Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 31, 2017 | Mar. 31, 2017 | |
Document and Entity Information [Abstract] | |||
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-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 641,819,838 | ||
Entity Public Float | $ 38.4 |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales | $ 15,264 | $ 14,522 | $ 16,249 |
Costs and expenses: | |||
Cost of sales | 8,860 | 8,260 | 9,241 |
Selling, general and administrative expenses | 3,618 | 3,464 | 3,735 |
Gains on divestitures of businesses | 0 | 0 | 1,039 |
Other deductions, net | 286 | 294 | 330 |
Interest expense, net of interest income of: 2017, $36; 2016, $27; 2015, $23 | 165 | 188 | 175 |
Earnings from continuing operations before income taxes | 2,335 | 2,316 | 3,807 |
Income taxes | 660 | 697 | 1,267 |
Earnings from continuing operations | 1,675 | 1,619 | 2,540 |
Discontinued operations, net of tax: 2017, $671; 2016, $269; 2015, $161 | (125) | 45 | 193 |
Net earnings | 1,550 | 1,664 | 2,733 |
Less: Noncontrolling interests in earnings of subsidiaries | 32 | 29 | 23 |
Net earnings common stockholders | 1,518 | 1,635 | 2,710 |
Earnings from continuing operations common stockholders | 1,643 | 1,590 | 2,517 |
Earnings from discontinued operations common stockholders | $ (125) | $ 45 | $ 193 |
Basic earnings from continuing operations per common share | $ 2.54 | $ 2.46 | $ 3.72 |
Basic earnings from discontinued operations per common share | (0.19) | 0.07 | 0.29 |
Basic earnings per common share | 2.35 | 2.53 | 4.01 |
Diluted earnings from continuing operations per common share | 2.54 | 2.45 | 3.71 |
Diluted earnings from discontinued operations per common share | (0.19) | 0.07 | 0.28 |
Diluted earnings per common share | $ 2.35 | $ 2.52 | $ 3.99 |
Consolidated Statements Of Ear3
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | |||
Interest income | $ 36 | $ 27 | $ 23 |
Discontinued operations, tax | $ 671 | $ 269 | $ 161 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net earnings | $ 1,550 | $ 1,664 | $ 2,733 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | 441 | (188) | (794) |
Pension and postretirement | 500 | (210) | (206) |
Cash flow hedges | 37 | 18 | (43) |
Total other comprehensive income (loss) | 978 | (380) | (1,043) |
Comprehensive income | 2,528 | 1,284 | 1,690 |
Less: Noncontrolling interests in comprehensive income of subsidiaries | 30 | 31 | 22 |
Comprehensive income common stockholders | $ 2,498 | $ 1,253 | $ 1,668 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
ASSETS | ||
Cash and equivalents | $ 3,062 | $ 3,182 |
Receivables, less allowances of $91 in 2017 and $92 in 2016 | 3,072 | 2,701 |
Inventories | 1,696 | 1,208 |
Other current assets | 349 | 669 |
Current assets held-for-sale | 73 | 2,200 |
Total current assets | 8,252 | 9,960 |
Property, plant and equipment, net | 3,321 | 2,931 |
Other assets | ||
Goodwill | 5,316 | 3,909 |
Other intangible assets | 1,890 | 902 |
Other | 634 | 200 |
Noncurrent assets held-for-sale | 176 | 3,830 |
Total other assets | 8,016 | 8,841 |
Total assets | 19,589 | 21,732 |
LIABILITIES AND EQUITY | ||
Short-term borrowings and current maturities of long-term debt | 862 | 2,584 |
Accounts payable | 1,776 | 1,517 |
Accrued expenses | 2,286 | 2,126 |
Income taxes | 65 | 180 |
Current liabilities held-for-sale | 56 | 1,601 |
Total current liabilities | 5,045 | 8,008 |
Long-term debt | 3,794 | 4,051 |
Other liabilities | 1,975 | 1,729 |
Noncurrent liabilities held-for-sale | 5 | 326 |
Equity | ||
Common stock, $0.50 par value per share; authorized, 1,200,000,000 shares; issued, 953,354,012 shares; outstanding, 641,691,971 shares in 2017 and 642,796,490 shares in 2016 | 477 | 477 |
Additional paid-in-capital | 297 | 205 |
Retained earnings | 21,995 | 21,716 |
Accumulated other comprehensive income (loss) | (1,019) | (1,999) |
Common stockholders' equity before treasury stock | 21,750 | 20,399 |
Less: Cost of common stock in treasury, 311,662,041 shares in 2017 and 310,557,522 shares in 2016 | 13,032 | 12,831 |
Common stockholders’ equity | 8,718 | 7,568 |
Noncontrolling interests in subsidiaries | 52 | 50 |
Total equity | 8,770 | 7,618 |
Total liabilities and equity | $ 19,589 | $ 21,732 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Allowance for doubtful accounts receivables | $ 91 | $ 92 |
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 | 641,691,971 | 642,796,490 |
Treasury stock, shares | 311,662,041 | 310,557,522 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in-capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interests in subsidiaries |
Stockholders' equity, Beginning balance at Sep. 30, 2014 | $ 161 | $ 19,867 | $ (575) | $ (9,811) | $ 48 | ||
Statement [Roll Forward] | |||||||
Stock plans | 31 | ||||||
Purchase of noncontrolling interests | (22) | ||||||
Net earnings common stockholders | $ 2,710 | 2,710 | |||||
Dividends paid (per share: 2017, $1.92; 2016, $1.90; 2015, $1.88) | (1,269) | (23) | |||||
Foreign currency translation | (794) | (793) | |||||
Pension and postretirement | (206) | (206) | |||||
Cash flow hedges | (43) | (43) | |||||
Purchases | (2,487) | ||||||
Issued under stock plans | 41 | ||||||
Net earnings | 23 | ||||||
Other comprehensive income (loss) | (1,043) | (1) | |||||
Stockholders' equity, Ending balance at Sep. 30, 2015 | 8,128 | $ 477 | 170 | 21,308 | (1,617) | (12,257) | 47 |
Statement [Roll Forward] | |||||||
Common stockholders' equity | 8,081 | ||||||
Stock plans | 35 | ||||||
Purchase of noncontrolling interests | 0 | ||||||
Net earnings common stockholders | 1,635 | 1,635 | |||||
Dividends paid (per share: 2017, $1.92; 2016, $1.90; 2015, $1.88) | (1,227) | (28) | |||||
Foreign currency translation | (188) | (190) | |||||
Pension and postretirement | (210) | (210) | |||||
Cash flow hedges | 18 | 18 | |||||
Purchases | (601) | ||||||
Issued under stock plans | 27 | ||||||
Net earnings | 29 | ||||||
Other comprehensive income (loss) | (380) | 2 | |||||
Stockholders' equity, Ending balance at Sep. 30, 2016 | 7,618 | 477 | 205 | 21,716 | (1,999) | (12,831) | 50 |
Statement [Roll Forward] | |||||||
Common stockholders' equity | 7,568 | ||||||
Stock plans | 92 | ||||||
Purchase of noncontrolling interests | 0 | ||||||
Net earnings common stockholders | 1,518 | 1,518 | |||||
Dividends paid (per share: 2017, $1.92; 2016, $1.90; 2015, $1.88) | (1,239) | (28) | |||||
Foreign currency translation | 441 | 443 | |||||
Pension and postretirement | 500 | 500 | |||||
Cash flow hedges | 37 | 37 | |||||
Purchases | (400) | ||||||
Issued under stock plans | 199 | ||||||
Net earnings | 32 | ||||||
Other comprehensive income (loss) | 978 | (2) | |||||
Stockholders' equity, Ending balance at Sep. 30, 2017 | 8,770 | $ 477 | $ 297 | $ 21,995 | $ (1,019) | $ (13,032) | $ 52 |
Statement [Roll Forward] | |||||||
Common stockholders' equity | $ 8,718 |
Consolidated Statements Of Equ8
Consolidated Statements Of Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends paid (per share) | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.475 | $ 0.475 | $ 0.475 | $ 0.475 | $ 1.92 | $ 1.90 | $ 1.88 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | |||
Net earnings | $ 1,550 | $ 1,664 | $ 2,733 |
(Earnings) Loss from discontinued operations, net of tax | 125 | (45) | (193) |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 636 | 568 | 573 |
Changes in operating working capital | 160 | 93 | (181) |
Pension funding | (45) | (66) | (53) |
Gains on divestitures of businesses, after tax | 0 | 0 | (611) |
Income taxes paid on divestiture gains | 0 | 0 | (424) |
Other, net | 264 | 285 | 196 |
Cash from continuing operations | 2,690 | 2,499 | 2,040 |
Cash from discontinued operations | (778) | 382 | 489 |
Cash provided by operating activities | 1,912 | 2,881 | 2,529 |
Investing activities | |||
Capital expenditures | (476) | (447) | (588) |
Purchases of businesses, net of cash and equivalents acquired | (2,990) | (132) | (324) |
Divestitures of businesses | 39 | 0 | 1,812 |
Other, net | (106) | 30 | (221) |
Cash from continuing operations | (3,533) | (549) | 679 |
Cash from discontinued operations | 5,047 | (77) | (88) |
Cash provided by (used in) investing activities | 1,514 | (626) | 591 |
Financing activities | |||
Net increase (decrease) in short-term borrowings | (1,635) | (34) | 1,116 |
Proceeds from short-term borrowings greater than three months | 0 | 1,264 | 2,515 |
Payments of short-term borrowings greater than three months | (90) | (1,174) | (3,286) |
Proceeds from long-term debt | 0 | 0 | 1,000 |
Payments of long-term debt | (254) | (254) | (504) |
Dividends paid | (1,239) | (1,227) | (1,269) |
Purchases of common stock | (400) | (601) | (2,501) |
Other, net | 27 | (19) | (19) |
Cash used in financing activities | (3,591) | (2,045) | (2,948) |
Effect of exchange rate changes on cash and equivalents | 45 | (82) | (267) |
Increase (Decrease) in cash and equivalents | (120) | 128 | (95) |
Beginning cash and equivalents | 3,182 | 3,054 | 3,149 |
Ending cash and equivalents | 3,062 | 3,182 | 3,054 |
Changes in operating working capital | |||
Receivables | (25) | 162 | 241 |
Inventories | 32 | 58 | (11) |
Other current assets | (12) | (4) | (140) |
Accounts payable | 135 | (22) | (256) |
Accrued expenses | 74 | (57) | (4) |
Income taxes | (44) | (44) | (11) |
Total changes in operating working capital | $ 160 | $ 93 | $ (181) |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Statement Presentation The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from these estimates. Certain prior year amounts have been reclassified to conform with current year presentation. In the first quarter of 2017, the Company adopted updates to ASC Subtopic 835-30, Interest-Imputation of Interest , which require presentation of debt issuance costs as a deduction from the related debt liability rather than within other assets. These updates were adopted on a retrospective basis and did not materially impact the Company’s financial statements. In the fourth quarter of 2017, the Company adopted updates to ASC 718, Compensation - Stock Compensation , which require all excess tax benefits and deficiencies related to share-based payments to be recognized in income tax expense rather than through additional paid-in-capital, and to be presented as operating cash flows instead of financing. These updates did not materially impact the Company's financial statements. In the fourth quarter of 2017, the Company adopted updates to ASC 740, Income Taxes , which require noncurrent presentation of all deferred tax assets and liabilities on the balance sheet. These updates were adopted on a prospective basis and resulted in the reclassification of current deferred tax assets and liabilities to noncurrent presentation. In the fourth quarter of 2017, the Company adopted updates to ASC 820, Fair Value Measurement , which require investments measured using the net asset value per share practical expedient to be removed from the fair value hierarchy and separately reported when making disclosures. These updates did not change the determination of fair value for any investments. Adoption affected disclosure presentation only; there was no impact on the Company’s financial results. In the first quarter of 2015, the Company adopted updates to ASC 205, Presentation of Financial Statements , and ASC 360, Property, Plant and Equipment , regarding the reporting of discontinued operations. These updates raised the threshold for reporting discontinued operations to a strategic business shift having a major effect on an entity's operations and financial results. The updates also added disclosures for disposals of business units qualifying for discontinued presentation, and for some dispositions that do not qualify as discontinued operations but are still considered individually significant components of the entity. In 2017, the Company completed the divestitures of its network power systems, and power generation, motors and drives businesses. The results of operations for these businesses were reported within discontinued operations for all years presented, and the assets and liabilities were reflected as held-for-sale. See Note 4. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its controlled affiliates. Intercompany transactions, profits and balances are eliminated in consolidation. Investments of 20 percent to 50 percent of the voting shares of other entities are accounted for by the equity method. Investments in publicly traded companies of less than 20 percent are carried at fair value, with changes in fair value reflected in accumulated other comprehensive income. Investments in nonpublicly traded companies of less than 20 percent are carried at cost. Foreign Currency Translation The functional currency for most of the Company's non-U.S. subsidiaries is the local currency. Adjustments resulting from translating local currency financial statements into U.S. dollars are reflected in accumulated other comprehensive income. Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less. Inventories Inventories are stated at the lower of cost or market. The majority of inventory is valued based on standard costs, which approximate average costs, while the remainder is principally valued on a first-in, first-out basis. Cost standards are revised at the beginning of each fiscal year. The annual effect of resetting standards plus any operating variances incurred during each period are allocated to inventories and recognized in cost of sales as product is sold. Following are the components of inventory as of September 30: 2016 2017 Finished products $ 382 560 Raw materials and work in process 826 1,136 Total inventories $ 1,208 1,696 The increase is primarily due to the valves & controls acquisition. See Note 3. Fair Value Measurement ASC 820, Fair Value Measurement , establishes a formal hierarchy and framework for measuring certain financial statement items at fair value, and requires disclosures about fair value measurements and the reliability of valuation inputs. Under ASC 820, measurement assumes the transaction to sell an asset or transfer a liability occurs in the principal or at least the most advantageous market for that asset or liability. Within the hierarchy, Level 1 instruments use observable market prices for an identical item in active markets and have the most reliable valuations. Level 2 instruments are valued through broker/dealer quotation or other approaches using market-observable inputs for similar items in active markets, including forward and spot prices, interest rates and volatilities. Level 3 instruments are valued using inputs not observable in an active market, such as company-developed future cash flow estimates, and are considered the least reliable. Valuations for all of the Company's financial instruments fall within Level 2. The fair value of the Company's long-term debt is Level 2, estimated using current interest rates and pricing from financial institutions and other market sources for debt with similar maturities and characteristics. Property, Plant And Equipment The Company records investments in land, buildings, and machinery and equipment at cost. Depreciation is computed principally using the straight-line method over estimated service lives, which for principal assets are 30 to 40 years for buildings and 8 to 12 years for machinery and equipment. Long-lived tangible assets are reviewed for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. Impairment losses are recognized based on estimated fair values if the sum of estimated future undiscounted cash flows of the related assets is less than the carrying values. The components of property, plant and equipment as of September 30 follow: 2016 2017 Land $ 210 295 Buildings 1,867 2,043 Machinery and equipment 4,932 5,175 Construction in progress 318 360 Property, plant and equipment, at cost 7,327 7,873 Less: Accumulated depreciation 4,396 4,552 Property, plant and equipment, net $ 2,931 3,321 The increase is primarily due to the valves & controls acquisition. See Note 3. Goodwill and Other Intangible Assets Assets and liabilities acquired in business combinations are accounted for using the acquisition method and recorded at their respective fair values. Substantially all goodwill is assigned to the reporting unit that acquires a business. A reporting unit is an operating segment as defined in ASC 280, Segment Reporting , or a business one level below an operating segment if discrete financial information for that business unit is prepared and regularly reviewed by the segment manager. The Company conducts annual impairment tests of goodwill in the fourth quarter. If an initial assessment indicates it is more likely than not goodwill might be impaired, it is evaluated by comparing the reporting unit's estimated fair value to its carrying value. Goodwill is also tested for impairment between annual tests if events or circumstances indicate the fair value of a unit may be less than its carrying value. If the carrying amount exceeds the estimated fair value, impairment is recognized to the extent that recorded goodwill exceeds the implied fair value of that goodwill. Estimated fair values of reporting units are Level 3 measures and are developed generally under an income approach that discounts estimated future cash flows using risk-adjusted interest rates. All of the Company's identifiable intangible assets are subject to amortization on a straight-line basis over their estimated useful lives. Identifiable intangibles consist of intellectual property such as patents and trademarks, customer relationships and capitalized software. Identifiable intangibles are also subject to evaluation for potential impairment if events or circumstances indicate the carrying amount may not be recoverable. See Note 7. Product Warranty Warranties vary by product line and are competitive for the markets in which the Company operates. Warranties generally extend for a period of one to two years from the date of sale or installation. Provisions for warranty are determined primarily based on historical warranty cost as a percentage of sales or a fixed amount per unit sold based on failure rates, adjusted for specific problems that may arise. Product warranty expense is less than one percent of sales. Revenue Recognition The Company recognizes a large majority of its revenues through the sale of manufactured products and records the sale when products are shipped or delivered, title and risk of loss pass to the customer, and collection is reasonably assured. Less than ten percent of the Company's revenues are recognized using the percentage-of-completion method as performance occurs, and revenue from software sales is recognized in accordance with ASC 985-605. Management believes that all relevant criteria and conditions are considered when recognizing revenue. Sales arrangements sometimes involve delivering multiple elements. In these instances, the revenue assigned to each element is based on vendor-specific objective evidence, third-party evidence or a management estimate of the relative selling price. Revenue is recognized for delivered elements if they have value to the customer on a stand-alone basis and performance related to the undelivered items is probable and substantially in the Company's control, or the undelivered elements are inconsequential or perfunctory and there are no unsatisfied contingencies related to payment. Approximately five percent of the Company's revenues from continuing operations arise from qualifying sales arrangements that include the delivery of multiple elements, principally in the Automation Solutions segment. The vast majority of these deliverables are tangible products, with a smaller portion attributable to installation, service or maintenance. Generally, contract duration is short term, and cancellation, termination or refund provisions apply only in the event of contract breach and have historically not been invoked. Derivatives and Hedging In the normal course of business, the Company is exposed to changes in interest rates, foreign currency exchange rates and commodity prices due to its worldwide presence and diverse business profile. The Company's foreign currency exposures relate to transactions denominated in currencies that differ from the functional currencies of its business units, primarily in euros, Mexican pesos, Singapore dollars and Indian rupees. Primary commodity exposures are price fluctuations on forecasted purchases of copper and aluminum and related products. As part of the Company's risk management strategy, derivative instruments are selectively used in an effort to minimize the impact of these exposures. Foreign exchange forwards and options are utilized to hedge foreign currency exposures impacting sales or cost of sales transactions, firm commitments and the fair value of assets and liabilities, while swap and option contracts may be used to minimize the effect of commodity price fluctuations on the cost of sales. All derivatives are associated with specific underlying exposures and the Company does not hold derivatives for trading or speculative purposes. The duration of hedge positions is generally two years or less. All derivatives are accounted for under ASC 815, Derivatives and Hedging , and recognized at fair value. For derivatives hedging variability in future cash flows, the effective portion of any gain or loss is deferred in stockholders' equity and recognized when the underlying hedged transaction impacts earnings. The majority of the Company's derivatives that are designated as hedges and qualify for deferral accounting are cash flow hedges. For derivatives hedging the fair value of existing assets or liabilities, both the gain or loss on the derivative and the offsetting loss or gain on the hedged item are recognized in earnings each period. Currency fluctuations on non-U.S. dollar obligations that have been designated as hedges of non-U.S. dollar net asset exposures are reported in equity. To the extent that any hedge is not fully effective at offsetting changes in the underlying hedged item, there could be a net earnings impact. The Company also uses derivatives to hedge economic exposures that do not receive deferral accounting under ASC 815. The underlying exposures for these hedges relate primarily to purchases of commodity-based components used in the Company's manufacturing processes, and the revaluation of certain foreign-currency-denominated assets and liabilities. Gains or losses from the ineffective portion of any hedge, as well as any gains or losses on derivative instruments not designated as hedges, are recognized in the income statement immediately. Counterparties to derivative arrangements are companies with high credit ratings, and the Company has bilateral collateral arrangements with them for which credit rating-based posting thresholds vary depending on the arrangement. If credit ratings on the Company's debt fall below preestablished levels, counterparties can require immediate full collateralization on all instruments in net liability positions. No collateral was posted with counterparties and none was held by the Company at year end. If contractual thresholds had been exceeded, the maximum collateral the Company could have been required to post was $4 . The Company can also demand full collateralization of instruments in net asset positions should any of the Company's counterparties' credit ratings fall below certain thresholds. Risk from credit loss when derivatives are in asset positions is not considered material. The Company has master netting arrangements in place with its counterparties that allow the offsetting of certain derivative-related amounts receivable and payable when settlement occurs in the same period. Accordingly, counterparty balances are netted in the consolidated balance sheet and are reported in other current assets or accrued expenses as appropriate, depending on positions with counterparties as of the balance sheet date. See Note 8. Income Taxes The provision for income taxes is based on pretax income reported in the consolidated statements of earnings and tax rates currently enacted in each jurisdiction. Certain income and expense items are recognized in different time periods for financial reporting and income tax filing purposes, and deferred income taxes are provided for the effect of temporary differences. The Company also provides for U.S. federal income taxes, net of available foreign tax credits, on earnings intended to be repatriated from non-U.S. locations. No provision has been made for U.S. income taxes on approximately $4.9 billion of undistributed earnings of non-U.S. subsidiaries as of September 30, 2017 , as these earnings are considered permanently invested or otherwise indefinitely retained for continuing international operations. Recognition of U.S. taxes on undistributed non-U.S. earnings would be triggered by a management decision to repatriate those earnings. Determination of the amount of taxes that might be paid on these undistributed earnings if eventually remitted is not practicable. See Note 14. |
