Cover
Cover | 3 Months Ended |
Dec. 31, 2021shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Dec. 31, 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 | 2022 |
Document Fiscal Period Focus | Q1 |
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 | 594,000,000 |
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 $0.50 par value per share |
Trading Symbol | EMR |
Security Exchange Name | CHX |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 4,473 | $ 4,161 |
Cost of sales | 2,651 | 2,438 |
Selling, general and administrative expenses | 1,011 | 998 |
Gain from periodic distribution from retained subordinated interest in Vertiv (VRT) | (453) | 0 |
Other deductions, net | 51 | 122 |
Interest expense (net of interest income of $3 and $2, respectively) | 38 | 40 |
Earnings before income taxes | 1,175 | 563 |
Income taxes | 280 | 111 |
Net earnings | 895 | 452 |
Less: Noncontrolling interests in subsidiaries | (1) | 7 |
Net earnings common stockholders | $ 896 | $ 445 |
Earnings Per Share, Basic | $ 1.51 | $ 0.74 |
Earnings Per Share, Diluted | $ 1.50 | $ 0.74 |
Weighted Average Number of Shares Outstanding, Basic | 594.6 | 598.5 |
Weighted Average Number of Shares Outstanding, Diluted | 598.1 | 601.9 |
Consolidated Statements Of Ea_2
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Interest income | $ 3 | $ 2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net earnings | $ 895 | $ 452 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | (72) | 189 |
Pension and postretirement | 18 | 27 |
Cash flow hedges | 4 | 31 |
Total other comprehensive income (loss) | (50) | 247 |
Comprehensive income | 845 | 699 |
Less: Noncontrolling interests in subsidiaries | (1) | 7 |
Comprehensive income common stockholders | $ 846 | $ 692 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets | ||
Cash and equivalents | $ 4,726 | $ 2,354 |
Receivables, less allowances of $112 and $116, respectively | 2,745 | 2,971 |
Inventories | 2,335 | 2,050 |
Other current assets | 1,054 | 1,057 |
Total current assets | 10,860 | 8,432 |
Property, plant and equipment, net | 3,685 | 3,738 |
Other assets | ||
Goodwill | 7,695 | 7,723 |
Other intangible assets | 2,791 | 2,877 |
Other | 1,928 | 1,945 |
Total other assets | 12,414 | 12,545 |
Total assets | 26,959 | 24,715 |
Current liabilities | ||
Short-term borrowings and current maturities of long-term debt | 37 | 872 |
Accounts payable | 2,100 | 2,108 |
Accrued expenses | 3,194 | 3,266 |
Total current liabilities | 5,331 | 6,246 |
Long-term debt | 8,722 | 5,793 |
Other liabilities | 2,618 | 2,753 |
Equity | ||
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding, 594.0 shares and 595.8 shares, respectively | 477 | 477 |
Additional paid-in-capital | 564 | 522 |
Retained earnings | 26,636 | 26,047 |
Accumulated other comprehensive income (loss) | (922) | (872) |
Cost of common stock in treasury, 359.4 shares and 357.6 shares, respectively | (16,506) | (16,291) |
Common stockholders’ equity | 10,249 | 9,883 |
Noncontrolling interests in subsidiaries | 39 | 40 |
Total equity | 10,288 | 9,923 |
Total liabilities and equity | $ 26,959 | $ 24,715 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 112 | $ 116 |
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 | 594 | 595.8 |
Treasury stock, shares | 359.4 | 357.6 |
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, 2020 | $ 470 | $ 24,955 | $ (1,577) | $ (15,920) | $ 42 | ||
Statement [Roll Forward] | |||||||
Stock plans | 29 | ||||||
Net earnings common stockholders | $ 445 | 445 | |||||
Dividends paid | (303) | (5) | |||||
Stockholders' Equity, Other | (1) | ||||||
Foreign currency translation | 189 | 189 | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 27 | (27) | |||||
Cash flow hedges | 31 | 31 | |||||
Purchases | (13) | ||||||
Issued under stock plans | 86 | ||||||
Net earnings | 7 | ||||||
Other comprehensive income | 247 | ||||||
Ending balance at Dec. 31, 2020 | 8,939 | $ 477 | 499 | 25,096 | (1,330) | (15,847) | 44 |
Statement [Roll Forward] | |||||||
Common stockholders' equity | 8,895 | ||||||
Common stockholders' equity | 9,883 | ||||||
Beginning balance at Sep. 30, 2021 | 9,923 | 522 | 26,047 | (872) | (16,291) | 40 | |
Statement [Roll Forward] | |||||||
Stock plans | 42 | ||||||
Net earnings common stockholders | 896 | 896 | |||||
Dividends paid | (307) | 0 | |||||
Stockholders' Equity, Other | 0 | ||||||
Foreign currency translation | (72) | (72) | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 18 | (18) | |||||
Cash flow hedges | 4 | 4 | |||||
Purchases | (258) | ||||||
Issued under stock plans | 43 | ||||||
Net earnings | (1) | ||||||
Other comprehensive income | (50) | ||||||
Ending balance at Dec. 31, 2021 | 10,288 | $ 477 | $ 564 | $ 26,636 | $ (922) | $ (16,506) | $ 39 |
Statement [Roll Forward] | |||||||
Common stockholders' equity | $ 10,249 |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends paid, per share | $ 0.515 | $ 0.505 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | ||
Net earnings | $ 895 | $ 452 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 231 | 244 |
Stock compensation | 41 | 64 |
Pension expense | 1 | 8 |
Total changes in operating working capital | (185) | 71 |
Gain from periodic distribution from retained subordinated interest in Vertiv (VRT) | (453) | 0 |
Other, net | (7) | (31) |
Cash provided by operating activities | 523 | 808 |
