Rockwell Automation (ROK) 10-Q 8 Feb 10 2010 Q1 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	3 Months Ended Dec. 31, 2009	Jan. 31, 2010	Mar. 31, 2009
Document and Company Information [Abstract]
Entity Registrant Name	ROCKWELL AUTOMATION INC
Entity Central Index Key	0001024478
Document Type	10-Q
Document Period End Date	2009-12-31
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		142,759,415

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (Unaudited) (USD $)
In Millions	Dec. 31, 2009	Sep. 30, 2009
Current assets:
Cash and cash equivalents	716.3	643.8
Receivables	769.3	726.3
Inventories	468.7	436.4
Deferred income taxes	193.4	174.4
Other current assets	109.4	153.9
Total current assets	2257.1	2134.8
Property, net	519.1	532.5
Goodwill	911.1	913.2
Other intangible assets, net	227.7	230.9
Deferred income taxes	298.3	307.6
Prepaid pension	31.2	30.7
Other assets	154.3	156
TOTAL	4398.8	4305.7
Current liabilities:
Accounts payable	326.4	313.3
Compensation and benefits	152.6	148.9
Advance payments from customers and deferred revenue	177.3	159.1
Customer returns, rebates, and incentives	114.4	107.3
Other current liabilities	224.3	218.6
Total current liabilities	995	947.2
Long-term debt	904.8	904.7
Retirement benefits	849	848.9
Other liabilities	282.6	288.5
Shareowners' equity:
Common stock (shares issued: 181.4)	181.4	181.4
Additional paid-in capital	1305.3	1304.8
Retained earnings	2692.7	2667.2
Accumulated other comprehensive loss	-726.8	-727.5
Common stock in treasury, at cost (shares held: December 31, 2009, 38.8; September 30, 2009, 39.3)	-2085.2	-2109.5
Total shareowners' equity	1367.4	1316.4
TOTAL	4398.8	4305.7

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $)
Share data in Millions	Dec. 31, 2009	Sep. 30, 2009
Shareowners' equity:
Common stock, shares issued	181.4	181.4
Treasury stock, shares	38.8	39.3

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Dec. 31, 2009	3 Months Ended Dec. 31, 2008
Sales
Products and solutions	949.3	1069.6
Services	118.2	119.6
Total sales	1067.5	1189.2
Cost of sales
Products and solutions	-559.6	-635.4
Services	-81.1	-83.4
Total cost of sales	-640.7	-718.8
Gross profit	426.8	470.4
Selling, general and administrative expenses	-312.5	-313.4
Other expense	-1.6	-2.5
Interest expense	-15.4	(15)
Income from continuing operations before income taxes	97.3	139.5
Income tax provision	-19.5	-23.9
Income from continuing operations	77.8	115.6
(Loss) income from discontinued operations	-1.2	2.8
Net income	76.6	118.4
Basic earnings per share:
Continuing operations	0.55	0.81
Discontinued operations	-0.01	0.02
Net income	0.54	0.83
Diluted earnings per share:
Continuing operations	0.54	0.81
Discontinued operations	-0.01	0.02
Net income	0.53	0.83
Cash dividends per share	0.29	0.29
Weighted average outstanding shares:
Basic	142	141.6
Diluted	143.7	142.1

2_Condensed Consolidated Statem

Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Dec. 31, 2009	3 Months Ended Dec. 31, 2008
Operating activities:
Net income	76.6	118.4
(Loss) income from discontinued operations	-1.2	2.8
Income from continuing operations	77.8	115.6
Adjustments to arrive at cash provided by operating activities:
Depreciation	24.7	23.9
Amortization of intangible assets	7	8.4
Share-based compensation expense	8.7	4.6
Retirement benefits expense	21.4	11.8
Pension trust contributions	-7.3	-7.5
Net loss on disposition of property	0.4	0.4
Excess income tax benefit from share-based compensation	-2.1	-0.4
Changes in assets and liabilities, excluding effects of foreign currency adjustments:
Receivables	-42.2	88.8
Inventories	-38.2	-45.8
Accounts payable	13.8	-54.9
Compensation and benefits	-4.7	(55)
Income taxes	27.3	5.8
Other assets and liabilities	32.8	-46.9
Cash provided by operating activities	119.4	48.8
Investing activities:
Capital expenditures	-13.5	-27.4
Proceeds from sale of property	0	1.3
Other investing activities	0	0.8
Cash used for investing activities	-13.5	-25.3
Financing activities:
Net issuance of short-term debt	0	75
Cash dividends	-41.3	(41)
Purchases of treasury stock	0	-53.5
Proceeds from the exercise of stock options	6.7	3.9
Excess income tax benefit from share-based compensation	2.1	0.4
Other financing activities	-0.2	-0.2
Cash used for financing activities	-32.7	-15.4
Effect of exchange rate changes on cash	-0.9	-36.3
Cash provided by (used for) continuing operations	72.3	-28.2
Discontinued operations:
Cash provided by discontinued operating activities	0.2	0
Cash provided by discontinued operations	0.2	0
Increase (decrease) in cash and cash equivalents	72.5	-28.2
Cash and cash equivalents at beginning of period	643.8	582.2
Cash and cash equivalents at end of period	716.3	$554

