Cover
Cover | 6 Months Ended |
Mar. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 1-278 |
Entity Registrant Name | EMERSON ELECTRIC CO. |
Entity Central Index Key | 0000032604 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Entity Incorporation, State or Country Code | MO |
Entity Tax Identification Number | 43-0259330 |
Entity Address, Address Line One | 8000 W. Florissant Ave. |
Entity Address, Address Line Two | P.O. Box 4100 |
Entity Address, City or Town | St. Louis, |
Entity Address, State or Province | MO |
Entity Address, Postal Zip Code | 63136 |
City Area Code | 314 |
Local Phone Number | 553-2000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 597,475,300 |
Amendment Flag | false |
NEW YORK STOCK EXCHANGE, INC. [Member] | Common Stock of $0.50 par value per share [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock of $0.50 par value per share |
Trading Symbol | EMR |
Security Exchange Name | NYSE |
NEW YORK STOCK EXCHANGE, INC. [Member] | 0.375% Notes due 2024 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.375% Notes due 2024 |
Trading Symbol | EMR 24 |
Security Exchange Name | NYSE |
NEW YORK STOCK EXCHANGE, INC. [Member] | 1.250% Notes due 2025 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.250% Notes due 2025 |
Trading Symbol | EMR 25A |
Security Exchange Name | NYSE |
NEW YORK STOCK EXCHANGE, INC. [Member] | 2.000% Notes due 2029 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 2.000% Notes due 2029 |
Trading Symbol | EMR 29 |
Security Exchange Name | NYSE |
CHICAGO STOCK EXCHANGE, INC [Member] | Common Stock of $0.50 par value per share [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock of $0.50 par value per share |
Trading Symbol | EMR |
Security Exchange Name | CHX |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales | $ 4,162 | $ 4,570 | $ 8,313 | $ 8,717 |
Costs and expenses: | ||||
Cost of sales | 2,412 | 2,645 | 4,804 | 5,031 |
Selling, general and administrative expenses | 983 | 1,145 | 2,106 | 2,222 |
Other deductions, net | 42 | 57 | 220 | 107 |
Interest expense (net of interest income of $6, $7, $12 and $12 respectively) | 36 | 48 | 71 | 91 |
Earnings before income taxes | 689 | 675 | 1,112 | 1,266 |
Income taxes | 165 | 150 | 259 | 274 |
Net earnings | 524 | 525 | 853 | 992 |
Less: Noncontrolling interests in earnings of subsidiaries | 7 | 5 | 10 | 7 |
Net earnings common stockholders | $ 517 | $ 520 | $ 843 | $ 985 |
Basic earnings per share common stockholders | $ 0.85 | $ 0.85 | $ 1.38 | $ 1.59 |
Diluted earnings per share common stockholders | 0.84 | 0.84 | 1.37 | 1.58 |
Cash dividends per common share | $ 0.50 | $ 0.49 | $ 1 | $ 0.98 |
Consolidated Statements Of Ea_2
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Interest income | $ 6 | $ 7 | $ 12 | $ 12 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net earnings | $ 524 | $ 525 | $ 853 | $ 992 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (281) | 88 | (182) | 53 |
Pension and postretirement | 30 | 12 | 58 | 25 |
Cash flow hedges | (75) | 25 | (56) | 10 |
Total other comprehensive income (loss) | (326) | 125 | (180) | 88 |
Comprehensive income | 198 | 650 | 673 | 1,080 |
Less: Noncontrolling interests in comprehensive income of subsidiaries | 8 | 6 | 11 | 8 |
Comprehensive income common stockholders | $ 190 | $ 644 | $ 662 | $ 1,072 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Current assets | ||
Cash and equivalents | $ 2,583 | $ 1,494 |
Receivables, less allowances of $112 and $112, respectively | 2,641 | 2,985 |
Inventories | 2,058 | 1,880 |
Other current assets | 750 | 780 |
Total current assets | 8,032 | 7,139 |
Property, plant and equipment, net | 3,553 | 3,642 |
Other assets | ||
Goodwill | 6,520 | 6,536 |
Other intangible assets | 2,498 | 2,615 |
Other | 1,108 | 565 |
Total other assets | 10,126 | 9,716 |
Total assets | 21,711 | 20,497 |
Current liabilities | ||
Short-term borrowings and current maturities of long-term debt | 3,741 | 1,444 |
Accounts payable | 1,521 | 1,874 |
Accrued expenses | 2,678 | 2,658 |
Total current liabilities | 7,940 | 5,976 |
Long-term debt | 3,960 | 4,277 |
Other liabilities | 2,248 | 1,971 |
Equity | ||
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding, 597.5 shares and 611.0 shares, respectively | 477 | 477 |
Additional paid-in-capital | 453 | 393 |
Retained earnings | 24,431 | 24,199 |
Accumulated other comprehensive income (loss) | (1,903) | (1,722) |
Cost of common stock in treasury, 355.9 shares and 342.4 shares, respectively | (15,941) | (15,114) |
Common stockholders’ equity | 7,517 | 8,233 |
Noncontrolling interests in subsidiaries | 46 | 40 |
Total equity | 7,563 | 8,273 |
Total liabilities and equity | $ 21,711 | $ 20,497 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 112 | $ 112 |
Common stock, par value per share | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 1,200 | 1,200 |
Common stock, shares issued | 953.4 | 953.4 |
Common stock, shares outstanding | 597.5 | 611 |
Treasury stock, shares | 355.9 | 342.4 |
Consolidated Statement of Equit
Consolidated Statement of Equity Statement - USD ($) $ in Millions | Total | Common stock | Additional paid-in-capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interests in subsidiaries |
Beginning balance at Sep. 30, 2018 | $ 348 | $ 23,072 | $ (1,015) | $ (13,935) | $ 43 | ||
Statement [Roll Forward] | |||||||
Stock plans | 32 | ||||||
Net earnings common stockholders | $ 985 | 985 | |||||
Dividends paid | (607) | (5) | |||||
Foreign currency translation | 53 | 52 | |||||
Pension and postretirement | 25 | ||||||
Cash flow hedges | 10 | 10 | |||||
Purchases | (1,000) | ||||||
Issued under stock plans | 57 | ||||||
Net earnings | 7 | ||||||
Other comprehensive income | 88 | 1 | |||||
Ending balance at Mar. 31, 2019 | 8,572 | $ 477 | 380 | 23,475 | (928) | (14,878) | 46 |
Beginning balance at Dec. 31, 2018 | 375 | 23,252 | (1,052) | (14,816) | 40 | ||
Statement [Roll Forward] | |||||||
Stock plans | 5 | ||||||
Net earnings common stockholders | 520 | 520 | |||||
Dividends paid | (302) | 0 | |||||
Foreign currency translation | 88 | 87 | |||||
Pension and postretirement | 12 | ||||||
Cash flow hedges | 25 | 25 | |||||
Purchases | (75) | ||||||
Issued under stock plans | 13 | ||||||
Net earnings | 5 | ||||||
Other comprehensive income | 125 | 1 | |||||
Ending balance at Mar. 31, 2019 | 8,572 | 477 | 380 | 23,475 | (928) | (14,878) | 46 |
Statement [Roll Forward] | |||||||
Common stockholders' equity | 8,526 | ||||||
Common stockholders' equity | 8,233 | ||||||
