Rockwell Automation (ROK) 10-K 18 Nov 09 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	12 Months Ended Sep. 30, 2009	Oct. 31, 2009	Mar. 31, 2009
Document and Company Information [Abstract]
Entity Registrant Name	ROCKWELL AUTOMATION INC
Entity Central Index Key	0001024478
Document Type	10-K
Document Period End Date	2009-09-30
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$3
Entity Common Stock, Shares Outstanding		142,253,411

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	Sep. 30, 2009	Sep. 30, 2008
Current Assets
Cash and cash equivalents	643.8	582.2
Receivables	726.3	959.9
Inventories	436.4	575.5
Deferred income taxes	174.4	190
Other current assets	153.9	129
Total current assets	2134.8	2436.6
Property, net	532.5	553.8
Goodwill	913.2	915
Other intangible assets, net	230.9	250.8
Deferred income taxes	307.6	120.1
Prepaid pension	30.7	138.4
Other assets	156	178.9
Total	4305.7	4593.6
Current Liabilities
Short-term debt	0	100.1
Accounts payable	313.3	437.3
Compensation and benefits	148.9	210
Advance payments from customers and deferred revenue	159.1	161.6
Customer returns, rebates and incentives	107.3	124.6
Other current liabilities	218.6	269.5
Total current liabilities	947.2	1303.1
Long-term debt	904.7	904.4
Retirement benefits	848.9	386.8
Other liabilities	288.5	310.5
Shareowners' Equity
Common stock (shares issued: 2009, 181.4; 2008, 216.4)	181.4	216.4
Additional paid-in capital	1304.8	1280.9
Retained earnings	2667.2	4486.1
Accumulated other comprehensive loss	-727.5	(319)
Common stock in treasury, at cost (shares held: 2009, 39.3; 2008, 73.2)	-2109.5	-3975.6
Total shareowners' equity	1316.4	1688.8
Total	4305.7	4593.6

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
Share data in Millions	Sep. 30, 2009	Sep. 30, 2008
Shareowners' Equity
Common stock, shares issued	181.4	216.4
Treasury stock, shares	39.3	73.2

Consolidated Statement of Opera

Consolidated Statement of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Sales
Products and solutions	3886.7	5159.8	4543.5
Services	445.8	538	460.4
Total sales	4332.5	5697.8	5003.9
Cost of sales
Products and solutions	-2454.5	-2985.1	-2591.1
Services	-308.5	(372)	-315.5
Total cost of sales	(2,763)	-3357.1	-2906.6
Gross profit	1569.5	2340.7	2097.3
Selling, general and administrative expenses	(1,228)	-1482.1	-1278.6
Other (expense) income	-6.7	18.5	33.3
Interest expense	-60.9	-68.2	-63.4
Income from continuing operations before income taxes	273.9	808.9	788.6
Income tax provision	(56)	-231.3	-219.3
Income from continuing operations	217.9	577.6	569.3
Income from discontinued operations	2.8	0	918.5
Net income	220.7	577.6	1487.8
Basic earnings per share:
Continuing operations	1.54	3.94	3.59
Discontinued operations	0.02	$0	5.78
Net income	1.56	3.94	9.37
Diluted earnings per share:
Continuing operations	1.53	3.9	3.53
Discontinued operations	0.02	$0	5.7
Net income	1.55	3.9	9.23
Weighted average outstanding shares:
Basic	141.6	146.5	158.7
Diluted	142.5	148.2	161.2

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Operating Activities:
Net income	220.7	577.6	1487.8
Income from discontinued operations	-2.8	0	-918.5
Income from continuing operations	217.9	577.6	569.3
Adjustments to arrive at cash provided by operating activities:
Depreciation	101.7	101.3	93.5
Amortization of intangible assets	32.4	35.2	24.4
Share-based compensation expense	27.8	32.5	29
Retirement benefit expense	48.5	44	59.3
Pension trust contributions	-28.8	-39.2	-49.1
Deferred income taxes	14.7	-16.1	-43.7
Net loss (gain) on dispositions of securities and property	4.4	(5)	-5.4
Income tax benefit from the exercise of stock options	0.1	0.2	1.3
Excess income tax benefit from the exercise of stock options	-2.4	-4.6	-27.1
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency adjustments:
Receivables	228.2	(16)	-95.1
Inventories	127.5	-76.2	-67.7
Accounts payable	-101.1	(49)	68.4
Compensation and benefits	-56.7	15.4	7.8
Income taxes	-55.5	-17.5	(161)
Other assets and liabilities	-32.3	14.2	41
Cash Provided by Operating Activities	526.4	596.8	444.9
Investing Activities:
Capital expenditures	(98)	(151)	(131)
Acquisition of businesses, net of cash acquired	-30.7	-110.8	-249.5
Proceeds from sales of property and business	4	7.7	1750.5
Proceeds from sales of available for sale securities and short-term investments	4.8	36.3	32.1
Purchases of short-term investments	-8.4	0	0
Other investing activities	-4.1	-2.9	-3.2
Cash (Used for) Provided by Investing Activities	-132.4	-220.7	1398.9
Financing Activities:
Net repayments of short-term debt	(100)	-73.1	(46)
Issuance of long-term debt	0	493.5	0
Repayments of long-term debt	0	-351.3	-14.7
Cash dividends	-164.5	-170.2	-184.7
Purchases of treasury stock	-53.5	-359.1	-1519.3
Proceeds from the exercise of stock options	11.3	13.2	64.9
Excess income tax benefit from the exercise of stock options	2.4	4.6	27.1
Other financing activities	-3.1	-0.4	-0.4
Cash Used for Financing Activities	-307.4	-442.8	-1673.1
Effect of exchange rate changes on cash	-24.5	30.7	38.8
Cash Provided by (Used for) Continuing Operations	62.1	(36)	209.5
Discontinued Operations:
Cash (Used for) Provided by Discontinued Operating Activities	-0.5	(6)	13.9
Cash Used for Discontinued Investing Activities	0	0	-6.5
Cash Used for Discontinued Financing Activities	0	0	-0.8
Cash (Used for) Provided by Discontinued Operations	-0.5	(6)	6.6
Increase (Decrease) in Cash	61.6	(42)	216.1
Cash and Cash Equivalents at Beginning of Year	582.2	624.2	408.1
Cash and Cash Equivalents at End of Year	643.8	582.2	624.2