Weighted Average Common Shares
Weighted Average Common Shares | 12 Months Ended |
Sep. 30, 2017 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |
Weighted Average Common Shares | WEIGHTED-AVERAGE COMMON SHARES Basic earnings per common share consider only the weighted-average of common shares outstanding while diluted earnings per common share also consider the dilutive effects of stock options and incentive shares. Options to purchase approximately 4.5 million , 13.3 million and 5.9 million shares of common stock were excluded from the computation of diluted earnings per share in 2017 , 2016 and 2015 , respectively, as the effect would have been antidilutive. Earnings allocated to participating securities were inconsequential for all years presented. Reconciliations of weighted-average shares for basic and diluted earnings per common share follow (shares in millions): 2015 2016 2017 Basic shares outstanding 673.3 644.0 642.1 Dilutive shares 3.2 2.8 1.3 Diluted shares outstanding 676.5 646.8 643.4 |
Acquisitions And Divestitures
Acquisitions And Divestitures | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions And Divestitures | ACQUISITIONS AND DIVESTITURES On April 28, 2017, the Company completed the acquisition of Pentair's valves & controls business for $2.960 billion , net of cash acquired of $207 , subject to certain post-closing adjustments. This business, with annualized sales of approximately $1.4 billion , is a manufacturer of control, isolation and pressure relief valves and actuators, and complements the Valves, Actuators & Regulators product offering within Automation Solutions. The Company recognized goodwill of $1,472 ( none of which is expected to be tax deductible), and other identifiable intangible assets of $1,045 , primarily customer relationships and intellectual property with a weighted-average life of approximately fifteen years. The Company also acquired two smaller businesses in the Automation Solutions segment. Total cash paid for all businesses was $3.0 billion , net of cash acquired. The purchase price of the valves & controls business was preliminarily allocated to assets and liabilities as follows. Valuations of acquired assets and liabilities are in-process and subject to refinement. Accounts receivable $ 350 Inventory 525 Property, plant & equipment 355 Goodwill 1,472 Intangibles 1,045 Other assets 289 Total assets 4,036 Accounts payable 119 Other current liabilities 300 Deferred taxes and other liabilities 657 Cash paid, net of cash acquired $ 2,960 Results of operations for 2017 included sales of $600 and a net loss of $97 , $ 0.15 per share, including restructuring expense of $25 and intangibles amortization of $29 . These results also included first year pretax acquisition accounting charges related to inventory of $74 and backlog of $19 , or a total of $93 ( $65 after-tax, $ 0.10 per share), which are reported in Corporate and other. See Note 18. Pro Forma Financial Information The following pro forma consolidated condensed financial results of operations are presented as if the acquisition of the valves & controls business occurred on October 1, 2015. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time. 2016 2017 Net sales $ 16,201 16,112 Net earnings from continuing operations common stockholders $ 1,482 1,692 Diluted earnings per share from continuing operations $ 2.28 2.62 The pro forma results for 2016 were adjusted to include first year acquisition accounting charges related to inventory and backlog of $ 122 in 2017. The pro forma 2016 results also include acquisition costs of $ 52 , while the 2017 pro forma results were adjusted to exclude these charges. On October 2, 2017, the Company sold its residential storage business for $200 in cash, subject to post-closing adjustments, and expects to recognize a loss of approximately $40 in 2018 due to income taxes resulting from nondeductible goodwill. The Company expects to realize approximately $140 in after-tax cash proceeds from the sale. This business, with sales of $298 and pretax earnings of $15 in 2017, is a leader in home organization and storage systems, and was reported within the Tools & Home Products segment. Assets and liabilities were classified as held-for-sale as of September 30, 2017. The Company acquired six businesses in 2016, four in Automation Solutions and two in Climate Technologies. Total cash paid for these businesses was $132 , net of cash acquired. Annualized sales for these businesses were approximately $51 in 2016. The Company recognized goodwill of $83 ( $27 of which is expected to be tax deductible) and other identifiable intangible assets of $50 , primarily customer relationships and intellectual property with a weighted-average life of approximately nine years. The Company completed eight acquisitions in 2015, seven in Automation Solutions and one in Tools & Home Products, which had combined annualized sales of approximately $115 . Total cash paid for all businesses was $324 , net of cash acquired. The Company recognized goodwill of $178 ( $42 of which is expected to be tax deductible) and other intangible assets of $128 , primarily customer relationships and intellectual property with a weighted-average life of approximately ten years. In January 2015, the Company completed the sale of its mechanical power transmission solutions business for $1.4 billion , and recognized a pretax gain from the transaction of $939 ( $532 after-tax, $0.78 per share). Assets and liabilities sold were as follows: current assets, $182 (accounts receivable, inventories, other current assets); other assets, $374 (property, plant and equipment, goodwill, other noncurrent assets); accrued expenses, $56 (accounts payable, other current liabilities); and other liabilities, $41 . Proceeds from the divestiture were used for share repurchase. This business was previously reported in the former Industrial Automation segment, and had partial year sales in 2015 of $189 and related pretax earnings of $21 . Power transmission solutions designs and manufactures market-leading couplings, bearings, conveying components and gearing and drive components, and provides supporting services and solutions. On September 30, 2015, the Company sold its InterMetro commercial storage business for $411 in cash and recognized a pretax gain from the transaction of $100 ( $79 after-tax, $0.12 per share). This business had annual sales of $288 and pretax earnings of $42 in 2015 and was reported in the former Commercial & Residential Solutions segment. Assets and liabilities sold were as follows: current assets, $62 (accounts receivable, inventories, other current assets); other assets, $292 (property, plant and equipment, goodwill, other noncurrent assets); current liabilities, $34 (accounts payable, other current liabilities); and other liabilities, $9 . InterMetro is a leading manufacturer and supplier of storage and transport products in the food service, commercial products and health care industries. The results of operations of the acquired businesses discussed above have been included in the Company's consolidated results of operations since the respective dates of acquisition. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS In 2017, the Company completed the previously announced strategic actions to streamline its portfolio and drive growth in its core businesses. On November 30, 2016, the Company completed the sale of its network power systems business for $4.0 billion in cash and retained a subordinated interest in distributions, contingent upon the equity holders first receiving a threshold return on their initial investment. This business comprised the former Network Power segment. Additionally, on January 31, 2017, the Company completed the sale of its power generation, motors and drives business for approximately $1.2 billion , subject to post-closing adjustments. This business was previously reported in the former Industrial Automation segment. The results of operations for these businesses were reported within discontinued operations for all years presented, and the assets and liabilities were reflected as held-for-sale. The financial results of the network power systems business and power generation, motors and drives business reported as discontinued operations for the years ending September 30, 2017 , 2016 and 2015 , were as follows: Network Power Systems Power Generation, Motors and Drives Total 2015 2016 2017 2015 2016 2017 2015 2016 2017 Net sales $ 4,426 4,378 630 1,668 1,368 407 6,094 5,746 1,037 Cost of sales 2,810 2,708 394 1,244 1,033 307 4,054 3,741 701 SG&A 1,143 1,101 180 306 269 83 1,449 1,370 263 Other deductions, net 222 172 (515 ) 15 149 42 237 321 (473 ) Earnings (Loss) before income taxes 251 397 571 103 (83 ) (25 ) 354 314 546 Income taxes 134 218 577 27 51 94 161 269 671 Earnings (Loss), net of tax $ 117 179 (6 ) 76 (134 ) (119 ) 193 45 (125 ) In 2017, the net loss from discontinued operations of $125 , $0.19 per share, included an after-tax gain on the divestiture of the network power systems business of $125 ( $519 pretax), a $173 after-tax loss ( $36 pretax loss) on the divestiture of the power generation, motors and drives business, income tax expense of $109 for repatriation of sales proceeds, and lower expense of $32 primarily due to ceasing depreciation and amortization for the discontinued businesses held-for-sale. Discontinued operations income of $45 , $0.07 per share, in 2016 included earnings from operations of $344 and costs to execute the portfolio repositioning of $299 . These costs are comprised of income tax expense of $143 for repatriation of cash from these businesses, reorganization of their legal structures prior to sale, and basis differences for book and tax, as well as costs for legal, consulting, investment banking and other expenses of $77 . In addition, net earnings for 2016 included a loss of $103 to write down the power generation, motors and drives business to the sales price less costs to sell, and lower expense of $24 due to ceasing depreciation and amortization for the discontinued businesses held-for-sale. Discontinued operations income of $193 , $0.28 per share, in 2015 included earnings from operations of $245 and separation costs of $52 , comprised of income tax expense of $42 and fees of $10 . The aggregate carrying amounts of the major classes of assets and liabilities classified as held-for-sale as of September 30, 2016 are summarized as follows: Network Power Systems Power Generation, Motors and Drives Total 2016 2016 2016 Assets Receivables, less allowances $ 1,202 290 1,492 Inventories 381 197 578 Property, plant & equipment, net 352 259 611 Goodwill 2,111 580 2,691 Other assets 581 77 658 Total assets held-for-sale $ 4,627 1,403 6,030 Liabilities Accounts payable $ 664 176 840 Other current liabilities 620 141 761 Deferred taxes and other noncurrent liabilities 227 99 326 Total liabilities held-for-sale $ 1,511 416 1,927 The net cash from operating activities and from investing activities for the network power systems business and the power generation, motors and drives business for the years ending September 30, 2017 , 2016 and 2015 , were as follows: Network Power Systems Power Generation, Total 2015 2016 2017 2015 2016 2017 2015 2016 2017 Cash from operating activities $ 378 343 (615 ) 111 39 (163 ) 489 382 (778 ) Cash from investing activities $ (48 ) (33 ) 3,952 (40 ) (44 ) 1,095 (88 ) (77 ) 5,047 Operating cash flow used by discontinued operations was $778 for 2017, which primarily included payments of approximately $700 for income taxes on completion of the divestitures and repatriation of cash, cash used by operations and other costs. Operating cash flow from discontinued operations in 2016 was net of payments of $179 for separation costs. |
Other Deductions, Net
Other Deductions, Net | 12 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Deductions, Net | OTHER DEDUCTIONS, NET Other deductions, net are summarized as follows: 2015 2016 2017 Amortization of intangibles (intellectual property and customer relationships) $ 94 84 136 Restructuring costs 138 96 78 Other 98 114 72 Total $ 330 294 286 Other is composed of several items, including foreign currency transaction gains and losses, bad debt expense, equity investment income and losses, litigation and other items. The decrease in other for 2017 is due to favorable foreign currency transactions comparisons of $78 (unfavorable in the prior year), partially offset by higher acquisition/divestiture costs of $24 and the comparative impact of a $21 gain from payments received related to dumping duties in 2016. The increase in 2016 is primarily due to an unfavorable foreign currency transactions impact of $67 , partially offset by lower litigation costs of $30 and the dumping duties gain. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring Charges [Abstract] | |
Restructuring costs | RESTRUCTURING COSTS Each year the Company incurs costs to size its businesses to levels appropriate for current economic conditions and to continually improve its cost structure and operational efficiency, deploy assets globally, and remain competitive on a worldwide basis. Costs result from numerous individual actions implemented across the Company's various operating units on an ongoing basis and can include costs for moving facilities to best-cost locations, restarting plants after relocation or geographic expansion to better serve local markets, reducing forcecount or the number of facilities, exiting certain product lines, and other costs resulting from asset deployment decisions. By category, shutdown costs include severance and benefits, stay bonuses, lease and other contract termination costs and asset write-downs. Vacant facility costs include security, maintenance, utilities and other costs. Start-up and moving costs include the costs of relocating fixed assets and employee training and relocation. Restructuring expenses were $78 , $96 and $138 , respectively, for 2017 , 2016 and 2015 . The 2017 restructuring expense included $25 related to the acquired valves & controls business. Restructuring activity in 2015 and 2016 was initiated in connection with the slowdown in global capital spending and the Company's strategic portfolio repositioning activities. The Company currently expects 2018 restructuring expense to be approximately $80 , including costs to complete actions initiated before the end of 2017 and for actions anticipated to be approved and initiated during 2018 . Restructuring costs by business segment follows: 2015 2016 2017 Automation Solutions $ 102 80 63 Climate Technologies 20 5 10 Tools & Home Products 11 2 2 Commercial & Residential Solutions 31 7 12 Corporate 5 9 3 Total $ 138 96 78 Costs incurred in 2017 primarily related to the deployment of resources to better serve local markets and higher growth areas, and the integration of the valves & controls business. In 2016 and 2015 costs primarily related to the reduction and selective repositioning of the Company’s cost structure to address global economic weakness and in connection with the portfolio repositioning through facilities and forcecount rationalization in Europe and North America, primarily in Automation Solutions. In 2017 , restructuring activities included actions to exit 10 production or office facilities worldwide and eliminate approximately 1,200 positions. Expenses incurred in 2016 and 2015 included actions to exit 19 and 12 facilities, and eliminate approximately 1,900 and 3,100 positions, respectively. The change in the liability for restructuring costs during the years ended September 30 follows: 2016 Expense Utilized/Paid 2017 Severance and benefits $ 44 49 33 60 Lease and other contract terminations 5 4 5 4 Asset write-downs — 7 7 — Vacant facility and other shutdown costs 3 5 7 1 Start-up and moving costs 2 13 15 — Total $ 54 78 67 65 2015 Expense Utilized/Paid 2016 Severance and benefits $ 64 66 86 44 Lease and other contract terminations 1 9 5 5 Asset write-downs — 4 4 — Vacant facility and other shutdown costs 3 7 7 3 Start-up and moving costs 2 10 10 2 Total $ 70 96 112 54 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangibles | GOODWILL AND OTHER INTANGIBLES Purchases of businesses are accounted for under the acquisition method, with substantially all goodwill assigned to the reporting unit that acquires the business. Under an impairment test performed annually, if the carrying amount of a reporting unit exceeds its estimated fair value, impairment is recognized to the extent that the carrying amount of the unit's goodwill exceeds the implied fair value of the goodwill. Fair values of reporting units are Level 3 measures which are estimated generally using an income approach that discounts future cash flows using risk-adjusted interest rates, as well as earnings multiples or other techniques as warranted. Fair values are subject to changes in underlying economic conditions. The change in the carrying value of goodwill by business segment follows: Automation Solutions Climate Technologies Tools & Home Products Commercial & Residential Solutions Total Balance, September 30, 2015 $ 3,138 513 196 709 3,847 Acquisitions 39 44 — 44 83 Foreign currency translation and other (17 ) (4 ) — (4 ) (21 ) Balance, September 30, 2016 3,160 553 196 749 3,909 Acquisitions 1,486 — — — 1,486 Divestitures — — (142 ) (142 ) (142 ) Foreign currency translation and other 58 2 3 5 63 Balance, September 30, 2017 $ 4,704 555 57 612 5,316 The gross carrying amount and accumulated amortization of identifiable intangible assets by major class follow: Customer Relationships Intellectual Property Capitalized Software Total 2016 2017 2016 2017 2016 2017 2016 2017 Gross carrying amount $ 580 1,392 730 1,012 1,071 1,137 2,381 3,541 Less: Accumulated amortization 286 361 393 435 800 855 1,479 1,651 Net carrying amount $ 294 1,031 337 577 271 282 902 1,890 Intangible asset amortization expense for 2017 , 2016 and 2015 was $222 , $177 and $174 , respectively. Based on intangible asset balances as of September 30, 2017 , amortization expense is expected to approximate $261 in 2018 , $226 in 2019 , $201 in 2020 , $168 in 2021 and $148 in 2022 . The increase in goodwill and intangibles is primarily due to the valves & controls acquisition. See Note 3. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Sep. 30, 2017 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Hedging Activities As of September 30, 2017 , the notional amount of foreign currency hedge positions was approximately $1.8 billion , while commodity hedge contracts totaled approximately $115 (primarily 49 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 September 30, 2017 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. Amounts included in earnings and other comprehensive income follow: Gain (Loss) to Earnings Gain (Loss) to OCI 2015 2016 2017 2015 2016 2017 Location Commodity Cost of sales $ (24 ) (35 ) 10 (43 ) (9 ) 25 Foreign currency Sales, cost of sales (12 ) (41 ) (15 ) (61 ) (38 ) 30 Foreign currency Other deductions, net 14 (27 ) (39 ) Total $ (22 ) (103 ) (44 ) (104 ) (47 ) 55 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 in all years shown. Fair Value Measurement The estimated fair value of long-term debt was $4,385 and $4,806 , respectively, as of September 30, 2017 and 2016 , which exceeded the carrying value by $321 and $488 , respectively. As of September 30, 2017 , the fair value of commodity contracts and foreign currency contracts was reported in other current assets and accrued expenses. Valuations of derivative contract positions as of September 30 follow: 2016 2017 Assets Liabilities Assets Liabilities Foreign currency $ 7 49 26 18 Commodity $ 2 4 12 — |
Short-Term Borrowings And Lines
