Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 31, 2017 | Mar. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ROCKWELL AUTOMATION INC. | ||
Entity Central Index Key | 1,024,478 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 19.9 | ||
Entity Common Stock, Shares Outstanding | 128,502,915 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,410.9 | $ 1,526.4 |
Short-term investments | 1,124.6 | 902.8 |
Receivables | 1,135.5 | 1,079 |
Inventories | 558.7 | 526.6 |
Other current assets | 191 | 150.2 |
Total current assets | 4,420.7 | 4,185 |
Property, net | 583.9 | 578.3 |
Goodwill | 1,077.7 | 1,073.9 |
Other intangible assets, net | 238 | 255.3 |
Deferred income taxes | 443.6 | 633.9 |
Other assets | 397.8 | 374.8 |
Total | 7,161.7 | 7,101.2 |
Current liabilities: | ||
Short-term debt | 350.4 | 448.6 |
Current portion of long-term debt | 250 | 0 |
Accounts payable | 623.2 | 543.1 |
Compensation and benefits | 272.6 | 145.6 |
Advance payments from customers and deferred revenue | 240.6 | 214.5 |
Customer returns, rebates and incentives | 188.8 | 176.5 |
Other current liabilities | 220.2 | 447.6 |
Total current liabilities | 2,145.8 | 1,975.9 |
Long-term debt | 1,243.4 | 1,516.3 |
Retirement benefits | 892.5 | 1,430.2 |
Other liabilities | 216.4 | 188.7 |
Commitments and contingent liabilities (Note 15) | ||
Shareowners’ equity: | ||
Common stock ($1.00 par value, shares issued: 181.4) | 181.4 | 181.4 |
Additional paid-in capital | 1,638 | 1,588.2 |
Retained earnings | 6,103.4 | 5,668.4 |
Accumulated other comprehensive loss | (1,179.2) | (1,538.8) |
Common stock in treasury, at cost (shares held: 2017, 53.0; 2016, 52.9) | (4,080) | (3,909.1) |
Total shareowners’ equity | 2,663.6 | 1,990.1 |
Total | $ 7,161.7 | $ 7,101.2 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Shareowners' equity: | ||
Common stock, par value per share | $ 1 | $ 1 |
Common stock, shares issued | 181.4 | 181.4 |
Treasury stock, shares held | 53 | 52.9 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Sales | |||
Products and solutions | $ 5,628.9 | $ 5,239.3 | $ 5,652.2 |
Services | 682.4 | 640.2 | 655.7 |
Total sales | 6,311.3 | 5,879.5 | 6,307.9 |
Cost of sales | |||
Products and solutions | (3,254.3) | (2,982.1) | (3,157.2) |
Services | (432.8) | (421.9) | (447.6) |
Total cost of sales | (3,687.1) | (3,404) | (3,604.8) |
Gross profit | 2,624.2 | 2,475.5 | 2,703.1 |
Selling, general and administrative expenses | (1,591.5) | (1,467.4) | (1,506.4) |
Other income (expense) (Note 13) | 80.9 | 6.3 | (5.5) |
Interest expense | (76.2) | (71.3) | (63.7) |
Income before income taxes | 1,037.4 | 943.1 | 1,127.5 |
Income tax provision (Note 14) | (211.7) | (213.4) | (299.9) |
Net income | $ 825.7 | $ 729.7 | $ 827.6 |
Basic earnings per share: | |||
Basic | $ 6.42 | $ 5.60 | $ 6.15 |
Diluted earnings per share: | |||
Diluted | $ 6.35 | $ 5.56 | $ 6.09 |
Weighted average outstanding shares: | |||
Basic | 128.4 | 130.2 | 134.5 |
Diluted | 129.9 | 131.1 | 135.7 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 825.7 | $ 729.7 | $ 827.6 |
Other comprehensive income (loss): | |||
Pension and other postretirement benefit plan adjustments (net of tax expense (benefit) of $159.3, ($73.7) and ($106.6)) | 312.8 | (142.7) | (187.7) |
Currency translation adjustments | 57.2 | (42.5) | (199.9) |
Net change in unrealized gains and losses on cash flow hedges (net of tax (benefit) expense of ($2.8), ($6.7) and $4.5) | (10.3) | (19) | 1 |
Net change in unrealized gains and losses on available-for-sale investments | (0.1) | 0 | 0 |
Other comprehensive income (loss) | 359.6 | (204.2) | (386.6) |
Comprehensive income | $ 1,185.3 | $ 525.5 | $ 441 |
Consolidated Statement of Comp6
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other comprehensive income (loss): | |||
Tax expense (benefit) from pension and other postretirement benefit plan adjustments | $ 159.3 | $ (73.7) | $ (106.6) |
Tax (benefit) expense from net change in unrealized gains and losses on cash flow hedges | $ (2.8) | $ (6.7) | $ 4.5 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | |||
Net income | $ 825.7 | $ 729.7 | $ 827.6 |
Adjustments to arrive at cash provided by operating activities: | |||
Depreciation | 138.7 | 143.3 | 133.1 |
Amortization of intangible assets | 30.2 | 28.9 | 29.4 |
Share-based compensation expense | 38.5 | 40.5 | 41.5 |
Retirement benefit expense | 176 | 157.1 | 141.3 |
Pension contributions | (254.9) | (44.3) | (41) |
Deferred income taxes | 33.8 | (70.5) | (29.3) |
Gain on sale of business | (60.8) | 0 | 0 |
Net loss (gain) on disposition of property | 0.1 | 1.7 | (0.1) |
Excess income tax benefit from share-based compensation | 0 | (3.3) | (12.4) |
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments: | |||
Receivables | (53) | (18.9) | 73.4 |
Inventories | (30.4) | 4.6 | (2.5) |
Accounts payable | 81.1 | 32.3 | 17.3 |
Advance payments from customers and deferred revenue | 21.3 | 11.7 | 20.7 |
Compensation and benefits | 124.7 | (81.1) | (33.9) |
Income taxes | (22.2) | (8.9) | 27.3 |
Other assets and liabilities | (14.8) | 24.5 | (4.7) |
Cash provided by operating activities | 1,034 | 947.3 | 1,187.7 |
Investing activities: | |||
Capital expenditures | (141.7) | (116.9) | (122.9) |
Acquisition of businesses, net of cash acquired | (1.1) | (139.1) | (21.2) |
Purchases of investments | (1,444.2) | (1,070.7) | (867.6) |
Proceeds from maturities of investments | 912.6 | 886.3 | 762.7 |
Proceeds from sale of investments | 62.6 | 0 | 0 |
Proceeds from sale of business | 94 | 0 | 0 |
Proceeds from sale of property | 1.1 | 0.4 | 2.1 |
Cash used for investing activities | (516.7) | (440) | (246.9) |
Financing activities: | |||
Net (repayment) issuance of short-term debt | (98.2) | 448.6 | (325) |
Issuance of long-term debt, net of discount and issuance costs | 0 | 0 | 594.3 |
Cash dividends | (390.7) | (378.2) | (350.1) |
Purchases of treasury stock | (342.6) | (507.6) | (598.4) |
Proceeds from the exercise of stock options | 181.9 | 36.2 | 60.3 |
Excess income tax benefit from share-based compensation | 0 | 3.3 | 12.4 |
Other financing activities | 0 | 0 | (1.6) |
Cash used for financing activities | (649.6) | (397.7) | (608.1) |
Effect of exchange rate changes on cash | 16.8 | (10.5) | (96.7) |
(Decrease) increase in cash and cash equivalents | (115.5) | 99.1 | 236 |
Cash and cash equivalents at beginning of year | 1,526.4 | 1,427.3 | 1,191.3 |
Cash and cash equivalents at end of year | $ 1,410.9 | $ 1,526.4 | $ 1,427.3 |
Consolidated Statement of Share
Consolidated Statement of Shareowners' Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock |
Beginning balance at Sep. 30, 2014 | $ 1,512.3 | $ 4,839.6 | $ (948) | $ (2,927.2) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Income tax benefit from share-based compensation | 12.4 | |||||
Share-based compensation expense | 40.7 | |||||
Shares delivered under incentive plans | (13.3) | |||||
Net income | $ 827.6 | 827.6 | ||||
Cash dividends (2017, $3.04 per share; 2016, $2.90 per share; 2015, $2.60 per share) | (350.1) | |||||
Shares delivered under incentive plans | (0.2) | 74.6 | ||||
Other comprehensive income (loss) | (386.6) | (386.6) | ||||
Purchases | (606.4) | |||||
Ending balance at Sep. 30, 2015 | 2,256.8 | $ 181.4 | 1,552.1 | 5,316.9 | (1,334.6) | (3,459) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Income tax benefit from share-based compensation | 3.3 | |||||
Share-based compensation expense | 39.5 | |||||
Shares delivered under incentive plans | (6.7) | |||||
Net income | 729.7 | 729.7 | ||||
Cash dividends (2017, $3.04 per share; 2016, $2.90 per share; 2015, $2.60 per share) | (378.2) | |||||
Shares delivered under incentive plans | 0 | 50.3 | ||||
Other comprehensive income (loss) | (204.2) | (204.2) | ||||
Purchases | (500.4) | |||||
Ending balance at Sep. 30, 2016 | 1,990.1 | 181.4 | 1,588.2 | 5,668.4 | (1,538.8) | (3,909.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Income tax benefit from share-based compensation | 0 | |||||
Share-based compensation expense | 37.4 | |||||
Shares delivered under incentive plans | 12.4 | |||||
Net income | 825.7 | 825.7 | ||||
Cash dividends (2017, $3.04 per share; 2016, $2.90 per share; 2015, $2.60 per share) | (390.7) | |||||
Shares delivered under incentive plans | 0 | 166.4 | ||||
Other comprehensive income (loss) | 359.6 | 359.6 | ||||
Purchases | (337.3) | |||||
Ending balance at Sep. 30, 2017 | $ 2,663.6 | $ 181.4 | $ 1,638 | $ 6,103.4 | $ (1,179.2) | $ (4,080) |
Consolidated Statement of Shar9
Consolidated Statement of Shareowners' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Retained Earnings | |||
Cash dividends per share | $ 3.04 | $ 2.90 | $ 2.60 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies Rockwell Automation, Inc. (“Rockwell Automation” or “the Company”), a leader in industrial automation and information, makes its customers more productive and the world more sustainable . Basis of Presentation Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and controlled majority-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Investments in affiliates over which we do not have control but exercise significant influence are accounted for using the equity method of accounting. These affiliated companies are not material individually or in the aggregate to our financial position, results of operations or cash flows. Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results could differ from those estimates. We use estimates in accounting for, among other items, customer returns, rebates and incentives; allowance for doubtful accounts; excess and obsolete inventory; share-based compensation; acquisitions; product warranty obligations; retirement benefits; litigation, claims and contingencies, including environmental matters, conditional asset retirement obligations and contractual indemnifications; and income taxes. We account for changes to estimates and assumptions prospectively when warranted by factually-based experience. Revenue Recognition We recognize revenue when it is realized or realizable and earned. Product and solution sales consist of industrial automation and information solutions; hardware and software products; and custom-engineered systems. Service sales include multi-vendor customer technical support and repair, asset management and optimization consulting and training. All service sales recorded in the Consolidated Statement of Operations are associated with our Control Products & Solutions segment. For approximately 85 percent of our consolidated sales, we record sales when all of the following have occurred: persuasive evidence of a sales agreement exists; pricing is fixed or determinable; collection is reasonably assured; and products have been delivered and acceptance has occurred, as may be required according to contract terms, or services have been rendered. Within this category, we will at times enter into arrangements that involve the delivery of multiple products and/or the performance of services, such as installation and commissioning. The timing of delivery, though varied based upon the nature of the undelivered component, is generally short-term in nature. For these arrangements, revenue is allocated to each deliverable based on that element's relative selling price, provided the delivered element has value to customers on a standalone basis and, if the arrangement includes a general right of return, delivery or performance of the undelivered items is probable and substantially in our control. Relative selling price is obtained from sources such as vendor-specific objective evidence, which is based on our separate selling price for that or a similar item, or from third-party evidence such as how competitors have priced similar items. If such evidence is not available, we use our best estimate of the selling price, which includes various internal factors such as our pricing strategy and market factors. We recognize substantially all of the remainder of our sales as construction-type contracts using either the percentage-of-completion or completed contract methods of accounting. We record sales relating to these contracts using the percentage-of-completion method when we determine that progress toward completion is reasonably and reliably estimable; we use the completed contract method for all others. Under the percentage-of-completion method, we recognize sales and gross profit as work is performed using the relationship between actual costs incurred and total estimated costs at completion. Under the percentage-of-completion method, we adjust sales and gross profit for revisions of estimated total contract costs or revenue in the period the change is identified. We record estimated losses on contracts when they are identified. We use contracts and customer purchase orders to determine the existence of a sales agreement. We use shipping documents and customer acceptance, when applicable, to verify delivery. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. We assess collectibility based on the creditworthiness of the customer as determined by credit evaluations and analysis, as well as the customer’s payment history. Shipping and handling costs billed to customers are included in sales and the related costs are included in cost of sales in the Consolidated Statement of Operations. Returns, Rebates and Incentives Our primary incentive program provides distributors with cash rebates or account credits based on agreed amounts that vary depending on the customer to whom our distributor ultimately sells the product. We also offer various other incentive programs that provide distributors and direct sale customers with cash rebates, account credits or additional products, solutions and services based on meeting specified program criteria. Certain distributors are offered a right to return product, subject to contractual limitations. We record accruals for customer returns, rebates and incentives at the time of revenue recognition based primarily on historical experience. Returns, rebates and incentives are recognized as a reduction of sales if distributed in cash or customer account credits. Rebates and incentives are recognized in cost of sales for additional products, solutions and services to be provided. Accruals are reported as a current liability in our balance sheet or, where a right of setoff exists, as a reduction of accounts receivable. Taxes on Revenue Producing Transactions Taxes assessed by governmental authorities on revenue producing transactions, including sales, value added, excise and use taxes, are recorded on a net basis (excluded from revenue). Cash and Cash Equivalents Cash and cash equivalents include time deposits, certificates of deposit, and other fixed income securities with original maturities of three months or less at the time of purchase. Short-term Investments Short-term investments include time deposits, certificates of deposit and other fixed income securities with original maturities longer than three months at the time of purchase and less than one year from period end. All investments meeting the definition of a security are accounted for as available-for-sale and stated at fair value. All other investments are stated at cost, which approximates fair value. Receivables We record an allowance for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Receivables are stated net of an allowance for doubtful accounts of $24.9 million at September 30, 2017 and $24.5 million at September 30, 2016 . In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $11.9 million at September 30, 2017 and $7.9 million at September 30, 2016 . Inventories Inventories are stated at the lower of cost or market using the first-in, first-out (FIFO) or average cost methods. Market is determined on the basis of estimated realizable values. Property Property, including internal-use software, is stated at cost. We calculate depreciation of property using the straight-line method over 5 to 40 years for buildings and improvements, 3 to 20 years for machinery and equipment and 3 to 8 years for computer hardware and internal-use software. We capitalize significant renewals and enhancements and write off replaced units. We expense maintenance and repairs, as well as renewals of minor amounts. Property acquired during the year that is accrued within accounts payable or other current liabilities at year end is considered to be a non-cash investing activity and is excluded from cash used for capital expenditures in the Consolidated Statement of Cash Flows. Capital expenditures of $29.6 million , $29.9 million and $27.3 million were accrued within accounts payable and other current liabilities at September 30, 2017 , 2016 and 2015 , respectively. Intangible Assets Goodwill and other intangible assets generally result from business acquisitions. We account for business acquisitions by allocating the purchase price to tangible and intangible assets acquired and liabilities assumed at their fair values; the excess of the purchase price over the allocated amount is recorded as goodwill. We review goodwill and other intangible assets with indefinite useful lives for impairment annually or more frequently if events or circumstances indicate impairment may be present. Any excess in carrying value over the estimated fair value is charged to results of operations. We perform our annual impairment test during the second quarter of our fiscal year. We amortize certain customer relationships on an accelerated basis over the period of which we expect the intangible asset to generate future cash flows. We amortize all other intangible assets with finite useful lives on a straight-line basis over their estimated useful lives. Useful lives assigned range from 3 to 15 years for trademarks, 8 to 20 years for customer relationships, 5 to 17 years for technology and 5 to 30 years for other intangible assets. Intangible assets also include costs of software developed or purchased by our software business to be sold, leased or otherwise marketed. Amortization of these computer software products is calculated on a product-by-product basis as the greater of (a) the unamortized cost at the beginning of the year times the ratio of the current year gross revenue for a product to the total of the current and anticipated future gross revenue for that product or (b) the straight-line amortization over the remaining estimated economic life of the product. Impairment of Long-Lived Assets We evaluate the recoverability of the recorded amount of long-lived assets whenever events or changes in circumstances indicate that the recorded amount of an asset may not be fully recoverable. Impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. If we determine that an asset is impaired, we measure the impairment to be recognized as the amount by which the recorded amount of the asset exceeds its fair value. We report assets to be disposed of at the lower of the recorded amount or fair value less cost to sell. We determine fair value using a discounted future cash flow analysis. Derivative Financial Instruments We use derivative financial instruments in the form of 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. We also use these contracts to hedge portions of our net investments in certain non-U.S. subsidiaries against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. Additionally, we use derivative financial instruments in the form of interest rate swap contracts to manage our borrowing costs of certain long-term debt. We designate and account for these derivative financial instruments as hedges under U.S. GAAP. Furthermore, we use foreign currency forward exchange contracts that are not designated as hedges to offset transaction gains or losses associated with some of our assets and liabilities resulting from intercompany loans or other transactions with third parties that are denominated in currencies other than our entities' functional currencies. It is our policy to execute such instruments with global financial institutions that we believe to be creditworthy and not to enter into derivative financial instruments for speculative purposes. Foreign currency forward exchange contracts are usually denominated in currencies of major industrial countries. Foreign Currency Translation We translate assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. dollar into U.S. dollars using exchange rates at the end of the respective period. We translate sales, costs and expenses at average exchange rates effective during the respective period. We report foreign currency translation adjustments as a component of other comprehensive income (loss). Currency transaction gains and losses are included in results of operations in the period incurred. Research and Development Expenses We expense research and development (R&D) costs as incurred; these costs were $348.2 million in 2017 , $319.3 million in 2016 and $307.3 million in 2015 . We include R&D expenses in cost of sales in the Consolidated Statement of Operations. Income Taxes We account for uncertain tax positions by determining whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. For tax positions that meet the more-likely-than-not recognition threshold, we determine the amount of benefit to recognize in the consolidated financial statements based on our assertion of the most likely outcome resulting from an examination, including the resolution of any related appeals or litigation processes. Earnings Per Share We present basic and diluted earnings per share (EPS) amounts. Basic EPS is calculated by dividing earnings available to common shareowners, which is income excluding the allocation to participating securities, by the weighted average number of common shares outstanding during the year, excluding unvested restricted stock. Diluted EPS amounts are based upon the weighted average number of common and common-equivalent shares outstanding during the year. We use the treasury stock method to calculate the effect of outstanding share-based compensation awards, which requires us to compute total employee proceeds as the sum of the amount the employee must pay upon exercise of the award and the amount of unearned share-based compensation costs attributed to future services. Share-based compensation awards for which the total employee proceeds of the award exceed the average market price of the same award over the period have an antidilutive effect on EPS, and accordingly, we exclude them from the calculation. Antidilutive share-based compensation awards for the years ended September 30, 2017 ( 0.7 million shares), 2016 ( 2.2 million shares) and 2015 ( 1.4 million shares) were excluded from the diluted EPS calculation. U.S. GAAP requires unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, to be treated as participating securities and included in the computation of earnings per share pursuant to the two-class method. Our participating securities are composed of unvested restricted stock and non-employee director restricted stock units. The following table reconciles basic and diluted EPS amounts (in millions, except per share amounts): 2017 2016 2015 Net income $ 825.7 $ 729.7 $ 827.6 Less: Allocation to participating securities (0.9 ) (0.7 ) (0.7 ) Net income available to common shareowners $ 824.8 $ 729.0 $ 826.9 Basic weighted average outstanding shares 128.4 130.2 134.5 Effect of dilutive securities Stock options 1.2 0.9 1.1 Performance shares 0.3 — 0.1 Diluted weighted average outstanding shares 129.9 131.1 135.7 Earnings per share: Basic $ 6.42 $ 5.60 $ 6.15 Diluted $ 6.35 $ 5.56 $ 6.09 Share-Based Compensation We recognize share-based compensation expense for equity awards on a straight-line basis over the service period of the award based on the fair value of the award as of the grant date. Product and Workers’ Compensation Liabilities We record accruals for product and workers’ compensation claims in the period in which they are probable and reasonably estimable. Our principal self-insurance programs include product liability and workers’ compensation where we self-insure up to a specified dollar amount. Claims exceeding this amount up to specified limits are covered by insurance policies purchased from commercial insurers. We estimate the liability for the majority of the self-insured claims using our claims experience for the periods being valued. Environmental Matters We record liabilities for environmental matters in the period in which our responsibility is probable and the costs can be reasonably estimated. We make changes to the liabilities in the periods in which the estimated costs of remediation change. At third-party environmental sites where more than one potentially responsible party has been identified, we record a liability for our estimated allocable share of costs related to our involvement with the site, as well as an estimated allocable share of costs related to the involvement of insolvent or unidentified parties. If we determine that recovery from insurers or other third parties is probable and a right of setoff exists, we record the liability net of the estimated recovery. If we determine that recovery from insurers or other third parties is probable but a right of setoff does not exist, we record a liability for the total estimated costs of remediation and a receivable for the estimated recovery. At environmental sites where we are the sole responsible party, we record a liability for the total estimated costs of remediation. Ongoing operating and maintenance expenditures included in our environmental remediation obligations are discounted to present value over the probable future remediation period. Our remaining environmental remediation obligations are undiscounted due to subjectivity of timing and/or amount of future cash payments. Conditional Asset Retirement Obligations We record liabilities for costs related to legal obligations associated with the retirement of a tangible, long-lived asset that results from the acquisition, construction, development or the normal operation of the long-lived asset. The obligation to perform the asset retirement activity is not conditional even though the timing or method may be conditional. Recent Accounting Pronouncements In March 2017, the FASB issued a new standard regarding the presentation of net periodic pension and postretirement benefit costs. This standard requires the service cost component to be reported in the income statement in the same line item as other compensation costs arising from services rendered by the related employees during the period. The other components of net periodic benefit cost are required to be presented separately from the service cost component in either a separate line item or within another appropriate line item with disclosure of where those costs are recorded. This standard also requires that only the service cost component is eligible for capitalization, when applicable. This standard is effective for us for reporting periods starting October 1, 2018. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements and related disclosures. In March 2016, the Financial Accounting Standards Board (FASB) issued a new standard on share-based compensation. This requirement is effective for us no later than October 1, 2017; however, we elected to adopt earlier as of October 1, 2016. This standard requires entities to record the excess income tax benefit or deficiency from share-based compensation within the income tax provision rather than within additional paid-in capital. This change reduced our income tax provision by $29.0 million in the year ended September 30, 2017 . The standard also requires this benefit or deficiency to be classified as an operating cash flow rather than as a financing cash flow. The requirement to record the benefit or deficiency within the income tax provision is effective on a prospective basis. We have elected to adopt the cash flow presentation requirement on a prospective basis. Our adoption of all other requirements under the new standard did not have a material impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued a new standard on accounting for leases that requires lessees to recognize right-of-use assets and lease liabilities for most leases, among other changes to existing lease accounting guidance. The new standard also requires additional qualitative and quantitative disclosures about leasing activities. This standard is effective for us for reporting periods beginning October 1, 2019. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements and related disclosures. 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 principles-based approach to recognizing revenue. The underlying principle is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. 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. We will adopt this new standard under the modified retrospective method in the first quarter of fiscal 2019, with the cumulative effect of initially applying the guidance recognized in retained earnings at the adoption date. We have established a project plan and a cross-functional implementation team to adopt the new standard. We are in the process of identifying and implementing necessary changes to accounting policies, processes, controls and systems to enable compliance with this new standard. We continue to evaluate the impact the adoption of this standard will have on our consolidated financial statements and related disclosures. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2017 | |
