Emerson 2008 Annual Report Download - page 55

[ 48 ] Emerson 2008
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At September 30, 2008, 47,241,751 shares of common stock were reserved, primarily for issuance under the Company’s
stock-based compensation plans. During 2008, 22,404,300 treasury shares were acquired and 5,186,261 treasury
shares were issued.
Approximately 1.2 million preferred shares are reserved for issuance under a Preferred Stock Purchase Rights Plan.
Under certain conditions involving the acquisition of or an offer for 20 percent or more of the Company’s common
stock, all holders of Rights, except an acquiring entity, would be entitled (i) to purchase, at an exercise price of $260,
common stock of the Company or an acquiring entity with a value twice the exercise price, or (ii) at the option of
the Board, to exchange each Right for one share of common stock. The Rights remained in existence until
November 1, 2008.
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The Company designs and supplies product technology and delivers engineering services in a wide range of industrial,
commercial and consumer markets around the world. The divisions of the Company are organized primarily by the
nature of the products and services provided. The Process Management segment includes systems and software,
measurement and analytical instrumentation, valves, actuators and regulators, and services and solutions that provide
precision control, monitoring and asset optimization for plants that produce power or that process uids, such as
petroleum, chemicals, food and beverages, pulp and paper, and pharmaceuticals. The Industrial Automation segment
includes industrial motors and drives, power transmission equipment, alternators, materials joining and precision
cleaning, uid power and control, and electrical distribution equipment, which are used in a wide variety of manufac-
turing operations and materials handling products and generators to provide integrated manufacturing solutions to
our customers. The Network Power segment designs, manufactures, installs and maintains power systems, including
power conditioning and uninterruptible power supplies, embedded power supplies, precision cooling systems, elec-
trical switching equipment, and site monitoring systems for telecommunications networks, data centers and other
critical applications. The Climate Technologies segment consists of compressors, temperature sensors and controls,
thermostats, ow controls, and remote monitoring services provided to all areas of the climate control industry. The
Appliance and Tools segment includes general and special purpose motors and controls, appliances and appliance
components, plumbing tools, and storage products used in a wide variety of commercial and residential applications.
The principal distribution method for each segment is a direct sales force, although the Company also uses indepen-
dent sales representatives and distributors.
The primary income measure used for assessing performance and making operating decisions is earnings before
interest and income taxes. Intersegment sales approximate market prices. Accounting method differences between
segment reporting and the consolidated nancial statements include primarily management fees allocated to
segments based on a percentage of sales and the accounting for pension and other retirement plans. Gains and losses
from divestitures of businesses are included in Corporate and other. Corporate assets include primarily cash and
equivalents, pensions, investments, and certain xed assets.
Summarized information about the Company’s operations by business segment and by geographic area follows:
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(See Notes 3, 4, 5 and 6)
 s A l e s e A R n i n G s t o t A l A s s e t s
  2006  2007  2008  2006  2007  2008  2006  2007  2008
Process Management $ 4,875 5,699 6,652 878 1,066 1,306 4,146 4,902 5,152
Industrial Automation 3,767 4,269 4,852 569 665 727 2,941 3,141 3,357
Network Power 4,350 5,150 6,312 484 645 794 4,436 4,758 5,433
Climate Technologies 3,424 3,614 3,822 523 538 551 2,129 2,156 2,201
Appliance and Tools 3,914 4,006 3,861 539 564 527 2,670 2,630 2,153
20,330 22,738 25,499 2,993 3,478 3,905 16,322 17,587 18,296
Differences in accounting methods 176 210 232
Corporate and other (a) (289) (367) (358) 2,350 2,093 2,744
Sales eliminations / Interest (596) (607) (692) (207) (228) (188)
Total $19,734 22,131 24,807 2,673 3,093 3,591 18,672 19,680 21,040
(a) Corporate and other decreased from 2007 to 2008 primarily because of lower incentive stock compensation
cost (see Note 14), substantially offset by a number of items including an increase in spending on corporate
initiatives, commodity hedging-related mark-to-market expense, in-process research and development, higher