Beginning balance at Sep. 30, 2019 | 8,273 | 393 | 24,199 | (1,722) | (15,114) | 40 | |
Statement [Roll Forward] | |||||||
Stock plans | 60 | ||||||
Net earnings common stockholders | 843 | 843 | |||||
Dividends paid | (611) | (5) | |||||
Foreign currency translation | (182) | (183) | |||||
Pension and postretirement | 58 | ||||||
Cash flow hedges | (56) | (56) | |||||
Purchases | (942) | ||||||
Issued under stock plans | 115 | ||||||
Net earnings | 10 | ||||||
Other comprehensive income | (180) | 1 | |||||
Ending balance at Mar. 31, 2020 | 7,563 | 477 | 453 | 24,431 | (1,903) | (15,941) | 46 |
Beginning balance at Dec. 31, 2019 | 447 | 24,220 | (1,576) | (15,147) | 38 | ||
Statement [Roll Forward] | |||||||
Stock plans | 6 | ||||||
Net earnings common stockholders | 517 | 517 | |||||
Dividends paid | (306) | 0 | |||||
Foreign currency translation | (281) | (282) | |||||
Pension and postretirement | 30 | ||||||
Cash flow hedges | (75) | (75) | |||||
Purchases | (813) | ||||||
Issued under stock plans | 19 | ||||||
Net earnings | 7 | ||||||
Other comprehensive income | (326) | 1 | |||||
Ending balance at Mar. 31, 2020 | 7,563 | $ 477 | $ 453 | $ 24,431 | $ (1,903) | $ (15,941) | $ 46 |
Statement [Roll Forward] | |||||||
Common stockholders' equity | $ 7,517 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net earnings | $ 853 | $ 992 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 422 | 406 |
Stock compensation | 18 | 52 |
Pension expense | 34 | 0 |
Changes in operating working capital | (260) | (530) |
Other, net | (55) | (64) |
Cash provided by operating activities | 1,012 | 856 |
Investing activities | ||
Capital expenditures | (225) | (274) |
Purchases of businesses, net of cash and equivalents acquired | (96) | (243) |
Divestitures of businesses | 0 | 5 |
Other, net | (42) | (65) |
Cash used in investing activities | (363) | (577) |
Financing activities | ||
Net increase in short-term borrowings | 2,076 | 851 |
Proceeds from short-term borrowings greater than three months | 433 | 0 |
Proceeds from long-term debt | 0 | 1,135 |
Payments of long-term debt | (502) | (406) |
Dividends paid | (611) | (607) |
Purchases of common stock | (942) | (1,000) |
Other, net | 39 | 29 |
Cash provided by financing activities | 493 | 2 |
Effect of exchange rate changes on cash and equivalents | (53) | 10 |
Increase in cash and equivalents | 1,089 | 291 |
Beginning cash and equivalents | 1,494 | 1,093 |
Ending cash and equivalents | 2,583 | 1,384 |
Changes in operating working capital | ||
Receivables | 283 | 175 |
Inventories | (216) | (205) |
Other current assets | 32 | (82) |
Accounts payable | (290) | (211) |
Accrued expenses | (69) | (207) |
Changes in operating working capital | $ (260) | $ (530) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION 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, 2019. Certain prior year amounts have been reclassified to conform to current year presentation. On October 1, 2019, the Company adopted ASC 842, Leases, which requires rights and obligations related to lease arrangements to be recognized on the balance sheet, using the optional transition method under which prior periods were not adjusted. The Company elected the package of practical expedients for leases that commenced prior to the adoption date, which included carrying forward the historical lease classification as operating or finance. The adoption of ASC 842 resulted in the recognition of operating lease right-of-use assets and related lease liabilities of approximately $500 as of October 1, 2019, but did not materially impact the Company's earnings or cash flows for the three and six months ended March 31, 2020. On October 1, 2019, the Company adopted updates to ASC 815, Derivatives and Hedging |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Emerson is a global manufacturer that combines technology and engineering to provide innovative solutions to its customers, largely in the form of tangible products. The vast majority of the Company's revenues relate to a broad offering of manufactured products which are recognized at the point in time when control transfers, while a smaller portion is recognized over time or relates to sales arrangements with multiple performance obligations. See Note 13 for additional information about the Company's revenues. The following table summarizes the balances of the Company's unbilled receivables (contract assets), which are reported in Other current assets, and its customer advances (contract liabilities), which are reported in Accrued expenses. Sept 30, 2019 Mar 31, 2020 Unbilled receivables (contract assets) $ 456 397 Customer advances (contract liabilities) (519) (587) Net contract liabilities $ (63) (190) The majority of the Company's contract balances relate to arrangements where revenue is recognized over time and payments from customers are made according to a contractual billing schedule. The increase in net contract liabilities was due to customer billings which exceeded revenue recognized for performance completed during the period. Revenue recognized for the three and six months ended March 31, 2020 included approximately $56 and $326, respectively, that was included in the beginning contract liability balance. Other factors that impacted the change in net contract liabilities were immaterial. Revenue recognized for the six months ended March 31, 2020 for performance obligations that were satisfied in previous periods, including cumulative catchup adjustments on the Company's long-term contracts, was not material. |
Weighted Average Common Shares
Weighted Average Common Shares | 6 Months Ended |
Mar. 31, 2020 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |
Weighted Average Common Shares | 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 Six Months Ended 2019 2020 2019 2020 Basic shares outstanding 614.0 607.4 619.0 608.7 Dilutive shares 4.1 3.6 3.9 3.9 Diluted shares outstanding 618.1 611.0 622.9 612.6 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES During the first six months of 2020, the Company's acquisition spending totaled $96, net of cash acquired. The Company acquired eight businesses in 2019, all in the Automation Solutions segment, for $469, net of cash acquired. These eight businesses had combined annual sales of approximately $300. The Company recognized goodwill of $213 ($158 of which is expected to be tax deductible) and other identifiable intangible assets of $155, primarily customer relationships and intellectual property with a weighted-average life of approximately nine years. |
Pension & Postretirement Expens
