($113 million) also supported Measurement & Analytical Instrumentation sales.
Valves, Actuators & Regulators increased $1.1 billion, or 41 percent, led by the valves & controls acquisition ($771 million) and broad-based demand across end markets, including energy, power and life sciences.
Industrial Solutions sales increased $267 million, or 16 percent, driven by favorable global trends in general industrial end markets.
Underlying sales increased 14 percent in the U. S. , 1 percent in Europe and 11 percent in Asia (China up 21 percent).
Latin America increased 4 percent, Canada increased 14 percent and Middle East/Africa was up 9 percent.
Earnings of $1.9 billion increased $364 million from the prior year on higher volume and leverage, cost reduction savings and lower restructuring expense of $22 million, partially offset by higher investment spending.
Margin increased 0.3 percentage points to 16.5 percent.
These results reflect a dilutive impact on comparisons from the valves & controls acquisition of 1.2 percentage points, which included an impact from higher intangibles amortization of 0.4 percentage points, or $45 million.
In 2019, growth in Automation Solutions will continue to be driven by MRO activity, as well as brownfield capital investments in existing assets to expand capacity or to improve the efficiency, safety and uptime of those facilities.
Steady progress in greenfield capital projects across upstream, midstream infrastructure, natural gas, chemical and hybrid markets, including life sciences and food and beverage, is also expected with orders weighted toward the second half of 2019.2017 vs.  2016 – Automation Solutions reported sales of $9.4 billion in 2017, an increase of $441 million or 5 percent.
Underlying sales decreased 1 percent ($128 million) on lower volume and slightly lower price.
The valves & controls acquisition added 7 percent ($603 million), while foreign currency translation subtracted 1 percent ($34 million).
Sales for Measurement & Analytical Instrumentation decreased 2 percent and Process Control Systems & Solutions decreased 4 percent due to weakness in energy-related markets, but began to improve in the second half of the year as oil prices stabilized.
Valves, Actuators & Regulators increased $531 million, or 25 percent, due to the valves & controls acquisition.
Industrial Solutions sales increased $59 million, or 4 percent, on improving economic conditions and industrial end markets, especially automotive.
Chemical, power and life sciences were favorable.
Underlying sales increased 1 percent in the U. S. , were down 2 percent in Europe and increased 1 percent in Asia (China up 9 percent).
Latin America decreased 20 percent, Canada decreased 6 percent and Middle East/Africa was down 6 percent.
Earnings of $1.5 billion increased $66 million from the prior year.
Savings from cost reduction actions and favorable foreign currency transactions comparisons of $64 million (unfavorable in the prior year) were partially offset by lower volume, and $25 million of restructuring expense and $29 million of intangibles amortization related to the valves & controls acquisition.
Materials cost containment offset lower price.
Margin was flat, primarily reflecting the benefit from cost reduction actions offset by dilution from the valves & controls acquisition of 1.5 percentage points.
## Table 0 ##
2018 vs.  2017 – Commercial & Residential Solutions sales were $6.0 billion in 2018, an increase of $125 million, or 2 percent.
Underlying sales increased 4 percent ($226 million) on higher volume and slightly higher price.
Foreign currency translation added 1 percent ($58 million) while the divestiture of the residential storage business, net of acquisitions, subtracted 3 percent ($159 million).
Climate Technologies sales were $4.5 billion in 2018, an increase of $242 million, or 6 percent.
Global HVAC sales were up moderately, reflecting robust growth in China, while sales were up moderately in Europe and modestly in the U. S.  Cold chain sales were strong, led by robust growth in China and solid growth in Europe, while sales in the U. S.  were up slightly.
Sensors had strong growth, while temperature controls was flat.
Tools & Home Products sales were $1.5 billion in 2018, down $117 million or 7 percent compared to the prior year, reflecting the impact of the residential storage divestiture ($298 million).
Sales for professional tools were strong on favorable demand in oil and gas and construction-related markets, and the tools and test acquisition added $106 million.
Wet/dry vacuums had solid growth and food waste disposers were up slightly.
Overall, underlying sales increased 3 percent in the U. S. , 4 percent in Europe and 9 percent in Asia (China up 11 percent).
Sales increased 4 percent in both Latin America and Canada, while sales decreased 8 percent in Middle East/Africa.
Earnings were $1.4 billion, a decrease of $6 million and margin was down 0.6 percentage points.
Higher materials costs, the impact of acquisitions, unfavorable mix and increased restructuring expense of $11 million were partially offset by leverage on higher volume, favorable price and savings from cost reduction actions.