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 years ended September 30, 2017 and 2016 were (in millions): Architecture & Software Control Products & Solutions Total Balance as of September 30, 2015 $ 388.0 $ 640.8 $ 1,028.8 Acquisition of businesses 35.0 37.7 72.7 Translation (8.5 ) (19.1 ) (27.6 ) Balance as of September 30, 2016 414.5 659.4 1,073.9 Acquisition of business — 0.8 0.8 Divestiture of business (Note 13) — (10.3 ) (10.3 ) Translation 2.7 10.6 13.3 Balance as of September 30, 2017 $ 417.2 $ 660.5 $ 1,077.7 During the year ended September 30, 2016 , we recognized goodwill of $72.7 million and other intangible assets of $57.5 million resulting from three acquisitions. In March 2016, we acquired MagneMotion Inc., a manufacturer of intelligent conveying systems. In September 2016, we acquired Automation Control Products (ACP), a provider of centralized thin client, remote desktop and server management software, and Maverick Technologies (Maverick), a systems integrator. We assigned the full amount of goodwill related to MagneMotion Inc. and ACP to our Architecture & Software segment and the full amount of goodwill related to Maverick to our Control Products & Solutions segment. Other intangible assets consist of (in millions): September 30, 2017 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 194.8 $ 113.2 $ 81.6 Customer relationships 114.5 61.5 53.0 Technology 104.8 57.9 46.9 Trademarks 32.3 21.1 11.2 Other 11.4 9.8 1.6 Total amortized intangible assets 457.8 263.5 194.3 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 501.5 $ 263.5 $ 238.0 September 30, 2016 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 182.4 $ 103.4 $ 79.0 Customer relationships 112.6 51.9 60.7 Technology 103.9 48.5 55.4 Trademarks 31.4 17.0 14.4 Other 11.0 8.9 2.1 Total amortized intangible assets 441.3 229.7 211.6 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 485.0 $ 229.7 $ 255.3 Computer software products represent costs of computer software to be sold, leased or otherwise marketed. Computer software products amortization expense was $9.8 million in 2017 , $11.5 million in 2016 and $9.4 million in 2015 . Estimated amortization expense is $27.5 million in 2018 , $24.5 million in 2019 , $21.4 million in 2020 , $20.6 million in 2021 and $18.7 million in 2022 . We performed our annual evaluation of goodwill and indefinite life intangible assets for impairment as required by U.S. GAAP during the second quarter of 2017 and concluded that these assets are not impaired. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of (in millions): September 30, 2017 2016 Finished goods $ 218.7 $ 215.8 Work in process 168.0 158.0 Raw materials 172.0 152.8 Inventories $ 558.7 $ 526.6 |
Property, net
Property, net | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, net | Property, net Property consists of (in millions): September 30, 2017 2016 Land $ 5.2 $ 4.5 Buildings and improvements 351.6 333.7 Machinery and equipment 1,145.8 1,085.1 Internal-use software 461.5 451.1 Construction in progress 131.7 108.4 Total 2,095.8 1,982.8 Less accumulated depreciation (1,511.9 ) (1,404.5 ) Property, net $ 583.9 $ 578.3 |
Long-term and Short-term Debt
Long-term and Short-term Debt | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term and Short-term Debt | Long-term and Short-term Debt Long-term debt consists of (in millions): September 30, 2017 2016 5.65% notes, payable in December 2017 250.0 250.0 2.050% notes, payable in March 2020 298.7 305.1 2.875% notes, payable in March 2025 296.7 314.4 6.70% debentures, payable in January 2028 250.0 250.0 6.25% debentures, payable in December 2037 250.0 250.0 5.20% debentures, payable in January 2098 200.0 200.0 Unamortized discount and other (52.0 ) (53.2 ) Total $ 1,493.4 $ 1,516.3 Less current portion (250.0 ) — Long-term debt 1,243.4 1,516.3 In February 2015, upon issuance of our notes payable in March 2020 (2020 Notes) and March 2025 (2025 Notes), we entered into fixed-to-floating interest rate swap contracts with multiple banks that effectively converted the $600.0 million aggregate principal amount to floating rate debt, each at a rate based on three-month LIBOR plus a fixed spread. The effective floating interest rates were 1.755 percent for the 2020 Notes and 2.165 percent for the 2025 Notes at September 30, 2017 . The aggregate fair value of the interest rate swap contracts at September 30, 2017 was a net unrealized loss of $4.6 million . We have designated these swaps as fair value hedges. The individual contracts are recorded in Other liabilities in the Consolidated Balance Sheet with corresponding adjustments to the carrying value of the underlying debt. Additional information related to our interest rate swap contracts is included in Note 9. At September 30, 2017 and 2016 , our total borrowing capacity under our unsecured revolving credit facility expiring in March 2020 was $1.0 billion . We can increase the aggregate amount of this credit facility by up to $350.0 million , subject to the consent of the banks in the credit facility. We have not borrowed against this credit facility during the years ended September 30, 2017 or 2016 . Borrowings under this credit facility bear interest based on short-term money market rates in effect during the period the borrowings are outstanding. In December 2016, we amended the financial covenant under this credit facility. The previous financial covenant, which limited our debt-to-total-capital ratio to 60 percent , was replaced with a minimum EBITDA-to-interest ratio of 3.0 to 1.0. The EBITDA-to-interest ratio is defined in the amendment as the ratio of consolidated EBITDA (as defined in the amendment) for the preceding four quarters to consolidated interest expense for the same period. We believe the new covenant provides us greater financial flexibility. Separate short-term unsecured credit facilities of approximately $128.4 million at September 30, 2017 were available to non-U.S. subsidiaries. Borrowings under our non-U.S. credit facilities at September 30, 2017 and 2016 were not significant. There are no significant commitment fees or compensating balance requirements under any of our credit facilities. Our short-term debt obligations are primarily comprised of commercial paper borrowings. Commercial paper borrowings outstanding were $350.0 million at September 30, 2017 and $448.6 million at September 30, 2016 . The weighted average interest rate of the commercial paper outstanding was 1.26 percent at September 30, 2017 and 0.57 percent at September 30, 2016 . Interest payments were $74.2 million during 2017 , $69.2 million during 2016 and $60.8 million during 2015 . |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Sep. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of (in millions): September 30, 2017 2016 Unrealized losses on foreign exchange contracts (Note 9) $ 31.3 $ 15.6 Product warranty obligations (Note 7) 28.5 28.0 Taxes other than income taxes 42.7 43.1 Accrued interest 16.9 16.9 Income taxes payable 32.6 28.6 Rocky Flats settlement (Note 18) — 242.5 Other 68.2 72.9 Other current liabilities $ 220.2 $ 447.6 |
Product Warranty Obligations
Product Warranty Obligations | 12 Months Ended |
Sep. 30, 2017 | |
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 known and reasonably estimable. Changes in product warranty obligations were (in millions): September 30, 2017 2016 Beginning balance $ 28.0 $ 27.9 Warranties recorded at time of sale 25.8 25.0 Adjustments to pre-existing warranties (0.2 ) 1.2 Settlements of warranty claims (25.1 ) (26.1 ) Ending balance $ 28.5 $ 28.0 |
Investments
Investments | 12 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Investment | Investments We invest in certificates of deposit, time deposits, commercial paper and other fixed income securities. All investments meeting the U.S. GAAP definition of a security were classified as available-for-sale as of September 30, 2017 and 2016 . Unrealized gains and losses on available-for-sale investments are included in our Consolidated Balance Sheet as a component of accumulated other comprehensive loss, net of any deferred taxes. Realized gains and losses are included in net income. Our investments consist of (in millions): September 30, 2017 2016 Certificates of deposit and time deposits $ 1,005.3 $ 902.8 Commercial paper 20.3 — Corporate debt securities 199.4 — Government securities 116.8 — Asset-backed securities 45.8 — Total $ 1,387.6 $ 902.8 Pre-tax gross unrealized gains and losses on available-for-sale investments were not material at September 30, 2017 . Pre-tax gross realized gains and losses on available-for-sale investments were not material for the years ended September 30, 2017 and 2016 . At September 30, 2017 , there were $1.0 million of outstanding purchases of investments recorded in accounts payable that did not settle until the next fiscal year. We evaluated all investments for which the fair value was less than amortized cost for impairment on an individual security basis at September 30, 2017 . This assessment included consideration of our intent and ability to hold the security and the credit risks specific to each security. We determined that the declines in fair value of these investments were not other than temporary as of September 30, 2017 , and accordingly we did not recognize any impairment charges in net income. The table below summarizes the contractual maturities of our investments as of September 30, 2017 (in millions). Actual maturities may differ from the contractual maturities below as borrowers may have the right to prepay certain obligations. Fair Value Less than one year $ 1,124.6 Due in one to five years 263.0 Total $ 1,387.6 Classification of our investments as current or noncurrent is based on the nature of the investment and when the investment is reasonably expected to be realized. These investments were included in the following line items within the Consolidated Balance Sheet (in millions): September 30, 2017 2016 Short-term investments $ 1,124.6 $ 902.8 Other assets 263.0 — Total $ 1,387.6 $ 902.8 Information regarding the fair value of our investments is contained in Note 9 in the Financial Statements. |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurement | 12 Months Ended |
Sep. 30, 2017 | |
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 and foreign currency denominated debt obligations to manage certain foreign currency risks. We also use interest rate swap contracts to manage risks associated with interest rate fluctuations. The following information explains how we use and value these types of derivative instruments and how they impact our consolidated financial statements. Additional information related to the impacts of cash flow hedges on other comprehensive income (loss) is included in Note 10. Types of Derivative Instruments and Hedging Activities Cash Flow Hedges We enter into foreign currency forward exchange 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). We report in other comprehensive income (loss) the effective portion of the gain or loss on derivative financial instruments that we designate and that qualify as cash flow hedges. We reclassify these gains or losses into earnings in the same periods when the hedged transactions affect earnings. To the extent forward exchange contracts designated as cash flow hedges are ineffective, changes in value are recorded in earnings through the maturity date. There was no impact on earnings due to ineffective cash flow hedges. At September 30, 2017 , we had a U.S. dollar-equivalent gross notional amount of $741.2 million of foreign currency forward exchange contracts designated as cash flow hedges. The pre-tax amount of (losses) gains recorded in other comprehensive income (loss) related to cash flow hedges that would have been recorded in the Consolidated Statement of Operations had they not been so designated was (in millions): 2017 2016 2015 Forward exchange contracts $ (16.1 ) $ (6.6 ) $ 41.7 The pre-tax amount of gains (losses) reclassified from accumulated other comprehensive loss into the 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 (in millions): 2017 2016 2015 Sales $ 0.3 $ (5.5 ) $ (8.4 ) Cost of sales (2.8 ) 25.5 44.6 Selling, general and administrative expenses (0.5 ) (0.9 ) — Total $ (3.0 ) $ 19.1 $ 36.2 Approximately $15.4 million of pre-tax net unrealized losses on cash flow hedges as of September 30, 2017 will be reclassified into earnings during the next 12 months. We expect that these net unrealized losses will be offset when the hedged items are recognized in earnings. Net Investment Hedges We use foreign currency forward exchange contracts and foreign currency denominated debt obligations to hedge portions of our net investments in non-U.S. subsidiaries (net investment hedges) against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. For all instruments that are designated as net investment hedges and meet effectiveness requirements, the net changes in value of the designated hedging instruments are recorded in accumulated other comprehensive loss within shareowners’ equity where they offset gains and losses recorded on our net investments globally. To the extent forward exchange contracts or foreign currency denominated debt designated as net investment hedges are ineffective, changes in value are recorded in earnings through the maturity date. There was no impact on earnings due to ineffective net investment hedges. At September 30, 2017 , we had a gross notional amount of $677.3 million of foreign currency forward exchange contracts designated as net investment hedges. The pre-tax amount of (losses) gains recorded in other comprehensive income (loss) related to net investment hedges that would have been recorded in the Consolidated Statement of Operations had they not been so designated was (in millions): 2017 2016 2015 Forward exchange contracts $ (16.3 ) $ 2.3 $ (4.4 ) Foreign currency denominated debt — 0.8 1.0 Total $ (16.3 ) $ 3.1 $ (3.4 ) Fair Value Hedges We use interest rate swap contracts to manage the borrowing costs of certain long-term debt. In February 2015, we issued $600.0 million in aggregate principal amount of fixed rate notes. Upon issuance of these notes, we entered into fixed-to-floating interest rate swap contracts that effectively convert these notes from fixed rate debt to floating rate debt. We designate these contracts as fair value hedges because they hedge the changes in fair value of the fixed rate notes resulting from changes in interest rates. The changes in value of these fair value hedges are recorded as gains or losses in interest expense and are offset by the losses or gains on the underlying debt instruments, which are also recorded in interest expense. There was no impact on earnings due to ineffective fair value hedges. At September 30, 2017 , the aggregate notional value of our interest rate swaps designated as fair value hedges was $600.0 million . The pre-tax amount of net (losses) gains recognized within the Consolidated Statement of Operations related to derivative instruments designated as fair value hedges, which fully offset the related net gains and losses on the hedged debt instruments during the periods presented, was (in millions): 2017 2016 2015 Interest expense $ (24.1 ) $ 14.1 $ 5.4 Derivatives Not Designated as Hedging Instruments 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 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. Gains and losses on derivative financial instruments for which we do not elect hedge accounting are recognized in the Consolidated Statement of Operations in each period, based on the change in the fair value of the derivative financial instruments. At September 30, 2017 , we had a U.S. dollar-equivalent gross notional amount of $224.9 million of foreign currency forward exchange contracts not designated as hedging instruments. The pre-tax amount of (losses) gains from forward exchange contracts not designated as hedging instruments recognized in the Consolidated Statement of Operations was (in millions): 2017 2016 2015 Cost of sales $ (1.8 ) $ 0.9 $ — Other income (expense) (8.6 ) (11.1 ) 20.8 Total $ (10.4 ) $ (10.2 ) $ 20.8 Fair Value of Financial Instruments 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. Derivative Instruments We recognize all derivative financial instruments as either assets or liabilities at fair value in the Consolidated Balance Sheet. 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 fiscal 2017 , 2016 or 2015 . It is our policy to execute such instruments with major financial institutions that we believe to be creditworthy and not to enter into derivative financial instruments for speculative purposes. We diversify our foreign currency forward exchange contracts among counterparties to minimize exposure to any one of these entities. Our foreign currency forward exchange contracts are usually denominated in currencies of major industrial countries. The U.S. dollar-equivalent gross notional amount of our forward exchange contracts totaled $1,643.4 million at September 30, 2017 . Currency pairs (buy/sell) comprising the most significant contract notional values were United States dollar (USD)/euro, USD/Swiss franc, USD/Canadian dollar and Swiss franc/euro. We value interest rate swap contracts using a market approach based on observable market inputs including publicized swap curves. The fair value of our derivatives and their location in our Consolidated Balance Sheet were (in millions): Fair Value (Level 2) Derivatives Designated as Hedging Instruments Balance Sheet Location September 30, 2017 September 30, 2016 Forward exchange contracts Other current assets $ 12.4 $ 5.2 Forward exchange contracts Other assets 0.3 0.6 Forward exchange contracts Other current liabilities (19.1 ) (11.7 ) Forward exchange contracts Other liabilities (5.1 ) (1.8 ) Interest rate swap contracts Other assets — 19.5 Interest rate swap contracts Other liabilities (4.6 ) — Total $ (16.1 ) $ 11.8 Fair Value (Level 2) Derivatives Not Designated as Hedging Instruments Balance Sheet Location September 30, 2017 September 30, 2016 Forward exchange contracts Other current assets $ 0.8 $ 4.4 Forward exchange contracts Other current liabilities (12.2 ) (3.9 ) Total $ (11.4 ) $ 0.5 Investments We recognize all available-for-sale investments at fair value in the Consolidated Balance Sheet. The valuation methodologies used for our investments measured at fair value are described as follows. Certificates of deposit and time deposits — These investments are stated at cost, which approximates fair value. Commercial paper — These investments are stated at amortized cost, which approximates fair value. Corporate debt securities — Valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks. Government securities — Valued at the most recent closing price on the active market on which the individual securities are traded or, absent an active market, utilizing observable inputs such as closing prices in less frequently traded markets. Asset-backed securities — Valued using a discounted cash flow approach that maximizes observable inputs, such as current yields of benchmark instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. We did not hold any Level 3 investments or have any transfers between levels of fair value measurements during the periods presented. Fair values of our investments were (in millions): September 30, 2017 Level 1 Level 2 Level 3 Total Certificates of deposit and time deposits $ — $ 1,005.3 $ — $ 1,005.3 Commercial paper — 20.3 — 20.3 Corporate debt securities — 199.4 — 199.4 Government securities 98.9 17.9 — 116.8 Asset-backed securities — 45.8 — 45.8 Total $ 98.9 $ 1,288.7 $ — $ 1,387.6 September 30, 2016 Level 1 Level 2 Level 3 Total Certificates of deposit and time deposits $ — $ 902.8 $ — $ 902.8 Commercial paper — — — — Corporate debt securities — — — — Government securities — — — — Asset-backed securities — — — — Total $ — $ 902.8 $ — $ 902.8 Other Financial Instruments We also hold financial instruments consisting of cash, short-term debt and long-term debt. The fair values of our cash and short-term debt approximate their carrying amounts as reported in our 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 fair value of long-term debt below considers the terms of the debt excluding the impact of derivative and hedging activity. The carrying amount of a portion of our long-term debt is impacted by fixed-to-floating interest rate swap contracts that are designated as fair value hedges. The following table presents the carrying amounts and estimated fair values of financial instruments not measured at fair value in the Consolidated Balance Sheet (in millions): September 30, 2017 Fair Value Carrying Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,410.9 $ 1,410.9 $ 1,299.4 $ 111.5 $ — Short-term debt 350.4 350.4 — 350.4 — Current portion of long-term debt 250.0 251.6 — 251.6 — Long-term debt 1,243.4 1,452.6 — 1,452.6 — September 30, 2016 Fair Value Carrying Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,526.4 $ 1,526.4 $ 1,480.6 $ 45.8 $ — Short-term debt 448.6 448.6 — 448.6 — Current portion of long-term debt — — — — — Long-term debt 1,516.3 1,780.5 — 1,780.5 — |
Shareowners' Equity
