Missouri (State or other jurisdiction of incorporation or organization) | 43-0259330 (I.R.S. Employer Identification No.) | |
8000 W. Florissant Ave. P.O. Box 4100 St. Louis, Missouri (Address of principal executive offices) | 63136 (Zip Code) |
Large accelerated filer ý | Accelerated filer ¨ |
Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
Three Months Ended Dec 31, | ||||||
2014 | 2015 | |||||
Net sales | $ | 5,587 | 4,713 | |||
Costs and expenses: | ||||||
Cost of sales | 3,307 | 2,824 | ||||
Selling, general and administrative expenses | 1,405 | 1,226 | ||||
Other deductions, net | 64 | 114 | ||||
Interest expense (net of interest income of $7 and $8, respectively) | 46 | 46 | ||||
Earnings before income taxes | 765 | 503 | ||||
Income taxes | 236 | 151 | ||||
Net earnings | 529 | 352 | ||||
Less: Noncontrolling interests in earnings of subsidiaries | 4 | 3 | ||||
Net earnings common stockholders | $ | 525 | 349 | |||
Basic earnings per share common stockholders | $ | 0.76 | 0.54 | |||
Diluted earnings per share common stockholders | $ | 0.75 | 0.53 | |||
Cash dividends per common share | $ | 0.47 | 0.475 |
Three Months Ended December 31, | ||||||
2014 | 2015 | |||||
Net earnings | $ | 529 | 352 | |||
Other comprehensive income (loss), net of tax: | ||||||
Foreign currency translation | (305 | ) | (153 | ) | ||
Pension and postretirement | 28 | 26 | ||||
Cash flow hedges | (24 | ) | 6 | |||
Total other comprehensive income (loss) | (301 | ) | (121 | ) | ||
Comprehensive income | 228 | 231 | ||||
Less: Noncontrolling interests in comprehensive income of subsidiaries | 3 | 3 | ||||
Comprehensive income common stockholders | $ | 225 | 228 |
Sept 30, 2015 | Dec 31, 2015 | |||||
ASSETS | ||||||
Current assets | ||||||
Cash and equivalents | $ | 3,054 | 3,109 | |||
Receivables, less allowances of $128 and $122, respectively | 4,319 | 3,842 | ||||
Inventories | 1,847 | 1,903 | ||||
Other current assets | 829 | 840 | ||||
Total current assets | 10,049 | 9,694 | ||||
Property, plant and equipment, net | 3,585 | 3,520 | ||||
Other assets | ||||||
Goodwill | 6,653 | 6,601 | ||||
Other intangible assets | 1,526 | 1,467 | ||||
Other | 275 | 270 | ||||
Total other assets | 8,454 | 8,338 | ||||
Total assets | $ | 22,088 | 21,552 | |||
LIABILITIES AND EQUITY | ||||||
Current liabilities | ||||||
Short-term borrowings and current maturities of long-term debt | $ | 2,553 | 3,409 | |||
Accounts payable | 2,358 | 2,075 | ||||
Accrued expenses | 2,803 | 2,616 | ||||
Income taxes | 86 | 102 | ||||
Total current liabilities | 7,800 | 8,202 | ||||
Long-term debt | 4,289 | 4,043 | ||||
Other liabilities | 1,871 | 1,810 | ||||
Equity | ||||||
Common stock, $0.50 par value; authorized, 1,200,000,000 shares; issued, 953,354,012 shares; outstanding, 654,608,521 shares and 643,099,581 shares, respectively | 477 | 477 | ||||
Additional paid-in-capital | 170 | 178 | ||||
Retained earnings | 21,308 | 21,347 | ||||
Accumulated other comprehensive income (loss) | (1,617 | ) | (1,738 | ) | ||
Cost of common stock in treasury, 298,745,491 shares and 310,254,431 shares, respectively | (12,257 | ) | (12,808 | ) | ||
Common stockholders’ equity | 8,081 | 7,456 | ||||
Noncontrolling interests in subsidiaries | 47 | 41 | ||||
Total equity | 8,128 | 7,497 | ||||
Total liabilities and equity | $ | 22,088 | 21,552 |
Three Months Ended December 31, | ||||||
2014 | 2015 | |||||
Operating activities | ||||||
Net earnings | $ | 529 | 352 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||
Depreciation and amortization | 207 | 202 | ||||
Changes in operating working capital | (192 | ) | (145 | ) | ||
Other, net | 27 | 78 | ||||
Net cash provided by operating activities | 571 | 487 | ||||
Investing activities | ||||||
Capital expenditures | (207 | ) | (145 | ) | ||
Purchases of businesses, net of cash and equivalents acquired | (143 | ) | (6 | ) | ||
