Document and Entity Information
Document and Entity Information | 3 Months Ended |
Dec. 31, 2015shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | ROCKWELL AUTOMATION INC. |
Entity Central Index Key | 1,024,478 |
Document Type | 10-Q |
Document Period End Date | Dec. 31, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --09-30 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 131,423,076 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,449.2 | $ 1,427.3 |
Short-term investments | 770.6 | 721.9 |
Receivables | 1,015.8 | 1,041 |
Inventories | 562.2 | 535.6 |
Other current assets | 159.4 | 171 |
Total current assets | 3,957.2 | 3,896.8 |
Property, net of accumulated depreciation of $1,324.7 and $1,299.1, respectively | 586.3 | 605.6 |
Goodwill | 1,019.9 | 1,028.8 |
Other intangible assets, net | 221 | 229.5 |
Deferred income taxes | 496.1 | 494.8 |
Other assets | 139.2 | 149.2 |
Total | 6,419.7 | 6,404.7 |
Current liabilities: | ||
Short-term debt | 161 | 0 |
Accounts payable | 469.6 | 521.7 |
Compensation and benefits | 142.8 | 225 |
Advance payments from customers and deferred revenue | 217.1 | 200.8 |
Customer returns, rebates and incentives | 163.6 | 172.2 |
Other current liabilities | 229.3 | 208 |
Total current liabilities | 1,383.4 | 1,327.7 |
Long-term debt | 1,492.9 | 1,500.9 |
Retirement benefits | 1,109.9 | 1,116.6 |
Other liabilities | $ 197 | $ 202.7 |
Commitments and contingent liabilities (Note 10) | ||
Shareowners' equity: | ||
Common stock ($1.00 par value, shares issued: 181.4) | $ 181.4 | $ 181.4 |
Additional paid-in capital | 1,554.6 | 1,552.1 |
Retained earnings | 5,406.7 | 5,316.9 |
Accumulated other comprehensive loss | (1,339) | (1,334.6) |
Common stock in treasury, at cost (shares held: December 31, 2015, 50.0; September 30, 2015, 49.0) | (3,567.2) | (3,459) |
Total shareowners' equity | 2,236.5 | 2,256.8 |
Total | $ 6,419.7 | $ 6,404.7 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,324.7 | $ 1,299.1 |
Common stock, par value per share | $ 1 | $ 1 |
Common stock, shares issued | 181.4 | 181.4 |
Treasury stock, shares | 50 | 49 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sales | ||
Products and solutions | $ 1,271.3 | $ 1,409.8 |
Services | 155.3 | 164.6 |
Total sales | 1,426.6 | 1,574.4 |
Cost of sales | ||
Products and solutions | (708.6) | (776.8) |
Services | (105.3) | (110.1) |
Total cost of sales | (813.9) | (886.9) |
Gross profit | 612.7 | 687.5 |
Selling, general and administrative expenses | (359.9) | (386.9) |
Other income | 1.5 | 1.8 |
Interest expense | (17.4) | (14.9) |
Income before income taxes | 236.9 | 287.5 |
Income tax provision | (51.4) | (73.3) |
Net income | $ 185.5 | $ 214.2 |
Earnings Per Share, Basic [Abstract] | ||
Basic | $ 1.41 | $ 1.58 |
Earnings Per Share, Diluted [Abstract] | ||
Diluted | 1.40 | 1.56 |
Cash dividends per share | $ 0.725 | $ 0.65 |
Weighted average outstanding shares: | ||
Basic | 131.8 | 135.6 |
Diluted | 132.6 | 136.9 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Comprehensive income | ||
Net income | $ 185.5 | $ 214.2 |
Other comprehensive income (loss), net of tax: | ||
Pension and other postretirement benefit plan adjustments (net of tax expense of $9.8 and $9.2) | 18.4 | 17.6 |
Currency translation adjustments | (24.4) | (92.9) |
Net change in unrealized gains and losses on cash flow hedges (net of tax expense (benefit) of $0.2 and ($1.1)) | 1.6 | 7.4 |
Other comprehensive income (loss) | (4.4) | (67.9) |
Comprehensive income | $ 181.1 | $ 146.3 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||
Tax expense from pension and other postretirement benefit plan adjustments | $ 9.8 | $ 9.2 |
Tax expense (benefit) from net change in unrealized gains and losses on cash flow hedges | $ 0.2 | $ (1.1) |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | ||
Net income | $ 185.5 | $ 214.2 |
Adjustments to arrive at cash provided by operating activities: | ||
Depreciation | 33.7 | 33.9 |
Amortization of intangible assets | 7.6 | 6.7 |
Share-based compensation expense | 10.8 | 10.8 |
Retirement benefit expense | 39.2 | 36.1 |
Pension contributions | (10.6) | (8.6) |
Net loss on disposition of property | 0 | 0.2 |
