Eme r s on 2013 Ann u al R e por t 39 2 w eighted a verage c ommon s hares Basic earnings per common share consider only the weightedaverage of common shares outstanding while diluted earnings per common share also consider the dilutive effects of stock options and incentive shares Options to purchase approximately 06 million 77 million and 46 million shares of common stock were excluded from the computation of diluted earnings per share in 2013 2012 and 2011 respectively as the effect would have been antidilutive Earnings allocated to participating securities were inconsequential for all years presented Reconciliations of weightedaverage shares for basic and diluted earnings per common share follow shares in millions 2011 2012 2013 Basic shares outstanding 7485 7306 7177 Dilutive shares 50 40 52 Diluted shares outstanding 7535 7346 7229 3 a cquisitions and d ivestitures 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 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 and earnings before taxes of 44 which are 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 Transaction fair value was determined based on anticipated cash proceeds and the estimated value of the retained interest using a Level 3 market approach option pricing model Assets and liabilities for embedded computing and power are classifed as heldforsale in the consolidated balance sheet at September 30 2013 as follows other current assets 408 accounts receivable inventories other other assets 190 property plant and equipment goodwill other noncurrent assets accrued expenses 272 accounts payable and other current liabilities and other liabilities 20 The Company recorded goodwill impairment charges in both 2013 and 2012 and income tax charges in 2013 related to this business See Note 6 for information regarding impairment charges In October 2013 fscal 2014 the Company acquired Virgo Valves and Controls LTD a leading manufacturer of ball valves and automation systems which will complement Process Managements existing fnal control business and allow opportunities for additional growth in global oil and gas mining and power end markets Also in October 2013 the Company acquired Enardo LLC a manufacturer of tank and terminal safety equipment used in the oil and gas chemical and other industries which will complement Process Managements existing regulator technologies and extend the Companys expertise in both upstream and downstream markets Total cash paid for both businesses was approximately 506 net o f cash acquired The Company also assumed 76 of debt Combined annualized sales for Virgo and Enardo were over 300 The Company acquired onehundred percent of Avtron Loadbank and a marine controls business during the second quarter of 2012 Avtron is a designer and manufacturer of high quality load banks and testing systems for power equipment industries and is included in the Network Power segment The marine controls business supplies controls and software solutions for optimal operation of refrigerated sea containers and marine boilers and is included in the Climate Technologies segment In addition the Company acquired two smaller businesses during 2012 in the Process Management and Network Power segments These small acquisitions were complementary to the existing business portfolios and none was individually signifcant Total cash paid for all businesses was approximately 187 net of cash acquired of 5 Annualized sales for businesses acquired in 2012 were approximately 115 Goodwill of 94 36 of which is expected to be tax deductible and identifable intangible assets of 82 primarily customer relationships and patents and technology with a weightedaverage life of approximately 9 years were recognized from these transactions In the fourth quarter of 2012 the Company sold its Knaack business unit for 114 resulting in an aftertax loss of 5 3 income tax beneft Knaack had 2012 sales of 95 and net earnings of 7 Knaack a leading provider of premium secure storage solutions for job sites and work vehicles was previously reported in the Commercial Residential Solutions business segment