Other, net | (26 | ) | (12 | ) | ||
Net cash used by investing activities | (376 | ) | (163 | ) | ||
Financing activities | ||||||
Net increase (decrease) in short-term borrowings | (227 | ) | 34 | |||
Proceeds from short-term borrowings greater than three months | 1,957 | 827 | ||||
Payments of short-term borrowings greater than three months | (731 | ) | — | |||
Payments of long-term debt | (251 | ) | (251 | ) | ||
Dividends paid | (326 | ) | (310 | ) | ||
Purchases of common stock | (509 | ) | (507 | ) | ||
Other, net | (59 | ) | (4 | ) | ||
Net cash used by financing activities | (146 | ) | (211 | ) | ||
Effect of exchange rate changes on cash and equivalents | (76 | ) | (58 | ) | ||
Increase (decrease) in cash and equivalents | (27 | ) | 55 | |||
Beginning cash and equivalents | 3,149 | 3,054 | ||||
Ending cash and equivalents | $ | 3,122 | 3,109 | |||
Changes in operating working capital | ||||||
Receivables | $ | 434 | 433 | |||
Inventories | (195 | ) | (78 | ) | ||
Other current assets | (17 | ) | 4 | |||
Accounts payable | (277 | ) | (270 | ) | ||
Accrued expenses | (261 | ) | (248 | ) | ||
Income taxes | 124 | 14 | ||||
Total changes in operating working capital | $ | (192 | ) | (145 | ) |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
1. | 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, 2015. |
2. | Reconciliations of weighted-average shares for basic and diluted earnings per common share follow (in millions). Earnings allocated to participating securities were inconsequential. |
Three Months Ended December 31, | |||||
2014 | 2015 | ||||
Basic shares outstanding | 691.4 | 650.0 | |||
Dilutive shares | 3.3 | 2.5 | |||
Diluted shares outstanding | 694.7 | 652.5 |
Sept 30, 2015 | Dec 31, 2015 | |||||
Inventories | ||||||
Finished products | $ | 680 | 688 | |||
Raw materials and work in process | 1,167 | 1,215 | ||||
Total | $ | 1,847 | 1,903 |
Property, plant and equipment, net | ||||||
Property, plant and equipment, at cost | $ | 8,931 | 8,905 | |||
Less: Accumulated depreciation | 5,346 | 5,385 | ||||
Total | $ | 3,585 | 3,520 |
Goodwill by business segment | ||||||
Process Management | $ | 2,790 | 2,775 | |||
Industrial Automation | 1,031 | 1,017 | ||||
Network Power | 2,144 | 2,126 | ||||
Climate Technologies | 492 | 490 | ||||
Commercial & Residential Solutions | 196 | 193 | ||||
Total | $ | 6,653 | 6,601 |
Sept 30, 2015 | Dec 31, 2015 | |||||
Accrued expenses include the following | ||||||
Employee compensation | $ | 597 | 463 | |||
Customer advanced payments | $ | 450 | 478 | |||
Product warranty | $ | 167 | 162 |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
Sept 30, 2015 | Dec 31, 2015 | |||||
Other liabilities | ||||||
Pension liabilities | $ | 662 | 626 | |||
Deferred income taxes | 408 | 453 | ||||
Postretirement liabilities, excluding current portion | 199 | 198 | ||||
Other | 602 | 533 | ||||
Total | $ | 1,871 | 1,810 |
4. | Following is a discussion regarding the Company’s use of financial instruments: |
Into Earnings | Into OCI | ||||||||||||||
1st Quarter | 1st Quarter | ||||||||||||||
Gains (Losses) | Location | 2014 | 2015 | 2014 | 2015 | ||||||||||
Commodity | Cost of sales | $ | (2 | ) | (8 | ) | (12 | ) | (11 | ) | |||||
Foreign currency | Sales, cost of sales | (1 | ) | (6 | ) | (31 | ) | 6 | |||||||
Foreign currency | Other deductions, net | (17 | ) | 3 | |||||||||||
Total | $ | (20 | ) | (11 | ) | (43 | ) | (5 | ) |
September 30, 2015 | December 31, 2015 | |||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||
Foreign Currency | $ | 30 | 65 | 26 | 52 | |||||||
Commodity | $ | — | 29 | — | 32 |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
5. | The change in equity for the first three months of 2016 is shown below (in millions): |
Common Stockholders' Equity | Noncontrolling Interests in Subsidiaries | Total Equity | |||||||
Balance at September 30, 2015 | $ | 8,081 | 47 | 8,128 | |||||
