Emerson Electric (EMR) 10-K 23 Nov 09 2009 FY Annual report Financial data

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Millions, except Per Share data	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Net sales	$20,915	$24,807	$22,131
Costs and expenses:
Cost of sales	13,216	15,668	14,066
Selling, general and administrative expenses	4,532	5,057	4,569
Other deductions, net	530	303	175
Interest expense (net of interest income: 2007, $33; 2008, $56; 2009, $24)	220	188	228
Earnings from continuing operations before income taxes	2,417	3,591	3,093
Income taxes	693	1,137	964
Earnings from continuing operations	1,724	2,454	2,129
Discontinued operations, net of tax	0	(42)	7
Net earnings	$1,724	$2,412	$2,136
Basic earnings per common share:
Earnings from continuing operations	2.29	3.14	2.68
Discontinued operations	$0	-0.05	0.01
Basic earnings per common share	2.29	3.09	2.69
Diluted earnings per common share:
Earnings from continuing operations	2.27	3.11	2.65
Discontinued operations	$0	-0.05	0.01
Diluted earnings per common share	2.27	3.06	2.66

1_CONSOLIDATED STATEMENTS OF EA

CONSOLIDATED STATEMENTS OF EARNINGS (Parenthetical) (USD $)
In Millions	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Consolidated Statements of Earnings (Parenthetical) [Abstract]
Interest income	$24	$56	$33

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Sep. 30, 2009	Sep. 30, 2008
Current assets
Cash and equivalents	$1,560	$1,777
Receivables, less allowances of $90 in 2008 and $93 in 2009	3,623	4,618
Inventories:
Finished products	697	884
Raw materials and work in process	1,158	1,464
Total inventories	1,855	2,348
Other current assets	615	588
Total current assets	7,653	9,331
Property, plant and equipment
Land	219	201
Buildings	1,935	1,737
Machinery and equipment	6,511	6,296
Construction in progress	229	457
Property, plant and equipment, gross	8,894	8,691
Less accumulated depreciation	5,394	5,184
Property, plant and equipment, net	3,500	3,507
Other assets
Goodwill	7,078	6,562
Other	1,532	1,640
Total other assets	8,610	8,202
Assets, Total	19,763	21,040
Current liabilities
Short-term borrowings and current maturities of long-term debt	577	1,221
Accounts payable	1,949	2,699
Accrued expenses	2,378	2,480
Income taxes	52	173
Total current liabilities	4,956	6,573
Long-term debt	3,998	3,297
Other liabilities	2,254	2,057
Stockholders' equity
Preferred stock of $2.50 par value per share Authorized 5,400,000 shares; issued - none	0	0
Common stock of $0.50 par value per share Authorized 1,200,000,000 shares; issued 953,354,012 shares; outstanding 771,216,037 shares in 2008 and 751,872,857 shares in 2009	477	477
Additional paid-in capital	157	146
Retained earnings	14,714	14,002
Accumulated other comprehensive income	(496)	141
Stockholders' equity before treasury stock	14,852	14,766
Less cost of common stock in treasury, 182,137,975 shares in 2008 and 201,481,155 shares in 2009	6,297	5,653
Total stockholders' equity	8,555	9,113
Total liabilities and stockholders' equity	$19,763	$21,040

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Share data	Sep. 30, 2009	Sep. 30, 2008
Consolidated Balance Sheets (Parenthetical) [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$93	$90
Preferred Stock, Par or Stated Value Per Share	2.5	2.5
Preferred Stock, Shares Authorized	5,400,000	5,400,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	0.5	0.5
Common Stock, Shares Authorized	1,200,000,000	1,200,000,000
Common Stock, Shares Issued	953,354,012	953,354,012
Common Stock, Shares Outstanding	751,872,857	771,216,037
Treasury Stock, Shares	201,481,155	182,137,975

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)
In Millions	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Common Stock [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Comprehensive Income [Member]	Total
Stockholders' Equity, Beginning Balance at Sep. 30, 2006	$161	$306	$238	$11,314	($3,865)		$8,154
Net earnings				2,136		2,136	2,136
Cash dividends (per share: 2007, $1.05; 2008, $1.20; 2009, $1.32)				(837)
Purchases					(849)
Issued under stock plans and other					60
Stock plans and other	31
Foreign currency translation		459				459
Pension and postretirement (net of tax of: 2007, $(1); 2008, $51; 2009, $334)		2				2
Cash flow hedges and other (net of tax of: 2007, $29; 2008, $51; 2009, ($29))		(56)				(56)
Adjustment for stock split			239	(77)
Adjustment for stock split	(161)
Adoption of FIN 48				0
Adoption of FAS 158 measurement date provision (net of tax of $7)				0
Adoption of FAS 158 liability provisions (net of tax of $193)		(329)
Stockholders' Equity, Ending Balance at Sep. 30, 2007	31	382	477	12,536	(4,654)	2,541	8,772
Net earnings				2,412		2,412	2,412
Cash dividends (per share: 2007, $1.05; 2008, $1.20; 2009, $1.32)				(940)
Purchases					(1,128)
Issued under stock plans and other					129
Stock plans and other	115
Foreign currency translation		(30)				(30)
Pension and postretirement (net of tax of: 2007, $(1); 2008, $51; 2009, $334)		(144)				(144)
Cash flow hedges and other (net of tax of: 2007, $29; 2008, $51; 2009, ($29))		(67)				(67)
Adjustment for stock split	0		0	0
Adoption of FIN 48				(6)
Adoption of FAS 158 measurement date provision (net of tax of $7)				0
Adoption of FAS 158 liability provisions (net of tax of $193)		0
Stockholders' Equity, Ending Balance at Sep. 30, 2008	146	141	477	14,002	(5,653)	2,171	9,113
Net earnings				1,724		1,724	1,724
Cash dividends (per share: 2007, $1.05; 2008, $1.20; 2009, $1.32)				(998)
Purchases					(695)
Issued under stock plans and other					51
Stock plans and other	11
Foreign currency translation		(104)				(104)
Pension and postretirement (net of tax of: 2007, $(1); 2008, $51; 2009, $334)		(568)				(568)
Cash flow hedges and other (net of tax of: 2007, $29; 2008, $51; 2009, ($29))		35				35
Adjustment for stock split			0	0
Adjustment for stock split	0
Adoption of FIN 48				0
Adoption of FAS 158 measurement date provision (net of tax of $7)				(14)
Adoption of FAS 158 liability provisions (net of tax of $193)		0
Stockholders' Equity, Ending Balance at Sep. 30, 2009	$157	($496)	$477	$14,714	($6,297)	$1,087	$8,555