Excess income tax benefit from share-based compensation | (0.7) | (4.4) |
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments: | ||
Receivables | 15.1 | 73.2 |
Inventories | (32.7) | (24.3) |
Accounts payable | (19) | (10.4) |
Advance payments from customers and deferred revenue | 18.1 | 7.5 |
Compensation and benefits | (80.6) | (99.2) |
Income taxes | 11.3 | 46.9 |
Other assets and liabilities | 7.1 | (14.4) |
Cash provided by operating activities | 184.8 | 268.2 |
Investing activities: | ||
Capital expenditures | (40.2) | (40) |
Acquisition of business, net of cash acquired | 0 | (21.2) |
Purchases of short-term investments | (312.4) | (171.6) |
Proceeds from maturities of short-term investments | 261.1 | 175.7 |
Proceeds from sale of property | 0.2 | 0.1 |
Cash used for investing activities | (91.3) | (57) |
Financing activities: | ||
Net issuance of short-term debt | 161 | 183 |
Cash dividends | (95.6) | (88.1) |
Purchases of treasury stock | (127.4) | (168.4) |
Proceeds from the exercise of stock options | 4 | 4.7 |
Excess income tax benefit from share-based compensation | 0.7 | 4.4 |
Cash used for financing activities | (57.3) | (64.4) |
Effect of exchange rate changes on cash | (14.3) | (46.2) |
Increase in cash and cash equivalents | 21.9 | 100.6 |
Cash and cash equivalents at beginning of period | 1,427.3 | 1,191.3 |
Cash and cash equivalents at end of period | $ 1,449.2 | $ 1,291.9 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies In the opinion of management of Rockwell Automation, Inc. ("Rockwell Automation" or "the Company"), 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, 2015 . The results of operations for the three -month period ended December 31, 2015 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 $22.3 million at December 31, 2015 and $22.0 million at September 30, 2015 . In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $11.4 million at December 31, 2015 and $9.2 million at September 30, 2015 . Earnings Per Share The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts): Three Months Ended 2015 2014 Net income $ 185.5 $ 214.2 Less: Allocation to participating securities (0.2 ) (0.3 ) Net income available to common shareowners $ 185.3 $ 213.9 Basic weighted average outstanding shares 131.8 135.6 Effect of dilutive securities Stock options 0.8 1.2 Performance shares — 0.1 Diluted weighted average outstanding shares 132.6 136.9 Earnings per share: Basic $ 1.41 $ 1.58 Diluted $ 1.40 $ 1.56 For the three months ended December 31, 2015 , share-based compensation awards for 2.9 million shares were excluded from the diluted EPS calculation because they were antidilutive. 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. Non-Cash Investing and Financing Activities Capital expenditures of $3.4 million and $5.8 million were accrued within accounts payable and other current liabilities at December 31, 2015 and 2014 , respectively. At December 31, 2015 and 2014 , there were $6.9 million and $3.4 million , respectively, of outstanding common stock share repurchases recorded in accounts payable that did not settle until the next fiscal quarter. These non-cash investing and financing activities have been excluded from cash used for capital expenditures and treasury stock purchases in the Condensed Consolidated Statement of Cash Flows. Recent Accounting Pronouncements In November 2015, the FASB issued new guidance that requires all deferred income taxes to be classified on the balance sheet as noncurrent assets or liabilities rather than separating current and noncurrent deferred income taxes based on the classification of the related assets and liabilities. This requirement is effective for us no later than October 1, 2017; however, we elected to adopt earlier as of December 31, 2015. Upon adoption of this guidance we retrospectively reclassified $151.2 million of deferred income taxes from current assets to noncurrent assets at September 30, 2015. In May 2014, the FASB issued a new standard on revenue recognition related to 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, 2018. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements and related disclosures. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized $10.8 million of pre-tax share-based compensation expense during each of the three -month periods ended December 31, 2015 and 2014 . 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, 2015 2014 Grants Wtd. Avg. Share Fair Value Grants Wtd. Avg. Share Fair Value Stock options 1,122 $ 21.20 1,032 $ 26.70 Performance shares 96 87.64 87 103.70 Restricted stock and restricted stock units 56 103.90 47 115.29 Unrestricted stock 6 100.36 4 109.39 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of (in millions): December 31, September 30, Finished goods $ 234.5 $ 225.7 Work in process 177.9 157.5 Raw materials 149.8 152.4 Inventories $ 562.2 $ 535.6 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 31, 2015 | |
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, 2015 are (in millions): Architecture & Software Control Products & Solutions Total Balance as of September 30, 2015 $ 388.0 $ 640.8 $ 1,028.8 Translation (1.5 ) (7.4 ) (8.9 ) Balance as of December 31, 2015 $ 386.5 $ 633.4 $ 1,019.9 Other intangible assets consist of (in millions): December 31, 2015 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 182.4 $ 95.0 $ 87.4 Customer relationships 85.5 50.7 34.8 Technology 82.8 45.5 37.3 Trademarks 31.8 16.7 15.1 Other 11.3 8.6 2.7 Total amortized intangible assets 393.8 216.5 177.3 Intangible assets not subject to amortization 43.7 — 43.7 Total $ 437.5 $ 216.5 $ 221.0 September 30, 2015 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 182.4 $ 91.9 $ 90.5 Customer relationships 87.2 50.1 37.1 Technology 83.4 44.1 39.3 Trademarks 32.3 16.3 16.0 Other 11.5 8.6 2.9 Total amortized intangible assets 396.8 211.0 185.8 Intangible assets not subject to amortization 43.7 — 43.7 Total $ 440.5 $ 211.0 $ 229.5 The Allen-Bradley ® trademark has an indefinite life and therefore is not subject to amortization. Estimated amortization expense is $29.1 million in 2016 , $25.9 million in 2017 , $19.8 million in 2018 , $17.2 million in 2019 and $14.4 million in 2020 . 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. |
Short-term Debt
Short-term Debt | 3 Months Ended |
Dec. 31, 2015 | |
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 $161.0 million at December 31, 2015 . The weighted average interest rate of the commercial paper outstanding was 0.49 percent at December 31, 2015 . There were no commercial paper borrowings outstanding at September 30, 2015 . |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of (in millions): December 31, September 30, Unrealized losses on foreign exchange contracts $ 13.0 $ 16.4 Product warranty obligations (Note 7) 27.6 27.9 Taxes other than income taxes 40.0 34.9 Accrued interest 16.2 16.9 Income taxes payable 74.7 50.9 Other 57.8 61.0 Other current liabilities $ 229.3 $ 208.0 |
Product Warranty Obligations
Product Warranty Obligations | 3 Months Ended |
Dec. 31, 2015 | |
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. Changes in product warranty obligations for the three months ended December 31, 2015 and 2014 are (in millions): Three Months Ended 2015 2014 Balance at beginning of period $ 27.9 $ 34.1 Accruals for warranties issued during the current period 6.4 6.9 Adjustments to pre-existing warranties (0.5 ) 0.5 Settlements of warranty claims (6.2 ) (7.9 ) Balance at end of period $ 27.6 $ 33.6 |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit cost (income) are (in millions): Pension Benefits Three Months Ended 2015 2014 Service cost $ 22.1 $ 21.7 Interest cost 42.5 42.3 Expected return on plan assets (54.7 ) (56.1 ) Amortization: Prior service credit (0.7 ) (0.7 ) Net actuarial loss 31.1 30.0 Net periodic benefit cost $ 40.3 $ 37.2 Other Postretirement Benefits Three Months Ended 2015 2014 Service cost $ 0.3 $ 0.4 Interest cost 0.8 1.0 Amortization: Prior service credit (2.8 ) (3.7 ) Net actuarial loss 0.6 1.2 Net periodic benefit income $ (1.1 ) $ (1.1 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component were (in millions): Three Months Ended December 31, 2015 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax Balance as of September 30, 2015 $ (1,097.1 ) $ (252.4 ) $ 14.9 $ (1,334.6 ) Other comprehensive (loss) income before reclassifications — (24.4 ) 