Investing activities | ||
Capital expenditures | (116) | (122) |
Purchases of businesses, net of cash and equivalents acquired | (39) | (1,611) |
Periodic distribution from retained subordinated interest in Vertiv (VRT) | 438 | 0 |
Other, net | 2 | 13 |
Cash provided by (used in) investing activities | 285 | (1,720) |
Financing activities | ||
Net increase (decrease) in short-term borrowings | (335) | 340 |
Proceeds from long-term debt | 2,975 | 0 |
Payments of long-term debt | (501) | (301) |
Dividends paid | (307) | (303) |
Purchases of common stock | (253) | (13) |
Other, net | 22 | 42 |
Cash provided by (used in) financing activities | 1,601 | (235) |
Effect of exchange rate changes on cash and equivalents | (37) | 29 |
Increase (Decrease) in cash and equivalents | 2,372 | (1,118) |
Beginning cash and equivalents | 2,354 | 3,315 |
Ending cash and equivalents | 4,726 | 2,197 |
Changes in operating working capital | ||
Receivables | 217 | 232 |
Inventories | (302) | (37) |
Other current assets | (10) | 18 |
Accounts payable | 10 | (37) |
Accrued expenses | (100) | (105) |
Total changes in operating working capital | $ (185) | $ 71 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 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, 2021. Effective October 1, 2021, the Company adopted three accounting standard updates which had no impact or an immaterial impact on the Company's financial statements as of and for the three months ended December 31, 2021. These included: • Updates to ASC 805, Business Combinations , which clarify the accounting for contract assets and liabilities assumed in a business combination. In general, this will result in contract liabilities being recognized at their historical amounts under ASC 606, rather than at fair value in accordance with the general requirements of ASC 805. • Updates to ASC 740, Income Taxes , which require the recognition of a franchise tax that is partially based on income as an income-based tax with any incremental amount as a non-income based tax. These updates also make certain changes to intra-period tax allocation principles and interim tax calculations. • Updates to ASC 321, Equity Securities , ASC 323 Investments - Equity Method and Joint Ventures , and ASC 815, Derivatives and Hedging , which clarify how to account for the transition into and out of the equity method of accounting when evaluating observable transactions. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 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 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, 2021 Dec 31, 2021 Unbilled receivables (contract assets) $ 528 527 Customer advances (contract liabilities) (730) (851) Net contract liabilities $ (202) (324) 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 months ended December 31, 2021 included $348 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 months ended December 31, 2021 for performance obligations that were satisfied in previous periods, including cumulative catchup adjustments on the Company's long-term contracts, was not material. |
Common Shares and Share-Based C
Common Shares and Share-Based Compensation | 3 Months Ended |
Dec. 31, 2021 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |
Common Shares and Share-Based Compensation | COMMON SHARES AND SHARE-BASED COMPENSATION Reconciliations of weighted-average shares for basic and diluted earnings per common share follow. Earnings allocated to participating securities were inconsequential. Three Months Ended 2020 2021 Basic shares outstanding 598.5 594.6 Dilutive shares 3.4 3.5 Diluted shares outstanding 601.9 598.1 The Company changed the terms of its annual performance share awards issued in the first quarter of fiscal 2022. The new terms meet the criteria for equity classification in accordance with ASC 718, Compensation - Stock Compensation |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES On October 11, 2021, the Company announced that it entered into a definitive agreement with Aspen Technology, Inc. ("AspenTech") to contribute two of Emerson's stand-alone industrial software businesses, Open Systems International, Inc. and the Geological Simulation Software business, along with approximately $6.0 billion in cash to AspenTech stockholders, to create "new AspenTech", a diversified, high-performance industrial software leader with greater scale, capabilities and technologies. Upon closing of the transaction, the Company will own 55 percent of new AspenTech and its results and financial position will be consolidated in Emerson's financial statements . 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 had net sales of $191 in fiscal 2021 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 $967 (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 $193. two |
Pension & Postretirement Plans
Pension & Postretirement Plans | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension & Postretirement Plans | PENSION & POSTRETIREMENT PLANS Total periodic pension and postretirement (income) expense is summarized below: Three Months Ended December 31, 2020 2021 Service cost $ 21 19 Interest cost 32 34 Expected return on plan assets (84) (78) Net amortization 35 23 Total $ 4 (2) |
Other Deductions, Net
