艾默生Emerson Electric Co. (EMR) 2023年年度報告「AMEX」.pdf

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1、Annual ReportSolvingthe Unsolvable At Emerson,we believe in innovation built for and with our customers.Throughout our 133-year history,weve been inside every kind of business,working with our customers to overcome complex challenges,seize opportunities and achieve ultimate performance.Powered by ou

2、r comprehensive,integrated automation portfolio and backed by our proven track record of execution,we are solving the unsolvable.2023 Emerson Annual Report$2.4Bi2023 Financial Highlights25.0%49.0%$4.44$15.2BNet SalesAdjusted Segment EBITA Margin*Gross Profit MarginAdjusted Earnings Per Share*Up 220

3、basis points 53%operating leverageUp 330 basis points Up 22%Up 35%15.6%free cash flow margin Up 10%Underlying sales up 10%*24%Measurement&Analytical26%Final Control7%AspenTech9%Safety&Productivity17%Discrete Automation17%Control Systems&Software19%Europe51%Americas30%Asia,Middle East&AfricaKeySoftwa

4、re and Control Intelligent Devices Sales by Segment Sales by Geographic Region67Years of Increased DividendsFree Cash Flow*Note:Operating leverage excludes AspenTech.As we embark on fiscal 2024,with the majority of our strategic portfolio transformation complete,I can tell you with confidence our fu

5、ture will continue to be focused on and grounded in one collective commitment:execution.This is something for which Emerson has long been known and will continue to be a core characteristic of the company.Driving Strong Financial Performance We drove excellent financial performance in 2023.Thanks to

6、 the work of our talented global team,each employees embodiment of our Emerson Management System and our ongoing efforts to progress our portfolio transformation,we have continued to build a foundation for driving continued shareholder value and achieving our long-term financial targets.Looking ahea

7、d,I am confident we are well positioned to execute on our value creation opportunities.Building A Higher-Growth,More Cohesive Automation PortfolioAs part of the continued reshaping of Emerson as a global automation leader,we made several bold portfolio moves in 2023,including the NI acquisition and

8、the completion of the Copeland transaction.Through these strategic decisions,the continued success of our AspenTech relationship,and the additions of Flexim and Afag,we have built a cohesive automation portfolio that enables customers to navigate the full automation spectrum and aligns with the secu

9、lar growth drivers of digital transformation,energy security and affordability,sustainability and decarbonization and nearshoring.$2.4B10%In 2023,we continued to undertake strategic moves to further transform Emerson into a leading global automation company.At the same time,we focused on execution,e

10、xceeded our financial targets set at the beginning of the year and delivered value to shareholders,customers and employees.We attribute these accomplishments to our Emerson Management System,a formula for driving operational execution and growth,balancing risk and innovation,and better allocating le

11、aders time and resources.NI Acquisition Emerson took a definitive step in its portfolio transformation with the acquisition of NI and its test and measurement product and software offerings.By expanding into test and measurement,Emerson will enhance its automation capabilities and gain a broader set

12、 of customers in higher-growth discrete industries.Shareholders,$4.44Adjusted Earnings Per ShareUnderlying Sales GrowthFree Cash Flow25.0%Adjusted Segment EBITA MarginDear Fellow2023 Emerson Annual Report iiiEnabling Innovation and Operational ExcellenceInnovation has been a defining characteristic

13、of Emersons culture for 133 years.During the past year,thanks to our continuous commitment to innovation,we launched new products and offerings aligned to customer needs,positioned the business to transform the industries we serve and capitalize on key growth drivers like software growth and the ene

14、rgy transition,and secured the No.33 ranking on Fortune Magazines inaugural list of Americas Most Innovative Companies.Prioritizing Our People and Modernizing Our Culture People are and always will be at the center of everything we do at Emerson,which is why I was excited to announce several strateg

15、ic appointments to Emersons Office of the Chief Executive throughout 2023,including Mike Baughman as Chief Financial Officer,Nick Piazza as Chief People Officer,Vidya Ramnath as Chief Marketing Officer and Peter Zornio as Chief Technology Officer.I want to take a moment to recognize the incredible c

16、ontributions of Frank Dellaquila,who retired earlier this year after 13 years as our Chief Financial Officer.When I first stepped into the role of CEO,I shared I was most excited about the people at Emerson and the opportunity to modernize our culture.Our commitment to our people has not changed and

17、 remains one of our highest priorities.This year,we introduced a new employee value proposition:Lets Go,which serves as an invitation to our current and potential employees to join our bold ambitions.We also launched Your Voice Counts,a new listening strategy to effectively understand employee senti

18、ment.While we still have work to do,supporting our people and empowering them to deliver results,investing in our culture and making Emerson a place everyone feels proud to work remains paramount.Executing Now and Moving ForwardOur portfolio transformation,the Emerson Management System,and our outst

19、anding people and culture constitute a strong foundation for driving value and differentiated operational execution now and moving forward.Emerson is now positioned to drive accelerated growth as a leading global automation company and significant value creation for our shareholders.Thank you for yo

20、ur ongoing trust and support of Emerson.Sincerely,Front row:Vidya Ramnath Lal Karsanbhai Peter ZornioSecond row:Ram Krishnan Sara Yang Bosco Third row:Mike Baughman Lisa Flavin Nick Piazza Michael TrainThe Office of the Chief Executive From left to rightLal Karsanbhai,President and Chief Executive O

21、fficerThroughout 2023,the Board played an important role advising on Emersons portfolio moves,leadership appointments and long-term strategy.While the Board members and I were energized to see the impact of countless strategic decisions come to fruition,we were especially excited to welcome two new

22、members Leticia Gonalves and Jim McKelvey.Leticia and Jims experience,leadership and innovation-focused perspectives have already and will continue to empower us to accelerate our execution in 2024 and beyond.In addition to the new Board member appointments,the Board also formed a Technology and Env

23、ironmental Sustainability Committee to provide oversight of the Companys strategy,innovation and technology advancements and environmental sustainability goals and programs.Our new Board appointments and Committee changes underscore the Boards commitment,shared by President and CEO Lal Karsanbhai,to

24、 ongoing refreshment.I also want to acknowledge the retirements of Arthur F.Golden,a board member since 2000,and Candace Kendle,a board member since 2014.Lastly,as Lal pointed out in his letter,Emerson delivered strong financial results and strengthened its position as a global automation leader.At

25、the same time,the business continued to modernize its culture and support for employees and drove an even greater focus on innovation and operational excellence through the Emerson Management System.I want to share my appreciation for not only the Emerson team for their commitment and rigorous disci

26、pline over the past year but also our shareholders who have continued to believe in and trust us throughout the process.Looking back at 2023,I am extremely proud.Looking forward at 2024,I am personally excited and energized to execute on the foundation we have built.Sincerely,Shareholders,James S.Tu

27、rley,Chair of the BoardEmerson undertook numerous strategic initiatives in 2023 while remaining focused on delivering value for shareholders,customers and employees.From the Board to the Office of the Chief Executive and everywhere else,Emerson is driven by leaders,innovators and problem solvers who

28、 are delivering bold solutions,better ways of working and meaningful results.That unrelenting ambition is what has made the past year a busy one for the Board,and I am incredibly proud of the work the leadership team has accomplished.Dear Fellow2023 Emerson Annual Report Lori Lee CEO,AT&T Latin Amer

29、ica and Global Marketing Officer,AT&T Inc.Leticia Gonalves Lourenco President,Precision Fermentation and ADM Ventures,Archer Daniels Midland CompanyArthur F.Golden Former Partner,Davis Polk&Wardwell LLPvJoshua B.Bolten Chief Executive Officer,Business RoundtableMartin S.Craighead Former Chairman,Pre

30、sident and CEO,Baker HughesMark A.Blinn Former CEO,President and Director,Flowserve CorporationCandace Kendle Retired Chairman and Chief Executive Officer,Kendle InternationalLal Karsanbhai President and Chief Executive Officer,EmersonGloria A.Flach Retired Corporate Vice President and Chief Operati

31、ng Officer,Northrop GrummanJames M.McKelvey Co-Founder,Block(formerly Square),Founder,Invisibly,Inc.,and General Partner,Fintop Capital Matthew S.Levatich Retired President and CEO,Harley-Davidson,Inc.William H.Easter III Former Chairman,President and Chief Executive Officer,DCP Midstream LLCJames S

32、.Turley Chair of the Board and Retired Chairman and CEO,Ernst&YoungBoard of DirectorsCommitted to high standards of ethics and excellence,the Board of Directors features a balance of tenure,experience and diversity to guide strategy development,ensure sound governance and drive value creation.Contin

33、uing OperationsEMERSON ELECTRIC CO.&SUBSIDIARIES Years ended September 30|Dollars in millions,except per share amounts or where noted EMERSON ELECTRIC CO.&SUBSIDIARIES Reconciliations of Non-GAAP measures(denoted by*)with the most directly comparable GAAP measure(dollars in millions,except per share

34、 amounts):Five-Year SummaryReconciliation of Non-GAAP Measures20192020202120222023Summary of OperationsNet sales$13,535 12,283 12,932 13,804 15,165 Gross profit$6,082 5,388 5,730 6,306 7,427 Percent of sales44.9%43.9%44.3%45.7%49.0%Pretax earnings$1,8261,3761,7622,4322,726 Percent of sales13.5%11.2%

35、13.6%17.6%18.0%Adjusted segment EBITA*$2,505 2,210 2,659 3,147 3,794 Percent of sales*18.5%18.0%20.5%22.8%25.0%Operating cash flow$1,951 2,116 2,458 2,048 2,726 Capital expenditures$355 357 404 299 363 Free cash flow*$1,596 1,759 2,054 1,749 2,363 Percent of sales*11.8%14.3%15.9%12.7%15.6%Per Share

36、of Common Stock Diluted EPS$2.42 2.022.353.163.72Adjusted diluted EPS*$2.65 2.493.013.644.44Dividends per share$1.96 2.00 2.022.062.08Underlying Sales2023Reported(GAAP)10%(Favorable)/Unfavorable FX2%(Acquisitions)(3)%Divestitures1%Underlying*10%Total Business Segment Adjusted EBITA 20192020 2021 202

37、22023Pretax earnings(GAAP)$1,826 1,376 1,762 2,432 2,726 Corporate items and interest expense,net 383 343 442 186 312 Total business segment EBIT$2,209 1,719 2,204 2,618 3,038 Amortization of intangibles and restructuring and related costs 296 491 455 529 756 Adjusted total business segment EBITA*$2

38、,505 2,210 2,659 3,147 3,794 2023 Emerson Annual Report Total Business Segment Adjusted EBITA Margin 2019 2020 2021 20222023Y-o-Y ChangePretax earnings margin(GAAP)13.5%11.2%13.6%17.6%18.0%40 bpsCorporate items and interest expense,net2.8%2.8%3.5%1.4%2.0%60 bpsTotal business segment EBIT margin16.3%

39、14.0%17.1%19.0%20.0%100 bpsAmortization of intangibles and restructuring and related costs2.2%4.0%3.4%3.8%5.0%120 bpsAdjusted total business segment EBITA margin*18.5%18.0%20.5%22.8%25.0%220 bpsEarnings Per Share 20192020 2021 20222023Y-o-Y ChangeEarnings per share(GAAP)$2.42 2.02 2.35 3.16$3.72 18%

40、Amortization of intangibles 0.28 0.29 0.38 0.45 0.62 Restructuring and related costs 0.09 0.38 0.21 0.14 0.14 Acquisition/divestiture costs and pre-acquisition interest on AspenTech debt 0.15 0.13 Gain on subordinated interest(0.60)(0.21)National instruments investment gain(0.07)Other investment-rel

41、ated gains(0.02)AspenTech Micromine purchase price hedge 0.04 (0.02)Interest income on undeployed proceeds from Copeland transaction(0.19)Loss on Copeland equity method investment 0.24 Russia business exit 0.32 0.08 OSI first year acquisition accounting charges and fees0.07Discrete tax items(0.14)(0

42、.20)Adjusted earnings per share*$2.65 2.49 3.01 3.64 4.44 22%Adjusted Operating EBITA Leverage2023Pretax margin leverage(GAAP)22%Corp items and interest expense,net,amortization,restructuring costs,AspenTech31%Adjusted business segment EBITA leverage*53%Cash Flow 2019 2020 2021 20222023Y-o-Y ChangeO

43、perating cash flow(GAAP)$1,951 2,116 2,458 2,048 2,726 33%Capital expenditures(355)(357)(404)(299)(363)2%Free cash flow*$1,596 1,759 2,054 1,749 2,363 35%Cash Flow Margin 20192020 2021 20222023Operating cash flow margin(GAAP)14.4%17.2%19.0%14.8%18.0%Capital expenditures(2.6)%(2.9)%(3.1)%(2.1)%(2.4)%

44、Free cash flow margin*11.8%14.3%15.9%12.7%15.6%viiSafe Harbor StatementThis Annual Report contains various forward-looking statements and includes assumptions concerning Emersons operations,future results and prospects These forward-looking statements are based on current expectations and are subjec

45、t to risks and uncertainties.Emerson undertakes no obligation to update any such statements to reflect later developments.In connection with the“safe harbor”provisions of the Private Securities Litigation Reform Act of 1995,Emerson provides the following cautionary statements identifying important e

46、conomic,political and technological factors,among others,changes which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions.Such factors include,but are not limited to,the following:(1)the current a

47、nd future business environment,including capital and consumer spending,potential volatility of the end markets served,interest rates,and currency exchange rates;(2)competitive factors and competitor responses to Emerson initiatives;(3)development and market introduction of anticipated new products;(

48、4)the ability to defend and protect our intellectual property rights;(5)favorable environments for and execution of acquisitions and divestitures,domestic and foreign,including regulatory requirements and market values of candidates;(6)integration of acquisitions and separation of disposed businesse

49、s;(7)the availability of raw materials and purchased components;(8)stability of governments and business conditions in countries where we operate which could result in adverse changes in exchange rates,changes in regulation,tariffs or trade barriers,nationalization of facilities or disruption of ope

