Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Dec. 31, 2014 | |
Document Information [Line Items] | |
Entity Registrant Name | ROCKWELL AUTOMATION INC. |
Entity Central Index Key | 1024478 |
Document Type | 10-Q |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | -21 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 135,444,053 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheet (Unaudited) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,291.90 | $1,191.30 |
Short-term investments | 620.8 | 628.5 |
Receivables | 1,106.70 | 1,215.80 |
Inventories | 593.5 | 588.4 |
Deferred income taxes | 158.3 | 163.5 |
Other current assets | 161.3 | 146.7 |
Total current assets | 3,932.50 | 3,934.20 |
Property, net of accumulated depreciation of $1,257.4 and $1,255.5, respectively | 612.4 | 632.9 |
Goodwill | 1,046.70 | 1,050.60 |
Other intangible assets, net | 250.3 | 246.2 |
Deferred income taxes | 198.3 | 205.7 |
Other assets | 161.8 | 159.9 |
Total | 6,202 | 6,229.50 |
Current liabilities: | ||
Short-term debt | 508 | 325 |
Accounts payable | 479.6 | 520.6 |
Compensation and benefits | 172.5 | 277.7 |
Advance payments from customers and deferred revenue | 198.8 | 196.5 |
Customer returns, rebates and incentives | 172.6 | 184 |
Other current liabilities | 239.3 | 188.3 |
Total current liabilities | 1,770.80 | 1,692.10 |
Long-term debt | 905.6 | 905.6 |
Retirement benefits | 753 | 767.9 |
Other liabilities | 203.5 | 205.8 |
Commitments and contingent liabilities (Note 11) | ||
Shareowners' equity: | ||
Common stock ($1.00 par value, shares issued: 181.4) | 181.4 | 181.4 |
Additional paid-in capital | 1,514.10 | 1,512.30 |
Retained earnings | 4,965.70 | 4,839.60 |
Accumulated other comprehensive loss | -1,015.90 | -948 |
Common stock in treasury, at cost (shares held: December 31, 2014, 45.9; September 30, 2014, 44.7) | -3,076.20 | -2,927.20 |
Total shareowners' equity | 2,569.10 | 2,658.10 |
Total | $6,202 | $6,229.50 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, except Per Share data, unless otherwise specified | ||
Accumulated depreciation | $1,257.40 | $1,255.50 |
Common stock, par value per share | $1 | $1 |
Common stock, shares issued | 181.4 | 181.4 |
Treasury stock, shares | 45.9 | 44.7 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statement of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Sales | ||
Products and solutions | $1,409.80 | $1,422.30 |
Services | 164.6 | 169.4 |
Total sales | 1,574.40 | 1,591.70 |
Cost of sales | ||
Products and solutions | -776.8 | -810.4 |
Services | -110.1 | -117.6 |
Total cost of sales | -886.9 | -928 |
Gross profit | 687.5 | 663.7 |
Selling, general and administrative expenses | -386.9 | -385.4 |
Other income | 1.8 | 9.4 |
Interest expense | -14.9 | -14.9 |
Income before income taxes | 287.5 | 272.8 |
Income tax provision | -73.3 | -74.7 |
Net income | $214.20 | $198.10 |
Earnings Per Share, Basic [Abstract] | ||
Basic | $1.58 | $1.43 |
Earnings Per Share, Diluted [Abstract] | ||
Diluted | $1.56 | $1.41 |
Cash dividends per share | $0.65 | $0.58 |
Weighted average outstanding shares: | ||
Basic | 135.6 | 138.6 |
Diluted | 136.9 | 140.4 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Comprehensive income | ||
Net income | $214.20 | $198.10 |
Other comprehensive income (loss), net of tax: | ||
Pension and other postretirement benefit plan adjustments (net of tax expense of $9.2 and $7.8) | 17.6 | 14.6 |
Currency translation adjustments | -92.9 | 9.2 |
Net change in unrealized gains and losses on cash flow hedges (net of tax (benefit) expense of ($1.1) and $0.4) | 7.4 | 0.7 |
Other comprehensive (loss) income | -67.9 | 24.5 |
Comprehensive income | $146.30 | $222.60 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Comprehensive Income (Parenthetical) [Abstract] | ||
Tax expense from pension and other postretirement benefit plan adjustments | $9.20 | $7.80 |
Tax (benefit) expense from net change in unrealized gains and losses on cash flow hedges | ($1.10) | $0.40 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating activities: | ||
Net income | $214.20 | $198.10 |
Adjustments to arrive at cash provided by operating activities: | ||
Depreciation | 33.9 | 28.4 |
Amortization of intangible assets | 6.7 | 7.5 |
Share-based compensation expense | 10.8 | 11.5 |
Retirement benefit expense | 36.1 | 33.3 |
Pension contributions | -8.6 | -11.2 |
Net loss on disposition of property | 0.2 | 0 |
Excess income tax benefit from share-based compensation | -4.4 | -10.7 |
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments: | ||
Receivables | 73.2 | 27.4 |
Inventories | -24.3 | -33.6 |
Accounts payable | -10.4 | -18.3 |
Advance payments from customers and deferred revenue | 7.5 | 13.1 |
Compensation and benefits | -99.2 | -67.6 |
Income taxes | 46.9 | 27.6 |
Other assets and liabilities | -14.4 | -2 |
Cash provided by operating activities | 268.2 | 203.5 |
Investing activities: | ||
Capital expenditures | -40 | -35.6 |
Acquisition of business, net of cash acquired | -21.2 | -68.1 |
Purchases of short-term investments | -171.6 | -87.5 |
Proceeds from maturities of short-term investments | 175.7 | 95.5 |
Proceeds from sale of property | 0.1 | 0.2 |
Other investing activities | 0 | -3.4 |
Cash used for investing activities | -57 | -98.9 |
Financing activities: | ||
Net issuance of short-term debt | 183 | 72 |
Cash dividends | -88.1 | -80.5 |
Purchases of treasury stock | -168.4 | -110 |
Proceeds from the exercise of stock options | 4.7 | 48.1 |
Excess income tax benefit from share-based compensation | 4.4 | 10.7 |
Cash used for financing activities | -64.4 | -59.7 |
Effect of exchange rate changes on cash | -46.2 | 0.2 |
Increase in cash and cash equivalents | 100.6 | 45.1 |
Cash and cash equivalents at beginning of period | 1,191.30 | 1,200.90 |
Cash and cash equivalents at end of period | $1,291.90 | $1,246 |
Basis_of_Presentation_and_Acco
Basis of Presentation and Accounting Policies | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Basis of Presentation and Accounting Policies | 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 necessary to present fairly the financial position, results of operations and cash flows for the periods presented and, except as otherwise indicated, such adjustments consist only of those of a normal recurring nature. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended September 30, 2014. The results of operations for the three month period ended December 31, 2014 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. | ||||||||
Receivables | ||||||||
Receivables are stated net of an allowance for doubtful accounts of $21.4 million at December 31, 2014 and $19.4 million at September 30, 2014. In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $8.8 million at December 31, 2014 and $11.6 million at September 30, 2014. | ||||||||
Earnings Per Share | ||||||||
The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts): | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 214.2 | $ | 198.1 | ||||
Less: Allocation to participating securities | (0.3 | ) | (0.3 | ) | ||||
Net income available to common shareowners | $ | 213.9 | $ | 197.8 | ||||
Basic weighted average outstanding shares | 135.6 | 138.6 | ||||||
Effect of dilutive securities | ||||||||
Stock options | 1.2 | 1.6 | ||||||
Performance shares | 0.1 | 0.2 | ||||||
Diluted weighted average outstanding shares | 136.9 | 140.4 | ||||||
Earnings per share: | ||||||||
Basic | $ | 1.58 | $ | 1.43 | ||||
Diluted | $ | 1.56 | $ | 1.41 | ||||
For the three months ended December 31, 2014, share-based compensation awards for 1.7 million shares were excluded from the diluted EPS calculation because they were antidilutive. For the three months ended December 31, 2013, share-based compensation awards for 0.9 million shares were excluded from the diluted EPS calculation because they were antidilutive. | ||||||||