2_CONSOLIDATED STATEMENTS OF ST

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) (USD $)
In Millions, except Per Share data	10/1/2008 - 9/30/2009	10/1/2007 - 9/30/2008	10/1/2006 - 9/30/2007
Consolidated Statements of Stockholders' Equity (Parentheticals)
Common Stock, Dividends, Per Share, Declared	1.32	1.2	1.05
Tax effect of pension and postretirement			($1)
Tax effect of pension and postretirement	334	51
Tax effect of cash flow hedges and other	(29)	51	29
Tax effect of adoption of FAS 158 liability provisions			193
Tax effect of adoption of FAS 158 measurement date provision	$7

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Operating activities
Net earnings	$1,724	$2,412	$2,136
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	727	707	656
Changes in operating working capital	620	(22)	137
Pension funding	(303)	(135)	(136)
Other	318	331	223
Net cash provided by operating activities	3,086	3,293	3,016
Investing activities
Capital expenditures	(531)	(714)	(681)
Purchases of businesses, net of cash and equivalents acquired	(776)	(561)	(295)
Other	(2)	203	106
Net cash used in investing activities	(1,309)	(1,072)	(870)
Financing activities
Net increase (decrease) in short-term borrowings	(684)	521	(800)
Proceeds from long-term debt	1,246	400	496
Principal payments on long-term debt	(678)	(261)	(5)
Dividends paid	(998)	(940)	(837)
Purchases of treasury stock	(718)	(1,120)	(853)
Other	(116)	(54)	5
Net cash used in financing activities	(1,948)	(1,454)	(1,994)
Effect of exchange rate changes on cash and equivalents	(46)	2	46
Increase (decrease) in cash and equivalents	(217)	769	198
Beginning cash and equivalents	1,777	1,008	810
Ending cash and equivalents	1,560	1,777	1,008
Changes in operating working capital
Receivables	1,011	(293)	(349)
Inventories	580	(90)	96
Other current assets	42	19	36
Accounts payable	(709)	199	104
Accrued expenses	(94)	154	200
Income taxes	(210)	(11)	50
Changes in operating working capital	$620	($22)	$137

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Sep. 30, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(1)Summary of Significant Accounting Policies FINANCIAL STATEMENT PRESENTATION The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect reported amounts and related disclosures, and actual results could differ from those estimates. The Company has evaluated subsequent events through November 23, 2009. Certain prior year amounts have been reclassified to conform to the current year presentation. Operating results of the European appliance motor and pump business are classified as discontinued operations for 2008 and earlier periods, while the operating results of Brooks Instruments are classified as discontinued operations for 2008 only. Emerson adopted the FASB Accounting Standards Codification (ASC) in the fourth quarter of fiscal 2009. The Codification reorganized and consolidated current U.S. GAAP topically and is now the single authoritative source for GAAP. The adoption had no effect on the Companys operations. PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of the Company and its controlled affiliates. Intercompany transactions, profits and balances are eliminated in consolidation. Investments of 20 percent to 50 percent of the voting shares of other entities are accounted for by the equity method. Investments in publicly-traded companies of less than 20 percent are carried at fair value, with changes in fair value reflected in accumulated other comprehensive income. Investments in nonpublicly-traded companies of less than 20 percent are carried at cost. FOREIGN CURRENCY TRANSLATION The functional currency for most of the Companys non-U.S. subsidiaries is the local currency. Adjustments resulting from translating local currency financial statements into U.S. dollars are reflected in accumulated other comprehensive income. FAIR VALUE MEASUREMENTS Effective October 1, 2008, the Company adopted the recognition and disclosure provisions of FAS No. 157, Fair Value Measurements (now part of ASC 820, Fair Value Measurements and Disclosures), which established a formal hierarchy and framework for measuring fair value, and expanded disclosure about fair value measurements and the reliability of valuation inputs. Under ASC 820, measurement assumes the transaction to sell an asset or transfer a liability occurs in the principal or at least the most advantageous market for that asset or liability. Within the hierarchy, Level 1 instruments use observable market prices for the identical item in active markets and have the most reliable valuations. Level 2 instruments are valued through broker/dealer quotation or through market-observable inputs for similar items in active markets, including forward and spot prices, interest rates and volatilities. Level 3 instruments are valued using inputs not observable in an active market, such as company-developed future cash flow estimates, and are considered the least reliable. Valuations for all of Emersons financial instruments fall within Level 2. The fair value of the Companys long-term debt is estimated using curre

