 31, 2016 Assets Liabilities Assets Liabilities Foreign Currency $ 30 65 16 45 Commodity $ — 29 — 19

Equity Roll Forward (Tables)

Equity Roll Forward (Tables)	6 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of Stockholders' Equity	The change in equity for the first six months of 2016 is shown below (in millions): Common Stockholders' Equity Noncontrolling Interests in Subsidiaries Total Equity Balance at September 30, 2015 $ 8,081 47 8,128 Net earnings 718 11 729 Other comprehensive income (loss) 35 1 36 Cash dividends (616 ) (8 ) (624 ) Net purchases of common stock (526 ) — (526 ) Balance at March 31, 2016 $ 7,692 51 7,743

Accumulated Other Comprehensi23

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Activity in accumulated other comprehensive income (loss) for the three and six months ended March 31, 2016 and 2015 is shown below (in millions): Three Months Ended Six Months Ended 2015 2016 2015 2016 Foreign currency translation Beginning balance $ (133 ) (775 ) 171 (622 ) Other comprehensive income (loss) (427 ) 124 (731 ) (29 ) Ending balance (560 ) (651 ) (560 ) (651 ) Pension and postretirement Beginning balance (718 ) (926 ) (746 ) (952 ) Amortization of deferred actuarial losses into earnings 27 27 55 53 Divestiture of business 1 — 1 — Ending balance (690 ) (899 ) (690 ) (899 ) Cash flow hedges Beginning balance (24 ) (37 ) — (43 ) Deferral of gains (losses) arising during the period (3 ) (8 ) (29 ) (11 ) Reclassification of realized (gains) losses to sales and cost of sales 4 13 6 22 Ending balance (23 ) (32 ) (23 ) (32 ) Accumulated other comprehensive income (loss) $ (1,273 ) (1,582 ) (1,273 ) (1,582 ) Activity above is shown net of income taxes for the three and six months ended March 31, 2016 and 2015, respectively, as follows: amortization of pension and postretirement deferred actuarial losses: $(14), $(15), $(28) and $(30); deferral of cash flow hedging gains (losses): $4, $ -, $6 and $17; reclassification of realized cash flow hedging (gains) losses: $(8), $(3), $(13) and $(4).

Pension & Postretirement Expe24

Pension & Postretirement Expenses (Tables)	6 Months Ended
	Mar. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Summary of Pension and Postretirement Plan Expenses	Total periodic pension and postretirement expense is summarized below (in millions): Three Months Ended Six Months Ended 2015 2016 2015 2016 Service cost $ 27 23 54 45 Interest cost 61 49 121 99 Expected return on plan assets (92 ) (88 ) (184 ) (176 ) Net amortization 42 41 85 81 Total $ 38 25 76 49

Other Deductions, Net (Tables)

Other Deductions, Net (Tables)	6 Months Ended
	Mar. 31, 2016
Other Income and Expenses [Abstract]
Schedule of Other Deductions, net	Other deductions, net are summarized below (in millions): Three Months Ended Six Months Ended 2015 2016 2015 2016 Amortization of intangibles $ 53 46 108 97 Rationalization of operations 44 15 53 28 Separation costs — 31 — 55 Other 39 30 39 56 Total $ 136 122 200 236

Rationalization Of Operations (

Rationalization Of Operations (Tables)	6 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Rationalization Of Operations By Segment	Rationalization of operations expense by segment is provided below (in millions): Three Months Ended Six Months Ended 2015 2016 2015 2016 Process Management $ 22 9 25 13 Industrial Automation 2 1 4 4 Network Power 13 2 14 6 Climate Technologies 4 2 6 3 Commercial & Residential Solutions 3 1 4 2 Total $ 44 15 53 28
Change In Liability For Rationalization Costs	Details of the change in the liability for rationalization during the six months ended March 31, 2016 follow (in millions): Sept 30, 2015 Expense Paid/Utilized Mar 31, 2016 Severance and benefits $ 105 14 69 50 Lease and other contract terminations 1 2 2 1 Vacant facility and other shutdown costs 3 4 5 2 Start-up and moving costs 3 8 9 2 Total $ 112 28 85 55