Recent Accounting Pronouncements | ||||||||
In May 2014, the FASB issued a new standard on revenue recognition from contracts with customers. This standard supersedes nearly all existing revenue recognition guidance and involves a five-step approach to recognizing revenue based on individual performance obligations in a contract. The new standard will also require additional qualitative and quantitative disclosures about contracts with customers, significant judgments made in applying the revenue guidance, and assets recognized from the costs to obtain or fulfill a contract. This guidance is effective for us for reporting periods beginning October 1, 2017. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements and related disclosures. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Share-Based Compensation | Share-Based Compensation | |||||||||||||
We recognized $10.8 million and $11.5 million of pre-tax share-based compensation expense during the three months ended December 31, 2014 and 2013, respectively. Our annual grant of share-based compensation takes place during the first quarter of each fiscal year. The number of shares granted to employees and non-employee directors and the weighted average fair value per share during the periods presented were (in thousands except per share amounts): | ||||||||||||||
Three Months Ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Grants | Wtd. Avg. | Grants | Wtd. Avg. | |||||||||||
Share | Share | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Stock options | 1,032 | $ | 26.7 | 925 | $ | 33.96 | ||||||||
Performance shares | 87 | 103.7 | 69 | 108.48 | ||||||||||
Restricted stock and restricted stock units | 47 | 115.29 | 48 | 108.88 | ||||||||||
Unrestricted stock | 4 | 109.39 | 6 | 107.96 | ||||||||||
Inventories
Inventories | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consist of (in millions): | ||||||||
December 31, | September 30, | |||||||
2014 | 2014 | |||||||
Finished goods | $ | 250.3 | $ | 240.3 | ||||
Work in process | 154.8 | 156.9 | ||||||
Raw materials, parts and supplies | 188.4 | 191.2 | ||||||
Inventories | $ | 593.5 | $ | 588.4 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||
Changes in the carrying amount of goodwill for the three months ended December 31, 2014 are (in millions): | ||||||||||||
Architecture & | Control | Total | ||||||||||
Software | Products & | |||||||||||
Solutions | ||||||||||||
Balance as of September 30, 2014 | $ | 395.6 | $ | 655 | $ | 1,050.60 | ||||||
Acquisition of business | — | 14.9 | 14.9 | |||||||||
Translation and other | (4.6 | ) | (14.2 | ) | (18.8 | ) | ||||||
Balance as of December 31, 2014 | $ | 391 | $ | 655.7 | $ | 1,046.70 | ||||||
During the three months ended December 31, 2014, we recognized goodwill of $14.9 million and intangible assets of $5.4 million resulting from the acquisition of the assets of ESC Services, Inc., a global provider of lockout-tagout services and solutions. We assigned the full amount of goodwill related to ESC Services, Inc. to our Control Products & Solutions segment. | ||||||||||||
Other intangible assets consist of (in millions): | ||||||||||||
December 31, 2014 | ||||||||||||
Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Amortized intangible assets: | ||||||||||||
Computer software products | $ | 176.7 | $ | 84.1 | $ | 92.6 | ||||||
Customer relationships | 90.1 | 45.5 | 44.6 | |||||||||
Technology | 83.9 | 39.1 | 44.8 | |||||||||
Trademarks | 32.9 | 14.2 | 18.7 | |||||||||
Other | 15.5 | 9.6 | 5.9 | |||||||||
Total amortized intangible assets | 399.1 | 192.5 | 206.6 | |||||||||
Intangible assets not subject to amortization | 43.7 | — | 43.7 | |||||||||
Total | $ | 442.8 | $ | 192.5 | $ | 250.3 | ||||||
September 30, 2014 | ||||||||||||
Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Amortized intangible assets: | ||||||||||||
Computer software products | $ | 169.1 | $ | 82.5 | $ | 86.6 | ||||||
Customer relationships | 89.8 | 45.4 | 44.4 | |||||||||
Technology | 84 | 38.2 | 45.8 | |||||||||
Trademarks | 33.7 | 14 | 19.7 | |||||||||
Other | 15.5 | 9.5 | 6 | |||||||||
Total amortized intangible assets | 392.1 | 189.6 | 202.5 | |||||||||
Intangible assets not subject to amortization | 43.7 | — | 43.7 | |||||||||
Total | $ | 435.8 | $ | 189.6 | $ | 246.2 | ||||||
The Allen-Bradley® trademark has an indefinite life, and therefore is not subject to amortization. | ||||||||||||
Estimated amortization expense is $31.3 million in 2015, $34.8 million in 2016, $30.7 million in 2017, $24.7 million in 2018 and $18.8 million in 2019. | ||||||||||||
We perform the annual evaluation of our goodwill and indefinite life intangible assets for impairment as required by accounting principles generally accepted in the United States (U.S. GAAP) during the second quarter of each year. We did not identify any impairment indicators during the first quarter of fiscal 2015 that would require further impairment analysis. |
Shortterm_Debt
Short-term Debt | 3 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Short-term Debt | Short-term Debt |
Our short-term debt obligations are primarily comprised of commercial paper borrowings. Commercial paper borrowings outstanding were $508.0 million at December 31, 2014 and $325.0 million at September 30, 2014. The weighted average interest rate of the commercial paper outstanding was 0.25 percent and 0.17 percent at December 31, 2014 and September 30, 2014, respectively. |
Other_Current_Liabilities
Other Current Liabilities | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Other Current Liabilities | Other Current Liabilities | |||||||
Other current liabilities consist of (in millions): | ||||||||
December 31, | September 30, | |||||||
2014 | 2014 | |||||||
Unrealized losses on foreign exchange contracts | $ | 12.1 | $ | 5.8 | ||||
Product warranty obligations | 33.6 | 34.1 | ||||||
Taxes other than income taxes | 35.1 | 37.2 | ||||||
Accrued interest | 15 | 15.6 | ||||||
Income taxes payable | 85.6 | 41 | ||||||
Other | 57.9 | 54.6 | ||||||
Other current liabilities | $ | 239.3 | $ | 188.3 | ||||
Product_Warranty_Obligations
Product Warranty Obligations | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Product Warranty Obligations | 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 installation. 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 product warranty obligations for the three months ended December 31, 2014 and 2013 are (in millions): | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Balance at beginning of period | $ | 34.1 | $ | 36.9 | ||||
Accruals for warranties issued during the current period | 6.9 | 7.7 | ||||||
Adjustments to pre-existing warranties | 0.5 | — | ||||||
Settlements of warranty claims | (7.9 | ) | (8.0 | ) | ||||
Balance at end of period | $ | 33.6 | $ | 36.6 | ||||
Derivative_Instruments_and_Fai
Derivative Instruments and Fair Value Measurement | 3 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Derivative Instruments and Fair Value Measurement | 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 hedge our exposure to foreign currency exchange rate variability in the expected future cash flows associated with certain third-party and intercompany transactions denominated in foreign currencies forecasted 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 a 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 December 31, 2014. The notional values of our forward exchange contracts outstanding at December 31, 2014 were $914.6 million, of which $692.5 million were designated as cash flow hedges. Currency pairs (buy/sell) comprising the most significant contract notional values were United States dollar (USD)/euro, USD/Canadian dollar, Swiss franc/euro, Mexican peso/USD, Singapore dollar/USD, and Swiss franc/Canadian dollar. | ||||||||||||||||||||
