Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2022 | Jul. 31, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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 | 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 | 591,300,000 | |
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 | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net sales | $ 5,005 | $ 4,697 | $ 14,269 | $ 13,289 |
Cost of sales | 2,908 | 2,715 | 8,398 | 7,722 |
Selling, general and administrative expenses | 1,052 | 1,073 | 3,112 | 3,125 |
Gain on subordinated interest | 0 | 0 | (453) | 0 |
Gain on sale of business | (483) | 0 | (483) | 0 |
Other deductions, net | 283 | 88 | 374 | 243 |
Interest expense (net of interest income of $11, $3, $18, and $9, respectively) | 50 | 37 | 140 | 115 |
Earnings before income taxes | 1,195 | 784 | 3,181 | 2,084 |
Income taxes | 243 | 151 | 659 | 431 |
Net earnings | 952 | 633 | 2,522 | 1,653 |
Less: Noncontrolling interests in subsidiaries | 31 | 6 | 31 | 20 |
Net earnings common stockholders | $ 921 | $ 627 | $ 2,491 | $ 1,633 |
Earnings Per Share, Basic | $ 1.55 | $ 1.05 | $ 4.19 | $ 2.73 |
Earnings Per Share, Diluted | $ 1.54 | $ 1.04 | $ 4.17 | $ 2.71 |
Weighted Average Number of Shares Outstanding, Basic | 592.8 | 598.2 | 593.6 | 598.7 |
Weighted Average Number of Shares Outstanding, Diluted | 596.2 | 602.1 | 596.9 | 602.3 |
Consolidated Statements Of Ea_2
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Interest income | $ 11 | $ 3 | $ 18 | $ 9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net earnings | $ 952 | $ 633 | $ 2,522 | $ 1,653 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (187) | (5) | (319) | 163 |
Pension and postretirement | 18 | 27 | 54 | 81 |
Cash flow hedges | (27) | (6) | (17) | 26 |
Total other comprehensive income (loss) | (196) | 16 | (282) | 270 |
Comprehensive income | 756 | 649 | 2,240 | 1,923 |
Less: Noncontrolling interests in subsidiaries | 30 | 7 | 29 | 20 |
Comprehensive income common stockholders | $ 726 | $ 642 | $ 2,211 | $ 1,903 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Current assets | ||
Cash and equivalents | $ 2,529 | $ 2,354 |
Receivables, less allowances of $113 and $116, respectively | 2,957 | 2,971 |
Inventories | 2,319 | 2,050 |
Other current assets | 1,570 | 1,057 |
Total current assets | 9,375 | 8,432 |
Property, plant and equipment, net | 3,359 | 3,738 |
Other assets | ||
Goodwill | 14,748 | 7,723 |
Other intangible assets | 6,930 | 2,877 |
Other | 2,630 | 1,945 |
Total other assets | 24,308 | 12,545 |
Total assets | 37,042 | 24,715 |
Current liabilities | ||
Short-term borrowings and current maturities of long-term debt | 3,227 | 872 |
Accounts payable | 2,040 | 2,108 |
Accrued expenses | 3,545 | 3,266 |
Total current liabilities | 8,812 | 6,246 |
Long-term debt | 8,367 | 5,793 |
Other liabilities | 3,576 | 2,753 |
Equity | ||
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding, 592.2 shares and 595.8 shares, respectively | 477 | 477 |
Additional paid-in-capital | 42 | 522 |
Retained earnings | 27,618 | 26,047 |
Accumulated other comprehensive income (loss) | (1,152) | (872) |
Cost of common stock in treasury, 361.2 shares and 357.6 shares, respectively | (16,670) | (16,291) |
Common stockholders’ equity | 10,315 | 9,883 |
Noncontrolling interests in subsidiaries | 5,972 | 40 |
Total equity | 16,287 | 9,923 |
Total liabilities and equity | $ 37,042 | $ 24,715 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2022 | 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 | 592.2 | 595.8 |
Treasury stock, shares | 361.2 | 357.6 |
Consolidated Statement of Equit
Consolidated Statement of Equity Statement - USD ($) $ in Millions | Total | AspenTech | 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 | 48 | |||||||
Adjustments to Additional Paid in Capital, Other | 0 | |||||||
Net earnings common stockholders | $ 1,633 | 1,633 | ||||||
Dividends paid (per share: $0.515, $0.505, $1.545 and $1.515, respectively) | (909) | (14) | ||||||
AspenTech acquisition | 0 | |||||||
Adoption of accounting standard | (1) | |||||||
Foreign currency translation | 163 | 163 | ||||||
Amortization of deferred actuarial losses into earnings, net of tax of $(5) and $(8), respectively | (81) | 81 | ||||||
Cash flow hedges | 26 | 26 | ||||||
Purchases | (275) | |||||||
Issued under stock plans | 120 | |||||||
Net earnings | 20 | |||||||
Stock compensation | 0 | |||||||
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 | (1,322) | (15,890) | 50 | |||
Statement [Roll Forward] | ||||||||
Stock plans | 7 | |||||||
Adjustments to Additional Paid in Capital, Other | 0 | |||||||
Net earnings common stockholders | 627 | 627 | ||||||
Dividends paid (per share: $0.515, $0.505, $1.545 and $1.515, respectively) | (303) | (9) | ||||||
AspenTech acquisition | 0 | |||||||
Adoption of accounting standard | 0 | |||||||
Foreign currency translation | (5) | (6) | ||||||
Amortization of deferred actuarial losses into earnings, net of tax of $(5) and $(8), respectively | (27) | 27 | ||||||
Cash flow hedges | (6) | (6) | ||||||
Purchases | (193) | |||||||
Issued under stock plans | 8 | |||||||
Net earnings | 6 | |||||||
Stock compensation | 0 | |||||||
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 | |||||||
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 | 70 | |||||||
Adjustments to Additional Paid in Capital, Other | (550) | |||||||
Net earnings common stockholders | 2,491 | 2,491 | ||||||
Dividends paid (per share: $0.515, $0.505, $1.545 and $1.515, respectively) | (920) | (2) | ||||||
AspenTech acquisition | 5,890 | |||||||
Adoption of accounting standard | 0 | |||||||
Foreign currency translation | (319) | (317) | ||||||
Amortization of deferred actuarial losses into earnings, net of tax of $(5) and $(8), respectively | (54) | 54 | ||||||
Cash flow hedges | (17) | (17) | ||||||
Purchases | (430) | |||||||
Issued under stock plans | 51 | |||||||
Net earnings | 31 | |||||||
Stock compensation | $ 15 | 15 | ||||||
Other comprehensive income | (282) | (2) | ||||||
Ending balance at Jun. 30, 2022 | 16,287 | 477 | 42 | 27,618 | (1,152) | (16,670) | 5,972 | |
Beginning balance at Mar. 31, 2022 | 579 | 27,003 | (957) | (16,527) | 39 | |||
Statement [Roll Forward] | ||||||||
Stock plans | 13 | |||||||
Adjustments to Additional Paid in Capital, Other | 550 | (550) | ||||||
Net earnings common stockholders | 921 | 921 | ||||||
Dividends paid (per share: $0.515, $0.505, $1.545 and $1.515, respectively) | (306) | (2) | ||||||
AspenTech acquisition | 5,890 | |||||||
Adoption of accounting standard | 0 | |||||||
Foreign currency translation | (187) | (186) | ||||||
Amortization of deferred actuarial losses into earnings, net of tax of $(5) and $(8), respectively | (18) | 18 | ||||||
Cash flow hedges | (27) | (27) | ||||||
Purchases | (145) | |||||||
Issued under stock plans | 2 | |||||||
Net earnings | 31 | |||||||
Stock compensation | $ 15 | 15 | ||||||
Other comprehensive income | (196) | (1) | ||||||
Ending balance at Jun. 30, 2022 | 16,287 | $ 477 | $ 42 | $ 27,618 | $ (1,152) | $ (16,670) | $ 5,972 | |
Statement [Roll Forward] | ||||||||
Common stockholders' equity | $ 10,315 |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Dividends paid, per share | $ 0.515 | $ 0.505 | $ 1.545 | $ 1.515 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||
Net earnings | $ 2,522 | $ 1,653 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 722 | 720 |
Stock compensation | 107 | 191 |
Pension expense | 2 | 23 |
Total changes in operating working capital | (706) | 246 |
Gain on subordinated interest | (453) | 0 |
Gain on sale of business - TOD | (428) | 0 |
Other, net | (61) | (113) |
Cash provided by operating activities | 1,705 | 2,720 |
Investing activities | ||
Capital expenditures | (335) | (350) |
Purchases of businesses, net of cash and equivalents acquired | (5,615) | (1,611) |
Proceeds from Divestiture of Businesses | 578 | 0 |
Proceeds from subordinated interest | 438 | 0 |
Other, net | (41) | 53 |
Cash used in investing activities | (4,975) | (1,908) |
Financing activities | ||
Net increase in short-term borrowings | 1,633 | 31 |
Proceeds from short-term borrowings greater than three months | 1,162 | 71 |
Repayments of Short-term Debt, Maturing in More than Three Months | (445) | 0 |
Proceeds from long-term debt | 2,975 | 0 |
Payments of long-term debt | (512) | (305) |