Other Deductions, Net | 3 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Deductions, Net | OTHER DEDUCTIONS, NET Other deductions, net are summarized below: Three Months Ended 2020 2021 Amortization of intangibles (intellectual property and customer relationships) $ 78 63 Restructuring costs 66 9 Other (22) (21) Total $ 122 51 In the first quarter of fiscal 2022, the decrease in intangibles amortization was largely due to the backlog amortization of $11 in the prior year related to the OSI acquisition. Other is composed of several items, including acquisition/divestiture costs, foreign currency transaction gains and losses, pension expense and other items. In the first quarter of fiscal 2022, other included transaction costs related to the AspenTech transaction of $23, a favorable impact from foreign currency transactions of $25 due to losses in the prior year and gains in the current year, and gains from the sales of capital assets of $15. Comparisons were also impacted by prior year investment-related gains, including $21 from an investment sale and $17 from the acquisition of full ownership of an equity investment. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Dec. 31, 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 three months of fiscal 2022 relate to the Company's initiatives that began in the third quarter of fiscal 2019 to improve operating margins and were subsequently increased in response to the effects of the COVID-19 pandemic on demand for the Company's products. Expenses incurred in the first three months of f iscal 2022 included costs related to workforce reductions of approximately 150 employees. The Company expects fiscal 2022 restructuring expense and related costs to be approximately $150, including costs to complete actions initiated in the first three months of the year. Restructuring expense by business segment follows: Three Months Ended 2020 2021 Automation Solutions $ 64 5 Climate Technologies 1 2 Tools & Home Products 1 1 Commercial & Residential Solutions 2 3 Corporate — 1 Total $ 66 9 Details of the change in the liability for restructuring costs during the three months ended December 31, 2021 follow: Sept 30, 2021 Expense Utilized/Paid Dec 31, 2021 Severance and benefits $ 172 2 20 154 Other 4 7 9 2 Total $ 176 9 29 156 The tables above do not include $3 and $9 of costs related to restructuring actions incurred for the three months ended December 31, 2020 and 2021, respectively, that are required to be reported in cost of sales and selling, general and administrative expenses. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | TAXES Income taxes were $280 in the first quarter of fiscal 2022 and $111 in 2021, resulting in effective tax rates of 24 percent and 20 percent, respectively. Income taxes in the first quarter included expense of $95 related to the Vertiv subordinated interest gain, which benefited the tax rate by approximately 2 percentage points. This was offset by portfolio restructuring activities which negatively impacted the rate by 4 percentage points, while the prior year rate included discrete benefits which decreased the rate 2 percentage points. 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, of which approximately $37 was paid in December 2021 with the remaining amount due in December 2022. |
Other Financial Information
Other Financial Information | 3 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Other Financial Information | OTHER FINANCIAL INFORMATION Sept 30, 2021 Dec 31, 2021 Inventories Finished products $ 616 744 Raw materials and work in process 1,434 1,591 Total $ 2,050 2,335 Property, plant and equipment, net Property, plant and equipment, at cost $ 9,427 9,442 Less: Accumulated depreciation 5,689 5,757 Total $ 3,738 3,685 Goodwill by business segment Automation Solutions $ 6,552 6,534 Climate Technologies 753 751 Tools & Home Products 418 410 Commercial & Residential Solutions 1,171 1,161 Total $ 7,723 7,695 Other intangible assets Gross carrying amount $ 5,911 5,910 Less: Accumulated amortization 3,034 3,119 Net carrying amount $ 2,877 2,791 Other intangible assets include customer relationships, net, of $1,495 and $1,449 as of September 30, 2021 and December 31, 2021, respectively. Three Months Ended Dec 31, 2020 Dec 31, 2021 Depreciation and amortization expense include the following: Depreciation expense $ 124 128 Amortization of intangibles (includes $14 and $14 reported in Cost of Sales for the three months ended December 31, 2020 and 2021, respectively) 92 77 Amortization of capitalized software 28 26 Total $ 244 231 Amortization of intangibles included backlog amortization of $11 related to the OSI acquisition for the three months ended December 31, 2020. Sept 30, 2021 Dec 31, 2021 Other assets include the following: Pension assets $ 1,015 1,042 Operating lease right-of-use assets 558 536 Deferred income taxes 115 101 Asbestos-related insurance receivables 95 91 Accrued expenses include the following: Customer advances (contract liabilities) $ 730 851 Employee compensation 690 428 Operating lease liabilities (current) 155 152 Product warranty 146 136 Other liabilities include the following: Deferred income taxes $ 711 736 Pension and postretirement liabilities 676 674 Operating lease liabilities (noncurrent) 413 395 Asbestos litigation 256 251 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | DEBT In D ecember 2021, the Company issued $1 billion of 2.0% notes due December 2028, $1 billion of 2.2% notes due December 2031, and $1 billion of 2.8% notes due December 2051. The Company expects to use the net proceeds from the sale of the notes to pay a portion of its contribution of approximately $6.0 billion to existing stockholders of AspenTech as part of the transaction discussed further in Note 4. If the transaction with AspenTech is not completed or is terminated, the Company will be required to redeem the notes at a redemption price equal to 101% of the principal amount plus accrued and unpaid interest. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Hedging Activities – As of December 31, 2021, the notional amount of foreign currency hedge positions was approximately $2.4 billion, and commodity hedge contracts totaled approximately $143 (primarily 40 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 December 31, 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 months ended December 31, 2020 and 2021: Into Earnings Into OCI 1st Quarter 1st Quarter Gains (Losses) Location 2020 2021 2020 2021 Commodity Cost of sales $ 3 7 13 13 Foreign currency Sales 1 1 5 — Foreign currency Cost of sales — 2 27 3 Foreign currency Other deductions, net (4) 44 Net Investment Hedges Euro denominated debt (80) 44 Total $ — 54 (35) 60 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 December 31, 2021, the fair value of long-term debt was $9.2 billion, which exceeded the carrying value by $411. 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, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 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 months ended December 31, 2020 and 2021 is shown below, net of income taxes: Three Months Ended December 31, 2020 2021 Foreign currency translation Beginning balance $ (711) (629) Other comprehensive income (loss), net of tax of $19 and $(10), respectively 189 (72) Ending balance (522) (701) Pension and postretirement Beginning balance (864) (259) Amortization of deferred actuarial losses into earnings, net of tax of $(8) and $(5), respectively 27 18 Ending balance (837) (241) Cash flow hedges Beginning balance (2) 16 Gains deferred during the period, net of taxes of $(11) and $(4), respectively 34 12 Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $1 and $2, respectively (3) (8) Ending balance 29 20 Accumulated other comprehensive income (loss) $ (1,330) (922) |
Business Segments
Business Segments | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS Summarized information about the Company's results of operations by business segment follows: Three Months Ended December 31, Sales Earnings 2020 2021 2020 2021 Automation Solutions $ 2,692 2,805 361 526 Climate Technologies 1,031 1,163 212 192 Tools & Home Products 445 508 98 107 Commercial & Residential Solutions 1,476 1,671 310 299 Stock compensation (64) (41) Unallocated pension and postretirement costs 24 26 Corporate and other (28) (50) Gain on subordinated interest — 453 Eliminations/Interest (7) (3) (40) (38) Total $ 4,161 4,473 563 1,175 Automation Solutions sales by major product offering are summarized below. Three Months Ended December 31, 2020 2021 Measurement & Analytical Instrumentation $ 698 735 Valves, Actuators & Regulators 806 816 Industrial Solutions 508 566 Systems & Software 680 688 Automation Solutions $ 2,692 2,805 Depreciation and amortization (includes intellectual property, customer relationships and capitalized software) by business segment are summarized below: Three Months Ended December 31, 2020 2021 Automation Solutions $ 156 155 Climate Technologies 49 47 Tools & Home Products 19 20 Commercial & Residential Solutions 68 67 Corporate and other 20 9 Total $ 244 231 Sales by geographic destination are summarized below: Three Months Ended December 31, 2020 2021 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 1,168 981 2,149 1,241 1,144 2,385 Asia, Middle East & Africa 942 308 1,250 1,005 322 1,327 Europe 582 187 769 559 205 764 Total $ 2,692 1,476 4,168 2,805 1,671 4,476 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 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, 2021 Dec 31, 2021 Unbilled receivables (contract assets) $ 528 527 Customer advances (contract liabilities) (730) (851) Net contract liabilities $ (202) (324) |
Common Shares and Share-Based_2
Common Shares and Share-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share Reconciliation | Three Months Ended 2020 2021 Basic shares outstanding 598.5 594.6 Dilutive shares 3.4 3.5 Diluted shares outstanding 601.9 598.1 |
Pension & Postretirement Plans
Pension & Postretirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Postretirement Plan Expenses | Total periodic pension and postretirement (income) expense is summarized below: Three Months Ended December 31, 2020 2021 Service cost $ 21 19 Interest cost 32 34 Expected return on plan assets (84) (78) Net amortization 35 23 Total $ 4 (2) |
Other Deductions, Net (Tables)
Other Deductions, Net (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Deductions, net | Other deductions, net are summarized below: Three Months Ended 2020 2021 Amortization of intangibles (intellectual property and customer relationships) $ 78 63 Restructuring costs 66 9 Other (22) (21) Total $ 122 51 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expense by Segment | Restructuring expense by business segment follows: Three Months Ended 2020 2021 Automation Solutions $ 64 5 Climate Technologies 1 2 Tools & Home Products 1 1 Commercial & Residential Solutions 2 3 Corporate — 1 Total $ 66 9 |