We also use foreign currency denominated debt obligations to hedge portions of our net investments in non-U.S. subsidiaries. The currency effects of the debt obligations are reflected in accumulated other comprehensive loss within shareowners’ equity where they offset gains and losses recorded on our net investments globally. At December 31, 2014, we had $14.0 million of foreign currency denominated debt designated as net investment hedges. | ||||||||||||||||||||
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) | ||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | December 31, | September 30, | |||||||||||||||||
2014 | 2014 | |||||||||||||||||||
Forward exchange contracts | Other current assets | $ | 24.2 | $ | 13.1 | |||||||||||||||
Forward exchange contracts | Other assets | 7.1 | 5 | |||||||||||||||||
Forward exchange contracts | Other current liabilities | (9.7 | ) | (4.1 | ) | |||||||||||||||
Forward exchange contracts | Other liabilities | (1.1 | ) | (0.3 | ) | |||||||||||||||
Total | $ | 20.5 | $ | 13.7 | ||||||||||||||||
Fair Value (Level 2) | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | December 31, | September 30, | |||||||||||||||||
2014 | 2014 | |||||||||||||||||||
Forward exchange contracts | Other current assets | $ | 4.5 | $ | 3.5 | |||||||||||||||
Forward exchange contracts | Other current liabilities | (2.4 | ) | (1.8 | ) | |||||||||||||||
Total | $ | 2.1 | $ | 1.7 | ||||||||||||||||
The pre-tax amount of gains (losses) recorded in other comprehensive income related to hedges that would have been recorded in the Condensed Consolidated Statement of Operations had they not been so designated was (in millions): | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Forward exchange contracts (cash flow hedges) | $ | 10.9 | $ | 1.6 | ||||||||||||||||
Foreign currency denominated debt (net investment hedges) | 0.7 | (0.3 | ) | |||||||||||||||||
Total | $ | 11.6 | $ | 1.3 | ||||||||||||||||
Approximately $14.6 million ($15.2 million after tax) of net unrealized gains on cash flow hedges as of December 31, 2014 will be reclassified into earnings during the next 12 months. We expect that these net unrealized gains will be offset when the hedged items are recognized in earnings. | ||||||||||||||||||||
The pre-tax amount of (losses) gains reclassified from accumulated other comprehensive loss into the Condensed Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges, which offset the related gains and losses on the hedged items during the periods presented, was: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Sales | $ | (1.2 | ) | $ | (0.2 | ) | ||||||||||||||
Cost of sales | 5.8 | 0.7 | ||||||||||||||||||
Total | $ | 4.6 | $ | 0.5 | ||||||||||||||||
The amount recognized in earnings as a result of ineffective hedges was not significant. | ||||||||||||||||||||
The pre-tax amount of gains from forward exchange contracts not designated as hedging instruments recognized in the Condensed Consolidated Statement of Operations during the periods presented was: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Other income | $ | 1.6 | $ | 3.9 | ||||||||||||||||
We also hold financial instruments consisting of cash, short-term investments, short-term debt and long-term debt. The fair values of our cash, short-term investments and short-term debt approximate their carrying amounts as reported in our Condensed Consolidated Balance Sheet due to the short-term nature of these instruments. We base the fair value of long-term debt upon quoted market prices for the same or similar issues. The following table presents the carrying amounts and estimated fair values of financial instruments not measured at fair value in the Condensed Consolidated Balance Sheet (in millions): | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Carrying Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Cash and cash equivalents | $ | 1,291.90 | $ | 1,291.90 | $ | 1,254.80 | $ | 37.1 | $ | — | ||||||||||
Short-term investments | 620.8 | 620.8 | — | 620.8 | — | |||||||||||||||
Short-term debt | 508 | 508 | — | 508 | — | |||||||||||||||
Long-term debt | 905.6 | 1,164.50 | — | 1,164.50 | — | |||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Carrying Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Cash and cash equivalents | $ | 1,191.30 | $ | 1,191.30 | $ | 1,154.20 | $ | 37.1 | $ | — | ||||||||||
Short-term investments | 628.5 | 628.5 | — | 628.5 | — | |||||||||||||||
Short-term debt | 325 | 325 | — | 325 | — | |||||||||||||||
Long-term debt | 905.6 | 1,119.40 | — | 1,119.40 | — | |||||||||||||||
Retirement_Benefits
Retirement Benefits | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Retirement Benefits | Retirement Benefits | |||||||
The components of net periodic benefit cost are (in millions): | ||||||||
Pension Benefits | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Service cost | $ | 21.7 | $ | 19.7 | ||||
Interest cost | 42.3 | 43.6 | ||||||
Expected return on plan assets | (56.1 | ) | (54.5 | ) | ||||
Amortization: | ||||||||
Prior service credit | (0.7 | ) | (0.7 | ) | ||||
Net actuarial loss | 30 | 24.9 | ||||||
Net periodic benefit cost | $ | 37.2 | $ | 33 | ||||
Other Postretirement Benefits | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Service cost | $ | 0.4 | $ | 0.5 | ||||
Interest cost | 1 | 1.6 | ||||||
Amortization: | ||||||||
Prior service credit | (3.7 | ) | (2.5 | ) | ||||
Net actuarial loss | 1.2 | 0.7 | ||||||
Net periodic benefit cost | $ | (1.1 | ) | $ | 0.3 | |||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||||||||||
Changes in accumulated other comprehensive loss by component were (in millions): | ||||||||||||||||
Pension and other postretirement benefit plan adjustments, | Accumulated currency translation adjustments, | Net unrealized gains (losses) on cash flow hedges, net of tax | Total accumulated other comprehensive loss, net of tax | |||||||||||||
net of tax | net of tax | |||||||||||||||
Balance as of September 30, 2014 | $ | (909.4 | ) | $ | (52.5 | ) | $ | 13.9 | $ | (948.0 | ) | |||||
Other comprehensive (loss) income before reclassifications | — | (92.9 | ) | 12.2 | (80.7 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 17.6 | — | (4.8 | ) | 12.8 | |||||||||||
Other comprehensive income (loss) | 17.6 | (92.9 | ) | 7.4 | (67.9 | ) | ||||||||||
Balance as of December 31, 2014 | $ | (891.8 | ) | $ | (145.4 | ) | $ | 21.3 | $ | (1,015.9 | ) | |||||
Pension and other postretirement benefit plan adjustments, | Accumulated currency translation adjustments, | Net unrealized gains (losses) on cash flow hedges, net of tax | Total accumulated other comprehensive loss, net of tax | |||||||||||||
net of tax | net of tax | |||||||||||||||
Balance as of September 30, 2013 | $ | (823.8 | ) | $ | 8.8 | $ | (2.7 | ) | $ | (817.7 | ) | |||||
Other comprehensive income before reclassifications | — | 9.2 | 1 | 10.2 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 14.6 | — | (0.3 | ) | 14.3 | |||||||||||
Other comprehensive income | 14.6 | 9.2 | 0.7 | 24.5 | ||||||||||||
Balance as of December 31, 2013 | $ | (809.2 | ) | $ | 18 | $ | (2.0 | ) | $ | (793.2 | ) | |||||
The reclassifications out of accumulated other comprehensive loss to the Consolidated Statement of Operations were (in millions): | ||||||||||||||||
Three Months Ended | Affected Line in the Consolidated Statement of Operations | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Pension and other postretirement benefit plan adjustments: | ||||||||||||||||
