Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | EMERSON ELECTRIC CO | |
Entity Central Index Key | 32,604 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 628,465,551 |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net sales | $ 4,456 | $ 4,039 | $ 12,520 | $ 10,829 |
Costs and expenses: | ||||
Cost of sales | 2,507 | 2,361 | 7,125 | 6,229 |
Selling, general and administrative expenses | 1,054 | 931 | 3,078 | 2,621 |
Other deductions, net | 88 | 87 | 275 | 203 |
Interest expense (net of interest income of $10, $10, $35, and $25, respectively) | 39 | 39 | 113 | 126 |
Earnings from continuing operations before income taxes | 768 | 621 | 1,929 | 1,650 |
Income taxes | 49 | 202 | 327 | 477 |
Earnings from continuing operations | 719 | 419 | 1,602 | 1,173 |
Discontinued operations, net of tax | 0 | 6 | 0 | (133) |
Net earnings | 719 | 425 | 1,602 | 1,040 |
Less: Noncontrolling interests in earnings of subsidiaries | 7 | 12 | 16 | 26 |
Net earnings common stockholders | 712 | 413 | 1,586 | 1,014 |
Earnings from continuing operations common stockholders | $ 712 | $ 407 | $ 1,586 | $ 1,147 |
Basic earnings from continuing operations per common share | $ 1.13 | $ 0.63 | $ 2.50 | $ 1.77 |
Basic earnings from discontinued operations per common share | 0 | 0.01 | 0 | (0.20) |
Basic earnings per common share | 1.13 | 0.64 | 2.50 | 1.57 |
Diluted earnings from continuing operations per common share | 1.12 | 0.63 | 2.49 | 1.77 |
Diluted earnings from discontinued operations per common share | 0 | 0.01 | 0 | (0.20) |
Diluted earnings per common share | 1.12 | 0.64 | 2.49 | 1.57 |
Cash dividends per common share | $ 0.485 | $ 0.48 | $ 1.455 | $ 1.44 |
Consolidated Statements Of Ear3
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Interest income | $ 10 | $ 10 | $ 35 | $ 25 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net earnings | $ 719 | $ 425 | $ 1,602 | $ 1,040 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (273) | 74 | (118) | 230 |
Pension and postretirement | 22 | 35 | 67 | 155 |
Cash flow hedges | (14) | 5 | (22) | 37 |
Total other comprehensive income | (265) | 114 | (73) | 422 |
Comprehensive income | 454 | 539 | 1,529 | 1,462 |
Less: Noncontrolling interests in comprehensive income of subsidiaries | 7 | 11 | 16 | 24 |
Comprehensive income common stockholders | $ 447 | $ 528 | $ 1,513 | $ 1,438 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Current assets | ||
Cash and equivalents | $ 3,411 | $ 3,062 |
Receivables, less allowances of $98 and $91, respectively | 3,027 | 3,072 |
Inventories | 1,805 | 1,696 |
Other current assets | 333 | 422 |
Total current assets | 8,576 | 8,252 |
Property, plant and equipment, net | 3,260 | 3,321 |
Other assets | ||
Goodwill | 5,745 | 5,316 |
Other intangible assets | 2,157 | 1,890 |
Other | 749 | 810 |
Total other assets | 8,651 | 8,016 |
Total assets | 20,487 | 19,589 |
Current liabilities | ||
Short-term borrowings and current maturities of long-term debt | 2,862 | 862 |
Accounts payable | 1,647 | 1,776 |
Accrued expenses | 2,392 | 2,342 |
Income taxes | 53 | 65 |
Total current liabilities | 6,954 | 5,045 |
Long-term debt | 3,126 | 3,794 |
Other liabilities | 1,947 | 1,980 |
Equity | ||
Common stock, $0.50 par value; authorized, 1,200,000,000 shares; issued, 953,354,012 shares; outstanding, 628,411,667 shares and 641,691,971 shares, respectively | 477 | 477 |
Additional paid-in-capital | 332 | 297 |
Retained earnings | 22,660 | 21,995 |
Accumulated other comprehensive income (loss) | (1,092) | (1,019) |
Cost of common stock in treasury, 324,942,345 shares and 311,662,041 shares, respectively | (13,964) | (13,032) |
Common stockholders’ equity | 8,413 | 8,718 |
Noncontrolling interests in subsidiaries | 47 | 52 |
Total equity | 8,460 | 8,770 |
Total liabilities and equity | $ 20,487 | $ 19,589 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 98 | $ 91 |
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 | 628,411,667 | 641,691,971 |
Treasury stock, shares | 324,942,345 | 311,662,041 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net earnings | $ 1,602 | $ 1,040 |
Loss from discontinued operations, net of tax | 0 | 133 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 557 | 454 |
Changes in operating working capital | (286) | 16 |
Other, net | (5) | 142 |
Cash from continuing operations | 1,868 | 1,785 |
Cash from discontinued operations | 0 | (727) |
Cash provided by operating activities | 1,868 | 1,058 |
Investing activities | ||
Capital expenditures | (314) | (300) |
Purchases of businesses, net of cash and equivalents acquired | (770) | (2,991) |
Divestitures of businesses | 223 | 40 |
Other, net | (71) | (80) |
Cash from continuing operations | (932) | (3,331) |
Cash from discontinued operations | 0 | 5,022 |
Cash provided by (used in) investing activities | (932) | 1,691 |
Financing activities | ||
Net increase (decrease) in short-term borrowings | 1,581 | (1,136) |
Payments of short-term borrowings greater than three months | 0 | (90) |
Payments of long-term debt | (251) | (253) |
Dividends paid | (924) | (930) |
Purchases of common stock | (1,000) | (400) |
Other, net | 34 | 32 |
Cash used in financing activities | (560) | (2,777) |
Effect of exchange rate changes on cash and equivalents | (27) | (14) |
Increase (Decrease) in cash and equivalents | 349 | (42) |
Beginning cash and equivalents | 3,062 | 3,182 |
Ending cash and equivalents | 3,411 | 3,140 |
Changes in operating working capital | ||
Receivables | 39 | 119 |
Inventories | (133) | (125) |
Other current assets | (27) | (24) |
Accounts payable | (97) | (7) |
Accrued expenses | (83) | (17) |
Income taxes | 15 | 70 |
Changes in operating working capital | $ (286) | $ 16 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation And Recently Issued Accounting Pronouncements | In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for a fair presentation of operating results for the interim periods presented. Adjustments consist of normal and recurring accruals. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all disclosures required for annual financial statements presented in conformity with U.S. generally accepted accounting principles (GAAP). For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2017 . Certain prior year amounts have been reclassified to conform to current year presentation. On December 22, 2017, the U.S. government enacted tax reform, the Tax Cuts and Jobs Act (the “Act”), which made comprehensive changes to federal income tax laws by moving from a global to a modified territorial tax regime. The Act includes a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent along with the elimination of certain deductions and credits, and a one-time “deemed repatriation” of accumulated foreign earnings. In the first fiscal quarter, the Company recognized a net tax benefit of $43 ( $0.07 per share) due to impacts of the Act, consisting of a $98 benefit on revaluation of net deferred income tax liabilities to the lower tax rate, and $185 of expense for the tax on deemed repatriation of accumulated foreign earnings and withholding taxes partially offset by $130 accrued in previous periods for the planned repatriation of non-U.S. cash. Subsequent to the enactment of the Act, the U.S. Treasury Department and the Internal Revenue Service issued additional guidance, particularly with respect to the calculation of the tax on deemed repatriation of accumulated foreign earnings. As a result of the additional guidance and actions taken in the third fiscal quarter, the Company updated its initial estimates and recognized a benefit of $150 ( $0.24 per share), primarily related to an increase in foreign tax credit carryforwards. These updates resulted in a net tax benefit due to the impacts of the Act of $193 ( $0.30 per share) for the nine months ended June 30, 2018. The Company continues to review the impacts of the Act and subsequent interpretations. Given its complexities, the ultimate effects on repatriation cost and other tax items may differ from these provisional amounts due to additional regulatory guidance expected to be issued and further evaluation of the Company’s actions, assumptions and interpretations. The effective tax rate for full year 2018 is currently expected to be approximately 19 percent , which includes 7 percentage points of benefit from the Act. In 2019 and thereafter, the tax rate is expected to be approximately 25 percent . In February 2018, the FASB issued updates to ASC 220, Comprehensive Income , which permit reclassification of stranded tax effects resulting from the Act from accumulated other comprehensive income to retained earnings. These updates are effective in the first quarter of fiscal 2020, with early adoption permitted, and are not expected to materially impact the Company's financial statements. In the first quarter of fiscal 2018, the Company adopted updates to ASC 330, Inventory , which changed the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. These updates did not materially impact the Company's financial statements. In the first quarter of fiscal 2018, the Company adopted updates to ASC 740, Income Taxes , requiring recognition of the income tax effects of intra-entity transfers of assets other than inventory when the transfer occurs. These updates were adopted on a modified retrospective basis and did not materially impact the Company's financial statements. |
Weighted Average Common Shares
Weighted Average Common Shares | 9 Months Ended |
Jun. 30, 2018 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |
Weighted Average Common Shares | Reconciliations of weighted-average shares for basic and diluted earnings per common share follow. Earnings allocated to participating securities were inconsequential. Three Months Ended Nine Months Ended 2017 2018 2017 2018 Basic shares outstanding 642.8 629.4 643.1 633.4 Dilutive shares 1.0 3.5 1.2 3.1 Diluted shares outstanding 643.8 632.9 644.3 636.5 |
Other Financial Information
Other Financial Information | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Other Financial Information | Other Financial Information Sept 30, 2017 June 30, 2018 Inventories Finished products $ 560 610 Raw materials and work in process 1,136 1,195 Total $ 1,696 1,805 Sept 30, 2017 June 30, 2018 Property, plant and equipment, net Property, plant and equipment, at cost $ 7,873 8,066 Less: Accumulated depreciation 4,552 4,806 Total $ 3,321 3,260 Sept 30, 2017 June 30, 2018 Goodwill by business segment Automation Solutions $ 4,704 5,018 Climate Technologies 555 671 Tools & Home Products 57 56 Commercial & Residential Solutions 612 727 Total $ 5,316 5,745 The increase in goodwill reflects the acquisitions of Paradigm and Cooper-Atkins. See Note 11. Sept 30, 2017 June 30, 2018 Accrued expenses include the following Employee compensation $ 531 578 Customer advanced payments $ 505 503 Product warranty $ 120 122 Sept 30, 2017 June 30, 2018 Other liabilities Pension and postretirement liabilities $ 664 647 Deferred income taxes 425 274 Asbestos litigation 340 346 Other 551 680 Total $ 1,980 1,947 Other long-term assets include $136 of asbestos-related insurance receivables. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Following is a discussion regarding the Company’s use of financial instruments: Hedging Activities – As of June 30, 2018 , the notional amount of foreign currency hedge positions was approximately $2.3 billion , and commodity hedge contracts totaled approximately $142 (primarily 53 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 June 30, 2018 are expected to be recognized over the next 12 months as the underlying forecasted transactions occur. Gains and losses on foreign currency derivatives reported in Other deductions, net reflect hedges of balance sheet exposures that do not receive deferral accounting. The following gains and losses are included in earnings and other comprehensive income (OCI) for the three and nine months ended June 30, 2018 and 2017 : Into Earnings Into OCI 3rd Quarter Nine Months 3rd Quarter Nine Months Gains (Losses) Location 2017 2018 2017 2018 2017 2018 2017 2018 Commodity Cost of sales $ 4 2 6 13 2 (3 ) 17 1 Foreign currency Sales, cost of sales — (1 ) (17 ) (1 ) 10 (15 ) 32 (19 ) Foreign currency Other deductions, net (22 ) 28 (22 ) 16 Total $ (18 ) 29 (33 ) 28 12 (18 ) 49 (18 ) Regardless of whether derivatives receive deferral accounting, the Company expects hedging gains or losses to be essentially offset by losses or gains on the related underlying exposures. The amounts ultimately recognized will differ from those presented above for open positions, which remain subject to ongoing market price fluctuations until settlement. Derivatives receiving deferral accounting are highly effective and no amounts were excluded from the assessment of hedge effectiveness. Hedge ineffectiveness was immaterial for the three and nine months ended June 30, 2018 and 2017 . Fair Value Measurement – Valuations for all derivatives and the Company's long-term debt fall within Level 2 of the GAAP valuation hierarchy. As of June 30, 2018 , the fair value of long-term debt was $4.0 billion , which exceeded the carrying value by $152 . At June 30, 2018 , the fair values of commodity contracts and foreign currency contracts were reported in other current assets and accrued expenses. Valuations of derivative contract positions are summarized below: September 30, 2017 June 30, 2018 Assets Liabilities Assets Liabilities Foreign Currency $ 26 18 27 24 Commodity $ 12 — 3 4 Counterparties to derivatives arrangements are companies with investment-grade credit ratings. The Company has bilateral collateral arrangements with counterparties with credit rating-based posting thresholds that vary depending on the arrangement. If credit ratings on the Company's debt fall below pre-established levels, counterparties can require immediate full collateralization of all derivatives in net liability positions. The maximum amount that could potentially have been required was $13 . The Company also can demand full collateralization of derivatives in net asset positions should any counterparty credit ratings fall below certain thresholds. No collateral was posted with counterparties and none was held by the Company as of June 30, 2018 . |