Shareowners' Equity | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Shareowners' Equity | Shareowners’ Equity Common Stock At September 30, 2017 , the authorized stock of the Company consisted of one billion shares of common stock, par value $1.00 per share, and 25 million shares of preferred stock, without par value. At September 30, 2017 , 10.8 million shares of authorized common stock were reserved for various incentive plans. Changes in outstanding common shares are summarized as follows (in millions): 2017 2016 2015 Beginning balance 128.5 132.4 136.7 Treasury stock purchases (2.3 ) (4.6 ) (5.4 ) Shares delivered under incentive plans 2.2 0.7 1.1 Ending balance 128.4 128.5 132.4 At September 30, 2017 there were no outstanding common stock share repurchases recorded in accounts payable. At September 30, 2016 there were $5.3 million of outstanding common stock share repurchases recorded in accounts payable that did not settle until 2017 . Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component for the years ended September 30, 2017 , 2016 and 2015 were (in millions): Pension and other postretirement benefit plan adjustments, net of tax (Note 12) Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Net unrealized gains (losses) on available-for-sale investments, 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 (257.3 ) (199.9 ) 36.7 — (420.5 ) Amounts reclassified from accumulated other comprehensive loss 69.6 — (35.7 ) — 33.9 Other comprehensive (loss) income (187.7 ) (199.9 ) 1.0 — (386.6 ) Balance as of September 30, 2015 $ (1,097.1 ) $ (252.4 ) $ 14.9 $ — $ (1,334.6 ) Other comprehensive (loss) income before reclassifications (216.5 ) (42.5 ) (3.6 ) — (262.6 ) Amounts reclassified from accumulated other comprehensive loss 73.8 — (15.4 ) — 58.4 Other comprehensive (loss) income (142.7 ) (42.5 ) (19.0 ) — (204.2 ) Balance as of September 30, 2016 $ (1,239.8 ) $ (294.9 ) $ (4.1 ) $ — $ (1,538.8 ) Other comprehensive income (loss) before reclassifications 215.2 57.2 (12.3 ) (0.1 ) 260.0 Amounts reclassified from accumulated other comprehensive loss 97.6 — 2.0 — 99.6 Other comprehensive income (loss) $ 312.8 $ 57.2 $ (10.3 ) $ (0.1 ) $ 359.6 Balance as of September 30, 2017 $ (927.0 ) $ (237.7 ) $ (14.4 ) $ (0.1 ) $ (1,179.2 ) The reclassifications out of accumulated other comprehensive loss to the Consolidated Statement of Operations for the years ended September 30, 2017 , 2016 and 2015 were (in millions): Year Ended September 30, Affected Line in the Consolidated Statement of Operations 2017 2016 2015 Pension and other postretirement benefit plan adjustments: Amortization of prior service credit $ (9.8 ) $ (14.0 ) $ (17.2 ) (a) Amortization of net actuarial loss 155.2 126.8 123.2 (a) Settlements 2.8 — — (a) 148.2 112.8 106.0 Income before income taxes (50.6 ) (39.0 ) (36.4 ) Income tax provision $ 97.6 $ 73.8 $ 69.6 Net income Net unrealized (gains) losses on cash flow hedges: Forward exchange contracts $ (0.3 ) $ 5.5 $ 8.4 Sales Forward exchange contracts 2.8 (25.5 ) (44.6 ) Cost of sales Forward exchange contracts 0.5 0.9 — Selling, general and administrative expenses 3.0 (19.1 ) (36.2 ) Income before income taxes (1.0 ) 3.7 0.5 Income tax provision $ 2.0 $ (15.4 ) $ (35.7 ) Net income Total reclassifications $ 99.6 $ 58.4 $ 33.9 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 costs. See Note 12 for further information. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation During 2017 , 2016 and 2015 we recognized $38.5 million , $40.5 million and $41.5 million of pre-tax share-based compensation expense, respectively. The total income tax benefit related to share-based compensation expense was $12.3 million , $12.9 million and $13.2 million during 2017 , 2016 and 2015 , respectively. We recognize compensation expense on grants of share-based compensation awards on a straight-line basis over the service period of each award recipient. As of September 30, 2017 , total unrecognized compensation cost related to share-based compensation awards was $34.6 million , net of estimated forfeitures, which we expect to recognize over a weighted average period of approximately 1.7 years . Our 2012 Long-Term Incentives Plan, as amended (2012 Plan), authorizes us to deliver up to 11.8 million shares of our common stock upon exercise of stock options or upon grant or in payment of stock appreciation rights, performance shares, performance units, restricted stock units and restricted stock. Our 2003 Directors Stock Plan, as amended, authorizes us to deliver up to 0.5 million shares of our common stock upon exercise of stock options or upon grant of shares of our common stock and restricted stock units. Shares relating to awards under our 2012 Plan, 2008 Long-Term Incentives Plan, as amended, or our 2000 Long-Term Incentives Plan, as amended, that terminate by expiration, forfeiture, cancellation or otherwise without the issuance or delivery of shares will be available for further awards under the 2012 Plan. Approximately 5.6 million shares under our 2012 Plan and 0.2 million shares under our 2003 Directors Stock Plan remain available for future grant or payment at September 30, 2017 . We use treasury stock to deliver shares of our common stock under these plans. Our 2012 Plan does not permit share-based compensation awards to be granted after February 7, 2022. Stock Options We have granted non-qualified and incentive stock options to purchase our common stock under various incentive plans at prices equal to the fair market value of the stock on the grant dates. The exercise price for stock options granted under the plans may be paid in cash, already-owned shares of common stock or a combination of cash and such shares. Stock options expire ten years after the grant date and vest ratably over three years . The per-share weighted average fair value of stock options granted during the years ended September 30, 2017 , 2016 and 2015 was $25.70 , $21.28 and $26.70 , respectively. The total intrinsic value of stock options exercised was $141.1 million , $21.9 million and $46.1 million during 2017 , 2016 and 2015 , respectively. We estimated the fair value of each stock option on the date of grant using the Black-Scholes pricing model and the following assumptions: 2017 2016 2015 Average risk-free interest rate 1.85 % 1.76 % 1.61 % Expected dividend yield 2.21 % 2.78 % 2.25 % Expected volatility 24 % 29 % 31 % Expected term (years) 5.1 5.1 5.1 The average risk-free interest rate is based on U.S. Treasury security rates corresponding to the expected term in effect as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of our common stock as of the grant date. We determined expected volatility using daily historical volatility of our stock price over the most recent period corresponding to the expected term as of the grant date. We determined the expected term of the stock options using historical data adjusted for the estimated exercise dates of unexercised options. A summary of stock option activity for the year ended September 30, 2017 is: Shares (in thousands) Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (years) Aggregate Intrinsic Value of In-The-Money Options (in millions) Outstanding at October 1, 2016 5,098 $ 90.96 Granted 1,024 138.09 Exercised (2,168 ) 81.70 Forfeited (59 ) 122.45 Canceled (6 ) 65.54 Outstanding at September 30, 2017 3,889 108.10 7.2 $ 272.6 Vested or expected to vest at September 30, 2017 2,642 92.07 5.7 227.6 Exercisable at September 30, 2017 1,847 92.14 5.6 158.9 Performance Share Awards Certain officers and key employees are also eligible to receive shares of our common stock in payment of performance share awards granted to them. Grantees of performance shares will be eligible to receive shares of our common stock depending upon our total shareowner return, assuming reinvestment of all dividends, relative to the performance of companies in the S&P 500 Index over a three -year period. The awards actually earned will range from zero percent to 200 percent of the targeted number of performance shares for the three-year performance periods and will be paid, to the extent earned, in the fiscal quarter following the end of the applicable three-year performance period. A summary of performance share activity for the year ended September 30, 2017 is as follows: Performance Shares (in thousands) Wtd. Avg. Grant Date Share Fair Value Outstanding at October 1, 2016 240 $ 98.73 Granted (1) 42 174.37 Adjustment for performance results achieved (2) (58 ) 108.48 Vested and issued (6 ) 108.48 Forfeited (28 ) 94.41 Outstanding at September 30, 2017 190 112.64 (1) Performance shares granted assuming achievement of performance goals at target. (2) Adjustments were due to the number of shares vested under the fiscal 2014 awards at the end of the three-year performance period ended September 30, 2016 being lower than the target number of shares. The following table summarizes information about performance shares vested during the years ended September 30, 2017 , 2016 and 2015 : 2017 2016 2015 Percent payout 10 % 93 % 187 % Shares vested (in thousands) 6 67 154 Total fair value of shares vested (in millions) $ 0.9 $ 7.1 $ 17.2 For the three-year performance period ending September 30, 2017 , the payout will be 187 percent of the target number of shares, with a maximum of 139,000 shares to be delivered in payment under the awards in December 2017 . The per-share fair value of performance share awards granted during the years ended September 30, 2017 , 2016 and 2015 was $174.37 , $87.64 and $103.70 , respectively, which we determined using a Monte Carlo simulation and the following assumptions: 2017 2016 2015 Average risk-free interest rate 1.35 % 1.21 % 0.96 % Expected dividend yield 2.20 % 2.75 % 2.22 % Expected volatility 23 % 22 % 24 % The average risk-free interest rate is based on the three-year U.S. Treasury security rate in effect as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of our common stock as of the grant date. The expected volatilities were determined using daily historical volatility for the most recent three-year period as of the grant date. Restricted Stock and Restricted Stock Units We grant restricted stock and restricted stock units to certain employees, and non-employee directors may elect to receive a portion of their compensation in restricted stock units. Restrictions on employee restricted stock and employee restricted stock units generally lapse over periods ranging from one to five years . Director restricted stock units generally are payable upon retirement. We value restricted stock and restricted stock units at the closing market value of our common stock on the date of grant. The weighted average grant date fair value of restricted stock and restricted stock unit awards granted during the years ended September 30, 2017 , 2016 and 2015 was $138.32 , $105.38 and $115.02 , respectively. The total fair value of shares vested during the years ended September 30, 2017 , 2016 , and 2015 was $7.6 million , $7.0 million , and $8.0 million , respectively. A summary of restricted stock and restricted stock unit activity for the year ended September 30, 2017 is as follows: Restricted Stock and Restricted Stock Units (in thousands) Wtd. Avg. Grant Date Share Fair Value Outstanding at October 1, 2016 156 $ 108.63 Granted 52 138.32 Vested (54 ) 109.82 Forfeited (13 ) 110.51 Outstanding at September 30, 2017 141 118.87 We also granted approximately 8,000 shares of unrestricted common stock to non-employee directors during the year ended September 30, 2017 . The weighted average grant date fair value of the unrestricted stock awards granted during the years ended September 30, 2017 , 2016 , and 2015 was $129.68 , $98.79 and $111.43 , respectively. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits We sponsor funded and unfunded pension plans and other postretirement benefit plans for our employees. The pension plans cover most of our employees and provide for monthly pension payments to eligible employees after retirement. Pension benefits for salaried employees generally are based on years of credited service and average earnings. Pension benefits for hourly employees are primarily based on specified benefit amounts and years of service. Effective July 1, 2010 we closed participation in our U.S. and Canada pension plans to employees hired after June 30, 2010. Employees hired after June 30, 2010 are instead eligible to participate in employee savings plans. The Company contributions are based on age and years of service and range from 3% to 7% of eligible compensation. Effective October 1, 2010, we also closed participation in our U.K. pension plan to employees hired after September 30, 2010 and these employees are now eligible for a defined contribution plan. Benefits to be provided to plan participants hired before July 1, 2010 or October 1, 2010, respectively, are not affected by these changes. Our policy with respect to funding our pension obligations is to fund the minimum amount required by applicable laws and governmental regulations. We were not required to make contributions to satisfy minimum funding requirements in our U.S. pension plans. However, we made a voluntary contribution of $200.0 million to our U.S. qualified pension plan in 2017. We did not make voluntary contributions to our U.S. qualified pension plan in 2016 or 2015 . Other postretirement benefits are primarily in the form of retirement medical plans that cover most of our employees in the U.S. and Canada and provide for the payment of certain medical costs of eligible employees and dependents after retirement. The components of net periodic benefit cost (income) are (in millions): Other Postretirement Pension Benefits Benefits 2017 2016 2015 2017 2016 2015 Service cost $ 97.0 $ 88.0 $ 85.7 $ 1.4 $ 1.3 $ 1.5 Interest cost 151.6 169.5 167.2 2.5 3.3 4.1 Expected return on plan assets (225.2 ) (218.3 ) (223.2 ) — — — Amortization: Prior service credit (3.7 ) (2.9 ) (2.7 ) (6.1 ) (11.1 ) (14.5 ) Net actuarial loss 152.9 124.5 118.7 2.3 2.3 4.5 Special termination benefit 0.5 0.5 — — — — Settlements 2.8 — — — — — Net periodic benefit cost (income) $ 175.9 $ 161.3 $ 145.7 $ 0.1 $ (4.2 ) $ (4.4 ) Benefit obligation, plan assets, funded status and net liability information is summarized as follows (in millions): Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 Benefit obligation at beginning of year $ 4,785.9 $ 4,282.2 $ 86.9 $ 93.3 Service cost 97.0 88.0 1.4 1.3 Interest cost 151.6 169.5 2.5 3.3 Actuarial (gains) losses (221.9 ) 515.4 (3.8 ) (0.2 ) Plan amendments (6.9 ) (10.0 ) — — Plan participant contributions 3.9 4.3 3.4 4.0 Benefits paid (251.9 ) (232.0 ) (13.4 ) (14.9 ) Special termination benefit 0.5 0.5 — — Settlements (13.8 ) — — — Curtailments (1.0 ) — — — Currency translation and other 41.6 (32.0 ) 0.8 0.1 Benefit obligation at end of year 4,585.0 4,785.9 77.8 86.9 Plan assets at beginning of year 3,447.9 3,262.5 — — Actual return on plan assets 315.5 394.3 — — Company contributions 254.9 44.3 10.0 10.9 Plan participant contributions 3.9 4.3 3.4 4.0 Benefits paid (251.9 ) (232.0 ) (13.4 ) (14.9 ) Settlements (13.8 ) — — — Currency translation and other 31.8 (25.5 ) — — Plan assets at end of year 3,788.3 3,447.9 — — Funded status of plans $ (796.7 ) $ (1,338.0 ) $ (77.8 ) $ (86.9 ) Net amount on balance sheet consists of: Other assets $ 10.6 $ 0.1 $ — $ — Compensation and benefits (11.7 ) (11.6 ) (9.5 ) (10.5 ) Retirement benefits (795.6 ) (1,326.5 ) (68.3 ) (76.4 ) Net amount on balance sheet $ (796.7 ) $ (1,338.0 ) $ (77.8 ) $ (86.9 ) Amounts included in accumulated other comprehensive loss, net of tax, at September 30, 2017 and 2016 which have not yet been recognized in net periodic benefit cost are as follows (in millions): Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 Prior service cost (credit) $ 5.3 $ 4.9 $ (12.2 ) $ (15.9 ) Net actuarial loss 921.9 1,235.1 12.0 15.7 Total $ 927.2 $ 1,240.0 $ (0.2 ) $ (0.2 ) During 2017 , we recognized prior service credits of $9.8 million ( $6.4 million net of tax) and net actuarial losses of $155.2 million ( $101.8 million net of tax) in pension and other postretirement net periodic benefit cost, which were included in accumulated other comprehensive loss at September 30, 2016 . In 2018 , we expect to recognize prior service credits of $4.9 million ( $3.5 million net of tax), and net actuarial losses of $115.4 million ( $75.2 million net of tax) in pension and other postretirement net periodic benefit cost, which are included in accumulated other comprehensive loss at September 30, 2017 . The accumulated benefit obligation for our pension plans was $4,252.2 million and $4,429.1 million at September 30, 2017 and 2016 , respectively. Net Periodic Benefit Cost Assumptions Significant assumptions used in determining net periodic benefit cost included in the Consolidated Statement of Operations for the period ended September 30 are (in weighted averages): Pension Benefits September 30, Other Postretirement Benefits September 30, 2017 2016 2015 2017 2016 2015 U.S. Plans Discount rate 3.75 % 4.55 % 4.50 % 3.10 % 3.85 % 3.65 % Expected return on plan assets 7.50 % 7.50 % 7.50 % — — — Compensation increase rate 3.50 % 3.75 % 3.75 % — — — Non-U.S. Plans Discount rate 1.77 % 2.67 % 3.01 % 2.80 % 3.60 % 3.50 % Expected return on plan assets 5.12 % 5.21 % 5.31 % — — — Compensation increase rate 2.86 % 3.11 % 3.16 % — — — Net Benefit Obligation Assumptions Significant assumptions used in determining the benefit obligations included in the Consolidated Balance Sheet are (in weighted averages): Pension Benefits September 30, Other Postretirement Benefits September 30, 2017 2016 2017 2016 U.S. Plans Discount rate 3.90 % 3.75 % 3.40 % 3.10 % Compensation increase rate 3.50 % 3.50 % — — Health care cost trend rate (1) — — 6.50 % 6.50 % Non-U.S. Plans Discount rate 2.30 % 1.77 % 3.20 % 2.80 % Compensation increase rate 2.99 % 2.86 % — — Health care cost trend rate (1) — — 4.50 % 4.95 % (1) The health care cost trend rate reflects the estimated increase in gross medical claims costs. As a result of the plan amendment adopted effective October 1, 2002, our effective per person retiree medical cost increase is zero percent beginning in 2005 for the majority of our postretirement benefit plans. For our other plans, we assume the gross health care cost trend rate will decrease to 5.50% in 2019 for U.S. Plans and will not change in 2018 for Non-U.S. Plans. In determining the expected long-term rate of return on assets assumption, we consider actual returns on plan assets over the long term, adjusted for forward-looking considerations, such as inflation, interest rates, equity performance and the active management of the plan’s invested assets. We also considered our current and expected mix of plan assets in setting this assumption. This resulted in the selection of the weighted average long-term rate of return on assets assumption. Our global weighted-average targeted and actual asset allocations at September 30, by asset category, are: Allocation Target September 30, Asset Category Range Allocations 2017 2016 Equity securities 40% – 65% 52% 50% 50% Debt securities 30% – 50% 40% 42% 41% Other 0% – 15% 8% 8% 9% The investment objective for pension funds related to our defined benefit plans is to meet the plan’s benefit obligations, while maximizing the long-term growth of assets without undue risk. We strive to achieve this objective by investing plan assets within target allocation ranges and diversification within asset categories. Target allocation ranges are guidelines that are adjusted periodically based on ongoing monitoring by plan fiduciaries. Investment risk is controlled by rebalancing to target allocations on a periodic basis and ongoing monitoring of investment manager performance relative to the investment guidelines established for each manager. As of September 30, 2017 and 2016 , our pension plans do not directly own our common stock. In certain countries where we operate, there are no legal requirements or financial incentives provided to companies to pre-fund pension obligations. In these instances, we typically make benefit payments directly from cash as they become due, rather than by creating a separate pension fund. The valuation methodologies used for our pension plans’ investments measured at fair value are described as follows. There have been no changes in the methodologies used at September 30, 2017 and 2016 . Common stock — Valued at the closing price reported on the active market on which the individual securities are traded. Mutual funds — Valued at the net asset value (NAV) reported by the fund. Corporate debt — Valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks. Government securities — Valued at the most recent closing price on the active market on which the individual securities are traded or, absent an active market, utilizing observable inputs such as closing prices in less frequently traded markets. Common collective trusts — Valued at the NAV as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding. Private equity and alternative equity — Valued at the estimated fair value, as determined by the respective fund manager, based on the NAV of the investment units held at year end, which is subject to judgment. Real estate funds — Consists of the real estate funds, which provide an indirect investment into a diversified and multi-sector portfolio of property assets. Publicly-traded real estate funds are valued at the most recent closing price reported on the SIX Swiss Exchange. The remainder is valued at the estimated fair value, as determined by the respective fund manager, based on the NAV of the investment units held at year end, which is subject to judgment. Insurance contracts — Valued at the aggregate amount of accumulated contribution and investment income less amounts used to make benefit payments and administrative expenses which approximates fair value. Other — Consists of other fixed income investments and common collective trusts with a mix of equity and fixed income underlying assets. Other fixed income investments are valued at the most recent closing price reported in the markets in which the individual securities are traded, which may be infrequently. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Refer to Note 9 for further information regarding levels in the fair value hierarchy. In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the NAV (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the consolidated financial statements. The guidance under this subtopic was effective for us starting in fiscal 2017 and is required to be adopted on a retrospective basis. Accordingly, certain investments which were classified in the fair value hierarchy in the prior year are now presented as a single fair value outside of the hierarchy. The following table presents our pension plans’ investments measured at fair value as of September 30, 2017 : Level 1 Level 2 Level 3 Total U.S. Plans Cash and cash equivalents $ 1.1 $ — $ — $ 1.1 Equity securities: Mutual funds 230.1 — — 230.1 Common stock 911.7 — — 911.7 Common collective trusts — 411.2 — 411.2 Fixed income securities: Corporate debt — 663.7 — 663.7 Government securities 247.0 109.4 — 356.4 Common collective trusts — 204.1 — 204.1 Other types of investments: Insurance contracts — — 0.9 0.9 Total U.S. Plans investments in fair value hierarchy $ 1,389.9 $ 1,388.4 $ 0.9 2,779.2 U.S. Plans investments measured at NAV: Private equity 49.9 Alternative equity 61.0 Total U.S. Plans investments 2,890.1 Non-U.S. Plans Cash and cash equivalents $ 3.3 $ — $ — 3.3 Equity securities: Common stock 57.3 — — 57.3 Common collective trusts — 311.1 — 311.1 Fixed income securities: Corporate debt — 37.0 — 37.0 Government securities 1.2 14.8 — 16.0 Common collective trusts — 301.1 — 301.1 Other types of investments: Real estate funds — 86.6 — 86.6 Insurance contracts — — 71.5 71.5 Other — — 4.8 4.8 Total Non-U.S. Plans investments in fair value hierarchy $ 61.8 $ 750.6 $ 76.3 888.7 Non-U.S. Plans investments measured at NAV: Real estate funds 9.5 Total Non-U.S. Plans investments 898.2 Total investments measured at fair value $ 3,788.3 The following table presents our pension plans’ investments measured at fair value as of September 30, 2016 : Level 1 Level 2 Level 3 Total U.S. Plans Cash and cash equivalents $ 2.9 $ — $ — $ 2.9 Equity securities: Mutual funds 203.6 — — 203.6 Common stock 705.9 — — 705.9 Common collective trusts — 483.6 — 483.6 Fixed income securities: Corporate debt — 591.8 — 591.8 Government securities 252.6 99.5 — 352.1 Common collective trusts — 161.4 — 161.4 Other types of investments: Insurance contracts — — 0.9 0.9 Total U.S. Plans investments in fair value hierarchy $ 1,165.0 $ 1,336.3 $ 0.9 2,502.2 U.S. Plans investments measured at NAV: Private equity 57.1 Alternative equity 56.9 Total U.S. Plans investments 2,616.2 Non-U.S. Plans Cash and cash equivalents $ 1.9 $ — $ — 1.9 Equity securities: Common stock 48.6 — — 48.6 Common collective trusts — 279.3 — 279.3 Fixed income securities: Corporate debt — 34.1 — 34.1 Government securities 10.0 7.6 — 17.6 Common collective trusts — 271.1 — 271.1 Other types of investments: Real estate funds — 85.4 — 85.4 Insurance contracts — — 79.7 79.7 Other — — 4.8 4.8 Total Non-U.S. Plans investments in fair value hierarchy $ 60.5 $ 677.5 $ 84.5 822.5 Non-U.S. Plans investments measured at NAV: Real estate funds 9.2 Total Non-U.S. Plans investments 831.7 Total investments measured at fair value $ 3,447.9 The table below sets forth a summary of changes in fair market value of our pension plans’ Level 3 assets for the year ended September 30, 2017 : Balance October 1, 2016 Realized Gains (Losses) Unrealized Gains (Losses) Purchases, Sales, Issuances, and Settlements, Net Balance September 30, 2017 U.S. Plans Insurance contracts $ 0.9 $ — $ — $ — $ 0.9 Non-U.S. Plans Insurance contracts 79.7 — (13.4 ) 5.2 71.5 Other 4.8 — — — 4.8 $ 85.4 $ — $ (13.4 ) $ 5.2 $ 77.2 The table below sets forth a summary of changes in fair market value of our pension plans’ Level 3 assets for the year ended September 30, 2016 : Balance October 1, 2015 Realized Gains (Losses) Unrealized Gains (Losses) Purchases, Sales, Issuances, and Settlements, Net Balance September 30, 2016 U.S. Plans Insurance contracts $ 0.9 $ — $ — $ — $ 0.9 Non-U.S. Plans Insurance contracts 63.8 — 14.5 1.4 79.7 Other 4.4 — — 0.4 4.8 $ 69.1 $ — $ 14.5 $ 1.8 $ 85.4 Estimated Future Payments We expect to contribute $53.8 million related to our worldwide pension plans and $9.7 million to our postretirement benefit plans in 2018 . The following benefit payments, which include employees’ expected future service, as applicable, are expected to be paid (in millions): Pension Benefits Other Postretirement Benefits 2018 $ 267.1 $ 9.7 2019 258.3 9.3 2020 272.7 6.0 2021 289.0 4.9 2022 305.8 4.7 2023 – 2027 1,451.6 20.2 Other Postretirement Benefits A one percentage point change in assumed health care cost trend rates would not have a material impact on our service and interest cost components or postretirement benefit obligation. Pension Benefits Information regarding our pension plans with accumulated benefit obligations in excess of the fair value of plan assets (underfunded plans) at September 30, 2017 and 2016 are as follows (in millions): 2017 2016 Projected benefit obligation $ 4,280.9 $ 4,784.5 Accumulated benefit obligation 3,956.8 4,428.0 Fair value of plan assets 3,473.6 3,446.5 Defined Contribution Savings Plans We also sponsor certain defined contribution savings plans for eligible employees. Expense related to these plans was $41.5 million in 2017 , $38.6 million in 2016 and $46.3 million in 2015 . |
