| CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 9 Months Ended
Jun. 30, 2009 | 9 Months Ended
Jun. 30, 2008 |
| Net sales | $5,091 | $6,568 | $15,593 | $18,111 |
| Costs and expenses: | ||||
| Cost of sales | 3,253 | 4,155 | 9,922 | 11,446 |
| Selling, general and administrative expenses | 1,089 | 1,321 | 3,401 | 3,757 |
| Other deductions, net | 141 | 100 | 353 | 170 |
| Interest expense (net of interest income of $3, $15, $19 and $41, respectively) | 64 | 46 | 157 | 147 |
| Earnings from continuing operations before income taxes | 544 | 946 | 1,760 | 2,591 |
| Income taxes | 157 | 299 | 542 | 827 |
| Earnings from continuing operations | 387 | 647 | 1,218 | 1,764 |
| Discontinued operations, net of tax | 0 | (35) | 0 | (40) |
| Net earnings | $387 | $612 | $1,218 | $1,724 |
| Basic earnings per common share: | ||||
| Earnings from continuing operations | 0.52 | 0.83 | 1.61 | 2.25 |
| Discontinued operations | $0 | -0.04 | $0 | -0.05 |
| Basic earnings per common share | 0.52 | 0.79 | 1.61 | 2.2 |
| Diluted earnings per common share: | ||||
| Earnings from continuing operations | 0.51 | 0.82 | 1.6 | 2.23 |
| Discontinued operations | $0 | -0.04 | $0 | -0.05 |
| Diluted earnings per common share | 0.51 | 0.78 | 1.6 | 2.18 |
| Cash dividends per common share | 0.33 | 0.3 | 0.99 | 0.9 |
| CONSOLIDATED STATEMENTS OF EARNINGS (Parenthetical) (USD $) | ||||
| In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 9 Months Ended
Jun. 30, 2009 | 9 Months Ended
Jun. 30, 2008 |
| Consolidated Statements of Earnings (Parenthetical) [Abstract] | ||||
| Interest income | $3 | $15 | $19 | $41 |
| CONSOLIDATED BALANCE SHEETS (USD $) | ||
| In Millions | Jun. 30, 2009
| Sep. 30, 2008
|
| Current assets | ||
| Cash and equivalents | $1,382 | $1,777 |
| Receivables, less allowances of $92 and $90, respectively | 3,720 | 4,618 |
| Inventories | 2,062 | 2,348 |
| Other current assets | 554 | 588 |
| Total current assets | 7,718 | 9,331 |
| Property, plant and equipment, net | 3,475 | 3,507 |
| Other assets | ||
| Goodwill | 6,976 | 6,562 |
| Other | 2,155 | 1,640 |
| Total other assets | 9,131 | 8,202 |
| Assets, Total | 20,324 | 21,040 |
| Current liabilities | ||
| Short-term borrowings and current maturities of long-term debt | 837 | 1,221 |
| Accounts payable | 1,824 | 2,699 |
| Accrued expenses | 2,308 | 2,480 |
| Income taxes | 24 | 173 |
| Total current liabilities | 4,993 | 6,573 |
| Long-term debt | 4,464 | 3,297 |
| Other liabilities | 2,207 | 2,057 |
| Stockholders' equity | ||
| Preferred stock of $2.50 par value per share Authorized 5.4 shares; issued - none | 0 | 0 |
| Common stock of $0.50 par value per share Authorized 1,200.0 shares; issued 953.4 shares; outstanding 751.5 shares and 771.2 shares, respectively | 477 | 477 |
| Additional paid-in capital | 152 | 146 |
| Retained earnings | 14,471 | 14,002 |
| Accumulated other comprehensive income | (133) | 141 |
| Cost of common stock in treasury, 201.9 shares and 182.2 shares, respectively | (6,307) | (5,653) |
| Total stockholders' equity | 8,660 | 9,113 |
| Total liabilities and stockholders' equity | $20,324 | $21,040 |
| CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | ||
| In Millions, unless otherwise specified | Jun. 30, 2009
| Sep. 30, 2008
|
| Consolidated Balance Sheets (Parenthetical) [Abstract] | ||
| Allowance for Doubtful Accounts Receivable, Current | $92 | $90 |
| Preferred Stock, Par or Stated Value Per Share | 2.5 | 2.5 |
| Preferred Stock, Shares Authorized | 5.4 | 5.4 |
| Preferred Stock, Shares Issued | 0 | 0 |
| Common Stock, Par or Stated Value Per Share | 0.5 | 0.5 |
| Common Stock, Shares Authorized | 1,200 | 1,200 |
| Common Stock, Shares Issued | 953.4 | 953.4 |
| Common Stock, Shares Outstanding | 751.5 | 771.2 |
| Treasury Stock, Shares | 201.9 | 182.2 |
| CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
| In Millions | 9 Months Ended
Jun. 30, 2009 | 9 Months Ended
Jun. 30, 2008 |
| Operating activities | ||
| Net earnings | $1,218 | $1,724 |