6.5 (17.9 ) Amounts reclassified from accumulated other comprehensive loss 18.4 — (4.9 ) 13.5 Other comprehensive income (loss) 18.4 (24.4 ) 1.6 (4.4 ) Balance as of December 31, 2015 $ (1,078.7 ) $ (276.8 ) $ 16.5 $ (1,339.0 ) Three Months Ended December 31, 2014 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Total accumulated other comprehensive loss, 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 ) The reclassifications out of accumulated other comprehensive loss to the Condensed Consolidated Statement of Operations were (in millions): Three Months Ended Affected Line in the Condensed Consolidated Statement of Operations 2015 2014 Pension and other postretirement benefit plan adjustments: Amortization of prior service credit $ (3.5 ) $ (4.4 ) (a) Amortization of net actuarial loss 31.7 31.2 (a) 28.2 26.8 Income before income taxes (9.8 ) (9.2 ) Income tax provision $ 18.4 $ 17.6 Net income Net unrealized losses (gains) on cash flow hedges: Forward exchange contracts $ 2.5 $ 1.2 Sales Forward exchange contracts (8.8 ) (5.8 ) Cost of sales (6.3 ) (4.6 ) Income before income taxes 1.4 (0.2 ) Income tax provision $ (4.9 ) $ (4.8 ) Net income Total reclassifications $ 13.5 $ 12.8 Net income (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 cost (income). See Note 8 for further information. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Dec. 31, 2015 | |
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 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 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 conjunction 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, 2015 , 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, 2015 | |
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 21.7 percent and 25.5 percent in the three months ended December 31, 2015 and 2014 , 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. In the first quarter of fiscal 2016 we also realized an incremental benefit from the retroactive and permanent extension of the U.S. federal research and development tax credit. The amount of gross unrecognized tax benefits was $44.3 million and $43.9 million at December 31, 2015 and September 30, 2015 , respectively, of which the entire amount would reduce our effective tax rate if recognized. Accrued interest and penalties related to unrecognized tax benefits were $5.3 million and $5.1 million at December 31, 2015 and September 30, 2015 , 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 $27.1 million as of December 31, 2015 . There was no material change in the amount of unrecognized tax benefits in the three months ended December 31, 2015 . We believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $31.8 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 $15.2 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, 2015 | |
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 2015 2014 Sales Architecture & Software $ 642.9 $ 707.8 Control Products & Solutions 783.7 866.6 Total $ 1,426.6 $ 1,574.4 Segment operating earnings Architecture & Software $ 176.2 $ 221.4 Control Products & Solutions 119.7 125.4 Total 295.9 346.8 Purchase accounting depreciation and amortization (4.7 ) (5.4 ) General corporate – net (18.0 ) (22.8 ) Non-operating pension costs (18.9 ) (16.2 ) Interest expense (17.4 ) (14.9 ) Income before income taxes $ 236.9 $ 287.5 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 Acc20
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Receivables | Receivables Receivables are stated net of an allowance for doubtful accounts of $22.3 million at December 31, 2015 and $22.0 million at September 30, 2015 . In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $11.4 million at December 31, 2015 and $9.2 million at September 30, 2015 . |
Recent accounting pronouncements | Recent Accounting Pronouncements In November 2015, the FASB issued new guidance that requires all deferred income taxes to be classified on the balance sheet as noncurrent assets or liabilities rather than separating current and noncurrent deferred income taxes based on the classification of the related assets and liabilities. This requirement is effective for us no later than October 1, 2017; however, we elected to adopt earlier as of December 31, 2015. Upon adoption of this guidance we retrospectively reclassified $151.2 million of deferred income taxes from current assets to noncurrent assets at September 30, 2015. In May 2014, the FASB issued a new standard on revenue recognition related to 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, 2018. 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. |