Schedule of Change in Restructuring Reserve by Type of Cost | Details of the change in the liability for restructuring costs during the three months ended December 31, 2021 follow: Sept 30, 2021 Expense Utilized/Paid Dec 31, 2021 Severance and benefits $ 172 2 20 154 Other 4 7 9 2 Total $ 176 9 29 156 |
Other Financial Information (Ta
Other Financial Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Inventories | Sept 30, 2021 Dec 31, 2021 Inventories Finished products $ 616 744 Raw materials and work in process 1,434 1,591 Total $ 2,050 2,335 |
Property, Plant and Equipment, net | Property, plant and equipment, net Property, plant and equipment, at cost $ 9,427 9,442 Less: Accumulated depreciation 5,689 5,757 Total $ 3,738 3,685 |
Goodwill by Business Segment | Goodwill by business segment Automation Solutions $ 6,552 6,534 Climate Technologies 753 751 Tools & Home Products 418 410 Commercial & Residential Solutions 1,171 1,161 Total $ 7,723 7,695 |
Other Intangible Assets | Other intangible assets Gross carrying amount $ 5,911 5,910 Less: Accumulated amortization 3,034 3,119 Net carrying amount $ 2,877 2,791 |
Other Assets | Sept 30, 2021 Dec 31, 2021 Other assets include the following: Pension assets $ 1,015 1,042 Operating lease right-of-use assets 558 536 Deferred income taxes 115 101 Asbestos-related insurance receivables 95 91 |
Accrued Expenses | Accrued expenses include the following: Customer advances (contract liabilities) $ 730 851 Employee compensation 690 428 Operating lease liabilities (current) 155 152 Product warranty 146 136 |
Other Liabilities | Other liabilities include the following: Deferred income taxes $ 711 736 Pension and postretirement liabilities 676 674 Operating lease liabilities (noncurrent) 413 395 Asbestos litigation 256 251 |
Depreciation and Amortization components | Three Months Ended Dec 31, 2020 Dec 31, 2021 Depreciation and amortization expense include the following: Depreciation expense $ 124 128 Amortization of intangibles (includes $14 and $14 reported in Cost of Sales for the three months ended December 31, 2020 and 2021, respectively) 92 77 Amortization of capitalized software 28 26 Total $ 244 231 Amortization of intangibles included backlog amortization of $11 related to the OSI acquisition for the three months ended December 31, 2020. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments | Into Earnings Into OCI 1st Quarter 1st Quarter Gains (Losses) Location 2020 2021 2020 2021 Commodity Cost of sales $ 3 7 13 13 Foreign currency Sales 1 1 5 — Foreign currency Cost of sales — 2 27 3 Foreign currency Other deductions, net (4) 44 Net Investment Hedges Euro denominated debt (80) 44 Total $ — 54 (35) 60 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 31, 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 months ended December 31, 2020 and 2021 is shown below, net of income taxes: Three Months Ended December 31, 2020 2021 Foreign currency translation Beginning balance $ (711) (629) Other comprehensive income (loss), net of tax of $19 and $(10), respectively 189 (72) Ending balance (522) (701) Pension and postretirement Beginning balance (864) (259) Amortization of deferred actuarial losses into earnings, net of tax of $(8) and $(5), respectively 27 18 Ending balance (837) (241) Cash flow hedges Beginning balance (2) 16 Gains deferred during the period, net of taxes of $(11) and $(4), respectively 34 12 Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $1 and $2, respectively (3) (8) Ending balance 29 20 Accumulated other comprehensive income (loss) $ (1,330) (922) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Dec. 31, 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 December 31, Sales Earnings 2020 2021 2020 2021 Automation Solutions $ 2,692 2,805 361 526 Climate Technologies 1,031 1,163 212 192 Tools & Home Products 445 508 98 107 Commercial & Residential Solutions 1,476 1,671 310 299 Stock compensation (64) (41) Unallocated pension and postretirement costs 24 26 Corporate and other (28) (50) Gain on subordinated interest — 453 Eliminations/Interest (7) (3) (40) (38) Total $ 4,161 4,473 563 1,175 Depreciation and amortization (includes intellectual property, customer relationships and capitalized software) by business segment are summarized below: Three Months Ended December 31, 2020 2021 Automation Solutions $ 156 155 Climate Technologies 49 47 Tools & Home Products 19 20 Commercial & Residential Solutions 68 67 Corporate and other 20 9 Total $ 244 231 |
Schedule of Financial Information by Major Product Offering | Automation Solutions sales by major product offering are summarized below. Three Months Ended December 31, 2020 2021 Measurement & Analytical Instrumentation $ 698 735 Valves, Actuators & Regulators 806 816 Industrial Solutions 508 566 Systems & Software 680 688 Automation Solutions $ 2,692 2,805 |
Schedule of Financial Information By Geographic Area | Sales by geographic destination are summarized below: Three Months Ended December 31, 2020 2021 Automation Solutions Commercial & Residential Solutions Total Automation Solutions Commercial & Residential Solutions Total Americas $ 1,168 981 2,149 1,241 1,144 2,385 Asia, Middle East & Africa 942 308 1,250 1,005 322 1,327 Europe 582 187 769 559 205 764 Total $ 2,692 1,476 4,168 2,805 1,671 4,476 |
