20 Eme r s on 2013 Ann u al R e por t n et Sale S Net sales for 2013 were 247 billion an increase of 257 million or 1 percent compared with 2012 Consolidated results refect a 2 percent 388 million increase in underlying sales driven by volume gains Underlying sales exclude foreign currency translation acquisitions and divestitures Foreign currency translation 55 million and divestitures net of acquisitions 76 million had a combined negative 1 percent impact Underlying sales were fat in the United States and grew 3 percent internationally Segment results were mixed as sales in Process Management increased 711 million and Climate Technologies increased 110 million while sales in Industrial Automation and Network Power decreased 303 million and 244 million respectively Commercial Residential Solutions decreased 12 million due to the prior year Knaack divestiture largely offset by growth in the remaining businesses Net sales for 2012 were 244 billion an increase of 190 million or 1 percent from 2011 on a 3 percent 616 million increase in underlying sales a 2 percent 411 million unfavorable impact from foreign currency translation and a negligible 15 million negative impact from divestitures net of acquisitions Underlying sales refect volume gains of 2 percent and an estimated 1 percent increase from price Underlying sales increased 2 percent in the United States and 3 percent internationally Segment results were mixed as sales in Process Management and Commercial Residential Solutions increased 899 million and 40 million respectively Sales in Network Power Climate Technologies and Industrial Automation decreased 412 million 229 million and 106 million respectively Inte R nat IO nal Sale S Emerson is a global business with international sales representing 59 percent of total sales including US exports The Company expects faster economic growth in emerging markets in Asia Latin America Eastern Europe and Middle EastAfrica International destination sales increased 2 percent in 2013 to 147 billion refecting increases in Process Management and Climate Technologies offset by decreases in Network Power Industrial Automation and Commercial Residential Solutions US exports of 16 billion were up 2 percent compared with 2012 Underlying international destination sales grew 3 percent on volume as foreign currency translation had a 1 percent unfavorable impact on the comparison with 2012 Underlying sales increased 2 percent in Asia 11 percent in Latin America 13 percent in Middle EastAfrica and 4 percent in Canada and decreased 3 percent in Europe Sales by international subsidiaries including shipments to the United States totaled 131 billion in 2013 up 2 percent compared with 2012 International destination sales increased 05 percent to 144 billion in 2012 refecting an increase in Process Management offset by decreases in Network Power Industrial Automation and Climate Technologies US exports of 16 billion were up 4 percent compared with 2011 Underlying international destination sales increased 3 percent compared with 2011 including increases of 3 percent in Asia China down 4 percent 13 percent in Latin America 7 percent in Middle EastAfrica and 9 percent in Canada Europe was down 1 percent Sales by international subsidiaries including shipments to the United States totaled 128 billion in 2012 fat compared with 2011 aC qu ISI t IO n S and d I ve S t I tu R e S On July 31 2013 the Company entered into an agreement to sell a 51 percent controlling interest in the embedded computing and power business for which it will receive approximately 300 million in cash from the acquirer and through borrowing by a new entity which will include this business The transaction is expected to close before the end of calendar 2013 pending regulatory approvals Embedded computing and power had 2013 revenue of 12 billion which is included in the Network Power segment Sales and earnings for embedded computing and power will continue to be reported in the Companys consolidated results until completion of the transaction As the Company will retain a noncontrolling interest in this business it will not be classifed as discontinued operations and will be accounted for on the equity basis upon completion Emerson will repurchase 600 million of shares in anticipation of proceeds from the transaction and repatriation of cash from this business twothirds of which was completed through October On completion of S ale S BY G e OGR a PHIC de S t I nat IO n n United States and Canada n Europe n Asia n Latin America n Middle EastAfrica 6 44 20 24 6 37 e M e R GI n G M a RK e t S