Weighted Average Common Shares

Weighted Average Common Shares
	12 Months Ended Sep. 30, 2009 USD / shares
Weighted Average Common Shares [Abstract]
Weighted Average Common Shares	(2)Weighted Average Common Shares Basic earnings per common share consider only the weighted average of common shares outstanding while diluted earnings per common share consider the dilutive effects of stock options and incentive shares. Options to purchase approximately 7.6 million, 3.6 million and 1.1 million shares of common stock were excluded from the computation of diluted earnings per share in 2009, 2008 and 2007, respectively, because their effect would have been antidilutive. Reconciliations of weighted average shares for basic and diluted earnings per common share follow: (SHARES IN MILLIONS) 2007 2008 2009 Basic shares outstanding 793.8 780.3 753.7 Dilutive shares 10.1 9.1 5.0 Diluted shares outstanding 803.9 789.4 758.7

Acquisitions and Divestitures

Acquisitions and Divestitures
	12 Months Ended Sep. 30, 2009 USD / shares
Acquisitions and Divestitures [Abstract]
Acquisitions and Divestitures	(3)Acquisitions and Divestitures The Company acquired Roxar ASA during the third quarter of 2009, Trident Powercraft Private Limited during the second quarter of 2009 and System Plast S.p.A. during the first quarter of 2009. Roxar is a leading global supplier of measurement solutions and software for reservoir production optimization, enhanced oil and gas recovery and flow assurance and is included in the Process Management segment. Trident Power is a manufacturer and supplier of power generating alternators and other products and is included in the Industrial Automation segment. System Plast is a manufacturer of engineered modular belts and custom conveyer components for the food processing and packaging industries and is included in the Industrial Automation segment. In addition to Roxar, Trident Power and System Plast, the Company acquired other smaller businesses during 2009, mainly in the Climate Technologies, Appliance and Tools and Process Management segments. Total cash paid for all businesses was approximately $776 (net of cash acquired of approximately $31 and debt assumed of approximately $230) and their annualized sales were approximately $530. Goodwill of $541 ($34 of which is expected to be deductible for tax purposes) and identifiable intangible assets (primarily customer relationships and patents and technology) of $365, which have a weighted-average life of 12 years, were recognized from these transactions in 2009. Because valuations of acquired assets and liabilities are in-process, purchase price allocations for fiscal year 2009 acquisitions are subject to refinement. During the first quarter of fiscal 2010, the Company entered into a definitive agreement and commenced a tender offer to acquire Avocent Corporation for approximately $1.2 billion in cash. Avocent is a leader in delivering information technology operations management solutions that reduce operating costs, simplify management and increase availability of critical information technology environments via integrated, centralized software. Avocent products complement the Network Power segments power systems, energy management and precision cooling solutions. The transaction is expected to be completed in December 2009 and is subject to acceptance of the tender offer by a majority of Avocent shareholders, customary closing conditions and regulatory approvals. The Company acquired Motorola Inc.s Embedded Computing business during the first quarter of 2008. Embedded Computing provides communication platforms and enabling software used by manufacturers of equipment for telecommunications, medical imaging, defense and aerospace, and industrial automation markets and is included in the Network Power segment. In addition to Embedded Computing, the Company acquired several smaller businesses during 2008, mainly in the Process Management and Network Power segments. Total cash paid for these businesses was approximately $561 (net of cash acquired of approximately $2) and their annualized sales were approximately $665. Goodwill of $273 ($214 of which is expected to be deductible for tax purposes) and identifiable intangible assets (primarily technology and custom

Other Deductions, Net

Other Deductions, Net
	12 Months Ended Sep. 30, 2009 USD / shares
Other Deductions, Net [Abstract]
Other Deductions, net	(4)Other Deductions, Net Other deductions, net are summarized as follows: 2007 2008 2009 Rationalization of operations $ 75 92 295 Amortization of intangibles (intellectual property and customer relationships) 63 81 108 Other 111 194 166 Gains, net (74 ) (64 ) (39 ) Total $ 175 303 530 Other is composed of several items that are individually immaterial, including minority interest expense, foreign currency gains and losses, bad debt expense, equity investment income and losses, as well as one-time items such as litigation and disputed matters, insurance recoveries and interest refunds. Other decreased in 2009 primarily because of a $31 impairment charge in 2008 and $27 of lower minority interest expense, partially offset by $30 of incremental losses on foreign currency exchange transactions. Other increased from 2007 to 2008 primarily because of an incremental $12 loss on foreign currency exchange transactions, an approximate $12 charge to write off in-process research and development in connection with the Embedded Computing acquisition and a $31 goodwill impairment charge related to the North American appliance control business due to a slow economic environment for consumer appliance and residential end-markets and a major customers strategy to diversify suppliers and internalize the production of electronic controls. Subsequent to the impairment, these operations were restructured and integrated with the North American appliance motors business. Gains, net for 2009 includes the sale of an asset in which the Company received $41 and recognized a gain of $25 ($17 after-tax). In fiscal 2008, the Company received $54 and recognized a gain of $39 ($20 after-tax) on the sale of an equity investment in Industrial Motion Control Holdings, a manufacturer of motion control components for automation equipment, and also recorded a pretax gain of $18 related to the sale of a facility. Gains, net for 2007 includes a pretax gain of approximately $32 related to the sale of the Companys remaining 4.5 million shares of MKS Instruments and a pretax gain of approximately $24 for payments received under the U.S. Continued Dumping and Subsidy Offset Act.

