In the fourth quarter of 2012, the Company recognized an impairment charge of $450 million in the embedded computing and power business, which reported full year 2012 sales of $1.4 billion, due to protracted weak demand, structural industry developments and increased competition. These challenges, including weakness in telecommunication and mobile device markets, continued into 2013 and results have been below expectations. Management considered strategic alternatives for this business, initiated a sales process and received nonbinding indications of interest in the third quarter. On July 31, 2013 the Company entered into an agreement to sell a 51 percent controlling interest in this business. Emerson will receive approximately $300 million in cash from the acquiror and through borrowing by the new entity, and will retain a noncontrolling interest. The transaction is expected to close in three to six months, subject to regulatory approvals. Sales and earnings of the embedded computing and power business will continue to be reported in Emerson's consolidated results until the transaction closes. On completion, the Company will account for its remaining noncontrolling interest on the equity basis. Proceeds from the transaction and repatriation of cash from this business will be used to repurchase an additional $600 million of Emerson shares, which is incremental to the current annual run rate of $800 million to $900 million.

In the third quarter, the Company recorded a noncash goodwill impairment charge in the embedded computing and power business of $503 million ($475 million after-tax, $0.65 per share), and a net income tax charge of $33 million ($0.05 per share) primarily related to the anticipated repatriation of non-U.S. earnings from this business, partially offset by other tax versus book differences. As of June 30, fair value was determined based on anticipated cash proceeds and the estimated value of the retained interest using a level three market approach (option pricing model), and will be finalized when the transaction closes. Embedded computing and power had working capital of $162 million, property, plant and equipment of $88 million and goodwill and other assets, net of $82 million.