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52 | 2012 Annual Report
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 and
other includes goodwill impairment charges. Corporate assets are primarily comprised of cash and equivalents, invest-
ments 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
2010 2011 2012 2010 2011 2012 2010 2011 2012
Process Management $ 6,022 7,000 7,899 1,093 1,402 1,599 5,406 5,915 6,607
Industrial Automation 4,289 5,294 5,188 591 830 871 3,688 3,818 3,619
Network Power 5,828 6,811 6,399 800 756 624 8,072 7,945 7,212
Climate Technologies 3,801 3,995 3,766 691 709 668 2,172 2,229 2,260
Commercial & Residential Solutions 1,755 1,837 1,877 357 375 396 1,314 1,271 1,155
21,695 24,937 25,129 3,532 4,072 4,158 20,652 21,178 20,853
Differences in accounting methods 195 231 226
Corporate and other (a) (b) (587) (449) (1,045) 2,191 2,683 2,965
Sales eliminations/Interest (656) (715) (717) (261) (223) (224)
Total $21,039 24,222 24,412 2,879 3,631 3,115 22,843 23,861 23,818
(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 (see Note 14).
(b) 2012 includes a noncash, pretax goodwill impairment charge of $592 ($528 after-tax, or $0.72 per share) related to the Network
Power segment and 2011 includes a charge of $19 ($0.03 per share) related to the Industrial Automation segment (see Note 6).
depreciation and
intersegment sales amortization expense capital expenditures
2010 2011 2012 2010 2011 2012 2010 2011 2012
Process Management $ 3 7 13 183 198 198 105 194 228
Industrial Automation 570 640 619 150 148 138 114 138 134
Network Power 31 24 38 205 286 256 103 99 101
Climate Technologies 46 42 45 148 138 133 104 120 106
Commercial & Residential Solutions 6 2 2 95 57 53 57 35 46
Corporate and other 35 40 45 41 61 50
Total $656 715 717 816 867 823 524 647 665
GEOGRAPHIC
sales By destination property, plant and eQuipment
2010 2011 2012 2010 2011 2012
United States and Canada $ 9,823 10,773 10,980 1,858 1,869 1,918
Asia 4,858 5,636 5,790 505 583 592
Europe 4,309 5,271 4,946 683 714 689
Latin America 1,065 1,319 1,430 229 262 293
Middle East/Africa 984 1,223 1,266 12 9 17
Total $21,039 24,222 24,412 3,287 3,437 3,509
Sales in the U.S. were $10,036, $9,900 and $9,101 for 2012, 2011 and 2010, respectively, while Asia includes sales in
China of $3,012, $3,079 and $2,692, respectively. U.S.-located fixed assets were $1,900, $1,853 and $1,839.