Amortization of prior service credit | $ | (4.4 | ) | $ | (3.2 | ) | (a) | |||||||||
Amortization of net actuarial loss | 31.2 | 25.6 | (a) | |||||||||||||
26.8 | 22.4 | Total before tax | ||||||||||||||
(9.2 | ) | (7.8 | ) | Provision for tax | ||||||||||||
$ | 17.6 | $ | 14.6 | After tax | ||||||||||||
Net unrealized losses (gains) on cash flow hedges: | ||||||||||||||||
Forward exchange contracts | $ | 1.2 | $ | 0.2 | Sales | |||||||||||
Forward exchange contracts | (5.8 | ) | (0.7 | ) | Cost of Sales | |||||||||||
(4.6 | ) | (0.5 | ) | Total before tax | ||||||||||||
(0.2 | ) | 0.2 | Provision for tax | |||||||||||||
$ | (4.8 | ) | $ | (0.3 | ) | After tax | ||||||||||
Total reclassifications | $ | 12.8 | $ | 14.3 | After tax | |||||||||||
(a) Reclassified from accumulated other comprehensive loss into cost of sales and selling, general and administrative expenses. These components are included in the computation of net periodic benefit costs. See Note 9 for further information. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 3 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 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 effect on our business, financial condition or results of operations. | |
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 a few thousand 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 January 31, 2007. We are also responsible for half of the costs and liabilities associated with asbestos cases against the former Rockwell International Corporation’s (RIC’s) 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. Our insurance carrier entered into a cost share agreement with us to pay the substantial majority of future defense and indemnity costs for Allen-Bradley asbestos claims. We believe that this arrangement will continue to provide coverage for Allen-Bradley asbestos claims throughout the remaining life of the asbestos liability. | |
The uncertainties of asbestos claim litigation make it difficult to predict accurately the ultimate outcome of asbestos claims. That uncertainty is increased by the possibility of adverse rulings or new legislation affecting asbestos claim litigation or the settlement process. Subject to these uncertainties and based on our experience defending asbestos claims, we do not believe these lawsuits will have a material effect on our financial condition or results of operations. | |
We have, from time to time, divested certain of our businesses. In connection with these divestitures, certain lawsuits, claims and proceedings may be instituted or asserted against us related to the period that we owned the businesses, either because we agreed to retain certain liabilities related to these periods or because such liabilities fall upon us by operation of law. In some instances, the divested business has assumed the liabilities; however, it is possible that we might be responsible to satisfy those liabilities if the divested business is unable to do so. | |
In connection with the spin-offs of our former automotive component systems business, semiconductor systems business and Rockwell Collins avionics and communications business, the spun-off companies have agreed to indemnify us for substantially all contingent liabilities related to the respective businesses, including environmental and intellectual property matters. | |
In connection with the sale of our Dodge mechanical and Reliance Electric motors and motor repair services businesses, we agreed to indemnify Baldor Electric Company for costs and damages related to certain legal, legacy environmental and asbestos matters of these businesses arising before January 31, 2007, for which the maximum exposure would be capped at the amount received for the sale. | |
In many countries we provide a limited intellectual property indemnity as part of our terms and conditions of sale. We also at times provide limited intellectual property indemnities in other contracts with third parties, such as contracts concerning the development and manufacture of our products. As of December 31, 2014, we were not aware of any material indemnification claims that were probable or reasonably possible of an unfavorable outcome. Historically, claims that have been made under the indemnification agreements have not had a material impact on our operating results, financial position or cash flows; however, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
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 pre-tax 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. | |
The effective tax rate was 25.5 percent and 27.4 percent in the three months ended December 31, 2014 and 2013, respectively. The effective tax rate was lower than the U.S. statutory rate of 35 percent in each period primarily because we benefited from lower non-U.S. tax rates. | |
The amount of gross unrecognized tax benefits was $41.1 million and $38.9 million at December 31, 2014 and September 30, 2014, respectively, of which the entire amount would reduce our effective tax rate if recognized. | |
Accrued interest and penalties related to unrecognized tax benefits were $5.8 million and $8.1 million at December 31, 2014 and September 30, 2014, respectively. We recognize interest and penalties related to unrecognized tax benefits in the income tax provision. | |
If the unrecognized tax benefits were recognized, the net reduction to our income tax provision, including the recognition of interest and penalties and offsetting tax assets, would be $22.6 million as of December 31, 2014. | |
There was no material change in the amount of unrecognized tax benefits in the three months ended December 31, 2014. We believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $20.2 million in the next 12 months as a result of the resolution of tax matters in various global jurisdictions and the lapses of statutes of limitations. If all of the unrecognized tax benefits were recognized, the net reduction to our income tax provision, including the recognition of interest and penalties and offsetting tax assets, could be up to $3.0 million. | |
We conduct business globally and are routinely audited by the various tax jurisdictions in which we operate. We are no longer subject to U.S. federal income tax examinations for years before 2012 and are no longer subject to state, local and foreign income tax examinations for years before 2003. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ||||||||
Business Segment Information | Business Segment Information | |||||||
The following tables reflect the sales and operating results of our reportable segments (in millions): | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Sales | ||||||||
Architecture & Software | $ | 707.8 | $ | 695.9 | ||||
Control Products & Solutions | 866.6 | 895.8 | ||||||
Total | $ | 1,574.40 | $ | 1,591.70 | ||||
Segment operating earnings | ||||||||
Architecture & Software | $ | 221.4 | $ | 211.9 | ||||
Control Products & Solutions | 125.4 | 116.1 | ||||||
Total | 346.8 | 328 | ||||||
Purchase accounting depreciation and amortization | (5.4 | ) | (4.6 | ) | ||||
General corporate – net | (22.8 | ) | (21.7 | ) | ||||
Non-operating pension costs | (16.2 | ) | (14.0 | ) | ||||
Interest expense | (14.9 | ) | (14.9 | ) | ||||
Income before income taxes | $ | 287.5 | $ | 272.8 | ||||
Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before income taxes, interest expense, costs related to corporate offices, non-operating pension costs, certain nonrecurring corporate initiatives, gains and losses from the disposition of businesses and purchase accounting depreciation and amortization. Depending on the product, intersegment sales 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. |