Equity Roll Forward
Equity Roll Forward | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | The change in equity for the first nine months of 2018 is shown below: Common Stockholders' Equity Noncontrolling Interests in Subsidiaries Total Equity Balance at September 30, 2017 $ 8,718 52 8,770 Net earnings 1,586 16 1,602 Other comprehensive income (loss) (73 ) — (73 ) Cash dividends (924 ) (21 ) (945 ) Purchases of treasury stock, net of issuances (897 ) — (897 ) Adoption of accounting standard update 3 — 3 Balance at June 30, 2018 $ 8,413 47 8,460 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | Activity in Accumulated other comprehensive income (loss) for the three and nine months ended June 30, 2018 and 2017 is shown below: Three Months Ended June 30, Nine Months Ended 2017 2018 2017 2018 Foreign currency translation Beginning balance $ (655 ) (214 ) (812 ) (369 ) Other comprehensive income (loss) before reclassifications 75 (273 ) (153 ) (101 ) Reclassified to gain/loss on sale of businesses — — 385 (17 ) Ending balance (580 ) (487 ) (580 ) (487 ) Pension and postretirement Beginning balance (1,042 ) (617 ) (1,162 ) (662 ) Amortization of deferred actuarial losses into earnings 35 22 105 67 Reclassified to gain/loss on sale of businesses — — 50 — Ending balance (1,007 ) (595 ) (1,007 ) (595 ) Cash flow hedges Beginning balance 7 4 (25 ) 12 Deferral of gains (losses) arising during the period 7 (13 ) 30 (13 ) Reclassification of realized (gains) losses to sales and cost of sales (2 ) (1 ) 7 (9 ) Ending balance 12 (10 ) 12 (10 ) Accumulated other comprehensive income (loss) $ (1,575 ) (1,092 ) (1,575 ) (1,092 ) Activity above is shown net of income taxes for the three and nine months ended June 30, 2018 and 2017, respectively, as follows: amortization of pension and postretirement deferred actuarial losses: $(8), $(18), $(24), and $(54); pension and postretirement divestiture: $-, $-, $-, and $(22); deferral of cash flow hedging gains (losses): $5, $(5), $5, and $(19); reclassification of realized cash flow hedging (gains) losses: $-, $2, $3 and $(4). |
Pension & Postretirement Expens
Pension & Postretirement Expenses | 9 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Pension And Postretirement Plan Expenses | Total periodic pension and postretirement expense is summarized below: Three Months Ended June 30, Nine Months Ended June 30, 2017 2018 2017 2018 Service cost $ 21 19 63 57 Interest cost 42 46 126 139 Expected return on plan assets (86 ) (87 ) (258 ) (262 ) Net amortization 53 30 159 91 Total $ 30 8 90 25 |
Other Deductions, Net
Other Deductions, Net | 9 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Deductions, Net | Other deductions, net are summarized below: Three Months Ended Nine Months Ended 2017 2018 2017 2018 Amortization of intangibles $ 41 47 84 154 Restructuring costs 21 14 45 38 Other 25 27 74 83 Total $ 87 88 203 275 The increase in amortization for the three and nine months ended June 30, 2018 is due to acquisitions. On a year-to-date basis, Other included higher acquisition/divestiture-related costs of $16 , partially offset by lower bad debt expense of $11 . |
Restructuring
Restructuring | 9 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring expense reflects costs associated with the Company’s ongoing efforts to improve operational efficiency and deploy assets globally in order to remain competitive on a worldwide basis. The Company expects full year 2018 restructuring expense to be approximately $80 , which includes costs related to the Tools & Test and Aventics acquisitions. See Note 13. The full year expense includes $38 incurred to date, as well as costs to complete actions initiated before the end of the third quarter and actions anticipated to be approved and initiated during the remainder of the year. Costs for the three and nine months ended June 30, 2018 largely relate to restructuring of the global cost structure consistent with the current level of economic activity, as well as the redeployment of resources for future growth. Restructuring expense by business segment follows: Three Months Ended Nine Months Ended 2017 2018 2017 2018 Automation Solutions $ 20 9 35 26 Climate Technologies 1 4 8 11 Tools & Home Products — — 1 — Commercial & Residential Solutions 1 4 9 11 Corporate — 1 1 1 Total $ 21 14 45 38 Details of the change in the liability for restructuring costs during the nine months ended June 30, 2018 follow: Sept 30, 2017 Expense Utilized/Paid June 30, 2018 Severance and benefits $ 60 24 48 36 Lease and other contract terminations 4 2 2 4 Asset write-downs — 1 1 — Vacant facility and other shutdown costs 1 4 3 2 Start-up and moving costs — 7 6 1 Total $ 65 38 60 43 |
Business Segment Information
