Cover
Cover | 9 Months Ended |
Jun. 30, 2021shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
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 | 2021 |
Document Fiscal Period Focus | Q3 |
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 | 597,800,000 |
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 | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net sales | $ 4,697 | $ 3,914 | $ 13,289 | $ 12,227 |
Costs and expenses: | ||||
Cost of sales | 2,715 | 2,296 | 7,722 | 7,100 |
Selling, general and administrative expenses | 1,073 | 934 | 3,125 | 3,040 |
Other deductions, net | 88 | 181 | 243 | 401 |
Interest expense (net of interest income of $3, $4, $9 and $16, respectively) | 37 | 45 | 115 | 116 |
Earnings before income taxes | 784 | 458 | 2,084 | 1,570 |
Income taxes | 151 | 51 | 431 | 310 |
Net earnings | 633 | 407 | 1,653 | 1,260 |
Less: Noncontrolling interests in earnings of subsidiaries | 6 | 8 | 20 | 18 |
Net earnings common stockholders | $ 627 | $ 399 | $ 1,633 | $ 1,242 |
Basic earnings per share common stockholders | $ 1.05 | $ 0.67 | $ 2.73 | $ 2.05 |
Diluted earnings per share common stockholders | $ 1.04 | $ 0.67 | $ 2.71 | $ 2.04 |
Consolidated Statements Of Ea_2
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Interest income | $ 3 | $ 4 | $ 9 | $ 16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net earnings | $ 633 | $ 407 | $ 1,653 | $ 1,260 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (5) | 134 | 163 | (48) |
Pension and postretirement | 27 | 29 | 81 | 87 |
Cash flow hedges | (6) | 40 | 26 | (16) |
Total other comprehensive income (loss) | 16 | 203 | 270 | 23 |
Comprehensive income | 649 | 610 | 1,923 | 1,283 |
Less: Noncontrolling interests in comprehensive income of subsidiaries | 7 | 7 | 20 | 18 |
Comprehensive income common stockholders | $ 642 | $ 603 | $ 1,903 | $ 1,265 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Current assets | ||
Cash and equivalents | $ 2,860 | $ 3,315 |
Receivables, less allowances of $124 and $138, respectively | 2,754 | 2,802 |
Inventories | 2,114 | 1,928 |
Other current assets | 1,038 | 761 |
Total current assets | 8,766 | 8,806 |
Property, plant and equipment, net | 3,664 | 3,688 |
Other assets | ||
Goodwill | 7,777 | 6,734 |
Other intangible assets | 2,993 | 2,468 |
Other | 1,284 | 1,186 |
Total other assets | 12,054 | 10,388 |
Total assets | 24,484 | 22,882 |
Current liabilities | ||
Short-term borrowings and current maturities of long-term debt | 1,478 | 1,160 |
Accounts payable | 1,966 | 1,715 |
Accrued expenses | 3,226 | 2,910 |
Total current liabilities | 6,670 | 5,785 |
Long-term debt | 5,835 | 6,326 |
Other liabilities | 2,640 | 2,324 |
Equity | ||
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding, 597.8 shares and 598.0 shares, respectively | 477 | 477 |
Additional paid-in-capital | 518 | 470 |
Retained earnings | 25,678 | 24,955 |
Accumulated other comprehensive income (loss) | (1,307) | (1,577) |
Cost of common stock in treasury, 355.6 shares and 355.4 shares, respectively | (16,075) | (15,920) |
Common stockholders’ equity | 9,291 | 8,405 |
Noncontrolling interests in subsidiaries | 48 | 42 |
Total equity | 9,339 | 8,447 |
Total liabilities and equity | $ 24,484 | $ 22,882 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 124 | $ 138 |
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 | 597.8 | 598 |
Treasury stock, shares | 355.6 | 355.4 |
Consolidated Statement of Equit
Consolidated Statement of Equity Statement - USD ($) $ in Millions | Total | Common stock | Additional paid-in-capital | Retained earnings | Retained earningsCumulative effect of adoption of accounting standard | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interests in subsidiaries |
Beginning balance at Sep. 30, 2019 | $ 393 | $ 24,199 | $ 0 | $ (1,722) | $ (15,114) | $ 40 | ||
Statement [Roll Forward] | ||||||||
Stock plans | 66 | |||||||
Net earnings common stockholders | $ 1,242 | 1,242 | ||||||
Dividends paid | (910) | (11) | ||||||
Foreign currency translation | (48) | (48) | ||||||
Pension and postretirement | 87 | |||||||
Cash flow hedges | (16) | (16) | ||||||
Purchases | (942) | |||||||
Issued under stock plans | 119 | |||||||
Net earnings | 18 | |||||||
Other comprehensive income | 23 | 0 | ||||||
Ending balance at Jun. 30, 2020 | 7,878 | $ 477 | 459 | 24,531 | (1,699) | (15,937) | 47 | |
Beginning balance at Mar. 31, 2020 | 453 | 24,431 | 0 | (1,903) | (15,941) | 46 | ||
Statement [Roll Forward] | ||||||||
Stock plans | 6 | |||||||
Net earnings common stockholders | 399 | 399 | ||||||
Dividends paid | (299) | (6) | ||||||
Foreign currency translation | 134 | 135 | ||||||
Pension and postretirement | 29 | |||||||
Cash flow hedges | 40 | 40 | ||||||
Purchases | 0 | |||||||
Issued under stock plans | 4 | |||||||
Net earnings | 8 | |||||||
Other comprehensive income | 203 | (1) | ||||||
Ending balance at Jun. 30, 2020 | 7,878 | 477 | 459 | 24,531 | (1,699) | (15,937) | 47 | |
Statement [Roll Forward] | ||||||||
Common stockholders' equity | 7,831 | |||||||
Common stockholders' equity | 8,405 | |||||||
Beginning balance at Sep. 30, 2020 | 8,447 | 470 | 24,955 | (1) | (1,577) | (15,920) | 42 | |
Statement [Roll Forward] | ||||||||
Stock plans | 48 | |||||||
Net earnings common stockholders | 1,633 | 1,633 | ||||||
Dividends paid | (909) | (14) | ||||||
Foreign currency translation | 163 | 163 | ||||||
Pension and postretirement | 81 | |||||||
Cash flow hedges | 26 | 26 | ||||||
Purchases | (275) | |||||||
Issued under stock plans | 120 | |||||||
Net earnings | 20 | |||||||
Other comprehensive income | 270 | 0 | ||||||
Ending balance at Jun. 30, 2021 | 9,339 | 477 | 518 | 25,678 | (1,307) | (16,075) | 48 | |