Rationalization of Operations

Rationalization of Operations
	12 Months Ended Sep. 30, 2009 USD / shares
Rationalization of Operations [Abstract]
Rationalization of Operations	(5)Rationalization of Operations 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. Given the difficult economic environment, the Company incurred costs of $295 in 2009 for actions to rationalize its businesses to the level appropriate for current economic conditions and to improve its cost structure in preparation for the ultimate recovery. Rationalization expenses result from numerous individual actions implemented across the Companys various operating divisions on an ongoing basis and include costs for moving facilities to best-cost locations, starting up plants after relocation or geographic expansion to serve local markets, exiting certain product lines, curtailing/downsizing operations because of changing economic conditions and other costs resulting from asset redeployment decisions. The change in the liability for the rationalization of operations during the years ended September 30 follows. Shutdown costs include severance, benefits, stay bonuses, lease and contract terminations and asset write-downs. In addition to the costs of moving fixed assets, start-up and moving costs include employee training and relocation. Vacant facility costs include security, maintenance, utility and other costs. 2008 EXPENSE PAID / UTILIZED 2009 Severance and benefits $ 33 234 155 112 Lease/contract terminations 5 9 7 7 Fixed asset write-downs 14 14 Vacant facility and other shutdown costs 1 13 12 2 Start-up and moving costs 1 25 25 1 $ 40 295 213 122 2007 EXPENSE PAID / UTILIZED 2008 Severance and benefits $ 28 49 44 33 Lease/contract terminations 8 3 6 5 Fixed asset write-downs 4 4 Vacant facility and other shutdown costs 1 8 8 1 Start-up and moving costs 34 33 1 $ 37 98 95 40 Expense includes $6 and $8 in 2008 and 2007, respectively, related to the European appliance motor and pump business classified as discontinued operations. Rationalization of operations by segment is summarized as follows: 2007 2008 2009 Process Management $ 15 12 55 Industrial Automation 14 19 47 Network Power 23 28 118 Climate Technologies 9 22 48 Appliance and Tools 14 11 27 Total $ 75 92 295 Given ongoing economic conditions, the Company currently expects rationalization expense for 2010 in the range of $125 to $175, including the costs to complete actions initiated before the end of 2009 and actions anticipated to be approved and initiated during 2010. Costs incurred during 2009 included action to exit approximately 25 production, distribution or office facilit

Goodwill and Other Intangibles

Goodwill and Other Intangibles
	12 Months Ended Sep. 30, 2009 USD / shares
Goodwill and Other Intangibles [Abstract]
Goodwill and Other Intangibles	(6)Goodwill and Other Intangibles Acquisitions are accounted for under the purchase method, with substantially all goodwill assigned to the reporting unit that acquires the business. Under the annual impairment test, if a reporting units carrying amount exceeds its estimated fair value, a goodwill impairment is recognized to the extent that the reporting units carrying amount of goodwill exceeds the implied fair value of the goodwill. Fair values of reporting units are estimated using discounted cash flows and market multiples. The change in goodwill by business segment follows. See Notes 3 and 4 for further discussion of changes in goodwill related to acquisitions, divestitures and impairment. PROCESS INDUSTRIAL NETWORK CLIMATE APPLIANCE MANAGEMENT AUTOMATION POWER TECHNOLOGIES AND TOOLS TOTAL Balance, September 30, 2007 $ 1,985 1,070 2,259 420 678 6,412 Acquisitions 87 24 162 273 Divestitures (83 ) (83 ) Impairment (31 ) (31 ) Foreign currency translation and other (29 ) 13 11 (8 ) 4 (9 ) Balance, September 30, 2008 2,043 1,107 2,432 412 568 6,562 Acquisitions 242 204 60 35 541 Divestitures (2 ) (2 ) Impairment Foreign currency translation and other (6 ) (7 ) (13 ) 1 2 (23 ) Balance, September 30, 2009 $ 2,279 1,304 2,417 473 605 7,078 The gross carrying amount and accumulated amortization of identifiable intangible assets by major class follow: GROSS CARRYING AMOUNT ACCUMULATED AMORTIZATION NET CARRYING AMOUNT 2008 2009 2008 2009 2008 2009 Intellectual property andcustomer relationships $ 985 1,392 358 462 627 930 Capitalized software 805 883 613 669 192 214 $ 1,790 2,275 971 1,131 819 1,144 Total intangible asset amortization expense for 2009, 2008 and 2007 was $184, $150 and $131, respectively. Based on intangible asset balances as of September 30, 2009, amortization expense is expected to approximate $196 in 2010, $182 in 2011, $150 in 2012, $108 in 2013 and $85 in 2014.

