Name: Emerson Electric Co. (NYSE:EMR) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

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.

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Emerson Electric Co., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Net earnings	2,328)	2,224)	1,550)	1,664)	2,733)	2,184)
Foreign currency translation	(194)	(231)	441)	(188)	(794)	(344)
Pension and postretirement	(508)	242)	500)	(210)	(206)	(54)
Cash flow hedges	(5)	(7)	37)	18)	(43)	1)
Other comprehensive income (loss)	(707)	4)	978)	(380)	(1,043)	(397)
Comprehensive income	1,621)	2,228)	2,528)	1,284)	1,690)	1,787)
Noncontrolling interests in comprehensive income of subsidiaries	(22)	(21)	(30)	(31)	(22)	(34)
Comprehensive income common stockholders	1,599)	2,207)	2,498)	1,253)	1,668)	1,753)

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).

An analysis of the comprehensive income performance from 2014 to 2019 reveals a period of significant volatility, characterized by fluctuating net earnings and substantial swings in other comprehensive income. While net earnings show a recovery trend in the final two years of the period, the overall comprehensive income is heavily influenced by non-operational factors, specifically currency translations and pension adjustments.

Net Earnings Performance: Net earnings exhibited a non-linear trajectory, peaking at 2,733 million US$ in 2015 before experiencing a two-year decline to a period low of 1,550 million US$ in 2017. A recovery phase followed, with earnings increasing steadily to 2,224 million US$ in 2018 and reaching 2,328 million US$ by 2019.
Other Comprehensive Income (OCI) Volatility: OCI demonstrated extreme instability, shifting from significant losses to substantial gains. A notable deficit occurred in 2015 with a loss of 1,043 million US$, which contrasted sharply with a gain of 978 million US$ in 2017. By 2019, OCI returned to a negative position of 707 million US$, indicating that non-operational items frequently offset operational gains.
Foreign Currency and Pension Impacts: Foreign currency translation and pension adjustments served as the primary drivers of OCI volatility. Foreign currency translation remained negative for most of the period, except for a positive contribution of 441 million US$ in 2017. Similarly, pension and postretirement adjustments fluctuated wildly, moving from a 500 million US$ gain in 2017 to a 508 million US$ loss in 2019.
Comprehensive Income Trends: Comprehensive income did not always correlate with net earnings due to the influence of OCI. The peak comprehensive income of 2,528 million US$ occurred in 2017, a year when net earnings were actually at their lowest point in the observed period. This divergence underscores the impact of the positive currency and pension adjustments recorded that year. By 2019, comprehensive income declined to 1,621 million US$, despite the increase in net earnings, due to the negative impact of pension and currency losses.
Common Stockholder Equity Impact: Comprehensive income attributable to common stockholders closely mirrored the overall comprehensive income trends, with a peak of 2,498 million US$ in 2017 and a decline to 1,599 million US$ in 2019. The impact of noncontrolling interests remained relatively stable and minimal, ranging between 21 million US$ and 34 million US$ annually.

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