Beginning balance at Mar. 31, 2021 | 511 | 25,354 | $ 0 | (1,322) | (15,890) | 50 | ||
Statement [Roll Forward] | ||||||||
Stock plans | 7 | |||||||
Net earnings common stockholders | 627 | 627 | ||||||
Dividends paid | (303) | (9) | ||||||
Foreign currency translation | (5) | (6) | ||||||
Pension and postretirement | 27 | |||||||
Cash flow hedges | (6) | (6) | ||||||
Purchases | (193) | |||||||
Issued under stock plans | 8 | |||||||
Net earnings | 6 | |||||||
Other comprehensive income | 16 | 1 | ||||||
Ending balance at Jun. 30, 2021 | 9,339 | $ 477 | $ 518 | $ 25,678 | $ (1,307) | $ (16,075) | $ 48 | |
Statement [Roll Forward] | ||||||||
Common stockholders' equity | $ 9,291 |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Dividends paid, per share | $ 0.505 | $ 0.50 | $ 1.515 | $ 1.50 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net earnings | $ 1,653 | $ 1,260 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 720 | 631 |
Stock compensation | 191 | 69 |
Pension expense | 23 | 50 |
Total changes in operating working capital | 246 | (86) |
Other, net | (113) | (70) |
Cash provided by operating activities | 2,720 | 1,854 |
Investing activities | ||
Capital expenditures | (350) | (329) |
Purchases of businesses, net of cash and equivalents acquired | (1,611) | (114) |
Other, net | 53 | (65) |
Cash used in investing activities | (1,908) | (508) |
Financing activities | ||
Net increase in short-term borrowings | 31 | 269 |
Proceeds from short-term borrowings greater than three months | 71 | 546 |
Payments of short-term borrowings greater than three months | 0 | (340) |
Proceeds from long-term debt | 0 | 1,488 |
Payments of long-term debt | (305) | (502) |
Dividends paid | (909) | (910) |
Purchases of common stock | (268) | (942) |
Other, net | 89 | 28 |
Cash used in financing activities | (1,291) | (363) |
Effect of exchange rate changes on cash and equivalents | 24 | (27) |
Increase (Decrease) in cash and equivalents | (455) | 956 |
Beginning cash and equivalents | 3,315 | 1,494 |
Ending cash and equivalents | 2,860 | 2,450 |
Changes in operating working capital | ||
Receivables | 76 | 456 |
Inventories | (160) | (218) |
Other current assets | (69) | 40 |
Accounts payable | 216 | (439) |
Accrued expenses | 183 | 75 |
Total changes in operating working capital | $ 246 | $ (86) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2021 | |
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, 2020. Certain prior year amounts have been reclassified to conform to current year presentation - see Note 12. Effective October 1, 2020, the Company adopted two accounting standard updates and one new accounting standard which had an immaterial impact on the Company's financial statements as of and for the nine months ended June 30, 2021. These included: • Updates to ASC 350, Intangibles - Goodwill and Other , which eliminate the requirement to measure impairment based on the implied fair value of goodwill compared to the carrying amount of a reporting unit’s goodwill. Instead, goodwill impairment will be measured as the excess of a reporting unit’s carrying amount over its estimated fair value. • Updates to ASC 350, Intangibles - Goodwill and Other , which align the requirements for capitalizing implementation costs incurred in a software hosting arrangement with the requirements for costs incurred to develop or obtain internal-use software. • Adoption of ASC 326, Financial Instruments - Credit Losses , which amends the impairment model by requiring entities to use a forward-looking approach to estimate lifetime expected credit losses on certain types of financial instruments, including trade receivables. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jun. 30, 2021 | |
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 12 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, 2020 June 30, 2021 Unbilled receivables (contract assets) $ 458 500 Customer advances (contract liabilities) (583) (774) Net contract liabilities $ (125) (274) 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 nine months ended June 30, 2021 included $53 and $415 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 three and nine months ended June 30, 2021 for performance obligations that |
Weighted Average Common Shares
Weighted Average Common Shares | 9 Months Ended |
Jun. 30, 2021 | |
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 Nine Months Ended 2020 2021 2020 2021 Basic shares outstanding 596.9 598.2 604.8 598.7 Dilutive shares 3.1 3.9 3.6 3.6 Diluted shares outstanding 600.0 602.1 608.4 602.3 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES On October 1, 2020, the Company completed the acquisition of Open Systems International, Inc. (OSI), a leading operations technology software provider in the global power industry, for approximately $1.6 billion, net of cash acquired. This business, which has annual sales of approximately $170 and is reported in the Automation Solutions segment, expands the Company's offerings in the power industry to include the digitization and modernization of the electric grid. The Company recognized goodwill of $960 (none of which is expected to be tax deductible), identifiable intangible assets of $783, primarily intellectual property and customer relationships with a weighted-average useful life of approximately 11 years, and deferred tax liabilities of approximately $185. Results of operations for the three months ended June 30, 2021 included first-year pretax acquisition accounting charges related to backlog amortization and deferred revenue of $7 and $3, respectively, while year-to-date results included $24 and $11, respectively. On November 17, 2020, the Company acquired the remaining interest of an equity investment for approximately $19, net of cash acquired. The Company acquired three businesses in fiscal 2020, two in the Automation Solutions segment and one in the Climate Technologies segment, for $126, net of cash acquired. |