In addition, the residential storage divestiture reduced earnings by $16 million, but benefited margin comparisons 1.0 percentage points, while higher warranty costs of $10 million associated with a specific product issue in Climate Technologies partially offset this benefit.
Commercial & Residential Solutions growth in 2019 will be supported by continued strong demand in residential and commercial air conditioning markets in the U. S. , as well as cold chain and professional tools demand in the U. S. , Asia and Europe.
## Table 1 ##
Total debt, which includes long-term debt, current maturities of long-term debt, commercial paper and other short-term borrowings, was $4.8 billion, $4.7 billion and $6.6 billion for 2018, 2017 and 2016, respectively.
During the year, the Company repaid $250 million of 5.375% notes that matured in October 2017.
In 2017 and 2016 respectively, the Company repaid $250 million of 5.125% notes that matured in December 2016 and $250 million of 4.75% notes which matured in October 2015.
The net debt-to-net capital ratio (less cash and short-term investments) increased in 2018 due to a decrease in cash which was used for acquisitions during the year.
In 2017 the total debt-to-capital ratio and the net debt-to-net capital ratio (less cash and short-term investments) decreased due to lower total debt outstanding and higher common stockholders’ equity from changes in other comprehensive income.
The operating cash flow from continuing operations-to-debt ratio increased in 2018 primarily due to higher cash flow in the current year.
The operating cash flow from continuing operations-to-debt ratio increased in 2017 primarily due to lower total debt outstanding.
The interest coverage ratio is computed as earnings from continuing operations before income taxes plus interest expense, divided by interest expense.
The increase in interest coverage in 2018 reflects higher earnings in the current year.
The increase in interest coverage in 2017 reflects lower interest expense.
In May 2018, the Company entered into a $3.5 billion fiveyear revolving backup credit facility with various banks, which replaced the April 2014 $3.5 billion facility.
The credit facility is maintained to support general corporate purposes, including commercial paper borrowings.
The Company has not incurred any borrowings under this or previous facilities.
The credit facility contains no financial covenants and is not subject to termination based on a change of credit rating or material adverse changes.
The facility is unsecured and may be accessed under various interest rate and currency denomination alternatives at the Company’s option.
Fees to maintain the facility are immaterial.
The Company also maintains a universal shelf registration statement on file with the SEC under which it can issue debt securities, preferred stock, common stock, warrants, share purchase contracts or share purchase units without a predetermined limit.
Securities can be sold in one or more separate offerings with the size, price and terms to be determined at the time of sale.
Emerson’s financial structure provides the flexibility necessary to achieve its strategic objectives.
The Company has been successful in efficiently deploying cash where needed worldwide to fund operations, complete acquisitions and sustain long-term growth.
At September 30, 2018, approximately $1.1 billion of the Company’s cash was held outside the U. S.  (primarily in Europe and Asia).
The Company routinely repatriates a portion of its non-U.
S.  cash from earnings each year, or otherwise when it can be accomplished tax efficiently, and provides for foreign withholding taxes and any applicable U. S.  income taxes as appropriate.
The Company has been able to readily meet all its funding requirements and currently believes that sufficient funds will be available to meet the Company’s needs in the foreseeable future through operating cash flow, existing resources, short- and long-term debt capacity or backup credit lines.
CONTRACTUAL OBLIGATIONS At September 30, 2018, the Company’s contractual obligations, including estimated payments, are as follows:
## Table 2 ##
Purchase obligations consist primarily of inventory purchases made in the normal course of business to meet operational requirements.
The table above does not include $2.1 billion of other noncurrent liabilities recorded in the balance sheet and summarized in Note 19, which consist primarily of pension and postretirement plan liabilities, deferred income taxes and unrecognized tax benefits, because it is not certain when these amounts will become due.
See Notes 11 and 12 for estimated future benefit payments and Note 14 for additional information on deferred income taxes.
FINANCIAL INSTRUMENTS The Company is exposed to market risk related to changes in interest rates, foreign currency exchange rates and commodity prices, and selectively uses derivative financial instruments, including forwards, swaps and purchased options to manage these risks.
The Company does not hold derivatives for trading or speculative purposes.
The value of derivatives and other financial instruments is subject to change as a result of market movements in rates and prices.
Sensitivity analysis is one technique used to forecast the impact of these movements.
Based on a hypothetical 10 percent increase in interest rates, a 10 percent decrease in commodity prices or a 10 percent weakening in the U. S.  dollar across all currencies, the potential losses in future earnings, fair value or cash flows are not
The results of operations of the acquired businesses discussed above have been included in the Company’s consolidated results of operations since the respective dates of acquisition.
