0000032604falseCommon Stock of $0.50 par value per shareEMRCHX00000326042023-04-062023-04-060000032604exch:XNYSemr:CommonStockof0.50parvaluepershareMember2023-04-062023-04-060000032604exch:XNYSemr:A0.375Notesdue2024Member2023-04-062023-04-060000032604exch:XNYSemr:A1.250Notesdue2025Member2023-04-062023-04-060000032604exch:XNYSemr:A2.000Notesdue2029Member2023-04-062023-04-060000032604exch:XCHIemr:CommonStockof0.50parvaluepershareMember2023-04-062023-04-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event

reported): April 6, 2023

Emerson Electric Co.

-------------------------------------------------

(Exact Name of Registrant as Specified in Charter)

Missouri			1-278			43-0259330
--------------------------------- (State or Other Jurisdiction of Incorporation)			------------------- (Commission			--------------------------- (I.R.S. Employer Identification Number)
			File Number)

8000 West Florissant Avenue
St. Louis,			Missouri						63136
------------------------------------------------ (Address of Principal Executive Offices)									------------------ (Zip Code)

Registrant’s telephone number, including area code:

(314) 553-2000

------------------------------------------

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock of $0.50 par value per share			EMR			New York Stock Exchange
						NYSE Chicago
0.375% Notes due 2024			EMR 24			New York Stock Exchange
1.250% Notes due 2025			EMR 25A			New York Stock Exchange
2.000% Notes due 2029			EMR 29			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐    

---

Item 2.02 Results of Operations and Financial Condition

 

Emerson Electric Co. ("Emerson" or the "Company") is providing supplemental unaudited historical results to facilitate investors' understanding of the Company's consolidated and segment results. The information within this document is intended to provide investors with the presentation of our financial results that we expect to use in future earnings releases, and provide further clarification of AspenTech's financial results within Emerson's consolidated financial results. Additionally, historical underlying sales for the new segments is provided for fiscal 2022 on a quarterly basis. The information in Exhibit 99.1 has been reported within Emerson's consolidated results, does not represent a restatement of previously issued financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. The information contained in this Form 8-K is being provided voluntarily and shall not be deemed “filed” for purposes of, or subject to liability under, Section 18 of the Securities Exchange Act of 1934, and shall not be deemed incorporated by reference into any Company filing with the Securities and Exchange Commission.

 

Non-GAAP Financial Measures

 

The supplemental unaudited historical results contain non-GAAP financial measures as such term is defined in Regulation G under the rules of the Securities and Exchange Commission. While the Company believes these non-GAAP financial measures are useful in evaluating the Company, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Further, these non-GAAP financial measures may differ from similarly titled measures presented by other companies. The reasons management believes that these non-GAAP financial measures provide useful information are set forth in the Company’s most recent Form 10-K filed with the Securities and Exchange Commission and in the supplemental tables furnished with this Form 8-K.

Forward-Looking and Cautionary Statements

Statements in this Current Report on Form 8-K that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the Company's ability to successfully complete on the terms and conditions contemplated, and the financial impact of, the proposed Climate Technologies transaction, the potential National Instruments transaction, the scope, duration and ultimate impacts of the COVID-19 pandemic and the Russia-Ukraine conflict, as well as the economic and currency conditions, market demand, including related to the pandemic and oil and gas price declines and volatility, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC.

Item 9.01 Financial Statements and Exhibits

The Company is including herein supplemental unaudited historical information for the quarters ended December 31, 2022 and 2021. Fiscal year 2022 underlying sales growth by quarter for its consolidated results and business segments is also provided. This information is attached as Exhibit 99.1 and incorporated herein by reference.

 

(d) Exhibits.

 

Exhibit Number						Description of Exhibits
99.1						Supplemental unaudited historical information for the quarters ended December 31, 2022, and 2021, and underlying sales growth for the quarters ended December 31, 2021, March 31, 2022, June 30, 2022, and quarter and year ended September 30, 2022.
104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

 

---

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

						EMERSON ELECTRIC CO. (Registrant)
Date:			April 6, 2023			By:			/s/ John A. Sperino
									John A. Sperino Vice President and Assistant Secretary

  

									Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

						Quarter Ended Dec 31												Percent Change
						2021						2022
Net sales						$3,156						$3,373						7		%
Cost of sales						1,741						1,753
Selling, general and administrative expenses						849						1,030
Gain on subordinated interest						(453)						—
Other deductions, net						38						120
Interest expense, net						39						48
Earnings from continuing operations before income taxes						942						422						(55)		%
															98
Income taxes						196						98
Earnings from continuing operations						746						324						(57)		%
Discontinued operations, net of tax: $84 and $966, respectively						149						2,002
Net earnings						895						2,326
Less: Noncontrolling interests in subsidiaries						(1)						(5)
Net earnings common stockholders						$896						$2,331						160		%
Earnings common stockholders
Earnings from continuing operations						$746						$329						(56)		%
Discontinued operations						150						2,002
Net earnings common stockholders						$896						$2,331						160		%
Diluted average shares outstanding						598.1						586.7
Diluted earnings per share common stockholders
Earnings from continuing operations						$1.25						$0.56						(55)		%
Discontinued operations						0.25						3.41
Diluted earnings per common share						$1.50						$3.97						165		%

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Page 2

									Table 2
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(AMOUNTS IN MILLIONS, UNAUDITED)

The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to supplement the Company's results of operations, including its segment earnings which are defined as earnings before interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA, and adjusted segment and total segment EBITA margin are measures used by management and may be useful for investors to evaluate the Company's segments' operational performance.

			Quarter Ended Dec 31												Sales Growth
			2021						2022						Reported						Underlying
Sales
Final Control			$817						$862						6		%				10		%
Measurement & Analytical			737						749						2		%				6		%
Discrete Automation			617						618						—		%				6		%
Safety & Productivity			351						310						(12)		%				(10)		%
Intelligent Devices			$2,522						$2,539						1		%				5		%
Control Systems & Software			570						606						6		%				10		%
AspenTech			82						243						197		%				N/A
Software and Control			$652						$849						30		%				10		%
Eliminations			(18)						(15)
Total			$3,156						$3,373						7		%				6		%

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Page 3

									Table 2 cont.

			Quarter Ended Dec 31												Quarter Ended Dec 31
			2021												2022
			As Reported (GAAP)						Adjusted EBITA (Non-GAAP)						As Reported (GAAP)						Adjusted EBITA (Non-GAAP)
Earnings
Final Control			$122						$153						$158						$184
Margins			14.9		%				18.7		%				18.4		%				21.4		%
Measurement & Analytical			170						178						175						181
Margins			23.0		%				24.1		%				23.4		%				24.1		%
Discrete Automation			120						130						121						129
Margins			19.4		%				21.0		%				19.6		%				21.0		%
Safety & Productivity			65						72						63						69
Margins			18.6		%				20.8		%				20.4		%				22.4		%
Intelligent Devices			$477						$533						$517						$563
Margins			18.9		%				21.1		%				20.4		%				22.2		%
Control Systems & Software			116						122						107						114
Margins			20.4		%				21.4		%				17.6		%				18.7		%
AspenTech			(2)						20						(33)						88
Margins			(2.3)		%				24.9		%				(13.6)		%				36.6		%
Software and Control			$114						$142						$74						$202
Margins			17.6		%				21.8		%				8.7		%				23.8		%
Corporate items and interest expense, net:
Stock compensation			(34)						(34)						(102)						(102)
Unallocated pension and postretirement costs			26						26						45						45
Corporate and other			(55)						(31)						(64)						(44)
Gain on subordinated interest			453												—
Interest expense, net			(39)												(48)
Pretax Earnings / Adjusted EBITA			$942						$636						$422						$664
Margins			29.8		%				20.1		%				12.5		%				19.7		%
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA									$675												$765
Margins									21.4		%										22.7		%

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Page 4

									Table 2 cont.

			Quarter Ended Dec 31												Quarter Ended Dec 31
			2021												2022
			Amortization of Intangibles1						Restructuring and Related Costs2						Amortization of Intangibles1						Restructuring and Related Costs2
Final Control			$24						$7						$22						$4
Measurement & Analytical			6						2						5						1
Discrete Automation			8						2						7						1
Safety & Productivity			6						1						6						—
Intelligent Devices			$44						$12						$40						$6
Control Systems & Software			5						1						6						1
AspenTech			22						—						121						—
Software and Control			$27						$1						$127						$1
Corporate			—						1						—						8
Total			$71						$14						$167						$15
1 Amortization of intangibles includes $14 and $49 reported in cost of sales for the three months ended December 31, 2021 and 2022, respectively.
2 Restructuring and related costs includes $8 and $5 reported in cost of sales for the three months ended December 31, 2021 and 2022, respectively.

									Table 3

EMERSON AND SUBSIDIARIES
ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL
(AMOUNTS IN MILLIONS, UNAUDITED)

The following table shows the Company's corporate and other expenses on an adjusted basis. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.