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies
	3 Months Ended Dec. 31, 2009 USD / shares
Basis of Presentation and Accounting Policies [Abstract]
Basis of Presentation and Accounting Policies	1. Basis of Presentation and Accounting Policies In the opinion of management of Rockwell Automation, Inc. (the Company or Rockwell Automation), the unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting solely of adjustments of a normal recurring nature, necessary to present fairly the financial position, results of operations, and cash flows for the periods presented. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended September30, 2009. The results of operations for the three-month period ended December31, 2009 are not necessarily indicative of the results for the full year. All date references to years and quarters herein refer to our fiscal year and fiscal quarter unless otherwise stated. We have evaluated subsequent events through the date and time of issuance of these financial statements on February8, 2010. Revenue Product and solution revenues consist of industrial automation power, control, information and custom-engineered hardware and software products and systems. Service revenues include multi-vendor customer technical support and repair, asset management, optimization consulting and training. Cash and Cash Equivalents Cash and cash equivalents include time deposits and certificates of deposit with original maturities of three months or less at the time of purchase. Receivables Receivables are stated net of allowances for doubtful accounts of $23.4million at December31, 2009 and $21.8million at September30, 2009. In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $9.4million at December31, 2009 and $8.8million at September30, 2009. Income Taxes We account for uncertain tax positions in accordance with accounting principles generally accepted in the United States (U.S. GAAP). We determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. For tax positions that meet the more-likely-than-not recognition threshold, we determine the amount of benefit to recognize in the financial statements. At the end of each interim period, we estimate a base effective tax rate that we expect for the full fiscal year based on our most recent forecast of pretax income, permanent book and tax differences and global tax planning strategies. We use this base rate to provide for income taxes on a year-to-date basis, excluding the effect of significant unusual or extraordinary items and items that are reported net of their related tax effects. We record the tax effect of significant unusual or extraordinary items and items that are reported net of their tax effects in the period in which they occur. See Note 13 for further details regarding income taxes. Earnings Per Share Beginning in fiscal 2010, we changed our accounting for earnings per share (EPS)as a result of new accounting guidance issued by the Financial Accounting Standards Board (FASB). The guidance requires unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equi

Share-Based Compensation

Share-Based Compensation
	3 Months Ended Dec. 31, 2009 USD / shares
Share-Based Compensation [Abstract]
Share-Based Compensation	2. Share-Based Compensation We recognized $8.7million and $4.6million in share-based compensation expense in income from continuing operations before income taxes during the three-months ended December31, 2009 and 2008, respectively. Our annual grant of share-based compensation takes place during the first quarter of each fiscal year. The number of all shares granted to employees and non-employee directors and the weighted average fair value per share during the periods presented was (in thousands except per share amounts): Three months ended December 31, 2009 2008 Wtd. Avg. Wtd. Avg. Share Share Grants Fair Value Grants Fair Value Stock options 2,168 $ 13.59 2,766 $ 7.75 Performance shares 146 54.81 192 31.82 Restricted stock and restricted stock units 142 43.50 85 29.37 Unrestricted stock 8 41.85 14 36.69

Inventories

Inventories
	3 Months Ended Dec. 31, 2009 USD / shares
Inventories [Abstract]
Inventories	3.Inventories Inventories consist of (in millions): December 31, September 30, 2009 2009 Finished goods $ 172.1 $ 166.4 Work in process 119.9 109.1 Raw materials, parts, and supplies 176.7 160.9 Inventories $ 468.7 $ 436.4 We report inventories net of the allowance for excess and obsolete inventory of $50.8million at December31, 2009 and $53.2million at September30, 2009.