Other Income (Expense)
Other Income (Expense) | 12 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense) | Other Income (Expense) The components of other income (expense) are (in millions): 2017 2016 2015 Gain on sale of business $ 60.8 $ — $ — Interest income 19.6 12.7 10.7 Royalty income 8.9 2.9 2.9 Legacy product liability and environmental charges (8.3 ) (12.7 ) (19.8 ) Other (0.1 ) 3.4 0.7 Other income (expense) $ 80.9 $ 6.3 $ (5.5 ) In September 2017, we sold W Interconnections, Inc. and subsidiaries, which was included within our Control Products & Solutions segment, for approximately $94.0 million . We recorded a pre-tax gain of $60.8 million as a result of this divestiture, which is included within Other Income (Expense) in the Consolidated Statement of Operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Selected income tax data (in millions): 2017 2016 2015 Components of income before income taxes: United States $ 547.2 $ 512.1 $ 660.5 Non-United States 490.2 431.0 467.0 Total $ 1,037.4 $ 943.1 $ 1,127.5 Components of the income tax provision: Current: United States $ 67.3 $ 175.9 $ 238.6 Non-United States 109.9 91.7 73.6 State and local 0.7 16.3 17.0 Total current 177.9 283.9 329.2 Deferred: United States 44.6 (53.7 ) (30.3 ) Non-United States (14.1 ) (8.8 ) 2.6 State and local 3.3 (8.0 ) (1.6 ) Total deferred 33.8 (70.5 ) (29.3 ) Income tax provision $ 211.7 $ 213.4 $ 299.9 Total income taxes paid $ 211.9 $ 299.8 $ 313.1 Effective Tax Rate Reconciliation The reconciliation between the U.S. federal statutory rate and our effective tax rate was: 2017 2016 2015 Statutory tax rate 35.0 % 35.0 % 35.0 % State and local income taxes 0.7 0.6 0.9 Non-United States taxes (9.3 ) (8.6 ) (7.9 ) Tax effect of foreign dividends 0.5 0.1 (0.2 ) Foreign currency transaction loss (1.9 ) (0.8 ) — Share-based compensation (2.8 ) — — Research and development tax credit (0.6 ) (2.0 ) (0.6 ) Change in valuation allowances 0.1 (0.6 ) (0.5 ) Domestic manufacturing deduction (0.9 ) (1.2 ) (1.2 ) Adjustments for prior period tax matters (0.4 ) 0.4 0.5 Other — (0.3 ) 0.6 Effective income tax rate 20.4 % 22.6 % 26.6 % We operate in certain non-U.S. tax jurisdictions under government-sponsored tax incentive programs, which may be extended if certain additional requirements are met. The program which generates the primary benefit will expire in 2022 . The tax benefit attributable to these programs was $43.4 million ( $0.33 per diluted share) in 2017 , $33.9 million ( $0.26 per diluted share) in 2016 and $36.5 million ( $0.27 per diluted share) in 2015 . Deferred Taxes The tax effects of temporary differences that give rise to our net deferred income tax assets (liabilities) at September 30, 2017 and 2016 were (in millions): 2017 2016 Deferred income tax assets: Compensation and benefits $ 18.8 $ 16.2 Inventory 20.2 18.0 Returns, rebates and incentives 45.9 55.1 Retirement benefits 305.5 493.6 Environmental remediation and other site-related costs 33.4 34.8 Share-based compensation 32.4 40.6 Other accruals and reserves 71.3 60.5 Net operating loss carryforwards 20.4 24.4 Tax credit carryforwards 15.3 13.7 Capital loss carryforwards 10.3 9.9 Other 11.1 11.4 Subtotal 584.6 778.2 Valuation allowance (18.6 ) (17.3 ) Net deferred income tax assets 566.0 760.9 Deferred income tax liabilities: Property (74.0 ) (63.5 ) Intangible assets (45.9 ) (54.9 ) Other (2.5 ) (8.6 ) Deferred income tax liabilities (122.4 ) (127.0 ) Total net deferred income tax assets $ 443.6 $ 633.9 We have not provided U.S. deferred taxes for $3,526.0 million of undistributed earnings of certain non-U.S. subsidiaries, since these earnings have been determined to be indefinitely reinvested outside the U.S. and thus are not subject to U.S. income taxes and foreign withholding taxes. It is not practicable to estimate the amount of additional taxes that may be payable upon distribution of these earnings. We believe it is more likely than not that we will realize our deferred tax assets through the reduction of future taxable income, other than for the deferred tax assets reflected below. Tax attributes and related valuation allowances at September 30, 2017 were (in millions): Tax Attribute to be Carried Forward Tax Benefit Amount Valuation Allowance Carryforward Non-United States net operating loss carryforward $ 6.2 $ 5.8 2018 - 2027 Non-United States net operating loss carryforward 4.7 1.7 Indefinite Non-United States capital loss carryforward 10.3 10.3 Indefinite United States net operating loss carryforward 1.2 — 2019 - 2033 United States tax credit carryforward 2.2 — 2018 - 2037 State and local net operating loss carryforward 8.3 0.2 2018 - 2037 State tax credit carryforward 13.1 0.6 2019 - 2032 Total 46.0 18.6 Unrecognized Tax Benefits A reconciliation of our gross unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2017 2016 2015 Gross unrecognized tax benefits balance at beginning of year $ 32.4 $ 43.9 $ 38.9 Additions based on tax positions related to the current year 1.9 2.3 2.1 Additions based on tax positions related to prior years 10.8 14.9 11.6 Reductions based on tax positions related to prior years (0.1 ) — (1.0 ) Reductions related to settlements with taxing authorities (7.7 ) (27.1 ) (4.3 ) Reductions related to lapses of statute of limitations (6.3 ) (1.6 ) (1.6 ) Effect of foreign currency translation 0.1 — (1.8 ) Gross unrecognized tax benefits balance at end of year $ 31.1 $ 32.4 $ 43.9 The amount of gross unrecognized tax benefits that would reduce our effective tax rate if recognized was $31.1 million , $32.4 million and $43.9 million at September 30, 2017 , 2016 and 2015 , respectively. Accrued interest and penalties related to unrecognized tax benefits were $4.0 million and $5.2 million at September 30, 2017 and 2016 , respectively. We recognize interest and penalties related to unrecognized tax benefits in the income tax provision. Benefits (expense) recognized were $1.2 million , ($0.1) million and $2.4 million in 2017 , 2016 and 2015 , respectively. We believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $9.5 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 $4.4 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 2014 and are no longer subject to state, local and non-U.S. income tax examinations for years before 2003 . |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Obligations and expected recoveries related to environmental remediation costs, conditional asset retirement obligations and other recorded indemnification matters as of September 30, 2017 and 2016 are as follows: 2017 2016 Environmental remediation costs $ 67.6 $ 73.9 Conditional asset retirement obligations 21.2 20.6 Indemnification liabilities 12.0 17.0 Total recorded liabilities 100.8 111.5 Recorded probable expected recoveries (17.8 ) (22.5 ) Net recorded liabilities $ 83.0 $ 89.0 As of September 30, 2017 , we have estimated the total reasonably possible costs we could incur from these environmental remediation and indemnification liabilities to be $121.3 million ( $98.4 million , net of related receivables). Environmental Matters Federal, state and local requirements relating to the discharge of substances into the environment, the disposal of hazardous wastes and other activities affecting the environment have and will continue to have an effect on our manufacturing operations. Thus far, compliance with environmental requirements and resolution of environmental claims have been accomplished without material effect on our business, financial condition or results of operations. We have been designated as a potentially responsible party at 13 Superfund sites, excluding sites as to which our records disclose no involvement or as to which our potential liability has been finally determined and assumed by third parties. In addition, various other lawsuits, claims and proceedings have been asserted against us seeking remediation of alleged environmental impairments, principally at previously owned properties. Environmental remediation cost liabilities and related expected recoveries at September 30, 2017 are as follows (in millions): 2017 Other current liabilities $ 10.7 Other liabilities 56.9 Total recorded environmental remediation costs (1) 67.6 Receivables (1.2 ) Other assets (10.1 ) Total recorded probable expected recoveries (11.3 ) Net environmental remediation costs $ 56.3 (1) Includes $47.5 million related to discounted ongoing operating and maintenance expenditures. Based on our assessment, we believe that our expenditures for environmental capital investment and remediation necessary to comply with present regulations governing environmental protection and other expenditures for the resolution of environmental claims will not have a material effect on our business, financial condition or results of operations. We cannot assess the possible effect of compliance with future requirements. Conditional Asset Retirement Obligations We accrue for costs related to a legal obligation associated with the retirement of a tangible long-lived asset that results from the acquisition, construction, development or the normal operation of the long-lived asset. The obligation to perform the asset retirement activity is not conditional even though the timing or method may be conditional. Identified conditional asset retirement obligations include asbestos abatement and remediation of soil contamination beneath current and previously divested facilities. We estimate conditional asset retirement obligations using site-specific knowledge and historical industry expertise. Conditional asset retirement obligations and related expected recoveries at September 30, 2017 and 2016 are as follows (in millions): 2017 2016 Other current liabilities $ 0.7 $ 0.7 Other liabilities 20.5 19.9 Total recorded conditional asset retirement obligations 21.2 20.6 Receivables (0.1 ) (0.1 ) Other assets (0.2 ) (0.2 ) Total recorded probable expected recoveries (0.3 ) (0.3 ) Net conditional asset retirement obligations $ 20.9 $ 20.3 There have been no significant changes in liabilities incurred, liabilities settled, accretion expense or revisions in estimated cash flows for the periods ended September 30, 2017 and 2016 , respectively. Other Matters Various other 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 our 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. Following litigation against Nationwide Indemnity Company (Nationwide) and Kemper Insurance (Kemper), the insurance carriers that provided liability insurance coverage to Allen-Bradley, we entered into separate agreements on April 1, 2008 with both insurance carriers to further resolve responsibility for ongoing and future coverage of Allen-Bradley asbestos claims. In exchange for a lump sum payment, Kemper bought out its remaining liability and has been released from further insurance obligations to Allen-Bradley. Nationwide 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 with Nationwide will continue to provide coverage for Allen-Bradley asbestos claims throughout the remaining life of the asbestos liability. We also have rights to historic insurance policies that provide indemnity and defense costs, over and above self-insured retentions, for claims arising out of certain asbestos liabilities relating to the divested measurement and flow control business. We initiated litigation against several insurers to pursue coverage for these claims, subject to each carrier's policy limits, and the case is now pending in Los Angeles County Superior Court. In September 2016, we entered into settlement agreements with certain insurance company defendants. In exchange for a lump sum payment, Lamorak Insurance Company bought out its remaining liability and has been released from further insurance obligations relating to the measurement and flow control business. Certain Underwriters at Lloyd’s, London and certain London Market Insurance Companies entered into a cost share agreement to pay a portion of future defense and indemnity costs for measurement and flow control asbestos claims. We believe this arrangement will continue to provide partial coverage for these asbestos claims throughout the remaining life of 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 business, 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. Indemnification liabilities and related expected recoveries at September 30, 2017 and 2016 are as follows (in millions): 2017 2016 Other current liabilities $ 2.5 $ 4.9 Other liabilities 9.5 12.1 Total recorded indemnification liabilities 12.0 17.0 Receivables (1.6 ) (3.5 ) Other assets (4.6 ) (7.3 ) Total recorded probable expected recoveries (6.2 ) (10.8 ) Net indemnification liabilities $ 5.8 $ 6.2 Included in the above are certain environmental indemnification liabilities that are substantially indemnified by ExxonMobil Corporation for which we have recorded a liability of $6.6 million and $11.0 million , and a related receivable of $6.2 million and $10.8 million , as of September 30, 2017 and 2016 , respectively. 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 September 30, 2017 , 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 business, financial condition or results of operations; 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 business, financial condition or results of operations in a particular period. Lease Commitments Rental expense was $115.1 million in 2017 , $115.5 million in 2016 and $117.0 million in 2015 . As of September 30, 2017 , minimum future rental commitments under operating leases having noncancelable lease terms in excess of one year are payable as follows (in millions): 2018 $ 73.3 2019 62.4 2020 52.1 2021 36.6 2022 25.8 Beyond 2022 34.8 Total $ 285.0 Commitments from third parties under sublease agreements having noncancelable lease terms in excess of one year were not significant as of September 30, 2017 . Most leases contain renewal options for varying periods, and certain leases include options to purchase the leased property. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Rockwell Automation, a leader in industrial automation and information, makes its customers more productive and the world more sustainable . We determine our operating segments based on the information used by our chief operating decision maker, our Chief Executive Officer, to allocate resources and assess performance. Based upon this information, we organize our products, solutions and services into two operating segments: Architecture & Software and Control Products & Solutions. Architecture & Software The Architecture & Software segment contains all of the hardware, software and communication components of our integrated control and information architecture which are capable of controlling the customer’s industrial processes and connecting with their business enterprise. Architecture & Software has a broad portfolio of products including: • Control platforms that perform multiple control disciplines and monitoring of applications, including discrete, batch and continuous process, drives control, motion control and machine safety control. Our platform products include controllers, electronic operator interface devices, electronic input/output devices, communication and networking products and industrial computers. The information-enabled Logix controllers provide integrated multi-discipline control that is modular and scalable. • Software products that include configuration and visualization software used to operate and supervise control platforms, advanced process control software, manufacturing execution systems (MES) and information solutions software that enables customers to improve operational productivity and meet regulatory requirements. • Other products, including sensors, machine safety components and linear motion control products. Control Products & Solutions The Control Products & Solutions segment combines a comprehensive portfolio of intelligent motor control and industrial control products, application expertise and project management capabilities. This comprehensive portfolio includes: • Low and medium voltage electro-mechanical and electronic motor starters, motor and circuit protection devices, AC/DC variable frequency drives, push buttons, signaling devices, termination and protection devices, relays and timers. • Value-added solutions ranging from packaged solutions such as configured drives and motor control centers to automation and information solutions where we provide design, integration and start-up services for custom-engineered hardware and information software. • Services designed to help maximize a customer’s automation investment and provide total life-cycle support, including technical support and repair, asset management, training, predictive and preventative maintenance, and safety and network consulting. 16. Business Segment Information (Continued) The following tables reflect the sales and operating results of our reportable segments for the years ended September 30 , 2017 , 2016 and 2015 (in millions): 2017 2016 2015 Sales: Architecture & Software $ 2,899.3 $ 2,635.2 $ 2,749.5 Control Products & Solutions 3,412.0 3,244.3 3,558.4 Total $ 6,311.3 $ 5,879.5 $ 6,307.9 Segment operating earnings: Architecture & Software $ 781.5 $ 695.0 $ 808.6 Control Products & Solutions 451.6 493.7 551.9 Total 1,233.1 1,188.7 1,360.5 Purchase accounting depreciation and amortization (21.4 ) (18.4 ) (21.0 ) General corporate-net (76.3 ) (79.7 ) (85.6 ) Non-operating pension costs (82.6 ) (76.2 ) (62.7 ) Gain on sale of business 60.8 — — Interest expense (76.2 ) (71.3 ) (63.7 ) Income before income taxes $ 1,037.4 $ 943.1 $ 1,127.5 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. The following tables summarize the identifiable assets at September 30 , 2017 , 2016 and 2015 and the provision for depreciation and amortization and the amount of capital expenditures for property for the years then ended for each of the reportable segments and Corporate (in millions): 2017 2016 2015 Identifiable assets: Architecture & Software $ 2,482.8 $ 2,054.3 $ 1,790.5 Control Products & Solutions 2,078.2 2,034.6 2,078.1 Corporate 2,600.7 3,012.3 2,536.1 Total $ 7,161.7 $ 7,101.2 $ 6,404.7 Depreciation and amortization: Architecture & Software $ 69.3 $ 75.0 $ 69.7 Control Products & Solutions 75.0 77.3 70.3 Corporate 3.2 1.5 1.5 Total 147.5 153.8 141.5 Purchase accounting depreciation and amortization 21.4 18.4 21.0 Total $ 168.9 $ 172.2 $ 162.5 Capital expenditures for property: Architecture & Software $ 30.0 $ 24.7 $ 29.4 Control Products & Solutions 42.1 41.5 56.8 Corporate 69.6 50.7 36.7 Total $ 141.7 $ 116.9 $ 122.9 16. Business Segment Information (Continued) Identifiable assets at Corporate consist principally of cash, net deferred income tax assets, prepaid pension and property. Property shared by the segments and used in operating activities is also reported in Corporate identifiable assets and Corporate capital expenditures. Corporate identifiable assets include shared net property balances of $259.3 million , $264.8 million and $266.8 million at September 30, 2017 , 2016 and 2015 , respectively, for which depreciation expense has been allocated to segment operating earnings based on the expected benefit to be realized by each segment. Corporate capital expenditures include $69.6 million , $50.7 million and $36.7 million in 2017 , 2016 and 2015 , respectively, that will be shared by our operating segments. We conduct a significant portion of our business activities outside the United States. The following tables present sales and property by geographic region (in millions): Sales Property 2017 2016 2015 2017 2016 2015 United States $ 3,458.4 $ 3,213.4 $ 3,446.8 $ 443.4 $ 445.4 $ 472.1 Canada 343.4 316.4 366.6 8.8 7.3 7.3 Europe, Middle East and Africa 1,193.7 1,147.2 1,174.0 52.5 49.9 50.4 Asia Pacific 866.4 764.4 834.5 40.0 37.4 41.9 Latin America 449.4 438.1 486.0 39.2 38.3 33.9 Total $ 6,311.3 $ 5,879.5 $ 6,307.9 $ 583.9 $ 578.3 $ 605.6 We attribute sales to the geographic regions based on the country of destination. In most countries, we sell primarily through independent distributors in conjunction with our direct sales force. In other countries, we sell through a combination of our direct sales force and to a lesser extent, through independent distributors. We sell large systems and service offerings principally through our direct sales force, though opportunities are sometimes identified through distributors. Sales to our largest distributor in 2017 , 2016 and 2015 , which are attributable to both segments, were approximately 10 percent of our total sales. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) 2017 Quarters (in millions, except per share amounts) First Second Third Fourth 2017 Sales $ 1,490.3 $ 1,554.3 $ 1,599.2 1,667.5 $ 6,311.3 Gross profit 642.3 656.5 677.7 647.7 2,624.2 Income before income taxes 257.6 230.3 276.0 273.5 1,037.4 Net income 214.7 189.5 216.9 204.6 825.7 Earnings per share: Basic 1.67 1.47 1.69 1.59 6.42 Diluted 1.65 1.45 1.67 1.57 6.35 2016 Quarters (in millions, except per share amounts) First Second Third Fourth 2016 Sales $ 1,426.6 $ 1,440.3 $ 1,474.0 $ 1,538.6 $ 5,879.5 Gross profit 612.7 594.1 616.8 651.9 2,475.5 Income before income taxes 236.9 217.0 252.3 236.9 943.1 Net income 185.5 168.0 191.0 185.2 729.7 Earnings per share: Basic 1.41 1.29 1.47 1.44 5.60 Diluted 1.40 1.28 1.46 1.43 5.56 Note: The sum of the quarterly per share amounts will not necessarily equal the annual per share amounts presented. |
Rocky Flats Settlement
Rocky Flats Settlement | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies | Rocky Flats Settlement From 1975 to 1989, Rockwell International Corporation (RIC) operated the Rocky Flats facility in Colorado for the U.S. Department of Energy (DoE). In 1990, a class of landowners near Rocky Flats sued RIC and Dow Chemical, another former operator of the facility. In May 2016, the parties agreed to settle this case and the DoE authorized the settlement. Under the court approved settlement agreement, we and Dow Chemical agreed to pay $375.0 million in the aggregate to resolve the claims. Under RIC’s contract with the DoE and federal law, RIC was entitled to indemnification by the DoE for its portion of the settlement amount, which was $243.75 million . When RIC was acquired by Boeing in 1996, we agreed to indemnify Boeing for RIC’s liabilities related to Rocky Flats and received the benefits of RIC’s corresponding indemnity rights against the DoE. Pursuant to the settlement agreement, in fiscal 2016, RIC paid an initial amount of $1.25 million to the plaintiff class escrow fund. In January 2017, the DoE fulfilled its indemnification obligation by paying $243.75 million , and the full amount of RIC's obligation under the settlement agreement has now been transferred to the plaintiff class escrow fund. As a result, we were not required to make any payment under the settlement agreement. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II ROCKWELL AUTOMATION, INC. VALUATION AND QUALIFYING ACCOUNTS For the Years Ended September 30, 2017 , 2016 and 2015 Balance at Additions (in millions) Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions(b) Balance at End of Year Description *Year ended September 30, 2017 Allowance for doubtful accounts (a) $ 24.5 $ 5.0 $ — $ 4.6 $ 24.9 Valuation allowance for deferred tax assets 17.3 1.5 0.4 0.6 18.6 *Year ended September 30, 2016 Allowance for doubtful accounts (a) $ 24.8 $ 10.9 $ — $ 11.2 $ 24.5 Valuation allowance for deferred tax assets 22.2 1.0 0.6 6.5 17.3 *Year ended September 30, 2015 Allowance for doubtful accounts (a) $ 22.2 $ 8.1 $ — $ 5.5 $ 24.8 Valuation allowance for deferred tax assets 27.8 2.5 — 8.1 22.2 (a) Includes allowances for current and other long-term receivables. (b) Consists of amounts written off for the allowance for doubtful accounts and adjustments resulting from our ability to utilize foreign tax credits, capital losses, or net operating loss carryforwards for which a valuation allowance had previously been recorded. * Amounts reported relate to continuing operations in all periods presented. |
Basis of Presentation and Acc29
Basis of Presentation and Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and controlled majority-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Investments in affiliates over which we do not have control but exercise significant influence are accounted for using the equity method of accounting. These affiliated companies are not material individually or in the aggregate to our financial position, results of operations or cash flows. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results could differ from those estimates. We use estimates in accounting for, among other items, customer returns, rebates and incentives; allowance for doubtful accounts; excess and obsolete inventory; share-based compensation; acquisitions; product warranty obligations; retirement benefits; litigation, claims and contingencies, including environmental matters, conditional asset retirement obligations and contractual indemnifications; and income taxes. We account for changes to estimates and assumptions prospectively when warranted by factually-based experience. |
