XML 23 R14.htm IDEA: XBRL DOCUMENT
v3.23.2

Discontinued Operations and Disposal Groups | 9 Months Ended
--- | ---
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | DISCONTINUED OPERATIONSOn May 31, 2023, the Company completed the previously announced sale of a majority stake in its Climate Technologies business (which constitutes the former Climate Technologies segment, excluding Therm-O-Disc which was divested earlier in fiscal 2022) to private equity funds managed by Blackstone in a $14.0 billion transaction. Emerson received upfront, pre-tax cash proceeds of approximately $9.7 billion (an increase of $0.2 billion from when the transaction was announced due to Blackstone's decision to purchase an additional 5 percent of the common equity) and a note receivable with a face value of $2.25 billion (which will accrue 5 percent interest payable in kind by capitalizing interest), while retaining a 40 percent non-controlling common equity interest (down from 45 percent when the transaction was announced) in a new standalone joint venture between Emerson and Blackstone. The Climate Technologies business, which includes the Copeland compressor business and the entire portfolio of products and services across all residential and commercial HVAC and refrigeration end-markets, had fiscal 2022 net sales of approximately $5.0 billion and pretax earnings of $1.0 billion. The Company recognized a pretax gain of approximately $10.6 billion (approximately $8.4 billion after-tax including tax expense recognized in prior quarters related to subsidiary restructurings). The new standalone business is named Copeland. See Note 10 for further details. On October 31, 2022, the Company completed the divestiture of its InSinkErator business, which manufactures food waste disposers, to Whirlpool Corporation for $3.0 billion. This business had net sales of $630 and pretax earnings of $152 in fiscal 2022. The Company recognized a pretax gain of approximately $2.8 billion (approximately $2.1 billion after-tax) in the first quarter of fiscal 2023. On May 31, 2022 the Company completed the divestiture of its Therm-O-Disc sensing and protection technologies business to an affiliate of One Rock Capital Partners, LLC. The Company recognized a pretax gain of $486 ($429 after-tax) in the third fiscal quarter of 2022. The financial results of Climate Technologies, InSinkErator ("ISE") and Therm-O-Disc ("TOD") (through the completion of the divestitures), are reported as discontinued operations for the three and nine months ended June 30, 2023 and 2022 and were as follows:
| Climate Technologies |  | ISE and TOD |  |  | Total
| Three Months Ended June 30, |  | Three Months Ended June 30, |  | Three Months Ended June 30,
|  | 2022 |  |  |  | 2023 |  |  |  | 2022 |  |  |  | 2023 |  |  |  | 2022 |  |  |  | 2023 |
Net sales |  | $ | 1,325 |  |  |  | 847 |  |  |  | 215 |  |  |  | — |  |  |  | 1,540 |  |  |  | 847 |
Cost of sales |  | 892 |  |  |  | 516 |  |  |  | 137 |  |  |  | — |  |  |  | 1,029 |  |  |  | 516 |
SG&A |  | 129 |  |  |  | 122 |  |  |  | 29 |  |  |  | — |  |  |  | 158 |  |  |  | 122 |
Gain on sale of business |  | — |  |  |  | (10,576) |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (10,576) |
Other deductions, net |  | 14 |  |  |  | 8 |  |  |  | (478) |  |  |  | — |  |  |  | (464) |  |  |  | 8 |
Earnings before income taxes |  | 290 |  |  |  | 10,777 |  |  |  | 527 |  |  |  | — |  |  |  | 817 |  |  |  | 10,777 |
Income taxes |  | 63 |  |  |  | 2,014 |  |  |  | 57 |  |  |  | — |  |  |  | 120 |  |  |  | 2,014 |
Earnings, net of tax |  | $ | 227 |  |  |  | 8,763 |  |  |  | 470 |  |  |  | — |  |  |  | 697 |  |  |  | 8,763 |
| Climate Technologies |  | ISE and TOD |  |  | Total
| Nine Months Ended June 30, |  | Nine Months Ended June 30, |  | Nine Months Ended June 30,
|  | 2022 |  |  |  | 2023 |  |  |  | 2022 |  |  |  | 2023 |  |  |  | 2022 |  |  |  | 2023 |
Net sales |  | $ | 3,659 |  |  |  | 3,156 |  |  |  | 698 |  |  |  | 49 |  |  |  | 4,357 |  |  |  | 3,205 |
Cost of sales |  | 2,520 |  |  |  | 2,000 |  |  |  | 443 |  |  |  | 29 |  |  |  | 2,963 |  |  |  | 2,029 |