Basis_of_Presentation_and_Acco1
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Receivables | Receivables | |
Receivables are stated net of an allowance for doubtful accounts of $21.4 million at December 31, 2014 and $19.4 million at September 30, 2014. In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $8.8 million at December 31, 2014 and $11.6 million at September 30, 2014. | ||
Recent accounting pronouncements | Recent Accounting Pronouncements | |
In May 2014, the FASB issued a new standard on revenue recognition from contracts with customers. This standard supersedes nearly all existing revenue recognition guidance and involves a five-step approach to recognizing revenue based on individual performance obligations in a contract. The new standard will also require additional qualitative and quantitative disclosures about contracts with customers, significant judgments made in applying the revenue guidance, and assets recognized from the costs to obtain or fulfill a contract. This guidance is effective for us for reporting periods beginning October 1, 2017. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements and related disclosures. | ||
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 installation. 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. | |
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 hedge our exposure to foreign currency exchange rate variability in the expected future cash flows associated with certain third-party and intercompany transactions denominated in foreign currencies forecasted 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 a 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 December 31, 2014. The notional values of our forward exchange contracts outstanding at December 31, 2014 were $914.6 million, of which $692.5 million were designated as cash flow hedges. Currency pairs (buy/sell) comprising the most significant contract notional values were United States dollar (USD)/euro, USD/Canadian dollar, Swiss franc/euro, Mexican peso/USD, Singapore dollar/USD, and Swiss franc/Canadian dollar. | ||
We also use foreign currency denominated debt obligations to hedge portions of our net investments in non-U.S. subsidiaries. The currency effects of the debt obligations are reflected in accumulated other comprehensive loss within shareowners’ equity where they offset gains and losses recorded on our net investments globally. At December 31, 2014, we had $14.0 million of foreign currency denominated debt designated as net investment hedges. | ||
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. | |
Fair value measurement of non-derivative instruments | We also hold financial instruments consisting of cash, short-term investments, short-term debt and long-term debt. The fair values of our cash, short-term investments and short-term debt approximate their carrying amounts as reported in our Condensed Consolidated Balance Sheet due to the short-term nature of these instruments. | |
Income Taxes | 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 pre-tax 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. |
Basis_of_Presentation_and_Acco2
Basis of Presentation and Accounting Policies (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts): | |||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 214.2 | $ | 198.1 | ||||
Less: Allocation to participating securities | (0.3 | ) | (0.3 | ) | ||||
Net income available to common shareowners | $ | 213.9 | $ | 197.8 | ||||
Basic weighted average outstanding shares | 135.6 | 138.6 | ||||||
Effect of dilutive securities | ||||||||
Stock options | 1.2 | 1.6 | ||||||
Performance shares | 0.1 | 0.2 | ||||||
Diluted weighted average outstanding shares | 136.9 | 140.4 | ||||||
Earnings per share: | ||||||||
Basic | $ | 1.58 | $ | 1.43 | ||||
Diluted | $ | 1.56 | $ | 1.41 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Share-based Compensation, Activity | The number of shares granted to employees and non-employee directors and the weighted average fair value per share during the periods presented were (in thousands except per share amounts): | |||||||||||||
Three Months Ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Grants | Wtd. Avg. | Grants | Wtd. Avg. | |||||||||||
Share | Share | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Stock options | 1,032 | $ | 26.7 | 925 | $ | 33.96 | ||||||||
Performance shares | 87 | 103.7 | 69 | 108.48 | ||||||||||
Restricted stock and restricted stock units | 47 | 115.29 | 48 | 108.88 | ||||||||||
Unrestricted stock | 4 | 109.39 | 6 | 107.96 | ||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current | Inventories consist of (in millions): | |||||||
December 31, | September 30, | |||||||
2014 | 2014 | |||||||
Finished goods | $ | 250.3 | $ | 240.3 | ||||
Work in process | 154.8 | 156.9 | ||||||
Raw materials, parts and supplies | 188.4 | 191.2 | ||||||
Inventories | $ | 593.5 | $ | 588.4 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of Goodwill | Changes in the carrying amount of goodwill for the three months ended December 31, 2014 are (in millions): | |||||||||||
Architecture & | Control | Total | ||||||||||
Software | Products & | |||||||||||
Solutions | ||||||||||||
Balance as of September 30, 2014 | $ | 395.6 | $ | 655 | $ | 1,050.60 | ||||||
Acquisition of business | — | 14.9 | 14.9 | |||||||||
Translation and other | (4.6 | ) | (14.2 | ) | (18.8 | ) | ||||||
Balance as of December 31, 2014 | $ | 391 | $ | 655.7 | $ | 1,046.70 | ||||||
Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class | Other intangible assets consist of (in millions): | |||||||||||
December 31, 2014 | ||||||||||||
Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Amortized intangible assets: | ||||||||||||
Computer software products | $ | 176.7 | $ | 84.1 | $ | 92.6 | ||||||
Customer relationships | 90.1 | 45.5 | 44.6 | |||||||||
Technology | 83.9 | 39.1 | 44.8 | |||||||||
Trademarks | 32.9 | 14.2 | 18.7 | |||||||||
Other | 15.5 | 9.6 | 5.9 | |||||||||
Total amortized intangible assets | 399.1 | 192.5 | 206.6 | |||||||||
Intangible assets not subject to amortization | 43.7 | — | 43.7 | |||||||||
Total | $ | 442.8 | $ | 192.5 | $ | 250.3 | ||||||
September 30, 2014 | ||||||||||||
Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Amortized intangible assets: | ||||||||||||
Computer software products | $ | 169.1 | $ | 82.5 | $ | 86.6 | ||||||
Customer relationships | 89.8 | 45.4 | 44.4 | |||||||||
Technology | 84 | 38.2 | 45.8 | |||||||||
Trademarks | 33.7 | 14 | 19.7 | |||||||||
Other | 15.5 | 9.5 | 6 | |||||||||
Total amortized intangible assets | 392.1 | 189.6 | 202.5 | |||||||||
Intangible assets not subject to amortization | 43.7 | — | 43.7 | |||||||||
Total | $ | 435.8 | $ | 189.6 | $ | 246.2 | ||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Other Current Liabilities | Other current liabilities consist of (in millions): | |||||||
December 31, | September 30, | |||||||
2014 | 2014 | |||||||
Unrealized losses on foreign exchange contracts | $ | 12.1 | $ | 5.8 | ||||
Product warranty obligations | 33.6 | 34.1 | ||||||
Taxes other than income taxes | 35.1 | 37.2 | ||||||
Accrued interest | 15 | 15.6 | ||||||
Income taxes payable | 85.6 | 41 | ||||||
Other | 57.9 | 54.6 | ||||||
Other current liabilities | $ | 239.3 | $ | 188.3 | ||||
Product_Warranty_Obligations_T
Product Warranty Obligations (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Schedule of Product Warranty Liability | Changes in product warranty obligations for the three months ended December 31, 2014 and 2013 are (in millions): | |||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Balance at beginning of period | $ | 34.1 | $ | 36.9 | ||||
Accruals for warranties issued during the current period | 6.9 | 7.7 | ||||||
Adjustments to pre-existing warranties | 0.5 | — | ||||||
Settlements of warranty claims | (7.9 | ) | (8.0 | ) | ||||
Balance at end of period | $ | 33.6 | $ | 36.6 | ||||
Derivative_Instruments_and_Fai1
Derivative Instruments and Fair Value Measurement (Tables) | 3 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Foreign Exchange Contracts, Statement of Financial Position | 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) | ||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | December 31, | September 30, | |||||||||||||||||
2014 | 2014 | |||||||||||||||||||
Forward exchange contracts | Other current assets | $ | 24.2 | $ | 13.1 | |||||||||||||||
Forward exchange contracts | Other assets | 7.1 | 5 | |||||||||||||||||
Forward exchange contracts | Other current liabilities | (9.7 | ) | (4.1 | ) | |||||||||||||||
Forward exchange contracts | Other liabilities | (1.1 | ) | (0.3 | ) | |||||||||||||||
Total | $ | 20.5 | $ | 13.7 | ||||||||||||||||
Fair Value (Level 2) | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | December 31, | September 30, | |||||||||||||||||
2014 | 2014 | |||||||||||||||||||
Forward exchange contracts | Other current assets | $ | 4.5 | $ | 3.5 | |||||||||||||||
Forward exchange contracts | Other current liabilities | (2.4 | ) | (1.8 | ) | |||||||||||||||
Total | $ | 2.1 | $ | 1.7 | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The pre-tax amount of gains (losses) recorded in other comprehensive income related to hedges that would have been recorded in the Condensed Consolidated Statement of Operations had they not been so designated was (in millions): | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Forward exchange contracts (cash flow hedges) | $ | 10.9 | $ | 1.6 | ||||||||||||||||
Foreign currency denominated debt (net investment hedges) | 0.7 | (0.3 | ) | |||||||||||||||||
Total | $ | 11.6 | $ | 1.3 | ||||||||||||||||
Derivative Instruments, Gain (Loss) | The pre-tax amount of (losses) gains reclassified from accumulated other comprehensive loss into the Condensed Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges, which offset the related gains and losses on the hedged items during the periods presented, was: | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Sales | $ | (1.2 | ) | $ | (0.2 | ) | ||||||||||||||
Cost of sales | 5.8 | 0.7 | ||||||||||||||||||
Total | $ | 4.6 | $ | 0.5 | ||||||||||||||||
Pre Tax Amount Of Gains (Losses) From Forward Exchange Contracts Not Designated As Hedging Instruments | The pre-tax amount of gains from forward exchange contracts not designated as hedging instruments recognized in the Condensed Consolidated Statement of Operations during the periods presented was: | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Other income | $ | 1.6 | $ | 3.9 | ||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table presents the carrying amounts and estimated fair values of financial instruments not measured at fair value in the Condensed Consolidated Balance Sheet (in millions): | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Carrying Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Cash and cash equivalents | $ | 1,291.90 | $ | 1,291.90 | $ | 1,254.80 | $ | 37.1 | $ | — | ||||||||||
Short-term investments | 620.8 | 620.8 | — | 620.8 | — | |||||||||||||||
Short-term debt | 508 | 508 | — | 508 | — | |||||||||||||||
Long-term debt | 905.6 | 1,164.50 | — | 1,164.50 | — | |||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Carrying Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Cash and cash equivalents | $ | 1,191.30 | $ | 1,191.30 | $ | 1,154.20 | $ | 37.1 | $ | — | ||||||||||
Short-term investments | 628.5 | 628.5 | — | 628.5 | — | |||||||||||||||
Short-term debt | 325 | 325 | — | 325 | — | |||||||||||||||
Long-term debt | 905.6 | 1,119.40 | — | 1,119.40 | — | |||||||||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Schedule of Net Benefit Costs | The components of net periodic benefit cost are (in millions): | |||||||
Pension Benefits | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Service cost | $ | 21.7 | $ | 19.7 | ||||
Interest cost | 42.3 | 43.6 | ||||||
Expected return on plan assets | (56.1 | ) | (54.5 | ) | ||||
Amortization: | ||||||||
Prior service credit | (0.7 | ) | (0.7 | ) | ||||
Net actuarial loss | 30 | 24.9 | ||||||
Net periodic benefit cost | $ | 37.2 | $ | 33 | ||||
Other Postretirement Benefits | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Service cost | $ | 0.4 | $ | 0.5 | ||||
Interest cost | 1 | 1.6 | ||||||
Amortization: | ||||||||
Prior service credit | (3.7 | ) | (2.5 | ) | ||||
Net actuarial loss | 1.2 | 0.7 | ||||||
Net periodic benefit cost | $ | (1.1 | ) | $ | 0.3 | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component were (in millions): | |||||||||||||||
Pension and other postretirement benefit plan adjustments, | Accumulated currency translation adjustments, | Net unrealized gains (losses) on cash flow hedges, net of tax | Total accumulated other comprehensive loss, net of tax | |||||||||||||
net of tax | net of tax | |||||||||||||||
Balance as of September 30, 2014 | $ | (909.4 | ) | $ | (52.5 | ) | $ | 13.9 | $ | (948.0 | ) | |||||
Other comprehensive (loss) income before reclassifications | — | (92.9 | ) | 12.2 | (80.7 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 17.6 | — | (4.8 | ) | 12.8 | |||||||||||
Other comprehensive income (loss) | 17.6 | (92.9 | ) | 7.4 | (67.9 | ) | ||||||||||
Balance as of December 31, 2014 | $ | (891.8 | ) | $ | (145.4 | ) | $ | 21.3 | $ | (1,015.9 | ) | |||||
Pension and other postretirement benefit plan adjustments, | Accumulated currency translation adjustments, | Net unrealized gains (losses) on cash flow hedges, net of tax | Total accumulated other comprehensive loss, net of tax | |||||||||||||
net of tax | net of tax | |||||||||||||||
Balance as of September 30, 2013 | $ | (823.8 | ) | $ | 8.8 | $ | (2.7 | ) | $ | (817.7 | ) | |||||
Other comprehensive income before reclassifications | — | 9.2 | 1 | 10.2 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 14.6 | — | (0.3 | ) | 14.3 | |||||||||||
Other comprehensive income | 14.6 | 9.2 | 0.7 | 24.5 | ||||||||||||
Balance as of December 31, 2013 | $ | (809.2 | ) | $ | 18 | $ | (2.0 | ) | $ | (793.2 | ) | |||||
Reclassification out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive loss to the Consolidated Statement of Operations were (in millions): | |||||||||||||||
Three Months Ended | Affected Line in the Consolidated Statement of Operations | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Pension and other postretirement benefit plan adjustments: | ||||||||||||||||
Amortization of prior service credit | $ | (4.4 | ) | $ | (3.2 | ) | (a) | |||||||||
Amortization of net actuarial loss | 31.2 | 25.6 | (a) | |||||||||||||
26.8 | 22.4 | Total before tax | ||||||||||||||
(9.2 | ) | (7.8 | ) | Provision for tax | ||||||||||||
$ | 17.6 | $ | 14.6 | After tax | ||||||||||||
Net unrealized losses (gains) on cash flow hedges: | ||||||||||||||||
Forward exchange contracts | $ | 1.2 | $ | 0.2 | Sales | |||||||||||
Forward exchange contracts | (5.8 | ) | (0.7 | ) | Cost of Sales | |||||||||||
(4.6 | ) | (0.5 | ) | Total before tax | ||||||||||||
(0.2 | ) | 0.2 | Provision for tax | |||||||||||||
$ | (4.8 | ) | $ | (0.3 | ) | After tax | ||||||||||
Total reclassifications | $ | 12.8 | $ | 14.3 | After tax | |||||||||||
(a) Reclassified from accumulated other comprehensive loss into cost of sales and selling, general and administrative expenses. These components are included in the computation of net periodic benefit costs. See Note 9 for further information. |