50、rations;(9)unrestricted access to capital markets;(10)our ability to attract,develop and retain key personnel;(11)ability to prevent security breaches or disruptions of our information technology systems or products;(12)impact of potential product failures or similar events caused by product defects

51、,cybersecurity incidents or other intentional acts;(13)the scope,duration and ultimate impact of the Russia-Ukraine and other global conflicts;(14)changes in tax rates,laws or regulations and the resolution of tax disputes in U.S.and non-U.S.jurisdictions;(15)the impact of improper conduct by our em

52、ployees,agents or business partners;(16)the outcome of pending and future litigation,including environmental compliance;and(17)availability of renewable energy on a commercially reasonable basis,among others as set forth on our most recent Annual Report filed on Form 10-K and subsequent reports file

53、d with the SEC.Statements in this Annual Report regarding our aspirational purpose,causes,values,and related commitments,goals or targets,including those regarding sustainability,greenhouse gas emissions,our net zero ambition and related goals,diversity,equity and inclusion or other initiatives,cont

54、ain forward-looking statements and are also Shareholders Informationintended to qualify for the protections of the“safe harbor”protections of the Private Securities Litigation Reform Act of 1995.Such statements are intended to help Emerson adapt and rise to the call of our various stakeholders and a

55、re not intended to create legal rights or obligations.Because success in these areas depends on the collective efforts of others and other factors such as competing economic and regulatory factors,technical advances,policy changes,labor markets,availability of candidates,and supplier and customer en

56、gagement,there may be times where actual outcomes vary from those aimed for or expected.While we strive to live our purpose and make a positive impact on society while continuing to advance towards our commitments,sometimes challenges may delay or block progress and we cannot provide assurance that

57、the results reflected or implied by any such statements will be realized or achieved.*$100 invested on 9/30/18 in stock or index,including reinvestment of dividends.Fiscal year ending September 30.Copyright 2023 Standard&Poors,a division of S&P Global.All rights reserved.201820192020202120222023CAGR

58、Emerson10090911341061447.6%S&P 5001001041201561321609.9%S&P 500 Capital Goods100102971301101417.1%$200$150$100$50$020182023Comparison of Five-Year Cumulative Shareholder Return*2023 Emerson Annual Report UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K ANNUAL REPORT PURS

59、UANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30,2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _ to _Commissionfilenumber1-278 EMERSON ELECTRIC CO.(Exactnameofregi

60、strantasspecifiedinitscharter)Missouri43-0259330(Stateorotherjurisdictionofincorporationororganization)(I.R.S.EmployerIdentificationNo.)8000 W.Florissant Ave.P.O.Box 4100St.Louis,Missouri63136(Addressofprincipalexecutiveoffices)(ZipCode)Registrantstelephonenumber,includingareacode:(314)553-2000 Secu

61、ritiesregisteredpursuanttoSection12(b)oftheAct:Title of each classTradingSymbol(s)Name of each exchange on which registeredCommonStockof$0.50parvaluepershareEMRNewYorkStockExchangeNYSEChicago0.375%Notesdue2024EMR24NewYorkStockExchange1.250%Notesdue2025EMR25ANewYorkStockExchange2.000%Notesdue2029EMR2

62、9NewYorkStockExchangeSecuritiesregisteredpursuanttoSection12(g)oftheAct:None Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesNo IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.YesNo Indicateby

63、checkmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.YesNoIndicatebycheckmarkwh

64、ethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).YesNo Indicatebycheckmarkwhethertheregistrantisalargeaccelera

65、tedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”andemerginggrowthcompanyinRule12b-2oftheExchangeAct.LargeacceleratedfilerAcceleratedfilerNon-acceleratedfiler S

66、mallerreportingcompanyEmerginggrowthcompanyIfanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchange Act.Indicatebycheckmarkwhethertheregistranthasfil

67、edareportonandattestationtoitsmanagementsassessmentoftheeffectivenessofitsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b)bytheregisteredpublicaccountingfirmthatpreparedorissuesitsauditreport.IfsecuritiesareregisteredpursuanttoSection12(b)oftheAct,indicat

68、ebycheckmarkwhetherthefinancialstatementsoftheregistrantincludedinthefilingreflectthecorrectionofanerrortopreviouslyissuedfinancialstatements.Indicatebycheckmarkwhetheranyofthoseerrorcorrectionsarerestatementsthatrequiredarecoveryanalysisofincentive-basedcompensationreceivedbyanyoftheregistrantsexec

69、utiveofficersduringtherelevantrecoveryperiodpursuantto240.10D-1(b).Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes No AggregatemarketvalueofthevotingstockheldbynonaffiliatesoftheregistrantasofcloseofbusinessonMarch31,2023:$49.6billion.Commonstockoutstandingat

70、October31,2023:570.1millionshares.Documents Incorporated by Reference1.PortionsofEmersonElectricCo.Noticeof2024AnnualMeetingofShareholdersandProxyStatementincorporatedbyreferenceintoPartIIIhereof.PART I ITEM 1-BUSINESSEmerson(“theCompany”)isaglobaltechnologyandsoftwarecompanythatprovidesinnovativeso

71、lutionsforcustomersinawiderangeofendmarketsaroundtheworld.Throughitsleadingautomationportfolio,Emersonhelpsprocess,hybridanddiscretemanufacturersoptimizeoperations,protectpersonnel,reduceemissionsandachievetheirsustainabilitygoals.Salesbygeographicdestinationin2023were:theAmericas,51percent;Asia,Mid

72、dleEast&Africa,30percent(China,12percent);andEurope,19percent.PortfoliomanagementisanintegralcomponentofEmersonsgrowthandvaluecreationstrategy.Overthepasttwoyears,theCompanyhastakensignificantactionstoacceleratethetransformationofitsportfoliothroughthecompletionofstrategicacquisitionsanddivestitures

73、ofnon-corebusinesses.Theseactionswereundertakentocreateahighergrowthandcohesiveindustrialtechnologyportfolioasaglobalautomationleaderservingadiversifiedsetofendmarkets.TheCompanysrecentportfolioactionsincludethefollowingtransactions:OnOctober11,2023,theCompanycompletedtheacquisitionofNationalInstrum

74、entsCorporation(NI)atanequityvalueof$8.2billion.NI,whichprovidessoftware-connectedautomatedtestandmeasurementsystemsthatenableenterprisestobringproductstomarketfasterandatalowercost,hadrevenuesofapproximately$1.7billionandpretaxearningsofapproximately$170mllionforthe12monthsendedSeptember30,2023.OnM

75、ay31,2023,theCompanycompletedthepreviouslyannouncedsaleofamajoritystakeinitsClimateTechnologiesbusiness(whichconstitutestheformerClimateTechnologiessegment,excludingTherm-O-Discwhichwasdivestedearlierin2022)toprivateequityfundsmanagedbyBlackstoneina$14.0billiontransaction.Emersonreceivedupfront,pre-

76、taxcashproceedsofapproximately$9.7billionandanotereceivablewithafacevalueof$2.25billion(whichwillaccrue5percentinterestpayableinkindbycapitalizinginterest),whileretaininga40percentnon-controllingcommonequityinterestinanewstandalonejointventurebetweenEmersonandBlackstone.TheClimateTechnologiesbusines

77、s,whichincludestheCopelandcompressorbusinessandtheentireportfolioofproductsandservicesacrossallresidentialandcommercialHVACandrefrigerationend-markets,had2022netsalesofapproximately$5.0billion.ThenewstandalonebusinessisnamedCopeland.OnOctober31,2022,theCompanycompletedthedivestitureofitsInSinkErator

78、business,whichmanufacturesfoodwastedisposers,toWhirlpoolCorporationfor$3.0billion.Thisbusinesshadnetsalesof$630millionin2022.OnMay31,2022theCompanycompletedthedivestitureofitsTherm-O-DiscsensingandprotectiontechnologiesbusinesstoanaffiliateofOneRockCapitalPartners,LLC.OnMay16,2022,theCompanycomplete

79、dthetransactionscontemplatedbyitsdefinitiveagreementwithAspenTechnology,Inc.(HeritageAspenTech)tocontributetwoofEmersonsstand-aloneindustrialsoftwarebusinesses,OpenSystemsInternational,Inc.andtheGeologicalSimulationSoftwarebusiness(collectively,the“EmersonIndustrialSoftwareBusiness”),alongwithapprox

80、imately$6.0billionincashtoHeritageAspenTechstockholders,tocreateNewAspenTech,adiversified,high-performanceindustrialsoftwareleaderwithgreaterscale,capabilitiesandtechnologies(definedasAspenTechherein).Uponclosingofthetransaction,Emersonowned55percentoftheoutstandingsharesofAspenTechcommonstock(onafu

81、llydilutedbasis).AspenTechhad2023netsalesof$1.04billion.FurtherinformationregardingacquisitionanddivestitureactivityissetforthinNotes4and5.Certainprioryearamountshavebeenreclassifiedtoconformtothecurrentyearpresentation.ThisincludesreportingfinancialresultsforClimateTechnologies,InSinkEratorandTherm

82、-O-Discasdiscontinuedoperationsforallperiodspresented,andtheassetsandliabilitiesofClimateTechnologiesandInSinkErator(priortocompletionofthedivestitures)asheld-for-sale(seeNote5).Inaddition,asaresultofitsportfoliotransformation,theCompanynowreportssixsegmentsandtwobusinessgroups,whicharehighlightedin

83、thetablebelow(seeNote20forfurtherdetails).Beginningin2024,theCompanywillreportNI(whichwillberenamedTest&Measurement)asanewsegmentintheSoftwareandControlbusinessgroup.1INTELLIGENT DEVICESSOFTWARE AND CONTROL FinalControl ControlSystems&Software Measurement&Analytical AspenTech DiscreteAutomation Safe

84、ty&ProductivityTheCompanysellsproductsandsolutionsthatsupportcustomersinavarietyofendmarkets,includingprocessindustries(suchaschemical,power&renewablesandenergy),hybridindustries(lifesciences,metals&mining,food&beverage,pulp&paper,andothers),discreteindustries(includingautomotive,medical,packagingan

85、dsemiconductor)andmore.EmersonwasincorporatedinMissouriin1890andhasevolvedthroughinternalgrowthandstrategicacquisitions.Managementhasawell-establishedsetofoperatingmechanismstomanageitsbusinessperformanceandsetstrategy.TheCompanyalsohasprocessesundertakenbymanagementwithoversightfromtheBoardofDirect

86、orstospecificallyfocusonrisksinareassuchascybersecurity,compliance,legal,sustainability,financialandreputational,amongothers.TheCompanyperiodicallyupdates,assesses,andmonitorsitsriskexposures,providestimelyupdatestotheBoard,andtakesactionstomitigatetheserisks.AllNotereferencesinthisdocumentrefertoNo

87、testoConsolidatedFinancialStatementssetforthinItem8ofthisAnnualReportonForm10-K,whichnotesareherebyincorporatedbyreference.SeealsoItem1A-“RiskFactors”andItem7-“ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations.”INTELLIGENT DEVICESFinalControlTheFinalControlsegmentisaleadingg

88、lobalproviderofcontrolvalves,isolationvalves,shutoffvalves,pressurereliefvalves,pressuresafetyvalves,actuators,andregulatorsforprocessandhybridindustries.Thesesolutionsrespondtocommandsfromacontrolsystemtocontinuouslyandpreciselycontrolandregulatetheflowofliquidsorgasestoachievesafeoperationalongwit

89、hreliabilityandoptimizedperformance.ProductswithinourFinalControlsegmentaremarketedunderavarietyofbrandsincluding:AndersonGreenwood,Bettis,Crosby,Fisher,Keystone,KTMandVanessa.Measurement&AnalyticalTheMeasurement&Analyticalsegmentisaleadingsupplierofintelligentinstrumentationmeasuringthephysicalprop

90、ertiesofliquidsorgases,suchaspressure,temperature,level,flow,acoustics,corrosion,pH,conductivity,waterquality,toxicgases,andflame.Theinstrumentationtransfersdatatocontrolsystemsandautomationsoftware,allowingprocessandhybridindustryoperatorstomakeeducateddecisionsregardingproduction,reliabilityandsaf

91、ety.ProductswithinourMeasurement&Analyticalsegmentaremarketedunderavarietyofbrandsincluding:Flexim,MicroMotionandRosemount.DiscreteAutomationTheDiscreteAutomationsegmentincludessolenoidvalves,pneumaticvalves,valvepositionindicators,pneumaticcylindersandactuators,airpreparationequipment,pressureandte

92、mperatureswitches,electriclinearmotionsolutions,programmableautomationcontrolsystemsandsoftware,electricaldistributionequipment,andmaterialsjoiningsolutionsusedprimarilyindiscreteindustries.ProductswithinourDiscreteAutomationsegmentaremarketedunderavarietyofbrandsincluding:Afag,Appleton,ASCO,Aventic

93、s,Branson,Movicon,PACSystems,SolaHD,TESCOM,andTopWorx.2Safety&ProductivityTheSafety&Productivitysegmentofferstoolsforprofessionalsandhomeownersthatpromotesafetyandproductivity.Pipe-workingtoolsincludepipewrenches,pipecutters,pipethreadingandrollgroovingequipment,batteryhydraulictoolsforpressconnecti

94、ons,draincleaners,tubingtoolsanddiagnosticsystems,includingsewerinspectioncamerasandlocatingequipment.Electricaltoolsincludeconduitbendersandcablepullingequipment,batteryhydraulictoolsforcuttingandcrimpingelectricalcable,andhole-makingequipment.Otherprofessionaltoolsincludewaterjetters,wet-dryvacuum

95、s,commercialvacuumsandhandtools.ProductswithinourSafety&Productivitysegmentaremarketedunderavarietyofbrandsincluding:Greenlee,Klauke,ProTeamandRIDGID.SOFTWARE AND CONTROLControlSystems&SoftwareTheControlSystems&Softwaresegmentprovidescontrolsystemsandsoftwarethatcontrolplantprocessesbycollectinganda