Short-Term Borrowings And Lines Of Credit | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings And Lines Of Credit | SHORT-TERM BORROWINGS AND LINES OF CREDIT Short-term borrowings and current maturities of long-term debt are as follows: 2016 2017 Current maturities of long-term debt $ 267 270 Commercial paper 2,317 592 Total $ 2,584 862 Interest rate for weighted-average short-term borrowings at year end 0.5% 1.1% The Company routinely issues commercial paper as a source of short-term financing. In April 2014, the Company entered into a $3.5 billion five-year revolving backup credit facility with various banks, which replaced a December 2010 $2.75 billion facility. The credit facility is maintained to support general corporate purposes, including commercial paper borrowing. The Company has not incurred any borrowings under this or previous facilities. The credit facility contains no financial covenants and is not subject to termination based on a change of credit rating or material adverse changes. The facility is unsecured and may be accessed under various interest rate and currency denomination alternatives at the Company's option. Fees to maintain the facility are immaterial. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | LONG-TERM DEBT The details of long-term debt follow: 2016 2017 5.125% notes due December 2016 $ 250 — 5.375% notes due October 2017 250 250 5.25% notes due October 2018 400 400 5.0% notes due April 2019 250 250 4.875% notes due October 2019 500 500 4.25% notes due November 2020 300 300 2.625% notes due December 2021 500 500 2.625% notes due February 2023 500 500 3.15% notes due June 2025 500 500 6.0% notes due August 2032 250 250 6.125% notes due April 2039 250 250 5.25% notes due November 2039 300 300 Other 68 64 Long-term debt 4,318 4,064 Less: Current maturities 267 270 Total, net $ 4,051 3,794 Long-term debt maturing during each of the four years after 2018 is $683 , $516 , $299 and $500 , respectively. Total interest paid on all debt was approximately $192 , $209 and $196 in 2017 , 2016 and 2015 , respectively. During the year, the Company repaid $250 of 5.125% notes that matured in December 2016. In 2016 , the Company repaid $250 of 4.75% notes that matured in October 2015. The Company maintains a universal shelf registration statement on file with the SEC under which it can issue debt securities, preferred stock, common stock, warrants, share purchase contracts or share purchase units without a predetermined limit. Securities can be sold in one or more separate offerings with the size, price and terms to be determined at the time of sale. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | RETIREMENT PLANS Retirement plans expense includes the following components: U.S. Plans Non-U.S. Plans 2015 2016 2017 2015 2016 2017 Defined benefit plans: Service cost (benefits earned during the period) $ 69 59 60 37 26 19 Interest cost 182 148 134 46 39 30 Expected return on plan assets (303 ) (296 ) (290 ) (58 ) (52 ) (56 ) Net amortization and other 174 166 211 20 17 22 Net periodic pension expense 122 77 115 45 30 15 Defined contribution plans 111 104 96 61 56 47 Total retirement plans expense $ 233 181 211 106 86 62 The increase in net periodic pension expense in 2017 is attributable to higher amortization compared to the prior year. Beginning in 2016, the Company refined the method used to determine the service and interest cost components of pension expense for its U.S. retirement plans. The specific spot rates along the yield curve, rather than the single weighted-average rate previously used, are 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 beginning with the 2016 financial statements. The change reduced the 2016 service and interest cost by a total of $38 compared with the cost measured using the weighted-average approach. Net periodic pension expense includes $3 , $12 and $14 and defined contribution expense includes $6 , $34 and $33 , for 2017 , 2016 and 2015 , respectively, related to discontinued operations. For defined contribution plans, the Company makes cash contributions based on plan requirements, which are expensed as incurred. The Company transitioned from defined benefit to defined contribution retirement plans in 2016. The principal U.S. defined benefit pension plan is closed to employees hired after January 1, 2016, and current employees not meeting combined age and years of service criteria ceased accruing benefits effective October 1, 2016. Affected employees were enrolled in an enhanced defined contribution plan. The impact of these actions had an inconsequential impact on the Company's financial statements for all years presented. Over time, defined benefit plan expense will decline while defined contribution plan expense will increase, with an expectation of reduced earnings volatility. All of the following tables include defined benefit plans related to continuing and discontinued operations. Details of the changes in the actuarial present value of the projected benefit obligation and the fair value of plan assets for defined benefit pension plans follow: U.S. Plans Non-U.S. Plans 2016 2017 2016 2017 Projected benefit obligation, beginning $ 4,263 4,696 1,248 1,320 Service cost 59 60 26 19 Interest cost 148 134 39 30 Actuarial (gain) loss 565 (144 ) 275 (83 ) Benefits paid (191 ) (201 ) (31 ) (29 ) Settlements (151 ) (125 ) (82 ) (25 ) Acquisitions (Divestitures), net — (55 ) (6 ) 163 Foreign currency translation and other 3 4 (149 ) 94 Projected benefit obligation, ending $ 4,696 4,369 1,320 1,489 Fair value of plan assets, beginning $ 3,928 4,110 935 909 Actual return on plan assets 491 516 155 61 Employer contributions 31 20 35 25 Benefits paid (191 ) (201 ) (31 ) (29 ) Settlements (151 ) (125 ) (82 ) (25 ) Acquisitions (Divestitures), net — (30 ) — 232 Foreign currency translation and other 2 2 (103 ) 63 Fair value of plan assets, ending $ 4,110 4,292 909 1,236 Net amount recognized in the balance sheet $ (586 ) (77 ) (411 ) (253 ) Location of net amount recognized in the balance sheet: Noncurrent asset $ — 154 1 43 Current liability (11 ) (11 ) (7 ) (11 ) Noncurrent liability (565 ) (220 ) (279 ) (285 ) Net liability held-for-sale (10 ) — (126 ) — Net amount recognized in the balance sheet (586 ) (77 ) (411 ) (253 ) Pretax accumulated other comprehensive loss $ (1,527 ) (923 ) (389 ) (238 ) Approximately $142 of the $1,161 of pretax losses deferred in accumulated other comprehensive income (loss) at September 30, 2017 will be amortized to expense in 2018 . As of September 30, 2017 , U.S. pension plans were underfunded by $77 in total, including unfunded plans totaling $201 . The non-U.S. plans were underfunded by $253 , including unfunded plans totaling $215 . As of the September 30, 2017 and 2016 measurement dates, the plans' total accumulated benefit obligation was $5,607 and $5,729 , respectively. Also as of the measurement dates, the total projected benefit obligation, accumulated benefit obligation and fair value of plan assets for individual plans with accumulated benefit obligations in excess of plan assets were $1,182 , $1,088 and $663 , respectively, for 2017 , and $5,951 , $5,678 and $4,958 , respectively, for 2016 . Future benefit payments by U.S. plans are estimated to be $212 in 2018 , $220 in 2019 , $228 in 2020 , $235 in 2021 , $241 in 2022 and $1,272 in total over the five years 2023 through 2027. Based on foreign currency exchange rates as of September 30, 2017 , future benefit payments by non-U.S. plans are estimated to be $56 in 2018, $57 in 2019, $59 in 2020, $63 in 2021, $68 in 2022 and $390 in total over the five years 2023 through 2027. The Company expects to contribute approximately $60 to its retirement plans in 2018 . The weighted-average assumptions used in the valuation of pension benefits follow: U.S. Plans Non-U.S. Plans 2015 2016 2017 2015 2016 2017 Net pension expense Discount rate used to determine service cost 4.25 % 4.60 % 3.75 % 3.6 % 3.3 % 2.3 % Discount rate used to determine interest cost 4.25 % 3.50 % 2.90 % 3.6 % 3.3 % 2.3 % Expected return on plan assets 7.50 % 7.50 % 7.25 % 6.6 % 6.4 % 6.2 % Rate of compensation increase 3.25 % 3.25 % 3.25 % 3.4 % 3.4 % 3.2 % Benefit obligations Discount rate 4.35 % 3.50 % 3.76 % 3.3 % 2.3 % 2.6 % Rate of compensation increase 3.25 % 3.25 % 3.25 % 3.4 % 3.2 % 3.4 % The discount rate for the U.S. retirement plans was 3.76 percent as of September 30, 2017 . An actuarially developed, company-specific yield curve is used to determine the discount rate. The expected return on plan assets assumption is determined by reviewing the investment returns of the plans for the past 10 years plus longer-term historical returns of an asset mix approximating the Company's asset allocation targets, and periodically comparing these returns to expectations of investment advisors and actuaries to determine whether long-term future returns are expected to differ significantly from the past. The Company's asset allocations at September 30, 2017 and 2016 , and weighted-average target allocations follow: U.S. Plans Non-U.S. Plans 2016 2017 Target 2016 2017 Target Equity securities 66 % 67 % 60-70% 51 % 52 % 50-60% Debt securities 29 28 25-35 36 38 25-35 Other 5 5 3-10 13 10 10-20 Total 100 % 100 % 100% 100 % 100 % 100% The primary objective for the investment of pension assets is to secure participant retirement benefits by earning a reasonable rate of return. Plan assets are invested consistent with the provisions of the prudence and diversification rules of ERISA and with a long-term investment horizon. The Company continuously monitors the value of assets by class and routinely rebalances to remain within target allocations. The equity strategy is to minimize concentrations of risk by investing primarily in a mix of companies that are diversified across geographies, market capitalization, style, sectors and industries worldwide. The approach for bonds emphasizes investment-grade corporate and government debt with maturities matching a portion of the longer duration pension liabilities. The bonds strategy also includes a high-yield element which is generally shorter in duration. For diversification, a small portion of U.S. plan assets is allocated to private equity partnerships and real asset fund investments, providing opportunities for above market returns. Leveraging techniques are not used and the use of derivatives in any fund is limited and inconsequential. The fair values of defined benefit pension assets as of September 30, organized by asset class and by the fair value hierarchy of ASC 820, Fair Value Measurement, follow. Investments valued based on the net asset value (NAV) of fund units held, as derived from the fair value of the underlying assets, are excluded from the fair value hierarchy. Level 1 Level 2 Level 3 Measured at NAV Total % 2017 U.S. equities $ 1,059 5 338 357 1,759 32 % International equities 724 6 — 739 1,469 27 % Emerging market equities — — — 276 276 5 % Corporate bonds — 514 — 283 797 14 % Government bonds 3 369 — 399 771 14 % High-yield bonds — — — 132 132 2 % Other 132 6 113 73 324 6 % Total $ 1,918 900 451 2,259 5,528 100 % 2016 U.S. equities $ 1,081 4 292 301 1,678 33 % International equities 627 8 — 599 1,234 25 % Emerging market equities — — — 257 257 5 % Corporate bonds — 476 — 172 648 13 % Government bonds 3 392 — 357 752 15 % High-yield bonds — — — 122 122 2 % Other 144 2 113 69 328 7 % Total $ 1,855 882 405 1,877 5,019 100 % Asset Classes U.S. equities reflect companies domiciled in the U.S., including multinational companies. International equities are comprised of companies domiciled in developed nations outside the U.S. Emerging market equities are comprised of companies domiciled in portions of Asia, Eastern Europe and Latin America. Corporate bonds represent investment-grade debt of issuers primarily from the U.S. Government bonds include investment-grade instruments issued by federal, state and local governments, primarily in the U.S. High-yield bonds include noninvestment-grade debt from a diverse group of developed market issuers. Other includes cash, interests in mixed asset funds investing in commodities, natural resources, agriculture, real estate and infrastructure funds, life insurance contracts (U.S.), and shares in certain general investment funds of financial institutions or insurance arrangements (non-U.S.) that typically ensure no market losses or provide for a small minimum return guarantee. Fair Value Hierarchy Categories Valuations of Level 1 assets for all classes are based on quoted closing market prices from the principal exchanges where the individual securities are traded. Cash is valued at cost, which approximates fair value. Debt securities categorized as Level 2 assets are generally valued based on independent broker/dealer bids or by comparison to other debt securities having similar durations, yields and credit ratings. U.S. equity securities classified as Level 3 are fund investments in private companies. Valuation techniques and inputs for these assets include discounted cash flow analysis, earnings multiple approaches, recent transactions, transfer restrictions, prevailing discount rates, volatilities, credit ratings and other factors. In the Other class, interests in mixed asset funds are Level 2, and U.S. life insurance contracts and non-U.S. general fund investments and insurance arrangements are Level 3. Investments measured at net asset value are primarily nonexchange-traded commingled or collective funds where the underlying securities have observable prices available from active markets. Details of the changes in value for Level 3 assets follow: 2016 2017 Level 3, beginning $ 371 405 Gains (Losses) on assets held 18 49 Gains (Losses) on assets sold (20 ) (28 ) Purchases, sales and settlements, net 36 25 Level 3, ending $ 405 451 |
Postretirement Plans
Postretirement Plans | 12 Months Ended |
Sep. 30, 2017 | |
Postemployment Benefits [Abstract] | |
Postretirement Plans | POSTRETIREMENT PLANS The Company sponsors unfunded postretirement benefit plans (primarily health care) for certain U.S. retirees and their dependents. The components of net postretirement benefits expense for the years ended September 30 follow: 2015 2016 2017 Service cost $ 1 1 1 Interest cost 9 8 6 Net amortization (22 ) (21 ) (19 ) Net postretirement expense $ (12 ) (12 ) (12 ) Details of the changes in actuarial present value of accumulated postretirement benefit obligations follow: 2016 2017 Benefit obligation, beginning $ 213 206 Service cost 1 1 Interest cost 8 6 Actuarial (gain) loss — (24 ) Benefits paid (16 ) (13 ) Divestitures — (2 ) Benefit obligation, ending (recognized in balance sheet) $ 206 174 As of September 30, 2017 there were $141 of deferred actuarial gains in accumulated other comprehensive income, of which approximately $19 will be amortized into earnings in 2018 . The discount rates used to measure the benefit obligation as of September 30, 2017 , 2016 and 2015 were 3.45 percent , 3.10 percent and 3.80 percent , respectively. The health care cost trend rate used for both 2018 and 2017 is assumed to be 7.5 percent initially, and declining to 5.0 percent over the subsequent eleven years. A one percentage point increase or decrease in the health care cost trend rate assumption for either year would have an inconsequential impact on postretirement benefits expense and the benefit obligation. The Company estimates that future health care benefit payments will be approximately $14 per year for 2018 through 2022 , and $60 in total over the five years 2023 through 2027 . |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | CONTINGENT LIABILITIES AND COMMITMENTS The Company is a party to a number of pending legal proceedings and claims, including those involving general and product liability (including asbestos) and other matters, several of which claim substantial amounts of damages. The Company accrues for such liabilities when it is probable that future costs (including legal fees and expenses) will be incurred and such costs can be reasonably estimated. Accruals are based on developments to date; management's estimates of the outcomes of these matters; the Company's experience in contesting, litigating and settling similar matters; and any related insurance coverage. Although it is not possible to predict the ultimate outcome of these matters, the Company historically has been largely successful in defending itself against claims and suits that have been brought against it, and will continue to defend itself vigorously in all such matters. While the Company believes a material adverse impact is unlikely, given the inherent uncertainty of litigation, a remote possibility exists that a future development could have a material adverse impact on the Company. The Company enters into certain indemnification agreements in the ordinary course of business in which the indemnified party is held harmless and is reimbursed for losses incurred from claims by third parties, usually up to a prespecified limit. In connection with divestitures of certain assets or businesses, the Company often provides indemnities to the buyer with respect to certain matters including, for example, environmental or unidentified tax liabilities related to periods prior to the disposition. Because of the uncertain nature of the indemnities, the maximum liability cannot be quantified. As such, contingent liabilities are recorded when they are both probable and reasonably estimable. Historically, payments under indemnity arrangements have been inconsequential. At September 30, 2017 , there were no known contingent liabilities (including guarantees, pending litigation, taxes and other claims) that management believes will be material in relation to the Company's financial statements, nor were there any material commitments outside the normal course of business. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Pretax earnings from continuing operations consist of the following: 2015 2016 2017 United States $ 2,688 1,312 1,350 Non-U.S. 1,119 1,004 985 Total pretax earnings $ 3,807 2,316 2,335 The principal components of income tax expense follow: 2015 2016 2017 Current: Federal $ 831 394 351 State and local 86 11 40 Non-U.S. 398 305 311 Deferred: Federal 12 2 7 State and local (1 ) 4 4 Non-U.S. (59 ) (19 ) (53 ) Income tax expense $ 1,267 697 660 Reconciliations of the U.S. federal statutory income tax rate to the Company's effective tax rate follow: 2015 2016 2017 Federal statutory rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 0.7 0.5 1.2 Non-U.S. rate differential (2.4 ) (2.9 ) (3.6 ) Non-U.S. tax holidays (0.9 ) (1.1 ) (1.0 ) U.S. manufacturing deduction (1.2 ) (1.8 ) (1.7 ) Gains on divestitures 1.8 — — Non-U.S. subsidiary restructuring — — (1.8 ) Other 0.3 0.4 0.2 Effective income tax rate 33.3 % 30.1 % 28.3 % Non-U.S. tax holidays reduce tax rates in certain foreign jurisdictions and are expected to expire over the next five years. Following are changes in unrecognized tax benefits before considering recoverability of any cross-jurisdictional tax credits (federal, state and non-U.S.) and temporary differences. The amount of unrecognized tax benefits is not expected to change significantly within the next 12 months. 2016 2017 Unrecognized tax benefits, beginning $ 84 86 Additions for current year tax positions 12 54 Additions for prior year tax positions 16 4 Reductions for prior year tax positions (13 ) (6 ) Acquisitions and divestitures — 9 Reductions for settlements with tax authorities (4 ) (4 ) Reductions for expiration of statutes of limitations (9 ) (11 ) Unrecognized tax benefits, ending $ 86 132 If none of the unrecognized tax benefits shown is ultimately paid, the tax provision and the calculation of the effective tax rate would be favorably impacted by $100 , which is net of cross-jurisdictional tax credits and temporary differences. The Company accrues interest and penalties related to income taxes in income tax expense. Total interest and penalties recognized were $(1) , $2 and $(4) in 2017 , 2016 and 2015 , respectively. As of September 30, 2017 and 2016 , total accrued interest and penalties were $16 and $21 , respectively. The U.S. is the major jurisdiction for which the Company files income tax returns. U.S. federal tax returns are closed through 2013. The status of state and non-U.S. tax examinations varies due to the numerous legal entities and jurisdictions in which the Company operates. The principal items that gave rise to deferred income tax assets and liabilities follow: 2016 2017 Deferred tax assets: Net operating losses and tax credits $ 164 444 Accrued liabilities 277 319 Postretirement and postemployment benefits 82 70 Employee compensation and benefits 206 173 Pensions 271 72 Other 158 196 Total $ 1,158 1,274 Valuation allowances $ (132 ) (309 ) Deferred tax liabilities: Intangibles $ (510 ) (753 ) Property, plant and equipment (239 ) (265 ) Undistributed non-U.S. earnings (9 ) (249 ) Other (42 ) (37 ) Total $ (800 ) (1,304 ) Net deferred income tax asset (liability) $ 226 (339 ) As of September 30, 2017, all deferred tax assets and liabilities were presented as noncurrent. As of September 30, 2016, current deferred tax assets, net were $400 and noncurrent deferred tax liabilities, net were $174 . Total income taxes paid were approximately $1,420 , $950 and $1,590 in 2017 , 2016 and 2015 , respectively. Approximately one-third of the $444 of net operating losses and tax credits can be carried forward indefinitely, one-third expire in ten years, and the remainder expire over varying periods. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's stock-based compensation plans include stock options, performance shares, restricted stock and restricted stock units. Although the Company has discretion, shares distributed under these plans are issued from treasury stock. Stock Options The Company's stock option plans permit key officers and employees to purchase common stock at specified prices, which are equal to 100 percent of the closing market price of the Company's stock on the date of grant. Options generally vest one-third in each of the three years subsequent to grant and expire 10 years from the date of grant. Compensation expense is recognized ratably over the vesting period based on the number of options expected to vest. As of September 30, 2017 , 11.5 million options were available for grant under the plans. Changes in shares subject to options during the year ended September 30, 2017 follow (shares in thousands): Weighted- Average Exercise Price Per Share Shares Total Average Remaining Life (Years) Beginning of year $ 54.87 15,276 Options granted $ 53.71 386 Options exercised $ 51.09 (3,812 ) Options canceled $ 61.48 (1,091 ) End of year $ 55.49 10,759 $ 87 5.8 Exercisable at end of year $ 56.73 8,222 $ 58 5.1 The weighted-average grant date fair value per option was $8.36 , $9.02 and $12.48 in 2017 , 2016 and 2015 , respectively. Cash received for option exercises was $148 in 2017 , $31 in 2016 and $36 in 2015 . The total intrinsic value of options exercised in 2017 , 2016 and 2015 was $36 , $9 and $16 , respectively, while the tax benefit realized by the Company from tax deductions related to option exercises was $2 , $2 and $10 , respectively. The grant date fair value of options is estimated using the Black-Scholes option-pricing model. The weighted-average assumptions used in valuations for 2017 , 2016 and 2015 are, respectively: risk-free interest rate, based on U.S. Treasury yields, 1.7 percent , 1.9 percent and 1.9 percent ; dividend yield, 3.6 percent , 3.8 percent and 3.1 percent ; and expected volatility, based on historical volatility, 24 percent , 27 percent and 28 percent . The expected life of each option awarded is seven years based on historical experience and expected future exercise patterns. Performance Shares, Restricted Stock and Restricted Stock Units The Company's incentive shares plans include performance shares awards which distribute the value of common stock to key management employees subject to certain operating performance conditions and other restrictions. The form of distribution is primarily shares of common stock, with a portion in cash. Compensation expense for performance shares is recognized over the service period based on the number of shares ultimately expected to be earned. Performance shares awards are accounted for as liabilities in accordance with ASC 718, Compensation - Stock Compensation , with compensation expense adjusted at the end of each reporting period to reflect the change in fair value of the awards. As of September 30, 2016, 4,944,575 performance shares awarded primarily in 2013 were outstanding, contingent on the Company achieving its performance objectives through 2016 and the provision of additional service by employees. The objectives for these shares were met at the 86 percent level at the end of 2016, or 4,252,335 shares. Of these, 2,549,083 shares were distributed in early 2017 as follows: 1,393,715 issued as shares, 944,002 withheld for income taxes, and the value of 211,366 paid in cash. An additional 1,691,986 shares were distributed at the end of 2017 to employees who provided one additional year of service as follows: 1,070,264 issued as shares, 616,734 withheld for income taxes, and the value of 4,988 paid in cash. There were 11,266 shares canceled and not distributed. Additionally, the rights to receive a maximum of 2,388,125 and 2,178,388 common shares awarded in 2017 and 2016, under the new performance shares program, are outstanding and contingent upon the Company achieving its performance objectives through 2019 and 2018, respectively. Incentive shares plans also include restricted stock awards which involve distribution of common stock to key management employees subject to cliff vesting at the end of service periods ranging from three to ten years. The fair value of restricted stock awards is determined based on the average of the high and low market prices of the Company's common stock on the date of grant, with compensation expense recognized ratably over the applicable service period. In 2017 , 130,641 shares of restricted stock vested as a result of participants fulfilling the applicable service requirements. Consequently, 84,398 shares were issued while 46,243 shares were withheld for income taxes in accordance with minimum withholding requirements. As of September 30, 2017 , there were 1,194,500 shares of unvested restricted stock outstanding. The total fair value of shares vested under incentive shares plans was $245 , $11 and $9 , respectively, in 2017 , 2016 and 2015 , of which $101 , $4 and $5 was paid in cash, primarily for tax withholding. As of September 30, 2017 , 12.9 million shares remained available for award under incentive shares plans. Changes in shares outstanding but not yet earned under incentive shares plans during the year ended September 30, 2017 follow (shares in thousands): Shares Average Grant Date Beginning of year 7,328 $ 49.17 Granted 2,134 $ 51.91 Earned/vested (4,372 ) $ 49.14 Canceled (91 ) $ 51.18 End of year 4,999 $ 50.33 Total compensation expense for stock options and incentive shares was $115 , $159 and $30 for 2017 , 2016 and 2015 , respectively, of which $5 , $14 and $6 was included in discontinued operations. The decrease in expense for 2017 reflects the impact of changes in the stock price. The increase in expense for 2016 reflects an increasing stock price in the current year compared with a decreasing price in 2015, and overlap of awards. Income tax benefits recognized in the income statement for these compensation arrangements during 2017 , 2016 and 2015 were $33 , $45 and $2 , respectively. As of September 30, 2017 , total unrecognized compensation expense related to unvested shares awarded under these plans was $149 , which is expected to be recognized over a weighted-average period of 1.5 years. In addition to the employee stock option and incentive shares plans, in 2017 the Company awarded 17,984 shares of restricted stock and 2,248 restricted stock units under the restricted stock plan for non-management directors. As of September 30, 2017 , 174,335 shares were available for issuance under this plan. |