Pension & Postretirement Plans
Pension & Postretirement Plans | 9 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Pension & Postretirement Plans | PENSION & POSTRETIREMENT PLANS Total periodic pension and postretirement (income) expense is summarized below: Three Months Ended June 30, Nine Months Ended June 30, 2020 2021 2020 2021 Service cost $ 21 21 65 63 Interest cost 40 32 120 96 Expected return on plan assets (84) (84) (252) (252) Net amortization 38 35 113 105 Total $ 15 4 46 12 |
Other Deductions, Net
Other Deductions, Net | 9 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Deductions, Net | OTHER DEDUCTIONS, NET Other deductions, net are summarized below: Three Months Ended Nine Months Ended 2020 2021 2020 2021 Amortization of intangibles (intellectual property and customer relationships) $ 60 71 178 223 Restructuring costs 88 28 216 111 Special advisory fees — — 13 — Other 33 (11) (6) (91) Total $ 181 88 401 243 The increase in intangibles amortization for the three and nine months ended June 30, 2021 was due to the OSI acquisition, including backlog amortization of $7 an d $24, respectively. The change in Other for the third quarter of fiscal 2021 included a favorable impact from foreign currency transactions of $25 due to losses in the prior year and a favorable impact from pensions. For the nine months ended June 30, 2021, the change in Other reflects a favorable impact from pensions and investment-related gains, including gains in the first quarter of fiscal 2021 of $21 from an investment sale and $17 from the acquisition of the remaining interest of an equity investment, and a gain in the second quarter of $31 from the sale of an equity investment. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Jun. 30, 2021 | |
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. Costs incurred in the first nine months of fiscal 2021 relate to the Company's initiatives that began in the third quarter of fiscal 2019 to improve operating margins and were increased in response to the effects of the COVID-19 pandemic on demand for the Company's products. Expenses incurred in the first nine months of f iscal 2021 included costs related to workforce reductions of approximately 1,900 employees. The Company expects fiscal 2021 restructuring expense and related costs to be approximately $200, including costs to complete actions initiated in the first nine months of the year. Restructuring expense by business segment follows: Three Months Ended Nine Months Ended 2020 2021 2020 2021 Automation Solutions $ 76 18 182 94 Climate Technologies 5 4 14 8 Tools & Home Products 4 2 12 4 Commercial & Residential Solutions 9 6 26 12 Corporate 3 4 8 5 Total $ 88 28 216 111 Details of the change in the liability for restructuring costs during the nine months ended June 30, 2021 follow: Sept 30, 2020 Expense Utilized/Paid June 30, 2021 Severance and benefits $ 176 87 95 168 Other 5 24 22 7 Total $ 181 111 117 175 The tables above do not include $6 and $4 of costs related to restructuring actions incurred for the three months ended June 30, 2020 and 2021, respectively, that are required to be reported in cost of sales and selling, general and administrative expenses; year-to-date amounts are $15 and $11, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | TAXES Income taxes were $151 in the third quarter of fiscal 2021 and $51 in 2020, resulting in effective tax rates of 19 percent and 11 percent, respectively. The current year rate included $24 of favorable net discrete tax items which decreased the rate 3 percentage points. The prior year rate included $57 of discrete benefits, which decreased the rate 12 percentage points, related to updates to estimates for the prior year U.S. income tax return and the impact of a research and development tax credit study. Income taxes were $431 for the first nine months of 2021 and $310 for 2020, resulting in effective tax rates of 21 percent and 20 percent, respectively. The current year and prior year rates included favorable net discrete items which reduced the rates 1 percentage point and 3 percentage points, respectively. On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic, and among other things, provides tax relief to businesses. Tax provisions of the CARES Act include the deferral of certain payroll taxes, relief for retaining employees, and other provisions. The Company deferred $73 of certain payroll taxes through the end of calendar year 2020, half of which is due in December 2021 with the remainder due in December 2022. |
Other Financial Information
Other Financial Information | 9 Months Ended |
Jun. 30, 2021 | |
Disclosure Text Block [Abstract] | |
