Emerson 2005 Annual Report Download - page 59

E M E R S O N 2 0 0 5 4 7
(16) BUSINESS SEGMENT INFORMATION
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 for automated industrial processes. The Industrial Automation segment includes
industrial motors and drives, power transmission equipment, alternators, materials joining and precision cleaning, fluid power and
control, materials testing, and electrical distribution equipment. The Network Power segment consists of uninterruptible power supplies,
power conditioning and electrical switching equipment, and precision cooling, site monitoring and connectivity systems. The Climate
Technologies segment consists of compressors, temperature sensors and controls, thermostats, flow controls, and remote monitoring
services. The Appliance and Tools segment includes general and special purpose motors and controls, appliances and appliance
components, as well as hand and plumbing tools, and storage products.
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 financial
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, investments, pensions, deferred charges, and certain fixed assets.
Summarized information about the Company’s operations by business segment and by geographic area follows:
Business Segments
(See Notes 3, 4, 5 and 6)
Sales Earnings Total Assets
2003 2004 2005 2003 2004 2005 2003 2004 2005
Process Management $ 3,394 3,703 4,200 388 476 671 3,531 3,634 3,894
Industrial Automation 2,600 2,936 3,242 330 391 464 2,422 2,503 2,698
Network Power 2,316 2,692 3,317 168 297 373 2,721 3,234 3,379
Climate Technologies 2,614 2,983 3,041 386 467 453 1,871 1,887 1,956
Appliance and Tools 3,453 3,749 4,008 479 530 534 2,388 2,440 2,526
14,377 16,063 17,808 1,751 2,161 2,495 12,933 13,698 14,453
Discontinued operations (a) (41) — — 12 — —
Differences in accounting methods 127 126 145
Corporate and other (b) (245) (225) (282) 2,261 2,663 2,774
Sales eliminations / Interest (378) (448) (503) (231) (210) (209)
Total $13,958 15,615 17,305 1,414 1,852 2,149 15,194 16,361 17,227
(a) Discontinued operations eliminates Dura-Line’s sales and operating loss, which are included in the Network Power segment and the
geographic amounts.
(b) Corporate and other decreased from 2003 to 2004 due to an impairment charge in 2003 (see Note 3), partially offset by higher incentive
compensation cost and other items, which also drove the increase from 2004 to 2005 (see Note 14).
Depreciation and
Intersegment Sales Amortization Expense Capital Expenditures
2003 2004 2005 2003 2004 2005 2003 2004 2005
Process Management $ 2 3 2 114 117 125 69 75 89
Industrial Automation 15 14 19 97 96 95 55 67 68
Network Power 4 9 9 71 70 76 34 36 55
Climate Technologies 26 32 37 107 120 118 65 94 148
Appliance and Tools 331 390 436 136 141 134 102 108 136
Corporate and other 9 13 14 12 20 22
Total $378 448 503 534 557 562 337 400 518