Consolidated Statement of Share

Consolidated Statement of Shareowners Equity (USD $)
In Millions	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Beginning balance	1688.8	1742.8	1918.2
Net income	220.7	577.6	1487.8
Other comprehensive (loss) income	-408.5	-149.3	105.8
Ending balance	1316.4	1688.8	1742.8
Total shareowners' equity	1316.4	1688.8	1742.8
Common Stock
Beginning balance	216.4	216.4	216.4
Retirement of treasury shares	(35)	0	0
Ending balance	181.4	216.4	216.4
Total shareowners' equity	181.4	216.4	216.4
Additional Paid-in Capital
Beginning balance	1280.9	1247.5	1193.6
Income tax benefits from the exercise of stock options	2.5	4.8	28.4
Share-based compensation expense	27.2	32.3	28.6
Other	-5.8	-3.7	-3.1
Ending balance	1304.8	1280.9	1247.5
Total shareowners' equity	1304.8	1280.9	1247.5
Retained Earnings
Beginning balance	4486.1	4098.1	2856.2
Net income	220.7	577.6	1487.8
Cash dividends ($1.16 per share each year)	-164.5	-170.2	-184.7
Retirement of treasury shares	(1,846)	0	0
Shares delivered under incentive plans	-21.3	-12.2	-61.2
Adjustment to adopt new accounting guidance related to defined benefit and postretirement plans, net of tax of $4.4 million	-7.8	0	0
Adjustment to adopt new accounting guidance related to uncertain tax positions, gross of translation adjustment of $0.5 million	0	-7.2	0
Ending balance	2667.2	4486.1	4098.1
Total shareowners' equity	2667.2	4486.1	4098.1
Accumulated Other Comprehensive Loss
Beginning balance	(319)	-169.7	-75.3
Other comprehensive (loss) income	-408.5	-149.3	105.8
Adjustment to adopt new accounting guidance related to defined benefit and postretirement plans, net of tax of $129.0 million	0	0	-200.2
Ending balance	-727.5	(319)	-169.7
Total shareowners' equity	-727.5	(319)	-169.7
Treasury Stock
Beginning balance	-3975.6	-3649.5	-2272.7
Purchases	(50)	-355.1	-1506.1
Retirement of treasury shares	1,881	0	0
Shares delivered under incentive plans	35.1	29	129.3
Ending balance	-2109.5	-3975.6	-3649.5
Total shareowners' equity	-2109.5	-3975.6	-3649.5

1_Consolidated Statement of Sha

Consolidated Statement of Shareowners Equity [Parenthetical] (USD $)
In Millions	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Retained Earnings
Common stock dividends per share	1.16	1.16	1.16
Adjustment to adopt new accounting guidance related to defined benefit and postretirement plans, tax effect	4.4
Adjustment to adopt new accounting guidance related to uncertain tax positions, translation adjustment		0.5
Accumulated Other Comprehensive Loss
Adjustment to adopt new accounting guidance related to defined benefit and postretirement plans, tax effect			$129

Consolidated Statement of Compr

Consolidated Statement of Comprehensive (Loss) Income (USD $)
In Millions	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Net income	220.7	577.6	1487.8
Other comprehensive (loss) income:
Minimum pension liability adjustments (net of tax expense of $0, $0, and $3.5)	0	0	6.8
Unrecognized pension and postretirement benefit plan liabilities (net of tax benefit of ($193.8), ($89.5) and $0)	-360.3	-151.3	0
Currency translation adjustments	-53.2	-0.3	112.2
Net change in unrealized gains and losses on cash flow hedges (net of tax expense (benefit) of $3.1, $3.3, and ($9.9))	4.8	4.9	-15.6
Net change in unrealized gains and losses on investment securities, net of tax	0.2	-2.6	2.4
Other comprehensive (loss) income	-408.5	-149.3	105.8
Comprehensive (loss) income	-187.8	428.3	1593.6

2_Consolidated Statement of Com

Consolidated Statement of Comprehensive (Loss) Income (Parenthetical) (USD $)
In Millions	12 Months Ended Sep. 30, 2009	12 Months Ended Sep. 30, 2008	12 Months Ended Sep. 30, 2007
Other comprehensive (loss) income:
Tax expense for minimum pension liability	$0	$0	3.5
Tax benefit unrecognized pension and postretirement	-193.8	-89.5	0
Tax expense (benefit) for unrealized gains and losses on cash flow hedges	3.1	3.3	-9.9

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies
	12 Months Ended Sep. 30, 2009 USD / shares
Basis of Presentation and Accounting Policies [Abstract]
Basis of Presentation and Accounting Policies	1. Basis of Presentation and Accounting Policies Rockwell Automation, Inc. (the Company or Rockwell Automation) is a leading global provider of industrial automation power, control and information solutions that help manufacturers achieve a competitive advantage for their businesses. Basis of Presentation Except as indicated, amounts reflected in the consolidated financial statements or the notes thereto relate to our continuing operations. We have evaluated subsequent events through the date and time of issuance of these financial statements on November18, 2009. On January31, 2007, we divested our Dodge mechanical and Reliance Electric motors and motor repair services businesses to Baldor Electric Company (Baldor). These were the principal businesses of our former Power Systems operating segment. These businesses are reported as a discontinued operation in the Consolidated Financial Statements for all periods presented. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and controlled majority owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Investments in affiliates over which we do not have the ability to exert significant influence are accounted for using the cost method of accounting. These affiliated companies are not material individually or in the aggregate to our financial position, results of operations or cash flows. Use of Estimates The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results could differ from those estimates. We use estimates in accounting for, among other items, customer returns, rebates and incentives; allowance for doubtful accounts; excess and obsolete inventory; share-based compensation; acquisitions; product warranty obligations; retirement benefits; litigation, claims and contingencies, including environmental matters, conditional asset retirement obligations and contractual indemnifications; and income taxes. We account for changes to estimates and assumptions prospectively when warranted by factually based experience. Revenue Recognition Product and solution revenues consist of industrial automation power, control and information; hardware and software products; and custom-engineered systems. Service revenues include multi-vendor customer technical support and repair, asset management and optimization consulting and training. For approximately 80percent of our consolidated sales, we record sales when all of the following have occurred: an agreement of sale exists; pricing is fixed or determinable; collection is reasonably assured; and product has been delivered and acceptance has occurred, as may be required according to contract terms, or services have been rendered. We recognize substantially all of the remainde