| Adjustments to reconcile net earnings to net cash by operating activities: | ||
| Depreciation and amortization | 542 | 530 |
| Changes in operating working capital | 69 | (346) |
| Pension funding | (263) | (99) |
| Pension deferred tax benefit | 130 | 47 |
| Other | 38 | 142 |
| Net cash provided by operating activities | 1,734 | 1,998 |
| Investing activities | ||
| Capital expenditures | (388) | (461) |
| Purchases of businesses, net of cash and equivalents acquired | (735) | (412) |
| Other | 18 | 142 |
| Net cash used in investing activities | (1,105) | (731) |
| Financing activities | ||
| Net increase in short-term borrowings | 40 | 774 |
| Proceeds from long-term debt | 1,254 | 400 |
| Principal payments on long-term debt | (680) | (10) |
| Dividends paid | (749) | (708) |
| Purchases of treasury stock | (718) | (727) |
| Other | (94) | (45) |
| Net cash used in financing activities | (947) | (316) |
| Effect of exchange rate changes on cash and equivalents | (77) | 98 |
| Increase (decrease) in cash and equivalents | (395) | 1,049 |
| Beginning cash and equivalents | 1,777 | 1,008 |
| Ending cash and equivalents | 1,382 | 2,057 |
| Changes in operating working capital | ||
| Receivables | 839 | (197) |
| Inventories | 328 | (205) |
| Other current assets | 16 | (1) |
| Accounts payable | (800) | 25 |
| Accrued expenses | (148) | 28 |
| Income taxes | (166) | 4 |
| Changes in operating working capital | $69 | ($346) |
| Basis of Presentation | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation | 1. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for a fair presentation of the results for the interim periods presented.These adjustments consist of normal recurring accruals.The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all the disclosures required for annual financial statements presented in conformity with U.S. generally accepted accounting principles.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, 2008.Certain prior year amounts have been reclassified to conform to the current year presentation.The Company has evaluated subsequent events through August 5, 2009. |
| Weighted Average Common Shares | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Weighted Average Common Shares [Abstract] | |
| Weighted Average Common Shares | 2. Reconciliations of weighted average common shares for basic and diluted earnings per common share follow (shares in millions): ThreeMonthsEnded NineMonthsEnded June30, June30, 2008 2009 2008 2009 Basic shares outstanding 778.6 749.6 782.8 755.0 Dilutive shares 9.2 5.1 9.3 4.8 Diluted shares outstanding 787.8 754.7 792.1 759.8 |
| Comprehensive Income (loss) | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Comprehensive Income (loss) [Abstract] | |
| Comprehensive Income (loss) | 3. Comprehensive income (loss), net of applicable income taxes, is summarized as follows (dollars in millions): ThreeMonthsEnded NineMonthsEnded June30, June30, 2008 2009 2008 2009 Net earnings $ 612 387 1,724 1,218 Foreign currency translation 124 237 442 (280 ) Cash flow hedges and other (6 ) 60 (1 ) 6 $ 730 684 2,165 944 The change in foreign currency translation during the third quarter of 2009 is primarily due to the weakening of the U.S. dollar and the change during the nine month period ended June 30, 2009 is due to the stronger U.S. dollar. |
| Pension Expense | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Pension Expense [Abstract] | |
| Pension Expense | 4. Net periodic pension expense is summarized as follows (dollars in millions): ThreeMonthsEnded June30, NineMonthsEnded June30, 2008 2009 2008 2009 Service cost $ 18 16 54 51 Interest cost 52 51 156 163 Expected return on plan assets (68 ) (67 ) (205 ) (210 ) Net amortization 24 20 72 61 $ 26 20 77 65 Net postretirement plan expense is summarized as follows (dollars in millions): ThreeMonthsEnded June30, NineMonthsEnded June30, 2008 2009 2008 2009 Service cost $ 2 1 4 3 Interest cost 6 8 20 22 Net amortization 7 1 22 5 $ 15 10 46 30 |
| Other Deductions, Net | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Other Deductions, Net [Abstract] | |