Dividends paid | (918) | (909) |
Purchases of common stock | (418) | (268) |
Other, net | 80 | 89 |
Cash provided by (used in) financing activities | 3,557 | (1,291) |
Effect of exchange rate changes on cash and equivalents | (112) | 24 |
Increase (Decrease) in cash and equivalents | 175 | (455) |
Beginning cash and equivalents | 2,354 | 3,315 |
Ending cash and equivalents | 2,529 | 2,860 |
Changes in operating working capital | ||
Receivables | (118) | 76 |
Inventories | (513) | (160) |
Other current assets | (86) | (69) |
Accounts payable | 80 | 216 |
Accrued expenses | (69) | 183 |
Total changes in operating working capital | $ (706) | $ 246 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2022 | |
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. Certain prior year amounts have been reclassified to conform to the current year presentation to reflect the business combination with AspenTech (see Note 4), which is reported as a new segment and includes the historical results of Open Systems International, Inc. and the Geological Simulation Software business. These businesses were previously reported in the Automation Solutions segment (see Note 13). Effective October 1, 2021, the Company adopted three accounting standard updates which had an immaterial or no impact on the Company's financial statements as of and for the nine months ended June 30, 2022. 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 | 9 Months Ended |
Jun. 30, 2022 | |
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 assets (current and noncurrent), and its customer advances (contract liabilities), which are reported in Accrued expenses and Other liabilities. Sept 30, 2021 June 30, 2022 Unbilled receivables (contract assets) $ 528 1,323 Customer advances (contract liabilities) (730) (917) Net contract assets (liabilities) $ (202) 406 The majority of the Company's contract balances relate to (1) arrangements where revenue is recognized over time and payments from customers are made according to a contractual billing schedule, and (2) revenue from term software lice nse arrangements sold by AspenTech where the license revenue is recognized upfront upon delivery. The change in the net contract balance was due to the AspenTech acquisition, which added net contract assets of approximately $700, partially offset by an increase in net contract liabilities for the Company's existing businesses due to customer billings exceeding revenue recognized for performance completed during the period. |
Common Shares and Share-Based C
Common Shares and Share-Based Compensation | 9 Months Ended |
Jun. 30, 2022 | |
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 Nine Months Ended 2021 2022 2021 2022 Basic shares outstanding 598.2 592.8 598.7 593.6 Dilutive shares 3.9 3.4 3.6 3.3 Diluted shares outstanding 602.1 596.2 602.3 596.9 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 , and therefore expense will be recognized on a fixed basis over the three-year performance period. The terms of the performance share awards issued in fiscal 2020 and 2021 are unchanged and will therefore continue to be accounted for as liability awards and marked-to-market each period based on changes in the stock price. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Aspen Technology On May 16, 2022, the Company completed the transactions contemplated by its 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 ( collectively, the “Emerson Industrial 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, Emerson beneficially owned 55 percent of the outstanding shares of New AspenTech common stock (on a fully diluted basis) and former AspenTech stockholders owned the remaining outstanding shares of New AspenTech common stock. New AspenTech and its subsidiaries now operate under AspenTech’s previous name “Aspen Technology, Inc.” and New AspenTech common stock is traded on NASDAQ under AspenTech’s previous stock ticker symbol “AZPN.” The business combination has been accounted for using the acquisition method of accounting with Emerson considered the accounting acquirer of AspenTech. The net assets of AspenTech were recorded at their estimated fair value and the Emerson Industrial Software Business continues at its historical basis. The Company recorded a noncontrolling interest of $5.9 billion for the 45 percent ownership interest of former AspenTech stockholders in New AspenTech. The noncontrolling interest associated with the AspenTech acquired net assets was recorded at fair value determined using the closing market price per share of AspenTech as of May 16, 2022, while the portion attributable to the Emerson Industrial Software business was recorded at its historical carrying amount. The impact of recognizing the noncontrolling interest in the Emerson Industrial Software Business resulted in a decrease to additional paid-in-capital of $550. The following table summarizes the components of the purchase consideration reflected in the acquisition accounting using AspenTech's shares outstanding and closing market price per share as of May 16, 2022 (in millions except share and per share data): AspenTech shares outstanding 66,662,482 AspenTech share price $ 166.30 Purchase price $ 11,086 Value of stock-based compensation awards attributable to pre-combination service 102 Total purchase consideration $ 11,188 The total purchase consideration for AspenTech was preliminarily allocated to assets and liabilities as follows. Valuations of acquired assets and liabilities are in-process and subject to refinement. Cash and equivalents $ 274 Receivables 61 Other current assets 262 Property, plant equipment 4 Goodwill ($34 expected to be tax-deductible) 7,223 Other intangible assets 4,390 Other assets 511 Total assets 12,725 Short-term borrowings 27 Accounts payable 8 Accrued expenses 113 Long-term debt 253 Deferred taxes and other liabilities 1,136 Total purchase consideration $ 11,188 Emerson's cash contribution of approximately $6.0 billion was paid out at approximately $87.69 per share (on a fully diluted basis) to holders of issued and outstanding shares of AspenTech common stock as of the closing of the transactions, with $168 of cash remaining on New AspenTech's balance sheet as of the closing which is not included in the allocation of purchase consideration above. The estimated intangible assets attributable to the transaction are comprised of the following (in millions) : Amount Estimated Weighted Average Life (Years) Developed technology $ 1,350 10 Customer relationships 2,300 15 Trade names 430 Indefinite-lived Backlog 310 3 Total $ 4,390 Results of operations for the third quarter of 2022 attributable to the AspenTech acquisition include sales of $173 while the impact to GAAP net earnings was not material. Pro Forma Financial Information The following unaudited proforma consolidated condensed financial results of operations are presented as if the acquisition of AspenTech occurred on Oct ober 1, 2020. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time ($ in millions, except per share amounts). Three Months Ended June 30, Nine Months Ended June 30, 2021 2022 2021 2022 Net Sales $ 4,895 5,060 13,884 14,683 Net earnings common stockholders $ 614 964 1,480 2,517 Diluted earnings per share $ 1.02 1.62 2.46 4.21 The pro forma results for the nine months ended June 30, 2021 include $159 of transaction costs which were assumed to be incurred in the first fiscal quarter of 2021. Of these transaction costs, $61 and $91 were included in the Company's reported results for the three and nine months ended June 30, 2022, respectively, but have been excluded from the fiscal 2022 pro forma results above. In addition, AspenTech incurred $68 of transaction costs prior to the completion of the acquisition that were not included in Emerson's reported results. The pro forma results for the three and nine months ended June 30, 2021 include estimated interest expense of $37 and $110, respectively, related to the issuance of $3 billion of term debt and increased commercial paper borrowings to fund the acquisition, while results for the nine months ended June 30, 2022 include additional interest expense of $56 to reflect the increased borrowings as if they were outstanding for the entire fiscal year. Other Transactions On August 8, 2022 the Company announced an agreement to sell its