Other Financial Information | OTHER FINANCIAL INFORMATION Sept 30, 2020 June 30, 2021 Inventories Finished products $ 584 666 Raw materials and work in process 1,344 1,448 Total $ 1,928 2,114 Property, plant and equipment, net Property, plant and equipment, at cost $ 9,055 9,318 Less: Accumulated depreciation 5,367 5,654 Total $ 3,688 3,664 Sept 30, 2020 June 30, 2021 Goodwill by business segment Automation Solutions $ 5,583 6,594 Climate Technologies 730 757 Tools & Home Products 421 426 Commercial & Residential Solutions 1,151 1,183 Total $ 6,734 7,777 Other intangible assets Gross carrying amount $ 5,106 5,971 Less: Accumulated amortization 2,638 2,978 Net carrying amount $ 2,468 2,993 Other intangible assets include customer relationships, net, of $1,328 and $1,554 as of September 30, 2020 and June 30, 2021, respectively. The increases in goodwill and other intangible assets reflect the acquisition of OSI. See Note 4. Other assets include the following: Operating lease right-of-use assets $ 508 503 Pension assets 265 415 Deferred income taxes 99 110 Asbestos-related insurance receivables 100 96 Accrued expenses include the following: Customer advances (contract liabilities) $ 583 774 Employee compensation 577 629 Product warranty 148 155 Operating lease liabilities (current) 148 151 Other liabilities include the following: Pension and postretirement liabilities $ 769 781 Deferred income taxes 261 555 Operating lease liabilities (noncurrent) 373 366 Asbestos litigation 295 267 The increase in deferred income taxes is largely due to the OSI acquisition. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021, the notional amount of foreign currency hedge positions was approximately $1.9 billion, and commodity hedge contracts totaled approximately $139 (primarily 42 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 June 30, 2021 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 nine months ended June 30, 2021 and 2020: Into Earnings Into OCI 3rd Quarter Nine Months 3rd Quarter Nine Months Gains (Losses) Location 2020 2021 2020 2021 2020 2021 2020 2021 Commodity Cost of sales $ (4) 13 (8) 24 17 8 1 34 Foreign currency Sales (2) — (5) 2 6 — 1 3 Foreign currency Cost of sales (3) 3 8 5 21 1 (28) 28 Foreign currency Other deductions, net (26) 8 (5) 33 Net Investment Hedges Euro denominated debt (72) 6 (41) (21) Total $ (35) 24 (10) 64 (28) 15 (67) 44 Regardless of whether derivatives and non-derivative financial instruments receive hedge accounting, the Company expects hedging gains or losses to be 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 hierarch y. As of June 30, 2021, the fair value of long-term debt was $6.9 billion, which exceeded the carrying value by $526. 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, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Jun. 30, 2021 | |
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 nine months ended June 30, 2021 and 2020 is shown below, net of income taxes: Three Months Ended June 30, Nine Months Ended June 30, 2020 2021 2020 2021 Foreign currency translation Beginning balance $ (977) (542) (794) (711) Other comprehensive income (loss), net of tax of $17, $(1), $10 and $5, respectively 135 (6) (48) 163 Ending balance (842) (548) (842) (548) Pension and postretirement Beginning balance (870) (810) (928) (864) Amortization of deferred actuarial losses into earnings, net of tax of $(9), $(8), $(26) and $(24), respectively 29 27 87 81 Ending balance (841) (783) (841) (783) Cash flow hedges Beginning balance (56) 30 — (2) Deferral of gains (losses) arising during the period, net of tax of $(11), $(2), $6 and $(15), respectively 33 7 (20) 50 Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $(2), $3, $(1) and $7, respectively 7 (13) 4 (24) Ending balance (16) 24 (16) 24 Accumulated other comprehensive income (loss) $ (1,699) (1,307) (1,699) (1,307) |
Business Segments
Business Segments | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS 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 2020 2021 2020 2021 2020 2021 2020 2021 Automation Solutions $ 2,589 2,947 311 521 8,150 8,432 1,012 1,353 Climate Technologies 970 1,268 195 274 2,869 3,459 563 731 Tools & Home Products 357 489 58 101 1,219 1,419 233 311 Commercial & Residential Solutions 1,327 1,757 253 375 4,088 4,878 796 1,042 Stock compensation (51) (66) (69) (191) Unallocated pension and postretirement costs 12 24 37 71 Corporate and other (22) (33) (90) (76) Eliminations/Interest (2) (7) (45) (37) (11) (21) (116) (115) Total $ 3,914 4,697 458 784 12,227 13,289 1,570 2,084 In fiscal 2021, the Company reclassified certain software product sales that were previously reported in Measurement and Analytical Instrumentation to Systems & Software (previously described as Process Control Systems & Solutions). Automation Solutions sales by major product offering are summarized below, including the reclassification of prior year amounts to reflect this change. Three Months Ended June 30, Nine Months Ended June 30, 2020 2021 2020 2021 Measurement & Analytical Instrumentation $ 709 781 2,280 2,211 Valves, Actuators & Regulators 842 880 2,609 2,522 Industrial Solutions 469 593 1,470 1,656 Systems & Software 569 693 1,791 2,043 Automation Solutions $ 2,589 2,947 8,150 8,432 Depreciation and amortization (includes intellectual property, customer relationships and capitalized software) by business segment are summarized below: Three Months Ended June 30, Nine Months Ended June 30, 2020 2021 2020 2020 Automation Solutions $ 137 152 414 464 Climate Technologies 44 48 133 144 Tools & Home Products 20 20 58 59 Commercial & Residential Solutions 64 68 191 203 Corporate and other 8 17 26 53 Total $ 209 237 631 720 Sales by geographic destination are summarized below: Three Months Ended June 30, 2020 2021 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 1,159 915 2,074 1,321 1,190 2,511 Asia, Middle East & Africa 893 253 1,146 1,011 331 1,342 Europe 537 159 696 615 236 851 Total $ 2,589 1,327 3,916 2,947 1,757 4,704 Nine Months Ended June 30, 2020 2021 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 3,915 2,815 6,730 3,711 3,290 7,001 Asia, Middle East & Africa 2,619 765 3,384 2,907 944 3,851 Europe 1,616 508 2,124 1,814 644 2,458 Total $ 8,150 4,088 12,238 8,432 4,878 13,310 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