| Other Deductions, net | 5. Other deductions, net are summarized as follows (dollars in millions): ThreeMonthsEnded June30, NineMonthsEnded June30, 2008 2009 2008 2009 Otherdeductions,net Rationalization of operations $ 24 83 49 190 Amortization of intangibles 20 31 59 78 Other 56 33 126 120 Gains - (6 ) (64 ) (35 ) $ 100 141 170 353 Other deductions, net increased for the three and nine months ended June 30, 2009, primarily due to higher rationalization costs (see Note 6 for further details) and higher amortization expense on acquired intangible assets. During the nine months ended June 30, 2009, the Company received $41 million from the sale of an asset and recognized a pretax gain of $25 million.During the nine months ended June 30, 2008, the Company received $54 million and recognized a pretax gain of $39 million on the sale of its equity investment in Industrial Motion Control Holdings and also recorded a pretax gain of $18 million related to the sale of a facility. |
| Rationalization of Operations | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Rationalization of Operations [Abstract] | |
| Rationalization of Operations | 6. The change in the liability for rationalization of operations during the nine months ended June 30, 2009, follows (dollars in millions): September30, June 30, 2008 Expense Paid/Utilized 2009 Severance and benefits $ 33 149 99 83 Lease/contract terminations 5 4 4 5 Fixed asset write-downs - 7 7 - Vacant facility and other shutdown costs 1 10 9 2 Start-up and moving costs 1 20 19 2 $ 40 190 138 92 Rationalization of operations expense summarized by business segment follows (dollars in millions): ThreeMonthsEnded June 30, NineMonthsEnded June 30, 2008 2009 2008 2009 Process Management $ 4 18 8 26 Industrial Automation 5 13 11 25 Network Power 8 32 16 82 Climate Technologies 5 14 10 36 Appliance and Tools 2 6 4 21 $ 24 83 49 190 Rationalization of operations expense reflects costs associated with the Companys efforts to continuously improve operational efficiency and expand globally, in order to remain competitive on a worldwide basis.These expenses result from numerous individual actions implemented across the Companys various operating divisions on an ongoing basis.Rationalization of operations includes costs for moving facilities, starting up plants after relocation or business expansion, exiting product lines, curtailing/downsizing operations because of changing economic conditions and other costs resulting from asset redeployment decisions. Given the difficult environment, the Company expects to incur full year costs of approximately $280 million to $300 million for actions to rationalize its businesses to the level appropriate for current economic conditions, and to improve the cost structure in preparation for the ultimate recovery.This total includes the $190 million for the nine months shown above, as well as costs to complete actions initiated before the end of the third quarter and actions anticipated to be approved and initiated during the remainder of the year.During the nine months ended June 30, 2009, the Companys divisions have taken action in numerous locations worldwide to reduce force count by 20,000 positions, with approximately one-half of those from restructuring actions and the remainder through layoffs and attrition.Additionally, the Company took action to exit and consolidate approximately 20 production, distribution or office facilities. Noteworthy rati |
| Other Financial Information | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Other Financial Information [Abstract] | |
