Business Segments

3 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

As disclosed in Note 5, the financial results of Climate Technologies, InSinkErator and Therm-O-Disc are reported as discontinued operations for all periods presented. As a result of these portfolio actions, the Company has realigned its business segments and now reports six segments and two business groups, which are highlighted in the table below. The Company also reclassified certain product sales that were previously reported in Control Systems & Software to Discrete Automation.

INTELLIGENT DEVICES	SOFTWARE AND CONTROL
•Final Control	•Control Systems & Software
•Measurement & Analytical	•AspenTech
•Discrete Automation
•Safety & Productivity

The new segments were previously described as follows: Final Control was the Valves, Actuators & Regulators product offering; Measurement & Analytical was the Measurement & Analytical instrumentation product offering; Discrete Automation was the Industrial Solutions product offering; Safety & Productivity was the Tools & Home Products segment, excluding the divested InSinkErator business; Control Systems & Software was the Systems & Software product offering; and, AspenTech remains unchanged. The AspenTech segment was identified in the third quarter of fiscal 2022 as a result of the Heritage AspenTech acquisition and reflects the combined results of Heritage AspenTech and the Emerson Industrial Software Business (see Note 4 for further details). The results for this new segment include the historical results of the Emerson Industrial Software Business (which were previously reported in the Control Systems & Software segment), while results related to the Heritage AspenTech business only include periods subsequent to the close of the transaction. Prior year amounts have been reclassified to conform to the current year presentation.

	Three Months Ended December 31,
	Sales			Earnings
	2021		2022	2021	2022
Final Control	$	817	862	122	158
Measurement & Analytical	737		749	170	175
Discrete Automation	617		618	120	121
Safety & Productivity	351		310	65	63
Intelligent Devices	2,522		2,539	477	517
Control Systems & Software	570		606	116	107
AspenTech	82		243	(2)	(33)
Software and Control	652		849	114	74
Stock compensation				(34)	(102)
Unallocated pension and postretirement costs				26	45
Corporate and other				(55)	(64)
Gain on subordinated interest				453	—
Eliminations/Interest	(18)		(15)	(39)	(48)
Total	$	3,156	3,373	942	422

Corporate and other for the three months ended December 31, 2022 included a loss of $47 related to the Company's exit of business operations in Russia and a mark-to-market gain of $35 related to foreign currency forward contracts entered into by AspenTech to mitigate the impact of foreign currency exchange associated with the Micromine purchase price, while the three months ended December 31, 2021 included acquisition/divestiture costs of $23.

Depreciation and amortization (includes intellectual property, customer relationships and capitalized software) by business segment are summarized below:

	Three Months Ended December 31,
		2021		2022
Final Control		$	53	45
Measurement & Analytical		31		30
Discrete Automation		23		21
Safety & Productivity		15		14
Intelligent Devices		122		110
Control Systems & Software		25		21
AspenTech		23		123
Software and Control		48		144
Corporate and other		8		6
Total		$	178	260

Sales by geographic destination, Americas, Asia, Middle East & Africa ("AMEA") and Europe, are summarized below:

	Three Months Ended December 31,						Three Months Ended December 31,
		2021					2022
		Americas		AMEA	Europe	Total	Americas	AMEA	Europe	Total
Final Control		$	352	336	129	817	446	308	108	862
Measurement & Analytical		311		296	130	737	396	246	107	749
Discrete Automation		274		183	160	617	291	175	152	618
Safety & Productivity		270		16	65	351	236	17	57	310
Intelligent Devices		1,207		831	484	2,522	1,369	746	424	2,539
Control Systems & Software		268		173	129	570	294	185	127	606
AspenTech		54		16	12	82	112	63	68	243
Software and Control		322		189	141	652	406	248	195	849
Total		$	1,529	1,020	625	3,174	1,775	994	619	3,388