Revenue Recognition | Revenue Recognition We recognize revenue when it is realized or realizable and earned. Product and solution sales consist of industrial automation and information solutions; hardware and software products; and custom-engineered systems. Service sales include multi-vendor customer technical support and repair, asset management and optimization consulting and training. All service sales recorded in the Consolidated Statement of Operations are associated with our Control Products & Solutions segment. For approximately 85 percent of our consolidated sales, we record sales when all of the following have occurred: persuasive evidence of a sales agreement exists; pricing is fixed or determinable; collection is reasonably assured; and products have been delivered and acceptance has occurred, as may be required according to contract terms, or services have been rendered. Within this category, we will at times enter into arrangements that involve the delivery of multiple products and/or the performance of services, such as installation and commissioning. The timing of delivery, though varied based upon the nature of the undelivered component, is generally short-term in nature. For these arrangements, revenue is allocated to each deliverable based on that element's relative selling price, provided the delivered element has value to customers on a standalone basis and, if the arrangement includes a general right of return, delivery or performance of the undelivered items is probable and substantially in our control. Relative selling price is obtained from sources such as vendor-specific objective evidence, which is based on our separate selling price for that or a similar item, or from third-party evidence such as how competitors have priced similar items. If such evidence is not available, we use our best estimate of the selling price, which includes various internal factors such as our pricing strategy and market factors. We recognize substantially all of the remainder of our sales as construction-type contracts using either the percentage-of-completion or completed contract methods of accounting. We record sales relating to these contracts using the percentage-of-completion method when we determine that progress toward completion is reasonably and reliably estimable; we use the completed contract method for all others. Under the percentage-of-completion method, we recognize sales and gross profit as work is performed using the relationship between actual costs incurred and total estimated costs at completion. Under the percentage-of-completion method, we adjust sales and gross profit for revisions of estimated total contract costs or revenue in the period the change is identified. We record estimated losses on contracts when they are identified. We use contracts and customer purchase orders to determine the existence of a sales agreement. We use shipping documents and customer acceptance, when applicable, to verify delivery. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. We assess collectibility based on the creditworthiness of the customer as determined by credit evaluations and analysis, as well as the customer’s payment history. Shipping and handling costs billed to customers are included in sales and the related costs are included in cost of sales in the Consolidated Statement of Operations. |
Returns, Rebates and Incentives | Returns, Rebates and Incentives Our primary incentive program provides distributors with cash rebates or account credits based on agreed amounts that vary depending on the customer to whom our distributor ultimately sells the product. We also offer various other incentive programs that provide distributors and direct sale customers with cash rebates, account credits or additional products, solutions and services based on meeting specified program criteria. Certain distributors are offered a right to return product, subject to contractual limitations. We record accruals for customer returns, rebates and incentives at the time of revenue recognition based primarily on historical experience. Returns, rebates and incentives are recognized as a reduction of sales if distributed in cash or customer account credits. Rebates and incentives are recognized in cost of sales for additional products, solutions and services to be provided. Accruals are reported as a current liability in our balance sheet or, where a right of setoff exists, as a reduction of accounts receivable. |
Taxes on Revenue Producing Transactions | Taxes on Revenue Producing Transactions Taxes assessed by governmental authorities on revenue producing transactions, including sales, value added, excise and use taxes, are recorded on a net basis (excluded from revenue). |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include time deposits, certificates of deposit, and other fixed income securities with original maturities of three months or less at the time of purchase. |
Short-Term Investments | Short-term Investments Short-term investments include time deposits, certificates of deposit and other fixed income securities with original maturities longer than three months at the time of purchase and less than one year from period end. All investments meeting the definition of a security are accounted for as available-for-sale and stated at fair value. All other investments are stated at cost, which approximates fair value. |
Receivables | Receivables We record an allowance for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Receivables are stated net of an allowance for doubtful accounts of $24.9 million at September 30, 2017 and $24.5 million at September 30, 2016 . In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $11.9 million at September 30, 2017 and $7.9 million at September 30, 2016 . |
Inventories | Inventories Inventories are stated at the lower of cost or market using the first-in, first-out (FIFO) or average cost methods. Market is determined on the basis of estimated realizable values. |
Property | Property Property, including internal-use software, is stated at cost. We calculate depreciation of property using the straight-line method over 5 to 40 years for buildings and improvements, 3 to 20 years for machinery and equipment and 3 to 8 years for computer hardware and internal-use software. We capitalize significant renewals and enhancements and write off replaced units. We expense maintenance and repairs, as well as renewals of minor amounts. Property acquired during the year that is accrued within accounts payable or other current liabilities at year end is considered to be a non-cash investing activity and is excluded from cash used for capital expenditures in the Consolidated Statement of Cash Flows. Capital expenditures of $29.6 million , $29.9 million and $27.3 million were accrued within accounts payable and other current liabilities at September 30, 2017 , 2016 and 2015 , respectively. |
Intangible Assets | Intangible Assets Goodwill and other intangible assets generally result from business acquisitions. We account for business acquisitions by allocating the purchase price to tangible and intangible assets acquired and liabilities assumed at their fair values; the excess of the purchase price over the allocated amount is recorded as goodwill. We review goodwill and other intangible assets with indefinite useful lives for impairment annually or more frequently if events or circumstances indicate impairment may be present. Any excess in carrying value over the estimated fair value is charged to results of operations. We perform our annual impairment test during the second quarter of our fiscal year. We amortize certain customer relationships on an accelerated basis over the period of which we expect the intangible asset to generate future cash flows. We amortize all other intangible assets with finite useful lives on a straight-line basis over their estimated useful lives. Useful lives assigned range from 3 to 15 years for trademarks, 8 to 20 years for customer relationships, 5 to 17 years for technology and 5 to 30 years for other intangible assets. Intangible assets also include costs of software developed or purchased by our software business to be sold, leased or otherwise marketed. Amortization of these computer software products is calculated on a product-by-product basis as the greater of (a) the unamortized cost at the beginning of the year times the ratio of the current year gross revenue for a product to the total of the current and anticipated future gross revenue for that product or (b) the straight-line amortization over the remaining estimated economic life of the product. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate the recoverability of the recorded amount of long-lived assets whenever events or changes in circumstances indicate that the recorded amount of an asset may not be fully recoverable. Impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. If we determine that an asset is impaired, we measure the impairment to be recognized as the amount by which the recorded amount of the asset exceeds its fair value. We report assets to be disposed of at the lower of the recorded amount or fair value less cost to sell. We determine fair value using a discounted future cash flow analysis. |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments in the form of 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. We also use these contracts to hedge portions of our net investments in certain non-U.S. subsidiaries against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. Additionally, we use derivative financial instruments in the form of interest rate swap contracts to manage our borrowing costs of certain long-term debt. We designate and account for these derivative financial instruments as hedges under U.S. GAAP. Furthermore, we use foreign currency forward exchange contracts that are not designated as hedges to offset transaction gains or losses associated with some of our assets and liabilities resulting from intercompany loans or other transactions with third parties that are denominated in currencies other than our entities' functional currencies. It is our policy to execute such instruments with global financial institutions that we believe to be creditworthy and not to enter into derivative financial instruments for speculative purposes. Foreign currency forward exchange contracts are usually denominated in currencies of major industrial countries. |
Foreign Currency Translation | Foreign Currency Translation We translate assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. dollar into U.S. dollars using exchange rates at the end of the respective period. We translate sales, costs and expenses at average exchange rates effective during the respective period. We report foreign currency translation adjustments as a component of other comprehensive income (loss). Currency transaction gains and losses are included in results of operations in the period incurred. |
Research and Development Expenses | Research and Development Expenses We expense research and development (R&D) costs as incurred; these costs were $348.2 million in 2017 , $319.3 million in 2016 and $307.3 million in 2015 . We include R&D expenses in cost of sales in the Consolidated Statement of Operations. |
Income Taxes | Income Taxes We account for uncertain tax positions by determining whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. For tax positions that meet the more-likely-than-not recognition threshold, we determine the amount of benefit to recognize in the consolidated financial statements based on our assertion of the most likely outcome resulting from an examination, including the resolution of any related appeals or litigation processes. |
Earnings Per Share | Earnings Per Share We present basic and diluted earnings per share (EPS) amounts. Basic EPS is calculated by dividing earnings available to common shareowners, which is income excluding the allocation to participating securities, by the weighted average number of common shares outstanding during the year, excluding unvested restricted stock. Diluted EPS amounts are based upon the weighted average number of common and common-equivalent shares outstanding during the year. We use the treasury stock method to calculate the effect of outstanding share-based compensation awards, which requires us to compute total employee proceeds as the sum of the amount the employee must pay upon exercise of the award and the amount of unearned share-based compensation costs attributed to future services. Share-based compensation awards for which the total employee proceeds of the award exceed the average market price of the same award over the period have an antidilutive effect on EPS, and accordingly, we exclude them from the calculation. Antidilutive share-based compensation awards for the years ended September 30, 2017 ( 0.7 million shares), 2016 ( 2.2 million shares) and 2015 ( 1.4 million shares) were excluded from the diluted EPS calculation. U.S. GAAP requires unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, to be treated as participating securities and included in the computation of earnings per share pursuant to the two-class method. Our participating securities are composed of unvested restricted stock and non-employee director restricted stock units. |
Share-Based Compensation | Share-Based Compensation We recognize share-based compensation expense for equity awards on a straight-line basis over the service period of the award based on the fair value of the award as of the grant date. |
Product and Workers' Compensation Liabilities | Product and Workers’ Compensation Liabilities We record accruals for product and workers’ compensation claims in the period in which they are probable and reasonably estimable. Our principal self-insurance programs include product liability and workers’ compensation where we self-insure up to a specified dollar amount. Claims exceeding this amount up to specified limits are covered by insurance policies purchased from commercial insurers. We estimate the liability for the majority of the self-insured claims using our claims experience for the periods being valued. |
Environmental Matters and Conditional Asset Retirement Obligations | Environmental Matters We record liabilities for environmental matters in the period in which our responsibility is probable and the costs can be reasonably estimated. We make changes to the liabilities in the periods in which the estimated costs of remediation change. At third-party environmental sites where more than one potentially responsible party has been identified, we record a liability for our estimated allocable share of costs related to our involvement with the site, as well as an estimated allocable share of costs related to the involvement of insolvent or unidentified parties. If we determine that recovery from insurers or other third parties is probable and a right of setoff exists, we record the liability net of the estimated recovery. If we determine that recovery from insurers or other third parties is probable but a right of setoff does not exist, we record a liability for the total estimated costs of remediation and a receivable for the estimated recovery. At environmental sites where we are the sole responsible party, we record a liability for the total estimated costs of remediation. Ongoing operating and maintenance expenditures included in our environmental remediation obligations are discounted to present value over the probable future remediation period. Our remaining environmental remediation obligations are undiscounted due to subjectivity of timing and/or amount of future cash payments. Conditional Asset Retirement Obligations We record liabilities for costs related to legal obligations associated with the retirement of a tangible, long-lived asset that results from the acquisition, construction, development or the normal operation of the long-lived asset. The obligation to perform the asset retirement activity is not conditional even though the timing or method may be conditional. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2017, the FASB issued a new standard regarding the presentation of net periodic pension and postretirement benefit costs. This standard requires the service cost component to be reported in the income statement in the same line item as other compensation costs arising from services rendered by the related employees during the period. The other components of net periodic benefit cost are required to be presented separately from the service cost component in either a separate line item or within another appropriate line item with disclosure of where those costs are recorded. This standard also requires that only the service cost component is eligible for capitalization, when applicable. This standard is effective for us for reporting periods starting October 1, 2018. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements and related disclosures. In March 2016, the Financial Accounting Standards Board (FASB) issued a new standard on share-based compensation. This requirement is effective for us no later than October 1, 2017; however, we elected to adopt earlier as of October 1, 2016. This standard requires entities to record the excess income tax benefit or deficiency from share-based compensation within the income tax provision rather than within additional paid-in capital. This change reduced our income tax provision by $29.0 million in the year ended September 30, 2017 . The standard also requires this benefit or deficiency to be classified as an operating cash flow rather than as a financing cash flow. The requirement to record the benefit or deficiency within the income tax provision is effective on a prospective basis. We have elected to adopt the cash flow presentation requirement on a prospective basis. Our adoption of all other requirements under the new standard did not have a material impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued a new standard on accounting for leases that requires lessees to recognize right-of-use assets and lease liabilities for most leases, among other changes to existing lease accounting guidance. The new standard also requires additional qualitative and quantitative disclosures about leasing activities. This standard is effective for us for reporting periods beginning October 1, 2019. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements and related disclosures. 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 principles-based approach to recognizing revenue. The underlying principle is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. 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. We will adopt this new standard under the modified retrospective method in the first quarter of fiscal 2019, with the cumulative effect of initially applying the guidance recognized in retained earnings at the adoption date. We have established a project plan and a cross-functional implementation team to adopt the new standard. We are in the process of identifying and implementing necessary changes to accounting policies, processes, controls and systems to enable compliance with this new standard. We continue to evaluate the impact the adoption of this standard 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 known and reasonably estimable. |
Fair value of financial instruments | Investments We recognize all available-for-sale investments at fair value in the Consolidated Balance Sheet. The valuation methodologies used for our investments measured at fair value are described as follows. Certificates of deposit and time deposits — These investments are stated at cost, which approximates fair value. Commercial paper — These investments are stated at amortized cost, which approximates fair value. Corporate debt securities — Valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks. Government securities — Valued at the most recent closing price on the active market on which the individual securities are traded or, absent an active market, utilizing observable inputs such as closing prices in less frequently traded markets. Asset-backed securities — Valued using a discounted cash flow approach that maximizes observable inputs, such as current yields of benchmark instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. We did not hold any Level 3 investments or have any transfers between levels of fair value measurements during the periods presented. Fair Value of Financial Instruments 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. Derivative Instruments We recognize all derivative financial instruments as either assets or liabilities at fair value in the Consolidated Balance Sheet. 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 fiscal 2017 , 2016 or 2015 . It is our policy to execute such instruments with major financial institutions that we believe to be creditworthy and not to enter into derivative financial instruments for speculative purposes. We diversify our foreign currency forward exchange contracts among counterparties to minimize exposure to any one of these entities. Our foreign currency forward exchange contracts are usually denominated in currencies of major industrial countries. The U.S. dollar-equivalent gross notional amount of our forward exchange contracts totaled $1,643.4 million at September 30, 2017 . Currency pairs (buy/sell) comprising the most significant contract notional values were United States dollar (USD)/euro, USD/Swiss franc, USD/Canadian dollar and Swiss franc/euro. We value interest rate swap contracts using a market approach based on observable market inputs including publicized swap curves. |
Fair value measurement of non-derivative instruments | We also hold financial instruments consisting of cash, short-term debt and long-term debt. The fair values of our cash and short-term debt approximate their carrying amounts as reported in our Consolidated Balance Sheet due to the short-term nature of these instruments. |
Basis of Presentation and Acc30
Basis of Presentation and Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles basic and diluted EPS amounts (in millions, except per share amounts): 2017 2016 2015 Net income $ 825.7 $ 729.7 $ 827.6 Less: Allocation to participating securities (0.9 ) (0.7 ) (0.7 ) Net income available to common shareowners $ 824.8 $ 729.0 $ 826.9 Basic weighted average outstanding shares 128.4 130.2 134.5 Effect of dilutive securities Stock options 1.2 0.9 1.1 Performance shares 0.3 — 0.1 Diluted weighted average outstanding shares 129.9 131.1 135.7 Earnings per share: Basic $ 6.42 $ 5.60 $ 6.15 Diluted $ 6.35 $ 5.56 $ 6.09 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Changes in the carrying amount of goodwill for the years ended September 30, 2017 and 2016 were (in millions): Architecture & Software Control Products & Solutions Total Balance as of September 30, 2015 $ 388.0 $ 640.8 $ 1,028.8 Acquisition of businesses 35.0 37.7 72.7 Translation (8.5 ) (19.1 ) (27.6 ) Balance as of September 30, 2016 414.5 659.4 1,073.9 Acquisition of business — 0.8 0.8 Divestiture of business (Note 13) — (10.3 ) (10.3 ) Translation 2.7 10.6 13.3 Balance as of September 30, 2017 $ 417.2 $ 660.5 $ 1,077.7 |
Other intangible assets | Other intangible assets consist of (in millions): September 30, 2017 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 194.8 $ 113.2 $ 81.6 Customer relationships 114.5 61.5 53.0 Technology 104.8 57.9 46.9 Trademarks 32.3 21.1 11.2 Other 11.4 9.8 1.6 Total amortized intangible assets 457.8 263.5 194.3 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 501.5 $ 263.5 $ 238.0 September 30, 2016 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 182.4 $ 103.4 $ 79.0 Customer relationships 112.6 51.9 60.7 Technology 103.9 48.5 55.4 Trademarks 31.4 17.0 14.4 Other 11.0 8.9 2.1 Total amortized intangible assets 441.3 229.7 211.6 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 485.0 $ 229.7 $ 255.3 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of (in millions): September 30, 2017 2016 Finished goods $ 218.7 $ 215.8 Work in process 168.0 158.0 Raw materials 172.0 152.8 Inventories $ 558.7 $ 526.6 |
Property, net (Tables)
Property, net (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, net | Property consists of (in millions): September 30, 2017 2016 Land $ 5.2 $ 4.5 Buildings and improvements 351.6 333.7 Machinery and equipment 1,145.8 1,085.1 Internal-use software 461.5 451.1 Construction in progress 131.7 108.4 Total 2,095.8 1,982.8 Less accumulated depreciation (1,511.9 ) (1,404.5 ) Property, net $ 583.9 $ 578.3 |
Long-term and Short-term Debt (
Long-term and Short-term Debt (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of (in millions): September 30, 2017 2016 5.65% notes, payable in December 2017 250.0 250.0 2.050% notes, payable in March 2020 298.7 305.1 2.875% notes, payable in March 2025 296.7 314.4 6.70% debentures, payable in January 2028 250.0 250.0 6.25% debentures, payable in December 2037 250.0 250.0 5.20% debentures, payable in January 2098 200.0 200.0 Unamortized discount and other (52.0 ) (53.2 ) Total $ 1,493.4 $ 1,516.3 Less current portion (250.0 ) — Long-term debt 1,243.4 1,516.3 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consist of (in millions): September 30, 2017 2016 Unrealized losses on foreign exchange contracts (Note 9) $ 31.3 $ 15.6 Product warranty obligations (Note 7) 28.5 28.0 Taxes other than income taxes 42.7 43.1 Accrued interest 16.9 16.9 Income taxes payable 32.6 28.6 Rocky Flats settlement (Note 18) — 242.5 Other 68.2 72.9 Other current liabilities $ 220.2 $ 447.6 |
Product Warranty Obligations (T