Net earnings | 349 | 3 | 352 | ||||||
Other comprehensive income (loss) | (121 | ) | — | (121 | ) | ||||
Cash dividends | (310 | ) | (9 | ) | (319 | ) | |||
Net purchases of common stock | (543 | ) | — | (543 | ) | ||||
Balance at December 31, 2015 | $ | 7,456 | 41 | 7,497 |
6. | Activity in accumulated other comprehensive income (loss) for the three months ended December 31, 2015 and 2014 is shown below (in millions): |
Three Months Ended December 31, | ||||||
2014 | 2015 | |||||
Foreign currency translation | ||||||
Beginning balance | $ | 171 | (622 | ) | ||
Other comprehensive income (loss) | (304 | ) | (153 | ) | ||
Ending balance | (133 | ) | (775 | ) | ||
Pension and postretirement | ||||||
Beginning balance | (746 | ) | (952 | ) | ||
Amortization of deferred actuarial losses into earnings | 28 | 26 | ||||
Ending balance | (718 | ) | (926 | ) | ||
Cash flow hedges | ||||||
Beginning balance | — | (43 | ) | |||
Deferral of gains (losses) arising during the period | (26 | ) | (3 | ) | ||
Reclassification of realized (gains) losses to sales and cost of sales | 2 | 9 | ||||
Ending balance | (24 | ) | (37 | ) | ||
Accumulated other comprehensive income (loss) | $ | (875 | ) | (1,738 | ) | |
Activity above is shown net of income taxes for the three months ended December 31, 2015 and 2014, respectively, as follows: amortization of pension and postretirement deferred actuarial losses: $(14) and $(15); deferral of cash flow hedging gains (losses): $2 and $17; reclassification of realized cash flow hedging (gains) losses: $(5) and $(1). |
7. | Total periodic pension and postretirement expense is summarized below (in millions): |
Three Months Ended December 31, | ||||||
2014 | 2015 | |||||
Service cost | $ | 27 | 22 | |||
Interest cost | 60 | 50 | ||||
Expected return on plan assets | (92 | ) | (88 | ) | ||
Net amortization | 43 | 40 | ||||
Total | $ | 38 | 24 |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
8. | Other deductions, net are summarized below (in millions): |
Three Months Ended December 31, | ||||||
2014 | 2015 | |||||
Amortization of intangibles | $ | 55 | 51 | |||
Rationalization of operations | 9 | 13 | ||||
Other | — | 50 | ||||
Total | $ | 64 | 114 |
9. | Rationalization of operations 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. The Company expects full year 2016 rationalization expense to be in the range of $60 to $70 million. This includes $13 million incurred to date, as well as costs to complete actions initiated before the end of the first quarter and actions anticipated to be approved and initiated during the remainder of the year. Costs for the three months ended December 31, 2015 largely relate to restructuring of the global cost structure consistent with the current level of economic activity, as well as the redeployment of resources for future growth. |
Three Months Ended December 31, | ||||||
2014 | 2015 | |||||
Process Management | $ | 3 | 4 | |||
Industrial Automation | 2 | 3 | ||||
Network Power | 1 | 4 | ||||
Climate Technologies | 2 | 1 | ||||
Commercial & Residential Solutions | 1 | 1 | ||||
Total | $ | 9 | 13 |
Sept 30, 2015 | Expense | Paid/Utilized | Dec 31, 2015 | |||||||||
Severance and benefits | $ | 105 | 6 | 46 | 65 | |||||||
Lease and other contract terminations | 1 | 1 | 1 | 1 | ||||||||
Vacant facility and other shutdown costs | 3 | 2 | 2 | 3 | ||||||||
Start-up and moving costs | 3 | 4 | 4 | 3 | ||||||||
Total | $ | 112 | 13 | 53 | 72 |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
10. | Summarized information about the Company's results of operations by business segment follows (in millions): |
Three Months Ended December 31, | ||||||||||||
Sales | Earnings | |||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||
Process Management | $ | 2,099 | 1,806 | 392 | 271 | |||||||
Industrial Automation | 1,152 | 808 | 164 | 95 | ||||||||
Network Power | 1,119 | 1,051 | 79 | 84 | ||||||||