96、nalyzinginformationfrommeasurementdevicesintheplantandusingthatinformationtoadjustvalves,pumps,motors,drivesandothercontrolhardwareformaximumproductquality,processefficiencyandsafety.Thesesolutionsincludedistributedcontrolsystems,safetyinstrumentedsystems,SCADAsystems,applicationsoftware,digitaltwin

97、s,assetperformancemanagementandcybersecurity.ControlSystems&Softwaresolutionsarepredominantlyusedbyprocessandhybridmanufacturers.ProductswithinourControlSystems&Softwaresegmentaremarketedunderavarietyofbrandsincluding:AMS,DeltaVandOvation.AspenTechAspenTechisagloballeaderinassetoptimizationsoftwaret

98、hatenablesindustrialmanufacturerstodesign,operate,andmaintaintheiroperationsformaximumperformance.AspenTechcombinesdecadesofmodeling,simulation,andoptimizationcapabilitieswithindustrialoperationsexpertiseandappliesadvancedanalyticstoimprovetheprofitabilityandsustainabilityofproductionassets.Thepurpo

99、se-builtsoftwaredrivesvalueforcustomersbyimprovingoperationalefficiencyandmaximizingproductivity,reducingunplanneddowntimeandsafetyrisks,andminimizingenergyconsumptionandemissions.Test&MeasurementAsdiscussedabove,EmersoncompletedtheacquisitionofNIonOctober11,2023.ThisbusinesswillbereferredtoasTest&M

100、easurementandreportedasanewsegmentintheSoftwareandControlbusinessgroupin2024.Test&Measurementprovidessoftware-connectedautomatedtestandmeasurementsystemsthatenableenterprisestobringproductstomarketfasterandatalowercost.TheTest&Measurementplatformspansthefullrangeofcustomerneedsincludingmodularinstru

101、mentation,dataacquisitionandcontrolsolutions,andgeneral-purposedevelopmentsoftware.RESEARCH&DEVELOPMENTInvestingininnovationtoaccelerateorganicgrowthisacriticalcomponentofEmersonsvaluecreationstrategy.TheCompanyisfocusedonkeygrowthinitiativesacrossitssoftware,controlandintelligentdevicesportfolio.Th

102、eseinitiativesincludedisruptivemeasurementtechnologies,software-definedautomationsystems,self-optimizingassetsoftwareandsustainabilitysolutions.TotalspendingforR&D,engineeringexpenseandcustomer-fundedengineeringanddevelopmentwas6.9percentofsalesin2023comparedto6.3percentin2022.DISTRIBUTIONTheprincip

103、alworldwidedistributionchannelforamajorityoftheCompanysproductofferingsisthroughadirectsalesforce,whileanetworkofindependentsalesrepresentatives,andtoalesserextentindependentdistributorspurchasingproductsforresale,arealsoutilized.3RAW MATERIALSTheCompanysmajorrequirementsforbasicrawmaterialsincludes

104、teel,castiron,electronics,rareearthmetals,aluminumandbrass;andtoalesserextent,plasticsandpetroleum-basedchemicals.TheCompanyseekstohavemanysourcesofsupplyforeachofitsmajorrequirementsinordertoavoidsignificantdependenceonanyoneora fewsuppliers.However,thesupplyofmaterialsorotheritemscouldbedisruptedb

105、ynaturaldisastersorotherevents.In2023,freightcostsandservicelevelsreturnedtopre-pandemiclevels,whilethesupplychainimproved,includingtheavailabilityofelectroniccomponents.Despitemarketpricevolatilityforcertainrequirements,therawmaterialsandvariouspurchasedcomponentsneededfortheCompanysproductshavegen

106、erallybeenavailableinsufficientquantities.SeeItem7-“ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations.”PATENTS,TRADEMARKS AND LICENSESTheCompanymaintainsanintellectualpropertyportfolioithasdevelopedoracquiredoveranumberofyears,includingpatents,trademarksandlicenses.TheCompan

107、yalsocontinuestodeveloporacquirenewintellectualproperty.NewpatentapplicationsarecontinuouslyfiledtoprotecttheCompanysongoingresearchanddevelopmentactivitiesandtheCompanyperiodicallyreviewsthecontinuedutilityofpatentassets.TheCompanystrademarkregistrationsmayberenewedandtheirdurationisdependentuponna

108、tionallawsandtrademarkuse.WhilethisproprietaryintellectualpropertyportfolioisimportanttotheCompanyintheaggregate,managementdoesnotregardanyofitssegmentsasbeingdependentonanysinglepatent,trademarkregistrationorlicense.BACKLOG TheCompanysestimatedconsolidatedorderbacklogwas$7.8billionand$7.0billionatS

109、eptember30,2023and2022,respectively,ofwhichapproximately$1.2billionand$1.1billionrelatedtoAspenTech.Approximately75percentoftheCompanysconsolidatedbacklogisexpectedtoberecognizedasrevenueoverthenext12months,withtheremaindersubstantiallyoverthesubsequenttwoyearsthereafter.BacklogbybusinessgroupatSept

110、ember30,2023and2022follows(dollarsinmillions):20222023IntelligentDevices$3,9304,471SoftwareandControl3,0583,302TotalBacklog$6,9887,773COMPETITIONTheCompanysbusinessesoperateinhighlycompetitivemarkets.TheCompanycompetesbasedonproductperformance,quality,branding,serviceand/orpriceacrosstheindustriesan

111、dmarketsserved.AsignificantelementoftheCompanyscompetitivestrategyistodeliversolutionstoourcustomersbymanufacturinghigh-qualityproductsatthebestrelevantglobalcost.AlthoughnosinglecompanycompetesdirectlywithEmersoninalloftheCompanysproductlines,variouscompaniescompeteinoneormoreproductlineswiththenum

112、berofcompetitorsvaryingbyproductline.Somecompetitorshavesubstantiallygreatersales,assetsandfinancialresourcesthanEmersonandtheCompanyalsocompeteswithmanysmallercompanies.ManagementbelievesEmersonhasamarketleadershippositioninmanyofitsproductlines.REGULATIONSTheCompanysoperations,productsandservicesa

113、resubjecttovariousgovernmentregulations,includingenvironmentalregulations.Ourmanufacturinglocationsgeneratewaste,ofwhichtreatment,storage,transportationanddisposalaresubjecttoU.S.federal,state,foreignand/orlocallawsandregulationsrelatingtoprotectionoftheenvironment.TheCompanycontinuallyworkstominimi

114、zetheenvironmentalimpactofitsoperationsthroughsafetechnologies,facilitydesignandoperatingprocedures.Compliancewithgovernmentregulations,includingenvironmentalregulations,hasnothad,andbasedoncurrentinformationandtheapplicablelawsandregulationscurrentlyineffect,isnotexpectedtohaveamaterialeffectontheC

115、ompanyscapitalexpenditures(includingexpendituresforenvironmentalcontrolfacilities),earningsorcompetitiveposition.However,lawsandregulationsmaybechanged,acceleratedoradoptedthatimposesignificantoperationalrestrictionsandcompliancerequirementsupontheCompanyandwhichcouldnegativelyimpactouroperatingresu

116、lts.SeeItem1A-RiskFactors.4HUMAN CAPITAL RESOURCESEmersonisdedicatedtomodernizingourworkplaceculturetomeettheneedsandexpectationsoftodaysworkersandattracttalentthatwillhelpusthrive.In2023,theCompanylauncheditsfirst-everemployeevalueproposition,Lets Go,whichservesasaninvitationtoemployeesandpotential

117、employeestojointheCompanyinourboldaspirationtocreateahealthier,safer,smarterandmoresustainableworld.WebelievetheCompanyssuccessdependsonourabilitytoattract,developandretainkeypersonnel.Theskills,experienceandindustryknowledgeofkeyemployeessignificantlybenefitouroperationsandperformance.TheCompanysBo

118、ardofDirectorsandmanagementoverseevariousemployeeinitiatives.TheCompanysupportsanddevelopsitsemployeesthroughglobaltraininganddevelopmentprogramsthatbuildandstrengthenemployeesleadershipandprofessionalskills.Leadershipdevelopmentprogramsincludeintensivelearningprogramsfornewleadersaswellasmoreestabl

119、ishedleaders.TheCompanyalsopartnerswitheducationalinstitutionsandnonprofitorganizationstohelppreparecurrentandfutureworkerswiththeknowledgeandskillstheyneedtosucceed.Toassessandimproveemployeeretentionandengagement,theCompanysurveysemployeeswiththeassistanceofthird-partyconsultants,andtakesactionsto

120、addressareasofemployeeconcern.In2023,weinitiatedacontinuouslisteningstrategy,withmorethan85percentofemployeesparticipatinginthesurveyandanoverallengagementscoreof78percent.Thecategoriesofsafety,well-being,growthanddevelopment,andaccesstoresourcesandsupportearnedthemostfavorablescores.Employeehealtha

121、ndsafetyintheworkplaceisalsooneoftheCompanyscorevalues.TheCorporateSafetyCouncilisledbyourChiefOperatingOfficerandoverseesoursafetyefforts,supportedbyhealthandsafetycommitteesandleadersthatoperateatthelocalsitelevel.Hazardsintheworkplaceareactivelyidentifiedandmanagementtracksincidentssoremedialacti

122、onscanbetakentoimproveworkplacesafety.In2023,theCompanystotalrecordablerateofinjurieswas0.30,anditslostorrestrictedworkdaycaseratewas0.22(bothmeasuredasthenumberofincidentsper100employees).Wehaveidentifiedotherhumancapitalpriorities,including,amongotherthings,providingcompetitivewagesandbenefitsandp

123、romotinganinclusiveworkenvironment.TheCompanyiscommittedtoeffortstoelevatetherepresentationofwomenandU.S.minoritiesandfosteraninclusiveworkenvironmentthatsupportsourlargeglobalworkforceandhelpsusinnovateforourcustomers.EmployeeResourceGroupshavebeencreatedtosupportourdiverseworkforceandhavegrowntoov

124、er13,000members.Wealsohavetakenactionstoenhancediversity,includingsettingdiversitytargetsforinterviewslatesandtargetedrecruitingtoincreasetherepresentationofwomen,minorities,U.S.militaryveterans,individualswithadisabilityandLGBTQ+talentwithinEmerson.In2021,theCompanyintroduceddiversitygoalsatthelead

125、ershiplevel.Wecontinuetomakeprogressonourgoalsandwerenameda“BestEmployerforDiversity”byForbes.Overall,womenrepresent33percentofourglobalworkforceand23percentofleadershippositionsareheldbywomen.IntheU.S.,minoritiesrepresent35percentofourworkforceand21percentofourleadershippositions.Employeelevelsarem

126、anagedtoalignwiththepaceofbusinessandmanagementbelievesithassufficienthumancapitaltooperateitsbusinesssuccessfully.TheCompanyanditssubsidiarieshadapproximately67,000employeesatSeptember30,2023.ManagementbelievesthattheCompanysemployeerelationsarefavorable.AsmallportionoftheCompanysU.S.employeesareun

127、ionized,whileoutsidetheU.S.,wehaveemployeesincertaincountries,particularlyinEurope,thatarerepresentedbyanemployeerepresentativeorganization,suchasaunion,workscounciloremployeeassociation.ENVIRONMENTAL SUSTAINABILITY Emersonsglobalpurposeistodriveinnovationthatmakestheworldhealthier,safer,smarterandm

128、oresustainable.OurenvironmentalsustainabilitystrategyisfocusedondrivingprogresswithinourfacilitiesandhelpingourcustomersachievetheirESGobjectives.In2021,weappointedMikeTrainasChiefSustainabilityOfficer.Thisrole,partofourOfficeoftheChiefExecutive,reflectsourfocusonsustainabilityacrossourcompany.Under

129、hisleadership,Emersonhasmadesignificantstrides,andwearestrengtheningourleadershippositionasourcustomersandsuppliersworktodelivertheirenvironmentaltargets.5In2022,wesetanambitioustargettoachievenetzerogreenhousegas(GHG)emissionsacrossourvaluechainby2045comparedtoa2021baseline.Tosetusontherightpathway

130、,wewilltargetnetzerooperationsanda25percentreductionofourvaluechainemissionsby2030,alsocomparedtoa2021baseline.TheCompanyalsoaddedESGtargets,includingGHGreductiontargets,asacomponentinthedeterminationofannualbonusesforleadershipbeginningin2022.In2023,weestablishedagoaltoachievezerowastetolandfillino

131、urmanufacturingfacilitiesby2032,froma2022fiscalyearbaseline,whereverthisiscompatiblewithlocalconditionsandregulations.WealsointroducedanewTechnologyandEnvironmentalSustainabilityBoardcommittee,whichistaskedwithoverseeingstrategyrelatedtotechnologyandR&D,theCompanysproductcybersecuritypracticesandEme

132、rsonsenvironmentalsustainabilitygoalsandprograms.Ourenvironmentalsustainabilitystrategyissummarizedbyour“GreeningOf,GreeningBy,GreeningWith”framework.Greening Of Emersondemonstratesoureffortstoimproveourinternalenvironmentalsustainabilityperformance,includingreducingourGHGemissionsandenergyandwaterc

133、onsumption.Greening By Emerson is ourapproachtodeliveringtechnology,solutionsandexpertise(includingthroughoursoftwareofferings)thatsupportandenableourcustomersdecarbonizationandenvironmentalsustainabilityefforts.Greening With Emersonreflectshowwefostercollaborationamongstakeholdersbyparticipatingine

134、nvironmentalsustainabilityindustryforums,partneringtodevelopinnovativesolutions,andengagingwithgovernmentsgloballytosupportsustainability-relatedpoliciesandregulations.Emersonsenvironmentalsustainabilityinitiativesandstrategyarediscussedfurtherinour2022Environmental,SocialandGovernanceReport,whichca

135、nbefoundonourwebsiteatwww.E;thisreportisnotincorporatedbyreferenceandshouldnotbeconsideredpartofthisForm10-K.INTERNET ACCESSEmersonsreportsonForms10-K,10-Q,8-Kandallamendmentstothosereports,aswellasproxystatements,areavailablewithoutchargethroughtheCompanyswebsiteontheinternetassoonasreasonablypract

136、icableaftertheyareelectronicallyfiledwith,orfurnishedto,theU.S.SecuritiesandExchangeCommission(SEC).Theymaybeaccessedasfollows:www.E,Investors,SECFilings.InformationontheCompanyswebsitedoesnotconstitutepartofthisForm10-K.TheinformationsetforthunderItem1A-“RiskFactors”isherebyincorporatedbyreference.