Financial Instruments

Financial Instruments
	12 Months Ended Sep. 30, 2009 USD / shares
Financial Instruments [Abstract]
Financial Instruments	(7)Financial Instruments HEDGING ACTIVITIES The notional value of foreign currency hedge positions totaled approximately $2.3 billion as of September 30, 2009. Commodity hedges outstanding at year end included a total of approximately 52 million pounds of copper and aluminum. Shown below for the fiscal year ended September 30, 2009 are amounts reclassified from accumulated other comprehensive income into earnings, amounts recognized in other comprehensive income and amounts recognized in earnings for derivatives not receiving deferral accounting. Hedging gains or losses are largely offset by losses or gains on the related underlying exposures. GAIN (LOSS) RECLASSIFIED INTO EARNINGS LOCATION GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME Derivatives Receiving Deferral Accounting Cash Flow Hedges Foreign currency $ (24 ) Sales $ (18 ) Foreign currency (32 ) Cost of sales (40 ) Commodity (96 ) Cost of sales (40 ) $ (152 ) $ (98 ) GAIN (LOSS) RECOGNIZED IN EARNINGS LOCATION Derivatives Not Receiving Deferral Accounting Foreign currency $ (67 ) Other income (deductions) Commodity (11 ) Cost of sales $ (78 ) FAIR VALUE MEASUREMENTS Fair values of derivative contracts outstanding as of September 30, 2009 follow: ASSETS LIABILITIES Derivatives Receiving Deferral Accounting Foreign currency $ 15 (33 ) Commodity $ 30 (4 ) Derivatives Not Receiving Deferral Accounting Foreign currency $ 6 (7 ) Commodity $ 2 (2 ) The Company held $4 of collateral posted by counterparties in the normal course of business as of September 30, 2009. The maximum incremental collateral the Company could have been required to post as of September 30, 2009 was $27. As of September 30, 2009 and 2008, the fair value of long-term debt was $4,915 and $3,752, respectively, which was in excess of (less than) the carrying value by $351 and $(12).

Short-Term Borrowings and Lines

Short-Term Borrowings and Lines of Credit
	12 Months Ended Sep. 30, 2009 USD / shares
Short-Term Borrowings and Lines of Credit [Abstract]
Short-Term Borrowings and Lines of Credit	(8)Short-Term Borrowings and Lines of Credit Short-term borrowings and current maturities of long-term debt are summarized as follows: 2008 2009 Current maturities of long-term debt $ 467 566 Commercial paper 665 Payable to banks 17 11 Other 72 Total $ 1,221 577 Weighted-average short-term borrowing interest rate at year end 2.6 % 1.1 % In 2000, the Company issued 13 billion Japanese yen of commercial paper and simultaneously entered into a 10-year interest rate swap, which fixed the rate at 2.2 percent. This swap was terminated in December 2008. To support short-term borrowings, the Company maintains, but has not drawn on, a $2.8 billion, five-year, revolving credit facility that expires in April 2011. The credit facility has no financial covenants and is not subject to termination based on a change in credit ratings or a material adverse change. There were no borrowings against U.S. lines of credit in the last three years. The Company expects to renew the backup credit facility in 2010.

Long-Term Debt

Long-Term Debt
	12 Months Ended Sep. 30, 2009 USD / shares
Long-Term Debt [Abstract]
Long-Term Debt	(9)Long-Term Debt Long-term debt is summarized as follows: 2008 2009 5% notes due October 2008 $ 175 5.85% notes due March 2009 250 7.125% notes due August 2010 500 500 5.75% notes due November 2011 250 250 4.625% notes due October 2012 250 250 4.50% notes due May 2013 250 250 5.625% notes due November 2013 250 250 5% notes due December 2014 250 250 4.125% notes due April 2015 250 4.75% notes due October 2015 250 250 5.125% notes due December 2016 250 250 5.375% notes due October 2017 250 250 5.250% notes due October 2018 400 400 5.00% notes due April 2019 250 4.875% notes due October 2019 500 6% notes due August 2032 250 250 6.125% notes due April 2039 250 Other 189 164 3,764 4,564 Less current maturities 467 566 Total $ 3,297 3,998 Long-term debt maturing during each of the four years after 2010 is $66, $277, $500 and $250, respectively. Total interest paid related to short-term borrowings and long-term debt was approximately $230, $235 and $242 in 2009, 2008 and 2007, respectively. The Company has a universal shelf registration statement on file with the SEC under which it could issue debt securities, preferred stock, common stock, warrants, share purchase contracts and share purchase units without a predetermined limit. Securities can be sold in one or more separate offerings with the size, price and terms to be determined at the time of sale.

Retirement Plans

Retirement Plans
	12 Months Ended Sep. 30, 2009 USD / shares
Retirement Plans [Abstract]
Retirement Plans	(10)Retirement Plans Retirement plan expense includes the following components: U.S. PLANS NON-U.S. PLANS 2007 2008 2009 2007 2008 2009 Defined benefit plans: Service cost (benefits earned during the period) $ 43 48 46 21 23 22 Interest cost 159 167 174 38 45 45 Expected return on plan assets (211 ) (230 ) (243 ) (38 ) (45 ) (37 ) Net amortization 87 86 70 11 11 17 Net periodic pension expense 78 71 47 32 34 47 Defined contribution and multiemployer plans 94 104 80 27 34 37 Total retirement plan expense $ 172 175 127 59 68 84 Reconciliations of the actuarial present value of the projected benefit obligations and of the fair value of plan assets for defined benefit pension plans follow: U.S. PLANS NON-U.S. PLANS 2008 2009 2008 2009 Projected benefit obligation, beginning $ 2,678 2,699 837 843 Service cost 48 46 23 22 Interest cost 167 174 45 45 Actuarial loss (gain) (64 ) 408 21 15 Benefits paid (136 ) (154 ) (35 ) (37 ) Acquisitions/divestitures, net 21 3 Effect of FAS 158 measurement date adjustment 21 8 Foreign currency translation and other 6 8 (69 ) (35 ) Projected benefit obligation, ending $ 2,699 3,202 843 864 Fair value of plan assets, beginning $ 3,204 3,030 690 619 Actual return on plan assets (102 ) (311 ) (42 ) 3 Employer contributions 63 228 73 75 Benefits paid (136 ) (154 ) (35 ) (37 ) Acquisitions/divestitures, net 4 Effect of FAS 158 measurement date adjustment 28 6 Foreign currency translation and other 1 1 (71 ) (32 ) Fair value of plan assets, ending $ 3,030 2,822 619 634 Plan assets in excess of (less than) benefit obligationas of June 30, 2008 and September 30, 2009 $ 331 (380 ) (224 ) (230 ) Adjustment for fourth quarter contributions 4 Net amount recognized in the balance sheet $ 331 (380 ) (220 ) (230 ) Amounts recognized in the balance sheet as of September 30: Noncurrent asset $ 431 5 3 Noncurrent liability $ (100 ) (380 ) (225 ) (233 ) Accumulated other comprehensive loss $ (551 ) (1,432 ) (253 ) (260 ) Approximately $138 of the $1,692