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, 2020 June 30, 2021 Unbilled receivables (contract assets) $ 458 500 Customer advances (contract liabilities) (583) (774) Net contract liabilities $ (125) (274) |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share Reconciliation | Three Months Ended Nine Months Ended 2020 2021 2020 2021 Basic shares outstanding 596.9 598.2 604.8 598.7 Dilutive shares 3.1 3.9 3.6 3.6 Diluted shares outstanding 600.0 602.1 608.4 602.3 |
Pension & Postretirement Plans
Pension & Postretirement Plans (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Postretirement Plan Expenses | Total periodic pension and postretirement (income) expense is summarized below: Three Months Ended June 30, Nine Months Ended June 30, 2020 2021 2020 2021 Service cost $ 21 21 65 63 Interest cost 40 32 120 96 Expected return on plan assets (84) (84) (252) (252) Net amortization 38 35 113 105 Total $ 15 4 46 12 |
Other Deductions, Net (Tables)
Other Deductions, Net (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Deductions, net | Other deductions, net are summarized below: Three Months Ended Nine Months Ended 2020 2021 2020 2021 Amortization of intangibles (intellectual property and customer relationships) $ 60 71 178 223 Restructuring costs 88 28 216 111 Special advisory fees — — 13 — Other 33 (11) (6) (91) Total $ 181 88 401 243 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expense by Segment | Restructuring expense by business segment follows: Three Months Ended Nine Months Ended 2020 2021 2020 2021 Automation Solutions $ 76 18 182 94 Climate Technologies 5 4 14 8 Tools & Home Products 4 2 12 4 Commercial & Residential Solutions 9 6 26 12 Corporate 3 4 8 5 Total $ 88 28 216 111 |
Schedule of 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, 2021 follow: Sept 30, 2020 Expense Utilized/Paid June 30, 2021 Severance and benefits $ 176 87 95 168 Other 5 24 22 7 Total $ 181 111 117 175 |
Other Financial Information (Ta
Other Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Disclosure Text Block [Abstract] | |
Inventories | Sept 30, 2020 June 30, 2021 Inventories Finished products $ 584 666 Raw materials and work in process 1,344 1,448 Total $ 1,928 2,114 |
Property, Plant and Equipment, net | Property, plant and equipment, net Property, plant and equipment, at cost $ 9,055 9,318 Less: Accumulated depreciation 5,367 5,654 Total $ 3,688 3,664 |
Goodwill by Business Segment | Sept 30, 2020 June 30, 2021 Goodwill by business segment Automation Solutions $ 5,583 6,594 Climate Technologies 730 757 Tools & Home Products 421 426 Commercial & Residential Solutions 1,151 1,183 Total $ 6,734 7,777 |
Other Intangible Assets | Other intangible assets Gross carrying amount $ 5,106 5,971 Less: Accumulated amortization 2,638 2,978 Net carrying amount $ 2,468 2,993 |
Other Assets | Other assets include the following: Operating lease right-of-use assets $ 508 503 Pension assets 265 415 Deferred income taxes 99 110 Asbestos-related insurance receivables 100 96 |
Accrued Expenses | Accrued expenses include the following: Customer advances (contract liabilities) $ 583 774 Employee compensation 577 629 Product warranty 148 155 Operating lease liabilities (current) 148 151 |
Other Liabilities | Other liabilities include the following: Pension and postretirement liabilities $ 769 781 Deferred income taxes 261 555 Operating lease liabilities (noncurrent) 373 366 Asbestos litigation 295 267 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments | Into Earnings Into OCI 3rd Quarter Nine Months 3rd Quarter Nine Months Gains (Losses) Location 2020 2021 2020 2021 2020 2021 2020 2021 Commodity Cost of sales $ (4) 13 (8) 24 17 8 1 34 Foreign currency Sales (2) — (5) 2 6 — 1 3 Foreign currency Cost of sales (3) 3 8 5 21 1 (28) 28 Foreign currency Other deductions, net (26) 8 (5) 33 Net Investment Hedges Euro denominated debt (72) 6 (41) (21) Total $ (35) 24 (10) 64 (28) 15 (67) 44 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
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, 2021 and 2020 is shown below, net of income taxes: Three Months Ended June 30, Nine Months Ended June 30, 2020 2021 2020 2021 Foreign currency translation Beginning balance $ (977) (542) (794) (711) Other comprehensive income (loss), net of tax of $17, $(1), $10 and $5, respectively 135 (6) (48) 163 Ending balance (842) (548) (842) (548) Pension and postretirement Beginning balance (870) (810) (928) (864) Amortization of deferred actuarial losses into earnings, net of tax of $(9), $(8), $(26) and $(24), respectively 29 27 87 81 Ending balance (841) (783) (841) (783) Cash flow hedges Beginning balance (56) 30 — (2) Deferral of gains (losses) arising during the period, net of tax of $(11), $(2), $6 and $(15), respectively 33 7 (20) 50 Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $(2), $3, $(1) and $7, respectively 7 (13) 4 (24) Ending balance (16) 24 (16) 24 Accumulated other comprehensive income (loss) $ (1,699) (1,307) (1,699) (1,307) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
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 June 30, Nine Months Ended June 30, Sales Earnings Sales Earnings 2020 2021 2020 2021 2020 2021 2020 2021 Automation Solutions $ 2,589 2,947 311 521 8,150 8,432 1,012 1,353 Climate Technologies 970 1,268 195 274 2,869 3,459 563 731 Tools & Home Products 357 489 58 101 1,219 1,419 233 311 Commercial & Residential Solutions 1,327 1,757 253 375 4,088 4,878 796 1,042 Stock compensation (51) (66) (69) (191) Unallocated pension and postretirement costs 12 24 37 71 Corporate and other (22) (33) (90) (76) Eliminations/Interest (2) (7) (45) (37) (11) (21) (116) (115) Total $ 3,914 4,697 458 784 12,227 13,289 1,570 2,084 Depreciation and amortization (includes intellectual property, customer relationships and capitalized software) by business segment are summarized below: Three Months Ended June 30, Nine Months Ended June 30, 2020 2021 2020 2020 Automation Solutions $ 137 152 414 464 Climate Technologies 44 48 133 144 Tools & Home Products 20 20 58 59 Commercial & Residential Solutions 64 68 191 203 Corporate and other 8 17 26 53 Total $ 209 237 631 720 |