137、ITEM 1A-RISK FACTORSInvestinginoursecuritiesinvolvesrisks.Youshouldcarefullyconsider,amongothermatters,thefactorssetforthbelowandtheotherinformationinthisreport.TheCompanysriskfactorssetforthbelowarenottheonlyrisksfacingtheCompany.Additionalrisksanduncertaintiesnotcurrentlyknowntomanagementorthatman

138、agementcurrentlydeemsimmaterialalsomaymaterially,adverselyaffecttheCompanysbusiness,financialconditionoroperatingresults.Wemayamendorsupplementtheriskfactorssetforthbelowfromtimetotimebyotherreportswefilewiththe SEC.Business and Operational RisksWe Operate in Businesses That Are Subject to Competiti

139、ve Pressures That Could Affect Prices or Demand for Our ProductsOurbusinessesoperateinmarketsthatarehighlycompetitiveandpotentiallyvolatile,andwecompeteonthebasisofproductperformance,quality,serviceand/orpriceacrosstheindustriesandmarketsserved.Ourbusinessesarelargelydependentonthecurrentandfuturebu

140、sinessenvironment,includingcapitalandconsumerspending.Asignificantelementofourcompetitivestrategyistodeliversolutionstoourcustomersbymanufacturinghigh-qualityproductsatthebestrelevantglobalcost.Variouscompaniescompetewithusinoneormoreproductlinesandthenumberofcompetitorsvariesbyproductline.Someofour

141、competitorshavesubstantiallygreatersales,assetsandfinancialresourcesthanourCompanyandwealsocompetewithmanysmallercompanies.Competitivepressurescouldadverselyaffectpricesorcustomerdemandforourproducts,impactingoursalesorprofitmargins,and/orresultinginalossofmarketshare.Inaddition,certainofourbusiness

142、esrely,inpart,onindependentsalesrepresentativesanddistributors.Anydisruptionoradversechangeinourrelationshipswiththeseindependentsales6representativescouldweakenourcompetitivepositionandadverselyaffectourresultsofoperations,cashflowsandfinancialcondition.Adisruptionoradversechangecouldresultfromthes

143、aleorfinancialinstabilityofanindependentsalesrepresentativeordistributor,changestoourrelationshipincludingfavoringcompetingproductsforanyreason,orotherevents.Our Operating Results Depend in Part on Continued Successful Research,Development and Marketing of New and/or Improved Products and Services,a

144、nd There Can Be No Assurance That We Will Continue to Successfully Introduce New Products and ServicesThesuccessofnewandimprovedproductsandservicesdependsontheirinitialandcontinuedacceptancebyourcustomers.Ourbusinessesareaffectedbyvaryingdegreesoftechnologicalchangeandcorrespondingshiftsincustomerde

145、mand,whichresultinunpredictableproducttransitions,shortenedlifecyclesandincreasedimportanceofbeingfirsttomarketwithnewproductsandservices.Wemayexperiencedifficultiesordelaysintheresearch,development,productionand/ormarketingofnewproductsandserviceswhichmaynegativelyimpactouroperatingresultsandpreven

146、tusfromrecoupingorrealizingareturnontheinvestmentsrequiredtocontinuetobringnewproductsandservicestomarket.Wemustanticipateandrespondtomarketandtechnologicalchangesdrivenbybroadertrendssuchasdecarbonizationandelectrificationeffortsinresponsetoclimatechange.Marketgrowthfromtheuseofcleanerenergysources

147、,aswellasemissionsmanagement,energyefficiencyanddecarbonizationeffortsarelikelytodependinpartontechnologiesnotyetdeployedorwidelyadoptedtoday.Wemaynotadequatelyinnovateorpositionourbusinessesfortheadoptionoftechnologiessuchasbatterystoragesolutions,hydrogenusecasesinindustry,mobility,andpowergenerat

148、ion,enhancedelectricalgriddemandmanagement,carboncaptureandsequestrationoradvancednuclearpower.Thesetrendsandtherelativecompetitivenessofourproductandserviceofferingswillcontinuetobeimpactedbyuncertainfactorssuchasthepaceoftechnologicaldevelopmentsandrelatedcostconsiderations,thelevelsofeconomicgrow

149、thindifferentmarketsaroundtheworldandtheadoptionofclimatechange-relatedpoliciessuchascarbontaxes,greenhousegasemissionreductions,incentivesormandatesforparticulartypesofenergy,orpoliciesthatimpacttheavailabilityoffinancingforcertaintypesofprojects.If We Are Unable to Defend or Protect Our Intellectu

150、al Property Rights,the Companys Competitive Position Could Be Adversely AffectedTheCompanysintellectualpropertyrightsareimportanttoitsbusinessandincludenumerouspatents,trademarks,copyrights,tradesecretsandotherconfidentialinformation.Thisintellectualpropertymaybesubjecttochallenge,infringement,inval

151、idationorcircumventionbythirdparties.Despiteextensivesecuritymeasures,ourintellectualpropertymaybesubjecttomisappropriationthroughunauthorizedaccessofourinformationtechnologysystems,employeetheft,orotheractsofindustrialespionage.ShouldtheCompanybeunabletoadequatelydefendorprotectitsintellectualprope

152、rty,itmaysuffercompetitiveharm.We Engage in Acquisitions and Divestitures,Which Are Subject to Domestic and Foreign Regulatory Requirements,and May Encounter Difficulties in Integrating and Separating These Businesses and Therefore We May Not Realize the Anticipated BenefitsWeregularlyseekgrowththro

153、ughstrategicacquisitionsaswellasevaluateourportfolioforpotentialdivestitures.Theseactivitiesrequirefavorableenvironmentstoexecutethesetransactions,andwemayencounterdifficultiesinobtainingthenecessaryregulatoryapprovalsinbothdomesticandforeignjurisdictions.In2023andinpastyears,wehavemadevariousacquis

154、itionsanddivestitures,includingouracquisitionofNationalInstrumentswhichclosedafteryear-end,ourdivestitureofamajoritystakeintheClimateTechnologiesbusiness(nowrenamedCopeland),andourmajoritystakeinAspenTechnology,Inc.,andenteredintojointventurearrangementsintendedtocomplementorexpandourbusiness,andmay

155、continuetodosointhefuture.Asaresultofthesetransactions,theCompanyhasanarrowerbusinesswhichisfocusedonhighergrowthmarketsincludingsoftware,innovationanddisruptivetechnologies,andmayencountermorevolatilityandbemorevulnerabletochangingmarketconditions.Thesuccessofthesetransactionswilldependonourability

156、toachievehigherratesofgrowth,integrateassetsandpersonnelacquiredinthesetransactionsandtocooperatewithourstrategicpartners.Wemayencounterdifficultiesinintegratingacquisitionswithouroperationsaswellasseparatingdivestedbusinesses,andinmanagingstrategic7investments.Furthermore,wemaynotrealizethedegree,o

157、rtiming,ofanticipatedbenefitsincluding,amongothers,increasingratesofprofitabilityandgrowth.Anyoftheforegoingcouldadverselyaffectourbusinessandresultsofoperations.AspartoftheCopelandtransaction,theCompanyreceivedanotereceivableandretaineda40percentnon-controllingcommonequityinterest.AstheCompanynolon

158、gerhasacontrollinginterestinthisbusiness,thefuturevalueorproceedsfromthenotereceivableandcommonequityinterestwilldependonthebusinessperformanceofCopelandandhowthecontrollingownermanagesthebusiness.Therefore,theCompanycanmakenoassuranceregardingtheamountortimingofanyfutureproceedsorvaluetobederivedfr

159、omthenotereceivableandcommonequityinterest.We Use a Variety of Raw Materials and Components in Our Businesses,and Significant Shortages or Price Increases Could Increase Our Operating Costs and Adversely Impact the Competitive Positions of Our ProductsOurmajorrequirementsforrawmaterialsincludesteel,

160、castiron,electronics,rareearthmetals,aluminum,brassand,toalesserextent,plasticsandpetroleum-basedchemicals.TheCompanyseeksmultiplesourcesofsupplyforeachofitsmajorrequirementsinordertoavoidsignificantdependenceonanyoneorafewsuppliers.However,thesupplyofmaterialsorotheritemscouldbedisruptedbynaturaldi

161、sasters,ahealthepidemicorpandemic,orotherevents.Significantshortagesorpriceincreasescouldimpactthepricesouraffectedbusinessescharge,theiroperatingcostsandthecompetitivepositionoftheirproductsandservices,whichcouldadverselyaffectourresultsofoperations.Whilewemonitormarketpricesofthecommoditieswerequi

162、reandattempttomitigatepriceexposurethroughhedgingactivities,thisriskcouldadverselyaffectouroperatingresults.Our Operations Depend on Production Facilities Throughout the World,a Majority of Which Are Located Outside the United States and Subject to Increased Risks of Disrupted Production,Causing Del

163、ays in Shipments and Loss of Customers and RevenueWemanagebusinesseswithmanufacturingfacilitiesworldwide,amajorityofwhicharelocatedoutsidetheUnitedStates,andalsosourcecertainmaterialsglobally.Emergingmarketsalesrepresentoverone-thirdoftotalsalesandservingaglobalcustomerbaserequiresthatweplacemoremat

164、erialssourcingandproductioninemergingmarketstocapitalizeonmarketopportunitiesandmaintainabest-costposition.Ourandoursuppliersnon-U.S.productionfacilitiesandoperationscouldbedisruptedbyweatherandnaturaldisaster(includingthepotentialeffectsofclimatechange),laborstrife,war(includingtheRussia-Ukraineand

165、otherglobalconflicts),politicalunrest,terroristactivityorpublichealthconcernssuchasanepidemicorpandemic,particularlyinemergingcountriesthatarenotwell-equipped tohandlesuchoccurrences.Ourmanufacturingfacilitiesabroadaredependentonthestabilityofgovernmentsandbusinessconditionsandmaybemoresusceptibleto

166、changesinlaws,policiesandregulationsinhostcountries,aswellaseconomicandpoliticalupheaval,thanourdomesticfacilities.Thesefacilitiesfaceincreasedrisksofnationalizationaswellasoperationaldisruptionswhichcouldcausedelaysinshipmentsofproductsandthelossofsalesandcustomers,andinsuranceproceedsmaynotadequat

167、elycompensateus.Access to Funding Through the Capital Markets is Essential to the Execution of Our Business Plan,and if We Are Unable to Maintain Such Access We Could Experience a Material Adverse Effect on Our Business and Financial ResultsOurabilitytoinvestinourbusinesses,makestrategicacquisitions

168、andrefinancematuringdebtobligationsrequiresaccesstothecapitalmarketsandsufficientbankcreditlinestosupportshort-termborrowings.Volatilityinthecapitalmarketsmayincreasecostsassociatedwithissuingcommercialpaperorotherdebtinstruments,oraffecttheCompanysabilitytoaccessthosemarkets.Ifweareunabletocontinue

169、toaccessthecapitalmarkets,wecouldexperienceamaterialadverseeffectonourbusinessandfinancialresults.Additionally,ifourcustomers,suppliersorfinancialinstitutionsareunabletoaccessthecapitalmarketstomeettheircommitmentstotheCompany,ourbusinesscouldbeadverselyimpacted.8Our Business Success Depends on the

170、Ability to Attract,Develop and Retain Key PersonnelOursuccessdependsinpartontheeffortsandabilitiesofourmanagementandkeyemployees.Theirskills,experienceandindustryknowledgesignificantlybenefitouroperationsandperformance.Thefailuretoattract,developandretainhighlyqualifiedpersonnelcouldadverselyaffecto

171、urabilitytosucceedinourhumancapitalgoalsandprioritiesaswellasnegativelyimpactourbusinessandoperatingresults.Security and/or Data Privacy Breaches,or Disruptions of Our Information Technology Systems Could Adversely Affect Our BusinessTheCompanyreliesoninformationtechnologynetworksandsystems,includin

172、gtheinternet,toprocess,transmitandstoreelectronicinformation,andtomanageorsupportavarietyofbusinessprocessesandactivities.Thesetechnologynetworksandsystemsmaybesusceptibletodamage,disruptionsorshutdownsduetofailuresduringtheprocessofupgradingorreplacingsoftware,databasesorcomponents;poweroutages;tel

173、ecommunicationsorsystemfailures;terroristattacks;naturaldisasters;employeeerrorormalfeasance;serverorcloudproviderbreaches;andcomputervirusesorcyberattacks.Cybersecuritythreatsandincidentscanrangefromuncoordinatedindividualattemptstogainunauthorizedaccesstoinformationtechnologynetworksandsystemstomo

174、resophisticatedandtargetedmeasures,knownasadvancedpersistentthreats,directedattheCompany,itsproducts,itscustomersand/oritsthird-partyserviceproviders.Despitetheimplementationofcybersecuritymeasures(includingaccesscontrols,dataencryption,vulnerabilityassessments,continuousmonitoring,andmaintenanceofb

175、ackupandprotectivesystems),theCompanysinformationtechnologysystemsmaystillbevulnerabletocybersecuritythreatsandotherelectronicsecuritybreaches.Itispossibleforsuchvulnerabilitiestoremainundetectedforanextendedperiod.Inaddition,itispossibleasecuritybreachcouldresultintheftoftradesecretsorotherintellec

176、tualpropertyordisclosureofconfidentialcustomer,supplieroremployeeinformation.ShouldtheCompanybeunabletopreventsecuritybreachesorotherdamagetoourinformationtechnologysystems,disruptionscouldhaveanadverseeffectonouroperations,aswellasexposetheCompanytolitigation,liabilityorpenaltiesunderprivacylaws,in