Climate Technologies | 900 | 787 | 126 | 109 | ||||||||
Commercial & Residential Solutions | 480 | 392 | 103 | 85 | ||||||||
5,750 | 4,844 | 864 | 644 | |||||||||
Differences in accounting methods | 58 | 55 | ||||||||||
Corporate and other | (111 | ) | (150 | ) | ||||||||
Eliminations/Interest | (163 | ) | (131 | ) | (46 | ) | (46 | ) | ||||
Total | $ | 5,587 | 4,713 | 765 | 503 |
11. | In June 2015, the Company announced plans to spin off its network power systems business through a tax-free distribution to shareholders and to explore strategic alternatives, including potential sale, for its power generation and motors, drives, and residential storage businesses. These businesses together accounted for approximately $6.4 billion, $400 million and $500 million of consolidated 2015 sales, pretax earnings and cash flow, respectively. The Company currently estimates it will incur costs throughout 2016 to effect the portfolio repositioning as follows: approximately $250 to $350 million of expense for income taxes related to reorganizing the ownership structures of these businesses, investment banking, legal, consulting and other costs; and approximately $100 million in capitalized costs, including debt issuance costs, pension funding and the separation of information technology systems. In addition, the Company has received inquiries which could potentially lead to separation of the network power systems business through a sale transaction. There can be no assurance that the Company will not recognize a goodwill impairment charge or incur a loss on sale in connection with the separation of these businesses. With regard to the evaluation of strategic alternatives for the power generation and motors, drives, and residential storage businesses, it is uncertain whether the review process will result in any transaction. See the Company's 2015 Annual Report on Form 10-K for further information. |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
Three Months Ended December 31 | 2014 | 2015 | Change | ||||||
(dollars in millions, except per share amounts) | |||||||||
Net sales | $ | 5,587 | 4,713 | (16 | )% | ||||
Gross profit | $ | 2,280 | 1,889 | (17 | )% | ||||
Percent of sales | 40.8 | % | 40.1 | % | |||||
SG&A | $ | 1,405 | 1,226 | ||||||
Percent of sales | 25.1 | % | 26.0 | % | |||||
Other deductions, net | $ | 64 | 114 | ||||||
Interest expense, net | $ | 46 | 46 | ||||||
Earnings before income taxes | $ | 765 | 503 | (34 | )% | ||||
Percent of sales | 13.7 | % | 10.7 | % | |||||
Net earnings common stockholders | $ | 525 | 349 | (34 | )% | ||||
Percent of sales | 9.4 | % | 7.4 | % | |||||
Diluted earnings per share | $ | 0.75 | 0.53 | (29 | )% | ||||
Adjusted earnings per share | $ | 0.75 | 0.56 | (25 | )% |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
Three Months Ended Dec 31 | 2014 | 2015 | Change | ||||||
(dollars in millions) | |||||||||
Sales | $ | 2,099 | 1,806 | (14 | )% | ||||
Earnings | $ | 392 | 271 | (31 | )% | ||||
Margin | 18.7 | % | 15.0 | % |
Three Months Ended Dec 31 | 2014 | 2015 | Change | ||||||
(dollars in millions) | |||||||||
Sales | $ | 1,152 | 808 | (30 | )% | ||||
Earnings | $ | 164 | 95 | (42 | )% | ||||
Margin | 14.2 | % | 11.8 | % |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
Three Months Ended Dec 31 | 2014 | 2015 | Change | ||||||
(dollars in millions) | |||||||||
Sales | $ | 1,119 | 1,051 | (6 | )% | ||||
Earnings | $ | 79 | 84 | 7 | % | ||||
Margin | 7.1 | % | 8.0 | % |
Three Months Ended Dec 31 | 2014 | 2015 | Change | ||||||
(dollars in millions) | |||||||||
Sales | $ | 900 | 787 | (13 | )% | ||||
Earnings | $ | 126 | 109 | (14 | )% | ||||
Margin | 14.0 | % | 13.8 | % |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
Three Months Ended Dec 31 | 2014 | 2015 | Change | ||||||
(dollars in millions) | |||||||||
Sales | $ | 480 | 392 | (18 | )% | ||||