Schedule of Financial Information by Major Product Offering | In fiscal 2021, the Company reclassified certain software product sales that were previously reported in Measurement and Analytical Instrumentation to Systems & Software (previously described as Process Control Systems & Solutions). Automation Solutions sales by major product offering are summarized below, including the reclassification of prior year amounts to reflect this change. Three Months Ended June 30, Nine Months Ended June 30, 2020 2021 2020 2021 Measurement & Analytical Instrumentation $ 709 781 2,280 2,211 Valves, Actuators & Regulators 842 880 2,609 2,522 Industrial Solutions 469 593 1,470 1,656 Systems & Software 569 693 1,791 2,043 Automation Solutions $ 2,589 2,947 8,150 8,432 |
Schedule of Financial Information By Geographic Area | Sales by geographic destination are summarized below: Three Months Ended June 30, 2020 2021 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 1,159 915 2,074 1,321 1,190 2,511 Asia, Middle East & Africa 893 253 1,146 1,011 331 1,342 Europe 537 159 696 615 236 851 Total $ 2,589 1,327 3,916 2,947 1,757 4,704 Nine Months Ended June 30, 2020 2021 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 3,915 2,815 6,730 3,711 3,290 7,001 Asia, Middle East & Africa 2,619 765 3,384 2,907 944 3,851 Europe 1,616 508 2,124 1,814 644 2,458 Total $ 8,150 4,088 12,238 8,432 4,878 13,310 |
Revenue Recognition Contract As
Revenue Recognition Contract Assets (Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Unbilled receivables (contract assets) | $ 500 | $ 500 | $ 458 |
Customer advances (contract liabilities) | (774) | (774) | (583) |
Net contract liabilities | (274) | (274) | $ (125) |
Revenue recognized, included in beginning contract liability | $ 53 | $ 415 |
Revenue Recognition Performance
Revenue Recognition Performance Obligations (Details) $ in Billions | Jun. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Backlog | $ 6.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Percentage of backlog recognized as revenue, next 12 months | 80.00% |
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]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, backlog | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
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 | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Basic shares outstanding | 598.2 | 596.9 | 598.7 | 604.8 |
Dilutive shares | 3.9 | 3.1 | 3.6 | 3.6 |
Diluted shares outstanding | 602.1 | 600 | 602.3 | 608.4 |
Acquisitions and Divestitures N
Acquisitions and Divestitures Narrative (Details) $ in Millions | Nov. 17, 2020USD ($) | Oct. 01, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2023USD ($) |
Business Acquisition & Disposal [Line Items] | |||||||
Purchase price of businesses, net of cash acquired | $ 1,611 | $ 114 | $ 126 | ||||
Goodwill | $ 7,777 | 7,777 | $ 6,734 | ||||
Forecast [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Pretax periodic distribution from retained subordinated interest in Vertiv (VRT) | $ 600 | ||||||
Open Systems International Inc. [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Deferred revenue adjustment | 3 | 11 | |||||
Open Systems International Inc. [Member] | Order or Production Backlog [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Backlog amortization | 7 | 24 | |||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Purchase price of businesses, net of cash acquired | $ 19 | ||||||
Number of businesses acquired | 3 | ||||||
Automation Solutions [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Goodwill | 6,594 | 6,594 | $ 5,583 | ||||
Automation Solutions [Member] | Open Systems International Inc. [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Purchase price of businesses, net of cash acquired | $ 1,600 | ||||||
Annualized sales | $ 170 | ||||||
Goodwill | 960 | ||||||
Goodwill expected tax deductible amount | 0 | ||||||
Intangibles | $ 783 | ||||||
Intangible assets, weighted average useful life | 11 years | ||||||
Deferred tax liabilities | $ 185 | ||||||
Automation Solutions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Number of businesses acquired | 2 | ||||||
Climate Technologies [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Goodwill | $ 757 | $ 757 | $ 730 | ||||
Climate Technologies [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||||
Business Acquisition & Disposal [Line Items] | |||||||
Number of businesses acquired | 1 |
Pension & Postretirement Plan_2
Pension & Postretirement Plans (Schedule Of Net Periodic Pension And Net Postretirement Plan Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 21 | $ 21 | $ 63 | $ 65 |
Interest cost | 32 | 40 | 96 | 120 |
Expected return on plan assets | (84) | (84) | (252) | (252) |
Net amortization | 35 | 38 | 105 | 113 |
Total | $ 4 | $ 15 | $ 12 | $ 46 |
Other Deductions, Net (Schedule
Other Deductions, Net (Schedule Of Other Deductions, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other deductions, net [Line Items] | ||||
Amortization of intangibles (intellectual property and customer relationships) | $ 71 | $ 60 | $ 223 | $ 178 |
Restructuring costs | 28 | 88 | 111 | 216 |
Special advisory fees | 0 | 0 | 0 | 13 |
Other | (11) | 33 | (91) | (6) |
Other deductions, net | 88 | $ 181 | 243 | $ 401 |
Change in gain (loss) from foreign currency exchange transactions | 25 | |||
Gain (loss) from an investment | 21 | |||