177、creasedcybersecurityprotectioncosts,reputationaldamageandproductfailure.Inaddition,wemustcomplywithincreasinglycomplexandrigorousregulatorystandardsenactedtoprotectbusinessandpersonaldataintheU.S.andelsewhere.Compliancewithprivacyandlocalizationlawsandregulationsincreasesoperationalcomplexity.Failur

178、etocomplywiththeseregulatorystandardscouldsubjectustofinesandpenalties,aswellaslegalandreputationalrisks,includingproceedingsagainsttheCompanybygovernmentalentitiesorothers.Our Products and Services are Highly Sophisticated and Specialized,and a Major Product Failure or Similar Event Caused by Defec

179、ts,Cybersecurity Incidents or Other Failures,Could Adversely Affect Our Business,Reputation,Financial Position and Results of OperationsWeproducehighlysophisticatedproductsandprovidespecializedservicesthatincorporateorusecomplexorleading-edgetechnology,includingbothhardwareandsoftware.Manyofourprodu

180、ctsandservices,includingmeasurementandanalyticalinstrumentation,industrialvalvesandequipment,andprocesscontrolsystems,areintegratedandusedincomplexprocess,hybridanddiscretemanufacturingenvironments.Asaresult,theimpactofacatastrophicproductfailureorsimilareventcouldbesignificant.Whilewehavebuiltopera

181、tionalprocessestoensurethatourproductdesign,manufacture,performanceandservicingmeetrigorousqualitystandards,therecanbenoassurancethatweorourcustomersorotherthirdpartieswillnotexperienceoperationalprocessorproductfailuresandotherproblems,includingthroughmanufacturingordesigndefects,processorotherfail

182、uresofcontractorsorthird-partysuppliers,cybersecurityincidentsorotherintentionalacts,thatcouldresultinpotentialproduct,safety,regulatoryorenvironmentalrisks.Cybersecurityincidentsaimedatthesoftwareembeddedinourproductscouldleadtothird-partyclaimsresultingfromdamagescausedbyourproductfailures,andthis

183、riskisenhancedbytheincreasinglyconnectednatureofourproducts.Thepotentialconsequencesofamaterialcybersecurityincidentincludefinancialloss,reputationaldamage,litigationwiththirdparties,diminutioninthevalueofourinvestmentinresearch,developmentandengineering,andincreasedcybersecurityprotectionandremedia

184、tioncostsduetotheincreasingsophisticationandproliferationofthreats,whichinturncouldadverselyaffectourcompetitivenessandresultsofoperations.9Industry and General Economic RisksThe Coronavirus(COVID-19)Outbreak Adversely Impacted our Business and a Resurgence or Development of New Strains or Variants

185、of COVID-19,or Other Public Health Emergencies,Could in the Future Have a Material Adverse Impact on our Business,Results of Operation,Financial Condition and Liquidity,the Nature and Extent of Which is Highly UncertainTheglobaloutbreakofthecoronavirus(COVID-19)significantlyincreasedeconomic,demanda

186、ndoperationaluncertainty.OuroperationshavegenerallystabilizedsincethepeakoftheCOVID-19pandemicandinMay2023,theWorldHealthOrganizationdeclaredanendtoCOVID-19asapublichealthemergency.However,aresurgenceordevelopmentofnewstrainsofCOVID-19,orotherpublichealthemergencies,couldresultinunpredictablerespons

187、esbyauthoritiesaroundtheworldwhichcouldnegativelyimpactourglobaloperations,customersandsuppliers.Anyfuturepandemicsorpublichealthemergenciescouldresultindisruptionstoourmanufacturingoperations,includinghigherratesofemployeeabsenteeism,andsupplychain,whichcouldnegativelyimpactourabilitytomeetcustomer

188、demand.TheextenttowhichnewstrainsorvariantsofCOVID-19,orotherpublichealthemergencies,couldimpactourbusiness,resultsofoperations,financialconditionorliquidityishighlyuncertainandwoulddependonfuturedevelopments,includingthespreadanddurationofanysuchvirusandthevariants,potentialactionstakenbygovernment

189、alauthorities,andhowquicklyeconomicconditionsstabilizeandrecover.Our Substantial Sales Both in the U.S.and Abroad Subject Us to Economic Risk as Our Results of Operations May Be Adversely Affected by Changes in Government Regulations and Policies and Currency FluctuationsWesell,manufacture,engineera

190、ndpurchaseproductsglobally,withsignificantsalesinbothmatureandemergingmarkets.Weexpectsalesinnon-U.S.marketstocontinuetorepresentasignificantportionofourtotalsales.OurU.S.andinternationaloperationssubjecttheCompanytochangesingovernmentregulationsandpoliciesinalargenumberofjurisdictionsaroundtheworld

191、,includingthoserelatedtotrade,investments,taxation,exchangecontrolsandrepatriationofearnings.Changesinlawsorpoliciesgoverningthetermsofforeigntrade,traderestrictionsorbarriers,tariffsortaxes,tradeprotectionmeasures,andretaliatorycountermeasures,includingonimportsfromcountrieswherewemanufactureproduc

192、ts,couldadverselyimpactourbusinessandfinancialresults.Inaddition,changesintherelativevaluesofcurrenciesoccurfromtimetotimeandhaveaffectedouroperatingresultsandcoulddosointhefuture.Whilewemonitorourexchangerateexposuresandattempttomitigatethisexposurethroughhedgingactivities,thisriskcouldadverselyaff

193、ectouroperatingresults.Recessions,Adverse Market Conditions or Downturns in End Markets We Serve May Negatively Affect Our OperationsIn thepast,ouroperationshavebeenexposedtosignificantvolatilityduetochangesingeneraleconomicconditionsorconsumerpreferences,recessionsoradverseconditionsintheendmarkets

194、weserve.Inthefuture,similarchangescouldadverselyimpactoverallsales,operatingresults(includingpotentialimpairmentchargesforgoodwillorotherlong-livedassets)andcashflows.Moreover,duringeconomicdownturnswemayundertakemoreextensiverestructuringactions,includingworkforcereductions,globalfacilityconsolidat

195、ions,centralizationofcertainbusinesssupportactivities,andothercostreductioninitiatives,andincurhighercosts.Astheseplansandactionscanbecomplex,theanticipatedoperationalimprovements,efficienciesandotherbenefitsmightbedelayedornotrealized.Legal and Regulatory RisksChanges in Tax Rates,Laws or Regulatio

196、ns and the Resolution of Tax Disputes Could Adversely Impact Our Financial Results Asaglobalcompany,wearesubjecttotaxationintheU.S.andnumerousnon-U.S.jurisdictions.Significantjudgmentisrequiredtodetermineourconsolidatedincometaxprovisionandrelatedliabilities.TheCompanyseffectivetaxrate,cashflowsando

197、peratingresultscouldbeaffectedbychangesinthemixofearningsincountrieswithdifferentstatutorytaxrates,aswellasbychangesinthelocaltaxlawsandregulations,ortheinterpretationsthereof.Inaddition,theCompanystaxreturnsaresubjecttoregularreviewandauditbyU.S.andnon-U.S.taxauthorities.Whilewebelieveourtaxprovisi

198、onsareappropriate,thefinaloutcomeoftaxauditsordisputescouldresultinadjustmentstotheCompanystaxliabilities,whichcouldadverselyaffectourfinancialresults.10Our Reputation,Ability To Do Business and Results of Operations Could Be Impaired By Improper Conduct By Any of Our Employees,Agents or Business Pa

199、rtnersWearesubjecttoregulationunderawidevarietyofU.S.federalandstateandnon-U.S.laws,regulationsandpolicies,includinglawsrelatedtoanti-corruption,anti-bribery,exportandimportcompliance,anti-trustandmoneylaundering,duetoourglobaloperations.Inparticular,theU.S.ForeignCorruptPracticesAct,theU.K.BriberyA

200、ctandsimilaranti-briberylawsinotherjurisdictionsgenerallyprohibitcompaniesandtheirintermediariesfrommakingimproperpaymentstogovernmentofficialsforthepurposeofobtainingorretainingbusiness,andweoperateinmanypartsoftheworldthathaveexperiencedgovernmentcorruptiontosomedegree.Wecannotprovideassuranceouri

201、nternalcontrolswillalwaysprotectusfromtheimproperconductofouremployees,agentsandbusinesspartners.AnysuchviolationoflaworimproperactionscouldsubjectustocivilorcriminalinvestigationsintheU.S.andotherjurisdictions,couldleadtosubstantialcivilorcriminal,monetaryandnon-monetarypenaltiesandrelatedsharehold

202、erlawsuits,couldleadtoincreasedcostsofcomplianceandcoulddamageourreputation,ourbusinessandresultsofoperations.We Are Subject to Litigation and Environmental Regulations That Could Adversely Impact Our Operating ResultsWeare,andmayinthefuturebe,apartytoanumberoflegalproceedingsandclaims,includingthos

203、einvolvingintellectualproperty,productliability(includingasbestos)andenvironmentalmatters,severalofwhichclaim,ormayinthefutureclaim,significantdamages.Giventheinherentuncertaintyoflitigation,wecanoffernoassurancethatexistinglitigationorafutureadversedevelopmentwillnothaveamaterialadverseimpact.Weals

204、oaresubjecttovariouslawsandregulationsrelatingtoenvironmentalprotectionandthedischargeofmaterialsintotheenvironment,andwecouldincursubstantialcostsasaresultofthenoncompliancewithorliabilityforcleanuporothercostsordamagesunderenvironmentallaws.Inaddition,increasedpublicawarenessandconcernregardingglo

205、balclimatechangemayresultinmoreinternational,federal,and/orstateorotherstakeholderrequirementsorexpectationsthatcouldresultinmorerestrictiveorexpansivestandards,suchasstricterlimitsongreenhousegasemissionsormoreprescriptivereportingofenvironmental,social,andgovernancemetrics.Therecontinuestobealacko

206、fconsistentclimatechangelegislationandstandards,whichcreateseconomicandregulatoryuncertainty.WhiletheCompanyhasadoptedcertainvoluntarytargets,environmentallaws,regulationsorstandardsmaybechanged,acceleratedoradoptedandimposesignificantoperationalrestrictionsandcompliancerequirementsupontheCompany,it

207、sproductsorcustomers,whichcouldnegativelyimpacttheCompanysbusiness,capitalexpenditures,resultsofoperations,financialconditionandcompetitiveposition.Increasing Interest and Expectations with Respect to Environmental,Social,and Governance(ESG)Matters by Our Various Stakeholders Could Adversely Affect

208、Our Business and Operating ResultsInresponsetogrowingcustomer,investor,employee,governmental,andotherstakeholderinterestinourESGpractices,wehaveincreasedreportingofourESGprogramsandperformanceandhaveestablishedandannouncedouraspirationalpurpose,causes,values,andrelatedcommitments,goalsortargets,incl

209、udingthoseregardingsustainability,greenhousegasemissions,ournetzeroambition,anddiversity,equityandinclusion.Ourabilitytoachievesuchgoalsandaspirationsissubjecttonumerousrisksanduncertainties,manyofwhichrelyonthecollectiveeffortsofothersormaybeoutsideofourcontrol.Suchrisksinclude,amongothers,theavail

210、abilityandadoptionofneworadditionaltechnologiesthatreducecarbonoreliminateenergysourcesonacommerciallyreasonablebasis,competingandevolvingeconomic,policyandregulatoryfactors,theabilityofsuppliersandotherstomeetoursustainability,diversityandothergoals,theavailabilityofqualifiedcandidatesinourlabormar

211、ketsandourabilitytorecruitandretaindiversetalent,andcustomerengagementinourgoals.Theremaybetimeswhereactualoutcomesvaryfromthoseaimedfororexpectedandsometimeschallengesmaydelayorblockprogress.Asaresult,wecannotofferassurancesthattheresultsreflectedorimpliedbyanysuchstatementswillberealizedorachieved

212、.Moreover,standardsandexpectationsforESGmatterscontinuetoevolveandmaybesubjecttovaryinginterpretations,whichmayresultinsignificantrevisionstoourgoalsorprogress.Inaddition,certainofourproductofferingsmaybecomelessattractiveasstandardsevolve.Afailureorperceivedfailuretomeetouraspirationalpurpose,cause

213、s,values,andrelatedcommitments,goalsortargetswithinthetimelinesweannounce,oratall,orafailureorperceivedfailuretomeetevolvingstakeholdersexpectationsandstandards,coulddamageourreputation,adverselyaffectemployeeretentionorengagementorsupportfromourvariousstakeholdersandcouldsubjectustogovernmentenforc

214、ementactionsorpenaltiesandprivatelitigation.SuchoutcomescouldnegativelyimpacttheCompanysbusiness,capitalexpenditures,resultsofoperations,financialconditionandcompetitiveposition.11ITEM 1B-UNRESOLVED STAFF COMMENTSNone.ITEM 2-PROPERTIES AtSeptember30,2023,theCompanyhadapproximately130 manufacturinglo

215、cationsworldwide,ofwhichapproximately40werelocatedintheUnitedStatesand90werelocatedoutsidetheUnitedStates,primarilyinEuropeandAsia,andtoalesserextentinCanadaandLatinAmerica.Manufacturinglocationsbybusinessare:IntelligentDevices,115,including35intheFinalControlsegment,30intheMeasurement&Analyticalseg

216、ment,40intheDiscreteAutomationsegment,and10intheSafety&Productivitysegment;andSoftwareandControl,10,allintheControlSystems&Softwaresegment.Additionally,thereare5locationsthatsupportmultiplesegments.Themajorityofthelocationsareowned,withtheremainderoccupiedunderlease.TheCompanyconsidersitsfacilitiess

217、uitableandadequateforthepurposesforwhichtheyareused.TheCompanyalsomaintainsasmallernumberofadministrative,sales,researchanddevelopment,anddistributionfacilities.ITEM 3-LEGAL PROCEEDINGSTheCompanyanditssubsidiariesarepartytovariouslegalproceedings,someofwhichclaimsubstantialamountsofdamages.Itisnotpo

218、ssibletopredicttheoutcomeofthesematters,buthistoricallytheCompanyhasbeenlargelysuccessfulinbothprosecutinganddefendingclaimsandlawsuits.Giventheuncertaintiesoflitigation,aremotepossibilityexiststhatlitigationcouldhaveamaterialadverseimpactontheCompany;however,theCompanybelievesamaterialadverseimpact