Earnings | $ | 103 | 85 | (18 | )% | ||||
Margin | 21.5 | % | 21.7 | % |
Sept 30, 2015 | Dec 31, 2015 | |||||
Working capital (in millions) | $ | 2,249 | 1,492 | |||
Current ratio | 1.3 | 1.2 | ||||
Total debt-to-total capital | 45.8 | % | 50.0 | % | ||
Net debt-to-net capital | 31.3 | % | 36.3 | % | ||
Interest coverage ratio | 21.8 | X | 10.3X |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||
October 2015 | — | $0.00 | — | 6,028 | |||
November 2015 | 4,060 | $48.70 | 4,060 | 71,968 | |||
December 2015 | 7,552 | $47.24 | 7,552 | 64,416 | |||
Total | 11,612 | $47.75 | 11,612 | 64,416 |
10.1 | Letter Agreement dated December 7, 2015 by and between Emerson Electric Co. and Charles A. Peters. | |
10.2 | Amended and Restated Emerson Electric Co. Pension Restoration Plan dated October 6, 2015 and Lump Sum Distribution Election Forms, incorporated by reference to Emerson Electric Co. 2015 Form 10-K, File No. 1-278, Exhibit 10(e). | |
10.3 | Form of Performance Shares Award Certificate and Acceptance of Award, 2016 Performance Shares Program Award Summary under the Emerson Electric Co. 2015 Incentive Shares Plan and Form of Restricted Shares Award Agreement, incorporated by reference to Emerson Electric Co. 2015 Form 10-K, File No. 1-278, Exhibit 10(u). | |
12 | Ratio of Earnings to Fixed Charges. | |
31 | Certifications pursuant to Exchange Act Rule 13a-14(a). | |
32 | Certifications pursuant to Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350. | |
101 | Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Earnings for the three months ended December 31, 2014 and 2015, (ii) Consolidated Statements of Comprehensive Income for the three months ended December 31, 2014 and 2015, (iii) Consolidated Balance Sheets as of September 30, 2015 and December 31, 2015, (iv) Consolidated Statements of Cash Flows for the three months ended December 31, 2014 and 2015, and (v) Notes to Consolidated Financial Statements for the three months ended December 31, 2015. |
EMERSON ELECTRIC CO. AND SUBSIDIARIES | FORM 10-Q |
EMERSON ELECTRIC CO. | ||||
By | /s/ Frank J. Dellaquila | |||
Frank J. Dellaquila | ||||
Executive Vice President and Chief Financial Officer | ||||
(on behalf of the registrant and as Chief Financial Officer) | ||||
February 3, 2016 |
Exhibit No. | Exhibit | ||
10.1 | Letter Agreement dated December 7, 2015 by and between Emerson Electric Co. and Charles A. Peters. | ||
12 | Ratio of Earnings to Fixed Charges. | ||
31 | Certifications pursuant to Exchange Act Rule 13a-14(a). | ||
32 | Certifications pursuant to Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350. | ||
101 | Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Earnings for the three months ended December 31, 2014 and 2015, (ii) Consolidated Statements of Comprehensive Income for the three months ended December 31, 2014 and 2015, (iii) Consolidated Balance Sheets as of September 30, 2015 and December 31, 2015, (iv) Consolidated Statements of Cash Flows for the three months ended December 31, 2014 and 2015, and (v) Notes to Consolidated Financial Statements for the three months ended December 31, 2015. |
Exhibit 10.1 |
David N. Farr |
Chairman and |
Chief Executive Officer |
Emerson |
8000 West Florissant Avenue |
P.O. Box 4100 |
St. Louis, MO 63136-8506 |
USA |
T 314 553 1850 |
F 314 553 1243 |
Sincerely, | ||
/s/ David N. Farr | ||
David N. Farr | ||
Chairman & Chief Executive Officer | ||
ACCEPTED AND AGREED TO THIS 7th | ||
DAY OF DECEMBER 2015: | ||
/s/ Charles A. Peters | ||
Charles A. Peters |
EMPLOYEE | |
/s/ Charles A. Peters | |
Charles A. Peters | |
Date: Dec 7, 2015 |
/s/ Charles A. Peters | |
Charles A. Peters |
Three Months Ended Dec 31, 2015 | ||||||||||||||||||||
Years ended September 30 | ||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 3,631 | 3,115 | 3,196 | 3,348 | 4,161 | 503 | |||||||||||||
Fixed charges | 370 | 373 | 373 | 355 | 331 | 86 | ||||||||||||||