Property

Property
	3 Months Ended Dec. 31, 2009 USD / shares
Property [Abstract]
Property	4. Property Property consists of (in millions): December 31, September 30, 2009 2009 Land $ 4.8 $ 4.7 Buildings and improvements 275.8 276.7 Machinery and equipment 1,106.6 1,116.4 Internal use software 328.8 324.8 Construction in progress 39.5 36.5 Total 1,755.5 1,759.1 Less accumulated depreciation (1,236.4 ) (1,226.6 ) Property, net $ 519.1 $ 532.5

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	3 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	5.Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill for the three months ended December31, 2009 are (in millions): Control Architecture Products Software Solutions Total Balance as of September30, 2009 $ 386.8 $ 526.4 $ 913.2 Translation and other (0.4 ) (1.7 ) (2.1 ) Balance as of December31, 2009 $ 386.4 $ 524.7 $ 911.1 Other intangible assets consist of (in millions): December 31, 2009 Carrying Accumulated Amount Amortization Net Amortized intangible assets: Computer software products $ 144.9 $ 96.5 $ 48.4 Customer relationships 59.7 12.2 47.5 Technology 84.1 33.6 50.5 Other 33.5 19.5 14.0 Total amortized intangible assets 322.2 161.8 160.4 Intangible assets not subject to amortization 67.3 67.3 Total $ 389.5 $ 161.8 $ 227.7 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 Our Allen-Bradley and ICS TriplexTM trademarks have been determined to 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 perform the annual evaluation of our goodwill and indefinite life intangible assets for impairment as required by U.S. GAAP during the second quarter of each year.

Other Current Liabilities

Other Current Liabilities
	3 Months Ended Dec. 31, 2009 USD / shares
Other Current Liabilities [Abstract]
Other Current Liabilities	6.Other Current Liabilities Other current liabilities consist of (in millions): December 31, September 30, 2009 2009 Unrealized losses on foreign exchange contracts 15.0 19.1 Product warranty obligations 29.2 32.1 Taxes other than income taxes 29.3 30.3 Accrued interest 15.0 15.6 Restructuring and special items 42.1 60.8 Income taxes payable 27.5 Other 66.2 60.7 Other current liabilities $ 224.3 $ 218.6

Product Warranty Obligations

Product Warranty Obligations
	3 Months Ended Dec. 31, 2009 USD / shares
Product Warranty Obligations [Abstract]
Product Warranty Obligations	7. 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 an end-user or OEM customer. We also record a liability for specific warranty matters when they become probable and reasonably estimable. Our product warranty obligations are included in other current liabilities in the Condensed Consolidated Balance Sheet. Changes in the product warranty obligations for the three months ended December31, 2009 and 2008 are (in millions): Three Months Ended December 31, 2009 2008 Balance at beginning of period $ 32.1 $ 33.5 Warranties recorded at time of sale 7.1 9.7 Adjustments to pre-existing warranties (1.2 ) Settlements of warranty claims (8.8 ) (8.9 ) Balance at end of period $ 29.2 $ 34.3

Long-term Debt

Long-term Debt
	3 Months Ended Dec. 31, 2009 USD / shares
Long-term Debt [Abstract]
Long-term Debt	8.Long-term Debt Long-term debt consists of (in millions): December 31, September 30, 2009 2009 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 (45.2 ) (45.3 ) Long-term debt $ 904.8 $ 904.7 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 either of these credit facilities at December31, 2009 or September30, 2009. 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 December31, 2009 and September30, 2009. In addition to our two $267.5million credit facilities, short-term unsecured credit facilities of approximately $141.6million at December31, 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 the three months ended December31, 2009 and 2008 were not significant.

Derivative Instruments and Fair

Derivative Instruments and Fair Value Measurement
	3 Months Ended Dec. 31, 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 value our forward exchange contracts using a market approach. We use an internally developed valuation model based on inputs including forward and spot prices for currency and interest rate curves. We did not change our valuation techniques during the three months ended December31, 2009. The notional values of our forward exchange contracts outstanding at December31, 2009 were $721.7 million, of which $357.6million were designated as cash flow hedges. Contracts with the most significant notional values relate to transactions denominated in the United States dollar, British pound sterling, and euro. 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. Assets and liabilities measured at fair value on a recurring basis and their location in our Condensed Consolidated Balance Sheet were (in millions): Fair Value (Level 2) December 31, September 30, Derivatives Designated as Hedging Instruments Balance Sheet Location 2009 2009 Forward exchange contracts Other current assets $ 2.6 $ 4.1 Forward exchange contracts Other assets 1.4 1.7 Forward exchange contracts Other current liabilities (11.1 ) (12.2 ) Forward exchange contracts Other liabilities (1.6 ) (3.6 ) Total $ (8.7 ) $ (10.0 ) Fair Value (Level 2) December 31, September 30, Derivatives Not Designated as Hedging Instruments Balance Sheet Location 2009 2009 Forward exchange contracts Other