Acquisitions and Divestitures

Acquisitions and Divestitures
	12 Months Ended Sep. 30, 2009 USD / shares
Acquisitions and Divestitures [Abstract]
Acquisitions and Divestitures	2. Acquisitions and Divestitures Acquisitions In 2009, our Control Products Solutions segment acquired the assets and assumed certain liabilities of Xian Hengsheng Science Technology Company Limited (Hengsheng). Hengsheng delivers automation solutions to the electrical power and other heavy process industries in central and western China. It also acquired a majority of the assets and assumed certain liabilities of the automation business of Rutter Hinz Inc. (Hinz). Hinz offers industrial control systems engineering and related support, with domain expertise in industrial automation, process control and power distribution, specifically for the oil and gas industry, as well as other resource-based industries. The aggregate purchase price of these two acquisitions was $30.7million. We recorded goodwill of $14.2million and intangible assets of $8.4million resulting from the preliminary purchase price allocations of Hengsheng and Hinz. Intangible assets assigned include $1.2million to technology (8-year weighted average useful life), $5.9million to customer relationships (10-year weighted average useful life) and $1.3million to other intangible assets (4-year weighted average useful life). We expect $6.3million of the goodwill to be deductible for tax purposes. During 2008, our Architecture Software segment acquired CEDES Safety Automation AG (CEDES), Incuity Software, Inc. (Incuity), and Pavilion Technologies, Inc. (Pavilion). The aggregate purchase price of these three acquisitions was $112.9million in cash. We acquired CEDES in May2008. Swiss-based CEDES is a supplier of safety and measuring light curtains, as well as other safety and non-safety optoelectronics, control units and related accessories for industrial applications. We also acquired Incuity, which is a supplier of Enterprise Manufacturing Intelligence (EMI)software, in May2008. Incuitys software provides real-time intelligence for business decision support to improve operations and reduce production waste by providing valuable management insight into a companys operations. We acquired Pavilion, a company that is a recognized leader in advanced process control, production optimization and environmental compliance solutions for process and hybrid industries, in November2007. We recorded intangible assets of $43.1million and goodwill of $69.3million resulting from the final purchase price allocations of the CEDES, Incuity and Pavilion acquisitions. Intangible assets assigned include $34.0million to technology (15-year weighted average useful life), $6.6 million to customer relationships (9-year weighted average useful life) and $2.5million to other intangible assets (4-year weighted average useful life). We assigned the full amount of goodwill to our Architecture Software segment. None of the goodwill recorded is expected to be deductible for tax purposes. In fiscal 2007, our Control Products Solutions segment acquired Industrial Control Services Group Limited, which does business as ICS Triplex, and ProsCon Holdings Ltd. (ProsCon). The aggregate purchase price of these two acquisitions was approximately $268.8million in cash. ICS Triplex, headquar

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	12 Months Ended Sep. 30, 2009 USD / shares
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	3. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the years ended September30, 2008 and 2009 were (in millions): Control Architecture Products Software Solutions Total Balance as of September30, 2007 $ 335.1 $ 523.4 $ 858.5 Acquisition of businesses 69.9 69.9 Translation and other (8.4 ) (5.0 ) (13.4 ) Balance as of September30, 2008 396.6 518.4 915.0 Acquisition of businesses 14.2 14.2 Translation and other (9.8 ) (6.2 ) (16.0 ) Balance as of September30, 2009 $ 386.8 $ 526.4 $ 913.2 Other intangible assets consist of (in millions): September 30, 2009 Carrying Accumulated Amount Amortization Net Amortized intangible assets: Computer software products $ 140.9 $ 93.7 $ 47.2 Customer relationships 59.8 10.8 49.0 Technology 84.2 32.0 52.2 Other 33.7 18.4 15.3 Total amortized intangible assets 318.6 154.9 163.7 Intangible assets not subject to amortization 67.2 67.2 Total $ 385.8 $ 154.9 $ 230.9 September 30, 2008 Carrying Accumulated Amount Amortization Net Amortized intangible assets: Computer software products $ 126.6 $ 77.9 $ 48.7 Customer relationships 52.7 5.6 47.1 Technology 84.9 25.4 59.5 Other 50.8 26.0 24.8 Total amortized intangible assets 315.0 134.9 180.1 Intangible assets not subject to amortization 70.7 70.7 Total $ 385.7 $ 134.9 $ 250.8 Computer software products represent costs of computer software to be sold, leased or otherwise marketed. Computer software products amortization expense was $15.8million in 2009, $14.5million in 2008 and $9.7million in 2007. The Allen-Bradley and ICS Triplex trademarks have an indefinite life, and therefore are not subject to amortization. Estimated amortization expense is $30.8million in 2010, $28.8million in 2011, $25.0million in 2012, $18.5million in 2013, and $13.8million in 2014. We performed the annual evaluation of our goodwill and indefinite life intangible assets for impairment during the second quarter of 2009 and concluded that none of these assets is impaired.

Inventories

Inventories
	12 Months Ended Sep. 30, 2009 USD / shares
Inventories [Abstract]
Inventories	4. Inventories Inventories consist of (in millions): September 30, 2009 2008 Finished goods $ 166.4 $ 237.0 Work in process 109.1 125.9 Raw materials, parts, and supplies 160.9 212.6 Inventories $ 436.4 $ 575.5 We report inventories net of the allowance for excess and obsolete inventory of $53.2million at September30, 2009 and $39.7million at September30, 2008.