Postretirement Plans

Postretirement Plans
	12 Months Ended Sep. 30, 2009 USD / shares
Postretirement Plans [Abstract]
Postretirement Plans	(11)Postretirement Plans The Company sponsors unfunded postretirement benefit plans (primarily health care) for U.S. retirees and their dependents. The components of net postretirement plan expense for the years ended September 30 follow: 2007 2008 2009 Service cost $ 6 5 4 Interest cost 29 29 30 Net amortization 26 27 15 Net postretirement expense $ 61 61 49 Reconciliations of the actuarial present value of accumulated postretirement benefit obligations follow: 2008 2009 Benefit obligation, beginning $ 501 465 Service cost 5 4 Interest cost 29 30 Actuarial loss (gain) (24 ) 24 Benefits paid (39 ) (34 ) Acquisitions/divestitures and other (7 ) 10 Benefit obligation, ending, recognized in balance sheet $ 465 499 Approximately $1 of the $13 of losses deferred in accumulated other comprehensive income at September 30, 2009 will be amortized into earnings in 2010. The assumed discount rates used in measuring the obligations as of September 30, 2009, 2008 and 2007, were 5.00 percent, 6.50 percent and 6.00 percent, respectively. The assumed health care cost trend rate for 2010 is 8.5 percent, declining to 5.0 percent in the year 2017. The assumed health care cost trend rate for 2009 was 9.0 percent, declining to 5.0 percent in the year 2017. A one-percentage-point increase or decrease in the assumed health care cost trend rate for each year would increase or decrease the obligation as of September 30, 2009 and the 2009 postretirement plan expense by less than 5 percent. The Company estimates that future health care benefit payments will be as follows:$43 in 2010, $47 in 2011, $48 in 2012, $47 in 2013, $46 in 2014 and $208 in total over the five years 2015 through 2019.

Contingent Liabilities and Comm

Contingent Liabilities and Commitments
	12 Months Ended Sep. 30, 2009 USD / shares
Contingent Liabilities and Commitments [Abstract]
Contingent Liabilities and Commitments	(12)Contingent Liabilities and Commitments Emerson is a party to a number of pending legal proceedings and claims, including those involving general and product liability and other matters, several of which claim substantial amounts of damages. The Company accrues for such liabilities when it is probable that future costs (including legal fees and expenses) will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date; managements estimates of the outcomes of these matters; the Companys experience in contesting, litigating and settling similar matters and any related insurance coverage. Although it is not possible to predict the ultimate outcome of the matters discussed above, the Company historically has been successful in defending itself against claims and suits that have been brought against it, and will continue to defend itself vigorously in all such matters. While the Company believes a material adverse impact is unlikely, given the inherent uncertainty of litigation, a remote possibility exists that a future development could have a material adverse impact on the Company. The Company enters into certain indemnification agreements in the ordinary course of business in which the indemnified party is held harmless and is reimbursed for losses incurred from claims by third parties, usually up to a prespecified limit. In connection with divestitures of certain assets or businesses, the Company often provides indemnities to the buyer with respect to certain matters including, as examples, environmental liabilities and unidentified tax liabilities related to periods prior to the disposition. Because of the uncertain nature of the indemnities, the maximum liability cannot be quantified. As such, liabilities are recorded when they are both probable and reasonably estimable. Historically, payments under indemnity arrangements have been inconsequential. At September 30, 2009, there were no known contingent liabilities (including guarantees, pending litigation, taxes and other claims) that management believes will be material in relation to the Companys financial statements, nor were there any material commitments outside the normal course of business.