Pension & Postretirement Expenses | 6 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Pension & Postretirement Plans | PENSION & POSTRETIREMENT PLANS Total periodic pension and postretirement (income) expense is summarized below: Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Service cost $ 18 22 $ 36 44 Interest cost 50 40 100 80 Expected return on plan assets (88) (84) (176) (168) Net amortization 16 38 33 75 Total $ (4) 16 $ (7) 31 |
Other Deductions, Net
Other Deductions, Net | 6 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Deductions, Net | OTHER DEDUCTIONS, NET Other deductions, net are summarized below: Three Months Ended Six Months Ended 2019 2020 2019 2020 Amortization of intangibles (intellectual property and customer $ 60 59 $ 117 118 Restructuring costs 10 31 20 128 Special advisory fees — — — 13 Other (13) (48) (30) (39) Total $ 57 42 $ 107 220 In the second quarter of fiscal 2020, the change in Other included favorable impacts from foreign currency transactions of $36 and supplemental retirement plans of $16, partially offset by an unfavorable impact from pensions of $16. On a year-to-date basis, the change in Other reflects a favorable impact from foreign currency transactions of $22 and lower litigation costs, partially offset by an unfavorable impact from pensions of $30. |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | RESTRUCTURING COSTS 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 costs incurred in the first half of fiscal 2020 largely relate to the Company's initiatives to improve operating margins that began in the third quarter of fiscal 2019 and include workforce reductions of approximately 1,800 employees. The Company expects fiscal 2020 restructuring expense and related costs to be approximately $280, an increase of $65 compared to its previous estimate, including costs to complete actions initiated in the first half of the year. Restructuring expense by business segment follows: Three Months Ended Six Months Ended 2019 2020 2019 2020 Automation Solutions $ 6 23 11 106 Climate Technologies 1 2 4 9 Tools & Home Products 2 5 4 8 Commercial & Residential Solutions 3 7 8 17 Corporate 1 1 1 5 Total $ 10 31 20 128 Details of the change in the liability for restructuring costs during the six months ended March 31, 2020 follow: Sept 30, 2019 Expense Utilized/Paid Mar 31, 2020 Severance and benefits $ 62 105 57 110 Other 7 23 26 4 Total $ 69 128 83 114 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income taxes were $165 in the second quarter of fiscal 2020 and $150 in 2019, resulting in effective tax rates of 24 percent and 22 percent, respectively. The current year rate included unfavorable discrete items, which increased the rate 1 percentage point, while the prior year rate included favorable discrete tax items, which reduced the rate 2 percentage points. Income taxes were $259 for the first six months of 2020 and $274 for 2019, resulting in effective tax rates of 23 percent and 22 percent, respectively. The prior year rate included favorable discrete items, which reduced the rate 2 percentage points. |
Leases
Leases | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES The Company leases offices; manufacturing facilities and equipment; and transportation, information technology and office equipment under operating lease arrangements. Finance lease arrangements are immaterial. The Company determines whether an arrangement is, or contains, a lease at contract inception. An arrangement contains a lease if the Company has the right to direct the use of and obtain substantially all of the economic benefits of an identified asset. Right-of-use assets and lease liabilities are recognized at lease commencement based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet and are recorded as short-term lease expense. The discount rate used to calculate present value is the Company's incremental borrowing rate based on the lease term and the economic environment of the applicable country or region. Certain leases contain renewal options or options to terminate prior to lease expiration, which are included in the measurement of right-of-use assets and lease liabilities when it is reasonably certain they will be exercised. The Company has elected to account for lease and non-lease components as a single lease component for its offices and manufacturing facilities. Some lease arrangements include payments that are adjusted periodically based on actual charges incurred for common area maintenance, utilities, taxes and insurance, or changes in an index or rate referenced in the lease. The fixed portion of these payments is included in the measurement of right-of-use assets and lease liabilities at lease commencement, while the variable portion is recorded as variable lease expense. The Company's leases typically do not contain material residual value guarantees or restrictive covenants. The components of lease expense for the three and six months ended March 31, 2020 were as follows: Three Months Ended Six Months Ended March 31, 2020 Operating lease expense $ 53 106 Variable lease expense $ 5 10 Short-term lease expense and sublease income were immaterial for the three and six months ended March 31, 2020. Cash paid for operating leases is classified within operating cash flows and was $101 for the six months ended March 31, 2020. Operating lease right-of-use asset additions were $123 for the six months ended March 31, 2020. The following table summarizes the balances of the Company's operating lease right-of-use assets and operating lease liabilities as of March 31, 2020, the vast majority of which relates to offices and manufacturing facilities: Mar 31, 2020 Right-of-use assets (Other assets) $ 496 Current lease liabilities (Accrued expenses) $ 148 Noncurrent lease liabilities (Other liabilities) $ 353 The weighted-average remaining lease term for operating leases was 5.2 years and the weighted-average discount rate was 2.8 percent as of March 31, 2020. Future maturities of operating lease liabilities as of March 31, 2020 are summarized below: Mar 31, 2020 Remainder of 2020 $ 84 2021 132 2022 100 2023 73 2024 51 Thereafter 94 Total lease payments 534 Less: Interest 33 Total lease liabilities $ 501 Lease commitments that have not yet commenced were immaterial as of March 31, 2020. |
Other Financial Information
