Business Segment Information

3 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

We determine our operating segments based on the information used by our chief operating decision maker, our Chief Executive Officer, to allocate resources and assess performance. Beginning in fiscal year 2021, we organize our business into three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. This change simplifies our structure around essential offerings, leverages our sharpened industry focus, and recognizes the growing importance of software in delivering value to our customers. The composition of our segments is as follows:

Intelligent Devices	Software & Control(1)	Lifecycle Services(2)
Drives(2)	Control software & hardware	Consulting
Motion(1)	Visualization software & hardware	Professional services and solutions
Safety(1)	Digital twin & simulation software	Connected services
Sensing(1)	Information solutions software	Maintenance services
Industrial components(2)	Network & security infrastructure	Sensia joint venture
Configured-to-order products(2)

(1) Formerly part of the Architecture & Software segment

(2) Formerly part of the Control Products & Solutions segment

The following tables reflect the sales and operating results of our reportable segments including recast information for the three months ended December 31, 2019 (in millions):

	Three Months Ended December 31,
	2020		2019
Sales
Intelligent Devices	$	721.7	$	776.6
Software & Control	441.0		452.5
Lifecycle Services	402.6		455.4
Total	$	1,565.3	$	1,684.5
Segment operating earnings
Intelligent Devices	$	140.2	$	160.6
Software & Control	133.1		140.4
Lifecycle Services	36.0		38.1
Total	309.3		339.1
Purchase accounting depreciation and amortization	(11.7)		(10.0)
Corporate and other	(28.0)		(32.8)
Non-operating pension and postretirement benefit cost	(7.0)		(8.7)
Gain on investments	390.4		71.0
Legal Settlement	70.0		—
Interest (expense) income - net	(22.3)		(24.0)
Income before income taxes	$	700.7	$	334.6

Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before income taxes, interest (expense) income - net, costs related to corporate offices, non-operating pension and postretirement benefit cost, certain corporate initiatives, gains and losses on investments, gains and losses from the disposition of businesses, and purchase accounting depreciation and amortization. Depending on the product, intersegment sales within a single legal entity are either at cost or cost plus a mark-up, which does not necessarily represent a market price. Sales between legal entities are at an appropriate transfer price. We allocate costs related to shared segment operating activities to the segments consistent with the methodology used by management to assess segment performance.

The following table summarizes the identifiable assets at December 31, 2020, and September 30, 2020 for each of the reportable segments and Corporate (in millions):

	December 31, 2020		September 30, 2020
Identifiable assets:
Intelligent Devices	$	1,679.5	$	1,585.0
Software & Control	1,441.3		1,072.7
Lifecycle Services	1,902.8		1,915.0
Corporate	3,147.4		2,692.0
Total	$	8,171.0	$	7,264.7

Identifiable assets at Corporate consist principally of cash, net deferred income tax assets, prepaid pension obligations, and property. Property shared by the segments and used in operating activities is also reported in Corporate identifiable assets. Corporate identifiable assets include shared net property balances of $253.3 million and $247.3 million at December 31, 2020, and September 30, 2020, respectively, for which depreciation expense has been allocated to segment operating earnings consistent with the methodology used by management to assess segment performance.