Earnings, as defined | $ | 4,001 | 3,488 | 3,569 | 3,703 | 4,492 | 589 | |||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest Expense | $ | 246 | 241 | 234 | 218 | 200 | 54 | |||||||||||||
One-third of all rents | 124 | 132 | 139 | 137 | 131 | 32 | ||||||||||||||
Total fixed charges | $ | 370 | 373 | 373 | 355 | 331 | 86 | |||||||||||||
Ratio of Earnings to Fixed Charges | 10.8X | 9.4X | 9.6X | 10.4X | 13.6X | 6.8X |
/s/ D. N. Farr | ||
D. N. Farr | ||
Chairman of the Board and | ||
Chief Executive Officer | ||
Emerson Electric Co. | ||
February 3, 2016 |
/s/ F. J. Dellaquila | ||
F. J. Dellaquila | ||
Executive Vice President and | ||
Chief Financial Officer | ||
Emerson Electric Co. | ||
February 3, 2016 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ D. N. Farr | ||
D. N. Farr | ||
Chairman of the Board and | ||
Chief Executive Officer | ||
Emerson Electric Co. | ||
February 3, 2016 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ F. J. Dellaquila | ||
F. J. Dellaquila | ||
Executive Vice President and | ||
Chief Financial Officer | ||
Emerson Electric Co. | ||
February 3, 2016 |
Document and Entity Information Document - shares |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Jan. 31, 2016 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | EMERSON ELECTRIC CO | |
Entity Central Index Key | 0000032604 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 643,115,792 |
Consolidated Statements Of Earnings - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net sales | $ 4,713 | $ 5,587 |
Costs and expenses: | ||
Cost of sales | 2,824 | 3,307 |
Selling, general and administrative expenses | 1,226 | 1,405 |
Other deductions, net | 114 | 64 |
Interest expense (net of interest income of $8 and $7, respectively) | 46 | 46 |
Earnings before income taxes | 503 | 765 |
Income taxes | 151 | 236 |
Net earnings | 352 | 529 |
Less: Noncontrolling interests in earnings of subsidiaries | 3 | 4 |
Net earnings common stockholders | $ 349 | $ 525 |
Basic earnings per share common stockholders | $ 0.54 | $ 0.76 |
Diluted earnings per share common stockholders | 0.53 | 0.75 |
Cash dividends per common share | $ 0.475 | $ 0.47 |
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement [Abstract] | ||
Interest income | $ 8 | $ 7 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net earnings | $ 352 | $ 529 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | (153) | (305) |
Pension and postretirement | 26 | 28 |
Cash flow hedges | 6 | (24) |
Total other comprehensive income (loss) | (121) | (301) |
Comprehensive income | 231 | 228 |
Less: Noncontrolling interests in comprehensive income of subsidiaries | 3 | 3 |
Comprehensive income common stockholders | $ 228 | $ 225 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 122 | $ 128 |
Common stock, par value per share | $ 0.50 | $ 0.50 |
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 | 643,099,581 | 654,608,521 |
Treasury stock, shares | 310,254,431 | 298,745,491 |
Summary of Significant Accounting Policies |
3 Months Ended | ||||
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Dec. 31, 2015 | |||||
Summary of Significant Accounting Policies [Abstract] | |||||
Basis of Presentation And Recently Issued Accounting Pronouncements |
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Weighted Average Common Shares |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Common Shares |
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Other Financial Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Information | Other Financial Information (in millions):
The gross carrying amount of goodwill for the Company was $7,247 million and $7,299 million as of December 31, 2015 and September 30, 2015, respectively. Accumulated pretax goodwill impairment losses were $646 million at the end of both periods, all in the Network Power segment.