Other Financial Information | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Other Financial Information | OTHER FINANCIAL INFORMATION Sept 30, 2019 Mar 31, 2020 Inventories Finished products $ 578 641 Raw materials and work in process 1,302 1,417 Total $ 1,880 2,058 Property, plant and equipment, net Property, plant and equipment, at cost $ 8,671 8,734 Less: Accumulated depreciation 5,029 5,181 Total $ 3,642 3,553 Goodwill by business segment Automation Solutions $ 5,467 5,404 Climate Technologies 668 726 Tools & Home Products 401 390 Commercial & Residential Solutions 1,069 1,116 Total $ 6,536 6,520 Other intangible assets Gross carrying amount $ 4,872 4,916 Less: Accumulated amortization 2,257 2,418 Net carrying amount $ 2,615 2,498 Other intangible assets include customer relationships of $1,305 and $1,391 as of March 31, 2020 and September 30, 2019, respectively. Sept 30, 2019 Mar 31, 2020 Other assets include the following: Operating lease right-of-use assets $ — 496 Pension assets 164 230 Asbestos-related insurance receivables 115 105 Deferred income taxes 97 83 Accrued expenses include the following: Customer advances (contract liabilities) $ 519 587 Employee compensation 606 512 Operating lease liabilities (current) — 148 Product warranty 140 134 Other liabilities include the following: Pension and postretirement liabilities $ 775 770 Operating lease liabilities (noncurrent) — 353 Deferred income taxes 327 339 Asbestos litigation 313 305 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Following is a discussion regarding the Company’s use of financial instruments: Hedging Activities – As of March 31, 2020, the notional amount of foreign currency hedge positions was approximately $2.2 billion, and commodity hedge contracts totaled approximately $122 (primarily 50 million pounds of copper and aluminum). All derivatives receiving hedge accounting are cash flow hedges. The majority of hedging gains and losses deferred as of March 31, 2020 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 hedge accounting. Net Investment Hedge – In fiscal 2019, the Company issued euro-denominated debt of €1.5 billion. The euro notes reduce foreign currency risk associated with the Company's international subsidiaries that use the euro as their functional currency and have been designated as a hedge of a portion of the investment in these operations. Foreign currency gains or losses associated with the euro-denominated debt are deferred in accumulated other comprehensive income (loss) and will remain until the hedged investment is sold or substantially liquidated. The following gains and losses are included in earnings and other comprehensive income (OCI) for the three and six months ended March 31, 2020 and 2019: Into Earnings Into OCI 2nd Quarter Six Months 2nd Quarter Six Months Gains (Losses) Location 2019 2020 2019 2020 2019 2020 2019 2020 Commodity Cost of sales $ (3) (1) (6) (4) 10 (23) 3 (16) Foreign currency Sales (1) (1) (3) (3) (1) (8) (2) (5) Foreign currency Cost of sales 5 4 9 11 23 (66) 12 (49) Foreign currency Other deductions, net 29 13 40 21 Net Investment Hedges Euro denominated debt 6 57 6 31 Total $ 30 15 $ 40 25 38 (40) 19 (39) Regardless of whether derivatives and non-derivative financial instruments receive hedge 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 hedge accounting are highly effective and no amounts were excluded from the assessment of hedge effectiveness. Fair Value Measurement – Valuations for all derivatives and the Company's long-term debt fall within Level 2 of the GAAP valuation hierarchy. As of March 31, 2020, the fair value of long-term debt was $4.5 billion, which exceeded the carrying value by $280. The fair values of commodity and foreign currency contracts were reported in Other current assets and Accrued expenses and did not materially change since September 30, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Mar. 31, 2020 | |
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) for the three and six months ended March 31, 2020 and 2019 is shown below, net of income taxes: Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Foreign currency translation Beginning balance $ (635) (695) (600) (794) Other comprehensive income (loss), net of tax of $(1), $(13), $(1) and $(7), respectively 87 (282) 52 (183) Ending balance (548) (977) (548) (977) Pension and postretirement Beginning balance (407) (900) (420) (928) Amortization of deferred actuarial losses into earnings, net of tax of $(4), $(8), $(8) and $(17), respectively 12 30 25 58 Ending balance (395) (870) (395) (870) Cash flow hedges Beginning balance (10) 19 5 — Deferral of gains (losses) arising during the period, net of tax of $(8), $23, $(3) and $17, respectively 24 (74) 10 (53) Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $0, $1, $0 and $1, respectively 1 (1) — (3) Ending balance 15 (56) 15 (56) Accumulated other comprehensive income (loss) $ (928) (1,903) (928) (1,903) |
Business Segments
Business Segments | 6 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS Summarized information about the Company's results of operations by business segment follows: Three Months Ended March 31, Six Months Ended March 31, Sales Earnings Sales Earnings 2019 2020 2019 2020 2019 2020 2019 2020 Automation Solutions $ 3,010 2,709 444 391 5,809 5,561 851 701 Climate Technologies 1,092 1,026 226 217 1,972 1,899 372 368 Tools & Home Products 469 432 102 89 927 862 193 175 Commercial & Residential Solutions 1,561 1,458 328 306 2,899 2,761 565 543 Stock compensation (59) 38 (52) (18) Unallocated pension and 27 12 54 25 Corporate and other (17) (22) (61) (68) Eliminations/Interest (1) (5) (48) (36) 9 (9) (91) (71) Total $ 4,570 4,162 675 689 8,717 8,313 1,266 1,112 The decrease in stock compensation expense reflects the decline in the Company's stock price in the current year. Automation Solutions sales by major product offering are summarized below: Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Measurement & Analytical Instrumentation $ 927 816 1,785 1,646 Valves, Actuators & Regulators 937 854 1,811 1,767 Industrial Solutions 574 494 1,116 1,001 Process Control Systems & Solutions 572 545 1,097 1,147 Automation Solutions $ 3,010 2,709 5,809 5,561 Depreciation and amortization (includes intellectual property, customer relationships and capitalized software) by business segment are summarized below: Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Automation Solutions $ 131 138 $ 260 277 Climate Technologies 45 45 90 89 Tools & Home Products 17 19 36 38 Commercial & Residential Solutions 62 64 126 127 Corporate and other 11 9 20 18 Total $ 204 211 $ 406 422 Sales by geographic destination are summarized below: Three Months Ended March 31, 2019 2020 