															Quarter Ended Dec 31
Corporate and Other															2021						2022
Corporate and other (GAAP)															$(55)						$(64)
Corporate restructuring and related costs															1						8
Acquisition / divestiture costs															23						—
Russia business exit															—						47
AspenTech Micromine purchase price hedge															—						(35)
Adjusted corporate and other (Non-GAAP)															$(31)						$(44)

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Page 5

						Table 4
EMERSON AND SUBSIDIARIES
ADJUSTED EBITA & EPS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis, are intended to supplement the Company's results of operations. The Company defines adjusted EBITA as earnings excluding net interest expense, income taxes, intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.

			Quarter Ended Dec 31
			2021						2022
Pretax earnings			$942						$422
Percent of sales			29.8		%				12.5		%
Interest expense, net			39						48
Amortization of intangibles			71						167
Restructuring and related costs			14						15
Gain on subordinated interest			(453)						—
Acquisition/divestiture costs			23						—
Russia business exit			—						47
AspenTech Micromine purchase price hedge			—						(35)
Adjusted EBITA			$636						$664
Percent of sales			20.1		%				19.7		%
			Quarter Ended Dec 31
			2021						2022
GAAP earnings from continuing operations per share			$1.25						$0.56
Amortization of intangibles			0.09						0.15
Restructuring and related costs			0.02						0.02
Gain on subordinated interest			(0.60)						—
Acquisition/divestiture costs			0.03						—
Russia business exit			—						0.08
AspenTech Micromine purchase price hedge			—						(0.03)
Adjusted earnings from continuing operations per share			$0.79						$0.78
AspenTech contribution to adjusted earnings per share									(0.05)
Adjusted earnings per share excluding AspenTech contribution									$0.73

        

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Page 6

Table 4 cont.

Quarter Ended December 31, 2022
			Pretax Earnings						Income Taxes						Earnings from Cont. Ops.						Non-Controlling Interests			3			Net Earnings Common Stockholders						Diluted Earnings Per Share
As reported (GAAP)			$422						$98						$324						$(5)						$329						$0.56
Amortization of intangibles			167			1			38						129						42						87						0.15
Restructuring and related costs			15			2			4						11												11						0.02
Russia business exit			47						2						45												45						0.08
AspenTech Micromine purchase price hedge			(35)						(8)						(27)						(12)						(15)						(0.03)
Adjusted (Non-GAAP)			$616						$134						$482						$25						$457						$0.78
Interest expense			48
Adjusted EBITA (Non-GAAP)			$664
1 Amortization of intangibles includes $49 reported in cost of sales.
2 Restructuring and related costs includes $5 reported in cost of sales.
3 Represents the 45 percent non-controlling interest in AspenTech applied to AspenTech's share of each adjustment presented herein and eliminated from Emerson's consolidated results.

Table 5
EMERSON AND SUBSIDIARIES
ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables reconcile the financial results of AspenTech reported to its shareholders with the amounts included in Emerson's consolidated financial results. Emerson owns 55 percent of AspenTech, a separately traded public company (NASDAQ: AZPN), and consolidates AspenTech in its financial results. The 45 percent non-controlling interest in AspenTech is removed from Emerson's net earnings common stockholders through the non-controlling interest line item. AspenTech is also one of Emerson's segments and its GAAP segment earnings is reconciled below to its consolidated impact to clarify that certain items are reported outside of its segment earnings within Emerson corporate, including interest income, stock compensation and the Micromine purchase price hedge.

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Page 7

Quarter Ended December 31, 2022
			Pretax Earnings						Income Taxes						Earnings from Cont. Ops.						Non-Controlling Interests			5			Net Earnings Common Stockholders						Diluted Earnings Per Share
Standalone reporting (GAAP)			$(17)			1			$49						$(66)
Interim tax reporting			0						(54)			2			54
Reported in Emerson consolidation (GAAP)			(17)						(5)						(12)						(5)						(7)						$(0.01)
Adjustments:
Amortization of intangibles			121			3			28						93						42						51						0.09
AspenTech Micromine purchase price hedge			(35)			4			(8)						(27)						(12)						(15)						(0.03)
Adjusted (Non-GAAP)			$69						$15						$54						$25						$29						$0.05
Interest income			(4)			4
Stock compensation			23			4
Adjusted Segment EBITA (Non-GAAP)			$88
Reconciliation to Segment EBIT
Pre-tax earnings			$(17)
Interest income			(4)			4
Stock compensation			23			4
Micromine purchase price hedge			(35)			4
Segment EBIT (GAAP)			(33)
Amortization of intangibles			121			3
Adjusted Segment EBITA (Non-GAAP)			$88
1 Amount reflects AspenTech's pretax earnings for the three months ended December 31, 2022, reported in its standalone quarterly report on Form 10-Q.
2 GAAP income taxes reported by AspenTech differ from the amount reflected in Emerson's consolidated financial statements due to the application of the ASC 740 interim tax rules at the AspenTech entity level in their stand-alone publicly reported financial statements as compared to the amount computed at the Emerson consolidated level.
3 Amortization of intangibles includes $48 reported in cost of sales.
4 Reported in Emerson corporate line items.
5 Represents the 45 percent non-controlling interest in AspenTech applied to each adjustment presented herein and eliminated from Emerson's consolidated results.

