Emerson 2011 Annual Report Download - page 48

46 | 2011 Emerson
(15) Common Stock
At September 30, 2011, 55 million shares of common stock were reserved for issuance under the Company’s stock-
based compensation plans. During 2011, 18.7 million common shares were repurchased and 4.9 million treasury
shares were reissued.
(16) Business Segments Information
The Company designs and supplies products and 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
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 process fluids
such as petroleum, chemicals, food and beverages, pulp and paper, and pharmaceuticals. The Industrial Automa-
tion segment provides commercial and industrial motors and drives, power transmission and materials handling
equipment, low, medium and high voltage alternators and other power generation equipment, 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 homeowners, 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. Due to its global
presence, 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. Corporate
assets are comprised of 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).
BUSINESS SEGMENTS
sales earnings total assets
2009 2010 2011 2009 2010 2011 2009 2010 2011
Process Management $ 6,135 6,022 7,000 1,060 1,093 1,402 5,283 5,406 5,915
Industrial Automation 4,172 4,289 5,294 470 591 830 3,420 3,688 3,818
Network Power 5,456 5,828 6,811 579 800 756 4,973 8,072 7,945
Climate Technologies 3,197 3,801 3,995 411 691 709 2,131 2,172 2,229
Tools and Storage 1,725 1,755 1,837 276 357 375 1,804 1,314 1,271
20,685 21,695 24,937 2,796 3,532 4,072 17,611 20,652 21,178
Differences in accounting methods 179 195 231
Corporate and other (a) (305) (587) (449) 2,152 2,191 2,683
Sales eliminations/Interest (583) (656) (715) (220) (261) (223)
Total $20,102 21,039
24,222 2,450 2,879 3,631 19,763 22,843 23,861
(a) Corporate and other primarily reflects changes in incentive stock compensation expense, which decreased $96 in 2011 due to
changes in the Company’s stock price and a reduced impact from incentive stock plans overlap compared to prior year, and
increased $163 in 2010 related to an increase in stock price and the overlap of two plans in 2010 (see Note 14). Corporate and other
in 2010 also reflects higher acquisition-related costs.