Property, net

Property, net
	12 Months Ended Sep. 30, 2009 USD / shares
Property, net [Abstract]
Property, net	5. Property, net Property consists of (in millions): September 30, 2009 2008 Land $ 4.7 $ 5.2 Buildings and improvements 276.7 273.6 Machinery and equipment 1,116.4 1,089.8 Internal use software 324.8 300.0 Construction in progress 36.5 46.8 Total 1,759.1 1,715.4 Less accumulated depreciation (1,226.6 ) (1,161.6 ) Property, net $ 532.5 $ 553.8

Long term and Short term Debt

Long term and Short term Debt
	12 Months Ended Sep. 30, 2009 USD / shares
Long-term and Short-term Debt [Abstract]
Long-term and Short-term Debt	6. Long-term and Short-term Debt Long-term debt consists of (in millions): September 30, 2009 2008 5.65% notes, payable in 2017 $ 250.0 $ 250.0 6.70% debentures, payable in 2028 250.0 250.0 6.25% debentures, payable in 2037 250.0 250.0 5.20% debentures, payable in 2098 200.0 200.0 Unamortized discount and other (45.3 ) (45.6 ) Long-term debt $ 904.7 $ 904.4 In December2007, we issued an aggregate of $500million principal amount of our 5.65% notes due 2017 and 6.25% debentures due 2037. The debt offering yielded approximately $493.5million of proceeds, which were used to repay at maturity our 6.15% notes due January15, 2008 and for general corporate purposes. On March16, 2009, we replaced our former five-year $600.0million unsecured revolving credit facility with two new unsecured revolving credit facilities totaling $535.0million. The new facilities have borrowing limits of $267.5million each. One facility has a three-year term and the other facility has a 364-day term. Our 364-day credit facility includes a term-out option that allows us to borrow, on March15, 2010, up to $267.5million as a term loan for one year. We have not drawn down under any of these credit facilities at September30, 2009 or 2008. Borrowings under these credit facilities bear interest based on short-term money market rates in effect during the period the borrowings are outstanding. The terms of these credit facilities contain covenants under which we would be in default if our debt-to-total-capital ratio was to exceed 60percent. We were in compliance with all covenants under these credit facilities at September30, 2009 and 2008. In addition to our two $267.5million credit facilities, short-term unsecured credit facilities of approximately $169.7million at September30, 2009 were available to non-U.S. subsidiaries. There were no significant commitment fees or compensating balance requirements under any of our credit facilities. Borrowings under our credit facilities during 2009 and 2008 were not significant. Our short-term debt obligations primarily relate to commercial paper borrowings. At September 30, 2009 we had no commercial paper borrowings outstanding. Commercial paper borrowings outstanding at September30, 2008 were $100.0million. The weighted average interest rate and maturity period of the commercial paper outstanding at September30, 2008 were 2.2percent and six days, respectively. Interest payments were $62.8million during 2009, $63.4million during 2008 and $64.3million during 2007.

Other Current Liabilities

Other Current Liabilities
	12 Months Ended Sep. 30, 2009 USD / shares
Other Liabilities, Current [Abstract]
Other Current Liabilities	7. Other Current Liabilities Other current liabilities consist of (in millions): September 30, 2009 2008 Unrealized losses on foreign exchange contracts (Note 9) $ 19.1 $ 16.2 Product warranty obligations (Note 8) 32.1 33.5 Taxes other than income taxes 30.3 39.1 Accrued interest 15.6 15.6 Restructuring and special items (Note 14) 60.8 66.5 Income taxes payable 39.4 Other 60.7 59.2 Other current liabilities $ 218.6 $ 269.5

Product Warranty Obligations

Product Warranty Obligations
	12 Months Ended Sep. 30, 2009 USD / shares
Product Warranty Obligations [Abstract]
Product Warranty Obligations	8. Product Warranty Obligations We record a liability for product warranty obligations at the time of sale to a customer based upon historical warranty experience. Most of our products are covered under a warranty period that runs for twelve months from either the date of sale or from installation to a customer. We also record a liability for specific warranty matters when they become known and reasonably estimable. Our product warranty obligations are included in other current liabilities in the Consolidated Balance Sheet. Changes in product warranty obligations are (in millions): September 30, 2009 2008 Balance at beginning of period $ 33.5 $ 34.9 Warranties recorded at time of sale 33.2 43.3 Adjustments to pre-existing warranties (1.1 ) (0.4 ) Settlements of warranty claims (33.5 ) (44.3 ) Balance at end of period $ 32.1 $ 33.5

Derivative Instruments and Fair

Derivative Instruments and Fair Value Measurement
	12 Months Ended Sep. 30, 2009 USD / shares
Derivative Instruments and Fair Value Measurement [Abstract]
Derivative Instruments and Fair Value Measurement	9. Derivative Instruments and Fair Value Measurement We use foreign currency forward exchange contracts to manage certain foreign currency risks. We enter into these contracts to offset changes in the amount of future cash flows associated with certain third-party and intercompany transactions denominated in foreign currencies expected to occur within the next two years (cash flow hedges). Certain of our locations have assets and liabilities denominated in currencies other than their functional currencies resulting from intercompany loans and other transactions with third parties denominated in foreign currencies. We also enter into foreign currency forward exchange contracts that we do not designate as hedging instruments to offset the transaction gains or losses associated with some of these assets and liabilities. We recognize all derivative financial instruments as either assets or liabilities at fair value in the Consolidated Balance Sheet. We report in other comprehensive (loss)income the effective portion of the gain or loss on derivative financial instruments that we designate and that qualify as cash flow hedges. We reclassify these gains or losses into earnings in the same periods when the hedged transactions affect earnings. Gains and losses on derivative financial instruments for which we do not elect hedge accounting are recognized in the Consolidated Statement of Operations in each period, based upon the change in the fair value of the derivative financial instruments. It is our policy to execute such instruments with global financial institutions that we believe to be creditworthy and not to enter into derivative financial instruments for speculative purposes. We diversify our forward exchange contracts among counterparties to minimize exposure to any one of these entities. All forward exchange contracts are denominated in currencies of major industrial countries. The notional values of our forward exchange contracts outstanding at September30, 2009 were $902.4million, of which $369.0million were designated as cash flow hedges. Contracts with the most significant notional values relate to transactions denominated in the British pound sterling, United States dollar, euro and Canadian dollar. U.S. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. U.S. GAAP also classifies the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3: Unobservable inputs for the asset or liability. We value our forward exchange contracts using a market approach. We use an internally developed valuation model based on inputs including forward and spot prices f