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Results Of Operations By Business Segment	Summarized information about the Company's results of operations by business segment follows (in millions): Three Months Ended March 31, Six Months Ended March 31, Sales Earnings Sales Earnings 2015 2016 2015 2016 2015 2016 2015 2016 Process Management $ 2,042 1,828 299 265 4,141 3,634 691 536 Industrial Automation 1,034 870 144 116 2,186 1,678 308 211 Network Power 1,063 1,018 34 83 2,182 2,069 113 167 Climate Technologies 982 995 170 188 1,882 1,782 296 297 Commercial & Residential Solutions 465 394 91 92 945 786 194 177 5,586 5,105 738 744 11,336 9,949 1,602 1,388 Differences in accounting methods 53 58 111 113 Corporate and other 853 (148 ) 742 (298 ) Eliminations/Interest (186 ) (177 ) (40 ) (46 ) (349 ) (308 ) (86 ) (92 ) Total $ 5,400 4,928 1,604 608 10,987 9,641 2,369 1,111

Weighted Average Common Share28

Weighted Average Common Shares (Schedule Of Basic And Diluted Earnings Per Share Reconciliation) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Basic shares outstanding	642	680.9	646	686.1
Dilutive shares	2.7	3.2	2.6	3.3
Diluted shares outstanding	644.7	684.1	648.6	689.4

Other Financial Information (De

Other Financial Information (Details) - USD ($) $ in Millions	Mar. 31, 2016	Sep. 30, 2015
Other Financial Information [Line Items]
Finished products	$ 701	$ 680
Raw materials and work in process	1,249	1,167
Total	1,950	1,847
Property, plant and equipment, at cost	9,034	8,931
Less: Accumulated depreciation	5,511	5,346
Total	3,523	3,585
Goodwill, net	6,642	6,653
Goodwill, gross	7,288	7,299
Employee compensation	517	597
Customer advanced payments	495	450
Product warranty	172	167
Pension liabilities	579	662
Deferred income taxes	453	408
Postretirement liabilities, excluding current portion	197	199
Other	548	602
Total	1,777	1,871
Process Management [Member]
Other Financial Information [Line Items]
Goodwill, net	2,790	2,790
Industrial Automation [Member]
Other Financial Information [Line Items]
Goodwill, net	1,027	1,031
Network Power [Member]
Other Financial Information [Line Items]
Goodwill, net	2,137	2,144
Goodwill, accumulated impairment losses	646	646
Climate Technologies [Member]
Other Financial Information [Line Items]
Goodwill, net	491	492
Commercial & Residential Solutions [Member]
Other Financial Information [Line Items]
Goodwill, net	$ 197	$ 196

Financial Instruments (Schedule

Financial Instruments (Schedule Of Derivative Instruments) (Details) lb in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016USD ($)lb	Mar. 31, 2015USD ($)	Mar. 31, 2016USD ($)lb	Mar. 31, 2015USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) to earnings	$ (31)	$ 24	$ (42)	$ 4
Gain (loss) to other comprehensive income	(12)	(3)	(17)	(46)
Commodity Contract [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) to other comprehensive income	1	(7)	(10)	(19)
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified to earnings	(12)	(8)	(20)	(10)
Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of foreign currency hedge positions	1,500		1,500
Foreign Exchange Contract [Member] | Other deductions, net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) to earnings	(10)	31	(7)	14
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) to other comprehensive income	(13)	4	(7)	(27)
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales, Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified to earnings	(9)	$ 1	(15)	$ 0
All Commodity Hedges [Member] [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of commodities hedged	$ 125		$ 125
Copper and Aluminum [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Weight in pounds of copper and aluminum commodity hedges | lb	54		54

Financial Instruments (Fair Val

Financial Instruments (Fair Value Measurements) (Details) - USD ($) $ in Millions	Mar. 31, 2016	Sep. 30, 2015
Derivatives, Fair Value [Line Items]
Fair value of long-term debt compared with carrying value	$ (407)
Collateral posted to counterparties	0
Collateral held from counterparties	0
Maximum collateral that could have been required	52
Fair Value, Inputs, Level 2 [Member]
Derivatives, Fair Value [Line Items]
Fair value of long-term debt	4,736
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	16	$ 30
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Other Liabilities [Member] | Fair Value, Inputs, Level 2 [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	45	65
Cash Flow Hedging [Member] | Commodity Contract [Member] | Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	0	0
Cash Flow Hedging [Member] | Commodity Contract [Member] | Other Liabilities [Member] | Fair Value, Inputs, Level 2 [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	$ 19	$ 29

Equity Roll Forward (Schedule O

Equity Roll Forward (Schedule Of Change In Equity) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 8,128
Net earnings common stockholders	$ 369	$ 973	718	$ 1,498
Noncontrolling interests in earnings	8	6	11	10
Net earnings	377	979	729	1,508
Other comprehensive income (loss)	157	$ (398)	36	$ (699)
Cash dividends			(624)
Net purchases of common stock			(526)
Ending balance	7,743		7,743
Parent Company [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			8,081
Other comprehensive income (loss)			35
Cash dividends			(616)
Net purchases of common stock			(526)
Ending balance	7,692		7,692
Noncontrolling Interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			47
Other comprehensive income (loss)			1
Cash dividends			(8)
Net purchases of common stock			0
Ending balance	$ 51		$ 51