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 1,523 1,082 2,605 1,346 1,037 2,383 Asia, Middle East & Africa 910 285 1,195 830 235 1,065 Europe 577 194 771 533 186 719 Total $ 3,010 1,561 4,571 2,709 1,458 4,167 Six Months Ended March 31, 2019 2020 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 2,928 1,989 4,917 2,756 1,900 4,656 Asia, Middle East & Africa 1,751 550 2,301 1,726 512 2,238 Europe 1,130 360 1,490 1,079 349 1,428 Total $ 5,809 2,899 8,708 5,561 2,761 8,322 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Contract Liabilities | The following table summarizes the balances of the Company's unbilled receivables (contract assets), which are reported in Other current assets, and its customer advances (contract liabilities), which are reported in Accrued expenses. Sept 30, 2019 Mar 31, 2020 Unbilled receivables (contract assets) $ 456 397 Customer advances (contract liabilities) (519) (587) Net contract liabilities $ (63) (190) |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share Reconciliation | Three Months Ended Six Months Ended 2019 2020 2019 2020 Basic shares outstanding 614.0 607.4 619.0 608.7 Dilutive shares 4.1 3.6 3.9 3.9 Diluted shares outstanding 618.1 611.0 622.9 612.6 |
Pension & Postretirement Expe_2
Pension & Postretirement Expenses (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Schedule of Pension and Postretirement Plan Expenses | Total periodic pension and postretirement (income) expense is summarized below: Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Service cost $ 18 22 $ 36 44 Interest cost 50 40 100 80 Expected return on plan assets (88) (84) (176) (168) Net amortization 16 38 33 75 Total $ (4) 16 $ (7) 31 |
Other Deductions, Net (Tables)
Other Deductions, Net (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Deductions, net | Other deductions, net are summarized below: Three Months Ended Six Months Ended 2019 2020 2019 2020 Amortization of intangibles (intellectual property and customer $ 60 59 $ 117 118 Restructuring costs 10 31 20 128 Special advisory fees — — — 13 Other (13) (48) (30) (39) Total $ 57 42 $ 107 220 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expense by Segment | Restructuring expense by business segment follows: Three Months Ended Six Months Ended 2019 2020 2019 2020 Automation Solutions $ 6 23 11 106 Climate Technologies 1 2 4 9 Tools & Home Products 2 5 4 8 Commercial & Residential Solutions 3 7 8 17 Corporate 1 1 1 5 Total $ 10 31 20 128 |
Schedule of Change in Restructuring Reserve by Type of Cost | Details of the change in the liability for restructuring costs during the six months ended March 31, 2020 follow: Sept 30, 2019 Expense Utilized/Paid Mar 31, 2020 Severance and benefits $ 62 105 57 110 Other 7 23 26 4 Total $ 69 128 83 114 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs | The components of lease expense for the three and six months ended March 31, 2020 were as follows: Three Months Ended Six Months Ended March 31, 2020 Operating lease expense $ 53 106 Variable lease expense $ 5 10 |
Schedule of Operating Lease Assets and Liabilities | The following table summarizes the balances of the Company's operating lease right-of-use assets and operating lease liabilities as of March 31, 2020, the vast majority of which relates to offices and manufacturing facilities: Mar 31, 2020 Right-of-use assets (Other assets) $ 496 Current lease liabilities (Accrued expenses) $ 148 Noncurrent lease liabilities (Other liabilities) $ 353 |
Schedule of Future Maturities of Operating Lease Liabilities | Future maturities of operating lease liabilities as of March 31, 2020 are summarized below: Mar 31, 2020 Remainder of 2020 $ 84 2021 132 2022 100 2023 73 2024 51 Thereafter 94 Total lease payments 534 Less: Interest 33 Total lease liabilities $ 501 |
Other Financial Information (Ta
Other Financial Information (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Inventories | Sept 30, 2019 Mar 31, 2020 Inventories Finished products $ 578 641 Raw materials and work in process 1,302 1,417 Total $ 1,880 2,058 |
Property, Plant and Equipment, net | Property, plant and equipment, net Property, plant and equipment, at cost $ 8,671 8,734 Less: Accumulated depreciation 5,029 5,181 Total $ 3,642 3,553 |
Goodwill by Business Segment | Goodwill by business segment Automation Solutions $ 5,467 5,404 Climate Technologies 668 726 Tools & Home Products 401 390 Commercial & Residential Solutions 1,069 1,116 Total $ 6,536 6,520 |
Other Intangible Assets | Other intangible assets Gross carrying amount $ 4,872 4,916 Less: Accumulated amortization 2,257 2,418 Net carrying amount $ 2,615 2,498 |
Other Assets | Sept 30, 2019 Mar 31, 2020 Other assets include the following: Operating lease right-of-use assets $ — 496 Pension assets 164 230 Asbestos-related insurance receivables 115 105 Deferred income taxes 97 83 |
Accrued Expenses | Accrued expenses include the following: Customer advances (contract liabilities) $ 519 587 Employee compensation 606 512 Operating lease liabilities (current) — 148 Product warranty 140 134 |
Other Liabilities | Other liabilities include the following: Pension and postretirement liabilities $ 775 770 Operating lease liabilities (noncurrent) — 353 Deferred income taxes 327 339 Asbestos litigation 313 305 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments | Into Earnings Into OCI 2nd Quarter Six Months 2nd Quarter Six Months Gains (Losses) Location 2019 2020 2019 2020 2019 2020 2019 2020 Commodity Cost of sales $ (3) (1) (6) (4) 10 (23) 3 (16) Foreign currency Sales (1) (1) (3) (3) (1) (8) (2) (5) Foreign currency Cost of sales 5 4 9 11 23 (66) 12 (49) Foreign currency Other deductions, net 29 13 40 21 Net Investment Hedges Euro denominated debt 6 57 6 31 Total $ 30 15 $ 40 25 38 (40) 19 (39) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Activity in Accumulated other comprehensive income (loss) for the three and six months ended March 31, 2020 and 2019 is shown below, net of income taxes: Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Foreign currency translation Beginning balance $ (635) (695) (600) (794) Other comprehensive income (loss), net of tax of $(1), $(13), $(1) and $(7), respectively 87 (282) 52 (183) Ending balance (548) (977) (548) (977) Pension and postretirement Beginning balance (407) (900) (420) (928) Amortization of deferred actuarial losses into earnings, net of tax of $(4), $(8), $(8) and $(17), respectively 12 30 25 58 Ending balance (395) (870) (395) (870) Cash flow hedges Beginning balance (10) 19 5 — Deferral of gains (losses) arising during the