Common and Preferred Stock
Common and Preferred Stock | 12 Months Ended |
Sep. 30, 2017 | |
Class of Stock Disclosures [Abstract] | |
Common and Preferred Stock | COMMON AND PREFERRED STOCK At September 30, 2017 , 40.0 million shares of common stock were reserved for issuance under the Company's stock-based compensation plans. During 2017 , 6.6 million common shares were purchased and 5.5 million treasury shares were reissued. In 2016 , 12.5 million common shares were purchased and 0.7 million treasury shares were reissued. At September 30, 2017 and 2016 , the Company had 5.4 million shares of $2.50 par value preferred stock authorized, with none issued. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Activity in accumulated other comprehensive income (loss) attributable to common stockholders is shown below: Foreign currency translation 2015 2016 2017 Beginning balance $ 171 (622 ) (812 ) Other comprehensive income (loss) (793 ) (190 ) 58 Reclassified to gain/loss on sale of businesses — — 385 Ending balance (622 ) (812 ) (369 ) Pension and postretirement Beginning balance (746 ) (952 ) (1,162 ) Actuarial gains (losses) deferred during the period (315 ) (310 ) 315 Amortization of deferred actuarial losses into earnings 109 100 135 Reclassified to gain/loss on sale of businesses — — 50 Ending balance (952 ) (1,162 ) (662 ) Cash flow hedges Beginning balance — (43 ) (25 ) Gains (Losses) deferred during the period (66 ) (30 ) 34 Reclassifications of realized (gains) losses to sales and cost of sales 23 48 3 Ending balance (43 ) (25 ) 12 Accumulated other comprehensive income (loss) $ (1,617 ) (1,999 ) (1,019 ) Activity above is shown net of income taxes for 2017 , 2016 and 2015 , respectively, as follows: deferral of pension and postretirement actuarial gains (losses): $(170) , $159 and $192 ; amortization of pension and postretirement deferred actuarial losses: $(75) , $(59) and $(59) ; deferral of cash flow hedging gains (losses): $(21) , $17 and $38 ; reclassification of realized cash flow hedging (gains) losses: $(2) , $(28) and $(13) . |
Business Segments Information
Business Segments Information | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segments Information | BUSINESS SEGMENTS INFORMATION The Company designs and manufactures products and delivers services that bring technology and engineering together to provide innovative solutions for customers in a wide range of industrial, commercial and consumer markets around the world. In connection with the strategic portfolio repositioning actions undertaken to transform the Company into a more focused enterprise, its businesses and organization were realigned. In fiscal 2017, the Company began reporting three segments: Automation Solutions , and Climate Technologies and Tools & Home Products which together comprise the Commercial & Residential Solutions business. Prior year information has been reclassified to conform with the current year presentation. The Automation Solutions segment includes the former Process Management segment and the remaining businesses in the former Industrial Automation segment, except for the hermetic motors business, which is now included in the Climate Technologies segment. The new Tools & Home Products segment consists of the businesses previously reported in the Commercial & Residential Solutions segment in fiscal 2016 and 2015. The Automation Solutions segment enables process, hybrid and discrete manufacturers to maximize production, protect personnel and the environment, and optimize their energy efficiency and operating costs through a broad offering of integrated solutions and products, including measurement and analytical instrumentation, industrial valves and equipment, and process control systems. Significant end markets serviced include oil and gas, refining, chemicals and power generation, as well as pharmaceuticals, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies. The segment's major product offerings are described below. • Measurement & Analytical Instrumentation products measure the physical properties of liquids or gases in a process stream and communicate this information to a process control system or other software applications, and analyze the chemical composition of process fluids and emissions to enhance quality and efficiency, as well as environmental compliance. • Valves, Actuators & Regulators consists of control, isolation and pressure relief valves which respond to commands from a control system to continuously and precisely modulate the flow of process fluids, smart actuation and control technologies, pressure management products, and industrial and residential regulators that reduce the pressure of fluids moving from high-pressure supply lines into lower pressure systems. • Industrial Solutions provides fluid power and control mechanisms, electrical distribution equipment, and materials joining and precision cleaning products which are used in a variety of manufacturing operations to provide integrated solutions to customers. • Process Control Systems & Solutions provides a digital ecosystem that controls plant processes by communicating with and adjusting the "intelligent" plant devices described above to provide precision measurement, control, monitoring, asset optimization, and plant safety and reliability for plants that produce power, or process fluids or other items. The Commercial & Residential Solutions business consists of the Climate Technologies and Tools & Home Products segments. This business provides products and solutions that promote energy efficiency, enhance household and commercial comfort, and protect food quality and sustainability through heating, air conditioning and refrigeration technology, as well as a broad range of tools and appliance solutions. The Climate Technologies segment provides products, services and solutions for all areas of the climate control industry, including residential heating and cooling, commercial air conditioning, commercial and industrial refrigeration, and cold chain management. Products include compressors, temperature sensors and controls, thermostats, flow controls, and stationary and mobile remote monitoring technologies and services that enable homeowners and businesses to better manage their heating, air conditioning and refrigeration systems for improved control and comfort, and lower energy costs. The Tools & Home Products segment offers tools for professionals and homeowners and appliance solutions. Products include professional pipe-working tools, residential and commercial food waste disposers, and wet-dry vacuums. The principal distribution method for each segment is direct sales forces, although the Company also uses independent sales representatives and distributors. Due to its global presence, certain of the Company's international operations are subject to risks including the stability of governments and business conditions in foreign countries which could result in adverse changes in exchange rates, changes in regulation or disruption of operations. The primary income measure used for assessing segment performance and making operating decisions is earnings before interest and income taxes. Intersegment selling prices approximate market prices. Accounting method differences between segment reporting and the consolidated financial statements are primarily management fees allocated to segments based on a percentage of sales and the accounting for pension and other retirement plans. Corporate and other includes corporate operations, stock compensation expense, acquisition related costs and other items. Corporate assets are primarily comprised of cash and equivalents, investments and certain fixed assets. Summarized below is information about the Company's operations by business segment and by geography. Business Segments Sales Earnings Total Assets 2015 2016 2017 2015 2016 2017 2015 2016 2017 Automation Solutions $ 10,153 8,977 9,418 $ 1,846 1,456 1,522 $ 8,817 8,759 12,581 Climate Technologies 4,006 3,944 4,212 835 902 975 2,455 2,489 2,547 Tools & Home Products 1,625 1,611 1,645 364 384 383 817 809 830 Commercial & Residential Solutions 5,631 5,555 5,857 1,199 1,286 1,358 3,272 3,298 3,377 Divested businesses (a) 477 — — 58 — — — — — Differences in accounting methods 174 189 148 Corporate and other (b) 705 (427 ) (528 ) 9,999 9,675 3,631 Eliminations/Interest (12 ) (10 ) (11 ) (175 ) (188 ) (165 ) Total $ 16,249 14,522 15,264 $ 3,807 2,316 2,335 $ 22,088 21,732 19,589 (a) Divested businesses includes sales and earnings related to the power transmission solutions and commercial storage businesses, which were reported in the former Industrial Automation and Commercial & Residential Solutions segments, respectively. (b) Corporate and other in 2017 includes first year pretax acquisition accounting charges related to inventory and backlog of $93 ( $65 after-tax, $0.10 per share), and in 2015 includes pretax gains on divestitures of $1,039 ( $611 after-tax, $0.90 per share) related to the power transmission solutions and commercial storage businesses. See Note 3. Assets held-for-sale of $6,030 and $6,222 are included in Corporate and other for 2016 and 2015, respectively. See Note 4. Automation Solutions sales by major product offering are summarized below: 2015 2016 2017 Measurement & Analytical Instrumentation $ 3,619 3,137 3,070 Valves, Actuators & Regulators 2,559 2,137 2,668 Industrial Solutions 1,779 1,621 1,680 Process Control Systems & Solutions 2,196 2,082 2,000 Total $ 10,153 8,977 9,418 Depreciation and Amortization Capital 2015 2016 2017 2015 2016 2017 Automation Solutions $ 311 330 400 $ 298 246 234 Climate Technologies 149 150 156 154 133 182 Tools & Home Products 42 44 45 46 44 45 Commercial & Residential Solutions 191 194 201 200 177 227 Corporate and other 71 44 35 90 24 15 Total $ 573 568 636 $ 588 447 476 Geographic Information Sales by Destination Property, Plant and Equipment 2015 2016 2017 2015 2016 2017 United States and Canada $ 8,370 7,505 7,854 $ 1,756 1,780 1,852 Asia 3,363 2,926 3,253 481 459 525 Europe 2,381 2,300 2,434 426 435 626 Latin America 981 834 767 216 203 203 Middle East/Africa 1,154 957 956 50 54 115 Total $ 16,249 14,522 15,264 $ 2,929 2,931 3,321 Sales in the U.S. were $7,273 , $6,940 and $7,608 for 2017, 2016 and 2015, respectively, while Asia includes sales in China of $1,540 , $1,320 and $1,575 in those years. Assets located in the U.S. were $1,840 in 2017, $1,772 in 2016 and $1,746 in 2015. |
Other Financial Data
Other Financial Data | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure Text Block [Abstract] | |
Other Financial Data | OTHER FINANCIAL DATA Items reported in earnings from continuing operations during the years ended September 30 included the following: 2015 2016 2017 Research and development expense $ 336 320 340 Depreciation expense $ 399 391 414 Rent expense $ 287 273 289 The Company leases certain facilities, transportation and office equipment, and various other items under operating lease agreements. Minimum annual rentals under noncancelable long-term leases, exclusive of maintenance, taxes, insurance and other operating costs, will approximate $171 in 2018 , $125 in 2019 , $81 in 2020 , $49 in 2021 and $31 in 2022 . Items reported in accrued expenses included the following: 2016 2017 Employee compensation $ 431 531 Customer advanced payments $ 433 505 Product warranty $ 106 120 Other liabilities are summarized as follows: 2016 2017 Pension and postretirement liabilities $ 1,037 664 Deferred income taxes 210 425 Asbestos litigation 52 340 Other 430 546 Total $ 1,729 1,975 The increase in asbestos litigation primarily reflects the valves & controls acquisition, which added approximately $240 of asbestos liabilities. In addition, other long-term assets include $133 of related insurance receivables, $95 of which were acquired with valves & controls. Other operating cash flow is comprised of the following: 2015 2016 2017 Pension expense $ 153 95 127 Stock compensation expense 24 145 110 Deferred income taxes and other 19 45 27 Total $ 196 285 264 |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Net sales $ 3,337 3,216 3,579 3,574 3,674 4,039 3,932 4,435 14,522 15,264 Gross profit $ 1,414 1,365 1,542 1,557 1,593 1,678 1,713 1,804 6,262 6,404 Earnings from continuing operations common stockholders $ 303 364 367 376 441 407 479 496 1,590 1,643 Net earnings common stockholders $ 349 309 369 292 479 413 438 504 1,635 1,518 Earnings per common share from continuing operations: Basic $ 0.47 0.56 0.57 0.58 0.68 0.63 0.74 0.77 2.46 2.54 Diluted $ 0.46 0.56 0.57 0.58 0.68 0.63 0.74 0.77 2.45 2.54 Net earnings per common share: Basic $ 0.54 0.48 0.57 0.45 0.74 0.64 0.68 0.78 2.53 2.35 Diluted $ 0.53 0.48 0.57 0.45 0.74 0.64 0.68 0.78 2.52 2.35 Dividends per common share $ 0.475 0.48 0.475 0.48 0.475 0.48 0.475 0.48 1.90 1.92 Common stock prices: High $ 51.47 58.28 55.54 64.36 56.82 61.63 56.72 64.18 56.82 64.36 Low $ 42.21 49.22 41.25 55.40 48.45 56.77 50.41 57.81 41.25 49.22 Earnings per share are computed independently each period; as a result, the quarterly amounts may not sum to the calculated annual figure. Emerson Electric Co. common stock (symbol EMR) is listed on the New York Stock Exchange and the Chicago Stock Exchange. |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from these estimates. Certain prior year amounts have been reclassified to conform with current year presentation. In the first quarter of 2017, the Company adopted updates to ASC Subtopic 835-30, Interest-Imputation of Interest , which require presentation of debt issuance costs as a deduction from the related debt liability rather than within other assets. These updates were adopted on a retrospective basis and did not materially impact the Company’s financial statements. In the fourth quarter of 2017, the Company adopted updates to ASC 718, Compensation - Stock Compensation , which require all excess tax benefits and deficiencies related to share-based payments to be recognized in income tax expense rather than through additional paid-in-capital, and to be presented as operating cash flows instead of financing. These updates did not materially impact the Company's financial statements. In the fourth quarter of 2017, the Company adopted updates to ASC 740, Income Taxes , which require noncurrent presentation of all deferred tax assets and liabilities on the balance sheet. These updates were adopted on a prospective basis and resulted in the reclassification of current deferred tax assets and liabilities to noncurrent presentation. In the fourth quarter of 2017, the Company adopted updates to ASC 820, Fair Value Measurement , which require investments measured using the net asset value per share practical expedient to be removed from the fair value hierarchy and separately reported when making disclosures. These updates did not change the determination of fair value for any investments. Adoption affected disclosure presentation only; there was no impact on the Company’s financial results. In the first quarter of 2015, the Company adopted updates to ASC 205, Presentation of Financial Statements , and ASC 360, Property, Plant and Equipment , regarding the reporting of discontinued operations. These updates raised the threshold for reporting discontinued operations to a strategic business shift having a major effect on an entity's operations and financial results. The updates also added disclosures for disposals of business units qualifying for discontinued presentation, and for some dispositions that do not qualify as discontinued operations but are still considered individually significant components of the entity. In 2017, the Company completed the divestitures of its network power systems, and power generation, motors and drives businesses. The results of operations for these businesses were reported within discontinued operations for all years presented, and the assets and liabilities were reflected as held-for-sale. See Note 4. |
Principles Of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its controlled affiliates. Intercompany transactions, profits and balances are eliminated in consolidation. Investments of 20 percent to 50 percent of the voting shares of other entities are accounted for by the equity method. Investments in publicly traded companies of less than 20 percent are carried at fair value, with changes in fair value reflected in accumulated other comprehensive income. Investments in nonpublicly traded companies of less than 20 percent are carried at cost. |
Foreign Currency Translation | Foreign Currency Translation The functional currency for most of the Company's non-U.S. subsidiaries is the local currency. Adjustments resulting from translating local currency financial statements into U.S. dollars are reflected in accumulated other comprehensive income. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less. |
Inventories | Inventories Inventories are stated at the lower of cost or market. The majority of inventory is valued based on standard costs, which approximate average costs, while the remainder is principally valued on a first-in, first-out basis. Cost standards are revised at the beginning of each fiscal year. The annual effect of resetting standards plus any operating variances incurred during each period are allocated to inventories and recognized in cost of sales as product is sold. Following are the components of inventory as of September 30: 2016 2017 Finished products $ 382 560 Raw materials and work in process 826 1,136 Total inventories $ 1,208 1,696 The increase is primarily due to the valves & controls acquisition. See Note 3. |
Fair Value Measurements | Fair Value Measurement ASC 820, Fair Value Measurement , establishes a formal hierarchy and framework for measuring certain financial statement items at fair value, and requires disclosures about fair value measurements and the reliability of valuation inputs. Under ASC 820, measurement assumes the transaction to sell an asset or transfer a liability occurs in the principal or at least the most advantageous market for that asset or liability. Within the hierarchy, Level 1 instruments use observable market prices for an identical item in active markets and have the most reliable valuations. Level 2 instruments are valued through broker/dealer quotation or other approaches using market-observable inputs for similar items in active markets, including forward and spot prices, interest rates and volatilities. Level 3 instruments are valued using inputs not observable in an active market, such as company-developed future cash flow estimates, and are considered the least reliable. Valuations for all of the Company's financial instruments fall within Level 2. The fair value of the Company's long-term debt is Level 2, estimated using current interest rates and pricing from financial institutions and other market sources for debt with similar maturities and characteristics. |
Property, Plant And Equipment | Property, Plant And Equipment The Company records investments in land, buildings, and machinery and equipment at cost. Depreciation is computed principally using the straight-line method over estimated service lives, which for principal assets are 30 to 40 years for buildings and 8 to 12 years for machinery and equipment. Long-lived tangible assets are reviewed for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. Impairment losses are recognized based on estimated fair values if the sum of estimated future undiscounted cash flows of the related assets is less than the carrying values. The components of property, plant and equipment as of September 30 follow: 2016 2017 Land $ 210 295 Buildings 1,867 2,043 Machinery and equipment 4,932 5,175 Construction in progress 318 360 Property, plant and equipment, at cost 7,327 7,873 Less: Accumulated depreciation 4,396 4,552 Property, plant and equipment, net $ 2,931 3,321 The increase is primarily due to the valves & controls acquisition. See Note 3. |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets Assets and liabilities acquired in business combinations are accounted for using the acquisition method and recorded at their respective fair values. Substantially all goodwill is assigned to the reporting unit that acquires a business. A reporting unit is an operating segment as defined in ASC 280, Segment Reporting , or a business one level below an operating segment if discrete financial information for that business unit is prepared and regularly reviewed by the segment manager. The Company conducts annual impairment tests of goodwill in the fourth quarter. If an initial assessment indicates it is more likely than not goodwill might be impaired, it is evaluated by comparing the reporting unit's estimated fair value to its carrying value. Goodwill is also tested for impairment between annual tests if events or circumstances indicate the fair value of a unit may be less than its carrying value. If the carrying amount exceeds the estimated fair value, impairment is recognized to the extent that recorded goodwill exceeds the implied fair value of that goodwill. Estimated fair values of reporting units are Level 3 measures and are developed generally under an income approach that discounts estimated future cash flows using risk-adjusted interest rates. All of the Company's identifiable intangible assets are subject to amortization on a straight-line basis over their estimated useful lives. Identifiable intangibles consist of intellectual property such as patents and trademarks, customer relationships and capitalized software. Identifiable intangibles are also subject to evaluation for potential impairment if events or circumstances indicate the carrying amount may not be recoverable. See Note 7. |
Product Warranty | Product Warranty Warranties vary by product line and are competitive for the markets in which the Company operates. Warranties generally extend for a period of one to two years from the date of sale or installation. Provisions for warranty are determined primarily based on historical warranty cost as a percentage of sales or a fixed amount per unit sold based on failure rates, adjusted for specific problems that may arise. Product warranty expense is less than one percent of sales. |
Revenue Recognition | Revenue Recognition The Company recognizes a large majority of its revenues through the sale of manufactured products and records the sale when products are shipped or delivered, title and risk of loss pass to the customer, and collection is reasonably assured. Less than ten percent of the Company's revenues are recognized using the percentage-of-completion method as performance occurs, and revenue from software sales is recognized in accordance with ASC 985-605. Management believes that all relevant criteria and conditions are considered when recognizing revenue. Sales arrangements sometimes involve delivering multiple elements. In these instances, the revenue assigned to each element is based on vendor-specific objective evidence, third-party evidence or a management estimate of the relative selling price. Revenue is recognized for delivered elements if they have value to the customer on a stand-alone basis and performance related to the undelivered items is probable and substantially in the Company's control, or the undelivered elements are inconsequential or perfunctory and there are no unsatisfied contingencies related to payment. Approximately five percent of the Company's revenues from continuing operations arise from qualifying sales arrangements that include the delivery of multiple elements, principally in the Automation Solutions segment. The vast majority of these deliverables are tangible products, with a smaller portion attributable to installation, service or maintenance. Generally, contract duration is short term, and cancellation, termination or refund provisions apply only in the event of contract breach and have historically not been invoked. |
