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DISCONTINUED OPERATIONS | 9 Months Ended
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Jun. 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 fiscal 2022) to private equity funds managed by Blackstone in a $14.0 billion transaction. Emerson received upfront, pretax 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 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 in the third quarter of fiscal 2023 (approximately $8.4 billion after-tax including tax expense recognized prior to the completion of the transaction 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, and the transaction is expected to close by the end of August 2024. 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 tables below. 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. For the three and nine months ended June 30, 2024, the results of discontinued operations primarily reflect the Company's equity method losses on its non-controlling common equity interest in Copeland, which were $16 ($9 after-tax) and $111 ($82 after-tax), respectively. For the three and nine months ended June 30, 2023, the financial results of Climate Technologies (including equity method losses on the equity interest in Copeland) and InSinkErator ("ISE") are reported as discontinued operations and were as follows:
| Three Months Ended June 30, 2023
| Climate Technologies |  | ISE |  | Total
Net sales | $ | 847 |  |  | — |  |  | 847 |
Cost of sales | 516 |  |  | — |  |  | 516 |
SG&A | 122 |  |  | — |  |  | 122 |
Gain on sale of business | (10,576) |  |  | — |  |  | (10,576) |
Other deductions, net | 69 |  |  | — |  |  | 69 |
Earnings before income taxes | 10,716 |  |  | — |  |  | 10,716 |
Income taxes | 2,004 |  |  | — |  |  | 2,004 |
Earnings, net of tax | $ | 8,712 |  |  | — |  |  | 8,712 |
| Nine Months Ended June 30, 2023
| Climate Technologies |  | ISE |  | Total
Net sales | $ | 3,156 |  |  | 49 |  |  | 3,205 |
Cost of sales | 2,000 |  |  | 29 |  |  | 2,029 |
SG&A | 391 |  |  | 8 |  |  | 399 |
Gain on sale of business | (10,576) |  |  | (2,783) |  |  | (13,359) |
Other deductions, net | 136 |  |  | 12 |  |  | 148 |
Earnings before income taxes | 11,205 |  |  | 2,783 |  |  | 13,988 |
Income taxes | 2,356 |  |  | 653 |  |  | 3,009 |
Earnings, net of tax | $ | 8,849 |  |  | 2,130 |  |  | 10,979 |
Climate Technologies' results for the three and nine months ended June 30, 2023 included 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. For the three and nine months ended June 30, 2023, the Company recorded a loss of $61 in Other deductions, net to reflect equity method losses on its non-controlling common equity interest in Copeland. Income taxes for the three and nine months ended June 30, 2023 included a tax benefit of $10 related to Copeland's U.S. business, which is taxed as a partnership. Income taxes for the nine months ended June 30, 2023 included approximately $2.2 billion for the gain on the Climate Technologies 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 for the nine months ended June 30, 2024 and 2023 were as follows:
| Climate Technologies |  | ISE and TOD |  |  | Total
| Nine Months Ended June 30, |  | Nine Months Ended June 30, |  | Nine Months Ended June 30, |
|  | 2023 |  |  |  | 2024 |  |  |  | 2023 |  |  |  | 2024 |  |  |  | 2023 |  |  |  | 2024 |  |
Cash from operating activities |  | $ | 156 |  |  |  | 4 |  |  |  | (595) |  |  |  | — |  |  |  | (439) |  |  |  | 4 |  |
Cash from investing activities |  | $ | 9,430 |  |  |  | 36 |  |  |  | 3,055 |  |  |  | — |  |  |  | 12,485 |  |  |  | 36 |  |
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, transaction fees and unfavorable working capital. 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.

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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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