period, net of tax of $(8), $23, $(3) and $17, respectively 24 (74) 10 (53) Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $0, $1, $0 and $1, respectively 1 (1) — (3) Ending balance 15 (56) 15 (56) Accumulated other comprehensive income (loss) $ (928) (1,903) (928) (1,903) |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized information about the Company's results of operations by business segment follows: Three Months Ended March 31, Six Months Ended March 31, Sales Earnings Sales Earnings 2019 2020 2019 2020 2019 2020 2019 2020 Automation Solutions $ 3,010 2,709 444 391 5,809 5,561 851 701 Climate Technologies 1,092 1,026 226 217 1,972 1,899 372 368 Tools & Home Products 469 432 102 89 927 862 193 175 Commercial & Residential Solutions 1,561 1,458 328 306 2,899 2,761 565 543 Stock compensation (59) 38 (52) (18) Unallocated pension and 27 12 54 25 Corporate and other (17) (22) (61) (68) Eliminations/Interest (1) (5) (48) (36) 9 (9) (91) (71) Total $ 4,570 4,162 675 689 8,717 8,313 1,266 1,112 Depreciation and amortization (includes intellectual property, customer relationships and capitalized software) by business segment are summarized below: Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Automation Solutions $ 131 138 $ 260 277 Climate Technologies 45 45 90 89 Tools & Home Products 17 19 36 38 Commercial & Residential Solutions 62 64 126 127 Corporate and other 11 9 20 18 Total $ 204 211 $ 406 422 |
Schedule of Financial Information by Major Product Offering | Automation Solutions sales by major product offering are summarized below: Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Measurement & Analytical Instrumentation $ 927 816 1,785 1,646 Valves, Actuators & Regulators 937 854 1,811 1,767 Industrial Solutions 574 494 1,116 1,001 Process Control Systems & Solutions 572 545 1,097 1,147 Automation Solutions $ 3,010 2,709 5,809 5,561 |
Schedule of Financial Information By Geographic Area | Sales by geographic destination are summarized below: Three Months Ended March 31, 2019 2020 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 1,523 1,082 2,605 1,346 1,037 2,383 Asia, Middle East & Africa 910 285 1,195 830 235 1,065 Europe 577 194 771 533 186 719 Total $ 3,010 1,561 4,571 2,709 1,458 4,167 Six Months Ended March 31, 2019 2020 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 2,928 1,989 4,917 2,756 1,900 4,656 Asia, Middle East & Africa 1,751 550 2,301 1,726 512 2,238 Europe 1,130 360 1,490 1,079 349 1,428 Total $ 5,809 2,899 8,708 5,561 2,761 8,322 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Oct. 01, 2019 | Sep. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 496 | $ 0 | |
Operating lease liabilities | $ 501 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 500 | ||
Operating lease liabilities | $ 500 |
Revenue Recognition Contract As
Revenue Recognition Contract Assets (Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Unbilled receivables (contract assets) | $ 397 | $ 397 | $ 456 |
Customer advances (contract liabilities) | (587) | (587) | (519) |
Net contract liabilities | (190) | (190) | $ (63) |
Revenue recognized, included in beginning contract liability | $ 56 | $ 326 |
Revenue Recognition Performance
Revenue Recognition Performance Obligations (Details) $ in Billions | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Backlog | $ 5.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Percentage of backlog recognized as revenue, next 12 months | 85.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, backlog | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, backlog | 1 year |
Weighted Average Common Share_2
Weighted Average Common Shares (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Basic shares outstanding | 607.4 | 614 | 608.7 | 619 |
Dilutive shares | 3.6 | 4.1 | 3.9 | 3.9 |
Diluted shares outstanding | 611 | 618.1 | 612.6 | 622.9 |
Acquisitions and Divestitures N
Acquisitions and Divestitures Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |
Business Acquisition & Disposal [Line Items] | |||||
Purchase price of businesses, net of cash acquired | $ 96 | $ 243 | $ 469 | ||
Net sales | $ 4,162 | $ 4,570 | 8,313 | $ 8,717 | |
Goodwill | 6,520 | 6,520 | 6,536 | ||
Automation Solutions [Member] | |||||
Business Acquisition & Disposal [Line Items] | |||||
Goodwill | 5,404 | 5,404 | $ 5,467 | ||
Automation Solutions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||
Business Acquisition & Disposal [Line Items] | |||||
Number of additional businesses acquired | 8 | ||||
Net sales | $ 300 | ||||
Goodwill | 213 | ||||
Goodwill expected tax deductible amount | 158 | ||||
Intangibles | $ 155 | ||||
Intangible assets, weighted average useful life | 9 years | ||||
Climate Technologies [Member] | |||||
Business Acquisition & Disposal [Line Items] | |||||
Goodwill | $ 726 | 726 | $ 668 | ||
Climate Technologies [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||
Business Acquisition & Disposal [Line Items] | |||||
Purchase price of businesses, net of cash acquired | $ 96 |
Pension & Postretirement Expe_3
Pension & Postretirement Expenses (Schedule Of Net Periodic Pension And Net Postretirement Plan Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Pension And Postretirement Plan Expenses [Line Items] | ||||
Total | $ 34 | $ 0 | ||
Other Pension, Postretirement and Supplemental Plans [Member] | ||||
Pension And Postretirement Plan Expenses [Line Items] | ||||
Service cost | $ 22 | $ 18 | 44 | 36 |
Interest cost | 40 | 50 | 80 | 100 |
Expected return on plan assets | (84) | (88) | 168 | 176 |
Net amortization | 38 | 16 | 75 | 33 |
Total | $ 16 | $ (4) | $ 31 | $ (7) |
Other Deductions, Net (Schedule
Other Deductions, Net (Schedule Of Other Deductions, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Other deductions, net [Line Items] | ||||
Amortization of intangibles (intellectual property and customer relationships) | $ 59 | $ 60 | $ 118 | $ 117 |
Restructuring costs | 31 | 10 | 128 | 20 |
Special advisory fees | 0 | 0 | 13 | 0 |
Other | (48) | (13) | (39) | (30) |
Total | 42 | $ 57 | 220 | $ 107 |
Change in pension expense (income) | 16 | 30 | ||
Change in gain (loss) from foreign currency exchange transactions | 36 | $ 22 | ||
Change in supplemental retirement plan expense (income) | $ (16) |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | $ 69 | ||||
Restructuring expense | $ 31 | $ 10 | 128 | $ 20 | |
Restructuring utilized/paid | 83 | ||||
Ending restructuring liability | 114 | $ 114 | |||
Total number of employee workforce reductions | 1,800 | ||||