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 Acc21
Basis of Presentation and Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 Net income $ 185.5 $ 214.2 Less: Allocation to participating securities (0.2 ) (0.3 ) Net income available to common shareowners $ 185.3 $ 213.9 Basic weighted average outstanding shares 131.8 135.6 Effect of dilutive securities Stock options 0.8 1.2 Performance shares — 0.1 Diluted weighted average outstanding shares 132.6 136.9 Earnings per share: Basic $ 1.41 $ 1.58 Diluted $ 1.40 $ 1.56 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Grants Wtd. Avg. Share Fair Value Grants Wtd. Avg. Share Fair Value Stock options 1,122 $ 21.20 1,032 $ 26.70 Performance shares 96 87.64 87 103.70 Restricted stock and restricted stock units 56 103.90 47 115.29 Unrestricted stock 6 100.36 4 109.39 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of (in millions): December 31, September 30, Finished goods $ 234.5 $ 225.7 Work in process 177.9 157.5 Raw materials 149.8 152.4 Inventories $ 562.2 $ 535.6 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the three months ended December 31, 2015 are (in millions): Architecture & Software Control Products & Solutions Total Balance as of September 30, 2015 $ 388.0 $ 640.8 $ 1,028.8 Translation (1.5 ) (7.4 ) (8.9 ) Balance as of December 31, 2015 $ 386.5 $ 633.4 $ 1,019.9 |
Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class | Other intangible assets consist of (in millions): December 31, 2015 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 182.4 $ 95.0 $ 87.4 Customer relationships 85.5 50.7 34.8 Technology 82.8 45.5 37.3 Trademarks 31.8 16.7 15.1 Other 11.3 8.6 2.7 Total amortized intangible assets 393.8 216.5 177.3 Intangible assets not subject to amortization 43.7 — 43.7 Total $ 437.5 $ 216.5 $ 221.0 September 30, 2015 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 182.4 $ 91.9 $ 90.5 Customer relationships 87.2 50.1 37.1 Technology 83.4 44.1 39.3 Trademarks 32.3 16.3 16.0 Other 11.5 8.6 2.9 Total amortized intangible assets 396.8 211.0 185.8 Intangible assets not subject to amortization 43.7 — 43.7 Total $ 440.5 $ 211.0 $ 229.5 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consist of (in millions): December 31, September 30, Unrealized losses on foreign exchange contracts $ 13.0 $ 16.4 Product warranty obligations (Note 7) 27.6 27.9 Taxes other than income taxes 40.0 34.9 Accrued interest 16.2 16.9 Income taxes payable 74.7 50.9 Other 57.8 61.0 Other current liabilities $ 229.3 $ 208.0 |
Product Warranty Obligations (T
Product Warranty Obligations (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Changes in product warranty obligations for the three months ended December 31, 2015 and 2014 are (in millions): Three Months Ended 2015 2014 Balance at beginning of period $ 27.9 $ 34.1 Accruals for warranties issued during the current period 6.4 6.9 Adjustments to pre-existing warranties (0.5 ) 0.5 Settlements of warranty claims (6.2 ) (7.9 ) Balance at end of period $ 27.6 $ 33.6 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost (income) are (in millions): Pension Benefits Three Months Ended 2015 2014 Service cost $ 22.1 $ 21.7 Interest cost 42.5 42.3 Expected return on plan assets (54.7 ) (56.1 ) Amortization: Prior service credit (0.7 ) (0.7 ) Net actuarial loss 31.1 30.0 Net periodic benefit cost $ 40.3 $ 37.2 Other Postretirement Benefits Three Months Ended 2015 2014 Service cost $ 0.3 $ 0.4 Interest cost 0.8 1.0 Amortization: Prior service credit (2.8 ) (3.7 ) Net actuarial loss 0.6 1.2 Net periodic benefit income $ (1.1 ) $ (1.1 ) |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component were (in millions): Three Months Ended December 31, 2015 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax Balance as of September 30, 2015 $ (1,097.1 ) $ (252.4 ) $ 14.9 $ (1,334.6 ) Other comprehensive (loss) income before reclassifications — (24.4 ) 6.5 (17.9 ) Amounts reclassified from accumulated other comprehensive loss 18.4 — (4.9 ) 13.5 Other comprehensive income (loss) 18.4 (24.4 ) 1.6 (4.4 ) Balance as of December 31, 2015 $ (1,078.7 ) $ (276.8 ) $ 16.5 $ (1,339.0 ) Three Months Ended December 31, 2014 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Total accumulated other comprehensive loss, 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 ) |