Revenue Recognition Contract As
Revenue Recognition Contract Assets (Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables (contract assets) | $ 527 | $ 528 |
Customer advances (contract liabilities) | (851) | (730) |
Net contract liabilities | (324) | $ (202) |
Revenue recognized, included in beginning contract liability | $ 348 |
Revenue Recognition Performance
Revenue Recognition Performance Obligations (Details) $ in Billions | Dec. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Backlog | $ 7.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
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]: 2023-01-01 | |
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]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, backlog | 1 year |
Common Shares and Share-Based_3
Common Shares and Share-Based Compensation (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Weighted Average Number of Shares Outstanding, Basic | 594.6 | 598.5 |
Dilutive shares | 3.5 | 3.4 |
Diluted shares outstanding | 598.1 | 601.9 |
Acquisitions and Divestitures N
Acquisitions and Divestitures Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2023 |
Business Acquisition & Disposal [Line Items] | ||||||
Purchase price of businesses, net of cash acquired | $ 39 | $ 1,611 | ||||
Goodwill | 7,695 | $ 7,723 | ||||
Gain from periodic distribution from retained subordinated interest in Vertiv (VRT) | (453) | 0 | ||||
Periodic distribution from retained subordinated interest in Vertiv (VRT) | 438 | $ 0 | ||||
Automation Solutions [Member] | ||||||
Business Acquisition & Disposal [Line Items] | ||||||
Goodwill | 6,534 | 6,552 | ||||
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 | 191 | |||||
Goodwill | 967 | |||||
Goodwill expected tax deductible amount | 0 | |||||
Intangibles | $ 783 | |||||
Intangible assets, weighted average useful life | 11 years | |||||
Deferred tax liabilities | $ 193 | |||||
Climate Technologies [Member] | ||||||
Business Acquisition & Disposal [Line Items] | ||||||
Goodwill | $ 751 | $ 753 | ||||
Forecast [Member] | ||||||
Business Acquisition & Disposal [Line Items] | ||||||
Pretax periodic distribution from retained subordinated interest in Vertiv (VRT) | $ 100 | |||||
Period over which distributions are expected to occur | 2 years | |||||
Forecast [Member] | Automation Solutions [Member] | AspenTech [Member] | ||||||
Business Acquisition & Disposal [Line Items] | ||||||
Cash contribution to AspenTech shareholders | $ 6,000 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% |
Pension & Postretirement Plan_2
Pension & Postretirement Plans (Schedule Of Net Periodic Pension And Net Postretirement Plan Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 19 | $ 21 |
Interest cost | 34 | 32 |
Expected return on plan assets | (78) | (84) |
Net amortization | 23 | 35 |
Total | $ (2) | $ 4 |
Other Deductions, Net (Schedule
Other Deductions, Net (Schedule Of Other Deductions, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other deductions, net [Line Items] | ||
Amortization of intangibles (intellectual property and customer relationships) | $ 63 | $ 78 |
Restructuring costs | 9 | 66 |
Other | (21) | (22) |
Other deductions, net | 51 | 122 |
Change in gain (loss) from foreign currency exchange transactions | 25 | |
Gain (loss) from acquiring the remaining interest of an equity investment | 17 | |
Gain (loss) from an investment sales | 21 | |
Proceeds from Sale of Productive Assets | 15 | |
Open Systems International Inc. [Member] | Order or Production Backlog [Member] | ||
Other deductions, net [Line Items] | ||
Backlog amortization | $ 11 | |
AspenTech [Member] | ||
Other deductions, net [Line Items] | ||
Business Acquisition, Transaction Costs | $ 23 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2022USD ($) | |
Restructuring Reserve [Roll Forward] | |||
Beginning restructuring liability | $ 176 | ||
Restructuring expense | 9 | $ 66 | |
Restructuring utilized/paid | 29 | ||
Ending restructuring liability | $ 156 | ||
Total number of employee workforce reductions | 150 | ||
Cost of sales and selling, general, and administrative expenses [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense | $ 9 | 3 | |
Severance and benefits [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning restructuring liability | 172 | ||
Restructuring expense | 2 | ||
Restructuring utilized/paid | 20 | ||
Ending restructuring liability | 154 | ||
Other Restructuring [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning restructuring liability | 4 | ||
Restructuring expense | 7 | ||
Restructuring utilized/paid | 9 | ||
Ending restructuring liability | 2 | ||
Automation Solutions [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense | 5 | 64 | |
Commercial & Residential Solutions [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense | 3 | 2 | |
Climate Technologies [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense | 2 | 1 | |
Tools & Home Products [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense | 1 | 1 | |
Corporate [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expense | $ 1 | $ 0 | |
Forecast [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Expected fiscal year restructuring expense | $ 150 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 15 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Income Tax [Line Items] | |||