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Financial Instruments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments |
Hedging Activities – As of December 31, 2015, the notional amount of foreign currency hedge positions was approximately $1.5 billion, and commodity hedge contracts totaled approximately $147 million (primarily 59 million pounds of copper and aluminum). All derivatives receiving deferral accounting are cash flow hedges. The majority of hedging gains and losses deferred as of December 31, 2015 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 deferral accounting. The following gains and losses are included in earnings and other comprehensive income (OCI) for the three months ended December 31, 2015 and 2014 (in millions):
Regardless of whether derivatives receive deferral accounting, the Company expects hedging gains or losses to be essentially 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 deferral accounting are highly effective and no amounts were excluded from the assessment of hedge effectiveness. Hedge ineffectiveness was immaterial for the three months ended December 31, 2015 and 2014. Fair Value Measurement – Valuations for all derivatives and the Company's long-term debt fall within Level 2 of the GAAP valuation hierarchy. As of December 31, 2015, the fair value of long-term debt was $4,618 million, which exceeded the carrying value by $289 million. At December 31, 2015, the fair values of commodity contracts and foreign currency contracts were reported in other current assets and accrued expenses. Valuations of derivative contract positions are summarized below (in millions):
Counterparties to derivatives arrangements are companies with investment-grade credit ratings. The Company has bilateral collateral arrangements with counterparties with credit rating-based posting thresholds that vary depending on the arrangement. If credit ratings on the Company's debt fall below preestablished levels, counterparties can require immediate full collateralization of all derivatives in net liability positions. The maximum amount that could have potentially been required was $61 million. The Company also can demand full collateralization of derivatives in net asset positions should any counterparty credit ratings fall below certain thresholds. No collateral was posted with counterparties and none was held by the Company as of December 31, 2015. |
Equity Roll Forward |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity |
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Accumulated Other Comprehensive Income |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) |
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Pension & Postretirement Expenses |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension And Postretirement Plan Expenses |
Beginning in 2016, the Company refined the method used to determine the service and interest cost components of pension expense for its U.S. plans. The specific spot rates along the yield curve, rather than the single weighted-average rate previously used, are now applied to the projected cash flows to provide more precise measurement of these costs. This is a change in estimate which has been accounted for prospectively in the 2016 financial statements. The discount rates used to measure service and interest cost were 4.6 percent and 3.5 percent, respectively, compared with the single weighted-average rate of 4.35 percent which would have been used. The change will reduce interest and service cost by a total of $38 million ($0.04 per share) for fiscal 2016 compared with the cost measured using the weighted-average rate. |
Other Deductions, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Deductions, Net |
The increase in Other for the first quarter is primarily due to unfavorable foreign currency transactions of $27 million, reflecting foreign currency losses in the current year compared to gains in the prior year, and separation costs of $24 million ($22 million after tax, $0.03 per share) related to the planned portfolio repositioning actions. See Note 11. |
Rationalization Of Operations |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rationalization Of Operations |
Rationalization of operations expense by segment is provided below (in millions):
Details of the change in the liability for rationalization during the three months ended December 31, 2015 follow (in millions):
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Business Segment Information |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting |
Industrial Automation intersegment sales for the quarters ended December 31, 2015 and 2014 were $116 million and $145 million, respectively. The increase in corporate and other primarily reflects higher incentive stock compensation expense of $21 million and separation costs of $24 million. See Note 11. |
Planned Portfolio Repositioning Actions |
3 Months Ended |
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Dec. 31, 2015 | |
Planned Portfolio Repositioning Actions [Abstract] | |
Planned Portfolio Repositioning Actions | In June 2015, the Company announced plans to spin off its network power systems business through a tax-free distribution to shareholders and to explore strategic alternatives, including potential sale, for its power generation and motors, drives, and residential storage businesses. These businesses together accounted for approximately $6.4 billion, $400 million and $500 million of consolidated 2015 sales, pretax earnings and cash flow, respectively. The Company currently estimates it will incur costs throughout 2016 to effect the portfolio repositioning as follows: approximately $250 to $350 million of expense for income taxes related to reorganizing the ownership structures of these businesses, investment banking, legal, consulting and other costs; and approximately $100 million in capitalized costs, including debt issuance costs, pension funding and the separation of information technology systems. In addition, the Company has received inquiries which could potentially lead to separation of the network power systems business through a sale transaction. There can be no assurance that the Company will not recognize a goodwill impairment charge or incur a loss on sale in connection with the separation of these businesses. With regard to the evaluation of strategic alternatives for the power generation and motors, drives, and residential storage businesses, it is uncertain whether the review process will result in any transaction. See the Company's 2015 Annual Report on Form 10-K for further information. |