Shareowners Equity

Shareowners Equity
	12 Months Ended Sep. 30, 2009 USD / shares
Shareowners' Equity [Abstract]
Shareowners' Equity	10. Shareowners Equity Common Stock At September30, 2009, the authorized stock of the Company consisted of one billion shares of common stock, par value $1.00 per share, and 25million shares of preferred stock, without par value. In 2009, we retired 35million shares of common stock that we held in our treasury. These shares are now designated as authorized and unissued. At September30, 2009, 17.5million shares of common stock were reserved for various incentive plans. Changes in outstanding common shares are summarized as follows (in millions): 2009 2008 2007 Beginning balance 143.2 149.4 170.8 Treasury stock purchases (1.7 ) (6.7 ) (23.8 ) Shares delivered under incentive plans 0.6 0.5 2.4 Ending balance 142.1 143.2 149.4 During September2008, we repurchased 0.1million shares of common stock for $3.5 million that did not settle until October2008. During September2007, we repurchased 0.1million shares of common stock for $7.5million that did not settle until October2007. These outstanding purchases were recorded in accounts payable at September30, 2008 and 2007. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of (in millions): September 30, 2009 2008 Unrecognized pension and postretirement benefit plan liabilities (Note 12) $ (728.3 ) $ (368.0 ) Accumulated currency translation adjustments 7.7 60.9 Net unrealized losses on cash flow hedges (7.0 ) (11.8 ) Unrealized gains (losses)on investment securities 0.1 (0.1 ) Accumulated other comprehensive loss $ (727.5 ) $ (319.0 )

Share Based Compensation

Share Based Compensation
	12 Months Ended Sep. 30, 2009 USD / shares
Share-Based Compensation [Abstract]
Share-Based Compensation	11. Share-Based Compensation During 2009, 2008, and 2007 we recognized $27.8million, $32.5million and $29.0million in share-based compensation expense, respectively. The total income tax benefit related to share-based compensation was $9.1million during 2009, $11.0million during 2008 and $10.2million during 2007. We recognize compensation expense on grants of share-based compensation awards on a straight-line basis over the service period of each award recipient. As of September30, 2009, total unrecognized compensation cost related to share-based compensation awards was $29.4million, net of estimated forfeitures, which we expect to recognize over a weighted average period of approximately 1.6years. Our 2008 Long-Term Incentives Plan (2008 Plan) authorizes us to deliver up to 7.2million shares of our common stock upon exercise of stock options, or upon grant or in payment of stock appreciation rights, performance shares, performance units, restricted stock units and restricted stock. Our 2003 Directors Stock Plan, as amended, authorizes us to deliver up to 0.5million shares of our common stock upon exercise of stock options or upon grant of shares of our common stock and restricted stock units. Shares relating to awards under our 2008 Plan or our 2000 Long-Term Incentives Plan that terminate by expiration, forfeiture, cancellation or otherwise without the issuance or delivery of shares will be available for further awards under the 2008 Plan. Approximately 4.8million shares under our 2008 Plan and 0.3million shares under our 2003 Directors Stock Plan remain available for future grant or payment at September30, 2009. After September30, 2009, 0.1million potential shares to be delivered under performance share awards were cancelled under the 2000 Plan and are now available for future awards under the 2008 Plan. We use treasury stock to deliver shares of our common stock under these plans. Our 2008 Plan does not permit share-based compensation awards to be granted after February6, 2018. Stock Options We have granted non-qualified and incentive stock options to purchase our common stock under various incentive plans at prices equal to the fair market value of the stock on the grant dates. The exercise price for stock options granted under the plans may be paid in cash, shares of common stock or a combination of cash and shares. Stock options expire ten years after the grant date and vest ratably over three years. The per share weighted average fair value of stock options granted during the years ended September30, 2009, 2008 and 2007 was $7.75, $17.57 and $20.02, respectively. We estimated the fair value of each stock option on the date of grant using the Black-Scholes pricing model and the following assumptions: 2009 2008 2007 Average risk-free interest rate 1.63 % 3.34 % 4.59 % Expected dividend yield 2.47 % 1.78 % 1.47 % Expected volatility 0.35 0.28 0.31 Expected term (years) 5.4 5.3 5.4 The average risk-free interest rate is based on the five-year U.S. treasury security rate in effect as of the grant date. The

