Emerson 2010 Annual Report Download - page 54

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(15) Common Stock
At September 30, 2010, approximately 42 million shares of common stock were reserved for issuance under the
Company’s stock-based compensation plans. During 2010, 2.1 million common shares were repurchased and
2.9 million treasury shares were issued.
(16) Business Segments 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 business segments of the Company are organized primarily
by the nature of the products and services they sell. The Process Management segment provides systems and soft-
ware, 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 process fluids such as
petroleum, chemicals, food and beverages, pulp and paper and pharmaceuticals. The Industrial Automation segment
provides commercial and industrial motors and drives, power transmission and materials handling equipment, alterna-
tors, materials joining and precision cleaning products, fluid power and control mechanisms and electrical distribution
equipment which are used in a wide variety of manufacturing operations to provide integrated manufacturing
solutions to customers. The Network Power segment designs, manufactures, installs and maintains power systems,
including power conditioning and uninterruptible AC and DC power supplies, embedded power supplies, precision
cooling systems, electrical switching equipment, and integrated infrastructure monitoring and management systems
for telecommunications networks, data centers and other critical applications. The Climate Technologies segment
supplies compressors, temperature sensors and controls, thermostats, flow controls and remote monitoring services to
all elements of the climate control industry. The Tools and Storage segment provides tools for professionals and home-
owners, home and commercial storage systems, and appliance solutions. The principal distribution method for each
segment is a direct sales force, although the Company also uses independent sales representatives and distributors.
Certain of the Company’s international operations are subject to risks such as nationalization of operations, significant
currency exchange rate fluctuations and restrictions on the movement of funds.
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 differ-
ences 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. Gains and
losses from divestitures of businesses are included in Corporate and other. Corporate assets include primarily cash and
equivalents, investments and certain fixed assets.
Summarized below is information about the Company’s operations by business segment and by geographic region
(also see Notes 3 through 6). In conjunction with the sale of the appliance motors and U.S. commercial and industrial
motors businesses, segment disclosures reflect the reclassification of those businesses into discontinued operations,
and the movement of the retained hermetic motors business from Tools and Storage (formerly Appliance and Tools) to
Industrial Automation.
BUSINESS SEGMENTS
sales earnings total assets
2008 2009 2010 2008 2009 2010 2008 2009 2010
Process Management $ 6,548 6,135 6,022 1,301 1,060 1,093 5,093 5,283 5,406
Industrial Automation 5,389 4,172 4,289 865 470 591 3,553 3,420 3,688
Network Power 6,416 5,456 5,828 807 579 800 5,492 4,973 8,072
Climate Technologies 3,822 3,197 3,801 569 411 691 2,201 2,131 2,172
Tools and Storage 2,248 1,725 1,755 421 276 357 1,957 1,804 1,314
24,423 20,685 21,695 3,963 2,796 3,532 18,296 17,611 20,652
Differences in accounting methods 223 179 195
Corporate and other (a) (353) (305) (587) 2,744 2,152 2,191
Sales eliminations/Interest (672) (583) (656) (188) (220) (261)
Total $23,751 20,102
21,039 3,645 2,450 2,879 21,040 19,763 22,843
(a) Corporate and other increased from 2009 to 2010 primarily reflecting higher incentive stock compensation expense related to an
increase in the Company’s stock price and the overlap of two incentive stock compensation plans in the current year (see Note 14),
and acquisition costs. Corporate and other decreased from 2008 to 2009 primarily because of lower incentive stock compensation
expense and lower commodity mark-to-market impact, partially offset by lower nonrecurring gains.