| Other Financial Information | 7. Other Financial Information(dollars in millions): September30, June 30, 2008 2009 Inventories Finished products $ 884 799 Raw materials and work in process 1,464 1,263 $ 2,348 2,062 Property, plant and equipment, net Property, plant and equipment, at cost $ 8,691 8,783 Less accumulated depreciation 5,184 5,308 $ 3,507 3,475 Goodwill Process Management $ 2,043 2,227 Industrial Automation 1,107 1,307 Network Power 2,432 2,387 Climate Technologies 412 473 Appliance and Tools 568 582 $ 6,562 6,976 Inventories of companies acquired in fiscal 2009 totaled approximately $84 million. Changes in the goodwill balances since September 30, 2008, are primarily due to additions from acquisitions, particularly in the Process Management ($223 million) and Industrial Automation ($219 million) segments, as well as foreign currency translation.Because valuations of certain assets are in-process, purchase price allocations for acquisitions are subject to refinement. Other assets, other Intellectual property and customer relationships $ 627 943 Pension plans 436 659 Capitalized software 192 205 Other 385 348 $ 1,640 2,155 Intellectual property and customer relationships of companies acquired in fiscal 2009 totaled $370 million, primarily in the Process Management and Industrial Automation segments.The increase in the pension plans asset primarily reflects contributions net of pension expense for the period. Product warranty liability $ 204 182 Other liabilities Deferred income taxes $ 533 713 Postretirement plans, excluding current portion 417 436 Retirement plans 325 326 Minority interest 188 150 Other 594 582 $ 2,057 2,207 |
| Segment Reporting | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Segment Reporting [Abstract] | |
| Segment Reporting | 8. Summarized information about the Companys operations by business segment follows (dollars in millions): Sales Earnings ThreemonthsendedJune 30, 2008 2009 2008 2009 Process Management $ 1,731 1,505 346 222 Industrial Automation 1,271 813 186 41 Network Power 1,672 1,306 212 135 Climate Technologies 1,087 859 169 131 Appliance and Tools 998 771 138 108 6,759 5,254 1,051 637 Differences in accounting methods 62 48 Corporate and other (121 ) (77 ) Eliminations/Interest (191 ) (163 ) (46 ) (64 ) $ 6,568 5,091 946 544 Intersegment sales of the Appliance and Tools segment for the three months ended June 30, 2009 and 2008, respectively, were $146 million and $162 million.The change in Corporate and other for 2009 reflects lower stock compensation expense of $12 million, lower commodity mark-to-market losses of $10 million and higher one-time gains in fiscal 2009 of $6 million. Sales Earnings NinemonthsendedJune 30, 2008 2009 2008 2009 Process Management $ 4,764 4,588 890 782 Industrial Automation 3,572 2,876 528 291 Network Power 4,598 4,021 579 389 Climate Technologies 2,809 2,284 413 250 Appliance and Tools 2,886 2,269 409 248 18,629 16,038 2,819 1,960 Differences in accounting methods 172 145 Corporate and other (253 ) (188 ) Eliminations/Interest (518 ) (445 ) (147 ) (157 ) $ 18,111 15,593 2,591 1,760 Intersegment sales of the Appliance and Tools segment for the nine months ended June 30, 2009 and 2008, respectively, were $380 million and $439 million.Compared to the prior year, Corporate and other for fiscal 2009 primarily reflects lower stock compensation expense of $66 million. |
| Financial Instruments | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Financial Instruments [Abstract] | |
| Financial Instruments | 9. Following is a discussion regarding the Companys use of financial instruments. Hedging Activities The Companys derivative instruments are accounted for under FAS 133, Accounting for Derivative Instruments and Hedging Activities, and, accordingly, are recognized at fair value.In the normal course of business, the Company is exposed to changes in interest rates, foreign currency exchange rates and commodity prices due to its worldwide presence and diverse business profile.As part of the Companys hedging strategy, derivative instruments are selectively used to manage these risks and minimize their impact.Forward exchange and option derivatives are utilized to hedge foreign currency exposures impacting sales or cost of sales transactions, firm commitments and the fair value of assets and liabilities, while swap and option contracts are used to minimize the effect of commodity price fluctuations on cost