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of Segment Reporting Information, by Segment | The following tables reflect the sales and operating results of our reportable segments (in millions): | |||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Sales | ||||||||
Architecture & Software | $ | 707.8 | $ | 695.9 | ||||
Control Products & Solutions | 866.6 | 895.8 | ||||||
Total | $ | 1,574.40 | $ | 1,591.70 | ||||
Segment operating earnings | ||||||||
Architecture & Software | $ | 221.4 | $ | 211.9 | ||||
Control Products & Solutions | 125.4 | 116.1 | ||||||
Total | 346.8 | 328 | ||||||
Purchase accounting depreciation and amortization | (5.4 | ) | (4.6 | ) | ||||
General corporate – net | (22.8 | ) | (21.7 | ) | ||||
Non-operating pension costs | (16.2 | ) | (14.0 | ) | ||||
Interest expense | (14.9 | ) | (14.9 | ) | ||||
Income before income taxes | $ | 287.5 | $ | 272.8 | ||||
Basis_of_Presentation_and_Acco3
Basis of Presentation and Accounting Policies (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciled Basic and Diluted EPS | ||
Net income | $214.20 | $198.10 |
Less: Allocation to participating securities | -0.3 | -0.3 |
Net income available to common shareowners | $213.90 | $197.80 |
Basic weighted average outstanding shares | 135.6 | 138.6 |
Effect of dilutive securities | ||
Stock options | 1.2 | 1.6 |
Performance shares | 0.1 | 0.2 |
Diluted weighted average outstanding shares | 136.9 | 140.4 |
Earnings Per Share, Basic [Abstract] | ||
Basic | $1.58 | $1.43 |
Earnings Per Share, Diluted [Abstract] | ||
Diluted | $1.56 | $1.41 |
Basis_of_Presentation_and_Acco4
Basis of Presentation and Accounting Policies (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $21.40 | $19.40 | |
Allowance for certain customer returns, rebates and incentives | $8.80 | $11.60 | |
Antidilutive share-based compensation awards | 1.7 | 0.9 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-Based Compensation (Textual) [Abstract] | ||
Pre-tax share-based compensation expense | $10.80 | $11.50 |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | 1,032 | 925 |
Wtd. Avg. Share Fair Value | $26.70 | $33.96 |
Performance shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | 87 | 69 |
Wtd. Avg. Share Fair Value | $103.70 | $108.48 |
Restricted stock and restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | 47 | 48 |
Wtd. Avg. Share Fair Value | $115.29 | $108.88 |
Unrestricted stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | 4 | 6 |
Wtd. Avg. Share Fair Value | $109.39 | $107.96 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Inventories | ||
Finished goods | $250.30 | $240.30 |
Work in process | 154.8 | 156.9 |
Raw materials, parts and supplies | 188.4 | 191.2 |
Inventories | $593.50 | $588.40 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Goodwill | |
Balance as of September 30, 2014 | $1,050.60 |
Acquisition of business | 14.9 |
Translation and other | -18.8 |
Balance as of December 31, 2014 | 1,046.70 |
Finite-lived Intangible Assets Acquired | 5.4 |
Architecture & Software [Member] | |
Goodwill | |
Balance as of September 30, 2014 | 395.6 |
Acquisition of business | 0 |
Translation and other | -4.6 |
Balance as of December 31, 2014 | 391 |
Control Products & Solutions [Member] | |
Goodwill | |
Balance as of September 30, 2014 | 655 |
Acquisition of business | 14.9 |
Translation and other | -14.2 |
Balance as of December 31, 2014 | $655.70 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 1) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | $399.10 | $392.10 |
Amortized intangible assets, accumulated amortization | 192.5 | 189.6 |
Amortized intangible assets, net | 206.6 | 202.5 |
Intangible assets not subject to amortization | 43.7 | 43.7 |
Total other intangible assets, carrying amount | 442.8 | 435.8 |
Total other intangible assets, net | 250.3 | 246.2 |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||
Estimated amortization expense in 2015 | 31.3 | |
Estimated amortization expense in 2016 | 34.8 | |
Estimated amortization expense in 2017 | 30.7 | |
Estimated amortization expense in 2018 | 24.7 | |
Estimated amortization expense in 2019 | 18.8 | |
Computer software products [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 176.7 | 169.1 |
Amortized intangible assets, accumulated amortization | 84.1 | 82.5 |
Amortized intangible assets, net | 92.6 | 86.6 |
Customer relationships [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 90.1 | 89.8 |
Amortized intangible assets, accumulated amortization | 45.5 | 45.4 |
Amortized intangible assets, net | 44.6 | 44.4 |
Technology [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 83.9 | 84 |
Amortized intangible assets, accumulated amortization | 39.1 | 38.2 |
Amortized intangible assets, net | 44.8 | 45.8 |
Trademarks [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 32.9 | 33.7 |
Amortized intangible assets, accumulated amortization | 14.2 | 14 |
Amortized intangible assets, net | 18.7 | 19.7 |
Other [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 15.5 | 15.5 |
Amortized intangible assets, accumulated amortization | 9.6 | 9.5 |
Amortized intangible assets, net | $5.90 | $6 |
Shortterm_Debt_Details
Short-term Debt (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Short-term Debt (Textual) [Abstract] | ||
Commercial paper borrowings outstanding | $508 | $325 |
Weighted average interest rate of commercial paper outstanding | 0.25% | 0.17% |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||||
Other current liabilities | ||||
Unrealized losses on foreign exchange contracts | $12.10 | $5.80 | ||
Product warranty obligations | 33.6 | 34.1 | 36.6 | 36.9 |
Taxes other than income taxes | 35.1 | 37.2 | ||
Accrued interest | 15 | 15.6 | ||
Income taxes payable | 85.6 | 41 | ||
Other | 57.9 | 54.6 | ||
Other current liabilities | $239.30 | $188.30 |
Product_Warranty_Obligations_D
Product Warranty Obligations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in the product warranty obligations | ||
Balance at beginning of period | $34.10 | $36.90 |
Accruals for warranties issued during the current period | 6.9 | 7.7 |
Adjustments to pre-existing warranties | 0.5 | 0 |
Settlements of warranty claims | -7.9 | -8 |
Balance at end of period | $33.60 | $36.60 |
Derivative_Instruments_and_Fai2
Derivative Instruments and Fair Value Measurement (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Notional values of forward exchange contracts | $914.60 | |
Foreign currency denominated debt designated as net investment hedges | 14 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Net derivative asset / (liability) designated as hedging instruments | 20.5 | 13.7 |
Net derivative asset / (liability) not designated as hedging instruments | 2.1 | 1.7 |
Fair Value, Inputs, Level 2 [Member] | Other current assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative assets designated as hedging instruments | 24.2 | 13.1 |
Derivative assets not designated as hedging instruments | 4.5 | 3.5 |
Fair Value, Inputs, Level 2 [Member] | Other assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative assets designated as hedging instruments | 7.1 | 5 |
Fair Value, Inputs, Level 2 [Member] | Other current liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative liabilities designated as hedging instruments | -9.7 | -4.1 |
Derivative liabilities not designated as hedging instruments | -2.4 | -1.8 |
Fair Value, Inputs, Level 2 [Member] | Other liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative liabilities designated as hedging instruments | -1.1 | -0.3 |
Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional values of forward exchange contracts | $692.50 |
Derivative_Instruments_and_Fai3