SG&A |  | 383 |  |  |  | 391 |  |  |  | 98 |  |  |  | 8 |  |  |  | 481 |  |  |  | 399 |
Gain on sale of business |  | — |  |  |  | (10,576) |  |  |  | — |  |  |  | (2,783) |  |  |  | — |  |  |  | (13,359) |
Other deductions, net |  | 26 |  |  |  | 75 |  |  |  | (465) |  |  |  | 12 |  |  |  | (439) |  |  |  | 87 |
Earnings before income taxes |  | 730 |  |  |  | 11,266 |  |  |  | 622 |  |  |  | 2,783 |  |  |  | 1,352 |  |  |  | 14,049 |
Income taxes |  | 158 |  |  |  | 2,366 |  |  |  | 102 |  |  |  | 653 |  |  |  | 260 |  |  |  | 3,019 |
Earnings, net of tax |  | $ | 572 |  |  |  | 8,900 |  |  |  | 520 |  |  |  | 2,130 |  |  |  | 1,092 |  |  |  | 11,030 |
Climate Technologies' results for the three and nine months ended June 30, 2023 include lower expense of $26 and $96, respectively, due to ceasing depreciation and amortization upon the held-for-sale classification. Other deductions, net for Climate Technologies included $57 of transaction-related costs for the nine months ended June 30, 2023. Income taxes for the nine months ended June 30, 2023 included approximately $2.2 billion for the gain on the Copeland transaction and subsidiary restructurings in prior quarters, and approximately $660 related to the gain on the InSinkErator divestiture. The aggregate carrying amounts of the major classes of assets and liabilities classified as held-for-sale as of June 30, 2023 and September 30, 2022 are summarized as follows:
| Climate Technologies |  | ISE |  | Total
|  | Sept. 30, |  |  | June 30, |  |  | Sept. 30, |  |  | June 30, |  |  | Sept. 30, |  |  | June 30,
Assets |  | 2022 |  |  |  | 2023 |  |  |  | 2022 |  |  |  | 2023 |  |  |  | 2022 |  |  |  | 2023 |
Receivables |  | $ | 747 |  |  |  | — |  |  |  | 68 |  |  |  | — |  |  |  | 815 |  |  |  | — |
Inventories |  | 449 |  |  |  | — |  |  |  | 81 |  |  |  | — |  |  |  | 530 |  |  |  | — |
Other current assets |  | 49 |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | 53 |  |  |  | — |
Property, plant & equipment, net |  | 1,122 |  |  |  | — |  |  |  | 141 |  |  |  | — |  |  |  | 1,263 |  |  |  | — |
Goodwill |  | 716 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 718 |  |  |  | — |
Other noncurrent assets |  | 265 |  |  |  | — |  |  |  | 12 |  |  |  | — |  |  |  | 277 |  |  |  | — |
Total assets held-for-sale |  | $ | 3,348 |  |  |  | — |  |  |  | 308 |  |  |  | — |  |  |  | 3,656 |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 752 |  |  |  | — |  |  |  | 60 |  |  |  | — |  |  |  | 812 |  |  |  | — |
Other current liabilities |  | 475 |  |  |  | — |  |  |  | 61 |  |  |  | — |  |  |  | 536 |  |  |  | — |
Deferred taxes and other noncurrent liabilities |  | 154 |  |  |  | — |  |  |  | 13 |  |  |  | — |  |  |  | 167 |  |  |  | — |
Total liabilities held-for-sale |  | $ | 1,381 |  |  |  | — |  |  |  | 134 |  |  |  | — |  |  |  | 1,515 |  |  |  | — |
Net cash from operating and investing activities for Climate Technologies, InSinkErator and Therm-O-Disc for the nine months ended June 30, 2023 and 2022 were as follows:
| Climate Technologies |  | ISE and TOD |  |  | Total
| Nine Months Ended June 30, |  | Nine Months Ended June 30, |  | Nine Months Ended June 30, |
|  | 2022 |  |  |  | 2023 |  |  |  | 2022 |  |  |  | 2023 |  |  |  | 2022 |  |  |  | 2023 |  |
Cash from operating activities |  | $ | 486 |  |  |  | 156 |  |  |  | (16) |  |  |  | (595) |  |  |  | 470 |  |  |  | (439) |  |
Cash from investing activities |  | $ | (112) |  |  |  | 9,430 |  |  |  | 551 |  |  |  | 3,055 |  |  |  | 439 |  |  |  | 12,485 |  |
Cash from operating activities for the nine months ended June 30, 2023 reflects approximately $750 of income taxes paid related to the gain on the InSinkErator divestiture and the Climate Technologies subsidiary restructurings and the impact from transaction fees. Cash from investing activities for the nine months ended June 30, 2023 reflects the proceeds of approximately $9.7 billion related to the Copeland transaction and approximately $3.0 billion related to the InSinkErator divestiture.

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration