v3.26.1
Business Segment Information
 6 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
Sales and operating results of our reportable segments were (in millions):
Three Months Ended March 31, 2026
Intelligent DevicesSoftware & ControlLifecycle ServicesTotal
Sales$1,008 $684 $547 $2,239 
Less:
Segment cost of sales(533)(196)(361)
Segment selling, general and administrative expenses(198)(154)(89)
Segment engineering and development expenses(66)(98)(16)
Other segment items (1)
— 3 (1)
Segment operating earnings$211 $239 $80 $530 
Amortization of acquisition-related intangible assets (2)
(29)
Corporate and other(26)
Non-operating pension and postretirement benefit credit3 
Net legacy asbestos and environmental charges(1)
Change in fair value of investments— 
Cost associated with dissolution of Sensia(4)
Interest expense, net(33)
Income before income taxes$440 
(1) Other segment items are primarily comprised of foreign currency adjustments for each segment.
(2) Amortization of acquisition-related intangibles excludes amortization of internally developed and capitalized intangible assets.
Three Months Ended March 31, 2025
Intelligent DevicesSoftware & ControlLifecycle ServicesTotal
Sales$896 $568 $537 $2,001 
Less:
Segment cost of sales(482)(160)(352)
Segment selling, general and administrative expenses(188)(147)(96)
Segment engineering and development expenses(65)(88)(11)
Other segment items (1)
(2)(2)— 
Segment operating earnings$159 $171 $78 408 
Amortization of acquisition-related intangible assets (2)
(36)
Corporate and other(27)
Non-operating pension and postretirement benefit credit— 
Net legacy asbestos and environmental charges (2)
(6)
Change in fair value of investments(3)
Cost associated with dissolution of Sensia— 
Interest expense, net(37)
Income before income taxes$299 
(1) Other segment items are primarily comprised of foreign currency adjustments for each segment.
(2) Amortization of acquisition-related intangibles excludes amortization of internally developed and capitalized intangible assets.
(3) Legacy asbestos and environmental charges were previously included in Corporate and other. Three months ended March 31, 2025 has been recast to conform with current year presentation.
Six Months Ended March 31, 2026
Intelligent DevicesSoftware & ControlLifecycle ServicesTotal
Sales$1,961 $1,313 $1,070 $4,344 
Less:
Segment cost of sales(1,065)(383)(705)
Segment selling, general and administrative expenses(390)(306)(182)
Segment engineering and development expenses(129)(193)(30)
Other segment items (1)
(1)4 1 
Segment operating earnings$376 $435 $154 965 
Amortization of acquisition-related intangible assets (2)
(61)
Corporate and other(56)
Non-operating pension and postretirement benefit credit6 
Net legacy asbestos and environmental charges(2)
Change in fair value of investments— 
Cost associated with dissolution of Sensia(8)
Interest expense, net(62)
Income before income taxes$782 
(1) Other segment items are primarily comprised of foreign currency adjustments for each segment.
(2) Amortization of acquisition-related intangibles excludes amortization of internally developed and capitalized intangible assets.
Six Months Ended March 31, 2025
Intelligent DevicesSoftware & ControlLifecycle ServicesTotal
Sales$1,702 $1,097 $1,083 $3,882 
Less:
Segment cost of sales(921)(320)(720)
Segment selling, general and administrative expenses(371)(298)(195)
Segment engineering and development expenses(126)(171)(23)
Other segment items (1)
(5)(4)1 
Segment operating earnings$279 $304 $146 729 
Amortization of acquisition-related intangible assets (2)
(71)
Corporate and other(62)
Non-operating pension and postretirement benefit credit— 
Net legacy asbestos and environmental charges (3)
(9)
Change in fair value of investments(3)
Cost associated with dissolution of Sensia— 
Interest expense, net(72)
Income before income taxes$512 
(1) Other segment items are primarily comprised of foreign currency adjustments for each segment.
(2) Amortization of acquisition-related intangibles excludes amortization of internally developed and capitalized intangible assets.
(3) Legacy asbestos and environmental charges were previously included in Corporate and other. Six months ended March 31, 2025 has been recast to conform with current year presentation.
Among other considerations, we evaluate segment performance and allocate resources based upon segment operating earnings before amortization of acquisition-related intangible assets, corporate and other, non-operating pension and postretirement benefit credit, net legacy asbestos and environmental charges, cost associated with dissolution of Sensia, change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, and interest expense, net. Our chief operating decision maker (CODM), our Chief Executive Officer, uses segment operating earnings as the key performance metric to regularly monitor performance compared to prior periods, annual operating plan, and forecasts and to make decisions. The Company does not report total assets or capital expenditures by segment for internal reporting purposes as our CODM does not assess performance, make strategic decisions, or allocate resources based on assets.
Depending on the product, intersegment sales within a single legal entity are either at cost or cost plus a mark-up, which does not necessarily represent a market price. Sales between legal entities are at an appropriate transfer price. Segment selling, general and administrative expenses represent costs directly managed by the segments and allocated to the segments. We allocate costs related to shared segment operating activities to the segments consistent with the methodology used by management to assess segment performance.
We conduct a significant portion of our business activities outside the United States. We attribute sales to the geographic regions based on the country of destination. Sales in North America include $1,304 million and $2,541 million related to the U.S. for the three and six months ended March 31, 2026, respectively, and $1,190 million and $2,242 million for the three and six months ended March 31, 2025, respectively. Refer to Note 2 for disaggregation of revenue by segment and region.
In most countries, we sell primarily through independent distributors in conjunction with our direct sales force. We sell large systems and service offerings principally through our direct sales force, though opportunities are sometimes identified through distributors. Sales to our two largest distributors, which are attributable to all three segments, were approximately 20 percent of our total sales for the three and six months ended March 31, 2026 and 2025.
The following table summarizes the provision for depreciation and amortization for each of the reportable segments and Corporate (in millions):
Three Months Ended
March 31,		Six Months Ended
March 31,
2026202520262025
Depreciation and amortization
Intelligent Devices$20 $14 $37 $32 
Software & Control19 19 39 33 
Lifecycle Services10 11 19 21 
Corporate1 1 2 2 
Total50 45 97 88 
Amortization of acquisition-related intangible assets (1)
29 36 61 71 
Total$79 $81 $158 $159 
(1) Amortization of acquisition-related intangibles excludes amortization of internally developed and capitalized intangible assets.
Depreciation expense has been allocated to segment operating earnings based on the expected benefit to be realized by each segment.