Derivative Instruments and Fair Value Measurement (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Pre-tax gains (losses) recorded in other comprehensive income related to forward exchange contracts (cash flow hedges) | $10.90 | $1.60 |
Pre-tax gains (losses) recorded in other comprehensive income related to foreign currency denominated debt (net investment hedges) | 0.7 | -0.3 |
Total pre-tax gains (losses) recorded in other comprehensive income related to hedges | 11.6 | 1.3 |
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract] | ||
Net unrealized gains on cash flow hedges to be reclassified into earnings during the next 12 months | 14.6 | |
Net unrealized gains on cash flow hedges to be reclassified into earnings during the next 12 months, net of tax | 15.2 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||
Pre-tax amount of gains (losses) reclassified from accumulated other comprehensive income into the Condensed Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges | 4.6 | 0.5 |
Amount recognized in earnings as a result of ineffective hedges is not significant | not significant | |
Sales [Member] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||
Pre-tax amount of gains (losses) reclassified from accumulated other comprehensive income into the Condensed Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges | -1.2 | -0.2 |
Cost of sales [Member] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||
Pre-tax amount of gains (losses) reclassified from accumulated other comprehensive income into the Condensed Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges | 5.8 | 0.7 |
Other income (expense) [Member] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Pre-tax amount of gains (losses) from forward exchange contracts not designated as hedging instruments recognized in the Consolidated Statement of Operations | $1.60 | $3.90 |
Derivative_Instruments_and_Fai4
Derivative Instruments and Fair Value Measurement (Details 2) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, carrying amount | $1,291.90 | $1,191.30 | $1,246 | $1,200.90 |
Cash and cash equivalents, fair value | 1,291.90 | 1,191.30 | ||
Short-term investments, carrying amount | 620.8 | 628.5 | ||
Short-term investments, fair value | 620.8 | 628.5 | ||
Short-term debt | 508 | 325 | ||
Short-term debt, fair value | 508 | 325 | ||
Long-term debt, carrying amount | 905.6 | 905.6 | ||
Long-term debt, fair value | 1,164.50 | 1,119.40 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 1,254.80 | 1,154.20 | ||
Short-term investments, fair value | 0 | 0 | ||
Short-term debt, fair value | 0 | 0 | ||
Long-term debt, fair value | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 37.1 | 37.1 | ||
Short-term investments, fair value | 620.8 | 628.5 | ||
Short-term debt, fair value | 508 | 325 | ||
Long-term debt, fair value | 1,164.50 | 1,119.40 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 0 | 0 | ||
Short-term investments, fair value | 0 | 0 | ||
Short-term debt, fair value | 0 | 0 | ||
Long-term debt, fair value | $0 | $0 |
Retirement_Benefits_Details
Retirement Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits [Member] | ||
Components of net periodic benefit cost | ||
Service cost | $21.70 | $19.70 |
Interest cost | 42.3 | 43.6 |
Expected return on plan assets | -56.1 | -54.5 |
Amortization: | ||
Prior service credit | -0.7 | -0.7 |
Net actuarial loss | 30 | 24.9 |
Net periodic benefit cost | 37.2 | 33 |
Other Postretirement Benefits [Member] | ||
Components of net periodic benefit cost | ||
Service cost | 0.4 | 0.5 |
Interest cost | 1 | 1.6 |
Amortization: | ||
Prior service credit | -3.7 | -2.5 |
Net actuarial loss | 1.2 | 0.7 |
Net periodic benefit cost | ($1.10) | $0.30 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), net of tax | ($1,015.90) | ($793.20) | ($948) | ($817.70) |
Other comprehensive income (loss) before reclassifications, net of tax | -80.7 | 10.2 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 12.8 | 14.3 | ||
Other comprehensive income (loss), net of tax | -67.9 | 24.5 | ||
Sales | 1,574.40 | 1,591.70 | ||
Cost of Sales | -886.9 | -928 | ||
Total before tax | 287.5 | 272.8 | ||
Provision for tax | -73.3 | -74.7 | ||
After tax | 214.2 | 198.1 | ||
Pension and other postretirement benefit benefit plan adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), net of tax | -891.8 | -809.2 | -909.4 | -823.8 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 17.6 | 14.6 | ||
Other comprehensive income (loss), net of tax | 17.6 | 14.6 | ||
Accumulated currency translation adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), net of tax | -145.4 | 18 | -52.5 | 8.8 |
Other comprehensive income (loss) before reclassifications, net of tax | -92.9 | 9.2 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Other comprehensive income (loss), net of tax | -92.9 | 9.2 | ||
Net unrealized gains (losses) on cash flow hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), net of tax | 21.3 | -2 | 13.9 | -2.7 |
Other comprehensive income (loss) before reclassifications, net of tax | 12.2 | 1 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | -4.8 | -0.3 | ||
Other comprehensive income (loss), net of tax | 7.4 | 0.7 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
After tax | 12.8 | 14.3 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and other postretirement benefit benefit plan adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of prior service credit | -4.4 | -3.2 | ||
Amortization of net actuarial loss | 31.2 | 25.6 | ||
Total before tax | 26.8 | 22.4 | ||
Provision for tax | -9.2 | -7.8 | ||
After tax | 17.6 | 14.6 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net unrealized gains (losses) on cash flow hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Sales | 1.2 | 0.2 | ||
Cost of Sales | -5.8 | -0.7 | ||
Total before tax | -4.6 | -0.5 | ||
Provision for tax | -0.2 | 0.2 | ||
After tax | ($4.80) | ($0.30) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 25.50% | 27.40% | |
U.S. statutory rate | 35.00% | 35.00% | |
Gross unrecognized tax benefits | $41.10 | $38.90 | |
Accrued interest and penalties related to unrecognized tax benefits | 5.8 | 8.1 | |
Net reduction of income tax provision related to unrecognized tax benefits, tax penalties, accrued interest and offsetting tax assets | 22.6 | ||
Reasonably possible amount of decrease in gross unrecognized tax benefits for the next twelve months | 20.2 | ||
Reasonably possible amount of net reduction to income tax provision if unrecognized tax benefits were recognized | $3 | ||
Earliest open year for income tax examinations, U.S. federal | 2012 | ||
Earliest open tax year for income tax examinations, state, local and non-U.S. | 2003 |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Sales and operating results of reportable segments | ||
Sales | $1,574.40 | $1,591.70 |
Income before income taxes | 287.5 | 272.8 |
Interest expense | -14.9 | -14.9 |
Operating Segments [Member] | ||
Sales and operating results of reportable segments | ||
Income before income taxes | 346.8 | 328 |
Architecture & Software [Member] | ||
Sales and operating results of reportable segments | ||
Sales | 707.8 | 695.9 |
Income before income taxes | 221.4 | 211.9 |
Control Products & Solutions [Member] | ||
Sales and operating results of reportable segments | ||
Sales | 866.6 | 895.8 |
Income before income taxes | 125.4 | 116.1 |
Segment Reconciling Items [Member] | ||
Sales and operating results of reportable segments | ||
Purchase accounting depreciation and amortization | -5.4 | -4.6 |
Non-operating pension costs | -16.2 | -14 |
Corporate, Non-Segment [Member] | ||
Sales and operating results of reportable segments | ||
General corporate - net | -22.8 | -21.7 |
Interest expense | ($14.90) | ($14.90) |