Accumulated Other Comprehensi33

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Accumulated other comprehensive income [Roll Forward]
Beginning balance			$ 8,128
Ending balance	$ 7,743		7,743
Accumulated other comprehensive income (loss)	(1,582)	$ (1,273)	(1,582)	$ (1,273)	$ (1,617)
Foreign currency translation [Member]
Accumulated other comprehensive income [Roll Forward]
Beginning balance	(775)	(133)	(622)	171
Other comprehensive income (loss)	124	(427)	(29)	(731)
Ending balance	(651)	(560)	(651)	(560)
Pension and post retirement [Member]
Accumulated other comprehensive income [Roll Forward]
Beginning balance	(926)	(718)	(952)	(746)
Amortization of deferred actuarial losses into earnings	27	27	53	55
Divestiture of business	0	1	0	1
Ending balance	(899)	(690)	(899)	(690)
Cash Flow Hedges [Member]
Accumulated other comprehensive income [Roll Forward]
Beginning balance	(37)	(24)	(43)	0
Deferral of gains (losses) arising during the period	(8)	(3)	(11)	(29)
Reclassification of realized (gains) losses to sales and cost of sales	13	4	22	6
Ending balance	$ (32)	$ (23)	$ (32)	$ (23)

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Income (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Pension and post retirement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of deferred actuarial losses, tax	$ (14)	$ (15)	$ (28)	$ (30)
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Deferred cash flow hedging gains (losses), tax	4	0	6	17
Reclass of deferred cash flow hedging (losses), tax	$ (8)	$ (3)	$ (13)	$ (4)

Pension & Postretirement Expe35

Pension & Postretirement Expenses (Summary Of Net Periodic Pension And Net Postretirement Plan Expenses) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2016
Pension And Postretirement Plan Expenses [Line Items]
Service cost	$ 23	$ 27	$ 45	$ 54
Interest cost	49	61	99	121
Expected return on plan assets	(88)	(92)	(176)	(184)
Net amortization	41	42	81	85
Total	$ 25	$ 38	$ 49	$ 76
Change in Assumptions for Pension Plans [Member] | Scenario, Forecast [Member]
Pension And Postretirement Plan Expenses [Line Items]
Discount rate used to measure service cost for pension expense					4.60%
Discount rate used to measure interest cost for pension expense					3.50%
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate					4.35%
Change in estimated service cost and interest cost for pension expense					$ (38)
Change in estimated service cost and interest cost for pension expense per share					$ (0.04)

Other Deductions, Net (Schedule

Other Deductions, Net (Schedule Of Other Deductions, Net) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Other deductions, net [Line Items]
Amortization of intangibles	$ 46	$ 53	$ 97	$ 108
Rationalization of operations	15	44	28	53
Separation costs	31	0	55	0
Other	30	39	56	39
Total	122	136	236	$ 200
Change in gain (loss) from foreign currency transactions	$ (19)		$ (46)
Litigation costs		$ 20

Rationalization Of Operations37

Rationalization Of Operations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2016
Restructuring Reserve [Roll Forward]
Beginning rationalization of operations liability			$ 112
Rationalization of operations, expense	$ 15	$ 44	28	$ 53
Rationalization of operations, paid			85
Ending rationalization of operations liability	55		55
Severance and benefits [Member]
Restructuring Reserve [Roll Forward]
Beginning rationalization of operations liability			105
Rationalization of operations, expense			14
Rationalization of operations, paid			69
Ending rationalization of operations liability	50		50
Lease and other contract terminations [Member]
Restructuring Reserve [Roll Forward]
Beginning rationalization of operations liability			1
Rationalization of operations, expense			2
Rationalization of operations, paid			2
Ending rationalization of operations liability	1		1
Vacant facility and other shutdown costs [Member]
Restructuring Reserve [Roll Forward]
Beginning rationalization of operations liability			3
Rationalization of operations, expense			4
Rationalization of operations, paid			5
Ending rationalization of operations liability	2		2
Start-up and moving costs [Member]
Restructuring Reserve [Roll Forward]
Beginning rationalization of operations liability			3
Rationalization of operations, expense			8
Rationalization of operations, paid			9
Ending rationalization of operations liability	2		2
Process Management [Member]
Restructuring Reserve [Roll Forward]
Rationalization of operations, expense	9	22	13	25
Industrial Automation [Member]
Restructuring Reserve [Roll Forward]
Rationalization of operations, expense	1	2	4	4
Network Power [Member]
Restructuring Reserve [Roll Forward]
Rationalization of operations, expense	2	13	6	14
Climate Technologies [Member]
Restructuring Reserve [Roll Forward]
Rationalization of operations, expense	2	4	3	6
Commercial & Residential Solutions [Member]
Restructuring Reserve [Roll Forward]
Rationalization of operations, expense	$ 1	$ 3	$ 2	$ 4
Minimum [Member] | Scenario, Forecast [Member]
Restructuring Reserve [Roll Forward]
Expected fiscal year rationalization expense					$ 70
Maximum [Member] | Scenario, Forecast [Member]
Restructuring Reserve [Roll Forward]
Expected fiscal year rationalization expense					$ 80

