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DISCONTINUED OPERATIONS | 12 Months Ended
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Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On May 31, 2023, the Company completed the 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 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 and a note receivable with a face value of $2.25 billion (which accrues 5 percent interest payable in kind by capitalizing interest), while retaining a 40 percent non-controlling common equity interest 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 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. On June 6, 2024, the Company entered into a definitive agreement to sell its 40 percent non-controlling common equity interest in Copeland to private equity funds managed by Blackstone for $1.5 billion. The transaction closed on August 13, 2024 and the Company recognized a gain of $539 ($435 after-tax) in discontinued operations. In addition, the equity method losses related to the Company's non-controlling common equity interest in Copeland, which were reported since May 2023 in Other deductions, net, have been reclassified and are now reported as discontinued operations for all periods presented and are included within Climate Technologies in Other deductions, net in the table below. See Note 8 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 2022. The Company recognized a pretax gain of approximately $2.8 billion (approximately $2.1 billion after-tax) in the first quarter of 2023. On May 31, 2022 the Company com pleted 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 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 all years presented and were as follows:
| Climate Technologies |  | ISE and TOD |  | Total
| 2022 |  |  | 2023 |  |  | 2024 |  |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | 2022 |  |  | 2023 |  |  | 2024 |
Net sales | $ | 4,976 |  |  | 3,156 |  |  | — |  |  | 848 |  |  | 49 |  |  | — |  |  | 5,824 |  |  | 3,205 |  |  | — |
Cost of sales | 3,405 |  |  | 2,000 |  |  | — |  |  | 538 |  |  | 29 |  |  | — |  |  | 3,943 |  |  | 2,029 |  |  | — |
SG&A | 514 |  |  | 390 |  |  | — |  |  | 119 |  |  | 7 |  |  | — |  |  | 633 |  |  | 397 |  |  | — |
Gain on sale of business | — |  |  | (10,610) |  |  | (539) |  |  | (486) |  |  | (2,783) |  |  | — |  |  | (486) |  |  | (13,393) |  |  | (539) |
Other deductions, net | 55 |  |  | 252 |  |  | 104 |  |  | 26 |  |  | 12 |  |  | — |  |  | 81 |  |  | 264 |  |  | 104 |
Earnings before income taxes | 1,002 |  |  | 11,124 |  |  | 435 |  |  | 651 |  |  | 2,784 |  |  | — |  |  | 1,653 |  |  | 13,908 |  |  | 435 |
Income taxes | 209 |  |  | 2,315 |  |  | 85 |  |  | 97 |  |  | 654 |  |  | — |  |  | 306 |  |  | 2,969 |  |  | 85 |
Earnings, net of tax | $ | 793 |  |  | 8,809 |  |  | 350 |  |  | 554 |  |  | 2,130 |  |  | — |  |  | 1,347 |  |  | 10,939 |  |  | 350 |
Climate Technologies' results for 2024 included a gain on the sale of the Company's 40 percent non-controlling common equity interest in Copeland of $539 ($435 after-tax), while 2023 include lower expense of $96 due to ceasing depreciation and amortization upon the held-for-sale classification and $57 of transaction-related costs reported in Other deductions, net. Equity method losses related to the Company's 40 percent non-controlling common equity interest in Copeland were $125 and $177 for 2024 and 2023, respectively. Income taxes for 2023 included approximately $2.2 billion for the gain on the Copeland transaction and subsidiary restructurings, and approximately $660 related to the gain on the InSinkErator divestiture. Net cash from operating and investing activities for Climate Technologies, InSinkErator and Therm-O-Disc were as follows:
| Climate Technologies |  | ISE and TOD |  | Total
| 2022 |  |  | 2023 |  |  | 2024 |  |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | 2022 |  |  | 2023 |  |  | 2024 |
Cash from operating activities | $ | 881 |  |  | (1,314) |  |  | 15 |  |  | (7) |  |  | (759) |  |  | — |  |  | 874 |  |  | (2,073) |  |  | 15 |
Cash from investing activities | $ | (202) |  |  | 9,475 |  |  | 3,436 |  |  | 552 |  |  | 3,055 |  |  | — |  |  | 350 |  |  | 12,530 |  |  | 3,436 |
Cash from operating activities for 2023 reflects approximately $2.3 billion of income taxes paid related to the gains on the Copeland transaction and InSinkErator divestiture and subsidiary restructurings related to the Copeland transaction. Cash from investing activities for 2024 reflects the proceeds of approximately $1.5 billion related to the sale of the Company's 40 percent non-controlling common equity interest in Copeland and $1.9 billion related to the sale of the note receivable, while 2023 reflects the proceeds of approximately $9.7 billion related to the Copeland transaction and approximately $3.0 billion related to the InSinkErator divestiture.

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- 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
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