Emerson 2005 Annual Report Download - page 49

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E M E R S O N 2 0 0 5 3 7
(4) OTHER DEDUCTIONS, NET
Other deductions, net are summarized as follows:
2003 2004 2005
Rationalization of operations $141 129 110
Impairment 54 3 —
Amortization of intangibles 17 21 28
Other 130 97 118
Gains (24) (27) (26)
Total $318 223 230
An approximate $13 gain from the sale of a manufacturing facility and an approximate $13 gain for a payment received under the U.S.
Continued Dumping and Subsidy Offset Act (Byrd Amendment) were recorded in 2005. In January 2004, the Company sold 2 million shares
of MKS Instruments, Inc., a publicly-traded company, and continues to hold 9.7 million shares at September 30, 2005. The Company also
sold its investment in the Louisville Ladder joint venture in 2004. The Company recorded a pretax gain of $27 in the second quarter of 2004
from these transactions. Pretax gains from divestitures were $24 in 2003.
Other is comprised of several items which are individually immaterial, including minority interest expense, foreign currency gains and
losses, bad debt expense, equity investment income and losses, as well as one-time gains and losses, such as litigation and disputed
matters, insurance recoveries, interest refunds and contract settlement gains.
(5) RATIONALIZATION OF OPERATIONS
The change in the liability for rationalization of operations follows:
September 30, September 30,
2004 Expense Paid / Utilized 2005
Severance and benefits $23 50 51 22
Lease/contract terminations 18 12 19 11
Fixed asset writedowns — 3 3 —
Vacant facility and other shutdown costs 3 13 16 —
Start-up and moving costs 2 32 34 —
$46 110 123 33
September 30, September 30,
2003 Expense Paid / Utilized 2004
Severance and benefits $20 50 47 23
Lease/contract terminations 25 12 19 18
Fixed asset writedowns — 9 9 —
Vacant facility and other shutdown costs 2 24 23 3
Start-up and moving costs 5 34 37 2
$52 129 135 46
Rationalization of operations by segment is summarized as follows:
2003 2004 2005
Process Management $ 36 31 20
Industrial Automation 20 14 15
Network Power 39 26 35
Climate Technologies 20 17 15
Appliance and Tools 36 47 24
Corporate (2) (6) 1
Discontinued operations (a) (8) — —
Total $141 129 110
(a) Discontinued operations eliminates the operating results of discontinued operations related to Dura-Line, which are included in the
Network Power segment amounts.