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Net sales	$ 4,928	$ 5,400	$ 9,641	$ 10,987
Earnings before income taxes	608	1,604	1,111	2,369
Gain on divestiture of business	0	932	0	932
Increase (decrease) in incentive stock compensation expense	46		67
Pretax separation costs	31	0	55	0
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net sales	5,105	5,586	9,949	11,336
Earnings before income taxes	744	738	1,388	1,602
Operating Segments [Member] | Process Management [Member]
Segment Reporting Information [Line Items]
Net sales	1,828	2,042	3,634	4,141
Earnings before income taxes	265	299	536	691
Operating Segments [Member] | Industrial Automation [Member]
Segment Reporting Information [Line Items]
Net sales	870	1,034	1,678	2,186
Earnings before income taxes	116	144	211	308
Operating Segments [Member] | Network Power [Member]
Segment Reporting Information [Line Items]
Net sales	1,018	1,063	2,069	2,182
Earnings before income taxes	83	34	167	113
Operating Segments [Member] | Climate Technologies [Member]
Segment Reporting Information [Line Items]
Net sales	995	982	1,782	1,882
Earnings before income taxes	188	170	297	296
Operating Segments [Member] | Commercial & Residential Solutions [Member]
Segment Reporting Information [Line Items]
Net sales	394	465	786	945
Earnings before income taxes	92	91	177	194
Differences in accounting methods [Member]
Segment Reporting Information [Line Items]
Earnings before income taxes	58	53	113	111
Corporate and other [Member]
Segment Reporting Information [Line Items]
Earnings before income taxes	(148)	853	(298)	742
Intersegment Eliminations/Interest [Member]
Segment Reporting Information [Line Items]
Net sales	(177)	(186)	(308)	(349)
Earnings before income taxes	(46)	(40)	(92)	(86)
Intersegment Eliminations [Member] | Industrial Automation [Member]
Segment Reporting Information [Line Items]
Net sales	$ (164)	$ (167)	$ (280)	$ (312)

Acquisitions and Divestitures A

Acquisitions and Divestitures Acquisitions & Divestitures (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Approximate sales	$ 4,928	$ 5,400	$ 9,641	$ 10,987
Approximate pretax earnings	608	1,604	1,111	2,369
Approximate cash flows			1,206	929
Total after-tax separation costs	$ 56		$ 78
Total after-tax separation costs per share	$ 0.09		$ 0.12
Income tax expense related to planned strategic repositioning actions	$ 28		$ 28
Pretax separation costs	31	0	55	0
After-tax separation costs	28		50
Proceeds from divestiture of business			0	1,391
Gain on divestiture of business	$ 0	$ 932	0	932
Gain on divestiture of business, after tax			$ 0	528
Planned Spinoff of Network Power and Potential Sales of Motors and Drives, Power Generation and Storage Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Approximate sales						$ 6,400
Approximate pretax earnings						400
Approximate cash flows						$ 500
Planned Spinoff of Network Power and Potential Sales of Motors and Drives, Power Generation and Storage Business [Member] | Scenario, Forecast [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Estimated capitalized costs, including debt issuance costs and the separation of information technology systems					$ 50
Planned Spinoff of Network Power and Potential Sales of Motors and Drives, Power Generation and Storage Business [Member] | Scenario, Forecast [Member] | Minimum [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Estimated income taxes related to reorganizing the ownership structures and investment banking, legal consulting and other costs					250
Planned Spinoff of Network Power and Potential Sales of Motors and Drives, Power Generation and Storage Business [Member] | Scenario, Forecast [Member] | Maximum [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Estimated income taxes related to reorganizing the ownership structures and investment banking, legal consulting and other costs					$ 300
Power Transmission Solutions [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of business				1,400
Gain on divestiture of business				932
Gain on divestiture of business, after tax				$ 528
Gain on divestiture impact on diluted earnings per share				$ 0.77