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Page 8

Table 6
EMERSON AND SUBSIDIARIES
UNDERLYING SALES GROWTH SUPPLEMENTAL

			Fiscal Year 2022
			Q1						Q2						Q3						Q4						FY
Final Control			2		%				8		%				7		%				9		%				7		%
Measurement & Analytical			6		%				7		%				4		%				12		%				7		%
Discrete Automation			12		%				9		%				3		%				15		%				10		%
Safety & Productivity			17		%				6		%				6		%				—		%				7		%
Intelligent Devices			8		%				7		%				5		%				10		%				8		%
Control Systems & Software			1		%				7		%				3		%				16		%				7		%
AspenTech			N/A						N/A						N/A						N/A						N/A
Software and Control			1		%				7		%				3		%				16		%				7		%
Total			6		%				7		%				4		%				11		%				7		%

Reconciliations of Non-GAAP Financial Measures & Other

Table 7

Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 2 through 5 for additional non-GAAP reconciliations.

Q1 FY23 Underlying Sales Change						Final Control			Measurement & Analytical			Discrete Automation			Safety & Productivity			Intelligent Devices
Reported (GAAP)						6		%	2		%	—		%	(12)		%	1		%
(Favorable) / Unfavorable FX						4		%	4		%	6		%	2		%	4		%
(Acquisitions) / Divestitures						—		%	—		%	—		%	—		%	—		%
Underlying (Non-GAAP)						10		%	6		%	6		%	(10)		%	5		%

Q1 FY23 Underlying Sales Change						Control Systems & Software			AspenTech			Software and Control						Emerson
Reported (GAAP)						6		%	197		%	30		%				7		%
(Favorable) / Unfavorable FX						4		%	—		%	4		%				4		%
(Acquisitions) / Divestitures						—		%	(197)		%	(24)		%				(5)		%
Underlying (Non-GAAP)						10		%	—		%	10		%				6		%

FY22 Underlying Sales Change						Emerson
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						6		%	5		%	5		%	11		%	7		%
(Favorable) / Unfavorable FX						1		%	2		%	4		%	5		%	3		%
(Acquisitions) / Divestitures						(1)		%	—		%	(5)		%	(5)		%	(3)		%
Underlying (Non-GAAP)						6		%	7		%	4		%	11		%	7		%

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Page 9

Table 7 cont.

FY22 Underlying Sales Change						Final Control
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						1		%	6		%	3		%	4		%	4		%
(Favorable) / Unfavorable FX						1		%	2		%	4		%	5		%	3		%
(Acquisitions) / Divestitures						—		%	—		%	—		%	—		%	—		%
Underlying (Non-GAAP)						2		%	8		%	7		%	9		%	7		%

FY22 Underlying Sales Change						Measurement & Analytical
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						5		%	5		%	1		%	7		%	4		%
(Favorable) / Unfavorable FX						1		%	2		%	3		%	5		%	3		%
(Acquisitions) / Divestitures						—		%	—		%	—		%	—		%	—		%
Underlying (Non-GAAP)						6		%	7		%	4		%	12		%	7		%

FY22 Underlying Sales Change						Discrete Automation
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						11		%	6		%	(2)		%	8		%	6		%
(Favorable) / Unfavorable FX						1		%	3		%	5		%	7		%	4		%
(Acquisitions) / Divestitures						—		%	—		%	—		%	—		%	—		%
Underlying (Non-GAAP)						12		%	9		%	3		%	15		%	10		%

FY22 Underlying Sales Change						Safety & Productivity
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						16		%	4		%	3		%	(4)		%	5		%
(Favorable) / Unfavorable FX						1		%	2		%	3		%	4		%	2		%
(Acquisitions) / Divestitures						—		%	—		%	—		%	—		%	—		%
Underlying (Non-GAAP)						17		%	6		%	6		%	—		%	7		%