Reclassification out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive loss to the Condensed Consolidated Statement of Operations were (in millions): Three Months Ended Affected Line in the Condensed Consolidated Statement of Operations 2015 2014 Pension and other postretirement benefit plan adjustments: Amortization of prior service credit $ (3.5 ) $ (4.4 ) (a) Amortization of net actuarial loss 31.7 31.2 (a) 28.2 26.8 Income before income taxes (9.8 ) (9.2 ) Income tax provision $ 18.4 $ 17.6 Net income Net unrealized losses (gains) on cash flow hedges: Forward exchange contracts $ 2.5 $ 1.2 Sales Forward exchange contracts (8.8 ) (5.8 ) Cost of sales (6.3 ) (4.6 ) Income before income taxes 1.4 (0.2 ) Income tax provision $ (4.9 ) $ (4.8 ) Net income Total reclassifications $ 13.5 $ 12.8 Net income (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 cost (income). See Note 8 for further information. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 Sales Architecture & Software $ 642.9 $ 707.8 Control Products & Solutions 783.7 866.6 Total $ 1,426.6 $ 1,574.4 Segment operating earnings Architecture & Software $ 176.2 $ 221.4 Control Products & Solutions 119.7 125.4 Total 295.9 346.8 Purchase accounting depreciation and amortization (4.7 ) (5.4 ) General corporate – net (18.0 ) (22.8 ) Non-operating pension costs (18.9 ) (16.2 ) Interest expense (17.4 ) (14.9 ) Income before income taxes $ 236.9 $ 287.5 |
Basis of Presentation and Acc30
Basis of Presentation and Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciled Basic and Diluted EPS | ||
Net income | $ 185.5 | $ 214.2 |
Less: Allocation to participating securities | (0.2) | (0.3) |
Net income available to common shareowners | $ 185.3 | $ 213.9 |
Basic weighted average outstanding shares | 131.8 | 135.6 |
Effect of dilutive securities | ||
Stock options | 0.8 | 1.2 |
Performance shares | 0 | 0.1 |
Diluted weighted average outstanding shares | 132.6 | 136.9 |
Earnings Per Share, Basic [Abstract] | ||
Basic | $ 1.41 | $ 1.58 |
Earnings Per Share, Diluted [Abstract] | ||
Diluted | $ 1.40 | $ 1.56 |
Basis of Presentation and Acc31
Basis of Presentation and Accounting Policies (Details Textual) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Allowance for doubtful accounts | $ 22.3 | $ 22 | |
Allowance for certain customer returns, rebates and incentives | $ 11.4 | 9.2 | |
Antidilutive share-based compensation awards | 2.9 | 1.7 | |
Capital expenditures in accounts payable or other current liabilities at period end | $ 3.4 | $ 5.8 | |
Outstanding purchase of common stock recorded in accounts payable | $ 6.9 | $ 3.4 | |
Scenario, Previously Reported [Member] | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Current deferred tax assets retrospectively reclassified to noncurrent | $ 151.2 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-Based Compensation (Textual) [Abstract] | ||
Pre-tax share-based compensation expense | $ 10.8 | $ 10.8 |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | 1,122 | 1,032 |
Wtd. Avg. Share Fair Value | $ 21.20 | $ 26.70 |
Performance shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | 96 | 87 |
Wtd. Avg. Share Fair Value | $ 87.64 | $ 103.70 |
Restricted stock and restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | 56 | 47 |
Wtd. Avg. Share Fair Value | $ 103.90 | $ 115.29 |
Unrestricted stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | 6 | 4 |
Wtd. Avg. Share Fair Value | $ 100.36 | $ 109.39 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Inventories | ||
Finished goods | $ 234.5 | $ 225.7 |
Work in process | 177.9 | 157.5 |
Raw materials | 149.8 | 152.4 |