Business Segment Information | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Business Segments – 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. 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. Summarized information about the Company's results of operations by business segment follows: Three Months Ended June 30, Nine Months Ended June 30, Sales Earnings Sales Earnings 2017 2018 2017 2018 2017 2018 2017 2018 Automation Solutions $ 2,440 2,870 378 494 6,524 8,213 1,032 1,316 Climate Technologies 1,187 1,236 305 294 3,104 3,286 715 712 Tools & Home Products 415 356 97 93 1,210 1,041 281 276 Commercial & Residential Solutions 1,602 1,592 402 387 4,314 4,327 996 988 Differences in accounting methods 38 57 106 163 Corporate and other (158 ) (131 ) (358 ) (425 ) Eliminations/Interest (3 ) (6 ) (39 ) (39 ) (9 ) (20 ) (126 ) (113 ) Total $ 4,039 4,456 621 768 10,829 12,520 1,650 1,929 For the third quarter of 2018, Corporate and other included higher incentive stock compensation expense of $14 , while 2017 included first year acquisition accounting charges for valves & controls of $30 related to inventory and $7 for backlog amortization. Year-to-date results included higher incentive stock compensation of $65 and higher acquisition/divestiture-related costs of $16 , partially offset by lower valves & controls first year acquisition accounting charges of $8 related to inventory and backlog amortization. Automation Solutions sales by major product offering are summarized below: Three Months Ended June 30, Nine Months Ended June 30, 2017 2018 2017 2018 Measurement & Analytical Instrumentation $ 744 932 2,162 2,564 Valves, Actuators & Regulators 772 953 1,718 2,746 Industrial Solutions 430 465 1,216 1,368 Process Control Systems & Solutions 494 520 1,428 1,535 Total $ 2,440 2,870 6,524 8,213 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | On January 10, 2018, the Company completed the acquisition of Cooper-Atkins for $247 , net of cash acquired. This business, which manufactures temperature management and monitoring products for foodservice markets, is reported in the Climate Technologies segment. The Company recognized goodwill of $114 (all of which is expected to be tax deductible), and identifiable intangible assets of $127 , primarily intellectual property and customer relationships with a weighted-average useful life of approximately 12 years. During the first nine months of 2018 , the Company also acquired three smaller business, two in the Automation Solutions segment and one in the Climate Technologies segment. These four businesses had combined annual sales of approximately $70 . On December 1, 2017, the Company acquired Paradigm, a provider of software solutions for the oil and gas industry, for $505 , net of cash acquired. This business had annual sales of approximately $140 and is included in the Measurement & Analytical Instrumentation product offering within Automation Solutions. The Company recognized goodwill of $332 ( $160 of which is expected to be tax deductible), and identifiable intangible assets of $238 , primarily intellectual property and customer relationships with a weighted-average useful life of approximately 11 years. Valuations of acquired assets and liabilities are in process and subject to refinement. Total cash paid for all businesses for the first nine months of 2018 was $770 , net of cash acquired. 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 . 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. On October 2, 2017, the Company sold its residential storage business for $200 in cash, and recognized a small pretax gain and an after-tax loss of $24 ( $0.04 per share) in the first quarter of 2018 due to income taxes resulting from nondeductible goodwill. The Company realized $150 in after-tax cash proceeds from the sale. Assets and liabilities for this business were classified as held-for-sale in the consolidated balance sheet at September 30, 2017 as follows: current assets, $73 ; other assets, $176 ; and accrued expenses and other liabilities, $61 . This business was previously reported within the Tools & Home Products segment. Pro Forma Financial Information The following unaudited 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. Three Months Ended Nine Months Ended June 30, 2017 Net sales $ 4,132 $ 11,677 Net earnings from continuing operations common stockholders $ 426 $ 1,155 Diluted earnings per share from continuing operations $ 0.66 $ 1.78 |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 9 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | Discontinued Operations – In fiscal 2017, the Company completed the previously announced strategic repositioning 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 billion in cash and retained a subordinated interest in distributions, contingent upon the equity holders first receiving a threshold return on their initial investment. 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. The financial results of the network power systems and power generation, motors and drives businesses reported as discontinued operations for the nine months ended June 30, 2017 were as follows: Nine Months Ended June 30, 2017 Net sales $ 1,037 Cost of sales 701 SG&A 263 Other (income) deductions, net (429 ) Earnings (Loss) before income taxes 502 Income taxes 635 Earnings (Loss), net of tax $ (133 ) The 2017 loss of $133 consisted of an after-tax loss of $180 ( $47 pretax loss) on the divestiture of the power generation, motors and drives business, an after-tax gain on the divestiture of the network power systems business of $114 ( $486 pretax), income tax expense of $103 for the planned repatriation of sales proceeds and existing cash from the businesses, lower expense of $30 due to ceasing depreciation and amortization for the discontinued businesses held-for-sale, and net earnings from operations of $6 . Net cash from operating and investing activities for the network power systems and power generation, motors and drives businesses for the nine months ended June 30, 2017 were as follows: Nine Months Ended June 30, 2017 Cash from operating activities $ (727 ) Cash from investing activities $ 5,022 Operating cash flow used by discontinued operations of $727 for the nine months ended June 30, 2017 primarily included payments for income taxes on completion of the divestitures and repatriation of cash, and professional fees and other costs. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events – On July 2, 2018, the Company completed the acquisition of Textron's tools and test equipment business for $ 807 , net of cash acquired. This business, with annual sales of approximately $470 , is a manufacturer of electrical and utility tools, diagnostics, and test and measurement instruments, and will be reported in the Tools & Home Products segment. On July 17, 2018, the Company completed the acquisition of Aventics, a global provider of smart pneumatics technologies that power machine and factory automation applications, for $622 , net of cash acquired. This business, which has annual sales of approx imately $425 , will be included in the Industrial Solutions product offering within the Automation Solutions segment . The initial accounting for these transactions is not yet complete. |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share Reconciliation | Three Months Ended Nine Months Ended 2017 2018 2017 2018 Basic shares outstanding 642.8 629.4 643.1 633.4 Dilutive shares 1.0 3.5 1.2 3.1 Diluted shares outstanding 643.8 632.9 644.3 636.5 |
Other Financial Information (Ta