FY22 Underlying Sales Change						Intelligent Devices
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						7		%	5		%	1		%	5		%	5		%
(Favorable) / Unfavorable FX						1		%	2		%	4		%	5		%	3		%
(Acquisitions) / Divestitures						—		%	—		%	—		%	—		%	—		%
Underlying (Non-GAAP)						8		%	7		%	5		%	10		%	8		%

FY22 Underlying Sales Change						Control Systems & Software
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						—		%	5		%	(1)		%	10		%	3		%
(Favorable) / Unfavorable FX						1		%	2		%	4		%	6		%	4		%
(Acquisitions) / Divestitures						—		%	—		%	—		%	—		%	—		%
Underlying (Non-GAAP)						1		%	7		%	3		%	16		%	7		%

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Page 10

Table 7 cont.

FY22 Underlying Sales Change						AspenTech
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						11		%	(1)		%	191		%	217		%	106		%
(Favorable) / Unfavorable FX						N/A			N/A			N/A			N/A			N/A
(Acquisitions) / Divestitures						(11)		%	1		%	(191)		%	(217)		%	(106)		%
Underlying (Non-GAAP)						N/A			N/A			N/A			N/A			N/A

FY22 Underlying Sales Change						Software and Control
						Q1			Q2			Q3			Q4			FY
Reported (GAAP)						1		%	4		%	23		%	34		%	16		%
(Favorable) / Unfavorable FX						1		%	2		%	4		%	6		%	4		%
(Acquisitions) / Divestitures						(1)		%	1		%	(24)		%	(24)		%	(13)		%
Underlying (Non-GAAP)						1		%	7		%	3		%	16		%	7		%

Final Control Adjusted EBITA																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Business Segment EBIT / EBIT margin (GAAP)																		$122						$158						14.9		%				18.4		%
Amortization of intangibles and restructuring and related costs																		31						26						3.8		%				3.0		%
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)																		$153						$184						18.7		%				21.4		%

Measurement & Analytical Adjusted EBITA																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Business Segment EBIT / EBIT margin (GAAP)																		$170						$175						23.0		%				23.4		%
Amortization of intangibles and restructuring and related costs																		8						6						1.1		%				0.7		%
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)																		$178						$181						24.1		%				24.1		%

Discrete Automation Adjusted EBITA																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Business Segment EBIT / EBIT margin (GAAP)																		$120						$121						19.4		%				19.6		%
Amortization of intangibles and restructuring and related costs																		10						8						1.6		%				1.4		%
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)																		$130						$129						21.0		%				21.0		%

Safety & Productivity Adjusted EBITA																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Business Segment EBIT / EBIT margin (GAAP)																		$65						$63						18.6		%				20.4		%
Amortization of intangibles and restructuring and related costs																		7						6						2.2		%				2.0		%
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)																		$72						$69						20.8		%				22.4		%

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Page 11

Table 7 cont.

Intelligent Devices Adjusted EBITA																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Business Segment EBIT / EBIT margin (GAAP)																		$477						$517						18.9		%				20.4		%
Amortization of intangibles and restructuring and related costs																		56						46						2.2		%				1.8		%
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)																		$533						$563						21.1		%				22.2		%

Control Systems & Software Adjusted EBITA																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Business Segment EBIT / EBIT margin (GAAP)																		$116						$107						20.4		%				17.6		%
Amortization of intangibles and restructuring and related costs																		6						7						1.0		%				1.1		%
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)																		$122						$114						21.4		%				18.7		%

AspenTech Adjusted EBITA																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Business Segment EBIT / EBIT margin (GAAP)																		$(2)						$(33)						(2.3)		%				(13.6)		%
Amortization of intangibles and restructuring and related costs																		22						121						27.2		%				50.2		%
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)																		$20						$88						24.9		%				36.6		%

Software and Control Adjusted EBITA																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Business Segment EBIT / EBIT margin (GAAP)																		$114						$74						17.6		%				8.7		%
Amortization of intangibles and restructuring and related costs																		28						128						4.2		%				15.1		%
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)																		$142						$202						21.8		%				23.8		%

Total Business Segment Adjusted EBITA Margin																		Q1 2022						Q1 2023						Q1 2022						Q1 2023
Pretax earnings / margin (GAAP)																		$942						$422						29.8		%				12.5		%
Corporate items and interest expense, net																		(351)						169						(11.1)		%				5.0		%
Total Business Segment EBIT / margin																		591						591						18.7		%				17.5		%
Amortization of intangibles and restructuring and related costs																		84						174						2.7		%				5.2		%
Adjusted Total Business Segment EBITA / margin (Non-GAAP)																		$675						$765						21.4		%				22.7		%