InSinkErator business, which manufactures food waste disposers and is reported in the Tools & Home Products segment, to Whirlpool Corporation for $3.0 billion. This business had sales and pretax earnings of $565 and $143 in fiscal 2021 and $480 and $117 for the nine months ended June 30, 2022. The assets and liabilities of InSinkErator were classified as held-for-sale as of June 30, 2022 and are included in other current assets, other assets, accrued expenses and other liabilities in the consolidated balance sheet. The transaction is expected to close in fiscal 2023, subject to regulatory approvals and other customary closing conditions. On July 27, 2022, New AspenTech entered into an agreement to acquire Micromine, a global leader in design and operational solutions for the mining industry, for AU$900 (approximately $623 USD). The transaction is expected to close by the end of calendar 2022, subject to various regulatory approvals. On May 31, 2022 the Company completed the divestiture of its Therm-O-Disc sensing and protection technologies business, which was reported in the Climate Technologies segment, to an affiliate of One Rock Capital Partners, LLC. The Company recognized a pretax gain of $483 ($428 after-tax, $0.72 per share). On May 4, 2022, Emerson announced its intention to exit business operations in Russia and divest Metran, its Russia-based manufacturing subsidiary. Emerson's historical net sales in Russia were principally in the Automation Solutions segment and in total, represented approximately 1.5 percent of consolidated annual sales. In the third quarter of fiscal 2022, the Company recognized a pretax loss of $162 ($174 after-tax, in total $0.29 per share) related to its exit of business operations in Russia. This charge, which included a loss of $32 in operations and $130 reported in Other deductions ($9 of which is reported in restructuring costs), is primarily non-cash. Emerson is committed to an orderly transfer of these assets and will support its employees through this process. 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 now reported in the AspenTech segment, expanded 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 two three |
Pension & Postretirement Plans
Pension & Postretirement Plans | 9 Months Ended |
Jun. 30, 2022 | |
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, 2021 2022 2021 2022 Service cost $ 21 19 63 57 Interest cost 32 34 96 102 Expected return on plan assets (84) (78) (252) (234) Net amortization 35 23 105 69 Total $ 4 (2) 12 (6) |
Other Deductions, Net
Other Deductions, Net | 9 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Deductions, Net | OTHER DEDUCTIONS, NET Other deductions, net are summarized below: Three Months Ended Nine Months Ended 2021 2022 2021 2022 Amortization of intangibles (intellectual property and $ 71 98 223 223 Restructuring costs 28 31 111 50 Acquisition/divestiture costs 2 61 11 97 Foreign currency transaction (gains) losses 1 (13) 7 (41) Investment-related gains & gains from sales of capital assets — — (69) (15) Russia business exit — 121 — 121 Other (14) (15) (40) (61) Total $ 88 283 243 374 |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Jun. 30, 2022 | |
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. Expenses incurred in the first nine months of fiscal 2022 included costs related to workforce reductions of approximately 1,400 employees. The Company expects fiscal 2022 restructuring expense and related costs to be approximately $150, 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 2021 2022 2021 2022 Automation Solutions $ 20 20 92 33 AspenTech (2) 1 2 1 Climate Technologies 4 2 8 5 Tools & Home Products 2 (1) 4 1 Commercial & Residential Solutions 6 1 12 6 Corporate 4 9 5 10 Total $ 28 31 111 50 Details of the change in the liability for restructuring costs during the nine months ended June 30, 2022 follow: Sept 30, 2021 Expense Utilized/Paid June 30, 2022 Severance and benefits $ 172 20 52 140 Other 4 30 29 5 Total $ 176 50 81 145 The tables above do not include $4 and $12 of costs related to restructuring actions incurred for the three months ended June 30, 2021 and 2022, respectively, that are required to be reported in cost of sales and selling, general and administrative expenses; year-to-date amounts are $11 and $26, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | TAXES Income taxes were $243 in the third quarter of fiscal 2022 and $151 in 2021, resulting in effective tax rates of 20 percent and 19 percent, respectively. Favorable net discrete tax items decreased the tax rates by 2 and 3 percentage points, respectively. Income taxes were $659 for the first nine months of 2022 and $431 for 2021, resulting in effective tax rates of 21 percent and 21 percent, respectively. The current year rate included a 2 percentage point benefit related to the completion of tax examinations, partially offset by portfolio restructuring activities which negatively impacted the rate by 1 percentage points, while the prior year had favorable net discrete items which reduced the rate 1 percentage point. 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 | 9 Months Ended |
Jun. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Other Financial Information | OTHER FINANCIAL INFORMATION Sept 30, 2021 June 30, 2022 Inventories Finished products $ 616 681 Raw materials and work in process 1,434 1,638 Total $ 2,050 2,319 Property, plant and equipment, net Property, plant and equipment, at cost $ 9,427 8,824 Less: Accumulated depreciation 5,689 5,465 Total $ 3,738 3,359 Goodwill by business segment Automation Solutions $ 5,508 5,378 AspenTech 1,044 8,266 Climate Technologies 753 719 Tools & Home Products 418 385 Commercial & Residential Solutions 1,171 1,104 Total $ 7,723 14,748 Other intangible assets Gross carrying amount $ 5,911 10,215 Less: Accumulated amortization 3,034 3,285 Net carrying amount $ 2,877 6,930 Other intangible assets include customer relationships, net, of $1,495 and $3,614 as of September 30, 2021 and June 30, 2022, respectively. The increase in goodwill and intangibles was primarily due to the AspenTech acquisition. See Note 4. Three Months Ended June 30, Nine Months Ended June 30, 2021 2022 2021 2022 Depreciation and amortization expense include the following: Depreciation expense $ 123 117 369 366 Amortization of intangibles (includes $14, $31, $42, and $59 reported in Cost of Sales, respectively) 86 129 266 282 Amortization of capitalized software 28 24 85 74 Total $ 237 270 720 722 Amortization of intangibles included $49 related to the AspenTech acquisition for the three and nine months ended June 30, 2021, while the prior year included backlog amortization of $7 and $24 related to the OSI acquisition for the three and nine months ended June 30, 2021, respectively. For the three and nine months ended June 30, 2022, $5 of amortization of intangibles included in the table above is reported as a restructuring related cost. Sept 30, 2021 June 30, 2022 Other assets include the following: Pension assets $ 1,015 1,083 Operating lease right-of-use assets 558 531 Unbilled receivables (contract assets) — 475 Deferred income taxes 115 98 Asbestos-related insurance receivables 95 87 Accrued expenses include the following: Customer advances (contract liabilities) $ 730 886 Employee compensation 690 574 Operating lease liabilities (current) 155 154 Product warranty 146 119 Other liabilities include the following: Deferred income taxes $ 711 1,736 Pension and postretirement liabilities 676 656 Operating lease liabilities (noncurrent) 413 384 Asbestos litigation 256 230 The increases in Unbilled receivables and Deferred income taxes were primarily due to the AspenTech acquisition. See Notes 2 and 4. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | DEBT In December 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's commercial paper borrowings also increased by approximat ely $2.4 billion c ompared to September 30, 2021. The Company used the net proceeds from the sale of the notes and the increased commercial paper borrowings to fund the majority of its contribution of approximately $6.0 billion to existing stockholders of AspenTech as part of the transaction discussed further in Note 4. In the first quarter of fiscal 2022, the Company repaid $500 of 2.625% notes that matured. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Hedging Activities – As of June 30, 2022, the notional amount of foreign currency hedge positions was approximately $2.1 billion, and commodity hedge contracts totaled approximately $170 (primarily 45 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, 2022 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 2022: Into Earnings Into OCI 3rd Quarter Nine Months 3rd Quarter Nine Months Gains (Losses) Location 2021 2022 2021 2022 2021 2022 2021 2022 Commodity Cost of sales $ 13 5 24 18 8 (32) 34 (9) Foreign currency Sales — (1) 2 — — (3) 3 (5) Foreign currency Cost of sales 3 10 5 21 1 15 28 32 Foreign currency Other deductions, net 8 56 33 108 Net Investment Hedges Euro denominated debt 6 84 (21) 163 Total $ 24 70 64 147 15 64 44 181 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, 2022, the fair value of long-term debt was $8.1 billion, which was lower than the carrying value by $816. 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) | 9 Months Ended |