PRO FORMA FINANCIAL INFORMATION (UNAUDITED) The following pro forma consolidated condensed financial results of operations are presented as if the 2018 acquisitions occurred on October 1, 2016 and the acquisition of the valves & controls business occurred on October 1, 2015.
The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisitions occurred as of that time.
## Table 3 ##
The 2018 pro forma results exclude acquisition costs and first year acquisition accounting charges related to inventory, backlog and deferred revenue of $102.
Of these charges, $73 related to businesses acquired in 2018 and $29 related to the valves & controls acquisition.
The 2017 pro forma results include the charges related to the 2018 acquisitions.
The 2017 pro forma results exclude first year acquisition accounting charges related to the valves & controls business of $93 and acquisition costs of $52.
(4) Discontinued Operations In 2017, the Company completed the previously announced strategic actions to streamline its portfolio and drive growth in its core businesses.
On November 30, 2016, the Company completed the sale of its network power systems business for $4.0 billion in cash and retained a subordinated interest in distributions, contingent upon the equity holders first receiving a threshold return on their initial investment.
This business comprised the former Network Power segment.
Additionally, on January 31, 2017, the Company completed the sale of its power generation, motors and drives business for approximately $1.2 billion, subject to postclosing adjustments.
This business was previously reported in the former Industrial Automation segment.
The results of operations for these businesses were reported within discontinued operations and the assets and liabilities were reflected as held-for-sale for periods presented until disposal.
The financial results of the network power systems business and power generation, motors and drives business reported as discontinued operations for the years ending September 30, 2017 and 2016, were as follows:
## Table 4 ##
In 2017, the net loss from discontinued operations of $125, $0.19 per share, included an after-tax gain on the divestiture of the network power systems business of $125 ($519 pretax), a $173 after-tax loss ($36 pretax loss) on the divestiture of the power generation, motors and drives business, income tax expense of $109 for repatriation of sales proceeds, and lower expense of $32 primarily due to ceasing depreciation and amortization for the discontinued businesses held-for-sale.
Discontinued operations income of $45, $0.07 per share, in 2016 included earnings from operations of $344 and costs to execute the portfolio repositioning of $299.
These costs are comprised of income tax expense of $143 for repatriation of cash from these businesses, reorganization of their legal structures prior to sale, and basis differences for book and tax, as well as costs for legal, consulting, investment banking and other expenses of $77.
In addition, net earnings for 2016 included a loss of $103 to write down the power generation, motors and drives business to the sales price less costs to sell, and lower expense of $24 due to ceasing depreciation and amortization for the discontinued businesses held-for-sale.
(15) Stock-Based Compensation The Company’s stock-based compensation plans include stock options, performance shares, restricted stock and restricted stock units.
Although the Company has discretion, shares distributed under these plans are issued from treasury stock.
STOCK OPTIONS The Company’s stock option plans permit key officers and employees to purchase common stock at specified prices, which are equal to 100 percent of the closing market price of the Company’s stock on the date of grant.
Options generally vest one-third in each of the three years subsequent to grant and expire 10 years from the date of grant.
Compensation expense is recognized ratably over the vesting period based on the number of options expected to vest.
As of September 30, 2018, 11.6 million options were available for grant under the plans.
Changes in shares subject to options during the year ended September 30, 2018 follow (shares in thousands):
## Table 5 ##
The weighted-average grant date fair value per option was $12.13, $8.36 and $9.02 in 2018, 2017 and 2016, respectively.
Cash received for option exercises was $143 in 2018, $148 in 2017 and $31 in 2016.
The total intrinsic value of options exercised in 2018, 2017 and 2016 was $53, $36 and $9, while the tax benefit from tax deductions related to option exercises was $7, $2 and $2, respectively.
The grant date fair value of options is estimated using the Black-Scholes option-pricing model.
The weighted average assumptions used in valuations for 2018, 2017 and 2016 are, respectively: risk-free interest rate, based on U. S.  Treasury yields, 2.4 percent, 1.7 percent and 1.9 percent; dividend yield, 2.9 percent, 3.6 percent and 3.8 percent; and expected volatility, based on historical volatility, 23 percent, 24 percent and 27 percent.
The expected life of each option awarded is seven years based on historical experience and expected future exercise patterns.
PERFORMANCE SHARES, RESTRICTED STOCK AND RESTRICTED STOCK UNITS The Company’s incentive shares plans include performance shares awards which distribute the value of common stock to key management employees subject to certain operating performance conditions and other restrictions.
The form of distribution is primarily shares of common stock, with a portion in cash.
Compensation expense for performance shares is recognized over the service period based on the number of shares ultimately expected to be earned.
Performance shares awards are accounted for as liabilities in accordance with ASC 718, Compensation - Stock Compensation, with compensation expense adjusted at the end of each reporting period to reflect the change in fair value of the awards.
