Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Quarter Ended September 30,
2014
2015
Net sales
Costs and expenses:
Cost of sales
SG&A expenses
Gains on divestitures
Goodwill impairment
Other deductions, net
Interest expense, net
Earnings before income taxes
Income taxes
Net earnings
Less: Noncontrolling interests in earnings of subsidiaries
Net earnings common stockholders
$6,807
$5,814
3,918
1,453
—
508
65
47
816
401
415
5
$410
3,446
1,185
107
—
249
45
996
345
651
3
$648
Diluted avg. shares outstanding
699.6
658.1
Diluted earnings per share common stockholders
$0.58
$0.98
Quarter Ended September 30,
2014
2015
Other deductions, net
Amortization of intangibles
Rationalization of operations
Other
Total
$55
10
—
$65
$54
122
73
$249
Percent
Change
(15)%
22%
57%
58%
69%
Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Year Ended September 30,
2014
2015
Net sales
Costs and expenses:
Cost of sales
SG&A expenses
Gains on divestitures
Goodwill impairment
Other deductions, net
Interest expense, net
Earnings before income taxes
Income taxes
Net earnings
Less: Noncontrolling interests in earnings of subsidiaries
Net earnings common stockholders
$24,537
$22,304
14,379
5,715
—
508
393
194
3,348
1,164
2,184
37
$2,147
13,256
5,184
1,039
—
571
171
4,161
1,428
2,733
23
$2,710
Diluted avg. shares outstanding
704.1
676.5
Diluted earnings per share common stockholders
$3.03
$3.99
Year Ended September 30,
2014
2015
Other deductions, net
Amortization of intangibles
Rationalization of operations
Other
Total
$225
55
113
$393
$214
211
146
$571
Percent
Change
(9)%
24%
25%
26%
32%
Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Year Ended September 30,
2014
2015
Assets
Cash and equivalents
Receivables, net
Inventories
Other current assets
Total current assets
Property, plant & equipment, net
Goodwill
Other intangible assets
Other
Total assets
$3,149
5,019
2,057
642
10,867
3,802
7,182
1,689
637
$24,177
$3,054
4,319
1,847
829
10,049
3,585
6,653
1,526
275
$22,088
Liabilities and equity
Short-term borrowings and current
maturities of long-term debt
Accounts payables
Accrued expenses
Income taxes
Total current liabilities
Long-term debt
Other liabilities
Total equity
Total liabilities and equity
$2,465
2,951
2,876
162
8,454
3,559
1,997
10,167
$24,177
$2,553
2,358
2,803
86
7,800
4,289
1,871
8,128
$22,088
Table 4
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Year Ended September 30,
2014
2015
Operating activities
Net earnings
Depreciation and amortization
Changes in operating working capital
Pension funding
Gains on divestiture of businesses, after tax
Income taxes paid on divestiture gains
Goodwill impairment, after tax
Other, net
Net cash provided by operating activities
$2,184
831
114
(130)
—
—
508
185
3,692
$2,733
815
(142)
(53)
(611)
(424)
—
211
2,529
Investing activities
Capital expenditures
Purchase of businesses, net of cash and equivalents acquired
Divestitures of businesses
Other, net
Net cash provided (used) by investing activities
(767)
(610)
363
(145)
(1,159)
(685)
(324)
1,812
(212)
591
Financing activities
Net increase in short-term borrowings
Proceeds from long-term debt
Payments of long-term debt
Dividends paid
Purchases of common stock
Purchases of noncontrolling interests
Other, net
Net cash used by financing activities
622
1
(329)
(1,210)
(1,048)
(574)
(21)
(2,559)
345
1,000
(504)
(1,269)
(2,501)
—
(19)
(2,948)
Effect of exchange rate changes on cash and equivalents
(100)
(267)
Increase (decrease) in cash and equivalents
(126)
(95)
Beginning cash and equivalents
3,275
3,149
Ending cash and equivalents
$3,149
$3,054
Table 5
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended September 30,
2014
2015
Sales
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Eliminations
Net sales
Earnings
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Differences in accounting methods
Corporate and other
Interest expense, net
Earnings before income taxes
Rationalization of operations
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Corporate
Total
$2,723
1,320
1,362
1,091
506
7,002
(195)
$6,807
$2,291
945
1,231
1,004
502
5,973
(159)
$5,814
$689
239
173
194
117
1,412
72
(621)
(47)
$816
$429
136
81
180
111
937
58
46
(45)
$996
$5
—
2
3
—
—
$10
$52
14
33
12
6
5
$122
Table 6
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Year Ended September 30,
2014
2015
Sales
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Eliminations
Net sales
Earnings
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Differences in accounting methods
Corporate and other
Interest expense, net
Earnings before income taxes
Rationalization of operations
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Corporate
Total
$9,189
4,990
5,073
4,109
1,924
25,285
(748)
$24,537
$8,516
4,121
4,441
4,011
1,924
23,013
(709)
$22,304
$1,918
802
459
737
424
4,340
252
(1,050)
(194)
$3,348
$1,493
600
231
698
403
3,425
223
684
(171)
$4,161
$17
7
15
14
2
—
$55
$89
22
64
20
11
5
$211
Reconciliations of Non-GAAP Financial Measures & Other
Table 7
The following reconciles non-GAAP measures (denoted by *) with the most directly comparable GAAP
measure (dollars in millions, except per share amounts):
Q4 sales change
Underlying*
Acq/Div
FX
Other
Reported
Process
Industrial
Mgmt
Auto
(10 )%
(12 )%
—%
(10 )%
(6 )%
(6 )%
—%
—%
(16 )%
(28 )%
Q4 earnings per share
Reported
Gains on divestitures
Network Power spinoff expenses
Impairment
Adjusted*
2015 sales change
Underlying*
Acq/Div
FX
Other
Reported
Process
Industrial
Mgmt
Auto
(2 )%
(4 )%
—%
(7 )%
(5 )%
(6 )%
—%
—%
(7 )%
(17 )%
2015 earnings per share
Reported
Gains on divestitures
Network Power spinoff expenses
Impairment
Adjusted*
2016E sales change
Underlying*
Acq/Div
FX
Reported
2016E earnings per share
Adjusted*
Repositioning costs
Reported
2014
$0.58
—
—
0.72
$1.30
2014
$3.03
—
—
0.72
$3.75
~(5)-(2)%
~(2)%
~(2)%
~(8)-(6)%
Network
Power
(4 )%
—%
(6 )%
—%
(10 )%
2015
$0.98
(0.13)
0.08
—
$0.93
Network
Power
(3 )%
(4 )%
(5 )%
—%
(12 )%
2015
$3.99
(0.90)
0.08
—
$3.17
Q3 2014
$—
$—
Climate
Comm &
Tech
Res Solns
(5 )%
3%
—%
—%
(3 )%
(2 )%
—%
(2 )%
(8 )%
(1 )%
Total
(7 )%
(2 )%
(6 )%
—%
(15 )%
Change
69%
—
—
—
(29%)
Climate
Comm &
Tech
Res Solns
—%
2%
—%
—%
(2 )%
(1 )%
—%
(1 )%
(2 )%
—%
Total
(2 )%
(2 )%
(5 )%
—%
(9 )%
Change
32%
—
—
—
(15%)
Q3 2015
$—
$—
% Change
—%
—%
$3.05 to $3.25
($0.55 to $0.40)
$2.50 to $2.85
Note: Underlying sales and orders exclude the impact of acquisitions, divestitures and currency translation.