Jun. 30, 2022 | |
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 2022 is shown below, net of income taxes: Three Months Ended June 30, Nine Months Ended June 30, 2021 2022 2021 2022 Foreign currency translation Beginning balance $ (542) (760) (711) (629) Other comprehensive income (loss), net of tax of $(1), $(20), $5 and $(38), respectively (6) (186) 163 (317) Ending balance (548) (946) (548) (946) Pension and postretirement Beginning balance (810) (223) (864) (259) Amortization of deferred actuarial losses into earnings, net of tax of $(8), $(5), $(24) and $(15), respectively 27 18 81 54 Ending balance (783) (205) (783) (205) Cash flow hedges Beginning balance 30 26 (2) 16 Gains deferred during the period, net of taxes of $(2), $5, $(15) and $(4), respectively 7 (15) 50 14 Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $3, $4, $7 and $10, respectively (13) (12) (24) (31) Ending balance 24 (1) 24 (1) Accumulated other comprehensive income (loss) $ (1,307) (1,152) (1,307) (1,152) |
Business Segments
Business Segments | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTSAs a result of the AspenTech acquisition, the Company identified one additional segment in the third quarter of fiscal 2022. The new segment, referred to as "AspenTech," reflects the combined results of AspenTech and the Emerson Industrial Software Business (see Note 4 for further details). The results for this new segment include the historical results of the Emerson Industrial Software Business (which were previously reported in the Automation Solutions segment), while results related to the AspenTech business only include periods subsequent to the close of the transaction. Prior year amounts for the Automation Solutions segment have been reclassified to conform to the current year presentation. 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 2021 2022 2021 2022 2021 2022 2021 2022 Automation Solutions $ 2,865 2,872 519 530 8,193 8,451 1,354 1,618 AspenTech 82 239 2 57 239 405 (1) 51 Climate Technologies 1,268 1,380 274 300 3,459 3,884 731 754 Tools & Home Products 489 522 101 107 1,419 1,546 311 317 Commercial & Residential Solutions 1,757 1,902 375 407 4,878 5,430 1,042 1,071 Stock compensation (66) (16) (191) (107) Unallocated pension and postretirement costs 24 25 71 76 Corporate and other (33) (241) (76) (324) Gain on subordinated interest — — — 453 Gain on sale of business — 483 — 483 Eliminations/Interest (7) (8) (37) (50) (21) (17) (115) (140) Total $ 4,697 5,005 784 1,195 13,289 14,269 2,084 3,181 Corporate and other for the three and nine months ended June 30, 2022 includes a loss of $162 related to the Company's exit of business operations in Russia and acquisition/divestiture costs of $61 and $97, respectively. Automation Solutions sales by major product offering are summarized below. Three Months Ended June 30, Nine Months Ended June 30, 2021 2022 2021 2022 Measurement & Analytical Instrumentation $ 781 785 2,211 2,287 Valves, Actuators & Regulators 880 905 2,522 2,604 Industrial Solutions 593 575 1,656 1,743 Systems & Software 611 607 1,804 1,817 Automation Solutions $ 2,865 2,872 8,193 8,451 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, 2021 2022 2021 2022 Automation Solutions $ 128 127 393 383 AspenTech 24 73 71 119 Climate Technologies 48 43 144 136 Tools & Home Products 20 19 59 58 Commercial & Residential Solutions 68 62 203 194 Corporate and other 17 8 53 26 Total $ 237 270 720 722 Sales by geographic destination are summarized below: Three Months Ended June 30, 2021 2022 Automation Solutions Aspen Tech Commercial & Residential Solutions Total Automation Solutions Aspen Tech Commercial & Residential Solutions Total Americas $ 1,269 52 1,190 2,511 1,418 131 1,362 2,911 Asia, Middle East & Africa 997 14 331 1,342 929 50 321 1,300 Europe 599 16 236 851 525 58 219 802 Total $ 2,865 82 1,757 4,704 2,872 239 1,902 5,013 Nine Months Ended June 30, 2021 2022 Automation Solutions Aspen Tech Commercial & Residential Solutions Total Automation Solutions Aspen Tech Commercial & Residential Solutions Total Americas $ 3,561 150 3,290 7,001 3,942 234 3,789 7,965 Asia, Middle East & Africa 2,861 46 944 3,851 2,894 85 981 3,960 Europe 1,771 43 644 2,458 1,615 86 660 2,361 Total $ 8,193 239 4,878 13,310 8,451 405 5,430 14,286 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 assets (current and noncurrent), and its customer advances (contract liabilities), which are reported in Accrued expenses and Other liabilities. Sept 30, 2021 June 30, 2022 Unbilled receivables (contract assets) $ 528 1,323 Customer advances (contract liabilities) (730) (917) Net contract assets (liabilities) $ (202) 406 |
Common Shares and Share-Based_2
Common Shares and Share-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share Reconciliation | Three Months Ended Nine Months Ended 2021 2022 2021 2022 Basic shares outstanding 598.2 592.8 598.7 593.6 Dilutive shares 3.9 3.4 3.6 3.3 Diluted shares outstanding 602.1 596.2 602.3 596.9 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Purchase Consideration | The following table summarizes the components of the purchase consideration reflected in the acquisition accounting using AspenTech's shares outstanding and closing market price per share as of May 16, 2022 (in millions except share and per share data): AspenTech shares outstanding 66,662,482 AspenTech share price $ 166.30 Purchase price $ 11,086 Value of stock-based compensation awards attributable to pre-combination service 102 Total purchase consideration $ 11,188 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total purchase consideration for AspenTech was preliminarily allocated to assets and liabilities as follows. Valuations of acquired assets and liabilities are in-process and subject to refinement. Cash and equivalents $ 274 Receivables 61 Other current assets 262 Property, plant equipment 4 Goodwill ($34 expected to be tax-deductible) 7,223 Other intangible assets 4,390 Other assets 511 Total assets 12,725 Short-term borrowings 27 Accounts payable 8 Accrued expenses 113 Long-term debt 253 Deferred taxes and other liabilities 1,136 Total purchase consideration $ 11,188 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The estimated intangible assets attributable to the transaction are comprised of the following (in millions) : Amount Estimated Weighted Average Life (Years) Developed technology $ 1,350 10 Customer relationships 2,300 15 Trade names 430 Indefinite-lived Backlog 310 3 Total $ 4,390 |
Business Acquisition, Pro Forma Information | The following unaudited proforma consolidated condensed financial results of operations are presented as if the acquisition of AspenTech occurred on Oct ober 1, 2020. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time ($ in millions, except per share amounts). Three Months Ended June 30, Nine Months Ended June 30, 2021 2022 2021 2022 Net Sales $ 4,895 5,060 13,884 14,683 Net earnings common stockholders $ 614 964 1,480 2,517 Diluted earnings per share $ 1.02 1.62 2.46 4.21 |
Pension & Postretirement Plans
Pension & Postretirement Plans (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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, 2021 2022 2021 2022 Service cost $ 21 19 63 57 Interest cost 32 34 96 102 Expected return on plan assets (84) (78) (252) (234) Net amortization 35 23 105 69 Total $ 4 (2) 12 (6) |