Derivatives And Hedging | Derivatives and Hedging In the normal course of business, the Company is exposed to changes in interest rates, foreign currency exchange rates and commodity prices due to its worldwide presence and diverse business profile. The Company's foreign currency exposures relate to transactions denominated in currencies that differ from the functional currencies of its business units, primarily in euros, Mexican pesos, Singapore dollars and Indian rupees. Primary commodity exposures are price fluctuations on forecasted purchases of copper and aluminum and related products. As part of the Company's risk management strategy, derivative instruments are selectively used in an effort to minimize the impact of these exposures. Foreign exchange forwards and options are utilized to hedge foreign currency exposures impacting sales or cost of sales transactions, firm commitments and the fair value of assets and liabilities, while swap and option contracts may be used to minimize the effect of commodity price fluctuations on the cost of sales. All derivatives are associated with specific underlying exposures and the Company does not hold derivatives for trading or speculative purposes. The duration of hedge positions is generally two years or less. All derivatives are accounted for under ASC 815, Derivatives and Hedging , and recognized at fair value. For derivatives hedging variability in future cash flows, the effective portion of any gain or loss is deferred in stockholders' equity and recognized when the underlying hedged transaction impacts earnings. The majority of the Company's derivatives that are designated as hedges and qualify for deferral accounting are cash flow hedges. For derivatives hedging the fair value of existing assets or liabilities, both the gain or loss on the derivative and the offsetting loss or gain on the hedged item are recognized in earnings each period. Currency fluctuations on non-U.S. dollar obligations that have been designated as hedges of non-U.S. dollar net asset exposures are reported in equity. To the extent that any hedge is not fully effective at offsetting changes in the underlying hedged item, there could be a net earnings impact. The Company also uses derivatives to hedge economic exposures that do not receive deferral accounting under ASC 815. The underlying exposures for these hedges relate primarily to purchases of commodity-based components used in the Company's manufacturing processes, and the revaluation of certain foreign-currency-denominated assets and liabilities. Gains or losses from the ineffective portion of any hedge, as well as any gains or losses on derivative instruments not designated as hedges, are recognized in the income statement immediately. Counterparties to derivative arrangements are companies with high credit ratings, and the Company has bilateral collateral arrangements with them for which credit rating-based posting thresholds vary depending on the arrangement. If credit ratings on the Company's debt fall below preestablished levels, counterparties can require immediate full collateralization on all instruments in net liability positions. No collateral was posted with counterparties and none was held by the Company at year end. If contractual thresholds had been exceeded, the maximum collateral the Company could have been required to post was $4 . The Company can also demand full collateralization of instruments in net asset positions should any of the Company's counterparties' credit ratings fall below certain thresholds. Risk from credit loss when derivatives are in asset positions is not considered material. The Company has master netting arrangements in place with its counterparties that allow the offsetting of certain derivative-related amounts receivable and payable when settlement occurs in the same period. Accordingly, counterparty balances are netted in the consolidated balance sheet and are reported in other current assets or accrued expenses as appropriate, depending on positions with counterparties as of the balance sheet date. See Note 8. |
Income Taxes | Income Taxes The provision for income taxes is based on pretax income reported in the consolidated statements of earnings and tax rates currently enacted in each jurisdiction. Certain income and expense items are recognized in different time periods for financial reporting and income tax filing purposes, and deferred income taxes are provided for the effect of temporary differences. The Company also provides for U.S. federal income taxes, net of available foreign tax credits, on earnings intended to be repatriated from non-U.S. locations. No provision has been made for U.S. income taxes on approximately $4.9 billion of undistributed earnings of non-U.S. subsidiaries as of September 30, 2017 , as these earnings are considered permanently invested or otherwise indefinitely retained for continuing international operations. Recognition of U.S. taxes on undistributed non-U.S. earnings would be triggered by a management decision to repatriate those earnings. Determination of the amount of taxes that might be paid on these undistributed earnings if eventually remitted is not practicable. See Note 14. |
Summary Of Significant Accoun31
Summary Of Significant Accounting Policies (Components of Inventory and Property, Plant and Equipment) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Inventory | 2016 2017 Finished products $ 382 560 Raw materials and work in process 826 1,136 Total inventories $ 1,208 1,696 |
Property, Plant and Equipment | 2016 2017 Land $ 210 295 Buildings 1,867 2,043 Machinery and equipment 4,932 5,175 Construction in progress 318 360 Property, plant and equipment, at cost 7,327 7,873 Less: Accumulated depreciation 4,396 4,552 Property, plant and equipment, net $ 2,931 3,321 |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Common Share Reconciliation | Reconciliations of weighted-average shares for basic and diluted earnings per common share follow (shares in millions): 2015 2016 2017 Basic shares outstanding 673.3 644.0 642.1 Dilutive shares 3.2 2.8 1.3 Diluted shares outstanding 676.5 646.8 643.4 |
Acquisitions And Divestitures A
Acquisitions And Divestitures Acquisitions and Divestitures (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price of the valves & controls business was preliminarily allocated to assets and liabilities as follows. Valuations of acquired assets and liabilities are in-process and subject to refinement. Accounts receivable $ 350 Inventory 525 Property, plant & equipment 355 Goodwill 1,472 Intangibles 1,045 Other assets 289 Total assets 4,036 Accounts payable 119 Other current liabilities 300 Deferred taxes and other liabilities 657 Cash paid, net of cash acquired $ 2,960 |
Business Acquisition, Pro Forma Information | The following pro forma consolidated condensed financial results of operations are presented as if the acquisition of the valves & controls business occurred on October 1, 2015. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time. 2016 2017 Net sales $ 16,201 16,112 Net earnings from continuing operations common stockholders $ 1,482 1,692 Diluted earnings per share from continuing operations $ 2.28 2.62 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Network Power Systems Power Generation, Motors and Drives Total 2016 2016 2016 Assets Receivables, less allowances $ 1,202 290 1,492 Inventories 381 197 578 Property, plant & equipment, net 352 259 611 Goodwill 2,111 580 2,691 Other assets 581 77 658 Total assets held-for-sale $ 4,627 1,403 6,030 Liabilities Accounts payable $ 664 176 840 Other current liabilities 620 141 761 Deferred taxes and other noncurrent liabilities 227 99 326 Total liabilities held-for-sale $ 1,511 416 1,927 Network Power Systems Power Generation, Total 2015 2016 2017 2015 2016 2017 2015 2016 2017 Cash from operating activities $ 378 343 (615 ) 111 39 (163 ) 489 382 (778 ) Cash from investing activities $ (48 ) (33 ) 3,952 (40 ) (44 ) 1,095 (88 ) (77 ) 5,047 Network Power Systems Power Generation, Motors and Drives Total 2015 2016 2017 2015 2016 2017 2015 2016 2017 Net sales $ 4,426 4,378 630 1,668 1,368 407 6,094 5,746 1,037 Cost of sales 2,810 2,708 394 1,244 1,033 307 4,054 3,741 701 SG&A 1,143 1,101 180 306 269 83 1,449 1,370 263 Other deductions, net 222 172 (515 ) 15 149 42 237 321 (473 ) Earnings (Loss) before income taxes 251 397 571 103 (83 ) (25 ) 354 314 546 Income taxes 134 218 577 27 51 94 161 269 671 Earnings (Loss), net of tax $ 117 179 (6 ) 76 (134 ) (119 ) 193 45 (125 ) |
Other Deductions, Net (Tables)
Other Deductions, Net (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule Of Other Deductions, Net | Other deductions, net are summarized as follows: 2015 2016 2017 Amortization of intangibles (intellectual property and customer relationships) $ 94 84 136 Restructuring costs 138 96 78 Other 98 114 72 Total $ 330 294 286 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring Charges [Abstract] | |
Schedule Of Change In Liability For Restructuring Costs | The change in the liability for restructuring costs during the years ended September 30 follows: 2016 Expense Utilized/Paid 2017 Severance and benefits $ 44 49 33 60 Lease and other contract terminations 5 4 5 4 Asset write-downs — 7 7 — Vacant facility and other shutdown costs 3 5 7 1 Start-up and moving costs 2 13 15 — Total $ 54 78 67 65 2015 Expense Utilized/Paid 2016 Severance and benefits $ 64 66 86 44 Lease and other contract terminations 1 9 5 5 Asset write-downs — 4 4 — Vacant facility and other shutdown costs 3 7 7 3 Start-up and moving costs 2 10 10 2 Total $ 70 96 112 54 Restructuring costs by business segment follows: 2015 2016 2017 Automation Solutions $ 102 80 63 Climate Technologies 20 5 10 Tools & Home Products 11 2 2 Commercial & Residential Solutions 31 7 12 Corporate 5 9 3 Total $ 138 96 78 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Change In Carry Amount Of Goodwill By Business Segment | The change in the carrying value of goodwill by business segment follows: Automation Solutions Climate Technologies Tools & Home Products Commercial & Residential Solutions Total Balance, September 30, 2015 $ 3,138 513 196 709 3,847 Acquisitions 39 44 — 44 83 Foreign currency translation and other (17 ) (4 ) — (4 ) (21 ) Balance, September 30, 2016 3,160 553 196 749 3,909 Acquisitions 1,486 — — — 1,486 Divestitures — — (142 ) (142 ) (142 ) Foreign currency translation and other 58 2 3 5 63 Balance, September 30, 2017 $ 4,704 555 57 612 5,316 |
Schedule Of Gross Carrying Amount And Accumulated Amortization Of Identifiable Intangible Assets By Major Class | The gross carrying amount and accumulated amortization of identifiable intangible assets by major class follow: Customer Relationships Intellectual Property Capitalized Software Total 2016 2017 2016 2017 2016 2017 2016 2017 Gross carrying amount $ 580 1,392 730 1,012 1,071 1,137 2,381 3,541 Less: Accumulated amortization 286 361 393 435 800 855 1,479 1,651 Net carrying amount $ 294 1,031 337 577 271 282 902 1,890 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule Of Amounts Included In Earnings And Other Comprehensive Income | Amounts included in earnings and other comprehensive income follow: Gain (Loss) to Earnings Gain (Loss) to OCI 2015 2016 2017 2015 2016 2017 Location Commodity Cost of sales $ (24 ) (35 ) 10 (43 ) (9 ) 25 Foreign currency Sales, cost of sales (12 ) (41 ) (15 ) (61 ) (38 ) 30 Foreign currency Other deductions, net 14 (27 ) (39 ) Total $ (22 ) (103 ) (44 ) (104 ) (47 ) 55 |
Schedule Of Fair Values Of Derivative Contracts Outstanding | Valuations of derivative contract positions as of September 30 follow: 2016 2017 Assets Liabilities Assets Liabilities Foreign currency $ 7 49 26 18 Commodity $ 2 4 12 — |
Short-Term Borrowings And Lin39
Short-Term Borrowings And Lines Of Credit (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule Of Short-Term Debt And Current Maturities Of Long-Term Debt | Short-term borrowings and current maturities of long-term debt are as follows: 2016 2017 Current maturities of long-term debt $ 267 270 Commercial paper 2,317 592 Total $ 2,584 862 Interest rate for weighted-average short-term borrowings at year end 0.5% 1.1% |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule Of Long-Term Debt | The details of long-term debt follow: 2016 2017 5.125% notes due December 2016 $ 250 — 5.375% notes due October 2017 250 250 5.25% notes due October 2018 400 400 5.0% notes due April 2019 250 250 4.875% notes due October 2019 500 500 4.25% notes due November 2020 300 300 2.625% notes due December 2021 500 500 2.625% notes due February 2023 500 500 3.15% notes due June 2025 500 500 6.0% notes due August 2032 250 250 6.125% notes due April 2039 250 250 5.25% notes due November 2039 300 300 Other 68 64 Long-term debt 4,318 4,064 Less: Current maturities 267 270 Total, net $ 4,051 3,794 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule Of Retirement Plans Expense | U.S. Plans Non-U.S. Plans 2015 2016 2017 2015 2016 2017 Defined benefit plans: Service cost (benefits earned during the period) $ 69 59 60 37 26 19 Interest cost 182 148 134 46 39 30 Expected return on plan assets (303 ) (296 ) (290 ) (58 ) (52 ) (56 ) Net amortization and other 174 166 211 20 17 22 Net periodic pension expense 122 77 115 45 30 15 Defined contribution plans 111 104 96 61 56 47 Total retirement plans expense $ 233 181 211 106 86 62 The components of net postretirement benefits expense for the years ended September 30 follow: 2015 2016 2017 Service cost $ 1 1 1 Interest cost 9 8 6 Net amortization (22 ) (21 ) (19 ) Net postretirement expense $ (12 ) (12 ) (12 ) |
Reconciliations Of Actuarial Present Value Of Projected Benefit Obligations And Fair Value Of Plan Assets For Defined Benefit Pension Plans | Details of the changes in the actuarial present value of the projected benefit obligation and the fair value of plan assets for defined benefit pension plans follow: U.S. Plans Non-U.S. Plans 2016 2017 2016 2017 Projected benefit obligation, beginning $ 4,263 4,696 1,248 1,320 Service cost 59 60 26 19 Interest cost 148 134 39 30 Actuarial (gain) loss 565 (144 ) 275 (83 ) Benefits paid (191 ) (201 ) (31 ) (29 ) Settlements (151 ) (125 ) (82 ) (25 ) Acquisitions (Divestitures), net — (55 ) (6 ) 163 Foreign currency translation and other 3 4 (149 ) 94 Projected benefit obligation, ending $ 4,696 4,369 1,320 1,489 Fair value of plan assets, beginning $ 3,928 4,110 935 909 Actual return on plan assets 491 516 155 61 Employer contributions 31 20 35 25 Benefits paid (191 ) (201 ) (31 ) (29 ) Settlements (151 ) (125 ) (82 ) (25 ) Acquisitions (Divestitures), net — (30 ) — 232 Foreign currency translation and other 2 2 (103 ) 63 Fair value of plan assets, ending $ 4,110 4,292 909 1,236 Net amount recognized in the balance sheet $ (586 ) (77 ) (411 ) (253 ) Location of net amount recognized in the balance sheet: Noncurrent asset $ — 154 1 43 Current liability (11 ) (11 ) (7 ) (11 ) Noncurrent liability (565 ) (220 ) (279 ) (285 ) Net liability held-for-sale (10 ) — (126 ) — Net amount recognized in the balance sheet (586 ) (77 ) (411 ) (253 ) Pretax accumulated other comprehensive loss $ (1,527 ) (923 ) (389 ) (238 ) Details of the changes in actuarial present value of accumulated postretirement benefit obligations follow: 2016 2017 Benefit obligation, beginning $ 213 206 Service cost 1 1 Interest cost 8 6 Actuarial (gain) loss — (24 ) Benefits paid (16 ) (13 ) Divestitures — (2 ) Benefit obligation, ending (recognized in balance sheet) $ 206 174 |
Schedule Of Weighted-Average Assumptions Used In Valuations Of Pension Benefits | The weighted-average assumptions used in the valuation of pension benefits follow: U.S. Plans Non-U.S. Plans 2015 2016 2017 2015 2016 2017 Net pension expense Discount rate used to determine service cost 4.25 % 4.60 % 3.75 % 3.6 % 3.3 % 2.3 % Discount rate used to determine interest cost 4.25 % 3.50 % 2.90 % 3.6 % 3.3 % 2.3 % Expected return on plan assets 7.50 % 7.50 % 7.25 % 6.6 % 6.4 % 6.2 % Rate of compensation increase 3.25 % 3.25 % 3.25 % 3.4 % 3.4 % 3.2 % Benefit obligations Discount rate 4.35 % 3.50 % 3.76 % 3.3 % 2.3 % 2.6 % Rate of compensation increase 3.25 % 3.25 % 3.25 % 3.4 % 3.2 % 3.4 % |
Schedule Of Asset Allocations And Weighted-Average Target Allocations | The Company's asset allocations at September 30, 2017 and 2016 , and weighted-average target allocations follow: U.S. Plans Non-U.S. Plans 2016 2017 Target 2016 2017 Target Equity securities 66 % 67 % 60-70% 51 % 52 % 50-60% Debt securities 29 28 25-35 36 38 25-35 Other 5 5 3-10 13 10 10-20 Total 100 % 100 % 100% 100 % 100 % 100% The fair values of defined benefit pension assets as of September 30, organized by asset class and by the fair value hierarchy of ASC 820, Fair Value Measurement, follow. Investments valued based on the net asset value (NAV) of fund units held, as derived from the fair value of the underlying assets, are excluded from the fair value hierarchy. Level 1 Level 2 Level 3 Measured at NAV Total % 2017 U.S. equities $ 1,059 5 338 357 1,759 32 % International equities 724 6 — 739 1,469 27 % Emerging market equities — — — 276 276 5 % Corporate bonds — 514 — 283 797 14 % Government bonds 3 369 — 399 771 14 % High-yield bonds — — — 132 132 2 % Other 132 6 113 73 324 6 % Total $ 1,918 900 451 2,259 5,528 100 % 2016 U.S. equities $ 1,081 4 292 301 1,678 33 % International equities 627 8 — 599 1,234 25 % Emerging market equities — — — 257 257 5 % Corporate bonds — 476 — 172 648 13 % Government bonds 3 392 — 357 752 15 % High-yield bonds — — — 122 122 2 % Other 144 2 113 69 328 7 % Total $ 1,855 882 405 1,877 5,019 100 % |
Reconciliation Of Change In Value For Level 3 Assets | Details of the changes in value for Level 3 assets follow: 2016 2017 Level 3, beginning $ 371 405 Gains (Losses) on assets held 18 49 Gains (Losses) on assets sold (20 ) (28 ) Purchases, sales and settlements, net 36 25 Level 3, ending $ 405 451 |
Postretirement Plans (Tables)
Postretirement Plans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | |
Reconciliations Of Actuarial Present Value Of Accumulated Postretirement Benefit Obligations | Details of the changes in the actuarial present value of the projected benefit obligation and the fair value of plan assets for defined benefit pension plans follow: U.S. Plans Non-U.S. Plans 2016 2017 2016 2017 Projected benefit obligation, beginning $ 4,263 4,696 1,248 1,320 Service cost 59 60 26 19 Interest cost 148 134 39 30 Actuarial (gain) loss 565 (144 ) 275 (83 ) Benefits paid (191 ) (201 ) (31 ) (29 ) Settlements (151 ) (125 ) (82 ) (25 ) Acquisitions (Divestitures), net — (55 ) (6 ) 163 Foreign currency translation and other 3 4 (149 ) 94 Projected benefit obligation, ending $ 4,696 4,369 1,320 1,489 Fair value of plan assets, beginning $ 3,928 4,110 935 909 Actual return on plan assets 491 516 155 61 Employer contributions 31 20 35 25 Benefits paid (191 ) (201 ) (31 ) (29 ) Settlements (151 ) (125 ) (82 ) (25 ) Acquisitions (Divestitures), net — (30 ) — 232 Foreign currency translation and other 2 2 (103 ) 63 Fair value of plan assets, ending $ 4,110 4,292 909 1,236 Net amount recognized in the balance sheet $ (586 ) (77 ) (411 ) (253 ) Location of net amount recognized in the balance sheet: Noncurrent asset $ — 154 1 43 Current liability (11 ) (11 ) (7 ) (11 ) Noncurrent liability (565 ) (220 ) (279 ) (285 ) Net liability held-for-sale (10 ) — (126 ) — Net amount recognized in the balance sheet (586 ) (77 ) (411 ) (253 ) Pretax accumulated other comprehensive loss $ (1,527 ) (923 ) (389 ) (238 ) Details of the changes in actuarial present value of accumulated postretirement benefit obligations follow: 2016 2017 Benefit obligation, beginning $ 213 206 Service cost 1 1 Interest cost 8 6 Actuarial (gain) loss — (24 ) Benefits paid (16 ) (13 ) Divestitures — (2 ) Benefit obligation, ending (recognized in balance sheet) $ 206 174 |
Components Of Net Postretirement Benefits Expense | U.S. Plans Non-U.S. Plans 2015 2016 2017 2015 2016 2017 Defined benefit plans: Service cost (benefits earned during the period) $ 69 59 60 37 26 19 Interest cost 182 148 134 46 39 30 Expected return on plan assets (303 ) (296 ) (290 ) (58 ) (52 ) (56 ) Net amortization and other 174 166 211 20 17 22 Net periodic pension expense 122 77 115 45 30 15 Defined contribution plans 111 104 96 61 56 47 Total retirement plans expense $ 233 181 211 106 86 62 The components of net postretirement benefits expense for the years ended September 30 follow: 2015 2016 2017 Service cost $ 1 1 1 Interest cost 9 8 6 Net amortization (22 ) (21 ) (19 ) Net postretirement expense $ (12 ) (12 ) (12 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Pretax Earnings From Continuing Operations | Pretax earnings from continuing operations consist of the following: 2015 2016 2017 United States $ 2,688 1,312 1,350 Non-U.S. 1,119 1,004 985 Total pretax earnings $ 3,807 2,316 2,335 |
Schedule Of Principal Components Of Income Tax Expense | The principal components of income tax expense follow: 2015 2016 2017 Current: Federal $ 831 394 351 State and local 86 11 40 Non-U.S. 398 305 311 Deferred: Federal 12 2 7 State and local (1 ) 4 4 Non-U.S. (59 ) (19 ) (53 ) Income tax expense $ 1,267 697 660 |
Schedule Of Reconciliations Of U.S. Federal Statutory Tax Rate | Reconciliations of the U.S. federal statutory income tax rate to the Company's effective tax rate follow: 2015 2016 2017 Federal statutory rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 0.7 0.5 1.2 Non-U.S. rate differential (2.4 ) (2.9 ) (3.6 ) Non-U.S. tax holidays (0.9 ) (1.1 ) (1.0 ) U.S. manufacturing deduction (1.2 ) (1.8 ) (1.7 ) Gains on divestitures 1.8 — — Non-U.S. subsidiary restructuring — — (1.8 ) Other 0.3 0.4 0.2 Effective income tax rate 33.3 % 30.1 % 28.3 % |
Schedule Of Unrecognized Tax Benefits | 2016 2017 Unrecognized tax benefits, beginning $ 84 86 Additions for current year tax positions 12 54 Additions for prior year tax positions 16 4 Reductions for prior year tax positions (13 ) (6 ) Acquisitions and divestitures — 9 Reductions for settlements with tax authorities (4 ) (4 ) Reductions for expiration of statutes of limitations (9 ) (11 ) Unrecognized tax benefits, ending $ 86 132 |
Schedule Of Deferred Income Tax Assets And Liabilities | The principal items that gave rise to deferred income tax assets and liabilities follow: 2016 2017 Deferred tax assets: Net operating losses and tax credits $ 164 444 Accrued liabilities 277 319 Postretirement and postemployment benefits 82 70 Employee compensation and benefits 206 173 Pensions 271 72 Other 158 196 Total $ 1,158 1,274 Valuation allowances $ (132 ) (309 ) Deferred tax liabilities: Intangibles $ (510 ) (753 ) Property, plant and equipment (239 ) (265 ) Undistributed non-U.S. earnings (9 ) (249 ) Other (42 ) (37 ) Total $ (800 ) (1,304 ) Net deferred income tax asset (liability) $ 226 (339 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation [Abstract] | |
Schedule Of Changes In Shares Subject To Option | Changes in shares subject to options during the year ended September 30, 2017 follow (shares in thousands): Weighted- Average Exercise Price Per Share Shares Total Average Remaining Life (Years) Beginning of year $ 54.87 15,276 Options granted $ 53.71 386 Options exercised $ 51.09 (3,812 ) Options canceled $ 61.48 (1,091 ) End of year $ 55.49 10,759 $ 87 5.8 Exercisable at end of year $ 56.73 8,222 $ 58 5.1 |