Retirement Benefits

Retirement Benefits
	3 Months Ended Dec. 31, 2009 USD / shares
Retirement Benefits [Abstract]
Retirement Benefits	10.Retirement Benefits The components of net periodic benefit cost in income from continuing operations are (in millions): Pension Benefits Three Months Ended December 31, 2009 2008 Service cost $ 16.5 $ 13.9 Interest cost 40.1 38.4 Expected return on plan assets (48.2 ) (47.5 ) Amortization: Prior service cost (1.0 ) (1.1 ) Net actuarial loss 10.5 4.2 Net periodic benefit cost $ 17.9 $ 7.9 Other Postretirement Benefits Three Months Ended December 31, 2009 2008 Service cost $ 0.9 $ 0.9 Interest cost 3.1 3.3 Amortization: Prior service cost (2.6 ) (2.7 ) Net actuarial loss 2.1 2.4 Net periodic benefit cost $ 3.5 $ 3.9

Comprehensive Income

Comprehensive Income
	3 Months Ended Dec. 31, 2009 USD / shares
Comprehensive Income [Abstract]
Comprehensive Income	11. Comprehensive Income Comprehensive income consists of (in millions): Three Months Ended December 31, 2009 2008 Net income $ 76.6 $ 118.4 Other comprehensive income (loss): Unrecognized pension and postretirement benefit plan liabilities 4.3 1.4 Currency translation adjustments (5.5 ) (121.0 ) Net unrealized gains on cash flow hedges 1.9 13.4 Other (0.2 ) Other comprehensive income (loss) 0.7 (106.4 ) Comprehensive income $ 77.3 $ 12.0

Commitments and Contingent Liab

Commitments and Contingent Liabilities
	3 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingent Liabilities [Abstract]
Commitments and Contingent Liabilities	12. Commitments and Contingent Liabilities Various lawsuits, claims and proceedings have been or may be instituted or asserted against us relating to the conduct of our business, including those pertaining to product liability, environmental, safety and health, intellectual property, employment and contract matters. Although the outcome of litigation cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to us, we believe the disposition of matters that are pending or have been asserted will not have a material adverse effect on our business or financial condition. We (including our subsidiaries) have been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos that was used in certain components of our products many years ago. Currently there are thousands of claimants in lawsuits that name us as defendants, together with hundreds of other companies. In some cases, the claims involve products from divested businesses, and we are indemnified for most of the costs. However, we have agreed to defend and indemnify asbestos claims associated with products manufactured or sold by our former Dodge mechanical and Reliance Electric motors and motor repair services businesses prior to their divestiture by us, which occurred on January31, 2007. We are also responsible for half of the costs and liabilities associated with asbestos cases against the former Rockwell International Corporations (RICs) divested measurement and flow control business. But in all cases, for those claimants who do show that they worked with our products or products of divested businesses for which we are responsible, we nevertheless believe we have meritorious defenses, in substantial part due to the integrity of the products, the encapsulated nature of any asbestos-containing components, and the lack of any impairing medical condition on the part of many claimants. We defend those cases vigorously. Historically, we have been dismissed from the vast majority of these claims with no payment to claimants. We have maintained insurance coverage that we believe covers indemnity and defense costs, over and above self-insured retentions, for claims arising from our former Allen-Bradley subsidiary. Following litigation against Nationwide Indemnity Company and Kemper Insurance, the insurance carriers that provided liability insurance coverage to Allen-Bradley, we entered into separate agreements on April1, 2008 with both insurance carriers to further resolve responsibility for ongoing and future coverage of Allen-Bradley asbestos claims. In exchange for a lump sum payment, Kemper bought out its remaining liability and has been released from further insurance obligations to Allen-Bradley. Nationwide administers the Kemper buy-out funds and has entered into a cost share agreement to pay the substantial majority of future defense and indemnity costs for Allen-Bradley asbestos claims once the Kemper buy-out funds are depleted. We believe that these arrangements will continue to provide coverage for Allen-Bradley asbestos claims throughout the remaining life of the asbestos liability.