Product Warranty Obligations (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Changes in product warranty obligations | Changes in product warranty obligations were (in millions): September 30, 2017 2016 Beginning balance $ 28.0 $ 27.9 Warranties recorded at time of sale 25.8 25.0 Adjustments to pre-existing warranties (0.2 ) 1.2 Settlements of warranty claims (25.1 ) (26.1 ) Ending balance $ 28.5 $ 28.0 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Investment [Table Text Block] | Our investments consist of (in millions): September 30, 2017 2016 Certificates of deposit and time deposits $ 1,005.3 $ 902.8 Commercial paper 20.3 — Corporate debt securities 199.4 — Government securities 116.8 — Asset-backed securities 45.8 — Total $ 1,387.6 $ 902.8 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The table below summarizes the contractual maturities of our investments as of September 30, 2017 (in millions). Actual maturities may differ from the contractual maturities below as borrowers may have the right to prepay certain obligations. Fair Value Less than one year $ 1,124.6 Due in one to five years 263.0 Total $ 1,387.6 |
Fair Value, by Balance Sheet Grouping | These investments were included in the following line items within the Consolidated Balance Sheet (in millions): September 30, 2017 2016 Short-term investments $ 1,124.6 $ 902.8 Other assets 263.0 — Total $ 1,387.6 $ 902.8 The following table presents the carrying amounts and estimated fair values of financial instruments not measured at fair value in the Consolidated Balance Sheet (in millions): September 30, 2017 Fair Value Carrying Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,410.9 $ 1,410.9 $ 1,299.4 $ 111.5 $ — Short-term debt 350.4 350.4 — 350.4 — Current portion of long-term debt 250.0 251.6 — 251.6 — Long-term debt 1,243.4 1,452.6 — 1,452.6 — September 30, 2016 Fair Value Carrying Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,526.4 $ 1,526.4 $ 1,480.6 $ 45.8 $ — Short-term debt 448.6 448.6 — 448.6 — Current portion of long-term debt — — — — — Long-term debt 1,516.3 1,780.5 — 1,780.5 — |
Derivative Instruments and Fa38
Derivative Instruments and Fair Value Measurement (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair values of our investments were (in millions): September 30, 2017 Level 1 Level 2 Level 3 Total Certificates of deposit and time deposits $ — $ 1,005.3 $ — $ 1,005.3 Commercial paper — 20.3 — 20.3 Corporate debt securities — 199.4 — 199.4 Government securities 98.9 17.9 — 116.8 Asset-backed securities — 45.8 — 45.8 Total $ 98.9 $ 1,288.7 $ — $ 1,387.6 September 30, 2016 Level 1 Level 2 Level 3 Total Certificates of deposit and time deposits $ — $ 902.8 $ — $ 902.8 Commercial paper — — — — Corporate debt securities — — — — Government securities — — — — Asset-backed securities — — — — Total $ — $ 902.8 $ — $ 902.8 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The pre-tax amount of (losses) gains recorded in other comprehensive income (loss) related to cash flow hedges that would have been recorded in the Consolidated Statement of Operations had they not been so designated was (in millions): 2017 2016 2015 Forward exchange contracts $ (16.1 ) $ (6.6 ) $ 41.7 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The pre-tax amount of gains (losses) reclassified from accumulated other comprehensive loss into the 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 (in millions): 2017 2016 2015 Sales $ 0.3 $ (5.5 ) $ (8.4 ) Cost of sales (2.8 ) 25.5 44.6 Selling, general and administrative expenses (0.5 ) (0.9 ) — Total $ (3.0 ) $ 19.1 $ 36.2 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The pre-tax amount of (losses) gains recorded in other comprehensive income (loss) related to net investment hedges that would have been recorded in the Consolidated Statement of Operations had they not been so designated was (in millions): 2017 2016 2015 Forward exchange contracts $ (16.3 ) $ 2.3 $ (4.4 ) Foreign currency denominated debt — 0.8 1.0 Total $ (16.3 ) $ 3.1 $ (3.4 ) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The pre-tax amount of net (losses) gains recognized within the Consolidated Statement of Operations related to derivative instruments designated as fair value hedges, which fully offset the related net gains and losses on the hedged debt instruments during the periods presented, was (in millions): 2017 2016 2015 Interest expense $ (24.1 ) $ 14.1 $ 5.4 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The pre-tax amount of (losses) gains from forward exchange contracts not designated as hedging instruments recognized in the Consolidated Statement of Operations was (in millions): 2017 2016 2015 Cost of sales $ (1.8 ) $ 0.9 $ — Other income (expense) (8.6 ) (11.1 ) 20.8 Total $ (10.4 ) $ (10.2 ) $ 20.8 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | and their location in our Consolidated Balance Sheet were (in millions): Fair Value (Level 2) Derivatives Designated as Hedging Instruments Balance Sheet Location September 30, 2017 September 30, 2016 Forward exchange contracts Other current assets $ 12.4 $ 5.2 Forward exchange contracts Other assets 0.3 0.6 Forward exchange contracts Other current liabilities (19.1 ) (11.7 ) Forward exchange contracts Other liabilities (5.1 ) (1.8 ) Interest rate swap contracts Other assets — 19.5 Interest rate swap contracts Other liabilities (4.6 ) — Total $ (16.1 ) $ 11.8 Fair Value (Level 2) Derivatives Not Designated as Hedging Instruments Balance Sheet Location September 30, 2017 September 30, 2016 Forward exchange contracts Other current assets $ 0.8 $ 4.4 Forward exchange contracts Other current liabilities (12.2 ) (3.9 ) Total $ (11.4 ) $ 0.5 |
Fair Value, by Balance Sheet Grouping | These investments were included in the following line items within the Consolidated Balance Sheet (in millions): September 30, 2017 2016 Short-term investments $ 1,124.6 $ 902.8 Other assets 263.0 — Total $ 1,387.6 $ 902.8 The following table presents the carrying amounts and estimated fair values of financial instruments not measured at fair value in the Consolidated Balance Sheet (in millions): September 30, 2017 Fair Value Carrying Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,410.9 $ 1,410.9 $ 1,299.4 $ 111.5 $ — Short-term debt 350.4 350.4 — 350.4 — Current portion of long-term debt 250.0 251.6 — 251.6 — Long-term debt 1,243.4 1,452.6 — 1,452.6 — September 30, 2016 Fair Value Carrying Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,526.4 $ 1,526.4 $ 1,480.6 $ 45.8 $ — Short-term debt 448.6 448.6 — 448.6 — Current portion of long-term debt — — — — — Long-term debt 1,516.3 1,780.5 — 1,780.5 — |
Shareowners' Equity (Tables)
Shareowners' Equity (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in outstanding common shares are summarized as follows (in millions): 2017 2016 2015 Beginning balance 128.5 132.4 136.7 Treasury stock purchases (2.3 ) (4.6 ) (5.4 ) Shares delivered under incentive plans 2.2 0.7 1.1 Ending balance 128.4 128.5 132.4 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component for the years ended September 30, 2017 , 2016 and 2015 were (in millions): Pension and other postretirement benefit plan adjustments, net of tax (Note 12) Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Net unrealized gains (losses) on available-for-sale investments, 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 (257.3 ) (199.9 ) 36.7 — (420.5 ) Amounts reclassified from accumulated other comprehensive loss 69.6 — (35.7 ) — 33.9 Other comprehensive (loss) income (187.7 ) (199.9 ) 1.0 — (386.6 ) Balance as of September 30, 2015 $ (1,097.1 ) $ (252.4 ) $ 14.9 $ — $ (1,334.6 ) Other comprehensive (loss) income before reclassifications (216.5 ) (42.5 ) (3.6 ) — (262.6 ) Amounts reclassified from accumulated other comprehensive loss 73.8 — (15.4 ) — 58.4 Other comprehensive (loss) income (142.7 ) (42.5 ) (19.0 ) — (204.2 ) Balance as of September 30, 2016 $ (1,239.8 ) $ (294.9 ) $ (4.1 ) $ — $ (1,538.8 ) Other comprehensive income (loss) before reclassifications 215.2 57.2 (12.3 ) (0.1 ) 260.0 Amounts reclassified from accumulated other comprehensive loss 97.6 — 2.0 — 99.6 Other comprehensive income (loss) $ 312.8 $ 57.2 $ (10.3 ) $ (0.1 ) $ 359.6 Balance as of September 30, 2017 $ (927.0 ) $ (237.7 ) $ (14.4 ) $ (0.1 ) $ (1,179.2 ) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive loss to the Consolidated Statement of Operations for the years ended September 30, 2017 , 2016 and 2015 were (in millions): Year Ended September 30, Affected Line in the Consolidated Statement of Operations 2017 2016 2015 Pension and other postretirement benefit plan adjustments: Amortization of prior service credit $ (9.8 ) $ (14.0 ) $ (17.2 ) (a) Amortization of net actuarial loss 155.2 126.8 123.2 (a) Settlements 2.8 — — (a) 148.2 112.8 106.0 Income before income taxes (50.6 ) (39.0 ) (36.4 ) Income tax provision $ 97.6 $ 73.8 $ 69.6 Net income Net unrealized (gains) losses on cash flow hedges: Forward exchange contracts $ (0.3 ) $ 5.5 $ 8.4 Sales Forward exchange contracts 2.8 (25.5 ) (44.6 ) Cost of sales Forward exchange contracts 0.5 0.9 — Selling, general and administrative expenses 3.0 (19.1 ) (36.2 ) Income before income taxes (1.0 ) 3.7 0.5 Income tax provision $ 2.0 $ (15.4 ) $ (35.7 ) Net income Total reclassifications $ 99.6 $ 58.4 $ 33.9 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 costs. See Note 12 for further information. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | We estimated the fair value of each stock option on the date of grant using the Black-Scholes pricing model and the following assumptions: 2017 2016 2015 Average risk-free interest rate 1.85 % 1.76 % 1.61 % Expected dividend yield 2.21 % 2.78 % 2.25 % Expected volatility 24 % 29 % 31 % Expected term (years) 5.1 5.1 5.1 |
Schedule of Share-Based Compensation, Stock Options, Activity | A summary of stock option activity for the year ended September 30, 2017 is: Shares (in thousands) Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (years) Aggregate Intrinsic Value of In-The-Money Options (in millions) Outstanding at October 1, 2016 5,098 $ 90.96 Granted 1,024 138.09 Exercised (2,168 ) 81.70 Forfeited (59 ) 122.45 Canceled (6 ) 65.54 Outstanding at September 30, 2017 3,889 108.10 7.2 $ 272.6 Vested or expected to vest at September 30, 2017 2,642 92.07 5.7 227.6 Exercisable at September 30, 2017 1,847 92.14 5.6 158.9 |
Schedule of Nonvested Performance Units Activity | A summary of performance share activity for the year ended September 30, 2017 is as follows: Performance Shares (in thousands) Wtd. Avg. Grant Date Share Fair Value Outstanding at October 1, 2016 240 $ 98.73 Granted (1) 42 174.37 Adjustment for performance results achieved (2) (58 ) 108.48 Vested and issued (6 ) 108.48 Forfeited (28 ) 94.41 Outstanding at September 30, 2017 190 112.64 (1) Performance shares granted assuming achievement of performance goals at target. (2) Adjustments were due to the number of shares vested under the fiscal 2014 awards at the end of the three-year performance period ended September 30, 2016 being lower than the target number of shares. |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | The following table summarizes information about performance shares vested during the years ended September 30, 2017 , 2016 and 2015 : 2017 2016 2015 Percent payout 10 % 93 % 187 % Shares vested (in thousands) 6 67 154 Total fair value of shares vested (in millions) $ 0.9 $ 7.1 $ 17.2 |
Schedule of Share-Based Payment Award, Performance-Based Units, Valuation Assumptions | The per-share fair value of performance share awards granted during the years ended September 30, 2017 , 2016 and 2015 was $174.37 , $87.64 and $103.70 , respectively, which we determined using a Monte Carlo simulation and the following assumptions: 2017 2016 2015 Average risk-free interest rate 1.35 % 1.21 % 0.96 % Expected dividend yield 2.20 % 2.75 % 2.22 % Expected volatility 23 % 22 % 24 % |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted stock and restricted stock unit activity for the year ended September 30, 2017 is as follows: Restricted Stock and Restricted Stock Units (in thousands) Wtd. Avg. Grant Date Share Fair Value Outstanding at October 1, 2016 156 $ 108.63 Granted 52 138.32 Vested (54 ) 109.82 Forfeited (13 ) 110.51 Outstanding at September 30, 2017 141 118.87 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost (income) are (in millions): Other Postretirement Pension Benefits Benefits 2017 2016 2015 2017 2016 2015 Service cost $ 97.0 $ 88.0 $ 85.7 $ 1.4 $ 1.3 $ 1.5 Interest cost 151.6 169.5 167.2 2.5 3.3 4.1 Expected return on plan assets (225.2 ) (218.3 ) (223.2 ) — — — Amortization: Prior service credit (3.7 ) (2.9 ) (2.7 ) (6.1 ) (11.1 ) (14.5 ) Net actuarial loss 152.9 124.5 118.7 2.3 2.3 4.5 Special termination benefit 0.5 0.5 — — — — Settlements 2.8 — — — — — Net periodic benefit cost (income) $ 175.9 $ 161.3 $ 145.7 $ 0.1 $ (4.2 ) $ (4.4 ) |
Schedule of Net Funded Status | Benefit obligation, plan assets, funded status and net liability information is summarized as follows (in millions): Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 Benefit obligation at beginning of year $ 4,785.9 $ 4,282.2 $ 86.9 $ 93.3 Service cost 97.0 88.0 1.4 1.3 Interest cost 151.6 169.5 2.5 3.3 Actuarial (gains) losses (221.9 ) 515.4 (3.8 ) (0.2 ) Plan amendments (6.9 ) (10.0 ) — — Plan participant contributions 3.9 4.3 3.4 4.0 Benefits paid (251.9 ) (232.0 ) (13.4 ) (14.9 ) Special termination benefit 0.5 0.5 — — Settlements (13.8 ) — — — Curtailments (1.0 ) — — — Currency translation and other 41.6 (32.0 ) 0.8 0.1 Benefit obligation at end of year 4,585.0 4,785.9 77.8 86.9 Plan assets at beginning of year 3,447.9 3,262.5 — — Actual return on plan assets 315.5 394.3 — — Company contributions 254.9 44.3 10.0 10.9 Plan participant contributions 3.9 4.3 3.4 4.0 Benefits paid (251.9 ) (232.0 ) (13.4 ) (14.9 ) Settlements (13.8 ) — — — Currency translation and other 31.8 (25.5 ) — — Plan assets at end of year 3,788.3 3,447.9 — — Funded status of plans $ (796.7 ) $ (1,338.0 ) $ (77.8 ) $ (86.9 ) |
Schedule of Amounts Recognized in Balance Sheet | Net amount on balance sheet consists of: Other assets $ 10.6 $ 0.1 $ — $ — Compensation and benefits (11.7 ) (11.6 ) (9.5 ) (10.5 ) Retirement benefits (795.6 ) (1,326.5 ) (68.3 ) (76.4 ) Net amount on balance sheet $ (796.7 ) $ (1,338.0 ) $ (77.8 ) $ (86.9 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Amounts included in accumulated other comprehensive loss, net of tax, at September 30, 2017 and 2016 which have not yet been recognized in net periodic benefit cost are as follows (in millions): Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 Prior service cost (credit) $ 5.3 $ 4.9 $ (12.2 ) $ (15.9 ) Net actuarial loss 921.9 1,235.1 12.0 15.7 Total $ 927.2 $ 1,240.0 $ (0.2 ) $ (0.2 ) |
Schedule of Assumptions Used | Net Periodic Benefit Cost Assumptions Significant assumptions used in determining net periodic benefit cost included in the Consolidated Statement of Operations for the period ended September 30 are (in weighted averages): Pension Benefits September 30, Other Postretirement Benefits September 30, 2017 2016 2015 2017 2016 2015 U.S. Plans Discount rate 3.75 % 4.55 % 4.50 % 3.10 % 3.85 % 3.65 % Expected return on plan assets 7.50 % 7.50 % 7.50 % — — — Compensation increase rate 3.50 % 3.75 % 3.75 % — — — Non-U.S. Plans Discount rate 1.77 % 2.67 % 3.01 % 2.80 % 3.60 % 3.50 % Expected return on plan assets 5.12 % 5.21 % 5.31 % — — — Compensation increase rate 2.86 % 3.11 % 3.16 % — — — Net Benefit Obligation Assumptions Significant assumptions used in determining the benefit obligations included in the Consolidated Balance Sheet are (in weighted averages): Pension Benefits September 30, Other Postretirement Benefits September 30, 2017 2016 2017 2016 U.S. Plans Discount rate 3.90 % 3.75 % 3.40 % 3.10 % Compensation increase rate 3.50 % 3.50 % — — Health care cost trend rate (1) — — 6.50 % 6.50 % Non-U.S. Plans Discount rate 2.30 % 1.77 % 3.20 % 2.80 % Compensation increase rate 2.99 % 2.86 % — — Health care cost trend rate (1) — — 4.50 % 4.95 % (1) The health care cost trend rate reflects the estimated increase in gross medical claims costs. As a result of the plan amendment adopted effective October 1, 2002, our effective per person retiree medical cost increase is zero percent beginning in 2005 for the majority of our postretirement benefit plans. For our other plans, we assume the gross health care cost trend rate will decrease to 5.50% in 2019 for U.S. Plans and will not change in 2018 for Non-U.S. Plans. |
Schedule Of Weighted Average Allocation Of Plan Assets | Our global weighted-average targeted and actual asset allocations at September 30, by asset category, are: Allocation Target September 30, Asset Category Range Allocations 2017 2016 Equity securities 40% – 65% 52% 50% 50% Debt securities 30% – 50% 40% 42% 41% Other 0% – 15% 8% 8% 9% |
Schedule of Allocation of Plan Assets | The following table presents our pension plans’ investments measured at fair value as of September 30, 2017 : Level 1 Level 2 Level 3 Total U.S. Plans Cash and cash equivalents $ 1.1 $ — $ — $ 1.1 Equity securities: Mutual funds 230.1 — — 230.1 Common stock 911.7 — — 911.7 Common collective trusts — 411.2 — 411.2 Fixed income securities: Corporate debt — 663.7 — 663.7 Government securities 247.0 109.4 — 356.4 Common collective trusts — 204.1 — 204.1 Other types of investments: Insurance contracts — — 0.9 0.9 Total U.S. Plans investments in fair value hierarchy $ 1,389.9 $ 1,388.4 $ 0.9 2,779.2 U.S. Plans investments measured at NAV: Private equity 49.9 Alternative equity 61.0 Total U.S. Plans investments 2,890.1 Non-U.S. Plans Cash and cash equivalents $ 3.3 $ — $ — 3.3 Equity securities: Common stock 57.3 — — 57.3 Common collective trusts — 311.1 — 311.1 Fixed income securities: Corporate debt — 37.0 — 37.0 Government securities 1.2 14.8 — 16.0 Common collective trusts — 301.1 — 301.1 Other types of investments: Real estate funds — 86.6 — 86.6 Insurance contracts — — 71.5 71.5 Other — — 4.8 4.8 Total Non-U.S. Plans investments in fair value hierarchy $ 61.8 $ 750.6 $ 76.3 888.7 Non-U.S. Plans investments measured at NAV: Real estate funds 9.5 Total Non-U.S. Plans investments 898.2 Total investments measured at fair value $ 3,788.3 The following table presents our pension plans’ investments measured at fair value as of September 30, 2016 : Level 1 Level 2 Level 3 Total U.S. Plans Cash and cash equivalents $ 2.9 $ — $ — $ 2.9 Equity securities: Mutual funds 203.6 — — 203.6 Common stock 705.9 — — 705.9 Common collective trusts — 483.6 — 483.6 Fixed income securities: Corporate debt — 591.8 — 591.8 Government securities 252.6 99.5 — 352.1 Common collective trusts — 161.4 — 161.4 Other types of investments: Insurance contracts — — 0.9 0.9 Total U.S. Plans investments in fair value hierarchy $ 1,165.0 $ 1,336.3 $ 0.9 2,502.2 U.S. Plans investments measured at NAV: Private equity 57.1 Alternative equity 56.9 Total U.S. Plans investments 2,616.2 Non-U.S. Plans Cash and cash equivalents $ 1.9 $ — $ — 1.9 Equity securities: Common stock 48.6 — — 48.6 Common collective trusts — 279.3 — 279.3 Fixed income securities: Corporate debt — 34.1 — 34.1 Government securities 10.0 7.6 — 17.6 Common collective trusts — 271.1 — 271.1 Other types of investments: Real estate funds — 85.4 — 85.4 Insurance contracts — — 79.7 79.7 Other — — 4.8 4.8 Total Non-U.S. Plans investments in fair value hierarchy $ 60.5 $ 677.5 $ 84.5 822.5 Non-U.S. Plans investments measured at NAV: Real estate funds 9.2 Total Non-U.S. Plans investments 831.7 Total investments measured at fair value $ 3,447.9 |
Defined Benefit Plan Change in Fair Value of Plan Assets Level Three | The table below sets forth a summary of changes in fair market value of our pension plans’ Level 3 assets for the year ended September 30, 2017 : Balance October 1, 2016 Realized Gains (Losses) Unrealized Gains (Losses) Purchases, Sales, Issuances, and Settlements, Net Balance September 30, 2017 U.S. Plans Insurance contracts $ 0.9 $ — $ — $ — $ 0.9 Non-U.S. Plans Insurance contracts 79.7 — (13.4 ) 5.2 71.5 Other 4.8 — — — 4.8 $ 85.4 $ — $ (13.4 ) $ 5.2 $ 77.2 The table below sets forth a summary of changes in fair market value of our pension plans’ Level 3 assets for the year ended September 30, 2016 : Balance October 1, 2015 Realized Gains (Losses) Unrealized Gains (Losses) Purchases, Sales, Issuances, and Settlements, Net Balance September 30, 2016 U.S. Plans Insurance contracts $ 0.9 $ — $ — $ — $ 0.9 Non-U.S. Plans Insurance contracts 63.8 — 14.5 1.4 79.7 Other 4.4 — — 0.4 4.8 $ 69.1 $ — $ 14.5 $ 1.8 $ 85.4 |
Schedule of Expected Benefit Payments | The following benefit payments, which include employees’ expected future service, as applicable, are expected to be paid (in millions): Pension Benefits Other Postretirement Benefits 2018 $ 267.1 $ 9.7 2019 258.3 9.3 2020 272.7 6.0 2021 289.0 4.9 2022 305.8 4.7 2023 – 2027 1,451.6 20.2 |
Schedule of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percentage point change in assumed health care cost trend rates would not have a material impact on our service and interest cost components or postretirement benefit obligation. |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Information regarding our pension plans with accumulated benefit obligations in excess of the fair value of plan assets (underfunded plans) at September 30, 2017 and 2016 are as follows (in millions): 2017 2016 Projected benefit obligation $ 4,280.9 $ 4,784.5 Accumulated benefit obligation 3,956.8 4,428.0 Fair value of plan assets 3,473.6 3,446.5 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Components of other income (expense) | The components of other income (expense) are (in millions): 2017 2016 2015 Gain on sale of business $ 60.8 $ — $ — Interest income 19.6 12.7 10.7 Royalty income 8.9 2.9 2.9 Legacy product liability and environmental charges (8.3 ) (12.7 ) (19.8 ) Other (0.1 ) 3.4 0.7 Other income (expense) $ 80.9 $ 6.3 $ (5.5 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | 2017 2016 2015 Components of income before income taxes: United States $ 547.2 $ 512.1 $ 660.5 Non-United States 490.2 431.0 467.0 Total $ 1,037.4 $ 943.1 $ 1,127.5 |
Schedule of Components of Income Tax Expense (Benefit) | Components of the income tax provision: Current: United States $ 67.3 $ 175.9 $ 238.6 Non-United States 109.9 91.7 73.6 State and local 0.7 16.3 17.0 Total current 177.9 283.9 329.2 Deferred: United States 44.6 (53.7 ) (30.3 ) Non-United States (14.1 ) (8.8 ) 2.6 State and local 3.3 (8.0 ) (1.6 ) Total deferred 33.8 (70.5 ) (29.3 ) Income tax provision $ 211.7 $ 213.4 $ 299.9 Total income taxes paid $ 211.9 $ 299.8 $ 313.1 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation between the U.S. federal statutory rate and our effective tax rate was: 2017 2016 2015 Statutory tax rate 35.0 % 35.0 % 35.0 % State and local income taxes 0.7 0.6 0.9 Non-United States taxes (9.3 ) (8.6 ) (7.9 ) Tax effect of foreign dividends 0.5 0.1 (0.2 ) Foreign currency transaction loss (1.9 ) (0.8 ) — Share-based compensation (2.8 ) — — Research and development tax credit (0.6 ) (2.0 ) (0.6 ) Change in valuation allowances 0.1 (0.6 ) (0.5 ) Domestic manufacturing deduction (0.9 ) (1.2 ) (1.2 ) Adjustments for prior period tax matters (0.4 ) 0.4 0.5 Other — (0.3 ) 0.6 Effective income tax rate 20.4 % 22.6 % 26.6 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to our net deferred income tax assets (liabilities) at September 30, 2017 and 2016 were (in millions): 2017 2016 Deferred income tax assets: Compensation and benefits $ 18.8 $ 16.2 Inventory 20.2 18.0 Returns, rebates and incentives 45.9 55.1 Retirement benefits 305.5 493.6 Environmental remediation and other site-related costs 33.4 34.8 Share-based compensation 32.4 40.6 Other accruals and reserves 71.3 60.5 Net operating loss carryforwards 20.4 24.4 Tax credit carryforwards 15.3 13.7 Capital loss carryforwards 10.3 9.9 Other 11.1 11.4 Subtotal 584.6 778.2 Valuation allowance (18.6 ) (17.3 ) Net deferred income tax assets 566.0 760.9 Deferred income tax liabilities: Property (74.0 ) (63.5 ) Intangible assets (45.9 ) (54.9 ) Other (2.5 ) (8.6 ) Deferred income tax liabilities (122.4 ) (127.0 ) Total net deferred income tax assets $ 443.6 $ 633.9 |
Schedule of Tax Attributes and Valuation Allowances | Tax attributes and related valuation allowances at September 30, 2017 were (in millions): Tax Attribute to be Carried Forward Tax Benefit Amount Valuation Allowance Carryforward Non-United States net operating loss carryforward $ 6.2 $ 5.8 2018 - 2027 Non-United States net operating loss carryforward 4.7 1.7 Indefinite Non-United States capital loss carryforward 10.3 10.3 Indefinite United States net operating loss carryforward 1.2 — 2019 - 2033 United States tax credit carryforward 2.2 — 2018 - 2037 State and local net operating loss carryforward 8.3 0.2 2018 - 2037 State tax credit carryforward 13.1 0.6 2019 - 2032 Total 46.0 18.6 |
Summary of Income Tax Contingencies | A reconciliation of our gross unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2017 2016 2015 Gross unrecognized tax benefits balance at beginning of year $ 32.4 $ 43.9 $ 38.9 Additions based on tax positions related to the current year 1.9 2.3 2.1 Additions based on tax positions related to prior years 10.8 14.9 11.6 Reductions based on tax positions related to prior years (0.1 ) — (1.0 ) Reductions related to settlements with taxing authorities (7.7 ) (27.1 ) (4.3 ) Reductions related to lapses of statute of limitations (6.3 ) (1.6 ) (1.6 ) Effect of foreign currency translation 0.1 — (1.8 ) Gross unrecognized tax benefits balance at end of year $ 31.1 $ 32.4 $ 43.9 |
Commitments and Contingent Li44