Schedule Of Changes In Incentive Awards Outstanding | Changes in shares outstanding but not yet earned under incentive shares plans during the year ended September 30, 2017 follow (shares in thousands): Shares Average Grant Date Beginning of year 7,328 $ 49.17 Granted 2,134 $ 51.91 Earned/vested (4,372 ) $ 49.14 Canceled (91 ) $ 51.18 End of year 4,999 $ 50.33 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Activity in accumulated other comprehensive income (loss) attributable to common stockholders is shown below: Foreign currency translation 2015 2016 2017 Beginning balance $ 171 (622 ) (812 ) Other comprehensive income (loss) (793 ) (190 ) 58 Reclassified to gain/loss on sale of businesses — — 385 Ending balance (622 ) (812 ) (369 ) Pension and postretirement Beginning balance (746 ) (952 ) (1,162 ) Actuarial gains (losses) deferred during the period (315 ) (310 ) 315 Amortization of deferred actuarial losses into earnings 109 100 135 Reclassified to gain/loss on sale of businesses — — 50 Ending balance (952 ) (1,162 ) (662 ) Cash flow hedges Beginning balance — (43 ) (25 ) Gains (Losses) deferred during the period (66 ) (30 ) 34 Reclassifications of realized (gains) losses to sales and cost of sales 23 48 3 Ending balance (43 ) (25 ) 12 Accumulated other comprehensive income (loss) $ (1,617 ) (1,999 ) (1,019 ) |
Business Segments Information (
Business Segments Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Results of Operations by Business Segments | Sales Earnings Total Assets 2015 2016 2017 2015 2016 2017 2015 2016 2017 Automation Solutions $ 10,153 8,977 9,418 $ 1,846 1,456 1,522 $ 8,817 8,759 12,581 Climate Technologies 4,006 3,944 4,212 835 902 975 2,455 2,489 2,547 Tools & Home Products 1,625 1,611 1,645 364 384 383 817 809 830 Commercial & Residential Solutions 5,631 5,555 5,857 1,199 1,286 1,358 3,272 3,298 3,377 Divested businesses (a) 477 — — 58 — — — — — Differences in accounting methods 174 189 148 Corporate and other (b) 705 (427 ) (528 ) 9,999 9,675 3,631 Eliminations/Interest (12 ) (10 ) (11 ) (175 ) (188 ) (165 ) Total $ 16,249 14,522 15,264 $ 3,807 2,316 2,335 $ 22,088 21,732 19,589 (a) Divested businesses includes sales and earnings related to the power transmission solutions and commercial storage businesses, which were reported in the former Industrial Automation and Commercial & Residential Solutions segments, respectively. (b) Corporate and other in 2017 includes first year pretax acquisition accounting charges related to inventory and backlog of $93 ( $65 after-tax, $0.10 per share), and in 2015 includes pretax gains on divestitures of $1,039 ( $611 after-tax, $0.90 per share) related to the power transmission solutions and commercial storage businesses. See Note 3. Assets held-for-sale of $6,030 and $6,222 are included in Corporate and other for 2016 and 2015, respectively. See Note 4. Automation Solutions sales by major product offering are summarized below: 2015 2016 2017 Measurement & Analytical Instrumentation $ 3,619 3,137 3,070 Valves, Actuators & Regulators 2,559 2,137 2,668 Industrial Solutions 1,779 1,621 1,680 Process Control Systems & Solutions 2,196 2,082 2,000 Total $ 10,153 8,977 9,418 Depreciation and Amortization Capital 2015 2016 2017 2015 2016 2017 Automation Solutions $ 311 330 400 $ 298 246 234 Climate Technologies 149 150 156 154 133 182 Tools & Home Products 42 44 45 46 44 45 Commercial & Residential Solutions 191 194 201 200 177 227 Corporate and other 71 44 35 90 24 15 Total $ 573 568 636 $ 588 447 476 |
Financial Information By Geographic Area | Geographic Information Sales by Destination Property, Plant and Equipment 2015 2016 2017 2015 2016 2017 United States and Canada $ 8,370 7,505 7,854 $ 1,756 1,780 1,852 Asia 3,363 2,926 3,253 481 459 525 Europe 2,381 2,300 2,434 426 435 626 Latin America 981 834 767 216 203 203 Middle East/Africa 1,154 957 956 50 54 115 Total $ 16,249 14,522 15,264 $ 2,929 2,931 3,321 |
Other Financial Data (Tables)
Other Financial Data (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure Text Block [Abstract] | |
Other Liabilities | Other liabilities are summarized as follows: 2016 2017 Pension and postretirement liabilities $ 1,037 664 Deferred income taxes 210 425 Asbestos litigation 52 340 Other 430 546 Total $ 1,729 1,975 |
Other Items Reported In Earnings | Items reported in earnings from continuing operations during the years ended September 30 included the following: 2015 2016 2017 Research and development expense $ 336 320 340 Depreciation expense $ 399 391 414 Rent expense $ 287 273 289 |
Accrued Expenses | Items reported in accrued expenses included the following: 2016 2017 Employee compensation $ 431 531 Customer advanced payments $ 433 505 Product warranty $ 106 120 |
Other Operating Cash Flow | Other operating cash flow is comprised of the following: 2015 2016 2017 Pension expense $ 153 95 127 Stock compensation expense 24 145 110 Deferred income taxes and other 19 45 27 Total $ 196 285 264 |
Quarterly Financial Informati48
Quarterly Financial Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Quarterly Financial Information | First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Net sales $ 3,337 3,216 3,579 3,574 3,674 4,039 3,932 4,435 14,522 15,264 Gross profit $ 1,414 1,365 1,542 1,557 1,593 1,678 1,713 1,804 6,262 6,404 Earnings from continuing operations common stockholders $ 303 364 367 376 441 407 479 496 1,590 1,643 Net earnings common stockholders $ 349 309 369 292 479 413 438 504 1,635 1,518 Earnings per common share from continuing operations: Basic $ 0.47 0.56 0.57 0.58 0.68 0.63 0.74 0.77 2.46 2.54 Diluted $ 0.46 0.56 0.57 0.58 0.68 0.63 0.74 0.77 2.45 2.54 Net earnings per common share: Basic $ 0.54 0.48 0.57 0.45 0.74 0.64 0.68 0.78 2.53 2.35 Diluted $ 0.53 0.48 0.57 0.45 0.74 0.64 0.68 0.78 2.52 2.35 Dividends per common share $ 0.475 0.48 0.475 0.48 0.475 0.48 0.475 0.48 1.90 1.92 Common stock prices: High $ 51.47 58.28 55.54 64.36 56.82 61.63 56.72 64.18 56.82 64.36 Low $ 42.21 49.22 41.25 55.40 48.45 56.77 50.41 57.81 41.25 49.22 |
Summary Of Significant Accoun49
Summary Of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Summary Of Accounting Policies [Line Items] | ||
Investments in publicly traded companies carried at fair value if ownership is less than percent threshold | 20.00% | |
Investments in nonpublicly traded companies carried at cost if ownership is less than percent threshold | 20.00% | |
Finished products | $ 560 | $ 382 |
Raw materials and work in process | 1,136 | 826 |
Total inventories | 1,696 | 1,208 |
Land | 295 | 210 |
Buildings | 2,043 | 1,867 |
Machinery and equipment | 5,175 | 4,932 |
Construction in progress | 360 | 318 |
Property, plant and equipment, at cost | 7,873 | 7,327 |
Less: Accumulated depreciation | 4,552 | 4,396 |
Property, plant and equipment, net | $ 3,321 | $ 2,931 |
Percentage of revenue from multiple deliverable arrangements | 5.00% | |
Percentage of revenue from percentage-of-completion accounting method | 10.00% | |
Collateral balance posted | $ 0 | |
Collateral held from counterparties | 0 | |
Collateral balance could have been required to post | 4 | |
Undistributed earnings of non-U.S. subsidiaries | $ 4,900 | |
Minimum [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Investments accounted for by the equity method if ownership percentage is less than/greater than percent threshold | 20.00% | |
Warranty period (in years) | 1 year | |
Maximum [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Investments accounted for by the equity method if ownership percentage is less than/greater than percent threshold | 50.00% | |
Warranty period (in years) | 2 years | |
Percentage of product warranty expenses of sales | 1.00% | |
General duration of hedge positions is equal to or less than (in years) | 2 years | |
Building [Member] | Minimum [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 30 years | |
Building [Member] | Maximum [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 40 years | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 8 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 12 years |
Weighted Average Common Share50
Weighted Average Common Shares (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Antidilutive shares excluded from computation of diluted earnings per share | 4.5 | 13.3 | 5.9 |
Basic shares outstanding | 642.1 | 644 | 673.3 |
Dilutive shares | 1.3 | 2.8 | 3.2 |
Diluted shares outstanding | 643.4 | 646.8 | 676.5 |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Narrative) (Details) $ / shares in Units, $ in Millions | Oct. 02, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($)$ / shares | Apr. 28, 2017USD ($) | Jan. 29, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | $ 5,316 | $ 3,909 | $ 5,316 | $ 3,909 | $ 3,847 | |||||||||||
Purchases of businesses, net of cash acquired | 2,990 | 132 | 324 | |||||||||||||
Net sales | 4,435 | $ 4,039 | $ 3,574 | $ 3,216 | 3,932 | $ 3,674 | $ 3,579 | $ 3,337 | 15,264 | 14,522 | 16,249 | |||||
Net income (loss) | 1,550 | 1,664 | 2,733 | |||||||||||||
Restructuring Charges | 78 | 96 | 138 | |||||||||||||
Amortization of intangible assets | 222 | 177 | 174 | |||||||||||||
Intangible assets, net (excluding goodwill) | 1,890 | 902 | 1,890 | 902 | ||||||||||||
Current assets held-for-sale | 73 | 2,200 | 73 | 2,200 | ||||||||||||
Gain (loss) on divestiture of business, after tax | 0 | 0 | 611 | |||||||||||||
Pretax earnings | 2,335 | 2,316 | 3,807 | |||||||||||||
Other assets | 658 | 658 | ||||||||||||||
Current liabilities held-for-sale | 56 | 1,601 | 56 | 1,601 | ||||||||||||
Deferred taxes and other noncurrent liabilities | 326 | 326 | ||||||||||||||
Gains (Losses) on divestitures of businesses | 0 | 0 | 1,039 | |||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Annualized sales | 51 | 115 | ||||||||||||||
Goodwill | 83 | 83 | 178 | |||||||||||||
Goodwill, expected tax deductible amount | 27 | $ 27 | $ 42 | |||||||||||||
Number of businesses acquired | 6 | 8 | ||||||||||||||
Purchases of businesses, net of cash acquired | $ 132 | $ 324 | ||||||||||||||
Intangible assets, net (excluding goodwill) | 50 | $ 50 | $ 128 | |||||||||||||
Intangible assets, weighted average useful life | 9 years | 10 years | ||||||||||||||
Pentair's Valves & Controls [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Cash paid, net of cash acquired | $ 2,960 | |||||||||||||||
Cash acquired | 207 | |||||||||||||||
Annualized sales | 1,400 | |||||||||||||||
Goodwill | 1,472 | |||||||||||||||
Goodwill, expected tax deductible amount | 0 | 0 | ||||||||||||||
Net sales | 600 | |||||||||||||||
Net income (loss) | $ (97) | |||||||||||||||
Net earnings (loss) per share | $ / shares | $ (0.15) | |||||||||||||||
Restructuring Charges | $ 25 | |||||||||||||||
Amortization of intangible assets | 29 | |||||||||||||||
First year pretax acquisition charges, inventory related | 74 | |||||||||||||||
First year pretax acquisition charges, backlog | 19 | |||||||||||||||
First year pretax acquisition accounting charges | 93 | |||||||||||||||
Aftertax first year acquisition accounting charges | $ 65 | |||||||||||||||
First year acquisition accounting charges after-tax per share | $ / shares | $ 0.10 | |||||||||||||||
Intangibles | $ 1,045 | |||||||||||||||
Intangible assets, weighted average useful life | 15 years | |||||||||||||||
Automation Solutions [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | 4,704 | 3,160 | $ 4,704 | $ 3,160 | $ 3,138 | |||||||||||
Restructuring Charges | $ 63 | $ 80 | $ 102 | |||||||||||||
Automation Solutions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Number of businesses acquired | 2 | 4 | 7 | |||||||||||||
Climate Technologies [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | 555 | 553 | $ 555 | $ 553 | $ 513 | |||||||||||
Restructuring Charges | 10 | $ 5 | 20 | |||||||||||||
Climate Technologies [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Number of businesses acquired | 2 | |||||||||||||||
Tools & Home Products [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | $ 57 | $ 196 | 57 | $ 196 | 196 | |||||||||||
Restructuring Charges | 2 | 2 | $ 11 | |||||||||||||
Tools & Home Products [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Number of businesses acquired | 1 | |||||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ClosetMaid [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net sales | 298 | |||||||||||||||
Pretax earnings | $ 15 | |||||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Power Transmission Solutions [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net sales | $ 189 | |||||||||||||||
Current assets held-for-sale | $ 182 | |||||||||||||||
Gain (loss) on divestiture of business, after tax | $ 532 | |||||||||||||||
Disposal gain impact on diluted earnings per share | $ / shares | $ 0.78 | |||||||||||||||
Pretax earnings | $ 21 | |||||||||||||||
Other assets | 374 | |||||||||||||||
Current liabilities held-for-sale | 56 | |||||||||||||||
Deferred taxes and other noncurrent liabilities | $ 41 | |||||||||||||||
Proceeds from divestitures of businesses | 1,400 | |||||||||||||||
Gains (Losses) on divestitures of businesses | 939 | |||||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | InterMetro [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net sales | 288 | |||||||||||||||
Current assets held-for-sale | 62 | |||||||||||||||
Gain (loss) on divestiture of business, after tax | $ 79 | |||||||||||||||
Disposal gain impact on diluted earnings per share | $ / shares | $ 0.12 | |||||||||||||||
Pretax earnings | $ 42 | |||||||||||||||
Other assets | 292 | |||||||||||||||
Current liabilities held-for-sale | 34 | |||||||||||||||
Deferred taxes and other noncurrent liabilities | 9 | |||||||||||||||
Proceeds from divestitures of businesses | 411 | |||||||||||||||
Gains (Losses) on divestitures of businesses | $ 100 | |||||||||||||||
Acquisition-related Costs [Member] | Pentair's Valves & Controls [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net income (loss) | (52) | |||||||||||||||
Fair Value Adjustment To Inventory & Backlog Member [Member] | Pentair's Valves & Controls [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net income (loss) | $ (122) | |||||||||||||||
Scenario, Forecast [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Restructuring Charges | $ 80 | |||||||||||||||
Gain (loss) on divestiture of business, after tax | $ (40) | |||||||||||||||
Scenario, Forecast [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ClosetMaid [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
After-tax proceeds on sale of business | $ 140 | |||||||||||||||
Subsequent Event [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ClosetMaid [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Proceeds from divestitures of businesses | $ 200 |
Acquisitions And Divestitures S
Acquisitions And Divestitures Schedule of Purchase Price of Valves & Controls Allocated to Assets And Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Apr. 28, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,316 | $ 3,909 | $ 3,847 | |
Pentair's Valves & Controls [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 350 | |||
Inventory | 525 | |||
Property, plant & equipment | 355 | |||
Goodwill | 1,472 | |||
Intangibles | 1,045 | |||
Other assets | 289 | |||
Total assets | 4,036 | |||
Accounts payable | 119 | |||
Other current liabilities | 300 | |||
Deferred taxes and other liabilities | 657 | |||
Cash paid, net of cash acquired | $ 2,960 |
Acquisitions And Divestitures53
Acquisitions And Divestitures Acquisitions and Divestitures Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||
Net sales | $ 16,112 | $ 16,201 |
Net earnings from continuing operations common stockholders | $ 1,692 | $ 1,482 |
Diluted earnings per share from continuing operations | $ 2.62 | $ 2.28 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations - Balance Sheet Disclosures (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Receivables, less allowances | $ 1,492 | |
Inventories | 578 | |
Property, plant & equipment, net | 611 | |
Goodwill | 2,691 | |
Other assets | 658 | |
Accounts payable | 840 | |
Other current liabilities | 761 | |
Deferred taxes and other noncurrent liabilities | 326 | |
Total liabilities held-for-sale | 1,927 | |
Discontinued Operations, Held-for-sale [Member] | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Total assets held-for-sale | 6,030 | $ 6,222 |
Network Power Systems Business | Discontinued Operations, Held-for-sale [Member] | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Receivables, less allowances | 1,202 | |
Inventories | 381 | |
Property, plant & equipment, net | 352 | |
Goodwill | 2,111 | |
Other assets | 581 | |
Total assets held-for-sale | 4,627 | |
Accounts payable | 664 | |
Other current liabilities | 620 | |
Deferred taxes and other noncurrent liabilities | 227 | |
Total liabilities held-for-sale | 1,511 | |
Power Generation, Motors and Drives Business | Discontinued Operations, Held-for-sale [Member] | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Receivables, less allowances | 290 | |
Inventories | 197 | |
Property, plant & equipment, net | 259 | |
Goodwill | 580 | |
Other assets | 77 | |
Total assets held-for-sale | 1,403 | |
Accounts payable | 176 | |
Other current liabilities | 141 | |
Deferred taxes and other noncurrent liabilities | 99 | |
Total liabilities held-for-sale | $ 416 |
Discontinued Operations Disco55
Discontinued Operations Discontinued Operations - Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash provided by operating activities and used in investing activities for discontinued operations [Abstract] | |||
Cash provided by operating activities | $ (778) | $ 382 | $ 489 |
Cash used in investing activities | 5,047 | (77) | (88) |
Network Power Systems Business | Discontinued Operations, Disposed of by Sale [Member] | |||
Cash provided by operating activities and used in investing activities for discontinued operations [Abstract] | |||
Cash provided by operating activities | (615) | ||
Cash used in investing activities | 3,952 | ||
Network Power Systems Business | Discontinued Operations, Held-for-sale [Member] | |||
Cash provided by operating activities and used in investing activities for discontinued operations [Abstract] | |||
Cash provided by operating activities | 343 | 378 | |
Cash used in investing activities | (33) | (48) | |
Power Generation, Motors and Drives Business | Discontinued Operations, Disposed of by Sale [Member] | |||
Cash provided by operating activities and used in investing activities for discontinued operations [Abstract] | |||
Cash provided by operating activities | (163) | ||
Cash used in investing activities | $ 1,095 | ||
Power Generation, Motors and Drives Business | Discontinued Operations, Held-for-sale [Member] | |||
Cash provided by operating activities and used in investing activities for discontinued operations [Abstract] | |||
Cash provided by operating activities | 39 | 111 | |
Cash used in investing activities | $ (44) | $ (40) |
Discontinued Operations Disco56
Discontinued Operations Discontinued Operations - Results of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financial Results of Discontinued Operations [Abstract] | |||
Net sales | $ 1,037 | $ 5,746 | $ 6,094 |
Cost of sales | 701 | 3,741 | 4,054 |
SG&A | 263 | 1,370 | 1,449 |
Other deductions, net | 321 | 237 | |
Disposal Group, Including Discontinued Operation, Other Income | (473) | ||
Earnings (Loss) before income taxes | 546 | 314 | 354 |
Income taxes | 671 | 269 | 161 |
Earnings (Loss), net of tax | (125) | 45 | 193 |
Network Power Systems Business | Discontinued Operations, Disposed of by Sale [Member] | |||
Financial Results of Discontinued Operations [Abstract] | |||
Net sales | 630 | ||
Cost of sales | 394 | ||
SG&A | 180 | ||
Disposal Group, Including Discontinued Operation, Other Income | (515) | ||
Earnings (Loss) before income taxes | 571 | ||
Income taxes | 577 | ||
Earnings (Loss), net of tax | (6) | ||
Network Power Systems Business | Discontinued Operations, Held-for-sale [Member] | |||
Financial Results of Discontinued Operations [Abstract] | |||
Net sales | 4,378 | 4,426 | |
Cost of sales | 2,708 | 2,810 | |
SG&A | 1,101 | 1,143 | |
Other deductions, net | 172 | 222 | |
Earnings (Loss) before income taxes | 397 | 251 | |
Income taxes | 218 | 134 | |
Earnings (Loss), net of tax | 179 | 117 | |
Power Generation, Motors and Drives Business | Discontinued Operations, Disposed of by Sale [Member] | |||
Financial Results of Discontinued Operations [Abstract] | |||
Net sales | 407 | ||
Cost of sales | 307 | ||
SG&A | 83 | ||
Other deductions, net | 42 | ||
Earnings (Loss) before income taxes | (25) | ||
Income taxes | 94 | ||
Earnings (Loss), net of tax | $ (119) | ||
Power Generation, Motors and Drives Business | Discontinued Operations, Held-for-sale [Member] | |||
Financial Results of Discontinued Operations [Abstract] | |||
Net sales | 1,368 | 1,668 | |
Cost of sales | 1,033 | 1,244 | |
SG&A | 269 | 306 | |
Other deductions, net | 149 | 15 | |
Earnings (Loss) before income taxes | (83) | 103 | |
Income taxes | 51 | 27 | |
Earnings (Loss), net of tax | $ (134) | $ 76 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Discontinued Operations Disclosures | |||
Earnings (Loss), net of tax | $ (125) | $ 45 | $ 193 |
Diluted earnings from discontinued operations per common share | $ (0.19) | $ 0.07 | $ 0.28 |
Discontinued Operations, Disposed of by Sale [Member] | |||
Discontinued Operations Disclosures | |||
Payments for income taxes and repatriation costs, discontinued operations cash flow | $ 700 | ||
Discontinued Operations, Held-for-sale [Member] | |||
Discontinued Operations Disclosures | |||
Cash payments for separation costs | $ 179 | ||
Combined, Network Power and Power Generation, motors and Drives Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||
Discontinued Operations Disclosures | |||
Benefit from ceasing depreciation and amortization on assets for discontinued businesses held-for-sale | 32 | ||
Income tax expense for repatriation of sales proceeds and cash from discontinued operations | 109 | ||
Combined, Network Power and Power Generation, motors and Drives Business [Member] | Discontinued Operations, Held-for-sale [Member] | |||
Discontinued Operations Disclosures | |||
Separation Costs, Fees | 77 | $ 10 | |
Earnings (Loss) from discontinued operations | 344 | 245 | |
Separation Costs, Income Tax Expense | 143 | 42 | |
Benefit from ceasing depreciation and amortization on assets for discontinued businesses held-for-sale | 24 | ||
After-tax separation costs related to strategic portfolio repositioning actions | 299 | 52 | |
Network Power Systems Business | Discontinued Operations, Disposed of by Sale [Member] | |||
Discontinued Operations Disclosures | |||
Agreed-upon purchase price of business | 4,000 | ||
Earnings (Loss), net of tax | (6) | ||
After tax gain on completion of sale of business | 125 | ||
Disposal gain (loss), pretax | 519 | ||
Network Power Systems Business | Discontinued Operations, Held-for-sale [Member] | |||
Discontinued Operations Disclosures | |||
Earnings (Loss), net of tax | 179 | 117 | |
Power Generation, Motors and Drives Business | Discontinued Operations, Disposed of by Sale [Member] | |||
Discontinued Operations Disclosures | |||
Agreed-upon purchase price of business | 1,200 | ||
Earnings (Loss), net of tax | (119) | ||
After tax loss on completion of sale of business | 173 | ||
Disposal gain (loss), pretax | $ 36 | ||
Power Generation, Motors and Drives Business | Discontinued Operations, Held-for-sale [Member] | |||
Discontinued Operations Disclosures | |||
Earnings (Loss), net of tax | (134) | $ 76 | |
Loss on write down of assets | $ 103 |
Other Deductions, Net (Details)
Other Deductions, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |||
Amortization of intangibles (intellectual property and customer relationships) | $ 136 | $ 84 | $ 94 |