Weighted Average Common Shares (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule Of Basic And Diluted Earnings Per Share Reconciliation |
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Other Financial Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
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Property, Plant And Equipment, Net |
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Goodwill By Business Segment |
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Accrued Expenses |
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Other Liabilities |
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Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Derivative Instruments | The following gains and losses are included in earnings and other comprehensive income (OCI) for the three months ended December 31, 2015 and 2014 (in millions):
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Fair Value Measurements | Valuations of derivative contract positions are summarized below (in millions):
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Equity Roll Forward (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders' Equity | The change in equity for the first three months of 2016 is shown below (in millions):
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Accumulated Other Comprehensive Income (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 months ended December 31, 2015 and 2014 is shown below (in millions):
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Pension & Postretirement Expenses (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Pension and Postretirement Plan Expenses | Total periodic pension and postretirement expense is summarized below (in millions):
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Other Deductions, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Deductions, net | Other deductions, net are summarized below (in millions):
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Rationalization Of Operations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rationalization Of Operations By Segment | Rationalization of operations expense by segment is provided below (in millions):
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Change In Liability For Rationalization Costs | Details of the change in the liability for rationalization during the three months ended December 31, 2015 follow (in millions):
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Business Segment Information (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results Of Operations By Business Segment | Summarized information about the Company's results of operations by business segment follows (in millions):
|
Weighted Average Common Shares (Schedule Of Basic And Diluted Earnings Per Share Reconciliation) (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Basic shares outstanding | 650.0 | 691.4 |
Dilutive shares | 2.5 | 3.3 |
Diluted shares outstanding | 652.5 | 694.7 |
Equity Roll Forward (Schedule Of Change In Equity) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at September 30, 2015 | $ 8,128 | |
Net earnings common stockholders | 349 | $ 525 |
Noncontrolling interests in earnings | 3 | 4 |
Net earnings | 352 | 529 |
Other comprehensive income (loss) | (121) | $ (301) |
Cash dividends | (319) | |
Net purchases of common stock | (543) | |
Balance at December 31, 2015 | 7,497 | |
Parent Company [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at September 30, 2015 | 8,081 | |
Other comprehensive income (loss) | (121) | |
Cash dividends | (310) | |
Net purchases of common stock | (543) | |
Balance at December 31, 2015 | 7,456 | |
Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at September 30, 2015 | 47 | |
Other comprehensive income (loss) | 0 | |
Cash dividends | (9) | |
Net purchases of common stock | 0 | |
Balance at December 31, 2015 | $ 41 |
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
|
Accumulated other comprehensive income [Roll Forward] | |||
Accumulated other comprehensive income (loss) | $ (1,738) | $ (875) | $ (1,617) |
Foreign currency translation [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | (622) | 171 | |
Other comprehensive income (loss) | (153) | (304) | |
Ending balance | (775) | (133) | |
Pension and post retirement [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | (952) | (746) | |
Amortization of deferred actuarial losses into earnings | 26 | 28 | |
Ending balance | (926) | (718) | |
Cash Flow Hedges [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | (43) | 0 | |
Deferral of gains (losses) arising during the period | (3) | (26) | |
Reclassification of realized (gains) losses to sales and cost of sales | 9 | 2 | |
Ending balance | $ (37) | $ (24) |
Accumulated Other Comprehensive Income (Details 2) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Pension and post retirement [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of deferred actuarial losses, tax | $ (14) | $ (15) |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Deferred cash flow hedging gains (losses), tax | 2 | 17 |
Reclass of deferred cash flow hedging (losses), tax | $ (5) | $ (1) |
Pension & Postretirement Expenses (Summary Of Net Periodic Pension And Net Postretirement Plan Expenses) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2016 |
|
Pension And Postretirement Plan Expenses [Line Items] | |||
Service cost | $ 22 | $ 27 | |
Interest cost | 50 | 60 | |
Expected return on plan assets | (88) | (92) | |
Net amortization | 40 | 43 | |
Total | $ 24 | $ 38 | |
Change in Assumptions for Pension Plans [Member] | Scenario, Forecast [Member] | |||
Pension And Postretirement Plan Expenses [Line Items] | |||
Discount rate used to measure service cost for pension expense | 4.60% | ||
Discount rate used to measure interest cost for pension expense | 3.50% | ||
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate | 4.35% | ||
Change in estimated service cost and interest cost for pension expense | $ (38) | ||
Change in estimated service cost and interest cost for pension expense per share | $ (0.04) |
Other Deductions, Net (Schedule Of Other Deductions, Net) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other deductions, net [Line Items] | ||
Amortization of intangibles | $ 51 | $ 55 |
Rationalization of operations | 13 | 9 |
Other | 50 | 0 |
Total | 114 | $ 64 |
Change in gain (loss) from foreign currency transactions | (27) | |
Separation costs related to planned strategic repositioning actions | 24 | |
After-tax separation costs related to planned strategic actions | $ 22 | |
After-tax separation costs related to strategic repositioning actions per share | $ 0.03 |
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