Other Deductions, Net (Tables)
Other Deductions, Net (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Deductions, net | Other deductions, net are summarized below: Three Months Ended Nine Months Ended 2021 2022 2021 2022 Amortization of intangibles (intellectual property and $ 71 98 223 223 Restructuring costs 28 31 111 50 Acquisition/divestiture costs 2 61 11 97 Foreign currency transaction (gains) losses 1 (13) 7 (41) Investment-related gains & gains from sales of capital assets — — (69) (15) Russia business exit — 121 — 121 Other (14) (15) (40) (61) Total $ 88 283 243 374 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expense by Segment | Restructuring expense by business segment follows: Three Months Ended Nine Months Ended 2021 2022 2021 2022 Automation Solutions $ 20 20 92 33 AspenTech (2) 1 2 1 Climate Technologies 4 2 8 5 Tools & Home Products 2 (1) 4 1 Commercial & Residential Solutions 6 1 12 6 Corporate 4 9 5 10 Total $ 28 31 111 50 |
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, 2022 follow: Sept 30, 2021 Expense Utilized/Paid June 30, 2022 Severance and benefits $ 172 20 52 140 Other 4 30 29 5 Total $ 176 50 81 145 |
Other Financial Information (Ta
Other Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Inventories | Sept 30, 2021 June 30, 2022 Inventories Finished products $ 616 681 Raw materials and work in process 1,434 1,638 Total $ 2,050 2,319 |
Property, Plant and Equipment, net | Property, plant and equipment, net Property, plant and equipment, at cost $ 9,427 8,824 Less: Accumulated depreciation 5,689 5,465 Total $ 3,738 3,359 |
Goodwill by Business Segment | Goodwill by business segment Automation Solutions $ 5,508 5,378 AspenTech 1,044 8,266 Climate Technologies 753 719 Tools & Home Products 418 385 Commercial & Residential Solutions 1,171 1,104 Total $ 7,723 14,748 |
Other Intangible Assets | Other intangible assets Gross carrying amount $ 5,911 10,215 Less: Accumulated amortization 3,034 3,285 Net carrying amount $ 2,877 6,930 |
Depreciation and Amortization components | Three Months Ended June 30, Nine Months Ended June 30, 2021 2022 2021 2022 Depreciation and amortization expense include the following: Depreciation expense $ 123 117 369 366 Amortization of intangibles (includes $14, $31, $42, and $59 reported in Cost of Sales, respectively) 86 129 266 282 Amortization of capitalized software 28 24 85 74 Total $ 237 270 720 722 |
Other Assets | Sept 30, 2021 June 30, 2022 Other assets include the following: Pension assets $ 1,015 1,083 Operating lease right-of-use assets 558 531 Unbilled receivables (contract assets) — 475 Deferred income taxes 115 98 Asbestos-related insurance receivables 95 87 |
Accrued Expenses | Accrued expenses include the following: Customer advances (contract liabilities) $ 730 886 Employee compensation 690 574 Operating lease liabilities (current) 155 154 Product warranty 146 119 |
Other Liabilities | Other liabilities include the following: Deferred income taxes $ 711 1,736 Pension and postretirement liabilities 676 656 Operating lease liabilities (noncurrent) 413 384 Asbestos litigation 256 230 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 2021 2022 2021 2022 2021 2022 2021 2022 Commodity Cost of sales $ 13 5 24 18 8 (32) 34 (9) Foreign currency Sales — (1) 2 — — (3) 3 (5) Foreign currency Cost of sales 3 10 5 21 1 15 28 32 Foreign currency Other deductions, net 8 56 33 108 Net Investment Hedges Euro denominated debt 6 84 (21) 163 Total $ 24 70 64 147 15 64 44 181 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 2022 is shown below, net of income taxes: Three Months Ended June 30, Nine Months Ended June 30, 2021 2022 2021 2022 Foreign currency translation Beginning balance $ (542) (760) (711) (629) Other comprehensive income (loss), net of tax of $(1), $(20), $5 and $(38), respectively (6) (186) 163 (317) Ending balance (548) (946) (548) (946) Pension and postretirement Beginning balance (810) (223) (864) (259) Amortization of deferred actuarial losses into earnings, net of tax of $(8), $(5), $(24) and $(15), respectively 27 18 81 54 Ending balance (783) (205) (783) (205) Cash flow hedges Beginning balance 30 26 (2) 16 Gains deferred during the period, net of taxes of $(2), $5, $(15) and $(4), respectively 7 (15) 50 14 Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $3, $4, $7 and $10, respectively (13) (12) (24) (31) Ending balance 24 (1) 24 (1) Accumulated other comprehensive income (loss) $ (1,307) (1,152) (1,307) (1,152) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 2021 2022 2021 2022 2021 2022 2021 2022 Automation Solutions $ 2,865 2,872 519 530 8,193 8,451 1,354 1,618 AspenTech 82 239 2 57 239 405 (1) 51 Climate Technologies 1,268 1,380 274 300 3,459 3,884 731 754 Tools & Home Products 489 522 101 107 1,419 1,546 311 317 Commercial & Residential Solutions 1,757 1,902 375 407 4,878 5,430 1,042 1,071 Stock compensation (66) (16) (191) (107) Unallocated pension and postretirement costs 24 25 71 76 Corporate and other (33) (241) (76) (324) Gain on subordinated interest — — — 453 Gain on sale of business — 483 — 483 Eliminations/Interest (7) (8) (37) (50) (21) (17) (115) (140) Total $ 4,697 5,005 784 1,195 13,289 14,269 2,084 3,181 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, 2021 2022 2021 2022 Automation Solutions $ 128 127 393 383 AspenTech 24 73 71 119 Climate Technologies 48 43 144 136 Tools & Home Products 20 19 59 58 Commercial & Residential Solutions 68 62 203 194 Corporate and other 17 8 53 26 Total $ 237 270 720 722 |
Schedule of Financial Information by Major Product Offering | Automation Solutions sales by major product offering are summarized below. Three Months Ended June 30, Nine Months Ended June 30, 2021 2022 2021 2022 Measurement & Analytical Instrumentation $ 781 785 2,211 2,287 Valves, Actuators & Regulators 880 905 2,522 2,604 Industrial Solutions 593 575 1,656 1,743 Systems & Software 611 607 1,804 1,817 Automation Solutions $ 2,865 2,872 8,193 8,451 |
Schedule of Financial Information By Geographic Area | Sales by geographic destination are summarized below: Three Months Ended June 30, 2021 2022 Automation Solutions Aspen Tech Commercial & Residential Solutions Total Automation Solutions Aspen Tech Commercial & Residential Solutions Total Americas $ 1,269 52 1,190 2,511 1,418 131 1,362 2,911 Asia, Middle East & Africa 997 14 331 1,342 929 50 321 1,300 Europe 599 16 236 851 525 58 219 802 Total $ 2,865 82 1,757 4,704 2,872 239 1,902 5,013 Nine Months Ended June 30, 2021 2022 Automation Solutions Aspen Tech Commercial & Residential Solutions Total Automation Solutions Aspen Tech Commercial & Residential Solutions Total Americas $ 3,561 150 3,290 7,001 3,942 234 3,789 7,965 Asia, Middle East & Africa 2,861 46 944 3,851 2,894 85 981 3,960 Europe 1,771 43 644 2,458 1,615 86 660 2,361 Total $ 8,193 239 4,878 13,310 8,451 405 5,430 14,286 |
Revenue Recognition Contract As
Revenue Recognition Contract Assets (Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Unbilled receivables (contract assets) | $ 1,323 | $ 1,323 | $ 528 |
Customer advances (contract liabilities) | (917) | (917) | (730) |
Net contract liabilities | 406 | 406 | $ (202) |
Revenue recognized, included in beginning contract liability | 63 | 519 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Backlog | 8,500 | 8,500 | |
AspenTech | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Backlog | $ 700 | $ 700 |
Revenue Recognition Performance
Revenue Recognition Performance Obligations (Details) $ in Billions | Jun. 30, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Backlog | $ 8.5 |
AspenTech | |
Revenue from Contract with Customer [Abstract] | |
Backlog | $ 0.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Percentage of backlog recognized as revenue, next 12 months | 80% |
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]: 2023-07-01 | |
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]: 2024-07-01 | |
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) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted Average Number of Shares Outstanding, Basic | 592.8 | 598.2 | 593.6 | 598.7 |
Dilutive shares | 3.4 | 3.9 | 3.3 | 3.6 |
Diluted shares outstanding | 596.2 | 602.1 | 596.9 | 602.3 |
AspenTech | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Stock compensation | $ 15 | $ 15 |
Purchase Price (Details)