Retirement Benefits

Retirement Benefits
	12 Months Ended Sep. 30, 2009 USD / shares
Retirement Benefits [Abstract]
Retirement Benefits	12. Retirement Benefits We sponsor funded and unfunded pension plans and other postretirement benefit plans for our employees. The pension plans cover most of our employees and provide for monthly pension payments to eligible employees after retirement. Pension benefits for salaried employees generally are based on years of credited service and average earnings. Pension benefits for hourly employees are primarily based on specified benefit amounts and years of service. Our policy with respect to funding our pension obligations is to fund the minimum amount required by applicable laws and governmental regulations. We may, however, at our discretion, fund amounts in excess of the minimum amount required by laws and regulations, as we did in 2007. Other postretirement benefits are primarily in the form of retirement medical plans that cover most of our United States employees and provide for the payment of certain medical costs of eligible employees and dependents after retirement. In 2008 we used an actuarial measurement date of June30 to measure our benefit obligations, plan assets and to calculate our net periodic benefit cost for pension and other postretirement benefits. In 2009, we changed our measurement date to September30 due to a change in U.S. GAAP. We recorded a reduction in retained earnings of $12.2million ($7.8million net of tax) in the fourth quarter of 2009 related to this change. As of September30, 2007, we changed our accounting for defined benefit pension and other postretirement plans due to a change in U.S. GAAP. As a result, we recorded a reduction in equity of $200.2million, net of a deferred tax benefit of $129.0million. This reduction in equity was recorded in accumulated other comprehensive loss. The components of net periodic benefit cost are (in millions): Other Postretirement Pension Benefits Benefits 2009 2008 2007 2009 2008 2007 Service cost $ 56.0 $ 58.0 $ 56.8 $ 3.6 $ 3.9 $ 3.9 Interest cost 154.7 149.7 127.6 13.3 13.8 13.3 Expected return on plan assets (191.5 ) (193.5 ) (161.8 ) Amortization: Prior service credit (3.7 ) (4.5 ) (4.6 ) (10.6 ) (14.7 ) (16.5 ) Net transition obligation 0.3 0.4 0.1 Net actuarial loss 16.9 18.5 28.2 9.5 12.4 12.3 Net periodic benefit cost $ 32.7 $ 28.6 $ 46.3 $ 15.8 $ 15.4 $ 13.0 Excluded from this net periodic benefit cost table but included in income from discontinued operations in the Consolidated Statement of Operations is pre-tax pension benefit cost of $3.8million and pre-tax other postretirement benefit cost of $4.8million for the year ended September30, 2007. Also in 2007, we recognized a pension curtailment loss of $0.4million, an other postretirement benefits curtailment gain of $45.1mill

Discontinued Operations

Discontinued Operations
	12 Months Ended Sep. 30, 2009 USD / shares
Discontinued Operations [Abstract]
Discontinued Operations	13. Discontinued Operations The following is a summary of the composition of income from discontinued operations included in the Consolidated Statement of Operations (in millions): 2009 2008 2007 Power Systems net income from operations $ $ $ 42.3 Gain on sale of Power Systems (net of tax expense of $192.2million) 868.2 Other 2.8 8.0 Income from discontinued operations $ 2.8 $ $ 918.5 Power Systems On January31, 2007, we sold our Dodge mechanical and Reliance Electric motors and motor repair services businesses to Baldor for $1.8billion, comprised of $1.75billion in cash and approximately 1.6million shares of Baldor common stock. The results of operations and gain on sale of these businesses are reported in income from discontinued operations in the Consolidated Financial Statements for all periods presented. Other During 2009, we recorded a benefit of $4.5million ($2.8million net of tax) related to a change in estimate for legal contingencies associated with the former Rockwell International Corporations (RICs) operation of the Rocky Flats facility for the U.S. Department of Energy. During 2007, we recorded a change in estimate of a contingent liability related to a divested business, resulting in income of $9.0million with no income tax effect. We also recorded a net charge of $1.6million ($1.0million after tax) related to resolutions of certain claims and professional service fees related to discontinued operations matters, offset by a benefit related to legal matters associated with RICs operation of the Rocky Flats facility for the U.S. Department of Energy (DOE). Summarized Results Summarized results of Power Systems operations are (in millions): Four Months Ended January 31, 2007 Sales $ 340.7 Income before income taxes $ 69.6 Income tax expense (27.3 ) Net income $ 42.3

Restructuring Charges and Speci

Restructuring Charges and Special Items
	12 Months Ended Sep. 30, 2009 USD / shares
Restructuring Charges and Special Items [Abstract]
Restructuring Charges and Special Items	14. Restructuring Charges and Special Items During 2009, we recorded restructuring charges of $60.4million ($41.8million after tax, or $0.29 per diluted share) related to actions designed to better align our cost structure with current economic conditions. The majority of the charges relate to severance benefits recognized pursuant to our severance policy and local statutory requirements. In the Consolidated Statement of Operations for the year ended September30, 2009, we recorded $21.0million of the restructuring charges in cost of sales, and we recorded $39.4million in selling, general and administrative expenses. We expect total cash expenditures associated with these actions to be approximately $50.7million. During 2008, we recorded special items of $50.7million ($34.0million after tax, or $0.23 per diluted share) related to restructuring actions designed to better align resources with growth opportunities and to reduce costs as a result of current and anticipated market conditions. This charge was partially offset by the reversal of $4.0million ($3.6million after tax, or $0.02 per diluted share) of severance accruals established as part of our 2007 restructuring actions, as employee attrition differed from our original estimates. The 2008 restructuring actions include workforce reductions aimed at streamlining administrative functions, realigning selling resources to the highest anticipated growth opportunities and consolidating business units. The majority of the charges relate to severance benefits recognized pursuant to our severance policy and local statutory requirements. In the Consolidated Statement of Operations for the year ended September 30, 2008, we recorded $4.1million of the special items in cost of sales, while $46.6million was recorded in selling, general and administrative expenses. During 2007, we recorded special items of $43.5million ($27.7million after tax, or $0.17 per diluted share) related to various restructuring actions designed to execute on our cost productivity initiatives and to advance our globalization strategy. Actions include workforce reductions, realignment of administrative functions, and rationalization and consolidation of global operations. In the Consolidated Statement of Operations for the year ended September30, 2007, $21.8million of the special items was recorded in cost of sales, while $21.7million was recorded in selling, general and administrative expenses. We paid $62.6million, $16.6million and $5.3million related to these charges during the years ended September30, 2009, 2008 and 2007, respectively. Accruals remaining under these restructuring actions after currency translation and other items are $60.8million at September30, 2009.