Inventories | $ 562.2 | $ 535.6 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill | |
Balance as of September 30, 2015 | $ 1,028.8 |
Translation | (8.9) |
Balance as of December 31, 2015 | 1,019.9 |
Architecture & Software [Member] | |
Goodwill | |
Balance as of September 30, 2015 | 388 |
Translation | (1.5) |
Balance as of December 31, 2015 | 386.5 |
Control Products & Solutions [Member] | |
Goodwill | |
Balance as of September 30, 2015 | 640.8 |
Translation | (7.4) |
Balance as of December 31, 2015 | $ 633.4 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Total, carrying amount | $ 437.5 | $ 440.5 |
Total, net | 221 | 229.5 |
Other intangible assets | ||
Amortized intangible assets, carrying amount | 393.8 | 396.8 |
Amortized intangible assets, accumulated amortization | 216.5 | 211 |
Amortized intangible assets, net | 177.3 | 185.8 |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||
Estimated amortization expense in 2016 | 29.1 | |
Estimated amortization expense in 2017 | 25.9 | |
Estimated amortization expense in 2018 | 19.8 | |
Estimated amortization expense in 2019 | 17.2 | |
Estimated amortization expense in 2020 | 14.4 | |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | 43.7 | 43.7 |
Computer software products [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 182.4 | 182.4 |
Amortized intangible assets, accumulated amortization | 95 | 91.9 |
Amortized intangible assets, net | 87.4 | 90.5 |
Customer relationships [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 85.5 | 87.2 |
Amortized intangible assets, accumulated amortization | 50.7 | 50.1 |
Amortized intangible assets, net | 34.8 | 37.1 |
Technology [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 82.8 | 83.4 |
Amortized intangible assets, accumulated amortization | 45.5 | 44.1 |
Amortized intangible assets, net | 37.3 | 39.3 |
Trademarks [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 31.8 | 32.3 |
Amortized intangible assets, accumulated amortization | 16.7 | 16.3 |
Amortized intangible assets, net | 15.1 | 16 |
Other [Member] | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 11.3 | 11.5 |
Amortized intangible assets, accumulated amortization | 8.6 | 8.6 |
Amortized intangible assets, net | $ 2.7 | $ 2.9 |
Short-term Debt (Details Textua
Short-term Debt (Details Textuals) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Short-term Debt [Abstract] | ||
Commercial paper borrowings outstanding | $ 161 | $ 0 |
Weighted average interest rate of commercial paper outstanding | 0.49% |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Other current liabilities | ||||
Unrealized losses on foreign exchange contracts | $ 13 | $ 16.4 | ||
Product warranty obligations (Note 7) | 27.6 | 27.9 | $ 33.6 | $ 34.1 |
Taxes other than income taxes | 40 | 34.9 | ||
Accrued interest | 16.2 | 16.9 | ||
Income taxes payable | 74.7 | 50.9 | ||
Other | 57.8 | 61 | ||
Other current liabilities | $ 229.3 | $ 208 |
Product Warranty Obligations (D
Product Warranty Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in product warranty obligations | ||
Balance at beginning of period | $ 27.9 | $ 34.1 |
Accruals for warranties issued during the current period | 6.4 | 6.9 |
Adjustments to pre-existing warranties | (0.5) | 0.5 |
Settlements of warranty claims | (6.2) | (7.9) |
Balance at end of period | $ 27.6 | $ 33.6 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits [Member] | ||
Components of net periodic benefit cost (income) | ||
Service cost | $ 22.1 | $ 21.7 |
Interest cost | 42.5 | 42.3 |
Expected return on plan assets | (54.7) | (56.1) |
Amortization: | ||
Prior service credit | (0.7) | (0.7) |
Net actuarial loss | 31.1 | 30 |
Net periodic benefit cost (income) | 40.3 | 37.2 |
Other Postretirement Benefits [Member] | ||
Components of net periodic benefit cost (income) | ||
Service cost | 0.3 | 0.4 |
Interest cost | 0.8 | 1 |
Amortization: | ||
Prior service credit | (2.8) | (3.7) |
Net actuarial loss | 0.6 | 1.2 |
Net periodic benefit cost (income) | $ (1.1) | $ (1.1) |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ (1,334.6) | $ (948) |
Other comprehensive income (loss) before reclassifications | (17.9) | (80.7) |