Purchase Price (Details) - AspenTech $ / shares in Units, $ in Thousands | May 16, 2022 USD ($) $ / shares shares |
Business Acquisition [Line Items] | |
Shares, Outstanding | shares | 66,662,482 |
Share Price | $ / shares | $ 166.30 |
Purchase price - AspenTech | $ 11,086,000 |
Value of stock-based compensation awards attributable to pre-combination service | 102,000 |
Total purchase consideration | $ 11,188,000 |
Acquisitions And Divestitures S
Acquisitions And Divestitures Schedule of Purchase Price Allocated to Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | May 16, 2022 | Sep. 30, 2021 |
Business Acquisition [Line Items] | |||
Goodwill ($34 expected to be tax-deductible) | $ 14,748 | $ 7,723 | |
Goodwill expected tax deductible amount | $ 34 | ||
AspenTech | |||
Business Acquisition [Line Items] | |||
Cash and equivalents | 274 | ||
Accounts receivable | 61 | ||
Other current assets | 262 | ||
Property, plant and equipment, net | 4 | ||
Goodwill ($34 expected to be tax-deductible) | 7,223 | ||
Other intangible assets | 4,390 | ||
Other assets | 511 | ||
Total assets | 12,725 | ||
Short-term borrowings | 27 | ||
Accounts payable | 8 | ||
Accrued expenses | 113 | ||
Long-term debt | 253 | ||
Deferred tax and other liabilities | 1,136 | ||
Total purchase consideration | $ 11,188 |
Finite & Indefinite Lived Intan
Finite & Indefinite Lived Intangibles (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2022 | May 16, 2022 | |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, weighted average useful life | 10 years | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, weighted average useful life | 15 years | |
Backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, weighted average useful life | 3 years | |
AspenTech | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangibles | $ 4,390 | |
AspenTech | Trade Names | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 430 | |
AspenTech | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangibles | 1,350 | |
AspenTech | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangibles | 2,300 | |
AspenTech | Backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangibles | $ 310 |
Pro Forma Financial Information
Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Business Acquisition, Pro Forma Revenue | $ 5,060 | $ 4,895 | $ 14,683 | $ 13,884 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 964 | $ 614 | $ 2,517 | $ 1,480 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 1.62 | $ 1.02 | $ 4.21 | $ 2.46 |
Acquisitions and Divestitures N
Acquisitions and Divestitures Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | 14 Months Ended | 27 Months Ended | ||||||||
Oct. 01, 2020 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 AUD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | May 16, 2022 USD ($) $ / shares | Sep. 30, 2020 USD ($) | |
Business Acquisition [Line Items] | ||||||||||||||
Cash and equivalents | $ 2,529,000,000 | $ 2,860,000,000 | $ 2,529,000,000 | $ 2,860,000,000 | $ 2,354,000,000 | $ 3,315,000,000 | ||||||||
Net sales | 5,005,000,000 | 4,697,000,000 | 14,269,000,000 | 13,289,000,000 | ||||||||||
Acquisition/divestiture costs | 61,000,000 | 2,000,000 | 97,000,000 | 11,000,000 | ||||||||||
Proceeds from Issuance of Debt | $ 3,000,000,000 | |||||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 483,000,000 | 0 | 483,000,000 | 0 | ||||||||||
Purchase price of businesses, net of cash acquired | 5,615,000,000 | 1,611,000,000 | ||||||||||||
Goodwill | 14,748,000,000 | 14,748,000,000 | 7,723,000,000 | |||||||||||
Goodwill expected tax deductible amount | $ 34,000,000 | |||||||||||||
Gain from periodic distribution from retained subordinated interest in Vertiv (VRT) | 0 | $ 453,000,000 | 0 | 453,000,000 | 0 | |||||||||
Proceeds from subordinated interest | $ 438,000,000 | 438,000,000 | 0 | |||||||||||
AspenTech | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 45% | |||||||||||||
Acquisition-related Costs | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition/divestiture costs | 159,000,000 | |||||||||||||
Interest Expense | 37,000,000 | 56,000,000 | 110,000,000 | |||||||||||
Therm-O-Disc | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
(Loss) on sale of business, net of tax | $ 428,000,000 | |||||||||||||
Disposal Group, Gain (loss) on disposal, net of tax, per diluted share | $ / shares | $ 0.72 | |||||||||||||
InSinkErator [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Revenue | 480,000,000 | 565,000,000 | ||||||||||||
Disposal Group, Pre-tax earnings | 117,000,000 | $ 143,000,000 | ||||||||||||
RUSSIAN FEDERATION | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (162,000,000) | (162,000,000) | ||||||||||||
(Loss) on sale of business, net of tax | $ (174,000,000) | |||||||||||||
Disposal Group, Gain (loss) on disposal, net of tax, per diluted share | $ / shares | $ (0.29) | |||||||||||||
Percent of Consolidated Sales | 1.50% | |||||||||||||
RUSSIAN FEDERATION | Other Nonoperating Income (Expense) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (130,000,000) | |||||||||||||
RUSSIAN FEDERATION | Operating Income (Loss) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (32,000,000) | |||||||||||||
RUSSIAN FEDERATION | Related restructuring | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (9,000,000) | |||||||||||||
Backlog | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets, weighted average useful life | 3 years | |||||||||||||
Open Systems International Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Deferred revenue adjustment | 3,000,000 | 11,000,000 | ||||||||||||
Open Systems International Inc. [Member] | Backlog | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization of intangible assets | $ 7,000,000 | $ 24,000,000 | ||||||||||||
AspenTech | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Cash contribution to AspenTech shareholders | $ 6,000,000,000 | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 55% | |||||||||||||
Proceeds from Noncontrolling Interests | 5,900,000,000 | |||||||||||||
Adjustments to Additional Paid in Capital, Other | 550,000,000 | |||||||||||||
Approximate per share payout | $ / shares | $ 87.69 | |||||||||||||
Cash and equivalents | $ 168,000,000 | |||||||||||||
Net sales | 173,000,000 | |||||||||||||
Acquisition/divestiture costs | 61,000,000 | 91,000,000 | ||||||||||||
Goodwill | 7,223,000,000 | |||||||||||||
Intangibles | 4,390,000,000 | |||||||||||||
AspenTech | Other Nonoperating Income (Expense) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization of intangible assets | 32,000,000 | 32,000,000 | ||||||||||||
AspenTech | Backlog | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangibles | $ 310,000,000 | |||||||||||||
Heritage AspenTech | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition/divestiture costs | 68,000,000 | |||||||||||||
Automation Solutions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | 5,378,000,000 | 5,378,000,000 | $ 5,508,000,000 | |||||||||||
Automation Solutions [Member] | Open Systems International Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price of businesses, net of cash acquired | $ 1,600,000,000 | |||||||||||||
Annualized sales | 191,000,000 | |||||||||||||
Goodwill | 967,000,000 | |||||||||||||
Goodwill expected tax deductible amount | 0 | |||||||||||||
Intangibles | $ 783,000,000 | |||||||||||||
Intangible assets, weighted average useful life | 11 years | |||||||||||||
Deferred tax liabilities | $ 193,000,000 | |||||||||||||
Climate Technologies [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | $ 719,000,000 | $ 719,000,000 | $ 753,000,000 | |||||||||||
Forecast [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Pretax periodic distribution from retained subordinated interest | $ 75,000,000 | |||||||||||||
Forecast [Member] | InSinkErator [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price | $ 3,000,000,000 | |||||||||||||
Forecast [Member] | Minimum [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Period over which distributions are expected to occur | 2 years | 2 years | ||||||||||||
Forecast [Member] | Maximum [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Period over which distributions are expected to occur | 3 years | 3 years | ||||||||||||
Forecast [Member] | Micromine | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price | $ 623,000,000 | $ 900 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 19 | $ 21 | $ 57 | $ 63 |