Restructuring costs | 78 | 96 | 138 |
Other | 72 | 114 | 98 |
Total | 286 | 294 | $ 330 |
Change in gain (loss) from foreign currency transactions | 78 | (67) | |
Acquisition and divestiture related costs | $ 24 | ||
Change in litigation costs (increase) decrease | 30 | ||
Dumping duties received | $ 21 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($)employees | Sep. 30, 2016USD ($)employees | Sep. 30, 2015USD ($)employees | |
Restructuring Costs [Roll Forward] | ||||
Restructuring liability, beginning balance | $ 65 | $ 54 | $ 70 | |
Restructuring costs | 78 | 96 | $ 138 | |
Restructuring, paid/utilized | 67 | 112 | ||
Restructuring liability, ending balance | $ 65 | $ 54 | $ 70 | |
Total number of facilities exited | 10 | 19 | 12 | |
Total number of positions eliminated | employees | 1,200 | 1,900 | 3,100 | |
Automation Solutions [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring costs | $ 63 | $ 80 | $ 102 | |
Commercial & Residential Solutions [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring costs | 12 | 7 | 31 | |
Climate Technologies [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring costs | 10 | 5 | 20 | |
Tools & Home Products [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring costs | 2 | 2 | 11 | |
Severance And Benefits [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring liability, beginning balance | 60 | 44 | 64 | |
Restructuring costs | 49 | 66 | ||
Restructuring, paid/utilized | 33 | 86 | ||
Restructuring liability, ending balance | 60 | 44 | 64 | |
Lease And Other Contract Terminations [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring liability, beginning balance | 4 | 5 | 1 | |
Restructuring costs | 4 | 9 | ||
Restructuring, paid/utilized | 5 | 5 | ||
Restructuring liability, ending balance | 4 | 5 | 1 | |
Asset Write-Downs [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring liability, beginning balance | 0 | 0 | 0 | |
Restructuring costs | 7 | 4 | ||
Restructuring, paid/utilized | 7 | 4 | ||
Restructuring liability, ending balance | 0 | 0 | 0 | |
Vacant Facility And Other Shutdown Costs [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring liability, beginning balance | 1 | 3 | 3 | |
Restructuring costs | 5 | 7 | ||
Restructuring, paid/utilized | 7 | 7 | ||
Restructuring liability, ending balance | 1 | 3 | 3 | |
Start-Up And Moving Costs [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring liability, beginning balance | 0 | 2 | 2 | |
Restructuring costs | 13 | 10 | ||
Restructuring, paid/utilized | 15 | 10 | ||
Restructuring liability, ending balance | 0 | 2 | 2 | |
Scenario, Forecast [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring costs | $ 80 | |||
Corporate, Non-Segment [Member] | Corporate and other [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring costs | 3 | $ 9 | $ 5 | |
Pentair's Valves & Controls [Member] | ||||
Restructuring Costs [Roll Forward] | ||||
Restructuring costs | $ 25 |
Goodwill And Other Intangible60
Goodwill And Other Intangibles (Schedule Of Change In Carry Amount Of Goodwill By Business Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 3,909 | $ 3,847 |
Acquisitions | 1,486 | 83 |
Divestitures | (142) | |
Foreign currency translation and other | 63 | (21) |
Goodwill, ending balance | 5,316 | 3,909 |
Automation Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 3,160 | 3,138 |
Acquisitions | 1,486 | 39 |
Divestitures | 0 | |
Foreign currency translation and other | 58 | (17) |
Goodwill, ending balance | 4,704 | 3,160 |
Commercial & Residential Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 749 | 709 |
Acquisitions | 0 | 44 |
Divestitures | (142) | |
Foreign currency translation and other | 5 | (4) |
Goodwill, ending balance | 612 | 749 |
Climate Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 553 | 513 |
Acquisitions | 0 | 44 |
Divestitures | 0 | |
Foreign currency translation and other | 2 | (4) |
Goodwill, ending balance | 555 | 553 |
Tools & Home Products [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 196 | 196 |
Acquisitions | 0 | 0 |
Divestitures | (142) | |
Foreign currency translation and other | 3 | 0 |
Goodwill, ending balance | $ 57 | $ 196 |
Goodwill And Other Intangible61
Goodwill And Other Intangibles (Schedule Of Gross Carrying Amount And Accumulated Amortization Of Identifiable Intangible Assets By Major Class) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Intangibles Other Than Goodwill [Line Items] | |||
Gross carrying amount | $ 3,541 | $ 2,381 | |
Less: Accumulated amortization | 1,651 | 1,479 | |
Net carrying amount | 1,890 | 902 | |
Amortization of intangible assets | 222 | 177 | $ 174 |
Future amortization expense, 2018 | 261 | ||
Future amortization expense, 2019 | 226 | ||
Future amortization expense, 2020 | 201 | ||
Future amortization expense, 2021 | 168 | ||
Future amortization expense, 2022 | 148 | ||
Customer Relationships [Member] | |||
Intangibles Other Than Goodwill [Line Items] | |||
Gross carrying amount | 1,392 | 580 | |
Less: Accumulated amortization | 361 | 286 | |
Net carrying amount | 1,031 | 294 | |
Intellectual Property [Member] | |||
Intangibles Other Than Goodwill [Line Items] | |||
Gross carrying amount | 1,012 | 730 | |
Less: Accumulated amortization | 435 | 393 | |
Net carrying amount | 577 | 337 | |
Capitalized Software [Member] | |||
Intangibles Other Than Goodwill [Line Items] | |||
Gross carrying amount | 1,137 | 1,071 | |
Less: Accumulated amortization | 855 | 800 | |
Net carrying amount | $ 282 | $ 271 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Amounts Included In Earnings And Other Comprehensive Income) (Details) lb in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017USD ($)lb | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Financial Instruments [Line Items] | |||
Notional value of foreign currency hedge positions | $ 1,800 | ||
Derivative, amount of commodities hedged | 115 | ||
Gain (Loss) to earnings | (44) | $ (103) | $ (22) |
Gain (Loss) to other comprehensive income | 55 | (47) | (104) |
Foreign currency [Member] | Other deductions, net [Member] | |||
Financial Instruments [Line Items] | |||
Gain (Loss) to earnings | $ (39) | (27) | 14 |
Copper and aluminum [Member] | |||
Financial Instruments [Line Items] | |||
Weight of copper and aluminum for commodity hedges, in pounds | lb | 49 | ||
Cash Flow Hedging [Member] | Commodity [Member] | Cost of sales [Member] | |||
Financial Instruments [Line Items] | |||
Gain (Loss) to earnings | $ 10 | (35) | (24) |
Cash Flow Hedging [Member] | Foreign currency [Member] | Sales, cost of sales [Member] | |||
Financial Instruments [Line Items] | |||
Gain (Loss) to earnings | (15) | (41) | (12) |
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | Commodity [Member] | |||
Financial Instruments [Line Items] | |||
Gain (Loss) to other comprehensive income | 25 | (9) | (43) |
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | Foreign currency [Member] | |||
Financial Instruments [Line Items] | |||
Gain (Loss) to other comprehensive income | $ 30 | $ (38) | $ (61) |
Financial Instruments (Schedu63
Financial Instruments (Schedule Of Fair Values Of Derivative Contracts Outstanding) (Details) - Fair Value, Level 2 [Member] - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Financial Instruments [Line Items] | ||
Fair value of long-term debt | $ 4,385 | $ 4,806 |
Fair value of long-term debt compared with carrying value | 321 | 488 |
Foreign Currency [Member] | ||
Financial Instruments [Line Items] | ||
Fair value of derivative assets | 26 | 7 |
Fair value of derivative liabilities | 18 | 49 |
Commodity [Member] | ||
Financial Instruments [Line Items] | ||
Fair value of derivative assets | 12 | 2 |
Fair value of derivative liabilities | $ 0 | $ 4 |
Short-Term Borrowings And Lin64
Short-Term Borrowings And Lines Of Credit (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Apr. 30, 2014 |
Short Term Borrowings And Lines Of Credit [Line Items] | |||
Current maturities of long-term debt | $ 270 | $ 267 | |
Commercial paper | 592 | 2,317 | |
Total | $ 862 | $ 2,584 | |
Interest rate for weighted-average short-term borrowings at year end | 1.10% | 0.50% | |
Five-year revolving credit facility [Member] | |||
Short Term Borrowings And Lines Of Credit [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 3,500 | ||
Four-year revolving credit facility [Member] | |||
Short Term Borrowings And Lines Of Credit [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 2,750 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,064 | $ 4,318 | |
Less: Current maturities | 270 | 267 | |
Total, net | 3,794 | 4,051 | |
Long-term debt maturing during year two | 683 | ||
Long-term debt maturing during year three | 516 | ||
Long-term debt maturing during year four | 299 | ||
Long-term debt maturing during year five | 500 | ||
Interest paid related to short-term borrowings and long-term debt | 192 | 209 | $ 196 |
5.125% notes due December 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 250 | |
Repayments of debt | $ 250 | ||
Notes interest rate, percentage | 5.125% | ||
5.375% notes due October 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 250 | 250 | |
5.25% notes due October 2018[Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 400 | 400 | |
5.0% notes due April 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250 | 250 | |
4.875% notes due October 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500 | 500 | |
4.25% notes due November 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300 | 300 | |
2.625% Notes Due December 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500 | 500 | |
2.625% notes due February 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500 | 500 | |
3.15% Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500 | 500 | |
6.0% notes due August 2032 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250 | 250 | |
6.125% notes due April 2039 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250 | 250 | |
5.25% notes due November 2039 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300 | 300 | |
Other [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 64 | 68 | |
4.75% notes due October 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 250 | ||
Notes interest rate, percentage | 4.75% |
Retirement Plans (Schedule Of R
Retirement Plans (Schedule Of Retirement Plans Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension expense | $ 127 | $ 95 | $ 153 |
U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total retirement plans expense | 211 | 181 | 233 |
Non-U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total retirement plans expense | 62 | 86 | 106 |
U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plans | 96 | 104 | 111 |
Non-U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plans | 47 | 56 | 61 |
U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost (benefits earned during the period) | 60 | 59 | 69 |
Interest cost | 134 | 148 | 182 |
Expected return on plan assets | (290) | (296) | (303) |
Net amortization and other | 211 | 166 | 174 |
Net periodic pension expense | 115 | 77 | 122 |
Non-U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost (benefits earned during the period) | 19 | 26 | 37 |
Interest cost | 30 | 39 | 46 |
Expected return on plan assets | (56) | (52) | (58) |
Net amortization and other | 22 | 17 | 20 |
Net periodic pension expense | $ 15 | $ 30 | $ 45 |
Retirement Plans (Reconciliatio
Retirement Plans (Reconciliations Of Actuarial Present Value Of Projected Benefit Obligations And Fair Value Of Plan Assets For Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets, beginning | $ 5,019 | ||
Fair value of plan assets, ending | 5,528 | $ 5,019 | |
U.S. Plans [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Projected benefit obligation, beginning | 4,696 | 4,263 | |
Service cost | 60 | 59 | $ 69 |
Interest cost | 134 | 148 | 182 |
Actuarial (gain) loss | (144) | 565 | |
Benefits paid | (201) | (191) | |
Settlements | (125) | (151) | |
Acquisitions (Divestitures), net | (55) | 0 | |
Foreign currency translation and other | 4 | 3 | |
Projected benefit obligation, ending | 4,369 | 4,696 | 4,263 |
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets, beginning | 4,110 | 3,928 | |
Actual return on plan assets | 516 | 491 | |
Employer contributions | 20 | 31 | |
Benefits paid | (201) | (191) | |
Settlements | (125) | (151) | |
Acquisitions (Divestitures), net | (30) | 0 | |
Foreign currency translation and other | 2 | 2 | |
Fair value of plan assets, ending | 4,292 | 4,110 | 3,928 |
Net amount recognized in the balance sheet | (77) | (586) | |
Noncurrent asset | 154 | 0 | |
Current liability | (11) | (11) | |
Noncurrent liability | (220) | (565) | |
Net liability held-for-sale | 0 | (10) | |
Pretax accumulated other comprehensive loss | (923) | (1,527) | |
Non-U.S. Plans [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Projected benefit obligation, beginning | 1,320 | 1,248 | |
Service cost | 19 | 26 | 37 |
Interest cost | 30 | 39 | 46 |
Actuarial (gain) loss | (83) | 275 | |
Benefits paid | (29) | (31) | |
Settlements | (25) | (82) | |
Acquisitions (Divestitures), net | 163 | (6) | |
Foreign currency translation and other | 94 | (149) | |
Projected benefit obligation, ending | 1,489 | 1,320 | 1,248 |
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets, beginning | 909 | 935 | |
Actual return on plan assets | 61 | 155 | |
Employer contributions | 25 | 35 | |
Benefits paid | (29) | (31) | |
Settlements | (25) | (82) | |
Acquisitions (Divestitures), net | 232 | 0 | |
Foreign currency translation and other | 63 | (103) | |
Fair value of plan assets, ending | 1,236 | 909 | $ 935 |
Net amount recognized in the balance sheet | (253) | (411) | |
Noncurrent asset | 43 | 1 | |
Current liability | (11) | (7) | |
Noncurrent liability | (285) | (279) | |
Net liability held-for-sale | (126) | ||
Pretax accumulated other comprehensive loss | (238) | $ (389) | |
Discontinued Operations, Held-for-sale [Member] | Non-U.S. Plans [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Net liability held-for-sale | $ 0 |
Retirement Plans (Schedule Of W
Retirement Plans (Schedule Of Weighted-Average Assumptions Used In Valuations Of Pension Benefits) (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumption used to determine net pension expense service cost, Discount rate | 3.75% | 4.60% | 4.25% |
Assumption used to determine net pension expense interest cost, Discount rate | 2.90% | 3.50% | 4.25% |
Assumptions used to determine net pension expense, Expected return on plan assets | 7.25% | 7.50% | 7.50% |
Assumptions used to determine net pension expense, Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Assumptions used to determine benefit obligations, Discount rate | 3.76% | 3.50% | 4.35% |
Assumptions used to determine benefit obligations, Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Non-U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumption used to determine net pension expense service cost, Discount rate | 2.30% | 3.30% | 3.60% |
Assumption used to determine net pension expense interest cost, Discount rate | 2.30% | 3.34% | 3.60% |
Assumptions used to determine net pension expense, Expected return on plan assets | 6.20% | 6.40% | 6.60% |
Assumptions used to determine net pension expense, Rate of compensation increase | 3.20% | 3.40% | 3.40% |
Assumptions used to determine benefit obligations, Discount rate | 2.60% | 2.30% | 3.30% |
Assumptions used to determine benefit obligations, Rate of compensation increase | 3.40% | 3.20% | 3.40% |
Retirement Plans (Schedule Of A
Retirement Plans (Schedule Of Asset Allocations And Weighted-Average Target Allocations) (Details) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 100.00% | 100.00% |
Total, target | 100.00% | |
Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 100.00% | 100.00% |
Total, target | 100.00% | |
Equity Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 67.00% | 66.00% |
Equity Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 52.00% | 51.00% |
Debt Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 28.00% | 29.00% |
Debt Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 38.00% | 36.00% |
Other Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 5.00% | 5.00% |
Other Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 10.00% | 13.00% |
Minimum [Member] | Equity Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 60.00% | |
Minimum [Member] | Equity Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 50.00% | |
Minimum [Member] | Debt Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 25.00% | |
Minimum [Member] | Debt Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 25.00% | |
Minimum [Member] | Other Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 3.00% | |
Minimum [Member] | Other Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 10.00% | |
Maximum [Member] | Equity Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 70.00% | |
Maximum [Member] | Equity Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 60.00% | |
Maximum [Member] | Debt Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 35.00% | |
Maximum [Member] | Debt Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 35.00% | |
Maximum [Member] | Other Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 10.00% | |
Maximum [Member] | Other Securities [Member] | Non-U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 20.00% |
Retirement Plans (Schedule Of F
Retirement Plans (Schedule Of Fair Values Of Defined Benefit Plan Assets Organized By Asset Class And Fair Value Hierarchy Of ASC 820) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 5,528 | $ 5,019 |
Investments measured at net asset value | $ 2,259 | $ 1,877 |
Percentage of defined benefit plan assets | 100.00% | 100.00% |
Fair Value, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 1,918 | $ 1,855 |
Fair Value, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 900 | 882 |
Fair Value, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 451 | 405 |
U.S. equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 1,759 | 1,678 |
Investments measured at net asset value | $ 357 | $ 301 |
Percentage of defined benefit plan assets | 32.00% | 33.00% |
U.S. equities [Member] | Fair Value, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 1,059 | $ 1,081 |
U.S. equities [Member] | Fair Value, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 5 | 4 |
U.S. equities [Member] | Fair Value, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 338 | 292 |
International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 1,469 | 1,234 |
Investments measured at net asset value | $ 739 | $ 599 |
Percentage of defined benefit plan assets | 27.00% | 25.00% |
International equities [Member] | Fair Value, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 724 | $ 627 |
International equities [Member] | Fair Value, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 6 | 8 |
International equities [Member] | Fair Value, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 0 | 0 |
Emerging market equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 276 | 257 |
Investments measured at net asset value | $ 276 | $ 257 |
Percentage of defined benefit plan assets | 5.00% | 5.00% |
Emerging market equities [Member] | Fair Value, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 0 | $ 0 |
Emerging market equities [Member] | Fair Value, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 0 | 0 |
Emerging market equities [Member] | Fair Value, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 0 | 0 |
Corporate bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 797 | 648 |
Investments measured at net asset value | $ 283 | $ 172 |
Percentage of defined benefit plan assets | 14.00% | 13.00% |
Corporate bonds [Member] | Fair Value, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 0 | $ 0 |
Corporate bonds [Member] | Fair Value, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 514 | 476 |
Corporate bonds [Member] | Fair Value, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 0 | 0 |
Government bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 771 | 752 |
Investments measured at net asset value | $ 399 | $ 357 |
Percentage of defined benefit plan assets | 14.00% | 15.00% |
Government bonds [Member] | Fair Value, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 3 | $ 3 |
Government bonds [Member] | Fair Value, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 369 | 392 |
Government bonds [Member] | Fair Value, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 0 | 0 |
High yield bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 132 | 122 |
Investments measured at net asset value | $ 132 | $ 122 |
Percentage of defined benefit plan assets | 2.00% | 2.00% |
High yield bonds [Member] | Fair Value, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 0 | $ 0 |
High yield bonds [Member] | Fair Value, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 0 | 0 |
High yield bonds [Member] | Fair Value, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 0 | 0 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 324 | 328 |
Investments measured at net asset value | $ 73 | $ 69 |
Percentage of defined benefit plan assets | 6.00% | 7.00% |
Other [Member] | Fair Value, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 132 | $ 144 |
Other [Member] | Fair Value, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | 6 | 2 |
Other [Member] | Fair Value, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of defined benefit plan assets | $ 113 | $ 113 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Gains (Losses) deferred in accumulated other comprehensive income will be amortized into earnings in 2018 | $ (142) | |||
Losses deferred in accumulated other comprehensive income | (1,161) | |||
Total accumulated benefit obligation | 5,607 | $ 5,729 | ||
Accumulated benefit obligations in excess of plan assets for retirement plans, projected benefit obligation | 1,182 | 5,951 | ||
Accumulated benefit obligations in excess of plan assets for retirement plans, accumulated benefit obligation | 1,088 | 5,678 | ||
Accumulated benefit obligations in excess of plan assets for retirement plans, fair value of plan assets | 663 | 4,958 | ||
Pension contribution | 45 | 66 | $ 53 | |
Pension expense | 127 | 95 | $ 153 | |
U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status of plan | (77) | $ (586) | ||
Over (Under) funded plans | (77) | |||
Unfunded plans | (201) | |||
Future benefit payments, 2018 | 212 | |||
Future benefit payments, 2019 | 220 | |||
Future benefit payments, 2020 | 228 | |||
Future benefit payments, 2021 | 235 | |||
Future benefit payments, 2022 | 241 | |||
Total future benefit payments, 2023 - 2027 | $ 1,272 | |||
Discount rate | 3.76% | 3.50% | 4.35% | |
Pension expense | $ 115 | $ 77 | $ 122 | |
Non-U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status of plan | (253) | $ (411) | ||
Over (Under) funded plans | (253) | |||
Unfunded plans | (215) | |||
Future benefit payments, 2018 | 56 | |||
Future benefit payments, 2019 | 57 | |||
Future benefit payments, 2020 | 59 | |||
Future benefit payments, 2021 | 63 | |||
Future benefit payments, 2022 | 68 | |||
Total future benefit payments, 2023 - 2027 | $ 390 | |||
Discount rate | 2.60% | 2.30% | 3.30% | |
Pension expense | $ 15 | $ 30 | $ 45 | |
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension contribution | $ 60 | |||
Change in Assumptions for Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in Estimated Service Cost and Interest Cost for Pension Expense | 38 | |||
Discontinued Operations, Held-for-sale [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension expense | 12 | 14 | ||
Discontinued Operations, Disposed of by Sale [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension expense | 3 | |||
U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plans | 96 | 104 | 111 | |
U.S. Plans [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plans | $ 34 | $ 33 | ||
U.S. Plans [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plans | $ 6 |