Other Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Inventories | Sept 30, 2017 June 30, 2018 Inventories Finished products $ 560 610 Raw materials and work in process 1,136 1,195 Total $ 1,696 1,805 |
Property, Plant And Equipment, Net | Sept 30, 2017 June 30, 2018 Property, plant and equipment, net Property, plant and equipment, at cost $ 7,873 8,066 Less: Accumulated depreciation 4,552 4,806 Total $ 3,321 3,260 |
Goodwill By Business Segment | Sept 30, 2017 June 30, 2018 Goodwill by business segment Automation Solutions $ 4,704 5,018 Climate Technologies 555 671 Tools & Home Products 57 56 Commercial & Residential Solutions 612 727 Total $ 5,316 5,745 |
Accrued Expenses | Sept 30, 2017 June 30, 2018 Accrued expenses include the following Employee compensation $ 531 578 Customer advanced payments $ 505 503 Product warranty $ 120 122 |
Other Liabilities | Sept 30, 2017 June 30, 2018 Other liabilities Pension and postretirement liabilities $ 664 647 Deferred income taxes 425 274 Asbestos litigation 340 346 Other 551 680 Total $ 1,980 1,947 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments | The following gains and losses are included in earnings and other comprehensive income (OCI) for the three and nine months ended June 30, 2018 and 2017 : Into Earnings Into OCI 3rd Quarter Nine Months 3rd Quarter Nine Months Gains (Losses) Location 2017 2018 2017 2018 2017 2018 2017 2018 Commodity Cost of sales $ 4 2 6 13 2 (3 ) 17 1 Foreign currency Sales, cost of sales — (1 ) (17 ) (1 ) 10 (15 ) 32 (19 ) Foreign currency Other deductions, net (22 ) 28 (22 ) 16 Total $ (18 ) 29 (33 ) 28 12 (18 ) 49 (18 ) |
Fair Value Measurements | Valuations of derivative contract positions are summarized below: September 30, 2017 June 30, 2018 Assets Liabilities Assets Liabilities Foreign Currency $ 26 18 27 24 Commodity $ 12 — 3 4 |
Equity Roll Forward (Tables)
Equity Roll Forward (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity | The change in equity for the first nine months of 2018 is shown below: Common Stockholders' Equity Noncontrolling Interests in Subsidiaries Total Equity Balance at September 30, 2017 $ 8,718 52 8,770 Net earnings 1,586 16 1,602 Other comprehensive income (loss) (73 ) — (73 ) Cash dividends (924 ) (21 ) (945 ) Purchases of treasury stock, net of issuances (897 ) — (897 ) Adoption of accounting standard update 3 — 3 Balance at June 30, 2018 $ 8,413 47 8,460 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Activity in Accumulated other comprehensive income (loss) for the three and nine months ended June 30, 2018 and 2017 is shown below: Three Months Ended June 30, Nine Months Ended 2017 2018 2017 2018 Foreign currency translation Beginning balance $ (655 ) (214 ) (812 ) (369 ) Other comprehensive income (loss) before reclassifications 75 (273 ) (153 ) (101 ) Reclassified to gain/loss on sale of businesses — — 385 (17 ) Ending balance (580 ) (487 ) (580 ) (487 ) Pension and postretirement Beginning balance (1,042 ) (617 ) (1,162 ) (662 ) Amortization of deferred actuarial losses into earnings 35 22 105 67 Reclassified to gain/loss on sale of businesses — — 50 — Ending balance (1,007 ) (595 ) (1,007 ) (595 ) Cash flow hedges Beginning balance 7 4 (25 ) 12 Deferral of gains (losses) arising during the period 7 (13 ) 30 (13 ) Reclassification of realized (gains) losses to sales and cost of sales (2 ) (1 ) 7 (9 ) Ending balance 12 (10 ) 12 (10 ) Accumulated other comprehensive income (loss) $ (1,575 ) (1,092 ) (1,575 ) (1,092 ) Activity above is shown net of income taxes for the three and nine months ended June 30, 2018 and 2017, respectively, as follows: amortization of pension and postretirement deferred actuarial losses: $(8), $(18), $(24), and $(54); pension and postretirement divestiture: $-, $-, $-, and $(22); deferral of cash flow hedging gains (losses): $5, $(5), $5, and $(19); reclassification of realized cash flow hedging (gains) losses: $-, $2, $3 and $(4). |
Pension & Postretirement Expe26
Pension & Postretirement Expenses (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Summary of Pension and Postretirement Plan Expenses | Total periodic pension and postretirement expense is summarized below: Three Months Ended June 30, Nine Months Ended June 30, 2017 2018 2017 2018 Service cost $ 21 19 63 57 Interest cost 42 46 126 139 Expected return on plan assets (86 ) (87 ) (258 ) (262 ) Net amortization 53 30 159 91 Total $ 30 8 90 25 |
Other Deductions, Net (Tables)
Other Deductions, Net (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Deductions, net | Other deductions, net are summarized below: Three Months Ended Nine Months Ended 2017 2018 2017 2018 Amortization of intangibles $ 41 47 84 154 Restructuring costs 21 14 45 38 Other 25 27 74 83 Total $ 87 88 203 275 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expense by Segment | Restructuring expense by business segment follows: Three Months Ended Nine Months Ended 2017 2018 2017 2018 Automation Solutions $ 20 9 35 26 Climate Technologies 1 4 8 11 Tools & Home Products — — 1 — Commercial & Residential Solutions 1 4 9 11 Corporate — 1 1 1 Total $ 21 14 45 38 |
Change in Restructuring Reserve by Type of Cost | Details of the change in the liability for restructuring costs during the nine months ended June 30, 2018 follow: Sept 30, 2017 Expense Utilized/Paid June 30, 2018 Severance and benefits $ 60 24 48 36 Lease and other contract terminations 4 2 2 4 Asset write-downs — 1 1 — Vacant facility and other shutdown costs 1 4 3 2 Start-up and moving costs — 7 6 1 Total $ 65 38 60 43 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Automation Solutions sales by major product offering are summarized below: Three Months Ended June 30, Nine Months Ended June 30, 2017 2018 2017 2018 Measurement & Analytical Instrumentation $ 744 932 2,162 2,564 Valves, Actuators & Regulators 772 953 1,718 2,746 Industrial Solutions 430 465 1,216 1,368 Process Control Systems & Solutions 494 520 1,428 1,535 Total $ 2,440 2,870 6,524 8,213 Summarized information about the Company's results of operations by business segment follows: Three Months Ended June 30, Nine Months Ended June 30, Sales Earnings Sales Earnings 2017 2018 2017 2018 2017 2018 2017 2018 Automation Solutions $ 2,440 2,870 378 494 6,524 8,213 1,032 1,316 Climate Technologies 1,187 1,236 305 294 3,104 3,286 715 712 Tools & Home Products 415 356 97 93 1,210 1,041 281 276 Commercial & Residential Solutions 1,602 1,592 402 387 4,314 4,327 996 988 Differences in accounting methods 38 57 106 163 Corporate and other (158 ) (131 ) (358 ) (425 ) Eliminations/Interest (3 ) (6 ) (39 ) (39 ) (9 ) (20 ) (126 ) (113 ) Total $ 4,039 4,456 621 768 10,829 12,520 1,650 1,929 |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | Three Months Ended Nine Months Ended June 30, 2017 Net sales $ 4,132 $ 11,677 Net earnings from continuing operations common stockholders $ 426 $ 1,155 Diluted earnings per share from continuing operations $ 0.66 $ 1.78 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Net cash from operating and investing activities for the network power systems and power generation, motors and drives businesses for the nine months ended June 30, 2017 were as follows: Nine Months Ended June 30, 2017 Cash from operating activities $ (727 ) Cash from investing activities $ 5,022 The financial results of the network power systems and power generation, motors and drives businesses reported as discontinued operations for the nine months ended June 30, 2017 were as follows: Nine Months Ended June 30, 2017 Net sales $ 1,037 Cost of sales 701 SG&A 263 Other (income) deductions, net (429 ) Earnings (Loss) before income taxes 502 Income taxes 635 Earnings (Loss), net of tax $ (133 ) |
Summary of Significant Accoun32
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Income Tax Information [Line Items] | ||||||
Federal statutory rate | 21.00% | 35.00% | ||||
Net income tax expense (benefit), tax reform | $ (43) | $ (193) | ||||
Net income tax expense (benefit), tax reform, per diluted share | $ (0.07) | $ (0.30) | ||||
Income tax expense (benefit), continuing operations, adjustment of deferred tax (asset) liability | $ (98) | |||||
Income tax expense (benefit), repatriation of foreign earnings and withholding taxes | 185 | |||||
Income tax expense (benefit) for repatriation of foreign earnings, prior periods | $ (130) | |||||
Income tax expense (benefit) due to increase in foreign tax credit carryforwards | $ (150) | |||||
Income tax expense (benefit) due to increase in foreign tax credit carryforwards, per diluted share | $ (0.24) | |||||
Scenario, Forecast [Member] | ||||||
Schedule of Income Tax Information [Line Items] | ||||||
Effective income tax rate | 25.00% | 19.00% | ||||
Effective income tax rate, tax reform impact | 7.00% |
Weighted Average Common Share33
Weighted Average Common Shares (Schedule Of Basic And Diluted Earnings Per Share Reconciliation) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Basic shares outstanding | 629.4 | 642.8 | 633.4 | 643.1 |
Dilutive shares | 3.5 | 1 | 3.1 | 1.2 |
Diluted shares outstanding | 632.9 | 643.8 | 636.5 | 644.3 |
Other Financial Information (In
Other Financial Information (Inventories) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 610 | $ 560 |
Raw materials and work in process | 1,195 | 1,136 |
Total | $ 1,805 | $ 1,696 |
Other Financial Information (PP
Other Financial Information (PPE) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, at cost | $ 8,066 | $ 7,873 |
Less: Accumulated depreciation | 4,806 | 4,552 |
Total | $ 3,260 | $ 3,321 |
Other Financial Information (Go
Other Financial Information (Goodwill) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 5,745 | $ 5,316 |
Automation Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 5,018 | 4,704 |
Climate Technologies [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 671 | 555 |
Tools & Home Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 56 | 57 |
Commercial & Residential Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 727 | $ 612 |
Other Financial Information (Ac
Other Financial Information (Accrued Expenses) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Employee compensation | $ 578 | $ 531 |
Customer advanced payments | 503 | 505 |
Product warranty | $ 122 | $ 120 |
Other Financial Information (Ot
Other Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Other Liabilities [Abstract] | ||
Pension and postretirement liabilities | $ 647 | $ 664 |
Deferred income taxes | 274 | 425 |
Asbestos litigation | 346 | 340 |
Other | 680 | 551 |
Total | $ 1,947 | $ 1,980 |
Other Financial Information (Na
Other Financial Information (Narrative) (Details) $ in Millions | Jun. 30, 2018USD ($) |
Asbestos Issue [Member] | |
Recorded Third-Party Environmental Recoveries [Line Items] | |
Asbestos-related insurance receivables | $ 136 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Derivative Instruments) (Details) lb in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018USD ($)lb | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)lb | Jun. 30, 2017USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified to earnings | $ 29 | $ (18) | $ 28 | $ (33) |
Gain (loss) to other comprehensive income | (18) | 12 | (18) | 49 |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) to other comprehensive income | (3) | 2 | 1 | 17 |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified to earnings | 2 | 4 | 13 | 6 |
Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount of foreign currency hedge positions | 2,300 | 2,300 | ||
Foreign Exchange Contract [Member] | Other deductions, net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified to earnings | 28 | (22) | 16 | (22) |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) to other comprehensive income | (15) | 10 | (19) | 32 |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales, Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified to earnings | (1) | $ 0 | (1) | $ (17) |
All Commodity Hedges [Member] [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of commodities hedged | $ 142 | $ 142 | ||
Copper and Aluminum [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Weight in pounds of copper and aluminum commodity hedges | lb | 53 | 53 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Measurements) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value of long-term debt compared with carrying value | $ 152 | |
Maximum collateral that could have been required | 13 | |
Collateral posted to counterparties | 0 | |
Collateral held from counterparties | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of long-term debt | 3,966 | |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 27 | $ 26 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Other Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 24 | 18 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 3 | 12 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Other Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 4 | $ 0 |
Equity Roll Forward (Schedule O
Equity Roll Forward (Schedule Of Change In Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 8,770 | |||
Net earnings | $ 719 | $ 425 | 1,602 | $ 1,040 |
Other comprehensive income (loss) | (265) | $ 114 | (73) | $ 422 |