As of September 30, 2016, 4,944,575 performance shares awarded primarily in 2013 were outstanding, contingent on the Company achieving its performance objectives through 2016 and the provision of additional service by employees.
The objectives for these shares were met at the 86 percent level at the end of 2016, or 4,252,335 shares.
Of these, 2,549,083 shares were distributed in early 2017 as follows: 1,393,715 issued as shares, 944,002 withheld for income taxes, and the value of 211,366 paid in cash.
An additional 1,691,986 shares were distributed at the end of 2017 to employees who provided one additional year of service as follows: 1,070,264 issued as shares, 616,734 withheld for income taxes, and the value of 4,988 paid in cash.
There were 11,266 shares canceled and not distributed
THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure There were no changes in or disagreements with accountants on accounting and financial disclosure during the last two years.
Item 9A.
Controls and Procedures As of the end of the period covered by this report, an evaluation was carried out by Goldman Sachs’ management, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act).
Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures were effective as of the end of the period covered by this report.
In addition, no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) occurred during the fourth quarter of our year ended December 31, 2018 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting and the Report of Independent Registered Public Accounting Firm are set forth in Part II, Item 8 of this Form 10-K.
Item 9B.
Other Information Not applicable.
PART III Item 10.
Directors, Executive Officers and Corporate Governance Information relating to our executive officers is included on page 20 of this Form 10-K.  Information relating to our directors, including our audit committee and audit committee financial experts and the procedures by which shareholders can recommend director nominees, and our executive officers will be in our definitive Proxy Statement for our 2019 Annual Meeting of Shareholders, which will be filed within 120 days of the end of 2018 (2019 Proxy Statement) and is incorporated in this Form 10-K by reference.
Information relating to our Code of Business Conduct and Ethics, which applies to our senior financial officers, is included in “Business — Available Information” in Part I, Item 1 of this Form 10-K.
Item 11.
Executive Compensation Information relating to our executive officer and director compensation and the compensation committee of the Board will be in the 2019 Proxy Statement and is incorporated in this Form 10-K by reference.
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information relating to security ownership of certain beneficial owners of our common stock and information relating to the security ownership of our management will be in the 2019 Proxy Statement and is incorporated in this Form 10-K by reference.
The table below presents information as of December 31, 2018 regarding securities to be issued pursuant to outstanding restricted stock units (RSUs) and securities remaining available for issuance under our equity compensation plans that were in effect during 2018.
## Table 6 ##
In the table above: ‰ Securities to be Issued Upon Exercise of Outstanding Options and Rights includes 17,176,475 shares that may be issued pursuant to outstanding RSUs.
These awards are subject to vesting and other conditions to the extent set forth in the respective award agreements, and the underlying shares will be delivered net of any required tax withholding.
As of December 31, 2018, there were no outstanding options.
‰ Shares underlying RSUs are deliverable without the payment of any consideration, and therefore these awards have not been taken into account in calculating the weighted average exercise price.

<table><tr><td>(dollars in millions)</td><td>2016</td><td>2017</td><td>2018</td><td>17 vs. 16</td><td>18 vs. 17</td></tr><tr><td>Sales:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Climate Technologies</td><td>$3,944</td><td>4,212</td><td>4,454</td><td>7%</td><td>6%</td></tr><tr><td>Tools & Home Products</td><td>1,611</td><td>1,645</td><td>1,528</td><td>2%</td><td>-7%</td></tr><tr><td>Total</td><td>$5,555</td><td>5,857</td><td>5,982</td><td>5%</td><td>2%</td></tr><tr><td>Earnings:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Climate Technologies</td><td>$902</td><td>975</td><td>972</td><td>8%</td><td>—%</td></tr><tr><td>Tools & Home Products</td><td>384</td><td>383</td><td>380</td><td>—%</td><td>-1%</td></tr><tr><td>Total</td><td>$1,286</td><td>1,358</td><td>1,352</td><td>6%</td><td>—%</td></tr><tr><td>Margin</td><td>23.2%</td><td>23.2%</td><td>22.6%</td><td></td><td></td></tr></table>