Interest cost | 34 | 32 | 102 | 96 |
Expected return on plan assets | (78) | (84) | (234) | (252) |
Net amortization | 23 | 35 | 69 | 105 |
Total | $ (2) | $ 4 | $ (6) | $ 12 |
Other Deductions, Net (Schedule
Other Deductions, Net (Schedule Of Other Deductions, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other deductions, net [Line Items] | ||||
Amortization of intangibles intellectual property and customer relationships | $ 98 | $ 71 | $ 223 | $ 223 |
Restructuring costs | 31 | 28 | 50 | 111 |
Acquisition/divestiture costs | 61 | 2 | 97 | 11 |
Foreign currency transaction gain (loss) | 13 | (1) | 41 | (7) |
Investment-related gains & gains from sales of capital assets | 0 | 0 | (15) | (69) |
Russia business exit - excluding restructuring expense | 121 | 0 | 121 | 0 |
Other | (15) | (14) | (61) | (40) |
Other deductions, net | 283 | 88 | 374 | 243 |
Open Systems International Inc. [Member] | Order or Production Backlog | ||||
Other deductions, net [Line Items] | ||||
Amortization of intangible assets | $ 7 | $ 24 | ||
AspenTech | ||||
Other deductions, net [Line Items] | ||||
Acquisition/divestiture costs | 61 | 91 | ||
AspenTech | Other Nonoperating Income (Expense) | ||||
Other deductions, net [Line Items] | ||||
Amortization of intangible assets | $ 32 | $ 32 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | $ 176 | ||||
Restructuring expense | $ 31 | $ 28 | 50 | $ 111 | |
Restructuring utilized/paid | 81 | ||||
Ending restructuring liability | 145 | $ 145 | |||
Total number of employee workforce reductions | 1,400 | ||||
Cost of sales and selling, general, and administrative expenses [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 12 | 4 | $ 26 | 11 | |
Severance and benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 172 | ||||
Restructuring expense | 20 | ||||
Restructuring utilized/paid | 52 | ||||
Ending restructuring liability | 140 | 140 | |||
Other Restructuring [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning restructuring liability | 4 | ||||
Restructuring expense | 30 | ||||
Restructuring utilized/paid | 29 | ||||
Ending restructuring liability | 5 | 5 | |||
Automation Solutions [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 20 | 20 | 33 | 92 | |
AspenTech | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 1 | (2) | 1 | 2 | |
Commercial & Residential Solutions [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 1 | 6 | 6 | 12 | |
Climate Technologies [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | 2 | 4 | 5 | 8 | |
Tools & Home Products [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | (1) | 2 | 1 | 4 | |
Corporate [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense | $ 9 | $ 4 | $ 10 | $ 5 | |
Forecast [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Expected fiscal year restructuring expense | $ 150 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 15 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax [Line Items] | ||||||
Income taxes | $ 243 | $ 151 | $ 659 | $ 431 | ||
Effective income tax rate | 20% | 19% | 21% | 21% | ||
Favorable net discrete items, percentage impact | 2% | 3% | 2% | 1% | ||
Unfavorable discrete items, percentage impact | 1% | |||||
Payroll tax deferral from CARES Act through December 2020 | $ 73 | |||||
Payroll Taxes Paid | $ 37 |
Other Financial Information (In
Other Financial Information (Inventories) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 681 | $ 616 |
Raw materials and work in process | 1,638 | 1,434 |
Total | $ 2,319 | $ 2,050 |
Other Financial Information (PP
Other Financial Information (PPE) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, at cost | $ 8,824 | $ 9,427 |
Less: Accumulated depreciation | 5,465 | 5,689 |
Total | $ 3,359 | $ 3,738 |
Other Financial Information (Go
Other Financial Information (Goodwill) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 14,748 | $ 7,723 |
Automation Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 5,378 | 5,508 |
AspenTech | ||
Goodwill [Line Items] | ||
Goodwill | 8,266 | 1,044 |
Commercial & Residential Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,104 | 1,171 |
Climate Technologies [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 719 | 753 |
Tools & Home Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 385 | $ 418 |
Other Financial Information (_2
Other Financial Information (Intangibles) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 10,215 | $ 5,911 |
Less: Accumulated amortization | 3,285 | 3,034 |
Net carrying amount | 6,930 | 2,877 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount | $ 3,614 | $ 1,495 |
Other Financial Data (Component
Other Financial Data (Components of Depreciation and Amortization) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Depreciation expense | $ 117 | $ 123 | $ 366 | $ 369 |
Amortization of intangibles (includes $31, $14, $59, and $42 reported in Cost of Sales, respectively) | 129 | 86 | 282 | 266 |
Amortization of capitalized software | 24 | 28 | 74 | 85 |
Depreciation and amortization | 270 | 237 | 722 | 720 |
Amortization of intangibles in Cost of Sales | 31 | 14 | 59 | 42 |
Amortization of Intangibles - Related Restructuring | 5 | 5 | ||
Open Systems International Inc. [Member] | Order or Production Backlog | ||||
Amortization of intangible assets | $ 7 | $ 24 | ||
Cost of Sales [Member] | AspenTech | ||||
Amortization of intangible assets | $ 49 | $ 49 |
Other Financial Information (Ot
Other Financial Information (Other Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Pension assets | $ 1,083 | $ 1,015 |
Operating lease right-of-use assets | 531 | 558 |
Unbilled receivables (contract assets) | 475 | 0 |
Deferred income taxes | 98 | 115 |
Asbestos-related insurance receivables | $ 87 | $ 95 |
Other Financial Information (Ac
Other Financial Information (Accrued Expenses) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Customer advances (contract liabilities) | $ 886 | $ 730 |
Employee compensation | $ 574 | 690 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | |
Operating lease liabilities (current) | $ 154 | 155 |
Product warranty | $ 119 | $ 146 |
Other Financial Information (_3
Other Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Other Liabilities [Abstract] | ||
Deferred income taxes | $ 1,736 | $ 711 |
Pension and postretirement liabilities | 656 | 676 |
Operating lease liabilities (noncurrent) | 384 | 413 |
Asbestos litigation | $ 230 | $ 256 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Debt | $ 3,000 | ||
Change in Commercial Paper | $ 2,400 | $ 2,400 | |
AspenTech | |||
Debt Instrument [Line Items] | |||
Cash contribution to AspenTech shareholders | 6,000 | ||
Long-term Debt | $ 250 | $ 250 | |
2.625 Percent Notes Due December 2021 | |||
Debt Instrument [Line Items] | |||
Notes interest rate, percentage | 2.625% | 2.625% | |
Repayments of Debt | $ 500 | ||
2.0 Percent Notes due December 2028 | |||
Debt Instrument [Line Items] | |||
Notes interest rate, percentage | 2% | 2% | |
Proceeds from Issuance of Debt | $ 1,000 | ||
2.2 Percent Notes due December 2031 | |||
Debt Instrument [Line Items] | |||
Notes interest rate, percentage | 2.20% | 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% | 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 | 9 Months Ended | |||
Jun. 30, 2022 USD ($) lb | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) lb | Jun. 30, 2021 USD ($) | Sep. 30, 2019 EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | $ 70 | $ 24 | $ 147 | $ 64 | |
Other Comprehensive Income (Loss), Total | 64 | 15 | 181 | 44 | |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 5 | 13 | 18 | 24 | |
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 | (32) | 8 | (9) | 34 | |
Foreign Exchange Contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency hedge positions | 2,100 | 2,100 | |||
Foreign Exchange Contract [Member] | Other deductions, net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 56 | 8 | 108 | 33 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | 10 | 3 | 21 | 5 | |
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 | 15 | 1 | 32 | 28 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified to earnings | (1) | 0 | 0 | 2 | |
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 | (3) | 0 | (5) | 3 | |