Gain (loss) from acquiring the remaining interest of an equity investment | 17 | |||
Gain (loss) from sale of equity investment | 31 | |||
Open Systems International Inc. [Member] | Order or Production Backlog [Member] | ||||
Other deductions, net [Line Items] | ||||
Backlog amortization | $ 7 | $ 24 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | $ 181 | ||||
Restructuring expense | $ 28 | $ 88 | 111 | $ 216 | |
Restructuring utilized/paid | 117 | ||||
Ending restructuring liability | 175 | $ 175 | |||
Total number of employee workforce reductions | 1,900 | ||||
Cost of sales and selling, general, and administrative expenses [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 4 | 6 | $ 11 | 15 | |
Severance and benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 176 | ||||
Restructuring expense | 87 | ||||
Restructuring utilized/paid | 95 | ||||
Ending restructuring liability | 168 | 168 | |||
Other Restructuring [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 5 | ||||
Restructuring expense | 24 | ||||
Restructuring utilized/paid | 22 | ||||
Ending restructuring liability | 7 | 7 | |||
Automation Solutions [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 18 | 76 | 94 | 182 | |
Commercial & Residential Solutions [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 6 | 9 | 12 | 26 | |
Climate Technologies [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 4 | 5 | 8 | 14 | |
Tools & Home Products [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 2 | 4 | 4 | 12 | |
Corporate [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | $ 4 | $ 3 | $ 5 | $ 8 | |
Forecast [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Expected fiscal year restructuring expense | $ 200 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax [Line Items] | |||||
Payroll tax deferral from CARES Act through December 2020 | $ 73 | ||||
Income taxes | $ 151 | $ 51 | $ 431 | $ 310 | |
Effective income tax rate | 19.00% | 11.00% | 21.00% | 20.00% | |
Favorable net discrete items, percentage impact | 3.00% | 12.00% | 1.00% | 3.00% | |
Favorable net discrete tax impact | $ 24 | $ 57 |
Other Financial Information (In
Other Financial Information (Inventories) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 666 | $ 584 |
Raw materials and work in process | 1,448 | 1,344 |
Total | $ 2,114 | $ 1,928 |
Other Financial Information (PP
Other Financial Information (PPE) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, at cost | $ 9,318 | $ 9,055 |
Less: Accumulated depreciation | 5,654 | 5,367 |
Total | $ 3,664 | $ 3,688 |
Other Financial Information (Go
Other Financial Information (Goodwill) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Goodwill [Line Items] | ||
Goodwill | $ 7,777 | $ 6,734 |
Automation Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 6,594 | 5,583 |
Commercial & Residential Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,183 | 1,151 |
Climate Technologies [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 757 | 730 |
Tools & Home Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 426 | $ 421 |
Other Financial Information (_2
Other Financial Information (Intangibles) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 5,971 | $ 5,106 |
Less: Accumulated amortization | 2,978 | 2,638 |
Net carrying amount | 2,993 | 2,468 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount | $ 1,554 | $ 1,328 |
Other Financial Information (Ot
Other Financial Information (Other Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 503 | $ 508 |
Pension assets | 415 | 265 |
Deferred income taxes | 110 | 99 |
Asbestos-related insurance receivables | $ 96 | $ 100 |
Other Financial Information (Ac
Other Financial Information (Accrued Expenses) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Customer advances (contract liabilities) | $ 774 | $ 583 |
Employee compensation | 629 | 577 |
Product warranty | 155 | 148 |
Operating lease liabilities (current) | $ 151 | $ 148 |
Other Financial Information (_3
Other Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Other Liabilities [Abstract] | ||
Pension and postretirement liabilities | $ 781 | $ 769 |
Deferred income taxes | 555 | 261 |
Operating lease liabilities (noncurrent) | 366 | 373 |
Asbestos litigation | $ 267 | $ 295 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Derivative Instruments) (Details) € in Millions, lb in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021USD ($)lb | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)lb | Jun. 30, 2020USD ($) | Sep. 30, 2019EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | $ 24 | $ (35) | $ 64 | $ (10) | |
Gain (loss) to other comprehensive income | 15 | (28) | 44 | (67) | |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 13 | (4) | 24 | (8) | |
Commodity 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 | 8 | 17 | 34 | 1 | |
Foreign Exchange Contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency hedge positions | 1,900 | 1,900 | |||
Foreign Exchange Contract [Member] | Other deductions, net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 8 | (26) | 33 | (5) | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 3 | (3) | 5 | 8 | |
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 | 1 | 21 | 28 | (28) | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 0 | (2) | 2 | (5) | |
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 | 0 | 6 | 3 | 1 | |
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 | 6 | $ (72) | (21) | $ (41) | |
All Commodity Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of commodities hedged | $ 139 | $ 139 | |||
Copper and Aluminum [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Weight in pounds of copper and aluminum commodity hedges | lb | 42 | 42 | |||
