Emerson 2012 Annual Report Download - page 43

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2012 Annual Report | 41
The change in the liability for the rationalization of operations during the years ended September 30 follows:
2011 EXPENSE PAID / UTILIZED 2012
Severance and benefits $24 58 59 23
Lease and other contract terminations 3 10 8 5
Fixed asset write-downs – 9 9 –
Vacant facility and other shutdown costs 2 12 11 3
Start-up and moving costs 1 30 30 1
Total $30 119 117 32
2010 EXPENSE PAID / UTILIZED 2011
Severance and benefits $57 17 50 24
Lease and other contract terminations 8 3 8 3
Fixed asset write-downs – 12 12 –
Vacant facility and other shutdown costs 4 11 13 2
Start-up and moving costs – 38 37 1
Total $69 81 120 30
Rationalization of operations expense by segment is summarized as follows:
2010 2011 2012
Process Management $ 35 11 19
Industrial Automation 48 32 27
Network Power 25 20 53
Climate Technologies 13 11 11
Commercial & Residential Solutions 5 7 9
Total $126 81 119
Costs incurred during 2012, 2011 and 2010 included actions to exit approximately 20 to 25 production, distribution or
office facilities each year and eliminate approximately 2,700, 2,800 and 3,500 positions, respectively, as well as costs
related to facilities exited in previous periods. Severance and benefits costs were concentrated in Network Power for
Asia, Europe and North America and Industrial Automation for Europe and North America in 2012, were not significant
for any single segment in 2011, and were primarily incurred in Process Management and Industrial Automation for
Europe and North America in 2010. Start-up and moving costs to redeploy assets to best cost locations and expand
geographically to directly serve local markets were incurred in all segments in 2012, with the majority in Process
Management in Europe and Commercial & Residential Solutions in North America. In 2011, these costs were substantially
incurred in Industrial Automation, including most of the fixed-asset write downs, and in Network Power, and were
not material for any segment in 2010. The Company also incurred shutdown costs, including vacant facility, lease
termination, and other costs as a result of the consolidation or geographic relocation of facilities. In 2012, these costs
were incurred primarily in Asia and Europe for Network Power, Europe for Industrial Automation and North America
for Climate Technologies, and in North America and Europe for essentially all segments in 2011 and 2010.