of sales.Emersons foreign currency hedges primarily relate to transactions denominated in euros and Mexican pesos, and to a lesser extent Canadian dollars and Swedish kroner.The notional value of foreign currency hedge positions totaled approximately $1,942 million as of June 30, 2009.Primary commodity exposures are price fluctuations on forecasted purchases of copper and aluminum, and related products, of which the Company had approximately 51 million pounds hedged as of June 30, 2009.The Company does not hold derivatives for trading or speculative purposes.Effective January 1, 2009, the Company adopted the disclosure provisions of FAS No. 161, Disclosures about Derivative Instruments and Hedging Activities, which expanded disclosures regarding derivatives use, including hedging objectives and strategies, fair values, gains and losses and credit-risk-related contingent features. The majority of the Companys derivatives are designated as hedges and qualify for deferral accounting under FAS 133.Cash flow hedges of forecasted transactions minimize the exposure arising from variability in expected future cash flows attributable to a particular risk.The effective portion of gains or losses for cash flow hedges is deferred in accumulated other comprehensive income (a component of stockholders equity) until it is recognized in earnings together with the underlying hedged item.A fully effective hedge will result in no net earnings impact while the derivative is outstanding.Gains and losses arising from the ineffective portion of any hedge are recognized in the income statement immediately.The duration of hedge positions is generally two years or less and amounts currently hedged beyond eighteen months are not significant.Hedging gains and losses deferred as of June 30, 2009 are generally expected to be recognized over the next twelve months as the underlying forecasted transactions occur.However, the amounts ultimately recognized may differ, favorably or unfavorably, from those shown because until the positions are settled they remain subject to ongoing market price fluctuations.Derivatives receiving deferral accounting under FAS 133 are highly effective and hedge ineffectiveness was immaterial during both the three a |
| Acquisitions | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Acquisitions [Abstract] | |
| Acquisitions | 10. In April 2009, the Company acquired Roxar ASA, a leading global supplier of measurement solutions and software for reservoir production optimization, enhanced oil and gas recovery and flow assurance, for approximately $190 million in cash and $222 million in assumed debt.Roxar has annual revenues of approximately $200 million and is reported in the Process Management business segment. In February 2009, the Company acquired Trident Powercraft Private, Limited (Trident Power), a manufacturer and supplier of alternators, generators and other products, for approximately $125 million in cash.Trident has annual revenues of approximately $40 million and is reported in the Industrial Automation business segment. In December 2008, the Company acquired System Plast S.p.A, a manufacturer of engineered modular belts and custom conveyer components for the bottling, baking, food processing and packaging industries, for approximately $200 million in cash.System Plast has annual revenues of approximately $100 million and is reported in the Industrial Automation business segment. |
| Document Information | |
| 9 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Line Items] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | |||
| In Billions, except Share data | 9 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Mar. 31, 2008
|
| Entity Information [Line Items] | |||
| Entity Registrant Name | EMERSON ELECTRIC CO. | ||
| Entity Central Index Key | 0000032604 | ||
| Current Fiscal Year End Date | --09-30 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | 40.1 | ||
| Entity Listings [Line Items] | |||
| Entity Common Stock, Shares Outstanding | 751,589,725 |