<table><tr><td>(dollars in millions)</td><td>2016</td><td>2017</td><td>2018</td></tr><tr><td>Total Assets</td><td>$21,732</td><td>19,589</td><td>20,390</td></tr><tr><td>Long-term Debt</td><td>$4,051</td><td>3,794</td><td>3,137</td></tr><tr><td>Common Stockholders' Equity</td><td>$7,568</td><td>8,718</td><td>8,947</td></tr><tr><td>Total Debt-to-Total Capital Ratio</td><td>46.7%</td><td>34.8%</td><td>34.7%</td></tr><tr><td>Net Debt-to-Net Capital Ratio</td><td>31.3%</td><td>15.4%</td><td>29.1%</td></tr><tr><td>Operating Cash Flow-to-Debt Ratio</td><td>37.7%</td><td>57.8%</td><td>60.7%</td></tr><tr><td>Interest Coverage Ratio</td><td>11.8X</td><td>12.6X</td><td>14.2X</td></tr></table>
<table><tr><td></td><td colspan="5">Amounts Due By Period</td></tr><tr><td>(dollars in millions)</td><td>Total</td><td>Less Than 1 Year</td><td>1 - 3Years</td><td>3 - 5Years</td><td>More Than5 Years</td></tr><tr><td>Long-term Debt (including Interest)</td><td>$5,177</td><td>847</td><td>1,068</td><td>1,170</td><td>2,092</td></tr><tr><td>Operating Leases</td><td>661</td><td>204</td><td>243</td><td>107</td><td>107</td></tr><tr><td>Purchase Obligations</td><td>924</td><td>768</td><td>132</td><td>16</td><td>8</td></tr><tr><td>Total</td><td>$6,762</td><td>1,819</td><td>1,443</td><td>1,293</td><td>2,207</td></tr></table>
<table><tr><td></td><td>2017</td><td>2018</td></tr><tr><td>Net sales</td><td>$17,148</td><td>18,186</td></tr><tr><td>Net earnings from continuing operations common stockholders</td><td>$1,638</td><td>2,269</td></tr><tr><td>Diluted earnings per share from continuing operations</td><td>$2.53</td><td>3.56</td></tr></table>
<table><tr><td></td><td colspan="2">Network Power Systems</td><td colspan="2">Power Generation, Motors and Drives</td><td colspan="2">Total</td></tr><tr><td></td><td>2016</td><td>2017</td><td>2016</td><td>2017</td><td>2016</td><td>2017</td></tr><tr><td>Net sales</td><td>$4,378</td><td>630</td><td>1,368</td><td>407</td><td>5,746</td><td>1,037</td></tr><tr><td>Cost of sales</td><td>2,708</td><td>394</td><td>1,033</td><td>307</td><td>3,741</td><td>701</td></tr><tr><td>SG&A</td><td>1,101</td><td>180</td><td>269</td><td>83</td><td>1,370</td><td>263</td></tr><tr><td>Other deductions, net</td><td>172</td><td>-515</td><td>149</td><td>42</td><td>321</td><td>-473</td></tr><tr><td>Earnings (Loss) before income taxes</td><td>397</td><td>571</td><td>-83</td><td>-25</td><td>314</td><td>546</td></tr><tr><td>Income taxes</td><td>218</td><td>577</td><td>51</td><td>94</td><td>269</td><td>671</td></tr><tr><td>Earnings (Loss), net of tax</td><td>$179</td><td>-6</td><td>-134</td><td>-119</td><td>45</td><td>-125</td></tr></table>
<table><tr><td></td><td>Weighted- Average Exercise Price Per Share</td><td>Shares</td><td>TotalIntrinsic Value of Shares</td><td>Average Remaining Life (Years)</td></tr><tr><td>Beginning of year</td><td>$55.49</td><td>10,759</td><td></td><td></td></tr><tr><td>Options granted</td><td>$66.49</td><td>21</td><td></td><td></td></tr><tr><td>Options exercised</td><td>$53.20</td><td>-2,869</td><td></td><td></td></tr><tr><td>Options canceled</td><td>$54.95</td><td>-110</td><td></td><td></td></tr><tr><td>End of year</td><td>$56.37</td><td>7,801</td><td>$160</td><td>5.1</td></tr><tr><td>Exercisable at end of year</td><td>$57.30</td><td>6,680</td><td>$131</td><td>4.8</td></tr></table>
<table><tr><td>Plan Category</td><td>Securities to be Issued Upon Exercise of Outstanding Options and Rights (a)</td><td>Weighted Average Exercise Price of Outstanding Options (b)</td><td>Securities Available For Future Issuance Under Equity Compensation Plans (c)</td></tr><tr><td>Equity compensation plans approved by security holders</td><td>17,176,475</td><td>N/A</td><td>68,211,649</td></tr><tr><td>Equity compensation plans not approved by securityholders</td><td>–</td><td>–</td><td>–</td></tr><tr><td>Total</td><td>17,176,475</td><td></td><td>68,211,649</td></tr></table>

Question: In which year is Earnings (Loss) before income taxes smaller than Income taxes ?
Answer: 2017