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 | 84 | $ 6 | 163 | $ (21) | |
All Commodity Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of commodities hedged | $ 170 | $ 170 | |||
Copper and Aluminum [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Weight in pounds of copper and aluminum commodity hedges | lb | 45 | 45 | |||
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, 2022 USD ($) |
Derivatives, Fair Value [Line Items] | |
Fair value of long-term debt compared with carrying value | $ (816) |
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 | $ 8,100 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | 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 | $ 16,287 | $ 9,339 | 16,287 | $ 9,339 | |
Accumulated other comprehensive income (loss) | (1,152) | (1,307) | (1,152) | (1,307) | $ (872) |
Accumulated other comprehensive income (loss) | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (957) | (1,322) | (872) | (1,577) | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||||
Ending balance | (1,152) | (1,307) | (1,152) | (1,307) | |
Foreign currency translation [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (760) | (542) | (629) | (711) | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||||
Other comprehensive income (loss), foreign currency translation, net of tax of $(20), $(1), $(38) and $5, respectively | (186) | (6) | (317) | 163 | |
Ending balance | (946) | (548) | (946) | (548) | |
Pension and post retirement [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (223) | (810) | (259) | (864) | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||||
Amortization of deferred actuarial losses into earnings, net of tax of $(5), $(8), $(15) and $(24), respectively | 18 | 27 | 54 | 81 | |
Ending balance | (205) | (783) | (205) | (783) | |
Cash Flow Hedges [Member] | |||||
Accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | 26 | 30 | 16 | (2) | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||||
Deferral of gains (losses) arising during the period, net of tax of $5, $(2), $(4) and $(15), respectively | (15) | 7 | 14 | 50 | |
Reclassification of realized gains (losses) to sales and cost of sales, net of tax of $4, $3, $10 and $7, respectively | (12) | (13) | (31) | (24) | |
Ending balance | $ (1) | $ 24 | $ (1) | $ 24 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation, tax | $ (20) | $ (1) | $ (38) | $ 5 |
Amortization of deferred actuarial losses, tax | (5) | (8) | (15) | (24) |
Gains (losses) deferred during the period, tax | 5 | (2) | (4) | (15) |
Reclassification of (gains) losses to sales and cost of sales, tax | $ 4 | $ 3 | $ 10 | $ 7 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 5,005 | $ 4,697 | $ 14,269 | $ 13,289 | |
Earnings | 1,195 | 784 | 3,181 | 2,084 | |
Gain from periodic distribution from retained subordinated interest in Vertiv (VRT) | 0 | $ 453 | 0 | 453 | 0 |
Gain (loss) on sale of business | 483 | 0 | 483 | 0 | |
Interest expense | (50) | (37) | (140) | (115) | |
Operating Segments [Member] | Automation Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,872 | 2,865 | 8,451 | 8,193 | |
Earnings | 530 | 519 | 1,618 | 1,354 | |
Operating Segments [Member] | AspenTech | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 239 | 82 | 405 | 239 | |
Earnings | 57 | 2 | 51 | (1) | |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,902 | 1,757 | 5,430 | 4,878 | |
Earnings | 407 | 375 | 1,071 | 1,042 | |
Operating Segments [Member] | Climate Technologies [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,380 | 1,268 | 3,884 | 3,459 | |
Earnings | 300 | 274 | 754 | 731 | |
Operating Segments [Member] | Tools & Home Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 522 | 489 | 1,546 | 1,419 | |
Earnings | 107 | 101 | 317 | 311 | |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Stock compensation | (16) | (66) | (107) | (191) | |
Unallocated pension and postretirement costs | 25 | 24 | 76 | 71 | |
Gain from periodic distribution from retained subordinated interest in Vertiv (VRT) | 0 | 0 | 453 | 0 | |
Gain (loss) on sale of business | 483 | 0 | 483 | 0 | |
Interest expense | (50) | (37) | (140) | (115) | |
Corporate and other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Earnings | (241) | (33) | (324) | (76) | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (8) | $ (7) | $ (17) | $ (21) |
Business Segments Narrative (De
Business Segments Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Gain (loss) on sale of business | $ 483 | $ 0 | $ 483 | $ 0 |
Acquisition/divestiture costs | 61 | $ 2 | 97 | $ 11 |
RUSSIAN FEDERATION | ||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) on sale of business | $ (162) | $ (162) |
Business Segments Product Line
Business Segments Product Line Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,005 | $ 4,697 | $ 14,269 | $ 13,289 |
Automation Solutions [Member] | Measurement & Analytical Instrumentation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 785 | 781 | 2,287 | 2,211 |
Automation Solutions [Member] | Valves, Actuators & Regulators [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 905 | 880 | 2,604 | 2,522 |
Automation Solutions [Member] | Industrial Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 575 | 593 | 1,743 | 1,656 |
Automation Solutions [Member] | Systems & Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 607 | 611 | 1,817 | 1,804 |
Operating Segments [Member] | Automation Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,872 | $ 2,865 | $ 8,451 | $ 8,193 |
Business Segment Information -
Business Segment Information - Depreciation & Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 270 | $ 237 | $ 722 | $ 720 |
Corporate, non-segment [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 8 | 17 | 26 | 53 |
Operating Segments [Member] | Automation Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 127 | 128 | 383 | 393 |
Operating Segments [Member] | AspenTech | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 73 | 24 | 119 | 71 |
Operating Segments [Member] | Commercial & Residential Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 62 | 68 | 194 | 203 |
Operating Segments [Member] | Climate Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 43 | 48 | 136 | 144 |
Operating Segments [Member] | Tools & Home Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 19 | $ 20 | $ 58 | $ 59 |
Business Segments Geographic In
Business Segments Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,005 | $ 4,697 | $ 14,269 | $ 13,289 |
Reportable Geographical Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5,013 | 4,704 | 14,286 | 13,310 |
Reportable Geographical Components [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,911 | 2,511 | 7,965 | 7,001 |
Reportable Geographical Components [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,300 | 1,342 | 3,960 | 3,851 |
Reportable Geographical Components [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 802 | 851 | 2,361 | 2,458 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,872 | 2,865 | 8,451 | 8,193 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,418 | 1,269 | 3,942 | 3,561 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 929 | 997 | 2,894 | 2,861 |
Reportable Geographical Components [Member] | Automation Solutions [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 525 | 599 | 1,615 | 1,771 |
Reportable Geographical Components [Member] | AspenTech | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 239 | 82 | 405 | 239 |
Reportable Geographical Components [Member] | AspenTech | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 131 | 52 | 234 | 150 |
Reportable Geographical Components [Member] | AspenTech | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 50 | 14 | 85 | 46 |
Reportable Geographical Components [Member] | AspenTech | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 58 | 16 | 86 | 43 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,902 | 1,757 | 5,430 | 4,878 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,362 | 1,190 | 3,789 | 3,290 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Asia, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 321 | 331 | 981 | 944 |
Reportable Geographical Components [Member] | Commercial & Residential Solutions [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 219 | $ 236 | $ 660 | $ 644 |