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 | Jun. 30, 2021USD ($) |
Derivatives, Fair Value [Line Items] | |
Fair value of long-term debt compared with carrying value | $ 526 |
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 | $ 6,900 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | $ 8,447 | ||||
Ending balance | $ 9,339 | $ 7,878 | 9,339 | $ 7,878 | |
Accumulated other comprehensive income (loss) | (1,307) | (1,699) | (1,307) | (1,699) | $ (1,577) |
Foreign currency translation [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (542) | (977) | (711) | (794) | |
Other comprehensive income (loss), foreign currency translation, net of tax of $(1), $17, $5 and $10, respectively | (6) | 135 | 163 | (48) | |
Ending balance | (548) | (842) | (548) | (842) | |
Pension and post retirement [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (810) | (870) | (864) | (928) | |
Amortization of deferred actuarial losses into earnings, net of tax of $(8), $(9), $(24) and $(26), respectively | 27 | 29 | 81 | 87 | |
Ending balance | (783) | (841) | (783) | (841) | |
Cash Flow Hedges [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | 30 | (56) | (2) | 0 | |
Deferral of gains (losses) arising during the period, net of tax of $(2), $(11), $(15) and $6, respectively | 7 | 33 | 50 | (20) | |
Reclassification of realized gains (losses) to sales and cost of sales, net of tax of $3, $(2), $7 and $(1), respectively | (13) | 7 | (24) | 4 | |
Ending balance | $ 24 | $ (16) | $ 24 | $ (16) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation, tax | $ (1) | $ 17 | $ 5 | $ 10 |
Amortization of deferred actuarial losses, tax | (8) | (9) | (24) | (26) |
Deferred cash flow hedging gains (losses), tax | (2) | (11) | (15) | 6 |
Reclassification of realized cash flow hedging (losses), tax | $ 3 | $ (2) | $ 7 | $ (1) |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,697 | $ 3,914 | $ 13,289 | $ 12,227 |
Earnings | 784 | 458 | 2,084 | 1,570 |
Interest expense | (37) | (45) | (115) | (116) |
Operating Segments [Member] | Automation Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,947 | 2,589 | 8,432 | 8,150 |
Earnings | 521 | 311 | 1,353 | 1,012 |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,757 | 1,327 | 4,878 | 4,088 |
Earnings | 375 | 253 | 1,042 | 796 |
Operating Segments [Member] | Climate Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,268 | 970 | 3,459 | 2,869 |
Earnings | 274 | 195 | 731 | 563 |
Operating Segments [Member] | Tools & Home Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 489 | 357 | 1,419 | 1,219 |
Earnings | 101 | 58 | 311 | 233 |
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Stock compensation | (66) | (51) | (191) | (69) |
Unallocated pension and postretirement costs | 24 | 12 | 71 | 37 |
Interest expense | (37) | (45) | (115) | (116) |
Corporate and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earnings | (33) | (22) | (76) | (90) |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ (7) | $ (2) | $ (21) | $ (11) |
Business Segments Product Line
Business Segments Product Line Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,697 | $ 3,914 | $ 13,289 | $ 12,227 |
Automation Solutions [Member] | Measurement & Analytical Instrumentation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 781 | 709 | 2,211 | 2,280 |
Automation Solutions [Member] | Valves, Actuators & Regulators [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 880 | 842 | 2,522 | 2,609 |
Automation Solutions [Member] | Industrial Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 593 | 469 | 1,656 | 1,470 |
Automation Solutions [Member] | Systems & Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 693 | 569 | 2,043 | 1,791 |
Operating Segments [Member] | Automation Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,947 | $ 2,589 | $ 8,432 | $ 8,150 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 237 | $ 209 | $ 720 | $ 631 |
Corporate, non-segment [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 17 | 8 | 53 | 26 |
Operating Segments [Member] | Automation Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 152 | 137 | 464 | 414 |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 68 | 64 | 203 | 191 |
Operating Segments [Member] | Climate Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 48 | 44 | 144 | 133 |
Operating Segments [Member] | Tools & Home Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 20 | $ 20 | $ 59 | $ 58 |
Business Segments Geographic In
Business Segments Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,697 | $ 3,914 | $ 13,289 | $ 12,227 |
Reportable Geographical Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,704 | 3,916 | 13,310 | 12,238 |
Reportable Geographical Components [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,511 | 2,074 | 7,001 | 6,730 |
Reportable Geographical Components [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,342 | 1,146 | 3,851 | 3,384 |
Reportable Geographical Components [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 851 | 696 | 2,458 | 2,124 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,947 | 2,589 | 8,432 | 8,150 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,321 | 1,159 | 3,711 | 3,915 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,011 | 893 | 2,907 | 2,619 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 615 | 537 | 1,814 | 1,616 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,757 | 1,327 | 4,878 | 4,088 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,190 | 915 | 3,290 | 2,815 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 331 | 253 | 944 | 765 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 236 | $ 159 | $ 644 | $ 508 |