Amounts reclassified from accumulated other comprehensive loss | 13.5 | 12.8 |
Other comprehensive income (loss) | (4.4) | (67.9) |
Balance at end of period | (1,339) | (1,015.9) |
Pension and other postretirement benefit plan adjustments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,097.1) | (909.4) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 18.4 | 17.6 |
Other comprehensive income (loss) | 18.4 | 17.6 |
Balance at end of period | (1,078.7) | (891.8) |
Accumulated currency translation adjustments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (252.4) | (52.5) |
Other comprehensive income (loss) before reclassifications | (24.4) | (92.9) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive income (loss) | (24.4) | (92.9) |
Balance at end of period | (276.8) | (145.4) |
Net unrealized gains (losses) on cash flow hedges [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 14.9 | 13.9 |
Other comprehensive income (loss) before reclassifications | 6.5 | 12.2 |
Amounts reclassified from accumulated other comprehensive loss | (4.9) | (4.8) |
Other comprehensive income (loss) | 1.6 | 7.4 |
Balance at end of period | $ 16.5 | $ 21.3 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Loss (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | $ 236.9 | $ 287.5 |
Income tax provision | (51.4) | (73.3) |
Net income | 185.5 | 214.2 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 13.5 | 12.8 |
Pension and other postretirement benefit plan adjustments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of prior service credit | (3.5) | (4.4) |
Amortization of net actuarial loss | 31.7 | 31.2 |
Pension and other postretirement benefit plan adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 28.2 | 26.8 |
Income tax provision | (9.8) | (9.2) |
Net income | 18.4 | 17.6 |
Net unrealized gains (losses) on cash flow hedges [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | (6.3) | (4.6) |
Income tax provision | 1.4 | (0.2) |
Net income | (4.9) | (4.8) |
Foreign Exchange Forward [Member] | Sales [Member] | Net unrealized gains (losses) on cash flow hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss | 2.5 | 1.2 |
Foreign Exchange Forward [Member] | Cost of sales [Member] | Net unrealized gains (losses) on cash flow hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss | $ (8.8) | $ (5.8) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 21.70% | 25.50% | |
U.S. statutory rate | 35.00% | 35.00% | |
Gross unrecognized tax benefits | $ 44.3 | $ 43.9 | |
Accrued interest and penalties related to unrecognized tax benefits | 5.3 | $ 5.1 | |
Net reduction of income tax provision related to unrecognized tax benefits, tax penalties, accrued interest and offsetting tax assets | 27.1 | ||
Reasonably possible amount of decrease in gross unrecognized tax benefits for the next twelve months | 31.8 | ||
Reasonably possible amount of net reduction to income tax provision if unrecognized tax benefits were recognized | $ 15.2 | ||
Earliest open year for income tax examinations, U.S. federal | 2,012 | ||
Earliest open tax year for income tax examinations, state, local and non-U.S. | 2,003 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sales and operating results of reportable segments | ||
Sales | $ 1,426.6 | $ 1,574.4 |
Income before income taxes | 236.9 | 287.5 |
Interest expense | (17.4) | (14.9) |
Operating Segments [Member] | ||
Sales and operating results of reportable segments | ||
Income before income taxes | 295.9 | 346.8 |
Architecture & Software [Member] | ||
Sales and operating results of reportable segments | ||
Sales | 642.9 | 707.8 |
Income before income taxes | 176.2 | 221.4 |
Control Products & Solutions [Member] | ||
Sales and operating results of reportable segments | ||
Sales | 783.7 | 866.6 |
Income before income taxes | 119.7 | 125.4 |
Segment Reconciling Items [Member] | ||
Sales and operating results of reportable segments | ||
Purchase accounting depreciation and amortization | (4.7) | (5.4) |
Non-operating pension costs | (18.9) | (16.2) |
Corporate, Non-Segment [Member] | ||
Sales and operating results of reportable segments | ||
General corporate - net | (18) | (22.8) |
Interest expense | $ (17.4) | $ (14.9) |