Income Taxes

Income Taxes
	12 Months Ended Sep. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	(13)Income Taxes Pretax earnings from continuing operations consist of the following: 2007 2008 2009 United States $ 1,550 1,691 1,134 Non-U.S. 1,543 1,900 1,283 Total pretax earnings from continuing operations $ 3,093 3,591 2,417 The principal components of income tax expense follow: 2007 2008 2009 Current: Federal $ 606 539 231 State and local 58 50 25 Non-U.S. 364 496 315 Deferred: Federal (4 ) 65 150 State and local (14 ) (5 ) 9 Non-U.S. (46 ) (8 ) (37 ) Income tax expense $ 964 1,137 693 Reconciliations of the U.S. federal statutory tax rate to the Companys effective tax rate follow: 2007 2008 2009 Federal rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 0.9 0.8 0.9 Non-U.S. rate differential (4.1 ) (4.2 ) (5.1 ) Non-U.S. tax holidays (1.3 ) (0.9 ) (2.0 ) U.S. manufacturing deduction (0.4 ) (0.8 ) (0.9 ) Export benefit (0.2 ) Other 1.3 1.8 0.8 Effective income tax rate 31.2 % 31.7 % 28.7 % Non-U.S. tax holidays reduce tax rates in certain foreign jurisdictions and are expected to expire over the next six years. The principal items that gave rise to deferred income tax assets and liabilities follow: 2008 2009 Deferred tax assets: Net operating losses and tax credits $ 249 279 Accrued liabilities 189 186 Postretirement and postemployment benefits 170 181 Employee compensation and benefits 146 160 Pensions 118 Capital loss carryforwards 18 19 Other 152 131 Total 924 1,074 Valuation allowances (146 ) (103 ) Deferred tax liabilities: Intangibles (437 ) (587 ) Property, plant and equipment (221 ) (233 ) Leveraged leases (79 ) (59 ) Pensions (94 ) Other (53 ) (75 ) Total (884 ) (954 ) Net deferred income tax asset (liability) $ (106 ) 17 At September 30, 2009 and 2008, respectively, net current deferred tax assets were $290 and $328, and net noncurrent deferred tax liabilities were $273 and $434. Total income taxes paid were approximately $780, $1,110 and $960 in 2009, 2008 and 2007, respectively. The capital loss carryforwards of $19 expire in 2012. The majority of the $279 net operating losses and tax credits can be carried forward indefinitely, while the remainders expire over varying periods. Valuation allowances decreased $43 due primarily to recognition of a net operating loss carryforward resulting from the restructuring of a foreign subsidiary. Effective October 1, 2007, the Company adopted th

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Sep. 30, 2009 USD / shares
Stock-Based Compensation [Abstract]
Stock-Based Compensation	(14)Stock-Based Compensation The Companys stock-based compensation plans include stock options, performance shares and restricted stock. STOCK OPTIONS The Companys stock option plans permit key officers and employees to purchase common stock at specified prices. Options are granted at 100 percent of the average of the high and low prices of the Companys common stock on the date of grant, generally vest one-third each year and expire 10 years from the date of grant. Compensation expense is recognized ratably over the vesting period based on the number of options expected to vest. At September 30, 2009, approximately 7.9 million options remained available for grant under these plans. Changes in shares subject to option during the year ended September 30, 2009, follow: (SHARES IN THOUSANDS) AVERAGE EXERCISE PRICE PER SHARE SHARES TOTAL INTRINSIC VALUE OF AWARDS AVERAGE REMAINING LIFE (YEARS) Beginning of year $ 36.31 14,351 Options granted $ 31.51 3,636 Options exercised $ 26.32 (1,516 ) Options canceled $ 41.98 (226 ) End of year $ 36.09 16,245 $ 117 6.1 Exercisable at year end $ 33.13 9,845 $ 86 4.3 The weighted-average grant date fair value per share of options granted was $4.45, $10.59 and $9.31 for 2009, 2008 and 2007, respectively. The total intrinsic value of options exercised was $10, $75 and $53 in 2009, 2008 and 2007, respectively. Cash received for option exercises under share option plans was $33, $73 and $60, and the actual tax benefit realized from tax deductions related to option exercises was $7, $19 and $14 for 2009, 2008 and 2007, respectively. The grant date fair value of each award is estimated using the Black-Scholes option-pricing model. Weighted-average assumptions used in the Black-Scholes valuations for 2009, 2008 and 2007 are as follows:risk-free interest rate based on the U.S. Treasury yield of 2.4 percent, 4.1 percent and 4.6 percent; dividend yield of 4.2 percent, 2.0 percent and 2.4 percent; and expected volatility based on historical volatility of 22 percent, 17 percent and 20 percent. The expected life of an option is seven years based on historical experience and expected future exercise patterns. PERFORMANCE SHARES AND RESTRICTED STOCK The Companys incentive shares plans include performance share awards which distribute common stock to key management personnel subject to certain conditions and restrictions. Distributions are made primarily in shares of common stock and partially in cash. Compensation expense is recognized over the service period based on the number of awards expected to be ultimately earned. Performance share awards are accounted for as liabilities in accordance with FAS No. 123 (R), Share-Based Payment (now part of ASC 718, Compensation Stock Compensation), with compensation expense adjusted at the end of each period to reflect the change in the fair value of the awards. In 2008, as a result of the Company achieving its performance objective at the end of 2007 and

Common Stock

Common Stock
	12 Months Ended Sep. 30, 2009 USD / shares
Common Stock [Abstract]
Common Stock	(15) Common Stock At September 30, 2009, approximately 45 million shares of common stock were reserved for issuance under the Companys stock-based compensation plans. During 2009, 21.0 million common shares were repurchased and 1.7 million treasury shares were issued.