Retirement Plans Retirement Pla
Retirement Plans Retirement Plans (Reconciliation of Change In Value For Level 3 Assets) (Details) - Fair Value, Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Level 3, beginning | $ 405 | $ 371 |
Gains (Losses) on assets held | 49 | 18 |
Gains (Losses) on assets sold | (28) | (20) |
Purchases, sales and settlements, net | 25 | 36 |
Level 3, ending | $ 451 | $ 405 |
Postretirement Plans (Component
Postretirement Plans (Components Of Net Postretirement Benefits Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Postretirement Benefit Plans [Line Items] | |||
Net postretirement expense | $ 127 | $ 95 | $ 153 |
Postretirement Plans [Member] | |||
Postretirement Benefit Plans [Line Items] | |||
Service cost | 1 | 1 | 1 |
Interest cost | 6 | 8 | 9 |
Net amortization | (19) | (21) | (22) |
Net postretirement expense | $ (12) | $ (12) | $ (12) |
Postretirement Plans (Reconcili
Postretirement Plans (Reconciliations Of Actuarial Present Value Of Accumulated Postretirement Benefit Obligations) (Details) - Postretirement Plans [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Postretirement Benefit Plans [Line Items] | |||
Benefit obligation, beginning | $ 206 | $ 213 | |
Service cost | 1 | 1 | $ 1 |
Interest cost | 6 | 8 | 9 |
Actuarial (gain) loss | (24) | 0 | |
Benefits paid | (13) | (16) | |
Divestitures | (2) | 0 | |
Benefit obligation, ending (recognized in balance sheet) | $ 174 | $ 206 | $ 213 |
Postretirement Plans (Narrative
Postretirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Postretirement Benefit Plans [Line Items] | |||
Deferred actuarial gains in accumulated other comprehensive income | $ (1,161) | ||
Gains (Losses) that will be amortized into earnings in 2018 | (142) | ||
Postretirement Plans [Member] | |||
Postretirement Benefit Plans [Line Items] | |||
Deferred actuarial gains in accumulated other comprehensive income | 141 | ||
Gains (Losses) that will be amortized into earnings in 2018 | $ 19 | ||
Discount rates used in measuring benefit obligations | 3.45% | 3.10% | 3.80% |
Health care cost trend rate assumed for next year | 7.50% | ||
Ultimate health care cost trend rate over subsequent 11 years | 5.00% | ||
Future health care benefit payments, 2018 | $ 14 | ||
Future health care benefit payments, 2019 | 14 | ||
Future health care benefit payments, 2020 | 14 | ||
Future health care benefit payments, 2021 | 14 | ||
Future health care beneift payments, 2022 | 14 | ||
Total future health care benefit payments, 2023 - 2027 | $ 60 | ||
Health care cost trend rate year | 11 years |
Contingent Liabilities and Co76
Contingent Liabilities and Commitments (Details) $ in Millions | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent liabilities | $ 0 |
Income Taxes (Schedule Of Preta
Income Taxes (Schedule Of Pretax Earnings From Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,350 | $ 1,312 | $ 2,688 |
Non-U.S. | 985 | 1,004 | 1,119 |
Earnings from continuing operations before income taxes | $ 2,335 | $ 2,316 | $ 3,807 |
Income Taxes (Schedule Of Princ
Income Taxes (Schedule Of Principal Components Of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current: Federal | $ 351 | $ 394 | $ 831 |
Current: State and local | 40 | 11 | 86 |
Current: Non-U.S. | 311 | 305 | 398 |
Deferred: Federal | 7 | 2 | 12 |
Deferred: State and local | 4 | 4 | (1) |
Deferred: Non-U.S. | (53) | (19) | (59) |
Income tax expense | $ 660 | $ 697 | $ 1,267 |
Income Taxes (Schedule Of Recon
Income Taxes (Schedule Of Reconciliations Of The U.S. Federal Statutory Tax Rate) (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 1.20% | 0.50% | 0.70% |
Non-U.S. rate differential | (3.60%) | (2.90%) | (2.40%) |
Non-U.S. tax holidays | (1.00%) | (1.10%) | (0.90%) |
U.S. manufacturing deduction | (1.70%) | (1.80%) | (1.20%) |
Gains on divestitures | 0.00% | 0.00% | 1.80% |
Non-U.S. subsidiary restructuring | (1.80%) | 0.00% | 0.00% |
Other | 0.20% | 0.40% | 0.30% |
Effective income tax rate | 28.30% | 30.10% | 33.30% |
Non-U.S. tax holiday tax rate reductions for certain foreign jurisdictions, expiration period in years | 5 years |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Period over which the amount of unrecognized tax benefits are not expected to significantly increase or decrease | 12 months | |
Unrecognized tax benefits, beginning | $ 86 | $ 84 |
Additions for current year tax positions | 54 | 12 |
Additions for prior year tax positions | 4 | 16 |
Reductions for prior year tax positions | (6) | (13) |
Acquisitions (Divestitures) | 9 | 0 |
Reductions for settlements with tax authorities | (4) | (4) |
Reductions for expiration of statutes of limitations | (11) | (9) |
Unrecognized tax benefits, ending | $ 132 | $ 86 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Income Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Income Tax Disclosure [Abstract] | ||
Net operating losses and tax credits | $ 444 | $ 164 |
Accrued liabilities | 319 | 277 |
Postretirement and postemployment benefits | 70 | 82 |
Employee compensation and benefits | 173 | 206 |
Pensions | 72 | 271 |
Other | 196 | 158 |
Total deferred tax assets | 1,274 | 1,158 |
Valuation allowances | (309) | (132) |
Intangibles | (753) | (510) |
Property, plant and equipment | (265) | (239) |
Undistributed non-U.S. earnings | (249) | (9) |
Other | (37) | (42) |
Total deferred tax liabilities | (1,304) | (800) |
Net deferred income tax asset | $ 226 | |
Deferred Tax Liabilities, Net | $ 339 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 100 | ||
Unrecognized tax benefits, income tax penalties and interest expense | (1) | $ 2 | $ (4) |
Unrecognized tax benefits, income tax penalties and interest accrued | 16 | 21 | |
Net current deferred tax assets | 400 | ||
Net noncurrent deferred tax liabilities | 174 | ||
Income taxes paid | $ 1,420 | 950 | $ 1,590 |
Amount of net operating losses and tax credits can be carried forward indefinitely | one-third | ||
Net operating losses and tax credits | $ 444 | $ 164 | |
Amount of net operating losses and tax credits that expire in 10 years | one-third |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative)(Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares awarded in 2013, outstanding and contingent on meeting performance objectives through 2016 and provision of service by the employees | 4,944,575 | ||
Percent level objectives were met through the current year for performance shares awarded primarily in 2013 | 86.00% | ||
Performance shares at the current fiscal year's performance level | 4,252,335 | ||
Performance shares distributed from the 2013 performance shares | 2,549,083 | ||
Performance shares distributed from 2013 performance share awards, shares issued | 1,393,715 | ||
Performance shares distributed from 2013 performance share awards, withheld for income taxes | 944,002 | ||
Performance shares distributed from 2013 performance share awards, paid in cash | 211,366 | ||
Performance shares distributed from 2013 performance share awards, employees providing one additional year of service | 1,691,986 | ||
Performance shares distributed from 2013 performance share awards, employees with one additional year of service, issued as shares | 1,070,264 | ||
Performance shares distributed from 2013 performance share awards, employees with one additional year of service, withheld for income taxes | 616,734 | ||
Performance shares distributed from 2013 performance share awards, employees with one additional year of service, paid in cash | 4,988 | ||
Performance shares canceled from 2013 Performance Share Awards | 11,266 | ||
Total compensation expense for stock option and incentive shares plans | $ 110 | $ 145 | $ 24 |
Income tax benefits recognized in income statement for compensation arrangements | 33 | $ 45 | $ 2 |
Unrecognized compensation cost related to non-vested awards granted | $ 149 | ||
Unrecognized compensation cost is expected to be recognized, weighted-average period, years | 1 year 6 months | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares awarded in 2017, outstanding and contingent on meeting performance objectives through 2019 | 2,388,125 | ||
Performance shares awarded in 2016, outstanding and contingent on meeting performance objectives through 2018 | 2,178,388 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of options granted at the closing market price of common stock on the grant date | 100.00% | ||
Amount of stock option vesting per year | one-third | ||
Stock option expiration years from date of grant years | 10 years | ||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 11,500,000 | ||
Weighted-average price of shares granted | $ 8.36 | $ 9.02 | $ 12.48 |
Cash received for stock options exercises | $ 148 | $ 31 | $ 36 |
Options exercised, total intrinsic value | 36 | 9 | 16 |
Actual tax benefit realized from tax deductions related to option exercises | $ 2 | $ 2 | $ 10 |
Risk-free interest rate | 1.70% | 1.90% | 1.90% |
Expected dividend yield | 3.60% | 3.80% | 3.10% |
Expected volatility rate | 24.00% | 27.00% | 28.00% |
Expected life of option | 7 years | 7 years | 7 years |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares vested in period | 130,641 | ||
Common shares issued | 84,398 | ||
Shares withheld for income tax | 46,243 | ||
Unvested shares outstanding | 1,194,500 | ||
Incentive Shares Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 12,900,000 | ||
Shares vested in period | 4,372,000 | ||
Unvested shares outstanding | 4,999,000 | 7,328,000 | |
Total fair value of shares vested | $ 245 | $ 11 | $ 9 |
Cash paid primarily for tax withholdings | $ 101 | 4 | 5 |
Restricted Stock For Non Management Directors Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 174,335 | ||
Restricted stock awarded | 17,984 | ||
Restricted stock units awarded | 2,248 | ||
Includes both Continuing and Discontinued Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense for stock option and incentive shares plans | $ 115 | 159 | 30 |
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense for stock option and incentive shares plans | $ 5 | $ 14 | $ 6 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Changes In Shares Subject To Option) (Details) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average exercise price per share, Beginning of year | $ / shares | $ 54.87 |
Average exercise price per share, Options Granted | $ / shares | 53.71 |
Average exercise price per share, Options Exercised | $ / shares | 51.09 |
Average exercise price per share, Options canceled | $ / shares | 61.48 |
Average exercise price per share, End of year | $ / shares | 55.49 |
Average exercise price per share, Exercisable at year end | $ / shares | $ 56.73 |
Shares, Beginning of year | shares | 15,276 |
Shares, Options granted | shares | 386 |
Shares, Options exercised | shares | (3,812) |
Shares, Options canceled | shares | (1,091) |
Shares, End of year | shares | 10,759 |
Shares, Exercisable at year end | shares | 8,222 |
Total intrinsic value of awards, End of year | $ | $ 87 |
Total intrinsic value of awards, Exercisable at year end | $ | $ 58 |
Average remaining life, End of year | 5 years 10 months |
Average remaining life, Exercisable at year end | 5 years 1 month |
Stock-Based Compensation (Sch85
Stock-Based Compensation (Schedule Of Changes In Incentive Awards Outstanding) (Details) - Incentive Shares Member shares in Thousands | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Beginning of year | shares | 7,328 |
Shares, Granted | shares | 2,134 |
Shares, Earned/vested | shares | (4,372) |
Shares, Canceled | shares | (91) |
Shares, End of year | shares | 4,999 |
Average Grant Date Fair Value Per Share, Beginning of year | $ / shares | $ 49.17 |
Average Grant Date Fair Value Per Share, Granted | $ / shares | 51.91 |
Average Grant Date Fair Value Per Share, Earned/vested | $ / shares | 49.14 |
Average Grant Date Fair Value Per Share, Options canceled | $ / shares | 51.18 |
Average Grant Date Fair Value Per Share, End of year | $ / shares | $ 50.33 |
Common and Preferred Stock (Det
Common and Preferred Stock (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Class of Stock Disclosures [Abstract] | ||
Shares of common stock reserved for issuance under stock-based compensation plans | 40,000,000 | |
Common shares repurchased | 6,600,000 | 12,500,000 |
Treasury shares re-issued | 5,500,000 | 700,000 |
Shares of preferred stock authorized | 5,400,000 | 5,400,000 |
Par value of preferred stocked authorized | $ 2.50 | $ 2.50 |
Shares of preferred stock issued | 0 | 0 |
Accumulated Other Comprehensi87
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated other comprehensive income [Roll Forward] | |||
Stockholders' equity, Beginning balance | $ 7,618 | $ 8,128 | |
Stockholders' equity, Ending balance | 8,770 | 7,618 | $ 8,128 |
Accumulated other comprehensive income (loss) | (1,019) | (1,999) | (1,617) |
Foreign currency translation | |||
Accumulated other comprehensive income [Roll Forward] | |||
Stockholders' equity, Beginning balance | (812) | (622) | 171 |
Other comprehensive income (loss) | 58 | (190) | (793) |
Reclassified to gain/loss on sale of businesses | 385 | 0 | 0 |
Stockholders' equity, Ending balance | (369) | (812) | (622) |
Pension and postretirement | |||
Accumulated other comprehensive income [Roll Forward] | |||
Stockholders' equity, Beginning balance | (1,162) | (952) | (746) |
Actuarial gains (losses) deferred during the period | 315 | (310) | (315) |
Amortization of deferred actuarial losses into earnings | 135 | 100 | 109 |
Reclassified to gain/loss on sale of businesses | 50 | 0 | 0 |
Stockholders' equity, Ending balance | (662) | (1,162) | (952) |
Actuarial gains (losses) deferred during the period, tax | (170) | 159 | 192 |
Amortization of deferred actuarial (gains) losses into earnings, tax | (75) | (59) | (59) |
Cash flow hedges | |||
Accumulated other comprehensive income [Roll Forward] | |||
Stockholders' equity, Beginning balance | (25) | (43) | 0 |
Gains (Losses) deferred during the period | 34 | (30) | (66) |
Reclassifications of realized (gains) losses to sales and cost of sales | 3 | 48 | 23 |
Stockholders' equity, Ending balance | 12 | (25) | (43) |
Gains (losses) deferred during the period, tax | (21) | 17 | 38 |
Reclassification of (gains) losses to sales and cost of sales, tax | $ (2) | $ (28) | $ (13) |
Business Segments Information88
Business Segments Information (Results Of Operations By Business Segments ) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Gains (Losses) on divestitures of businesses | $ 0 | $ 0 | $ 1,039 | ||||||||
Gain on divestiture of business, after tax | 0 | 0 | 611 | ||||||||
Net sales | $ 4,435 | $ 4,039 | $ 3,574 | $ 3,216 | $ 3,932 | $ 3,674 | $ 3,579 | $ 3,337 | 15,264 | 14,522 | 16,249 |
Segment earnings | 2,335 | 2,316 | 3,807 | ||||||||
Total Assets | 19,589 | 21,732 | 19,589 | 21,732 | 22,088 | ||||||
Automation Solutions [Member] | Measurement & Analytical Instrumentation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,070 | 3,137 | 3,619 | ||||||||
Automation Solutions [Member] | Valves, Actuators & Regulators [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,668 | 2,137 | 2,559 | ||||||||
Automation Solutions [Member] | Industrial Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,680 | 1,621 | 1,779 | ||||||||
Automation Solutions [Member] | Process Control Systems & Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,000 | 2,082 | 2,196 | ||||||||
Operating Segments [Member] | Automation Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 9,418 | 8,977 | 10,153 | ||||||||
Segment earnings | 1,522 | 1,456 | 1,846 | ||||||||
Total Assets | 12,581 | 8,759 | 12,581 | 8,759 | 8,817 | ||||||
Operating Segments [Member] | Commercial & Residential Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,857 | 5,555 | 5,631 | ||||||||
Segment earnings | 1,358 | 1,286 | 1,199 | ||||||||
Total Assets | 3,377 | 3,298 | 3,377 | 3,298 | 3,272 | ||||||
Operating Segments [Member] | Climate Technologies [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 4,212 | 3,944 | 4,006 | ||||||||
Segment earnings | 975 | 902 | 835 | ||||||||
Total Assets | 2,547 | 2,489 | 2,547 | 2,489 | 2,455 | ||||||
Operating Segments [Member] | Tools & Home Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,645 | 1,611 | 1,625 | ||||||||
Segment earnings | 383 | 384 | 364 | ||||||||
Total Assets | 830 | 809 | 830 | 809 | 817 | ||||||
Segment Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment earnings | 148 | 189 | 174 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment earnings | (528) | (427) | 705 | ||||||||
Corporate, Non-Segment [Member] | Corporate and other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | $ 3,631 | 9,675 | 3,631 | 9,675 | 9,999 | ||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (11) | (10) | (12) | ||||||||
Segment earnings | (165) | (188) | (175) | ||||||||
Discontinued Operations, Held-for-sale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets held-for-sale | $ 6,030 | $ 6,030 | 6,222 | ||||||||
Power transmission solutions and commercial storage Businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gains (Losses) on divestitures of businesses | 1,039 | ||||||||||
Gain on divestiture of business, after tax | $ 611 | ||||||||||
Disposal gain impact on diluted earnings per share | $ 0.90 | ||||||||||
Power transmission solutions and commercial storage Businesses | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 477 | ||||||||||
Segment earnings | $ 58 | ||||||||||
Pentair's Valves & Controls [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
First year pretax acquisition accounting charges | 93 | ||||||||||
Aftertax first year acquisition accounting charges | $ 65 | ||||||||||
First year acquisition accounting charges after-tax per share | $ 0.10 | ||||||||||
Net sales | $ 600 |
Business Segments Information89
Business Segments Information (Business Segments Financial Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 636 | $ 568 | $ 573 |
Capital expenditures | 476 | 447 | 588 |
Operating Segments [Member] | Automation Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 400 | 330 | 311 |
Capital expenditures | 234 | 246 | 298 |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 201 | 194 | 191 |
Capital expenditures | 227 | 177 | 200 |
Operating Segments [Member] | Climate Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 156 | 150 | 149 |
Capital expenditures | 182 | 133 | 154 |
Operating Segments [Member] | Tools & Home Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 45 | 44 | 42 |
Capital expenditures | 45 | 44 | 46 |
Corporate, Non-Segment [Member] | Corporate and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 35 | 44 | 71 |
Capital expenditures | $ 15 | $ 24 | $ 90 |
Business Segments Information90
Business Segments Information (Financial Information By Geographic Area) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Total | $ 3,321 | $ 2,931 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7,273 | 6,940 | $ 7,608 |
Property, Plant and Equipment | 1,840 | 1,772 | 1,746 |
China | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,540 | 1,320 | 1,575 |
Reportable Geographical Components [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 15,264 | 14,522 | 16,249 |
Property, Plant and Equipment, Total | 3,321 | 2,931 | 2,929 |
Reportable Geographical Components [Member] | United States And Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7,854 | 7,505 | 8,370 |
Property, Plant and Equipment | 1,852 | 1,780 | 1,756 |
Reportable Geographical Components [Member] | Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,253 | 2,926 | 3,363 |
Property, Plant and Equipment | 525 | 459 | 481 |
Reportable Geographical Components [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,434 | 2,300 | 2,381 |
Property, Plant and Equipment | 626 | 435 | 426 |
Reportable Geographical Components [Member] | Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 767 | 834 | 981 |
Property, Plant and Equipment | 203 | 203 | 216 |
Reportable Geographical Components [Member] | Middle East/Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 956 | 957 | 1,154 |
Property, Plant and Equipment | $ 115 | $ 54 | $ 50 |
Other Financial Data (Other Ite
Other Financial Data (Other Items Reported In Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Text Block [Abstract] | |||
Research and development expense | $ 340 | $ 320 | $ 336 |
Depreciation expense | 414 | 391 | 399 |
Rent expense | $ 289 | $ 273 | $ 287 |
Other Financial Data (Narrative
Other Financial Data (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Apr. 28, 2017 | Sep. 30, 2016 |
Liability for Catastrophe Claims [Line Items] | |||
Asbestos insurance receivables | $ 133 | ||
Asbestos liabilities, gross | 340 | $ 52 | |
Approximate annual rentals under noncancellable long-term leases, exclusive of maintenance, taxes, insurance and other operating costs, 2018 | 171 | ||
Approximate annual rentals under noncancellable long-term leases, exclusive of maintenance, taxes, insurance and other operating costs, 2019 | 125 | ||
Approximate annual rentals under noncancellable long-term leases, exclusive of maintenance, taxes, insurance and other operating costs, 2020 | 81 | ||
Approximate annual rentals under noncancellable long-term leases, exclusive of maintenance, taxes, insurance and other operating costs, 2021 | 49 | ||
Approximate annual rentals under noncancellable long-term leases, exclusive of maintenance, taxes, insurance and other operating costs, 2022 | $ 31 | ||
Pentair's Valves & Controls [Member] | |||
Liability for Catastrophe Claims [Line Items] | |||
Asbestos insurance receivables | $ 95 | ||
Asbestos liabilities, gross | $ 240 |
Other Financial Data (Accrued E
Other Financial Data (Accrued Expenses) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Disclosure Text Block [Abstract] | ||
Employee compensation | $ 531 | $ 431 |
Customer advanced payments | 505 | 433 |
Product warranty | $ 120 | $ 106 |
Other Financial Data (Other Lia
Other Financial Data (Other Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Disclosure Text Block [Abstract] | ||
Pension and postretirement liabilities | $ 664 | $ 1,037 |
Deferred income taxes | 425 | 210 |
Asbestos liabilities, gross | 340 | 52 |
Other | 546 | 430 |
Total | $ 1,975 | $ 1,729 |
Other Financial Data (Other Ope
Other Financial Data (Other Operating Cash Flow) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Text Block [Abstract] | |||
Pension expense | $ 127 | $ 95 | $ 153 |
Stock compensation expense | 110 | 145 | 24 |
Deferred income taxes and other | 27 | 45 | 19 |
Total | $ 264 | $ 285 | $ 196 |
Quarterly Financial Informati96
Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 4,435 | $ 4,039 | $ 3,574 | $ 3,216 | $ 3,932 | $ 3,674 | $ 3,579 | $ 3,337 | $ 15,264 | $ 14,522 | $ 16,249 |
Gross profit | 1,804 | 1,678 | 1,557 | 1,365 | 1,713 | 1,593 | 1,542 | 1,414 | 6,404 | 6,262 | |
Earnings from continuing operations common stockholders | 496 | 407 | 376 | 364 | 479 | 441 | 367 | 303 | 1,643 | 1,590 | 2,517 |
Net earnings common stockholders | $ 504 | $ 413 | $ 292 | $ 309 | $ 438 | $ 479 | $ 369 | $ 349 | $ 1,518 | $ 1,635 | $ 2,710 |
Basic earnings from continuing operations per common share | $ 0.77 | $ 0.63 | $ 0.58 | $ 0.56 | $ 0.74 | $ 0.68 | $ 0.57 | $ 0.47 | $ 2.54 | $ 2.46 | $ 3.72 |
Diluted earnings from continuing operations per common share | 0.77 | 0.63 | 0.58 | 0.56 | 0.74 | 0.68 | 0.57 | 0.46 | 2.54 | 2.45 | 3.71 |
Basic earnings per common share | 0.78 | 0.64 | 0.45 | 0.48 | 0.68 | 0.74 | 0.57 | 0.54 | 2.35 | 2.53 | 4.01 |
Diluted earnings per common share | 0.78 | 0.64 | 0.45 | 0.48 | 0.68 | 0.74 | 0.57 | 0.53 | 2.35 | 2.52 | 3.99 |
Dividends per common share | 0.48 | 0.48 | 0.48 | 0.48 | 0.475 | 0.475 | 0.475 | 0.475 | 1.92 | 1.90 | $ 1.88 |
Common stock prices: High | 64.18 | 61.63 | 64.36 | 58.28 | 56.72 | 56.82 | 55.54 | 51.47 | 64.36 | 56.82 | |
Common stock prices: Low | $ 57.81 | $ 56.77 | $ 55.40 | $ 49.22 | $ 50.41 | $ 48.45 | $ 41.25 | $ 42.21 | $ 49.22 | $ 41.25 |