Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Emerson Electric Co., consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
The financial data reveals several notable trends in earnings and comprehensive income over the six-year period analyzed. Net earnings exhibit fluctuations, with a peak in 2015 at 2,733 million US dollars followed by a decline that reaches a low point of 1,550 million US dollars in 2017. Subsequently, net earnings recover somewhat, increasing to 2,224 million US dollars in 2018 and further to 2,328 million in 2019.
Foreign currency translation effects demonstrate considerable volatility, with substantial negative impacts in 2014 (-344 million US dollars) and 2015 (-794 million), a reduction in negative impact in 2016 (-188 million), and a positive swing to 441 million in 2017. The subsequent years revert to negative values, -231 million in 2018 and -194 million in 2019, indicating ongoing foreign exchange challenges.
Pension and postretirement adjustments show irregular movement, initially negative in 2014 through 2016, ranging from -54 to -210 million US dollars. However, this trend reverses sharply in 2017 with a positive impact of 500 million, followed by a positive result of 242 million in 2018 and a return to a significant negative impact of -508 million in 2019. This irregularity suggests varying pension-related expenses or actuarial adjustments that affect the comprehensive income.
Cash flow hedges contribute minor changes, mostly fluctuating close to zero. These range from a slight positive value of 1 million in 2014 to minor negatives of -7 and -5 million in 2018 and 2019 respectively, indicating limited net impact from hedging activities on overall income.
Other comprehensive income (loss) mirrors the volatility seen in foreign currency and pension components. Large negative totals are observed in 2014 (-397 million) and especially in 2015 (-1,043 million). A notable positive reversal occurs in 2017 with 978 million, followed by near neutral results in 2018 and a substantial negative amount of -707 million in 2019, underscoring considerable fluctuations in non-operational income elements.
Comprehensive income figures, aggregating net earnings and other comprehensive income items, reflect a decline from 1,787 million in 2014 to 1,284 million in 2016. A significant recovery occurs in 2017 with comprehensive income surging to 2,528 million, followed by a decline to 1,621 million in 2019. This pattern highlights the influence of the irregular other comprehensive income components along with net earnings changes.
Noncontrolling interests in comprehensive income remain relatively stable and minor, fluctuating slightly between -34 million and -21 million across the years, suggesting limited impact on the overall equity holders' results.
Comprehensive income attributable to common stockholders follows a similar trajectory to overall comprehensive income, with a peak in 2017 at 2,498 million and lower values at the start and end of the period analyzed, indicating that the majority of the comprehensive income is attributable to common shareholders with consistent minor deductions for noncontrolling interests.
Overall, the data reflects earnings volatility, pronounced fluctuations in comprehensive income components especially related to foreign currency translation and pension/postretirement costs, and a notable peak in 2017 comprehensive income driven largely by favorable non-operating factors. These patterns suggest that while core earnings experienced variability, external and actuarial factors significantly influenced the comprehensive income results during the period examined.