Emerson 2014 Annual Report Download - page 56

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2014 Emerson > 52
The primary income measure used for assessing segment performance and making operating decisions is earnings
before interest and income taxes. Intersegment selling prices approximate market prices. Accounting method
differences between segment reporting and the consolidated financial statements are primarily management fees
allocated to segments based on a percentage of sales and the accounting for pension and other retirement plans.
Corporate and other includes stock compensation expense, and goodwill impairment charges when applicable.
Corporate assets are primarily comprised of cash and equivalents, investments and certain fixed assets. Summarized
below is information about the Company’s operations by business segment and by geography. See Notes 3 through 6.
BUSINESS SEGMENTS
sales earnings total assets
2012 2013 2014 2012 2013 2014 2012 2013 2014
Process Management $ 7,899 8,610 9,189 $ 1,599 1,809 1,918 $ 6,607 6,878 7,771
Industrial Automation 5,188 4,885 4,990 871 777 802 3,619 3,606 3,574
Network Power 6,399 6,155 5,073 624 554 459 7,212 6,603 5,233
Climate Technologies 3,766 3,876 4,109 668 716 737 2,260 2,245 2,378
Commercial & Residential Solutions 1,877 1,865 1,924 396 404 424 1,155 1,153 1,152
25,129 25,391 25,285 4,158 4,260 4,340 20,853 20,485 20,108
Differences in accounting methods 226 221 252
Corporate and other (a) (1,045) (1,067) (1,050) 2,965 4,226 4,069
Sales eliminations/Interest (717) (722) (748) (224) (218) (194)
Total $24,412 24,669 24,537 $ 3,115 3,196 3,348 $23,818 24,711 24,177
(a) Corporate and other includes pretax goodwill impairment charges of $508, $528 and $592 in 2014, 2013 and 2012, respectively.
Corporate and other also includes stock compensation expense, which increased $121 in 2013 and decreased $78 in 2014. See Note 14.
depreciation and
intersegment sales amortization expense capital expenditures
2012 2013 2014 2012 2013 2014 2012 2013 2014
Process Management $ 13 6 8 $198 201 249 $228 276 300
Industrial Automation 619 631 664 138 145 145 134 124 123
Network Power 38 39 27 256 238 198 101 88 68
Climate Technologies 45 44 47 133 130 132 106 100 145
Commercial & Residential Solutions 2 2 2 53 53 52 46 40 49
Corporate and other 45 52 55 50 50 82
Total $717 722 748 $823 819 831 $665 678 767
GEOGRAPHIC INFORMATION
sales By destination property, plant and eQuipment
2012 2013 2014 2012 2013 2014
United States and Canada $10,980 10,964 11,262 $1,918 1,969 2,036
Asia 5,790 5,888 5,483 592 518 602
Europe 4,946 4,841 4,815 689 772 803
Latin America 1,430 1,555 1,508 293 308 306
Middle East/Africa 1,266 1,421 1,469 17 38 55
Total $24,412 24,669 24,537 $3,509 3,605 3,802
Sales in the U.S. were $10,310, $10,000 and $10,036 for 2014, 2013 and 2012, respectively, while Asia includes sales
in China of $2,853, $3,122 and $3,012 in those years. Assets located in the U.S. were $2,022 in 2014, $1,952 in 2013
and $1,900 in 2012.