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | Obligations and expected recoveries related to environmental remediation costs, conditional asset retirement obligations and other recorded indemnification matters as of September 30, 2017 and 2016 are as follows: 2017 2016 Environmental remediation costs $ 67.6 $ 73.9 Conditional asset retirement obligations 21.2 20.6 Indemnification liabilities 12.0 17.0 Total recorded liabilities 100.8 111.5 Recorded probable expected recoveries (17.8 ) (22.5 ) Net recorded liabilities $ 83.0 $ 89.0 |
Environmental Remediation Cost Liabilities and Related Expected Recoveries | Environmental remediation cost liabilities and related expected recoveries at September 30, 2017 are as follows (in millions): 2017 Other current liabilities $ 10.7 Other liabilities 56.9 Total recorded environmental remediation costs (1) 67.6 Receivables (1.2 ) Other assets (10.1 ) Total recorded probable expected recoveries (11.3 ) Net environmental remediation costs $ 56.3 (1) Includes $47.5 million related to discounted ongoing operating and maintenance expenditures. |
Schedule of Asset Retirement Obligations | Conditional asset retirement obligations and related expected recoveries at September 30, 2017 and 2016 are as follows (in millions): 2017 2016 Other current liabilities $ 0.7 $ 0.7 Other liabilities 20.5 19.9 Total recorded conditional asset retirement obligations 21.2 20.6 Receivables (0.1 ) (0.1 ) Other assets (0.2 ) (0.2 ) Total recorded probable expected recoveries (0.3 ) (0.3 ) Net conditional asset retirement obligations $ 20.9 $ 20.3 |
Indemnification Liabilities and Expected Recoveries | Indemnification liabilities and related expected recoveries at September 30, 2017 and 2016 are as follows (in millions): 2017 2016 Other current liabilities $ 2.5 $ 4.9 Other liabilities 9.5 12.1 Total recorded indemnification liabilities 12.0 17.0 Receivables (1.6 ) (3.5 ) Other assets (4.6 ) (7.3 ) Total recorded probable expected recoveries (6.2 ) (10.8 ) Net indemnification liabilities $ 5.8 $ 6.2 |
Leases of Lessee Disclosure | As of September 30, 2017 , minimum future rental commitments under operating leases having noncancelable lease terms in excess of one year are payable as follows (in millions): 2018 $ 73.3 2019 62.4 2020 52.1 2021 36.6 2022 25.8 Beyond 2022 34.8 Total $ 285.0 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables reflect the sales and operating results of our reportable segments for the years ended September 30 , 2017 , 2016 and 2015 (in millions): 2017 2016 2015 Sales: Architecture & Software $ 2,899.3 $ 2,635.2 $ 2,749.5 Control Products & Solutions 3,412.0 3,244.3 3,558.4 Total $ 6,311.3 $ 5,879.5 $ 6,307.9 Segment operating earnings: Architecture & Software $ 781.5 $ 695.0 $ 808.6 Control Products & Solutions 451.6 493.7 551.9 Total 1,233.1 1,188.7 1,360.5 Purchase accounting depreciation and amortization (21.4 ) (18.4 ) (21.0 ) General corporate-net (76.3 ) (79.7 ) (85.6 ) Non-operating pension costs (82.6 ) (76.2 ) (62.7 ) Gain on sale of business 60.8 — — Interest expense (76.2 ) (71.3 ) (63.7 ) Income before income taxes $ 1,037.4 $ 943.1 $ 1,127.5 |
Components of Identifiable Assets, Depreciation and Amortization, and Capital Expenditures for Property | The following tables summarize the identifiable assets at September 30 , 2017 , 2016 and 2015 and the provision for depreciation and amortization and the amount of capital expenditures for property for the years then ended for each of the reportable segments and Corporate (in millions): 2017 2016 2015 Identifiable assets: Architecture & Software $ 2,482.8 $ 2,054.3 $ 1,790.5 Control Products & Solutions 2,078.2 2,034.6 2,078.1 Corporate 2,600.7 3,012.3 2,536.1 Total $ 7,161.7 $ 7,101.2 $ 6,404.7 Depreciation and amortization: Architecture & Software $ 69.3 $ 75.0 $ 69.7 Control Products & Solutions 75.0 77.3 70.3 Corporate 3.2 1.5 1.5 Total 147.5 153.8 141.5 Purchase accounting depreciation and amortization 21.4 18.4 21.0 Total $ 168.9 $ 172.2 $ 162.5 Capital expenditures for property: Architecture & Software $ 30.0 $ 24.7 $ 29.4 Control Products & Solutions 42.1 41.5 56.8 Corporate 69.6 50.7 36.7 Total $ 141.7 $ 116.9 $ 122.9 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | We conduct a significant portion of our business activities outside the United States. The following tables present sales and property by geographic region (in millions): Sales Property 2017 2016 2015 2017 2016 2015 United States $ 3,458.4 $ 3,213.4 $ 3,446.8 $ 443.4 $ 445.4 $ 472.1 Canada 343.4 316.4 366.6 8.8 7.3 7.3 Europe, Middle East and Africa 1,193.7 1,147.2 1,174.0 52.5 49.9 50.4 Asia Pacific 866.4 764.4 834.5 40.0 37.4 41.9 Latin America 449.4 438.1 486.0 39.2 38.3 33.9 Total $ 6,311.3 $ 5,879.5 $ 6,307.9 $ 583.9 $ 578.3 $ 605.6 |
Quarterly Financial Informati46
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2017 Quarters (in millions, except per share amounts) First Second Third Fourth 2017 Sales $ 1,490.3 $ 1,554.3 $ 1,599.2 1,667.5 $ 6,311.3 Gross profit 642.3 656.5 677.7 647.7 2,624.2 Income before income taxes 257.6 230.3 276.0 273.5 1,037.4 Net income 214.7 189.5 216.9 204.6 825.7 Earnings per share: Basic 1.67 1.47 1.69 1.59 6.42 Diluted 1.65 1.45 1.67 1.57 6.35 2016 Quarters (in millions, except per share amounts) First Second Third Fourth 2016 Sales $ 1,426.6 $ 1,440.3 $ 1,474.0 $ 1,538.6 $ 5,879.5 Gross profit 612.7 594.1 616.8 651.9 2,475.5 Income before income taxes 236.9 217.0 252.3 236.9 943.1 Net income 185.5 168.0 191.0 185.2 729.7 Earnings per share: Basic 1.41 1.29 1.47 1.44 5.60 Diluted 1.40 1.28 1.46 1.43 5.56 Note: The sum of the quarterly per share amounts will not necessarily equal the annual per share amounts presented. |
Basis of Presentation and Acc47
Basis of Presentation and Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciled Basic and Diluted EPS | |||||||||||
Net income | $ 204.6 | $ 216.9 | $ 189.5 | $ 214.7 | $ 185.2 | $ 191 | $ 168 | $ 185.5 | $ 825.7 | $ 729.7 | $ 827.6 |
Less: Allocation to participating securities | (0.9) | (0.7) | (0.7) | ||||||||
Net income available to common shareowners | $ 824.8 | $ 729 | $ 826.9 | ||||||||
Basic weighted average outstanding shares | 128.4 | 130.2 | 134.5 | ||||||||
Effect of dilutive securities | |||||||||||
Stock options | 1.2 | 0.9 | 1.1 | ||||||||
Performance shares | 0.3 | 0 | 0.1 | ||||||||
Diluted weighted average outstanding shares | 129.9 | 131.1 | 135.7 | ||||||||
Basic earnings per share: | |||||||||||
Basic | $ 1.59 | $ 1.69 | $ 1.47 | $ 1.67 | $ 1.44 | $ 1.47 | $ 1.29 | $ 1.41 | $ 6.42 | $ 5.60 | $ 6.15 |
Diluted earnings per share: | |||||||||||
Diluted | $ 1.57 | $ 1.67 | $ 1.45 | $ 1.65 | $ 1.43 | $ 1.46 | $ 1.28 | $ 1.40 | $ 6.35 | $ 5.56 | $ 6.09 |
Basis of Presentation and Acc48
Basis of Presentation and Accounting Policies (Details Textuals) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | |||
Percentage of consolidated sales recorded when all of the following have occurred: persuasive evidence of a sales agreement exists; pricing is fixed or determinable; collection is reasonably assured; and product has been delivered and acceptance has occurred, as may be required according to contract terms, or services have been rendered | 85.00% | ||
Allowances for doubtful accounts | $ 24.9 | $ 24.5 | |
Allowance for certain customer returns, rebates and incentives | 11.9 | 7.9 | |
Research and development costs | $ 348.2 | $ 319.3 | $ 307.3 |
Antidilutive share-based compensation awards | 0.7 | 2.2 | 1.4 |
Reduction in income tax provision from early adoption of new share-based compensation standard | $ 29 |
Basis of Presentation and Acc49
Basis of Presentation and Accounting Policies (Details Textuals 2) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Capital expenditures in accounts payable or other current liabilities at year end | $ 29.6 | $ 29.9 | $ 27.3 |
Minimum [Member] | Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum [Member] | Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Maximum [Member] | Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 8 years |
Basis of Presentation and Acc50
Basis of Presentation and Accounting Policies (Details Textuals 3) | 12 Months Ended |
Sep. 30, 2017 | |
Minimum [Member] | Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 3 years |
Minimum [Member] | Customer relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 8 years |
Minimum [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 5 years |
Minimum [Member] | Other Intangible assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 5 years |
Maximum [Member] | Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 15 years |
Maximum [Member] | Customer relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 20 years |
Maximum [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 17 years |
Maximum [Member] | Other Intangible assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 30 years |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill | ||
Beginning balance | $ 1,073.9 | $ 1,028.8 |
Acquisition of businesses | 0.8 | 72.7 |
Divestiture of business (Note 13) | (10.3) | |
Translation | 13.3 | (27.6) |
Ending balance | 1,077.7 | 1,073.9 |
Architecture and Software [Member] | ||
Goodwill | ||
Beginning balance | 414.5 | 388 |
Acquisition of businesses | 0 | 35 |
Divestiture of business (Note 13) | 0 | |
Translation | 2.7 | (8.5) |
Ending balance | 417.2 | 414.5 |
Control Products and Solutions [Member] | ||
Goodwill | ||
Beginning balance | 659.4 | 640.8 |
Acquisition of businesses | 0.8 | 37.7 |
Divestiture of business (Note 13) | (10.3) | |
Translation | 10.6 | (19.1) |
Ending balance | $ 660.5 | $ 659.4 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired during year | $ 57.5 | ||
Other intangible assets | |||
Amortized intangible assets, carrying amount | $ 457.8 | 441.3 | |
Amortized intangible assets, accumulated amortization | 263.5 | 229.7 | |
Amortized intangible assets, net | 194.3 | 211.6 | |
Intangible asset amortization expense | 30.2 | 28.9 | $ 29.4 |
Allen-Bradley® trademark not subject to amortization | 43.7 | 43.7 | |
Total other intangible assets, carrying amount | 501.5 | 485 | |
Total other intangible assets, net | 238 | 255.3 | |
Goodwill and Other Intangible Assets (Textuals) [Abstract] | |||
Estimated amortization expense in 2018 | 27.5 | ||
Estimated amortization expense in 2019 | 24.5 | ||
Estimated amortization expense in 2020 | 21.4 | ||
Estimated amortization expense in 2021 | 20.6 | ||
Estimated amortization expense in 2022 | 18.7 | ||
Computer software products [Member] | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 194.8 | 182.4 | |
Amortized intangible assets, accumulated amortization | 113.2 | 103.4 | |
Amortized intangible assets, net | 81.6 | 79 | |
Intangible asset amortization expense | 9.8 | 11.5 | $ 9.4 |
Customer relationships [Member] | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 114.5 | 112.6 | |
Amortized intangible assets, accumulated amortization | 61.5 | 51.9 | |
Amortized intangible assets, net | 53 | 60.7 | |
Technology [Member] | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 104.8 | 103.9 | |
Amortized intangible assets, accumulated amortization | 57.9 | 48.5 | |
Amortized intangible assets, net | 46.9 | 55.4 | |
Trademarks [Member] | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 32.3 | 31.4 | |
Amortized intangible assets, accumulated amortization | 21.1 | 17 | |
Amortized intangible assets, net | 11.2 | 14.4 | |
Other [Member] | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 11.4 | 11 | |
Amortized intangible assets, accumulated amortization | 9.8 | 8.9 | |
Amortized intangible assets, net | $ 1.6 | $ 2.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Inventories | ||
Finished goods | $ 218.7 | $ 215.8 |
Work in process | 168 | 158 |
Raw materials | 172 | 152.8 |
Inventories | $ 558.7 | $ 526.6 |
Property, net (Details)
Property, net (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Property, net | |||
Land | $ 5.2 | $ 4.5 | |
Buildings and improvements | 351.6 | 333.7 | |
Machinery and equipment | 1,145.8 | 1,085.1 | |
Internal-use software | 461.5 | 451.1 | |
Construction in progress | 131.7 | 108.4 | |
Total | 2,095.8 | 1,982.8 | |
Less accumulated depreciation | (1,511.9) | (1,404.5) | |
Property, net | $ 583.9 | $ 578.3 | $ 605.6 |
Long-term and Short-term Debt55
Long-term and Short-term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Long-term debt | ||
Unamortized discount and other | $ (52) | $ (53.2) |
Total | 1,493.4 | 1,516.3 |
Less current portion | (250) | 0 |
Long-term debt | 1,243.4 | 1,516.3 |
5.65% notes, payable in December 2017 | ||
Long-term debt | ||
Debt instruments | $ 250 | 250 |
Stated interest rate | 5.65% | |
Maturity date | Dec. 1, 2017 | |
2.050% notes, payable in March 2020 | ||
Long-term debt | ||
Debt instruments | $ 298.7 | 305.1 |
Stated interest rate | 2.05% | |
Maturity date | Mar. 1, 2020 | |
2.875% notes, payable in March 2025 | ||
Long-term debt | ||
Debt instruments | $ 296.7 | 314.4 |
Stated interest rate | 2.875% | |
Maturity date | Mar. 1, 2025 | |
6.70% debentures, payable in January 2028 | ||
Long-term debt | ||
Debt instruments | $ 250 | 250 |
Stated interest rate | 6.70% | |
Maturity date | Jan. 15, 2028 | |
6.25% debentures, payable in December 2037 | ||
Long-term debt | ||
Debt instruments | $ 250 | 250 |
Stated interest rate | 6.25% | |
Maturity date | Dec. 1, 2037 | |
5.20% debentures, payable in January 2098 | ||
Long-term debt | ||
Debt instruments | $ 200 | $ 200 |
Stated interest rate | 5.20% | |
Maturity date | Jan. 15, 2098 |
Long-term and Short-term Debt56
Long-term and Short-term Debt (Details Textuals 1) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Long-term debt | ||
Fair value of interest rate swap contracts | $ 4.6 | |
Short-term Debt | ||
Commercial paper borrowings outstanding | $ 350 | $ 448.6 |
Weighted average interest rate of commercial paper outstanding | 1.26% | 0.57% |
2.050% notes, payable in March 2020 | ||
Long-term debt | ||
Stated interest rate | 2.05% | |
Maturity date | Mar. 1, 2020 | |
Effective floating interest rate | 1.755% | |
2.875% notes, payable in March 2025 | ||
Long-term debt | ||
Stated interest rate | 2.875% | |
Maturity date | Mar. 1, 2025 | |
Effective floating interest rate | 2.165% | |
Aggregate principal amount of notes issued | ||
Long-term debt | ||
Long-term debt issued | $ 600 |
Long-term and Short-term Debt57
Long-term and Short-term Debt (Details Textuals 2) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Debt Disclosure [Abstract] | |||
Interest payments | $ 74.2 | $ 69.2 | $ 60.8 |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity | $ 1,000 | ||
Expiration date | Mar. 24, 2020 | ||
Option to increase borrowing capacity of credit facility | $ 350 | ||
Non US Facilities [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity | $ 128.4 | ||
Maximum [Member] | Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum debt to total capital ratio required by debt covenants | 0.60 | ||
Maximum ratio of EBITDA to interest expense under credit facility | 3 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Other current liabilities | |||
Unrealized losses on foreign exchange contracts (Note 9) | $ 31.3 | $ 15.6 | |
Product warranty obligations (Note 7) | 28.5 | 28 | $ 27.9 |
Taxes other than income taxes | 42.7 | 43.1 | |
Accrued interest | 16.9 | 16.9 | |
Income taxes payable | 32.6 | 28.6 | |
Rocky Flats settlement (Note 18) | 242.5 | ||
Other | 68.2 | 72.9 | |
Other current liabilities | $ 220.2 | $ 447.6 |
Product Warranty Obligations (D
Product Warranty Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in product warranty obligations | ||
Beginning balance | $ 28 | $ 27.9 |
Warranties recorded at time of sale | 25.8 | 25 |
Adjustments to pre-existing warranties | (0.2) | 1.2 |
Settlements of warranty claims | (25.1) | (26.1) |
Ending balance | $ 28.5 | $ 28 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Investment [Line Items] | ||
Total | $ 1,387.6 | $ 902.8 |
Certificates of deposit and time deposits [Member] | ||
Investment [Line Items] | ||
Total | 1,005.3 | 902.8 |
Commercial Paper [Member] | ||
Investment [Line Items] | ||
Total | 20.3 | 0 |
Corporate Debt Securities [Member] | ||
Investment [Line Items] | ||
Total | 199.4 | 0 |
Government securities [Member] | ||
Investment [Line Items] | ||
Total | 116.8 | 0 |
Asset-backed Securities [Member] | ||
Investment [Line Items] | ||
Total | $ 45.8 | $ 0 |
Investments (Details 1)
Investments (Details 1) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Investments [Abstract] | ||
Less than one year | $ 1,124.6 | |
Due in one to five years | 263 | |
Total | 1,387.6 | $ 902.8 |
Purchases of investments, amount outstanding | $ 1 |
Investments (Details 2)
Investments (Details 2) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | $ 1,387.6 | $ 902.8 |
Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 1,124.6 | 902.8 |
Other assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | $ 263 | $ 0 |
Derivative Instruments and Fa63
Derivative Instruments and Fair Value Measurement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | |||
Pre-tax (losses) gains recorded in other comprehensive income related to cash flow hedges | $ (16.1) | $ (6.6) | $ 41.7 |
Pre-tax gains (losses) recorded in other comprehensive income related to net investment hedges | (16.3) | 3.1 | (3.4) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Pre-tax amount of (losses) gains reclassified from accumulated other comprehensive income into the Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges | (3) | 19.1 | 36.2 |
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 | (10.4) | (10.2) | 20.8 |
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract] | |||
Net unrealized losses on cash flow hedges to be reclassified into earnings during the next 12 months | $ (15.4) | ||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 2 years | ||
No impact on earnings due to ineffective cash flow hedges | no impact | ||
No impact on earnings due to ineffective net investment hedges | no impact | ||
No impact on earnings due to ineffective fair value hedges | no impact | ||
Sales [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Pre-tax amount of (losses) gains reclassified from accumulated other comprehensive income into the Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges | $ 0.3 | (5.5) | (8.4) |
Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Pre-tax amount of (losses) gains reclassified from accumulated other comprehensive income into the Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges | (2.8) | 25.5 | 44.6 |
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 | (1.8) | 0.9 | 0 |
Selling, General and Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Pre-tax amount of (losses) gains reclassified from accumulated other comprehensive income into the Consolidated Statement of Operations related to derivative forward exchange contracts designated as cash flow hedges | (0.5) | (0.9) | 0 |
Interest expense [Member] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||
Pre-tax amount of net gains recognized within the Consolidated Statement of Operations related to derivative instruments designated as fair value hedges, which fully offset the related net gains on the hedged debt instruments | (24.1) | 14.1 | 5.4 |
Other (expense) income [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 | (8.6) | (11.1) | 20.8 |
Foreign Exchange Forward [Member] | |||
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 net investment hedges | (16.3) | 2.3 | (4.4) |
Foreign Currency Denominated Debt [Member] | |||
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 net investment hedges | $ 0 | $ 0.8 | $ 1 |
Derivative Instruments and Fa64
Derivative Instruments and Fair Value Measurement (Details 1) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
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 | $ (16.1) | $ 11.8 |
Net derivative asset / (liability) not designated as hedging instruments | (11.4) | 0.5 |
Fair Value, Inputs, Level 2 [Member] | Other Current Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Forward exchange contracts designated as hedging instruments | 12.4 | 5.2 |
Forward exchange contracts not designated as hedging instruments | 0.8 | 4.4 |
Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Forward exchange contracts designated as hedging instruments | 0.3 | 0.6 |
Interest rate swap contracts designated as hedging instruments | 0 | 19.5 |
Fair Value, Inputs, Level 2 [Member] | Other Current Liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Forward exchange contracts designated as hedging instruments | (19.1) | (11.7) |
Forward exchange contracts not designated as hedging instruments | (12.2) | (3.9) |
Fair Value, Inputs, Level 2 [Member] | Other Liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Forward exchange contracts designated as hedging instruments | (5.1) | $ (1.8) |
Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,643.4 | |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 224.9 | |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 741.2 | |
Foreign Exchange Forward [Member] | Net Investment Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 677.3 | |
Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 600 | |
Aggregate principal amount of notes issued | ||
Derivatives, Fair Value [Line Items] | ||
Long-term debt | $ 600 |
Derivative Instruments and Fa65
Derivative Instruments and Fair Value Measurement (Details 2) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 1,387.6 | $ 902.8 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 98.9 | 0 |
Fair Value, Inputs, Level 1 [Member] | Certificates of deposit and time deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 98.9 | 0 |
Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,288.7 | 902.8 |
Fair Value, Inputs, Level 2 [Member] | Certificates of deposit and time deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,005.3 | 902.8 |
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 20.3 | 0 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 199.4 | 0 |
Fair Value, Inputs, Level 2 [Member] | Government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 17.9 | 0 |
Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 45.8 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Certificates of deposit and time deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Derivative Instruments and Fa66
Derivative Instruments and Fair Value Measurement (Details 3) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, carrying amount | $ 1,410.9 | $ 1,526.4 | $ 1,427.3 | $ 1,191.3 |
Cash and cash equivalents, fair value | 1,410.9 | 1,526.4 | ||
Short-term debt | 350.4 | 448.6 | ||
Short-term debt, fair value | 350.4 | 448.6 | ||
Current portion of long-term debt | 250 | 0 | ||
Current portion of long-term debt, fair value | 251.6 | 0 | ||
Long-term debt, carrying amount | 1,243.4 | 1,516.3 | ||
Long-term debt, fair value | 1,452.6 | 1,780.5 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 1,299.4 | 1,480.6 | ||
Short-term debt, fair value | 0 | 0 | ||
Current portion of long-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 | 111.5 | 45.8 | ||
Short-term debt, fair value | 350.4 | 448.6 | ||
Current portion of long-term debt, fair value | 251.6 | 0 | ||
Long-term debt, fair value | 1,452.6 | 1,780.5 | ||
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 debt, fair value | 0 | 0 | ||
Current portion of long-term debt, fair value | 0 | 0 | ||
Long-term debt, fair value | $ 0 | $ 0 |
Shareowners' Equity (Details)
Shareowners' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Shareowners' Equity (Textuals) [Abstract] | |||
Common stock, authorized | 1,000 | ||
Common stock, par value | $ 1 | $ 1 | |
Preferred stock, authorized | 25 | ||
Preferred stock, par value | $ 0 | ||
Common stock reserved for various incentive plans | 10.8 | ||
Outstanding purchase of common stock recorded in accounts payable | $ 0 | $ 5.3 | |
Changes in outstanding common shares | |||
Beginning balance | 128.5 | 132.4 | 136.7 |
Treasury stock purchases | (2.3) | (4.6) | (5.4) |
Shares delivered under incentive plans | 2.2 | 0.7 | 1.1 |
Ending balance | 128.4 | 128.5 | 132.4 |
Shareowners' Equity (Details 1)
Shareowners' Equity (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ (1,538.8) | $ (1,334.6) | $ (948) |
Other comprehensive (loss) income before reclassifications, net of tax | 260 | (262.6) | (420.5) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 99.6 | 58.4 | 33.9 |
Other comprehensive income (loss) | 359.6 | (204.2) | (386.6) |
Balance at end of period | (1,179.2) | (1,538.8) | (1,334.6) |
Pension and other postretirement benefit plan adjustments [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (1,239.8) | (1,097.1) | (909.4) |
Other comprehensive (loss) income before reclassifications, net of tax | 215.2 | (216.5) | (257.3) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 97.6 | 73.8 | 69.6 |
Other comprehensive income (loss) | 312.8 | (142.7) | (187.7) |
Balance at end of period | (927) | (1,239.8) | (1,097.1) |
Accumulated currency translation adjustments, net of tax [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (294.9) | (252.4) | (52.5) |
Other comprehensive (loss) income before reclassifications, net of tax | 57.2 | (42.5) | (199.9) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 |
Other comprehensive income (loss) | 57.2 | (42.5) | (199.9) |
Balance at end of period | (237.7) | (294.9) | (252.4) |
Net unrealized gains (losses) on cash flow hedges, net of tax [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (4.1) | 14.9 | 13.9 |
Other comprehensive (loss) income before reclassifications, net of tax | (12.3) | (3.6) | 36.7 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 2 | (15.4) | (35.7) |
Other comprehensive income (loss) | (10.3) | (19) | 1 |