219、ofanypendinglitigationisunlikely.InformationregardinglegalproceedingsissetforthinNote15.ITEM 4-MINE SAFETY DISCLOSURESNotapplicable.INFORMATION ABOUT OUR EXECUTIVE OFFICERSThefollowingsetsforthcertaininformationasofNovember13,2023,withrespecttotheCompanysexecutiveofficers.Theseofficershavebeenelecte

220、dorappointedtotermswhichexpireFebruary6,2024:NamePositionAgeYearFirstAppointed anExecutiveOfficerS.L.KarsanbhaiPresidentandChiefExecutiveOfficer542018R.R.KrishnanExecutiveVicePresidentandChiefOperatingOfficer522021M.J.BaughmanExecutiveVicePresident,ChiefFinancialOfficerandChiefAccountingOfficer58201

221、8S.Y.BoscoSeniorVicePresident,ChiefLegalOfficer652016M.H.TrainSeniorVicePresidentandChiefSustainabilityOfficer612016L.A.FlavinSeniorVicePresident,ChiefTransformationandChiefComplianceOfficer582021P.ZornioSeniorVicePresidentandChiefTechnologyOfficer602022V.RamnathSeniorVicePresidentandChiefMarketingO

222、fficer562023N.PiazzaSeniorVicePresidentandChiefPeopleOfficer452023 12Therearenofamilyrelationshipsamonganyoftheexecutiveofficersanddirectors.LalKarsanbhaihasbeenChiefExecutiveOfficersinceFebruary2021andPresidentsinceMarch2021.Priortohiscurrentposition,Mr.KarsanbhaiwasExecutivePresident-AutomationSol

223、utionsfromOctober2018throughJanuary2021,President-Measurement&Analyticalfrom2016throughSeptember2018,andPresidentEmersonNetworkPowerEurope,MiddleEast&Africafrom2014through2016.RamR.KrishnanwasappointedExecutiveVicePresidentandChiefOperatingOfficerinFebruary2021.Priortohiscurrentposition,Mr.Krishnanw

224、asPresidentFinalControlfromNovember2017toFebruary2021,ChiefOperatingOfficerFinalControlfromJanuary2017toNovember2017,andPresidentFlowSolutionsfrom2016throughJanuary2017.MichaelJ.BaughmanwasappointedExecutiveVicePresidentandChiefFinancialOfficerinMay2023,andChief AccountingOfficerinFebruary2018.Prior

225、tohiscurrentposition,Mr.BaughmanwasnamedVicePresidentandControllerinOctober2017.PriortothatMr.BaughmanwasVicePresident,Finance,GlobalOperations,Quality,andResearchandDevelopmentofBaxterInternationalInc.,aglobalhealthcareproductscompany,from2015throughSeptember2017,andVicePresident,Finance,MedicalPro

226、ductsofBaxterfrom2013to2015.SaraY.BoscowasappointedtoSeniorVicePresident,SecretaryandChiefLegalOfficerinFebruary2023.Priortohercurrentposition,Ms.BoscowasSeniorVicePresident,SecretaryandGeneralCounselfromMay2016throughFebruary2023,andPresident,EmersonAsia-Pacificfrom2008throughMay2016.MichaelH.Train

227、wasappointedSeniorVicePresidentandChiefSustainabilityOfficerinMarch2021.Priortohiscurrentposition,Mr.TrainwasPresidentfromOctober2018toMarch2021andExecutivePresident-AutomationSolutionsfromOctober2016throughOctober2018,ExecutiveVicePresident-AutomationSolutionsfromMay2016throughOctober2016andPreside

228、ntofGlobalSalesforEmersonProcessManagementfrom2010throughMay2016.LisaA.FlavinwasappointedSeniorVicePresidentandChiefComplianceOfficerinMarch2021,andassumedtheadditionalroleofChiefTransformationOfficerin2023.Priortohercurrentposition,Ms.FlavinwasVicePresidentandChiefComplianceOfficerfromFebruary2019t

229、hroughMarch2021andVicePresident,AuditandChiefComplianceOfficerfromFebruary2015throughFebruary2019.PeterZorniowasappointedSeniorVicePresidentandChiefTechnologyOfficerinDecember2022.Priortohiscurrentposition,Mr.ZorniowastheChiefTechnologyOfficerfortheAutomationSolutionsGroupfromJune2017toDecember2022a

230、ndChiefStrategyOfficerforAutomationSolutionsSystemsandSolutionsfromJune2006toJune2017.VidyaRamnathwasappointedtoSeniorVicePresidentandChiefMarketingOfficerinJune2023.Priortohercurrentposition,Ms.RamnathwasPresidentofMiddleEast&Africafrom2019throughJune2023andVicePresidentofAsiaPacificforMeasurement&

231、Analyticalfrom2017through2019.NickPiazzawasappointedSeniorVicePresidentandChiefPeopleOfficerinAugust2023.Priortohiscurrentposition,Mr.PiazzawasVicePresidentofGlobalTalentandHumanResourceOperationsfromAugust2021throughJuly2023,andVicePresidentofHumanResourcesinAsia-PacificforthecompanysAutomationSolu

232、tionsbusinessfromJuly2017throughJuly2021.13Safe Harbor StatementThisAnnualReportonForm10-Kcontainsvariousforward-lookingstatementsandincludesassumptionsconcerningEmersonsoperations,futureresultsandprospects.Theseforward-lookingstatementsarebasedoncurrentexpectationsandaresubjecttorisksanduncertainti

233、es.Emersonundertakesnoobligationtoupdateanysuchstatementstoreflectlaterdevelopments.Inconnectionwiththe“safeharbor”provisionsofthePrivateSecuritiesLitigationReformActof1995,EmersonprovidesthecautionarystatementssetforthunderItem1A-“RiskFactors,”whichareherebyincorporatedbyreferenceandidentifyimporta

234、nteconomic,politicalandtechnologicalfactors,amongothers,changesinwhichcouldcausetheactualresultsoreventstodiffermateriallyfromthosesetforthinorimpliedbytheforward-lookingstatementsandrelatedassumptions.Non-GAAP Financial MeasuresTosupplementtheCompanysfinancialinformationpresentedinaccordancewithU.S

235、.generallyacceptedaccountingprinciples(U.S.GAAP),managementperiodicallyusescertain“non-GAAPfinancialmeasures,”assuchtermisdefinedinRegulationGunderSECrules,toclarifyandenhanceunderstandingofpastperformanceandprospectsforthefuture.Generally,anon-GAAPfinancialmeasureisanumericalmeasureofacompanysopera

236、tingperformance,financialpositionorcashflowsthatexcludesorincludesamountsthatareincludedinorexcludedfromthemostdirectlycomparablemeasurecalculatedandpresentedinaccordancewithU.S.GAAP.Forexample,non-GAAPmeasuresmayexcludetheimpactofcertainitemssuchasacquisitionsordivestitures,amortizationofintangible

237、s,restructuringcosts,discretetaxes,changesinreportingsegments,gains,lossesandimpairments,oritemsoutsideofmanagementscontrol,suchasforeigncurrencyexchangeratefluctuations.Managementbelievesthatthefollowingnon-GAAPfinancialmeasuresprovideinvestorsandanalystsusefulinsightintotheCompanysfinancialpositio

238、nandoperatingperformance.Anynon-GAAPmeasureprovidedshouldbeviewedinadditionto,andnotasanalternativeto,themostdirectlycomparablemeasuredeterminedinaccordancewithU.S.GAAP,asidentifiedinitalicsbelow.Further,thecalculationofthesenon-GAAPfinancialmeasuresmaydifferfromthecalculationofsimilarlytitledfinanc

239、ialmeasurespresentedbyothercompaniesandthereforemaynotbecomparableamongcompanies.Underlyingsales,whichexcludetheimpactofsignificantacquisitions,divestituresandfluctuationsinforeigncurrencyexchangeratesduringtheperiodspresented,areprovidedtofacilitaterelevantperiod-to-periodcomparisonsofsalesgrowthby

240、excludingthoseitemsthatimpactoverallcomparability(U.S.GAAPmeasure:net sales).Operatingprofit(definedasnetsaleslesscostofsalesandselling,generalandadministrativeexpenses)andoperatingprofitmargin(definedasoperatingprofitdividedbynetsales)areindicativeofshort-termoperationalperformanceandongoingprofita

241、bility.Managementcloselymonitorsoperatingprofitandoperatingprofitmarginofeachbusinesstoevaluatepastperformanceandactionsrequiredtoimproveprofitability.EBIT(definedasearningsbeforedeductionsforinterestexpense,net,relatedpartyinterestincome,andincometaxes)andtotalsegmentEBIT,andEBITmargin(definedasEBI

242、Tdividedbynetsales)andtotalsegmentEBITmargin,arefinancialmeasuresthatexcludetheimpactoffinancingonthecapitalstructureandincometaxes.AdjustedEBITAandadjustedsegmentEBITA(definedasearningsexcludinginterestexpense,net,relatedpartyinterestincome,incometaxes,intangiblesamortizationexpense,restructuringex

243、pense,firstyearpurchaseaccountingrelateditemsandtransactionfees,andPART II ITEM 5-MARKET FOR REGISTRANTS COMMON EQUITY,RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES InformationregardingthemarketfortheCompanyscommonstockanddividendpaymentsissetforthinNote22andisherebyincorpora

244、tedbyreference.Therewereapproximately15,200stockholdersofrecordatSeptember30,2023.NeithertheCompanynoranyaffiliatedpurchaserrepurchasedanysharesofCompanycommonstockduringthethree-monthperiodendedSeptember30,2023.InMarch2020,theBoardofDirectorsauthorizedthepurchaseof60millionsharesandatotalofapproxim

245、ately33.3millionsharesremainavailableundertheauthorization.ITEM 6 RESERVEDITEM 7-MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS14certaingains,lossesorimpairments)andadjustedEBITAmarginandadjustedsegmentEBITAmargin(definedasadjustedEBITAdividedbynetsales)aremeasu

246、resusedbymanagementtoevaluatetheCompanysoperationalperformance,astheyexcludetheimpactofacquisition-relatedinvestmentsandnon-operationalitems.EBITDA(definedasEBITexcludingdepreciationandamortization)andEBITDAmargin(definedasEBITDAdividedbynetsales)arealsousedasmeasuresoftheCompanyscurrentoperatingper

247、formance,astheyexcludetheimpactofcapitalandacquisition-relatedinvestments.AdjustedEBITDA(definedasEBITDAexcludingrestructuringexpense,firstyearpurchaseaccountingrelateditemsandtransactionfees,andcertaingains,lossesorimpairments)andadjustedEBITDAmargin(definedasAdjustedEBITDAdividedbynetsales)arealso

248、usedtoexcludetheimpactofnon-operationalitems.Allofthesearecommonlyusedfinancialmeasuresutilizedbymanagementtoevaluateperformance(U.S.GAAPmeasures:pretax earnings or pretax profit margin,segment earnings or segment margin).Earnings,earningspershare,returnoncommonstockholdersequityandreturnontotalcapi

249、talexcludingcertaingainsandlosses,impairments,restructuringcosts,impactsofacquisitionsordivestitures,amortizationofintangibles,discretetaxes,orotheritemsprovideadditionalinsightintotheunderlying,ongoingoperatingperformanceoftheCompanyandfacilitateperiod-to-periodcomparisonsbyexcludingtheearningsimpa

250、ctoftheseitems.Managementbelievesthatpresentingearnings,earningspershare,returnoncommonstockholdersequityandreturnontotalcapitalexcludingtheseitemsismorerepresentativeoftheCompanysoperationalperformanceandmaybemoreusefulforinvestors(U.S.GAAPmeasures:earnings,earnings per share,return on common stock

251、holders equity,return on total capital).Freecashflow(operatingcashflowlesscapitalexpenditures)andfreecashflowasapercentofnetsalesareindicatorsoftheCompanyscashgeneratingcapabilities,dividendsasapercentoffreecashflowisanindicatoroftheCompanysabilitytosupportitsdividend,andfreecashflowconversionofadju

252、stednetearnings(freecashflowdividedbynetearningsadjustedforintangiblesamortizationexpense,restructuringexpense,firstyearpurchaseaccountingrelateditemsandtransactionfees,andcertaingains,lossesorimpairments)isanindicatorofthequalityoftheCompanysearnings,afterconsideringinvestmentsincapitalassetswhicha

253、renecessarytomaintainandenhanceexistingoperations.Thedeterminationofoperatingcashflowaddsbacknoncashdepreciationexpensetoearningsandtherebydoesnotreflectachargefornecessarycapitalexpenditures.Managementbelievesthatfreecashflow,freecashflowasapercentofnetsalesanddividendsasapercentoffreecashflowareus

254、efultobothmanagementandinvestorsasmeasuresoftheCompanysabilitytogeneratecashandsupportitsdividend(U.S.GAAPmeasures:operating cash flow,operating cash flow as a percent of net sales,dividends as a percent of operating cash flow).15FINANCIAL REVIEWReport of ManagementTheCompanysmanagementisresponsible

255、fortheintegrityandaccuracyofthefinancialstatements.Managementbelievesthatthefinancialstatementsforeachoftheyearsinthethree-yearperiodendedSeptember30,2023havebeenpreparedinconformitywithU.S.generallyacceptedaccountingprinciplesappropriateinthecircumstances.Inpreparingthefinancialstatements,managemen

256、tmakesinformedjudgmentsandestimateswherenecessarytoreflecttheexpectedeffectsofeventsandtransactionsthathavenotbeencompleted.TheCompanysdisclosurecontrolsandproceduresensurethatmaterialinformationrequiredtobedisclosedisrecorded,processed,summarizedandcommunicatedtomanagementandreportedwithintherequir

257、edtimeperiods.Inmeetingitsresponsibilityforthereliabilityofthefinancialstatements,managementreliesonasystemofinternalaccountingcontrols.Thissystemisdesignedtoprovidereasonableassurancethatassetsaresafeguardedandtransactionsareexecutedinaccordancewithmanagementsauthorizationandrecordedproperlytopermi