Cost of Sales [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 9 | $ 9 | |||
Severance and benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 62 | ||||
Restructuring expense | 105 | ||||
Restructuring utilized/paid | 57 | ||||
Ending restructuring liability | 110 | 110 | |||
Other Restructuring [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 7 | ||||
Restructuring expense | 23 | ||||
Restructuring utilized/paid | 26 | ||||
Ending restructuring liability | 4 | 4 | |||
Automation Solutions [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 23 | 6 | 106 | 11 | |
Commercial & Residential Solutions [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 7 | 3 | 17 | 8 | |
Climate Technologies [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 2 | 1 | 9 | 4 | |
Tools & Home Products [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 5 | 2 | 8 | 4 | |
Corporate [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | $ 1 | $ 1 | $ 5 | $ 1 | |
Forecast [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Expected fiscal year restructuring expense | $ 280 | ||||
Increase (decrease) in expected restructuring related costs | $ 65 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes | $ 165 | $ 150 | $ 259 | $ 274 |
Effective income tax rate | 24.00% | 22.00% | 23.00% | 22.00% |
Unfavorable discrete items, percentage impact | (1.00%) | |||
Favorable discrete items, percentage impact | 2.00% | 2.00% |
Leases Expense (Details)
Leases Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 53 | $ 106 |
Variable lease expense | $ 5 | 10 |
Cash paid for operating leases, operating cash flows | 101 | |
Operating lease right-of-use asset additions | $ 123 |
Leases Assets and Liabilities (
Leases Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Leases [Abstract] | ||
Right-of-use assets (Other assets) | $ 496 | $ 0 |
Current lease liabilities (Accrued expenses) | 148 | 0 |
Noncurrent lease liabilities (Other liabilities) | $ 353 | $ 0 |
Operating leases, weighted-average remaining term | 5 years 2 months 12 days | |
Operating leases, weighted-average discount rate | 2.80% |
Leases Future Maturities of Ope
Leases Future Maturities of Operating Lease Liabilities (Details) $ in Millions | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Operating lease payments due, remainder of 2020 | $ 84 |
Operating lease payments due, 2021 | 132 |
Operating lease payments due, 2022 | 100 |
Operating lease payments due, 2023 | 73 |
Operating lease payments due, 2024 | 51 |
Operating lease payments due, thereafter | 94 |
Total lease payments | 534 |
Less: Interest | 33 |
Total lease liabilities | $ 501 |
Leases Future Minimum Payments
Leases Future Minimum Payments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Future minimum annual rentals for noncancelable long-term leases, 2020 | $ 159 |
Future minimum annual rentals for noncancelable long-term leases, 2021 | 112 |
Future minimum annual rentals for noncancelable long-term leases, 2022 | 82 |
Future minimum annual rentals for noncancelable long-term leases, 2023 | 57 |
Future minimum annual rentals for noncancelable long-term leases, 2024 | 38 |
Future minimum annual rentals for noncancelable long-term leases, thereafter | $ 63 |
Other Financial Information (In
Other Financial Information (Inventories) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 641 | $ 578 |
Raw materials and work in process | 1,417 | 1,302 |
Total | $ 2,058 | $ 1,880 |
Other Financial Information (PP
Other Financial Information (PPE) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, at cost | $ 8,734 | $ 8,671 |
Less: Accumulated depreciation | 5,181 | 5,029 |
Total | $ 3,553 | $ 3,642 |
Other Financial Information (Go
Other Financial Information (Goodwill) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Goodwill [Line Items] | ||
Goodwill | $ 6,520 | $ 6,536 |
Automation Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 5,404 | 5,467 |
Commercial & Residential Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,116 | 1,069 |
Climate Technologies [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 726 | 668 |
Tools & Home Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 390 | $ 401 |
Other Financial Information (_2
Other Financial Information (Intangibles) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 4,916 | $ 4,872 |
Less: Accumulated amortization | 2,418 | 2,257 |
Net carrying amount | 2,498 | 2,615 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount | $ 1,305 | $ 1,391 |
Other Financial Information (Ot
Other Financial Information (Other Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 496 | $ 0 |
Pension assets | 230 | 164 |
Asbestos-related insurance receivables | 105 | 115 |
Deferred income taxes | $ 83 | $ 97 |
Other Financial Information (Ac
Other Financial Information (Accrued Expenses) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Customer advances (contract liabilities) | $ 587 | $ 519 |
Employee compensation | 512 | 606 |
Operating lease liabilities (current) | 148 | 0 |
Product warranty | $ 134 | $ 140 |
Other Financial Information (_3
Other Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Other Liabilities [Abstract] | ||
Pension and postretirement liabilities | $ 770 | $ 775 |
Operating lease liabilities (noncurrent) | 353 | 0 |
Deferred income taxes | 339 | 327 |
Asbestos litigation | $ 305 | $ 313 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Derivative Instruments) (Details) € in Millions, lb in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020USD ($)lb | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)lb | Mar. 31, 2019USD ($) | Sep. 30, 2019EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | $ 15 | $ 30 | $ 25 | $ 40 | |
Gain (loss) to other comprehensive income | (40) | 38 | (39) | 19 | |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) to other comprehensive income | (23) | 10 | (16) | 3 | |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | (1) | (3) | (4) | (6) | |
Foreign Exchange Contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency hedge positions | 2,200 | 2,200 | |||
Foreign Exchange Contract [Member] | Other deductions, net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 13 | 29 | 21 | 40 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 4 | 5 | 11 | 9 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) to other comprehensive income | (66) | 23 | (49) | 12 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | (1) | (1) | (3) | (3) | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) to other comprehensive income | (8) | (1) | (5) | (2) | |
Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) to other comprehensive income | 57 | 6 | 31 | 6 | |
Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | Other deductions, net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) to other comprehensive income | |||||
All Commodity Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of commodities hedged | $ 122 | $ 122 | |||
Copper and Aluminum [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Weight in pounds of copper and aluminum commodity hedges | lb | 50 | 50 | |||
Senior Notes [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Debt, face amount | € | € 1,500 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Measurements) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Derivatives, Fair Value [Line Items] | |
Fair value of long-term debt compared with carrying value | $ 280 |
Maximum collateral that could have been required | 53 |
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 | $ 4,500 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | $ 8,273 | ||||
Ending balance | $ 7,563 | $ 8,572 | 7,563 | $ 8,572 | |
Accumulated other comprehensive income (loss) | (1,903) | (928) | (1,903) | (928) | $ (1,722) |
Foreign currency translation [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (695) | (635) | (794) | (600) | |
Other comprehensive income (loss), foreign currency translation, net of tax of $(13), $(1), $(7), and $(1) | (282) | 87 | (183) | 52 | |
Ending balance | (977) | (548) | (977) | (548) | |
Pension and post retirement [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (900) | (407) | (928) | (420) | |
Amortization of deferred actuarial losses into earnings, net of tax of $(8), $(4), $(17) and $(8) | 30 | 12 | 58 | 25 | |
Ending balance | (870) | (395) | (870) | (395) | |
Cash Flow Hedges [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | 19 | (10) | 0 | 5 | |
Deferral of gains (losses) arising during the period, net of tax of $23, $(8), $17 and $(3) | (74) | 24 | (53) | 10 | |
Reclassification of realized gains (losses) to sales and cost of sales, net of tax of $1, $0, $1 and $0 | (1) | 1 | (3) | 0 | |
Ending balance | $ (56) | $ 15 | $ (56) | $ 15 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation, tax | $ (13) | $ (1) | $ (7) | $ (1) |
Amortization of deferred actuarial losses, tax | (8) | (4) | (17) | (8) |
Deferred cash flow hedging gains (losses), tax | 23 | (8) | 17 | (3) |
Reclassification of realized cash flow hedging (losses), tax | $ 1 | $ 0 | $ 1 | $ 0 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,162 | $ 4,570 | $ 8,313 | $ 8,717 |
Earnings | 689 | 675 | 1,112 | 1,266 |
Interest expense | (36) | (48) | (71) | (91) |
Operating Segments [Member] | Automation Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,709 | 3,010 | 5,561 | 5,809 |
Earnings | 391 | 444 | 701 | 851 |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,458 | 1,561 | 2,761 | 2,899 |
Earnings | 306 | 328 | 543 | 565 |
Operating Segments [Member] | Climate Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,026 | 1,092 | 1,899 | 1,972 |
Earnings | 217 | 226 | 368 | 372 |
Operating Segments [Member] | Tools & Home Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 432 | 469 | 862 | 927 |
Earnings | 89 | 102 | 175 | 193 |
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Stock compensation | 38 | (59) | (18) | (52) |
Unallocated pension and postretirement costs | 12 | 27 | 25 | 54 |
Interest expense | (36) | (48) | (71) | (91) |
Corporate and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earnings | (22) | (17) | (68) | (61) |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ (5) | $ (1) | $ (9) | $ 9 |
Business Segments Product Line
Business Segments Product Line Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,162 | $ 4,570 | $ 8,313 | $ 8,717 |
Automation Solutions [Member] | Measurement & Analytical Instrumentation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 816 | 927 | 1,646 | 1,785 |
Automation Solutions [Member] | Valves, Actuators & Regulators [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 854 | 937 | 1,767 | 1,811 |
Automation Solutions [Member] | Industrial Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 494 | 574 | 1,001 | 1,116 |
Automation Solutions [Member] | Process Control Systems & Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 545 | 572 | 1,147 | 1,097 |
Operating Segments [Member] | Automation Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,709 | $ 3,010 | $ 5,561 | $ 5,809 |
Business Segments Business Segm
Business Segments Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 211 | $ 204 | $ 422 | $ 406 |
Corporate and other [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 9 | 11 | 18 | 20 |
Operating Segments [Member] | Automation Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 138 | 131 | 277 | 260 |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 64 | 62 | 127 | 126 |
Operating Segments [Member] | Climate Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 45 | 45 | 89 | 90 |
Operating Segments [Member] | Tools & Home Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 19 | $ 17 | $ 38 | $ 36 |
Business Segments Geographic In
Business Segments Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,162 | $ 4,570 | $ 8,313 | $ 8,717 |
Reportable Geographical Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,167 | 4,571 | 8,322 | 8,708 |
Reportable Geographical Components [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,383 | 2,605 | 4,656 | 4,917 |
Reportable Geographical Components [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,065 | 1,195 | 2,238 | 2,301 |
Reportable Geographical Components [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 719 | 771 | 1,428 | 1,490 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,709 | 3,010 | 5,561 | 5,809 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,346 | 1,523 | 2,756 | 2,928 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 830 | 910 | 1,726 | 1,751 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 533 | 577 | 1,079 | 1,130 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,458 | 1,561 | 2,761 | 2,899 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,037 | 1,082 | 1,900 | 1,989 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 235 | 285 | 512 | 550 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 186 | $ 194 | $ 349 | $ 360 |
Uncategorized Items - emr-20200
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 25,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 5,000,000 |