Cash dividends | (945) | |||
Purchases of treasury stock, net of issuances | (897) | |||
Adoption of accounting standard update | 3 | 3 | ||
Ending balance | 8,460 | 8,460 | ||
Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 8,718 | |||
Ending balance | 8,413 | 8,413 | ||
Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 1,586 | |||
Cash dividends | (924) | |||
Adoption of accounting standard update | 3 | 3 | ||
AOCI Attributable to Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other comprehensive income (loss) | (73) | |||
Additional Paid-in Capital [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Purchases of treasury stock, net of issuances | (897) | |||
Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 52 | |||
Net earnings | 16 | |||
Other comprehensive income (loss) | 0 | |||
Cash dividends | (21) | |||
Purchases of treasury stock, net of issuances | 0 | |||
Adoption of accounting standard update | 0 | 0 | ||
Ending balance | $ 47 | $ 47 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | $ 8,770 | ||||
Ending balance | $ 8,460 | 8,460 | |||
Accumulated other comprehensive income (loss) | (1,092) | $ (1,575) | (1,092) | $ (1,575) | $ (1,019) |
Foreign currency translation [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (214) | (655) | (369) | (812) | |
Other comprehensive income (loss) before reclassifications | (273) | 75 | (101) | (153) | |
Reclassified to gain/loss on sale of businesses | 0 | 0 | (17) | 385 | |
Ending balance | (487) | (580) | (487) | (580) | |
Pension and post retirement [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (617) | (1,042) | (662) | (1,162) | |
Amortization of deferred actuarial losses into earnings | 22 | 35 | 67 | 105 | |
Reclassified to gain/loss on sale of businesses | 0 | 0 | 0 | 50 | |
Ending balance | (595) | (1,007) | (595) | (1,007) | |
Cash Flow Hedges [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | 4 | 7 | 12 | (25) | |
Deferral of gains (losses) arising during the period | (13) | 7 | (13) | 30 | |
Reclassification of realized (gains) losses to sales and cost of sales | (1) | (2) | (9) | 7 | |
Ending balance | $ (10) | $ 12 | $ (10) | $ 12 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension and post retirement [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of deferred actuarial losses, tax | $ (8) | $ (18) | $ (24) | $ (54) |
Pension and post retirement divestiture, tax | 0 | 0 | 0 | (22) |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Deferred cash flow hedging gains (losses), tax | 5 | (5) | 5 | (19) |
Reclassification of deferred cash flow hedging (losses), tax | $ 0 | $ 2 | $ 3 | $ (4) |
Pension & Postretirement Expe45
Pension & Postretirement Expenses (Summary Of Net Periodic Pension And Net Postretirement Plan Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension And Postretirement Plan Expenses [Line Items] | ||||
Service cost | $ 19 | $ 21 | $ 57 | $ 63 |
Interest cost | 46 | 42 | 139 | 126 |
Expected return on plan assets | (87) | (86) | (262) | (258) |
Net amortization | 30 | 53 | 91 | 159 |
Total | $ 8 | $ 30 | $ 25 | $ 90 |
Other Deductions, Net (Schedule
Other Deductions, Net (Schedule Of Other Deductions, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other deductions, net [Line Items] | ||||
Amortization of intangibles | $ 47 | $ 41 | $ 154 | $ 84 |
Restructuring costs | 14 | 21 | 38 | 45 |
Other | 27 | 25 | 83 | 74 |
Total | $ 88 | $ 87 | 275 | $ 203 |
Increase (decrease) in bad debt expense | (11) | |||
Acquisition/divestiture (costs) benefit | $ (16) |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | $ 65 | ||||
Restructuring expense | $ 14 | $ 21 | 38 | $ 45 | |
Restructuring utilized/paid | 60 | ||||
Ending restructuring liability | 43 | 43 | |||
Severance and benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 60 | ||||
Restructuring expense | 24 | ||||
Restructuring utilized/paid | 48 | ||||
Ending restructuring liability | 36 | 36 | |||
Lease and other contract terminations [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 4 | ||||
Restructuring expense | 2 | ||||
Restructuring utilized/paid | 2 | ||||
Ending restructuring liability | 4 | 4 | |||
Assets Write Downs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 0 | ||||
Restructuring expense | 1 | ||||
Restructuring utilized/paid | 1 | ||||
Ending restructuring liability | 0 | 0 | |||
Vacant facility and other shutdown costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 1 | ||||
Restructuring expense | 4 | ||||
Restructuring utilized/paid | 3 | ||||
Ending restructuring liability | 2 | 2 | |||
Start-up and moving costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 0 | ||||
Restructuring expense | 7 | ||||
Restructuring utilized/paid | 6 | ||||
Ending restructuring liability | 1 | 1 | |||
Automation Solutions [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 9 | 20 | 26 | 35 | |
Commercial & Residential Solutions [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 4 | 1 | 11 | 9 | |
Climate Technologies [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 4 | 1 | 11 | 8 | |
Tools & Home Products [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 0 | 0 | 0 | 1 | |
Corporate Segment [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | $ 1 | $ 0 | $ 1 | $ 1 | |
Scenario, Forecast [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Expected fiscal year restructuring expense | $ 80 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||
Acquisition/divestiture (costs) benefit | $ (16) | ||||
Increase (decrease) in incentive stock compensation expense | $ 14 | 65 | |||
Net sales | 4,456 | $ 4,039 | 12,520 | $ 10,829 | |
Earnings | 768 | 621 | 1,929 | 1,650 | |
Automation Solutions [Member] | Measurement & Analytical Instrumentation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 932 | 744 | 2,564 | 2,162 | |
Automation Solutions [Member] | Valves, Actuators & Regulators [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 953 | 772 | 2,746 | 1,718 | |
Automation Solutions [Member] | Industrial Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 465 | 430 | 1,368 | 1,216 | |
Automation Solutions [Member] | Process Control Systems & Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 520 | 494 | 1,535 | 1,428 | |
Operating Segments [Member] | Automation Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,870 | 2,440 | 8,213 | 6,524 | |
Earnings | 494 | 378 | 1,316 | 1,032 | |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,592 | 1,602 | 4,327 | 4,314 | |
Earnings | 387 | 402 | 988 | 996 | |
Operating Segments [Member] | Tools & Home Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 356 | 415 | 1,041 | 1,210 | |