258、tthepreparationoffinancialstatementsinaccordancewithU.S.generallyacceptedaccountingprinciples.Althoughthedesignofthissystemrecognizesthaterrorsorirregularitiesmayoccur,managementbelievesthattheCompanysinternalaccountingcontrolsprovidereasonableassurancethaterrorsorirregularitiesthatcouldbematerialto

259、thefinancialstatementsarepreventedorwouldbedetectedwithinatimelyperiod.TheAuditCommitteeoftheBoardofDirectors,whichiscomposedsolelyofindependentdirectors,isresponsibleforoverseeingtheCompanysfinancialreportingprocess.TheAuditCommitteemeetswithmanagementandtheCompanysinternalauditorsperiodicallytorev

260、iewtheworkofeachandtomonitorthedischargebyeachofitsresponsibilities.TheAuditCommitteealsomeetsperiodicallywiththeindependentauditors,whohavefreeaccesstotheAuditCommitteeandtheBoardofDirectors,todiscussthequalityandacceptabilityoftheCompanysfinancialreportingandinternalcontrols,aswellasnonaudit-relat

261、edservices.TheindependentauditorsareengagedtoexpressanopinionontheCompanysconsolidatedfinancialstatementsandontheCompanysinternalcontroloverfinancialreporting.Theiropinionsarebasedonproceduresthattheybelievetobesufficienttoprovidereasonableassurancethatthefinancialstatementscontainnomaterialerrorsan

262、dthattheCompanysinternalcontrolsareeffective.Managements Report on Internal Control Over Financial ReportingTheCompanysmanagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreportingfortheCompany.WiththeparticipationoftheChiefExecutiveOfficerandtheChiefFinancialOffi

263、cer,managementconductedanevaluationoftheeffectivenessofinternalcontroloverfinancialreportingbasedontheframeworkandthecriteriaestablishedinInternal Control-Integrated Framework(2013),issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.Basedonthisevaluation,managementhasconcludedthati

264、nternalcontroloverfinancialreportingwaseffectiveasofSeptember30,2023.TheCompanysauditor,KPMGLLP,anindependentregisteredpublicaccountingfirm,hasissuedanauditreportontheeffectivenessoftheCompanysinternalcontroloverfinancialreporting./s/S.L.Karsanbhai/s/MichaelJ.BaughmanS.L.KarsanbhaiMichaelJ.BaughmanP

265、resident Executive Vice Presidentand Chief Executive Officerand Chief Financial Officer16Results of OperationsYearsendedSeptember30(DollarsinItem7areinmillions,exceptpershareamountsorwherenoted)20212022202322vs.2123 vs.22Netsales$12,93213,80415,1657%10%Grossprofit$5,7306,3067,42710%18%Percent of sal

266、es44.3%45.7%49.0%1.4pts3.3 ptsSG&A$3,4943,6144,186 Percent of sales27.0%26.2%27.6%(0.8)pts1.4 ptsGainonsubordinatedinterest$(453)(161)Otherdeductions,net$319519683 Amortization of intangibles$277336482 Restructuring costs$1327572Interestexpense,net$15519434 Interestincomefromrelatedparty$(41)Earning

267、sfromcontinuingoperationsbeforeincometaxes$1,7622,4322,72638%12%Percent of sales13.6%17.6%18.0%4.0pts0.4 ptsEarningsfromcontinuingoperationscommonstockholders$1,4141,8862,15233%14%Percent of sales10.9%13.7%14.2%2.8pts0.5 ptsNetearningscommonstockholders$2,3033,23113,21940%309%Percent of sales17.8%23

268、.4%87.2%5.6pts63.8 ptsDilutedEPSEarningsfromcontinuingoperations$2.353.163.7234%18%DilutedEPSNetearnings$3.825.4122.8842%323%AdjustedDilutedEPSEarningsfromcontinuingoperations$3.013.644.4421%22%Returnoncommonstockholdersequity25.2%31.9%85.1%6.7pts53.2 ptsReturnontotalcapital18.1%20.4%66.5%2.3pts46.1

269、 ptsOVERVIEWOverall,salesfor2023were$15.2billion,up10percentcomparedwiththeprioryear,reflectingstronggrowthacrossthemajorityoftheCompanysbusinesssegmentsandallgeographies.Netearningsfromcontinuingoperationsattributabletocommonstockholderswere$2,152in2023,up14percentcomparedwithprioryearearningsof$1,

270、886,anddilutedearningspersharefromcontinuingoperationswere$3.72,up18percentversus$3.16in2022.Adjusteddilutedearningspersharefromcontinuingoperationswere$4.44comparedwith$3.64intheprioryear,reflectingstrongsalesgrowthandoperatingperformance.TheCompanygeneratedoperatingcashflowfromcontinuingoperations

271、of$2.7billionin2023,anincreaseof$678,or33percent,reflectinghigherearnings(excludingtheimpactsinbothyearsfromtheVertivsubordinatedinterestgainsandhigherHeritageAspenTechintangiblesamortizationinthecurrentyear).ThetablebelowpresentstheCompanysdilutedearningspersharefromcontinuingoperationsonanadjusted

272、basistofacilitateperiod-to-periodcomparisonsandprovideadditionalinsightintotheunderlying,ongoingoperatingperformanceoftheCompany.Adjusteddilutedearningspersharefromcontinuingoperationsexcludesintangiblesamortizationexpense,restructuringexpense,firstyearpurchaseaccountingrelateditemsandtransaction-re

273、latedcosts,interestincomeonundeployedproceedsrelatedtotheCopelandtransaction,gainsorlossesontheCopelandequitymethodinvestment,andcertaingains,lossesorimpairments.17202120222023Dilutedearningsfromcontinuingoperationspershare$2.353.163.72Amortizationofintangibles0.380.450.62Restructuringandrelatedcost

274、s0.210.140.14Acquisition/divestiturecostsandpre-acquisitioninterestonAspenTechdebt0.150.13Gainonsubordinatedinterest(0.60)(0.21)NationalInstrumentsinvestmentgain(0.07)Otherinvestment-relatedgains(0.02)AspenTechMicrominepurchasepricehedge0.04(0.02)InterestincomeonundeployedproceedsfromCopelandtransac

275、tion(0.19)LossonCopelandequitymethodinvestment0.24Russiabusinessexitcharge0.320.08OSIfirstyearacquisitionaccountingchargesandfees0.07Adjusteddilutedearningsfromcontinuingoperationspershare$3.013.644.44Thetablebelowsummarizesthechangesinadjusteddilutedearningspersharefromcontinuingoperations.Theitems

276、identifiedbelowarediscussedthroughoutMD&A,seefurtherdiscussionaboveandintheBusinessSegmentsandFinancialPositionsectionsbelow.20222023Adjusteddilutedearningsfromcontinuingoperationspershare-prioryear$3.013.64Operations,includingimpactofAspenTechacquisition0.580.77 Corporate and other0.07 Stock compen

277、sation0.12(0.16)Foreigncurrency(0.02)(0.12)Pensions0.030.07Gainsonsalesofcapitalassetsin20220.02(0.02)Gainsonsalesofinvestmentsin2021(0.03)Effectivetaxrate(0.09)0.01InterestincomeonCopelandnotereceivable0.05 Other(0.01)(0.01)Sharerepurchases0.030.14Adjusteddilutedearningsfromcontinuingoperationspers

278、hare-currentyear$3.644.44NET SALESNetsalesfor2023were$15.2billion,anincreaseof$1.4billion,or10percentcomparedwith2022.IntelligentDevicessalesincreased7percent,whileSoftwareandControlsalesincreased20percent,whichincludedtheimpactoftheHeritageAspenTechacquisition.Underlyingsaleswereup10percenton6perce

279、nthighervolumeand4percenthigherprice.Foreigncurrencytranslationsubtracted2percent,theHeritageAspenTechacquisitionadded3percentandthedivestitureofMetran,EmersonsRussia-basedmanufacturingsubsidiary,deducted1percent.Underlyingsaleswereup11percentintheU.S.andup9percentinternationally.Netsalesfor2022were

280、$13.8billion,anincreaseof$0.9billion,or7percentcomparedwith2021.IntelligentDevicessalesincreased5percent,whileSoftwareandControlsalesincreased16percent.Underlyingsalesincreased7percenton4percenthighervolumeand3percenthigherprice.TheHeritageAspenTechacquisitionadded3percentand foreigncurrencytranslat

281、iondeducted3percent.Underlyingsaleswereup12percentintheU.S.andup5percentinternationally.18INTERNATIONAL SALESEmersonisaglobalbusinesswithinternationalsalesrepresenting58percentoftotalsalesin2023,includingU.S.exports.TheCompanygenerallyexpectsfastereconomicgrowthinemergingmarketsinAsia,LatinAmerica,E

282、asternEuropeandMiddleEast/Africa.Internationaldestinationsales,includingU.S.exports,increased9percent,to$8.9billionin2023,reflectingtheCompanysoverallincreaseinsalesandtheimpactoftheHeritageAspenTechacquisition.U.S.exportsof$1.0billionwereup6percentcomparedwith2022.Underlyinginternationaldestination

283、saleswereup9percent,asforeigncurrencytranslationhada3percentunfavorableimpactonthecomparison,theHeritageAspenTechacquisitionadded3percentandthedivestitureofMetran,EmersonsRussia-basedmanufacturingsubsidiary,deducted1percent.Underlyingsalesincreased10percentinEurope,9percentinAsia,MiddleEast&Africa(C

284、hinaup4percent),14percentinLatinAmericaand1percentinCanada.Originsalesbyinternationalsubsidiaries,includingshipmentstotheU.S.,totaled$7.7billionin2023,up5percentcomparedwith2022.Internationaldestinationsales,includingU.S.exports,increased2percent,to$8.2billionin2022,reflectingtheimpactoftheHeritageA

285、spenTechacquisition.U.S.exportsof$1.0billionwereup51percentcomparedwith2021,includinganincreaseofapproximately$200duetotheHeritageAspenTechacquisition.Underlyinginternationaldestinationsaleswereup5percent,asforeigncurrencytranslationhada5percentunfavorableimpactonthecomparisonandtheHeritageAspenTech

286、acquisitionadded2percent.Underlyingsalesincreased5percentinAsia,MiddleEast&Africa(Chinaup11percent),18percentinLatinAmericaand14percentinCanada,whileEuropewasdownslightly.Originsalesbyinternationalsubsidiaries,includingshipmentstotheU.S.,totaled$7.4billionin2022,down2percentcomparedwith2021.ACQUISIT

287、IONS AND DIVESTITURESPortfoliomanagementisanintegralcomponentofEmersonsgrowthandvaluecreationstrategy.Overthepasttwoyears,theCompanyhastakensignificantactionstoacceleratethetransformationofitsportfoliothroughthecompletionofstrategicacquisitionsanddivestituresofnon-corebusinesses.Theseactionswereunde

288、rtakentocreateahighergrowthandcohesiveindustrialtechnologyportfolioasaglobalautomationleaderservingadiversifiedsetofendmarkets.TheCompanysrecentportfolioactionsincludethefollowingtransactions:OnOctober11,2023,subsequenttoEmersonsfiscalyear-end,theCompanycompletedtheacquisitionofNationalInstrumentsCo

289、rporation(NI)atanequityvalueof$8.2billion.NI,whichprovidessoftware-connectedautomatedtestandmeasurementsystemsthatenableenterprisestobringproductstomarketfasterandatalowercost,hadrevenuesofapproximately$1.7billionandpretaxearningsofapproximately$170forthe12monthsendedSeptember30,2023.In2023,theCompa

290、nyacquiredtwobusinesses,Flexim,whichwillbereportedintheMeasurement&Analyticalsegment,andAfag,whichwillbereportedintheDiscreteAutomationsegment,for$705,netofcashacquired.OnMarch31,2023,EmersoncompletedthedivestitureofMetran,itsRussia-basedmanufacturingsubsidiary.In2023,theCompanyrecognizedapretaxloss

291、of$47inOtherdeductions($47after-tax,intotal$0.08pershare)relatedtoitsexitofbusinessoperationsinRussia.TheCompanyhadpreviouslyannounceditsintentiontoexitbusinessoperationsin2022andrecognizedapretaxlossof$181($190after-tax,intotal$0.32pershare).Thischargeincludedalossof$36inoperationsand$145reportedin

292、Otherdeductions($10ofwhichisreportedinrestructuringcosts)andwasprimarilynon-cash.EmersonshistoricalnetsalesinRussiarepresentedapproximately2.0percentofconsolidatedannualsales.OnMay31,2023,theCompanycompletedthepreviouslyannouncedsaleofamajoritystakeinitsClimateTechnologiesbusiness(whichconstitutesth

293、eformerClimateTechnologiessegment,excludingTherm-O-Discwhichwasdivestedearlierin2022)toprivateequityfundsmanagedbyBlackstoneina$14.0billiontransaction.TheCompanyrecognizedapretaxgainofapproximately$10.6billion(approximately$8.4billionafter-taxincludingtaxexpenserecognizedinpriorquartersrelatedtosubs

294、idiaryrestructurings).ThenewstandalonebusinessisnamedCopeland.OnOctober31,2022,theCompanycompletedthedivestitureofitsInSinkEratorbusiness,whichmanufacturesfoodwastedisposers,toWhirlpoolCorporationfor$3.0billion,andtheCompanyrecognizedapretaxgainofapproximately$2.8billion(approximately$2.1billionafte

295、r-tax)in2023.19OnMay31,2022theCompanycompletedthedivestitureofitsTherm-O-DiscsensingandprotectiontechnologiesbusinesstoanaffiliateofOneRockCapitalPartners,LLC.TheCompanyrecognizedapretaxgainof$486($429after-tax)in2022.ClimateTechnologies,Therm-O-DiscandInSinkEratorarereportedwithindiscontinuedoperat

296、ionsforallperiodspresented.OnMay16,2022,theCompanycompletedthetransactionscontemplatedbyitsdefinitiveagreementwithAspenTechnology,Inc.(HeritageAspenTech)tocontributetwoofEmersonsstand-aloneindustrialsoftwarebusinesses,OpenSystemsInternational,Inc.andtheGeologicalSimulationSoftwarebusiness(collective

297、ly,the“EmersonIndustrialSoftwareBusiness”),alongwithapproximately$6.0billionincashtoHeritageAspenTechstockholders,tocreateNewAspenTech(definedasAspenTechherein).Uponclosingofthetransaction,Emersonowned55percentoftheoutstandingsharesofAspenTechcommonstock(onafullydilutedbasis).AspenTechanditssubsidia

298、riesnowoperateunderHeritageAspenTechspreviousname“AspenTechnology,Inc.”andAspenTechcommonstockistradedonNASDAQunderAspenTechspreviousstocktickersymbol“AZPN.”Duetothetimingoftheacquisition,theresultsforthefirsthalfoffiscal2022donotincludetheresultsofHeritageAspenTech.OnOctober1,2020,theCompanycomplet

299、edtheacquisitionofOpenSystemsInternational,Inc.(OSI),aleadingoperationstechnologysoftwareproviderintheglobalpowerindustry,forapproximately$1.6billion,netofcashacquired.Thisbusinesshadnetsalesof$191in2021andisnowreportedintheAspenTechsegment.SeeNotes4,5,8and23andItem1A-RiskFactorsforfurtherinformatio

300、nonacquisitionsanddivestitures.COST OF SALESCostofsalesfor2023were$7,738,anincreaseof$240comparedwith$7,498in2022.Grossprofitwas$7,427in2023comparedto$6,306in2022,whilegrossmarginincreased 3.3 percentage pointsto49.0percentduetofavorablepricelessnetmaterialinflation,theimpactoftheHeritageAspenTechac

301、quisitionwhichbenefitedmarginsby0.6percentagepoints,andfavorablemix.Costofsalesfor2022were$7,498,anincreaseof$296comparedwith$7,202 in 2021,primarilyduetohighersalesvolumeandhighermaterialscosts.Grossprofitwas$6,306in2022comparedto$5,730 in 2021,whilegrossmarginincreased1.4percentagepointsto45.7perc

302、ent.TheHeritageAspenTechacquisitionbenefitedgrossmargin0.9percentagepointsandfavorablemixalsocontributedtotheincrease.Pricelessnetmaterialinflationwasfavorablebuthadaslightlydilutiveimpactonmargins,whilehigherfreightandotherinflationalsonegativelyimpactedmargins.SELLING,GENERAL AND ADMINISTRATIVE EX

303、PENSESSG&Aexpensesof$4,186in2023increased$572comparedwith2022andSG&Aasapercentofsalesincreased1.4percentagepointsto27.6percent,reflectingtheHeritageAspenTechacquisitionandhigherstockcompensationexpenseof$125,ofwhich$75relatedtoEmersonstockplansduetoahighersharepriceand$50wasattributabletoAspenTechst

304、ockplans.Theseitemswerepartiallyoffsetbystrongoperatingleverageonhighersales.SG&Aexpensesof$3,614in2022increased$120comparedwith2021,reflectingtheimpactofhighersalesandhigherwageandotherinflation.SG&Aasapercentofsalesdecreased0.8percentagepointsto26.2percent,reflectinglowerstockcompensationexpenseof

305、$72duetoalowersharepricein2022(0.6percentagepoints)andleverageonhighersales.GAIN ON SUBORDINATED INTERESTInthefirstquarterof2022,theCompanyreceivedadistributionof$438relatedtoitssubordinatedinterestinVertiv(intotal,apretaxgainof$453wasrecognizedinthefirstquarterof2022,$358after-tax,$0.60pershare)and

306、receivedthe remaining$15relatedtothepretaxgaininthefirstquarterof2023.In2023,theCompanyreceivedadditionaldistributionstotaling$161($122after-tax,$0.21pershare).Basedonthetermsoftheagreementandthecurrentcalculation,theCompanycouldreceiveadditionaldistributionsofapproximately$40.Theremainingdistributi

307、onsarecontingentonthetimingandpriceatwhichVertivsharesaresoldbytheequityholdersandtherefore,therecanbenoassuranceastotheamountortimingoftheremainingdistributionstotheCompany.20OTHER DEDUCTIONS,NETOtherdeductions,netwere$683in2023,anincreaseof$164comparedwith2022,reflectingalossof$177ontheCompanysequ

308、itymethodinvestmentinCopeland,higherintangiblesamortizationof$146primarilyrelatedtotheHeritageAspenTechacquisition,andanunfavorableimpactfromforeigncurrencytransactionsof$112reflectinglossesinthecurrentyearcomparedtogainsintheprioryear.Theprioryearincludedachargeof$145relatedtotheCompanyexitingitsbu

309、sinessinRussiacomparedtoachargeof$47inthecurrentyear.Thecurrentyearalsoincludedamark-to-marketgainof$56ontheCompanysequityinvestmentinNI,andamark-to-marketgainof$24relatedtoforeigncurrencyforwardcontractsenteredintobyAspenTechtomitigatetheimpactofforeigncurrencyexchangeassociatedwiththeMicrominepurc

310、hasepricecomparedtoalossof$50intheprioryear.OnJune21,2023,AspenTechterminatedalloutstandingforeigncurrencyforwardcontracts.Otherdeductions,netwere$519in2022,anincreaseof$200comparedwith2021,reflectingachargeof$145relatedtotheCompanyexitingitsbusinessinRussia($10ofwhichisreportedinrestructuringcosts)

311、,acquisition/divestiturecostsof$91,higherintangiblesamortizationof$59,primarilyrelatedtotheHeritageAspenTechacquisition,andamark-to-marketlossof$50relatedtoforeigncurrencyforwardcontractsenteredintobyAspenTechtomitigatetheimpactofforeigncurrencyexchangeassociatedwiththeMicrominepurchaseprice.Theseit

312、emswerepartiallyoffsetbylowerrestructuringcostsof$57.SeeNotes6and7.INTEREST EXPENSE,NETInterestexpense,netwas$34,$194 and$155in2023,2022and2021,respectively.Thedecreasein2023reflectsinterestincomeonundeployedproceedsfromtheCopelandtransactionof$141($108after-tax,$0.19pershare).Theincreasein2022compa

313、redto2021reflectstheissuanceof$3billionoflong-termdebtinDecember2021tosupporttheAspenTechtransaction,partiallyoffsetby$500ofnotesthatmaturedinthefirstquarterof2022.Interestincomefromrelatedpartywas$41in2023andreflectsnon-cashinterestincomeontheCopelandnotereceivable,whichiscapitalizedtothecarryingva

314、lueofthenote.EARNINGS BEFORE INCOME TAXESPretaxearningsfromcontinuingoperationsof$2,726increased$294in2023,up12percentcomparedwith2022,reflectingstrongoperatingresultsinthecurrentyear.Earningsincreased$447inIntelligentDevicesanddecreased$27inSoftwareandControl(reflectingtheimpactofhigherintangiblesa

315、mortizationduetotheHeritageAspenTechacquisition).Pretaxearningsfromcontinuingoperationsof$2,432increased$670in2022,up38percentcomparedwith2021,reflectingtheimpactoftheVertivgaindiscussedaboveandstrongearnings,whichincreased$340inIntelligentDevicesandincreased$74inSoftwareandControl.SeetheBusinessSeg

316、mentsdiscussionthatfollowsandNote20.INCOME TAXESIncometaxeswere$599,$549and$346for2023,2022and2021,respectively,resultingineffectivetaxratesof22percent,23percentand20percentin2023,2022and2021,respectively.Theratein2022reflectedtheimpactoftheRussiabusinessexitwhichwasessentiallyoffsetbyabenefitrelate

317、dtothecompletionoftaxexaminations.SeeNote16.NET EARNINGS AND EARNINGS PER SHARENetearningsfromcontinuingoperationsattributabletocommonstockholdersin2023were$2,152,up14percentcomparedwith2022,anddilutedearningspersharefromcontinuingoperationswere$3.72,up18percentcomparedwith$3.16in2022,reflectingstro

318、ngoperatingresults.Adjusteddilutedearningspersharefromcontinuingoperationswere$4.44comparedwith$3.64intheprioryear.SeetheanalysisofadjustedearningspershareintheOverviewsectionforfurtherdetails.Earningsfromdiscontinuedoperationsattributabletocommonstockholdersin2023were$11,067($19.16pershare)whichinc

319、ludedthe$8.4billionafter-taxgainontheCopelandtransactionandthe$2.1billionafter-taxgainonthedivestitureofInSinkErator,comparedto$1,345($2.25pershare)in2022.SeeNote5.Net earnings attributabletocommonstockholderswere$13,219($22.88pershare)comparedwith$3,231($5.41pershare)in2022.21Netearningsfromcontinu

320、ingoperationsattributabletocommonstockholdersin2022were$1,886,up33percentcomparedwith2021,anddilutedearningspersharefromcontinuingoperationswere$3.16,up34percentcomparedwith$2.35in2021.Resultsreflectedstrongoperatingresultsandincludedagainof$0.60persharerelatedtotheCompanyssubordinatedinterestinVert

321、iv.Adjusteddilutedearningspersharefromcontinuingoperationswere$3.64comparedwith$3.01intheprioryear.SeetheanalysisofadjustedearningspershareintheOverviewsectionforfurtherdetails.Earningsfromdiscontinuedoperationsattributabletocommonstockholdersin2022were$1,345($2.25pershare)comparedto$889($1.47persha

322、re)in2021,reflectinganafter-taxgainof$429($0.72pershare)relatedtotheTherm-O-Discdivestiturein2022.SeeNote5.Netearningscommonstockholderswere$3,231($5.41pershare)in2022comparedwith$2,303($3.82pershare)in2021.Thetablebelow,whichshowsresultsonanadjustedEBITAbasis,isintendedtosupplementtheCompanysdiscus

323、sionofitsresultsofoperationsherein.TwelveMonthsEndedSeptember3020212022202322vs.2123 vs.22Earningsfromcontinuingoperationsbeforeincometaxes$1,7622,4322,72638%12%Percent of sales13.6%17.6%18.0%4.0 pts0.4 ptsInterestexpense,net15519434Interestincomefromrelatedparty(41)Amortizationofintangibles30443067

324、8Restructuringandrelatedcosts16610592Acquisition/divestitureandrelatedcosts9184Gainonsubordinatedinterest(453)(161)NationalInstrumentsinvestmentgain(56)Otherinvestment-relatedgains(14)AspenTechMicrominepurchasepricehedge50(24)LossonCopelandequitymethodinvestment177Russiabusinessexitcharge18147OSIfir

325、styearacquisitionaccountingcharges50AdjustedEBITAfromcontinuingoperations$2,4373,0163,55624%18%Percent of sales18.8%21.8%23.4%3.0 pts1.6 ptsRETURNS ON EQUITY AND TOTAL CAPITALReturnoncommonstockholdersequity(netearningsattributabletocommonstockholdersdividedbyaveragecommonstockholdersequity)was85.1p

326、ercentin2023comparedwith31.9percentin2022and25.2percentin2021.Returnontotalcapital(computedasnetearningsattributabletocommonstockholdersexcludingafter-taxnetinterestexpense,dividedbyaveragecommonstockholdersequityplusshort-andlong-termdebtlesscashandshort-terminvestments)was66.5percentin2023compared

327、with20.4percentin2022and18.1percentin2021.Thehigherreturnsin2023includedtheimpactoftheafter-taxgainfromtheCopelandtransaction(approximately$8.4billion),theafter-taxgainontheInSinkEratordivestiture(approximately$2.1billion),theVertivsubordinatedinterestafter-taxgainof$122,theNationalInstrumentsinvest

328、mentafter-taxgainof$43,theafter-taxlossontheCopelandequitymethodinvestmentof$134,after-taxacquisition/divestiturecostsof$78,andtheRussiabusinessexitafter-taxlossof$47.Thehigherreturnsin2022includedtheimpactoftheVertivsubordinatedinterestafter-taxgainof$358,theafter-taxgainontheTherm-O-Discdivestitur

329、eof$429,after-taxacquisition/divestiturecostsof$93(includingamountsreportedindiscontinuedoperations),andtheRussiabusinessexitafter-taxlossof$190.Excludingtheseitemsinbothyears,returnoncommonstockholdersequitywas17.9percentand26.9percentin2023and2022,respectively,andreturnontotalcapitalwas14.0percent

330、and17.4percent,respectively.Thedecreasein2023reflectstheincreasetoequityfromtheafter-taxgainsontheCopelandtransactionandInSinkEratordivestiture.Business SegmentsFollowingisananalysisofsegmentresultsfor2023comparedwith2022,and2022comparedwith2021.TheCompanydefinessegmentearningsasearningsbeforeintere

331、standincometaxes.22INTELLIGENT DEVICES20222023ChangeFXAcq/DivU/LSales:FinalControl$3,6073,97010%2%1%13%Measurement&Analytical3,2153,59512%2%2%16%DiscreteAutomation2,6122,6351%2%3%Safety&Productivity1,4021,388(1)%(1)%Total$10,83611,5887%2%1%10%Earnings:FinalControl$59286546%Measurement&Analytical7859

332、3619%DiscreteAutomation542509(6)%Safety&Productivity25030622%Total$2,1692,61621%Margin20.0%22.6%2.6ptsAmortizationofintangibles:FinalControl$9488Measurement&Analytical2127DiscreteAutomation3029Safety&Productivity2626Total$171170Restructuringandrelatedcosts:FinalControl$7528Measurement&Analytical313D

333、iscreteAutomation27Safety&Productivity10Total$8868AdjustedEBITA$2,4282,85418%Adjusted EBITA Margin22.4%24.6%2.2pts2023 vs.2022-IntelligentDevicessaleswere$11.6billionin2023,anincreaseof$752,or7percent.Underlyingsalesincreased10percenton5percenthighervolumeand5percenthigherprice.Underlyingsalesincreased11percentintheAmericas(U.S.up12percent),increased9percentinEuropeandincreased8percentinAsia,Middl