Income Taxes

Income Taxes
	3 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	13. Income Taxes The effective tax rate for the quarter ended December31, 2009 was 20.0percent. The effective tax rate was lower than the U.S. statutory tax rate of 35percent because we benefited from lower non-U.S. tax rates and the utilization of foreign tax credits. During the first quarter of 2010, we recognized a tax benefit of $4.7million related to the favorable resolution of domestic and non-U.S. tax matters, partially offset by a discrete tax expense of $3.5million related to the impact of a change in Mexican tax law. Gross unrecognized tax benefits and offsetting tax benefits were (in millions): December 31, 2009 Gross Unrecognized Offsetting Tax Benefits Tax Benefits Net Amounts that would reduce tax provision: Continuing operations $ 79.7 $ (43.8 ) $ 35.9 Discontinued operations 30.9 (4.5 ) 26.4 Total $ 110.6 $ (48.3 ) $ 62.3 September 30, 2009 Gross Unrecognized Offsetting Tax Benefits Tax Benefits Net Amounts that would reduce tax provision: Continuing operations $ 85.2 $ (44.3 ) $ 40.9 Discontinued operations 31.5 (4.8 ) 26.7 Total $ 116.7 $ (49.1 ) $ 67.6 There was no material change of the amount of unrecognized tax benefits in the first three months of 2010. During the second quarter of 2010, we anticipate that the amount of unrecognized tax benefits will decrease by approximately $28.0million ($26.9million net of offsetting tax benefits) as a result of the resolution of domestic and international tax matters. Of that amount, $21.1million ($20.0million net of offsetting tax benefits) is related to the January2007 sale of our Dodge mechanical and Reliance Electric motors and repair services businesses and thus will not impact continuing operations. In addition, we believe it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to $7.0million and the amount of offsetting tax benefits could increase by up to $1.0million during the next 12months as a result of the resolution of worldwide tax matters and the lapses of statutes of limitations. We recognize interest and penalties related to tax matters in tax expense. Accrued interest and penalties were $26.8million and $1.8million at December31, 2009 and $25.8million and $1.8 million at September30, 2009, respectively. We conduct business globally and are routinely audited by the various tax jurisdictions in which we operate. Our U.S. federal tax returns for 2007 through 2009, Wisconsin tax returns for 2006 through 2009, and tax returns for other major states and foreign jurisdictions for 1998 through 2009 remain subject to examinations by taxing authorities.

Restructuring Charges and Speci

Restructuring Charges and Special Items
	3 Months Ended Dec. 31, 2009 USD / shares
Restructuring Charges and Special Items [Abstract]
Restructuring Charges and Special Items	14. Restructuring Charges and Special Items In the three months ended December31, 2009 and 2008, we paid $7.4million and $15.4million, respectively, related to restructuring actions expensed in prior years. Accruals remaining related to our restructuring actions were $42.1million at December31, 2009.

Business Segment Information

Business Segment Information
	3 Months Ended Dec. 31, 2009 USD / shares
Business Segment Information [Abstract]
Business Segment Information	15.Business Segment Information The following tables reflect the sales and operating results of our reportable segments (in millions): Three Months Ended December 31, 2009 2008 Sales Architecture Software $ 469.0 $ 506.4 Control Products Solutions 598.5 682.8 Total $ 1,067.5 $ 1,189.2 Segment operating earnings Architecture Software $ 99.0 $ 109.6 Control Products Solutions 37.8 68.0 Total 136.8 177.6 Purchase accounting depreciation and amortization (4.6 ) (5.0 ) General corporate net (19.5 ) (18.1 ) Interest expense (15.4 ) (15.0 ) Income tax provision (19.5 ) (23.9 ) Income from continuing operations $ 77.8 $ 115.6 Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before income taxes, interest expense, costs related to corporate offices, certain nonrecurring corporate initiatives, gains and losses from the disposition of businesses and incremental acquisition related expenses resulting from purchase accounting adjustments such as intangible asset amortization, depreciation, inventory and purchased research and development charges. Depending on the product, intersegment sales that are within a single legal entity are either at cost or cost plus a mark-up, which does not necessarily represent a market price. Sales between legal entities are at an appropriate transfer price. We allocate costs related to shared segment operating activities to the segments using a methodology consistent with the expected benefit. In the United States and Canada, we sell our products primarily through independent distributors. We sell large systems and service offerings principally through a direct sales force, though opportunities are sometimes identified through distributors. Outside the United States and Canada, we sell products through a combination of direct sales and sales through distributors. Sales to our largest distributor in the first quarter of 2010 and 2009 were approximately 10percent of our total sales.

Discontinued Operations

Discontinued Operations
	3 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations [Abstract]
Discontinued Operations	16. Discontinued Operations In the first quarter of 2010, we recorded a $2.0million ($1.2million after tax) accrual relating to an environmental matter of a discontinued business. In the first quarter of 2009, we recorded a benefit of $4.5million ($2.8million net of tax) related to a change in estimate for legal contingencies associated with RICs operation of the Rocky Flats facility for the U.S. Department of Energy.