Payroll tax deferral from CARES Act through December 2020 | $ 73 | ||
Tax on subordinated interest gain (Vertiv) | $ 95 | ||
Favorable net discrete items, percentage impact | 2.00% | 2.00% | |
Payroll Taxes Paid | $ 37 | ||
Unfavorable discrete items, percentage impact | 4.00% | ||
Income taxes | $ 280 | $ 111 | |
Effective income tax rate | 24.00% | 20.00% |
Other Financial Information (In
Other Financial Information (Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 744 | $ 616 |
Raw materials and work in process | 1,591 | 1,434 |
Total | $ 2,335 | $ 2,050 |
Other Financial Information (PP
Other Financial Information (PPE) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, at cost | $ 9,442 | $ 9,427 |
Less: Accumulated depreciation | 5,757 | 5,689 |
Total | $ 3,685 | $ 3,738 |
Other Financial Information (Go
Other Financial Information (Goodwill) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 7,695 | $ 7,723 |
Automation Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 6,534 | 6,552 |
Commercial & Residential Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,161 | 1,171 |
Climate Technologies [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 751 | 753 |
Tools & Home Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 410 | $ 418 |
Other Financial Information (_2
Other Financial Information (Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 5,910 | $ 5,911 |
Less: Accumulated amortization | 3,119 | 3,034 |
Net carrying amount | 2,791 | 2,877 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount | $ 1,449 | $ 1,495 |
Other Financial Data (Component
Other Financial Data (Components of Depreciation and Amortization) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation | $ 128 | $ 124 |
Amortization of intangibles excluding capitalized software | 77 | 92 |
Amortization of intangibles in Cost of Sales | 14 | 14 |
Capitalized Computer Software, Amortization | 26 | 28 |
Depreciation and amortization | $ 231 | 244 |
Open Systems International Inc. [Member] | Order or Production Backlog [Member] | ||
Backlog amortization | $ 11 |
Other Financial Information (Ot
Other Financial Information (Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Pension assets | $ 1,042 | $ 1,015 |
Operating lease right-of-use assets | 536 | 558 |
Deferred income taxes | 101 | 115 |
Asbestos-related insurance receivables | $ 91 | $ 95 |
Other Financial Information (Ac
Other Financial Information (Accrued Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Customer advances (contract liabilities) | $ 851 | $ 730 |
Employee compensation | $ 428 | 690 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | |
Operating lease liabilities (current) | $ 152 | 155 |
Product warranty | $ 136 | $ 146 |
Other Financial Information (_3
Other Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Other Liabilities [Abstract] | ||
Deferred income taxes | $ 736 | $ 711 |
Pension and postretirement liabilities | 674 | 676 |
Operating lease liabilities (noncurrent) | 395 | 413 |
Asbestos litigation | $ 251 | $ 256 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.00% |
2.625 Percent Notes Due December 2021 | |
Debt Instrument [Line Items] | |
Notes interest rate, percentage | 2.625% |
Repayments of Debt | $ 500 |
2.0 Percent Notes due December 2028 | |
Debt Instrument [Line Items] | |
Notes interest rate, percentage | 2.00% |
Proceeds from Issuance of Debt | $ 1,000 |
2.2 Percent Notes due December 2031 | |
Debt Instrument [Line Items] | |
Notes interest rate, percentage | 2.20% |
Proceeds from Issuance of Debt | $ 1,000 |
2.8 Percent Notes due December 2051 | |
Debt Instrument [Line Items] | |
Notes interest rate, percentage | 2.80% |
Proceeds from Issuance of Debt | $ 1,000 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Derivative Instruments) (Details) € in Millions, lb in Millions, $ in Millions | 3 Months Ended | ||
Dec. 31, 2021USD ($)lb | Dec. 31, 2020USD ($) | Sep. 30, 2020EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified to earnings | $ 54 | $ 0 | |
Other Comprehensive Income (Loss), Total | 60 | (35) | |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified to earnings | 7 | 3 | |
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 | 13 | 13 | |
Foreign Exchange Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of foreign currency hedge positions | 2,400 | ||
Foreign Exchange Contract [Member] | Other deductions, net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified to earnings | 44 | (4) | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified to earnings | 2 | 0 | |
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 | 3 | 27 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified to earnings | 1 | 1 | |
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 | 5 | |
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 | 44 | $ (80) | |
All Commodity Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of commodities hedged | $ 143 | ||
Copper and Aluminum [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Weight in pounds of copper and aluminum commodity hedges | lb | 40 | ||
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 | Dec. 31, 2021USD ($) |
Derivatives, Fair Value [Line Items] | |
Fair value of long-term debt compared with carrying value | $ 411 |