Earnings | 93 | 97 | 276 | 281 | |
Operating Segments [Member] | Climate Technologies [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,236 | 1,187 | 3,286 | 3,104 | |
Earnings | 294 | 305 | 712 | 715 | |
Differences in accounting methods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Earnings | 57 | 38 | 163 | 106 | |
Corporate and other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Earnings | (131) | (158) | (425) | (358) | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (6) | (3) | (20) | (9) | |
Earnings | $ (39) | (39) | (113) | $ (126) | |
Pentair's Valves & Controls [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,400 | ||||
Increase (decrease) first year acquisition accounting charges | $ (8) | ||||
Pentair's Valves & Controls [Member] | Order or Production Backlog [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Amortization of intangible assets | 7 | ||||
FairValueAdjustmentToInventoryOnly [Member] | Pentair's Valves & Controls [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Earnings | $ 30 |
Acquisitions and Divestitures N
Acquisitions and Divestitures Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)$ / shares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jan. 10, 2018USD ($) | Dec. 01, 2017USD ($) | Apr. 28, 2017USD ($) | |
Business Acquisition & Disposal [Line Items] | |||||||||||
Net sales | $ 4,456 | $ 4,039 | $ 12,520 | $ 10,829 | |||||||
Goodwill | 5,745 | 5,745 | $ 5,745 | $ 5,316 | |||||||
Purchase price of businesses, net of cash acquired | 770 | 2,991 | |||||||||
Proceeds from divestiture of businesses | $ 223 | $ 40 | |||||||||
Textron's Tools & Test [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Net sales | 470 | ||||||||||
Aventics [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Net sales | 425 | ||||||||||
Cooper-Atkins [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Cash paid, net of cash acquired | $ 247 | ||||||||||
Goodwill | 114 | ||||||||||
Goodwill expected tax deductible amount | 114 | ||||||||||
Intangibles | $ 127 | ||||||||||
Intangible assets, weighted average useful life | 12 years | ||||||||||
Pentair's Valves & Controls [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Cash paid, net of cash acquired | $ 2,960 | ||||||||||
Net sales | 1,400 | ||||||||||
Cash acquired | $ 207 | ||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Number of additional businesses acquired | 3 | ||||||||||
Cooper-Atkins & Series of Individually Immaterial Business Acquisitions [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Net sales | $ 70 | ||||||||||
Paradigm [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Cash paid, net of cash acquired | $ 505 | ||||||||||
Net sales | $ 140 | ||||||||||
Goodwill | 332 | ||||||||||
Goodwill expected tax deductible amount | 160 | ||||||||||
Intangibles | $ 238 | ||||||||||
Intangible assets, weighted average useful life | 11 years | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ClosetMaid [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Proceeds from divestiture of businesses | $ 200 | ||||||||||
Gain (loss) on divestiture of business, after tax | $ (24) | ||||||||||
Disposal gain (loss) impact on diluted earnings per share | $ / shares | $ (0.04) | ||||||||||
After-tax proceeds on sale of business | $ 150 | ||||||||||
Current assets held-for-sale | 73 | ||||||||||
Other noncurrent assets held-for-sale | 176 | ||||||||||
Accrued expenses & other liabilities held-for-sale | 61 | ||||||||||
Automation Solutions [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Goodwill | 5,018 | $ 5,018 | 5,018 | 4,704 | |||||||
Automation Solutions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Number of additional businesses acquired | 2 | ||||||||||
Climate Technologies [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Goodwill | $ 671 | $ 671 | $ 671 | $ 555 | |||||||
Climate Technologies [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||||||||
Business Acquisition & Disposal [Line Items] | |||||||||||
Number of additional businesses acquired | 1 |
Acquisitions and Divestitures P
Acquisitions and Divestitures Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||
Net sales | $ 4,132 | $ 11,677 |
Net earnings from continuing operations common stockholders | $ 426 | $ 1,155 |
Diluted earnings per share from continuing operations | $ 0.66 | $ 1.78 |
Discontinued Operations Results
Discontinued Operations Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financial Results of Discontinued Operations | ||||
Net sales | $ 1,037 | |||
Cost of sales | 701 | |||
SG&A | 263 | |||
Other (income) deductions, net | (429) | |||
Earnings (Loss) before income taxes | 502 | |||
Income taxes | 635 | |||
Earnings (Loss), net of tax | $ 0 | $ 6 | $ 0 | $ (133) |
Discontinued Operations Narrati
Discontinued Operations Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued operations, net of tax | $ 0 | $ 6 | $ 0 | $ (133) |
Network Power Systems Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Agreed-upon purchase price of business | 4,000 | |||
Gain (loss) on sale of business, net of tax | 114 | |||
Gain on sale of business, pretax | 486 | |||
Power Generation, Motors and Drives Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Agreed-upon purchase price of business | 1,200 | |||
Gain (loss) on sale of business, net of tax | (180) | |||
Loss on sale of business, pretax | 47 | |||
Combined, Network Power and Power Generation, motors and Drives Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net earnings (loss) from operations of discontinued operations, net of tax | 6 | |||
Income tax expense for repatriation of cash | 103 | |||
Benefit from ceasing depreciation on assets from discontinued operations | $ 30 |
Discontinued Operations Cash Fl
Discontinued Operations Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash from operating activities and investing activities for discontinued operations [Abstract] | ||
Cash from operating activities | $ 0 | $ (727) |
Cash from investing activities | $ 0 | $ 5,022 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jul. 17, 2018 | Jul. 02, 2018 | |
Subsequent Event [Line Items] | |||||||
Net sales | $ 4,456 | $ 4,039 | $ 12,520 | $ 10,829 | |||
Aventics [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Net sales | $ 425 | ||||||
Aventics [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Cash paid, net of cash acquired | $ 622 | ||||||
Textron's Tools & Test [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Net sales | $ 470 | ||||||
Textron's Tools & Test [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Cash paid, net of cash acquired | $ 807 |