Business Segment Information

Business Segment Information
	12 Months Ended Sep. 30, 2009 USD / shares
Business Segment Information [Abstract]
Segment Reporting and Geography Disclosure [Text Block]	(16)Business Segment Information The Company designs and supplies product technology and delivers engineering services in a wide range of industrial, commercial and consumer markets around the world. The segments of the Company are organized primarily by the nature of the products and services provided. The Process Management segment includes systems and software, measurement and analytical instrumentation, valves, actuators and regulators, and services and solutions that provide precision control, monitoring and asset optimization for plants that produce power or that process fluids, such as petroleum, chemicals, food and beverages, pulp and paper, and pharmaceuticals. The Industrial Automation segment includes industrial motors and drives, power transmission and materials handling equipment, alternators, materials joining and precision cleaning, fluid power and control, and electrical distribution equipment, which are used in a wide variety of manufacturing operations to provide integrated manufacturing solutions to our customers. The Network Power segment designs, manufactures, installs and maintains power systems, including power conditioning and uninterruptible power supplies, embedded power supplies, precision cooling systems, electrical switching equipment, and site monitoring systems for telecommunications networks, data centers and other critical applications. The Climate Technologies segment consists of compressors, temperature sensors and controls, thermostats, flow controls, and remote monitoring services provided to all areas of the climate control industry. The Appliance and Tools segment includes general and special purpose motors and controls, appliances and appliance components, plumbing tools, and storage products used in a wide variety of commercial and residential applications. The principal distribution method for each segment is a direct sales force, although the Company also uses independent sales representatives and distributors. The primary income measure used for assessing segment performance and making operating decisions is earnings before interest and income taxes. Intersegment sales approximate market prices. Accounting method differences between segment reporting and the consolidated financial statements include primarily management fees allocated to segments based on a percentage of sales and the accounting for pension and other retirement plans. Gains and losses from divestitures of businesses are included in Corporate and other. Corporate assets include primarily cash and equivalents, pensions, investments and certain fixed assets. Summarized information about the Companys operations by business segment and by geographic region follows: BUSINESS SEGMENTS (See Notes 3, 4, 5 and 6) SALES EARNINGS TOTAL ASSETS 2007 2008 2009 2007 2008 2009 2007 2008 2009 Process Management $ 5,699 6,652 6,233 1,066 1,306 1,068 4,902 5,152 5,340 Industrial Automation 4,269 4,852 3,698 665 727 354

Other Financial Data

Other Financial Data
	12 Months Ended Sep. 30, 2009 USD / shares
Other Financial Data
Other Financial Data	(17)Other Financial Data Items reported in earnings during the years ended September 30 include the following: 2007 2008 2009 Depreciation $ 525 557 543 Research and development expense $ 397 458 460 Rent expense $ 300 337 363 The Company leases facilities, transportation and office equipment and various other items under operating lease agreements. The minimum annual rentals under noncancelable long-term leases, exclusive of maintenance, taxes, insurance and other operating costs, will approximate $227 in 2010, $166 in 2011, $109 in 2012, $69 in 2013 and $47 in 2014. Other assets, other are summarized as follows: 2008 2009 Intellectual property and customer relationships $ 627 930 Capitalized software 192 214 Pension plans 436 3 Other 385 385 Total $ 1,640 1,532 The pension asset decreased and the pension liability increased due to the decrease in funded status (see Note 10). Items reported in accrued expenses include the following: 2008 2009 Employee compensation $ 609 536 Customer advanced payments $ 314 315 Product warranty $ 204 199 Other liabilities are summarized as follows: 2008 2009 Pension plans $ 325 613 Postretirement plans, excluding current portion 417 460 Deferred income taxes 533 406 Minority interest 188 151 Other 594 624 Total $ 2,057 2,254

Quarterly Financial Information

Quarterly Financial Information (Unaudited)
	12 Months Ended Sep. 30, 2009 USD / shares
Quarterly Financial Information (Unaudited) [Abstract]
Quarterly Financial Information (Unaudited)	(18)Quarterly Financial Information (Unaudited) FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER FISCAL YEAR 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 Net sales $ 5,520 5,415 6,023 5,087 6,568 5,091 6,696 5,322 24,807 20,915 Gross profit $ 2,010 1,996 2,242 1,837 2,413 1,838 2,474 2,028 9,139 7,699 Earnings from continuingoperations $ 519 458 598 373 647 387 690 506 2,454 1,724 Net earnings $ 565 458 547 373 612 387 688 506 2,412 1,724 Earnings from continuing operations per common share: Basic $ 0.66 0.60 0.76 0.50 0.83 0.52 0.89 0.67 3.14 2.29 Diluted $ 0.65 0.60 0.75 0.49 0.82 0.51 0.88 0.67 3.11 2.27 Net earnings per common share: Basic $ 0.72 0.60 0.70 0.50 0.79 0.52 0.89 0.67 3.09 2.29 Diluted $ 0.71 0.60 0.69 0.49 0.78 0.51 0.88 0.67 3.06 2.27 Dividends per common share $ 0.30 0.33 0.30 0.33 0.30 0.33 0.30 0.33 1.20 1.32 Common stock prices: High $ 58.32 39.19 55.83 39.10 58.20 37.35 50.94 41.24 58.32 41.24 Low $ 50.50 29.98 47.88 24.87 48.17 29.53 38.46 30.63 38.46 24.87 Earnings per share are computed independently each period; as a result, the quarterly amounts may not sum to the calculated annual figure. The operating results of the European appliance motor and pump business for 2008 and Brooks for first quarter 2008 are classified as discontinued operations. See Notes 3 and 4 for information regarding the Companys acquisition and divestiture activities and non-recurring items. Emerson Electric Co. common stock (symbol EMR) is listed on the New York Stock Exchange and the Chicago Stock Exchange.

Document Information

Document Information
	12 Months Ended Sep. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
In Billions, except Share data	12 Months Ended Sep. 30, 2009	Oct. 31, 2009	Mar. 31, 2009
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			21.4
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		752,147,714