Other

Other (Expense) Income
	12 Months Ended Sep. 30, 2009 USD / shares
Other (Expense) Income [Abstract]
Other (Expense) Income	15. Other (Expense) Income The components of other (expense)income are (in millions): 2009 2008 2007 Net (loss)gain on dispositions of securities and property $ (4.6 ) $ 5.0 $ 5.4 Interest income 9.6 28.1 29.6 Royalty income 3.7 3.7 1.8 Environmental charges (4.5 ) (1.7 ) (13.9 ) Dividend income 0.3 12.1 (Losses) gains on deferred compensation plans (0.7 ) (5.0 ) 3.7 Other (10.2 ) (11.9 ) (5.4 ) Other (expense)income $ (6.7 ) $ 18.5 $ 33.3

Income Taxes

Income Taxes
	12 Months Ended Sep. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	16. Income Taxes Selected income tax data from continuing operations (in millions): 2009 2008 2007 Components of income before income taxes: United States $ 64.7 $ 459.9 $ 509.2 Non-United States 209.2 349.0 279.4 Total $ 273.9 $ 808.9 $ 788.6 Components of the income tax provision: Current: United States $ 15.8 $ 152.0 $ 169.6 Non-United States 42.3 91.4 97.1 State and local (16.8 ) 4.0 (3.7 ) Total current 41.3 247.4 263.0 Deferred: United States 11.0 (13.0 ) (20.6 ) Non-United States 1.9 (3.0 ) (20.5 ) State and local 1.8 (0.1 ) (2.6 ) Total deferred 14.7 (16.1 ) (43.7 ) Income tax provision $ 56.0 $ 231.3 $ 219.3 Total income taxes paid $ 115.2 $ 265.8 $ 427.3 Income taxes paid included $7.9million during 2008 and $190.0million during 2007 related to the gain on sale of our Dodge mechanical and Reliance Electric motors and motor repair services businesses. During 2009, we recognized discrete tax benefits of $20.5million related to the retroactive extension of the U.S. federal research tax credit, the resolution of a contractual tax obligation and various state tax matters, partially offset by discrete tax expenses of $4.2million related to a non-U.S. subsidiary. During 2008, income from continuing operations included a benefit of $5.6million related to the resolution of various tax matters and claims. During 2007, income from continuing operations included a benefit of $21.7million related to the resolution of certain tax matters and claims related to closure of the 2005 U.S. federal audit cycle and various state tax audits. Effective Tax Rate Reconciliation The reconciliation between the U.S. federal statutory rate and our effective tax rate was: 2009 2008 2007 Statutory tax rate 35.0 % 35.0 % 35.0 % State and local income taxes (1.2 ) 0.6 1.2 Non-United States taxes (9.4 ) (5.5 ) (4.0 ) Foreign tax credit utilization 0.4 (0.5 ) (0.4 ) Employee stock ownership plan benefit (0.8 ) (0.3 ) (0.5 ) Tax refund claims (0.4 ) Reversal of valuation allowances (0.5 ) (0.1 ) Tax benefits on export sales (0.5 ) Domestic manufacturing deduction (1.1 ) (0.6 ) Resolution of prior period tax matters (7.8 ) (0.7 ) (2.3 ) Other 5.3 1.1 (0.2 ) Effective income tax rate 20.4 % 28.6 % 27.8 % Deferred Taxes The tax effects of temporary differences that give rise to our net deferred income tax assets and liabil

Commitments and Contingent Liab

Commitments and Contingent Liabilities
	12 Months Ended Sep. 30, 2009 USD / shares
Commitments and Contingent Liabilities [Abstract]
Commitments and Contingent Liabilities	17. Commitments and Contingent Liabilities Environmental Matters Federal, state and local requirements relating to the discharge of substances into the environment, the disposal of hazardous wastes and other activities affecting the environment have and will continue to have an effect on our manufacturing operations. Thus far, compliance with environmental requirements and resolution of environmental claims have been accomplished without material effect on our liquidity and capital resources, competitive position or financial condition. We have been designated as a potentially responsible party at 14 Superfund sites, excluding sites as to which our records disclose no involvement or as to which our potential liability has been finally determined and assumed by third parties. We estimate the total reasonably possible costs we could incur for the remediation of Superfund sites at September30, 2009 to be $9.5 million, of which $4.3million has been accrued. Various other lawsuits, claims and proceedings have been asserted against us alleging violations of federal, state and local environmental protection requirements, or seeking remediation of alleged environmental impairments, principally at previously owned properties. As of September30, 2009, we have estimated the total reasonably possible costs we could incur from these matters to be $113.2million. We have recorded environmental accruals for these matters of $30.8 million. In addition to the above matters, we retained ownership of Federal Pacific Electric (FPE), a former subsidiary of Reliance, following the sale of our Dodge mechanical and Reliance Electric motors and motor repair services businesses. Certain liabilities of FPE are substantially indemnified by ExxonMobil Corporation. At September30, 2009, FPE has recorded a liability of $23.1 million and a receivable of $22.0million for these matters, which liability and receivable are included in our Consolidated Balance Sheet. We estimate the total reasonably possible costs that could be incurred by FPE for these matters to be $29.4million. Based on our assessment, we believe that our expenditures for environmental capital investment and remediation necessary to comply with present regulations governing environmental protection and other expenditures for the resolution of environmental claims will not have a material adverse effect on our liquidity and capital resources, competitive position or financial condition. We cannot assess the possible effect of compliance with future requirements. Conditional Asset Retirement Obligations We accrue for costs related to a legal obligation associated with the retirement of a tangible long-lived asset that results from the acquisition, construction, development or the normal operation of the long-lived asset. The obligation to perform the asset retirement activity is not conditional even though the timing or method may be conditional. Identified conditional asset retirement obligations include asbestos abatement and remediation of soil contamination beneath current and previously divested facilities. We estimated conditional asset retirement obligations using site-spec

