Another exciting initiative is our $100 million commitment to corporate venture capital, Emerson Ventures, designed to accelerate innovation by providing insight into cutting-edge technologies that have the potential to solve real customer challenges.
The automation KOB three mix for 2021 was up two points to 59%.
And Emerson's September three-month trailing orders were plus 16%.
We grew 5.3% underlying and leverage at 38% operationally, inclusive of a $140 million swing in our price/cost assumptions from November through to the end of the fiscal year.
The earnings quality of this company continues to be excellent with free cash flow conversion of 129%.
In the quarter, we missed sales by $175 million.
And alongside a challenging price/cost environment in our climate business, it resulted in a negative $0.14 impact to earnings per share for the quarter and a $0.19 impact to 2021 EPS.
Having said that, the company grew 7% in the fourth quarter and had 19% operating leverage.
The price/cost assumption in the year will be a positive $100 million for 2022.
I have confidence that we will deliver 30% incrementals on our underlying sales in 2022.
Secondly, we identified four large, profitable, high-growth end markets, each with at least $20 billion of size and projected to grow higher than 4% a year into the future supported by macros.
One of the four markets is industrial software, a $60 billion segment that we identified growing at 9%.
I'm optimistic of the synergy opportunities that exist and believe the new AspenTech, which will be 55% owned by Emerson shareholders, will be a differentiated platform for future industrial software M&A.
This was achieved in the face of an unexpected increase in key raw materials, mainly steel and copper, that resulted in an unfavorable price/cost swing of $140 million during the year versus the expectation and the guidance that we gave you a year ago.
The continued recovery in our end markets drove strong full year underlying growth of more than 5%.
Net sales were up 9% year-over-year, including a one point impact from acquisitions, mainly OSI, which closed at the beginning of the fiscal year.
Adjusted segment EBIT benefited from strong leverage in operations, 38%, as Lal just mentioned, and adjusted EBIT from underlying volume and the benefit of cost reset actions that were begun two years ago.
These cost reductions more than offset price/cost headwinds, which, as I said, were $140 million versus our expectation at the beginning of the year, and the supplies chain challenges that raised costs and reduced availability.
Cash flow was robust, up 18% year-over-year attributable to the strong earnings growth and working capital efficiency.
Free cash flow conversion of net earnings was 129%.
Adjusted earnings per share was $4.10, exceeding our guide by $0.03 at the midpoint and up 19% for the year.
Adjusted EBIT increased 230 basis points due to the strong leverage driven by cost reset benefits.
Commercial & Residential saw exceptional growth, up 6% underlying year-over-year due to broad strength across the residential and commercial markets with mid-teens growth in all world areas.
Adjusted EBIT increased 20 basis points versus prior year.
Operational performance was strong throughout the year, adding $0.59 to adjusted EPS, overcoming a $0.19 headwind from supply chain and $90 million of unfavorable price/cost.
Operations leveraged at more than 35% on volume and cost actions.
Nonoperating items contributed $0.02 in that, overcoming a significant headwind from the stock comp mark-to-market accounting.
Share repurchase totaled $500 million, as we guided, and added about $0.03.
In total, adjusted earnings per share was $4.10, as I said, an increase of 19%.
Regarding the fourth quarter, strong end market demand drove underlying growth of 7% with net sales up 9%.
This growth was achieved despite a $175 million impact from supply chain, logistics and labor constraints that affected both platforms in somewhat different ways.
Adjusted segment EBIT dropped 10 basis points, reflecting a 200 basis point impact from supply chain volume constraints across the company and from the increasingly negative price/cost headwind in commercial/residential.
Free cash flow declined 39% mainly due to higher working capital to support the growth versus the prior year.
Adjusted earnings per share was $1.21, exceeding the guidance midpoint by $0.03 and up 10% and versus the prior year.
Automation Solutions underlying sales were up 3% with strong recovery in the Americas, particularly in the power generation and chemical markets, partially offset by declines in other world areas.
Sales were reduced by about $125 million or four points due to supply chain constraints.
Our backlog was up 16% year-to-date and now sits at $5.4 billion, $100 million less than at the end of the third quarter.
Strong leverage and cost reductions drove a 170 basis point improvement in adjusted EBIT.
Commercial & Residential underlying sales increased 13% and driven by continued strength in North America residential HVAC and home products as well as heat pump demand in Europe.
Sales were reduced by about $50 million or three points due to supply chain constraints, which, together with sharply increasing material cost headwinds, which were expected, perhaps a little worse than we expected in August but are expected, drove a 340 basis points decline in adjusted EBIT.
North American cold-rolled steel pricing increased once again in October, extending the streak of monthly price increases to 14 months.
However, the magnitude of the increases have declined in recent months, and more importantly, hot-rolled steel prices dropped around $20 a ton in October, a positive sign for us.
Our current plans indicate that price/cost will be approximately a $100 million tailwind for the fiscal year.
The trailing three-month orders for Automation Solutions were up 20% versus the prior year driven, as I said prior, by continued automation investments in discrete and hybrid markets, and we believe that will continue into 2022, and, of course, the strengthening of the process automation spend.
To give you perspective, 2021 walkdowns were up 50% year-over-year with more than 5,000 globally, with each walkdown driving substantial KOB three pull-through.
Shutdown turnaround bookings were up -- for -- in 2021 10% year-over-year driven by strong spring season that extended into the early summer.
Overall, the trailing three-month orders were 9% in September.
Based on this macro landscape, we believe -- we continue to expect demand to be strong in 2022.
Emerson's 2021 adjusted EBITDA of 23.1% surpassed our previous record.
Over 90% of our restructuring spend communicated in our investor conference is complete, and over 70% of the savings have been realized with remaining longer-term facility projects left to be completed.
So given this landscape, we expect underlying sales growth of 6% to 8% in 2022 and net sales growth of 4% to 6%.
Underlying sales growth for Automation Solutions will be 6% to 8%, while Commercial & Residential Solutions will be 6% to 9%.
As Ram discussed, we expect price/cost to turn into tailwind for the year of approximately $100 million.
$150 million of restructuring activities includes the minimal remaining spend on our cost reset program and additional programs, including footprint activities, that have been identified and are planned in the fiscal year.
Looking at the 2021 column of the bridge to the right, our prior adjusted earnings per share of $4.10 increases to $4.51 when removing the impact of intangibles amortization expense of $0.41.
For 2022, the amortization expense is expected to be approximately $0.42 driven by -- driving, excuse me, our adjusted earnings per share to between $4.82 and $4.97.
We expect a first quarter 2022 underlying sales growth of 7% to 9% with broad underlying strength across Automation Solutions and Commercial & Residential Solutions.
Adjusted earnings per share is expected to be between $0.98 and $1.02.
Amortization for the quarter is expected to be roughly $0.10.

Summary:
Having said that, the company grew 7% in the fourth quarter and had 19% operating leverage.
Net sales were up 9% year-over-year, including a one point impact from acquisitions, mainly OSI, which closed at the beginning of the fiscal year.
Adjusted earnings per share was $1.21, exceeding the guidance midpoint by $0.03 and up 10% and versus the prior year.
Based on this macro landscape, we believe -- we continue to expect demand to be strong in 2022.
For 2022, the amortization expense is expected to be approximately $0.42 driven by -- driving, excuse me, our adjusted earnings per share to between $4.82 and $4.97.
Adjusted earnings per share is expected to be between $0.98 and $1.02.