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 | $ 9,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | $ 9,923 | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||
Ending balance | 10,288 | $ 8,939 | |
Accumulated other comprehensive income (loss) | (922) | (1,330) | $ (872) |
Accumulated other comprehensive income (loss) | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | (872) | (1,577) | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||
Ending balance | (922) | (1,330) | |
Foreign currency translation [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | (629) | (711) | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||
Other comprehensive income (loss), foreign currency translation, net of tax of $(10), and $19, respectively | (72) | 189 | |
Ending balance | (701) | (522) | |
Pension and post retirement [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | (259) | (864) | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||
Amortization of deferred actuarial losses into earnings, net of tax of $(5) and $(8), respectively | 18 | 27 | |
Ending balance | (241) | (837) | |
Cash Flow Hedges [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | 16 | (2) | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||
Deferral of gains (losses) arising during the period, net of tax of $(4) and $(11), respectively | 12 | 34 | |
Reclassification of realized gains (losses) to sales and cost of sales, net of tax of $2 and $1, respectively | (8) | (3) | |
Ending balance | $ 20 | $ 29 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation, tax | $ (10) | $ 19 |
Amortization of deferred actuarial losses, tax | (5) | (8) |
Gains (losses) deferred during the period, tax | (4) | (11) |
Reclassification of (gains) losses to sales and cost of sales, tax | $ 2 | $ 1 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 4,473 | $ 4,161 |
Earnings | 1,175 | 563 |
Interest expense | (38) | (40) |
Gain from periodic distribution from retained subordinated interest in Vertiv (VRT) | (453) | 0 |
Operating Segments [Member] | Automation Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,805 | 2,692 |
Earnings | 526 | 361 |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,671 | 1,476 |
Earnings | 299 | 310 |
Operating Segments [Member] | Climate Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,163 | 1,031 |
Earnings | 192 | 212 |
Operating Segments [Member] | Tools & Home Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 508 | 445 |
Earnings | 107 | 98 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Stock compensation | (41) | (64) |
Unallocated pension and postretirement costs | 26 | 24 |
Interest expense | (38) | (40) |
Corporate and other [Member] | ||
Segment Reporting Information [Line Items] | ||
Earnings | (50) | (28) |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ (3) | $ (7) |
Business Segments Product Line
Business Segments Product Line Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,473 | $ 4,161 |
Automation Solutions [Member] | Measurement & Analytical Instrumentation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 735 | 698 |
Automation Solutions [Member] | Valves, Actuators & Regulators [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 816 | 806 |
Automation Solutions [Member] | Industrial Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 566 | 508 |
Automation Solutions [Member] | Systems & Software | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 688 | 680 |
Operating Segments [Member] | Automation Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 2,805 | $ 2,692 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | $ 231 | $ 244 |
Corporate, non-segment [Member] | Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 9 | 20 |
Operating Segments [Member] | Automation Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 155 | 156 |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 67 | 68 |
Operating Segments [Member] | Climate Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 47 | 49 |
Operating Segments [Member] | Tools & Home Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | $ 20 | $ 19 |
Business Segments Geographic In
Business Segments Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,473 | $ 4,161 |
Reportable Geographical Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,476 | 4,168 |
Reportable Geographical Components [Member] | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,385 | 2,149 |
Reportable Geographical Components [Member] | Asia, Middle East & Africa | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,327 | 1,250 |
Reportable Geographical Components [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 764 | 769 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,805 | 2,692 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,241 | 1,168 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Asia, Middle East & Africa | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,005 | 942 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 559 | 582 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,671 | 1,476 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,144 | 981 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Asia, Middle East & Africa | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 322 | 308 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 205 | $ 187 |