Business Segment Information

Business Segment Information
	12 Months Ended Sep. 30, 2009 USD / shares
Business Segment Information [Abstract]
Business Segment Information	18. Business Segment Information Rockwell Automation is a leading global provider of industrial automation power, control and information solutions that help manufacturers achieve a competitive advantage for their businesses. We determine our operating segments based on the information used by our chief operating decision maker, our Chief Executive Officer, to allocate resources and assess performance. Based upon these criteria, we organized our products and services into two operating segments: Architecture Software and Control Products Solutions. Architecture Software The Architecture Software segment contains all of the elements of our integrated control and information architecture capable of controlling the customers plant floor and connecting with their manufacturing enterprise. Architecture Software has a broad portfolio of products including: Control platforms that perform multiple control disciplines and monitoring of applications, including discrete, batch, continuous process, drives control, motion control and machine safety control. Our platform products include controllers, electronic operator interface devices, electronic input/output devices, communication and networking products, industrial computers and condition based monitoring systems. The information-enabled Logix controllers provide integrated multi-discipline control that is modular and scaleable. Software products that include configuration and visualization software used to operate and supervise control platforms, advanced process control software and manufacturing execution software (MES)that addresses information needs between the factory floor and a customers enterprise business system. Examples of MES applications are production scheduling, asset management, tracking, genealogy and manufacturing business intelligence. Other Architecture Software products, including rotary and linear motion control products, sensors and machine safety components. Control Products Solutions The Control Products Solutions segment combines a comprehensive portfolio of intelligent motor control and industrial control products with the customer support and application knowledge necessary to implement an automation or information solution on the plant floor. This comprehensive portfolio includes: Low voltage and medium voltage electro-mechanical and electronic motor starters, motor and circuit protection devices, AC/DC variable frequency drives, contactors, push buttons, signaling devices, termination and protection devices, relays and timers and condition sensors. Value-added packaged solutions, including configured drives, motor control centers and custom-engineered panels for OEM and end-user applications. Automation and information solutions, including custom-engineered hardware and software systems for discrete, process, motion, drives and manufacturing information applications. Services designed to help maximize a customers automation investment and provide total life-cycle support, including multi-vendor customer technical support and repair, customized safety soluti

Quarterly Financial Information

Quarterly Financial Information (Unaudited)
	12 Months Ended Sep. 30, 2009 USD / shares
Quarterly Financial Information (Unaudited) [Abstract]
Quarterly Financial Information (Unaudited)	19. Quarterly Financial Information (Unaudited) 2009 Quarters First Second(b) Third(c) Fourth(d) 2009 (in millions, except per share amounts) Sales $ 1,189.2 $ 1,058.1 $ 1,010.8 $ 1,074.4 $ 4,332.5 Gross profit 470.4 363.6 370.2 365.3 1,569.5 Income from continuing operations before income taxes 139.5 55.4 50.2 28.8 273.9 Income from continuing operations 115.6 40.6 32.8 28.9 217.9 Income from discontinued operations (a) 2.8 2.8 Net income 118.4 40.6 32.8 28.9 220.7 Basic earnings per share: Continuing operations 0.82 0.29 0.23 0.20 1.54 Discontinued operations (a) 0.02 0.02 Net income 0.84 0.29 0.23 0.20 1.56 Diluted earnings per share: Continuing operations 0.81 0.29 0.23 0.20 1.53 Discontinued operations (a) 0.02 0.02 Net income 0.83 0.29 0.23 0.20 1.55 2008 Quarters First Second Third Fourth(e) 2008 (in millions, except per share amounts) Sales $ 1,331.9 $ 1,406.6 $ 1,475.0 $ 1,484.3 $ 5,697.8 Gross profit 575.5 571.3 605.6 588.3 2,340.7 Income before income taxes 219.0 199.7 213.5 176.7 808.9 Net income 156.6 142.8 152.6 125.6 577.6 Basic earnings per share: Net income 1.05 0.97 1.04 0.87 3.94 Diluted earnings per share: Net income 1.04 0.96 1.03 0.87 3.90 Note: The sum of the quarterly per share amounts will not necessarily equal the annual per share amounts presented. (a) See Note 13 for more information on discontinued operations. (b) Income from continuing operations includes restructuring charges of $20.2million ($13.0million after tax, or $0.09 per diluted share). See Note 14 for more information. (c) Income from continuing operations includes restructuring charges of $7.1million ($4.6 million after tax, or $0.03 per diluted share). See Note 14 for more information. (d) Income from continuing operations includes restructuring charges of $33.1million ($24.2million after tax, or $0.17 per diluted share). See Note 14 for more information. (e) Income from continuing operations includes net special items of $46.7million ($30.4 million after tax, or $0.21 per diluted share). See Note 14 for more information.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Sep. 30, 2009 USD / shares
Schedule Of Valuation And Qualifying Accounts Disclosure Abstract
Valuation and Qualifying Accounts	Schedule Of Valuation And Qualifying Accounts Disclosure SCHEDULE II ROCKWELL AUTOMATION, INC. VALUATION AND QUALIFYING ACCOUNTS For the Years Ended September30, 2009, 2008 and 2007 Balance at Additions Beginning Charged to Charged to Balance at of Costs and Other End of Year Expenses Accounts Deductions(b) Year (in millions) Description *Year ended September30, 2009 Allowance for doubtful accounts (a) $ 20.2 $ 10.1 $ $ 5.7 $ 24.6 Allowance for excess and obsolete inventory 39.7 27.6 14.1 53.2 Valuation allowance for deferred tax assets 45.1 4.2 5.5 43.8 *Year ended September30, 2008 Allowance for doubtful accounts (a) $ 15.2 $ 7.0 $ $ 2.0 $ 20.2 Allowance for excess and obsolete inventory 36.3 15.4 12.0 39.7 Valuation allowance for deferred tax assets 42.6 2.3 4.4 4.2 45.1 *Year ended September30, 2007 Allowance for doubtful accounts (a) $ 14.0 $ 4.0 $ $ 2.8 $ 15.2 Allowance for excess and obsolete inventory 31.4 16.7 11.8 36.3 Valuation allowance for deferred tax assets 36.8 6.2 2.5 2.9 42.6 (a) Includes allowances for current and other long-term receivables. (b) Consists of amounts written off for the allowance for doubtful accounts and excess and obsolete inventory and adjustments resulting from our ability to utilize foreign tax credits, capital losses, or net operating loss carryforwards for which a valuation allowance had previously been recorded. * Amounts reported relate to continuing operations in all periods presented.