Balance at end of period | (14.4) | (4.1) | 14.9 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | 0 | 0 | 0 |
Other comprehensive (loss) income before reclassifications, net of tax | (0.1) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 |
Other comprehensive income (loss) | (0.1) | 0 | 0 |
Balance at end of period | $ (0.1) | $ 0 | $ 0 |
Shareowners' Equity (Details 2)
Shareowners' Equity (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | $ 1,037.4 | $ 943.1 | $ 1,127.5 | ||||||||
Income tax provision | (211.7) | (213.4) | (299.9) | ||||||||
Net income | $ 204.6 | $ 216.9 | $ 189.5 | $ 214.7 | $ 185.2 | $ 191 | $ 168 | $ 185.5 | 825.7 | 729.7 | 827.6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | 99.6 | 58.4 | 33.9 | ||||||||
Pension and other postretirement benefit plan adjustments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of prior service credit | (9.8) | (14) | (17.2) | ||||||||
Amortization of net actuarial loss | 155.2 | 126.8 | 123.2 | ||||||||
Settlements | 2.8 | 0 | 0 | ||||||||
Pension and other postretirement benefit plan adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | 148.2 | 112.8 | 106 | ||||||||
Income tax provision | (50.6) | (39) | (36.4) | ||||||||
Net income | 97.6 | 73.8 | 69.6 | ||||||||
Net unrealized gains (losses) on cash flow hedges, net of tax [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | 3 | (19.1) | (36.2) | ||||||||
Income tax provision | (1) | 3.7 | 0.5 | ||||||||
Net income | 2 | (15.4) | (35.7) | ||||||||
Foreign Exchange Forward [Member] | Sales [Member] | Net unrealized gains (losses) on cash flow hedges, net of tax [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | (0.3) | 5.5 | 8.4 | ||||||||
Foreign Exchange Forward [Member] | Cost of Sales [Member] | Net unrealized gains (losses) on cash flow hedges, net of tax [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 2.8 | (25.5) | (44.6) | ||||||||
Foreign Exchange Forward [Member] | Selling, General and Administrative Expenses [Member] | Net unrealized gains (losses) on cash flow hedges, net of tax [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | $ 0.5 | $ 0.9 | $ 0 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock options [Member] | |||
Fair value assumptions for share-based compensation awards | |||
Average risk-free interest rate | 1.85% | 1.76% | 1.61% |
Expected dividend yield | 2.21% | 2.78% | 2.25% |
Expected volatility | 24.00% | 29.00% | 31.00% |
Expected term (years) | 5 years 1 month | 5 years 1 month | 5 years 1 month |
Performance shares [Member] | |||
Fair value assumptions for share-based compensation awards | |||
Average risk-free interest rate | 1.35% | 1.21% | 0.96% |
Expected dividend yield | 2.20% | 2.75% | 2.22% |
Expected volatility | 23.00% | 22.00% | 24.00% |
Share-Based Compensation (Det71
Share-Based Compensation (Details 1) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding shares, beginning balance | shares | 5,098 |
Granted | shares | 1,024 |
Exercised | shares | (2,168) |
Forfeited | shares | (59) |
Cancelled | shares | (6) |
Outstanding shares, ending balance | shares | 3,889 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Vested or expected to vest, shares | shares | 2,642 |
Exercisable, shares | shares | 1,847 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, beginning balance | $ / shares | $ 90.96 |
Granted | $ / shares | 138.09 |
Exercised | $ / shares | 81.70 |
Forfeited | $ / shares | 122.45 |
Cancelled | $ / shares | 65.54 |
Outstanding, ending balance | $ / shares | 108.10 |
Vested or expected to vest | $ / shares | 92.07 |
Exercisable | $ / shares | $ 92.14 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding, wtd. avg. remaining contractual term | 7 years 2 months |
Vested or expected to vest, wtd. avg. remaining contractual term | 5 years 8 months |
Exercisable, wtd. avg. remaining contractual term | 5 years 7 months |
Outstanding, Aggregate intrinsic value of in-the-money options | $ | $ 272.6 |
Vested or expected, Aggregate intrinsic value of in-the-money options | $ | 227.6 |
Exercisable, Aggregate intrinsic value of in-the-money options | $ | $ 158.9 |
Share-Based Compensation (Det72
Share-Based Compensation (Details 2) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Performance shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding shares, beginning balance | 240 | ||
Granted | 42 | ||
Adjustment for performance results achieved | (58) | ||
Vested and issued | (6) | (67) | (154) |
Forfeited | (28) | ||
Outstanding shares, ending balance | 190 | 240 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning balance | $ 98.73 | ||
Granted | 174.37 | $ 87.64 | $ 103.70 |
Adjustment for performance results achieved | 108.48 | ||
Vested and issued | 108.48 | ||
Forfeited | 94.41 | ||
Outstanding, ending balance | $ 112.64 | $ 98.73 | |
Restricted stock and restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding shares, beginning balance | 156 | ||
Granted | 52 | ||
Vested and issued | (54) | ||
Forfeited | (13) | ||
Outstanding shares, ending balance | 141 | 156 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning balance | $ 108.63 | ||
Granted | 138.32 | $ 105.38 | $ 115.02 |
Vested and issued | 109.82 | ||
Forfeited | 110.51 | ||
Outstanding, ending balance | $ 118.87 | $ 108.63 |
Share-Based Compensation (Det73
Share-Based Compensation (Details Textuals) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Pre-tax share-based compensation expense | $ 38.5 | $ 40.5 | $ 41.5 |
Income tax benefit related to share-based compensation expense, Total | 12.3 | $ 12.9 | $ 13.2 |
Unrecognized compensation cost related to share-based compensation awards, net of estimated forfeitures, Total | $ 34.6 | ||
Weighted average period for recognition of total unrecognized compensation cost | 1 year 8 months | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Expiration period | 10 years | ||
Vesting period | 3 years | ||
Per share weighted average fair value of stock options granted | $ 25.70 | $ 21.28 | $ 26.70 |
Total intrinsic value of stock options exercised | $ 141.1 | $ 21.9 | $ 46.1 |
Performance shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Vesting period | 3 years | ||
Payout percentage | 10.00% | 93.00% | 187.00% |
Payout percentage in December 2016 for performance period ending September 30, 2016 | 187.00% | ||
Maximum potential shares to be delivered in payment under performance share awards | 139 | ||
Granted, shares | 42 | ||
Vested shares, Total Fair Value | $ 0.9 | $ 7.1 | $ 17.2 |
Weighted average grant date fair value of awards granted | $ 174.37 | $ 87.64 | $ 103.70 |
Performance shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Payout percentage | 0.00% | ||
Performance shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Payout percentage | 200.00% | ||
Restricted stock and restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Granted, shares | 52 | ||
Vested shares, Total Fair Value | $ 7.6 | $ 7 | $ 8 |
Weighted average grant date fair value of awards granted | $ 138.32 | $ 105.38 | $ 115.02 |
Restricted stock and restricted stock units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Vesting period | 1 year | ||
Restricted stock and restricted stock units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Vesting period | 5 years | ||
Unrestricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Granted, shares | 8 | ||
Weighted average grant date fair value of awards granted | $ 129.68 | $ 98.79 | $ 111.43 |
2012 Long Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Shares authorized | 11,800 | ||
Shares available for grant | 5,600 | ||
2003 Directors Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Shares authorized | 500 | ||
Shares available for grant | 200 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Amortization: | |||
Prior service credit | $ (9.8) | ||
Net actuarial loss | 155.2 | ||
Pension Benefits [Member] | |||
Components of net periodic benefit cost | |||
Service cost | 97 | $ 88 | $ 85.7 |
Interest cost | 151.6 | 169.5 | 167.2 |
Expected return on plan assets | (225.2) | (218.3) | (223.2) |
Amortization: | |||
Prior service credit | (3.7) | (2.9) | (2.7) |
Net actuarial loss | 152.9 | 124.5 | 118.7 |
Special termination benefit | 0.5 | 0.5 | 0 |
Settlements | 2.8 | 0 | 0 |
Net periodic benefit cost (income) | 175.9 | 161.3 | 145.7 |
Other Postretirement Benefits [Member] | |||
Components of net periodic benefit cost | |||
Service cost | 1.4 | 1.3 | 1.5 |
Interest cost | 2.5 | 3.3 | 4.1 |
Amortization: | |||
Prior service credit | (6.1) | (11.1) | (14.5) |
Net actuarial loss | 2.3 | 2.3 | 4.5 |
Special termination benefit | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net periodic benefit cost (income) | $ 0.1 | $ (4.2) | $ (4.4) |
Retirement Benefits (Details 1)
Retirement Benefits (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of year | $ 3,447.9 | ||
Company contributions | 200 | ||
Plan assets at end of year | 3,788.3 | $ 3,447.9 | |
Net amount on balance sheet consists of: | |||
Retirement benefits | (892.5) | (1,430.2) | |
Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 4,785.9 | 4,282.2 | |
Service cost | 97 | 88 | $ 85.7 |
Interest cost | 151.6 | 169.5 | 167.2 |
Actuarial losses (gains) | (221.9) | 515.4 | |
Plan amendments | (6.9) | (10) | |
Plan participant contributions | 3.9 | 4.3 | |
Benefits paid | (251.9) | (232) | |
Special termination benefit | 0.5 | 0.5 | 0 |
Settlements | (13.8) | 0 | |
Curtailments | (1) | 0 | |
Currency translation and other | 41.6 | (32) | |
Benefit obligation at end of year | 4,585 | 4,785.9 | 4,282.2 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of year | 3,447.9 | 3,262.5 | |
Actual return on plan assets | 315.5 | 394.3 | |
Company contributions | 254.9 | 44.3 | |
Plan participant contributions | 3.9 | 4.3 | |
Benefits paid | (251.9) | (232) | |
Settlements | (2.8) | 0 | 0 |
Currency translation and other | 31.8 | (25.5) | |
Plan assets at end of year | 3,788.3 | 3,447.9 | 3,262.5 |
Funded status of plans | (796.7) | (1,338) | |
Net amount on balance sheet consists of: | |||
Other assets | 10.6 | 0.1 | |
Compensation and benefits | (11.7) | (11.6) | |
Retirement benefits | (795.6) | (1,326.5) | |
Net amount on balance sheet | (796.7) | (1,338) | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 86.9 | 93.3 | |
Service cost | 1.4 | 1.3 | 1.5 |
Interest cost | 2.5 | 3.3 | 4.1 |
Actuarial losses (gains) | (3.8) | (0.2) | |
Plan participant contributions | 3.4 | 4 | |
Benefits paid | (13.4) | (14.9) | |
Special termination benefit | 0 | 0 | 0 |
Settlements | 0 | 0 | |
Curtailments | 0 | 0 | |
Currency translation and other | 0.8 | 0.1 | |
Benefit obligation at end of year | 77.8 | 86.9 | 93.3 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 10 | 10.9 | |
Plan participant contributions | 3.4 | 4 | |
Benefits paid | (13.4) | (14.9) | |
Settlements | 0 | 0 | 0 |
Currency translation and other | 0 | 0 | |
Plan assets at end of year | 0 | 0 | $ 0 |
Funded status of plans | (77.8) | (86.9) | |
Net amount on balance sheet consists of: | |||
Other assets | 0 | 0 | |
Compensation and benefits | (9.5) | (10.5) | |
Retirement benefits | (68.3) | (76.4) | |
Net amount on balance sheet | $ (77.8) | $ (86.9) |
Retirement Benefits (Details 2)
Retirement Benefits (Details 2) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | $ 5.3 | $ 4.9 |
Net actuarial loss | 921.9 | 1,235.1 |
Total | 927.2 | 1,240 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | (12.2) | (15.9) |
Net actuarial loss | 12 | 15.7 |
Total | $ (0.2) | $ (0.2) |
Retirement Benefits (Details 3)
Retirement Benefits (Details 3) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. Pension Benefit Plans [Member] | |||
Net periodic benefit cost assumptions | |||
Discount rate | 3.75% | 4.55% | 4.50% |
Expected return on plan assets | 7.50% | 7.50% | 7.50% |
Compensation increase rate | 3.50% | 3.75% | 3.75% |
Net benefit obligation assumptions | |||
Discount rate | 3.90% | 3.75% | |
Compensation increase rate | 3.50% | 3.50% | |
Non-U.S. Pension Benefit Plans [Member] | |||
Net periodic benefit cost assumptions | |||
Discount rate | 1.77% | 2.67% | 3.01% |
Expected return on plan assets | 5.12% | 5.21% | 5.31% |
Compensation increase rate | 2.86% | 3.11% | 3.16% |
Net benefit obligation assumptions | |||
Discount rate | 2.30% | 1.77% | |
Compensation increase rate | 2.99% | 2.86% | |
U.S. Other Postretirement Benefit Plans [Member] | |||
Net periodic benefit cost assumptions | |||
Discount rate | 3.10% | 3.85% | 3.65% |
Net benefit obligation assumptions | |||
Discount rate | 3.40% | 3.10% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.50% | ||
Health care cost trend rate | 6.50% | 6.50% | |
Non-U.S. Other Postretirement Benefit Plans [Member] | |||
Net periodic benefit cost assumptions | |||
Discount rate | 2.80% | 3.60% | 3.50% |
Net benefit obligation assumptions | |||
Discount rate | 3.20% | 2.80% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | ||
Health care cost trend rate | 4.95% |
Retirement Benefits (Details 4)
Retirement Benefits (Details 4) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Equity Securities [Member] | ||
Asset Allocation | ||
Minimum | 40.00% | |
Maximum | 65.00% | |
Target Allocation | 52.00% | |
As of the balance sheet date | 50.00% | 50.00% |
Debt Securities [Member] | ||
Asset Allocation | ||
Minimum | 30.00% | |
Maximum | 50.00% | |
Target Allocation | 40.00% | |
As of the balance sheet date | 42.00% | 41.00% |
Other Security [Member] | ||
Asset Allocation | ||
Minimum | 0.00% | |
Maximum | 15.00% | |
Target Allocation | 8.00% | |
As of the balance sheet date | 8.00% | 9.00% |
Retirement Benefits (Details 5)
Retirement Benefits (Details 5) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | $ 3,788.3 | $ 3,447.9 | |
U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 2,890.1 | 2,616.2 | |
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 2,779.2 | 2,502.2 | |
Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 898.2 | 831.7 | |
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 888.7 | 822.5 | |
Fair Value, Inputs, Level 1 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 1,389.9 | 1,165 | |
Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 61.8 | 60.5 | |
Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 1,388.4 | 1,336.3 | |
Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 750.6 | 677.5 | |
Fair Value, Inputs, Level 3 [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 77.2 | 85.4 | $ 69.1 |
Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0.9 | 0.9 | |
Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 76.3 | 84.5 | |
Cash and Cash Equivalents [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 1.1 | 2.9 | |
Cash and Cash Equivalents [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 3.3 | 1.9 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 1.1 | 2.9 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 3.3 | 1.9 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Mutual funds [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 230.1 | 203.6 | |
Mutual funds [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 230.1 | 203.6 | |
Mutual funds [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Mutual funds [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Common stock [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 911.7 | 705.9 | |
Common stock [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 57.3 | 48.6 | |
Common stock [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 911.7 | 705.9 | |
Common stock [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 57.3 | 48.6 | |
Common stock [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Common stock [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Common stock [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Common stock [Member] | Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Equity Common collective trusts [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 411.2 | 483.6 | |
Equity Common collective trusts [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 311.1 | 279.3 | |
Equity Common collective trusts [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Equity Common collective trusts [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 411.2 | 483.6 | |
Equity Common collective trusts [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 311.1 | 279.3 | |
Equity Common collective trusts [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Equity Common collective trusts [Member] | Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Corporate debt [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 663.7 | 591.8 | |
Corporate debt [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 37 | 34.1 | |
Corporate debt [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Corporate debt [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Corporate debt [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 663.7 | 591.8 | |
Corporate debt [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 37 | 34.1 | |
Corporate debt [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Corporate debt [Member] | Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
U.S. Government Securities [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 356.4 | 352.1 | |
U.S. Government Securities [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 247 | 252.6 | |
U.S. Government Securities [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 109.4 | 99.5 | |
U.S. Government Securities [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Non-U.S. Government securities [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 16 | 17.6 | |
Non-U.S. Government securities [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 1.2 | 10 | |
Non-U.S. Government securities [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 14.8 | 7.6 | |
Non-U.S. Government securities [Member] | Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Fixed income securities Common collective trusts [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 204.1 | 161.4 | |
Fixed income securities Common collective trusts [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 301.1 | 271.1 | |
Fixed income securities Common collective trusts [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Fixed income securities Common collective trusts [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Fixed income securities Common collective trusts [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 204.1 | 161.4 | |
Fixed income securities Common collective trusts [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 301.1 | 271.1 | |
Fixed income securities Common collective trusts [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Fixed income securities Common collective trusts [Member] | Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Private equity [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 49.9 | 57.1 | |
Alternative equity [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 61 | 56.9 | |
Insurance contracts [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0.9 | 0.9 | |
Insurance contracts [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 71.5 | 79.7 | |
Insurance contracts [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Insurance contracts [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Insurance contracts [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Insurance contracts [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Insurance contracts [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 0.9 | 0.9 | 0.9 |
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0.9 | 0.9 | |
Insurance contracts [Member] | Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 71.5 | 79.7 | 63.8 |
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 71.5 | 79.7 | |
Other [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 4.8 | 4.8 | |
Other [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Other [Member] | Fair Value, Inputs, Level 3 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 4.8 | 4.8 | $ 4.4 |
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 4.8 | 4.8 | |
Real Estate Funds [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan fair value of plan assets | 9.5 | 9.2 | |
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 86.6 | 85.4 | |
Real Estate Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 0 | 0 | |
Real Estate Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Pension Benefit Plans [Member] | |||
Investments measured at fair value | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | $ 86.6 | $ 85.4 |
Retirement Benefits (Details 6)
Retirement Benefits (Details 6) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | $ 3,447.9 | |
Plan assets at end of year | 3,788.3 | $ 3,447.9 |
U.S. Pension Benefit Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 2,616.2 | |
Plan assets at end of year | 2,890.1 | 2,616.2 |
Non-U.S. Pension Benefit Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 831.7 | |
Plan assets at end of year | 898.2 | 831.7 |
Alternative equity [Member] | U.S. Pension Benefit Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 56.9 | |
Plan assets at end of year | 61 | 56.9 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 85.4 | 69.1 |
Realized Gains (Losses) | 0 | 0 |
Unrealized Gains (Losses) | (13.4) | 14.5 |
Purchases, Sales, Issuances, and Settlements, Net | 5.2 | 1.8 |
Plan assets at end of year | 77.2 | 85.4 |
Fair Value, Inputs, Level 3 [Member] | Insurance contracts [Member] | U.S. Pension Benefit Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 0.9 | 0.9 |
Realized Gains (Losses) | 0 | 0 |
Unrealized Gains (Losses) | 0 | 0 |
Purchases, Sales, Issuances, and Settlements, Net | 0 | 0 |
Plan assets at end of year | 0.9 | 0.9 |
Fair Value, Inputs, Level 3 [Member] | Insurance contracts [Member] | Non-U.S. Pension Benefit Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 79.7 | 63.8 |
Realized Gains (Losses) | 0 | 0 |
Unrealized Gains (Losses) | (13.4) | 14.5 |
Purchases, Sales, Issuances, and Settlements, Net | 5.2 | 1.4 |
Plan assets at end of year | 71.5 | 79.7 |
Fair Value, Inputs, Level 3 [Member] | Other [Member] | Non-U.S. Pension Benefit Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 4.8 | 4.4 |
Realized Gains (Losses) | 0 | 0 |
Unrealized Gains (Losses) | 0 | 0 |
Purchases, Sales, Issuances, and Settlements, Net | 0 | 0.4 |
Plan assets at end of year | $ 4.8 | $ 4.8 |
Retirement Benefits (Details 7)
Retirement Benefits (Details 7) $ in Millions | Sep. 30, 2017USD ($) |
Pension Benefits [Member] | |
Estimated future benefit payments | |
2,018 | $ 267.1 |
2,019 | 258.3 |
2,020 | 272.7 |
2,021 | 289 |
2,022 | 305.8 |
2023 – 2027 | 1,451.6 |
Other Postretirement Benefits [Member] | |
Estimated future benefit payments | |
2,018 | 9.7 |
2,019 | 9.3 |
2,020 | 6 |
2,021 | 4.9 |
2,022 | 4.7 |
2023 – 2027 | $ 20.2 |
Retirement Benefits (Details 8)
Retirement Benefits (Details 8) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | $ 4,280.9 | $ 4,784.5 |
Accumulated benefit obligation | 3,956.8 | 4,428 |
Fair value of plan assets | $ 3,473.6 | $ 3,446.5 |
Retirement Benefit (Details Tex
Retirement Benefit (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company contribution range | 3% to 7% | ||
Voluntary contribution to U.S. qualified pension plan | $ 200 | ||
Recognized prior service credits | 9.8 | ||
Recognized prior service credits, net of tax | 6.4 | ||
Recognized net actuarial losses | 155.2 | ||
Recognized net actuarial losses, net of tax | 101.8 | ||
Accumulated benefit obligation for pension plans | 4,252.2 | $ 4,429.1 | |
Expense related to defined contribution savings plans | 41.5 | 38.6 | $ 46.3 |
Defined Benefit Plan, Amounts that will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | |||
Prior service credits | 4.9 | ||
Prior service credits, net of tax | 3.5 | ||
Net actuarial losses | 115.4 | ||
Net actuarial losses, net of tax | $ 75.2 | ||
United States Postretirement Benefit Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Ultimate gross health care cost trend rate | 5.50% | ||
Year that gross health care cost trend rate will be reached | 2,019 | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Voluntary contribution to U.S. qualified pension plan | $ 254.9 | 44.3 | |
Recognized prior service credits | 3.7 | 2.9 | 2.7 |
Recognized net actuarial losses | 152.9 | 124.5 | 118.7 |
Estimated future payments, during next fiscal year | 53.8 | ||
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Voluntary contribution to U.S. qualified pension plan | 10 | 10.9 | |
Recognized prior service credits | 6.1 | 11.1 | 14.5 |
Recognized net actuarial losses | 2.3 | $ 2.3 | $ 4.5 |
Estimated future payments, during next fiscal year | $ 9.7 | ||
Non-U.S. Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Ultimate gross health care cost trend rate | 4.50% | ||
Year that gross health care cost trend rate will be reached | 2,018 |
Other Income (Expense) (Details
Other Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Components of other income (expense) | |||
Gain on sale of business | $ 60.8 | $ 0 | $ 0 |
Interest income | 19.6 | 12.7 | 10.7 |
Royalty income | 8.9 | 2.9 | 2.9 |
Legacy product liability and environmental charges | (8.3) | (12.7) | (19.8) |
Other | (0.1) | 3.4 | 0.7 |
Other income (expense) | 80.9 | 6.3 | (5.5) |
Proceeds from sale of business | $ 94 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Components of income before income taxes | |||||||||||
United States | $ 547.2 | $ 512.1 | $ 660.5 | ||||||||
Non-United States | 490.2 | 431 | 467 | ||||||||
Total | $ 273.5 | $ 276 | $ 230.3 | $ 257.6 | $ 236.9 | $ 252.3 | $ 217 | $ 236.9 | 1,037.4 | 943.1 | 1,127.5 |
Current income tax provision: | |||||||||||
United States | 67.3 | 175.9 | 238.6 | ||||||||
Non-United States | 109.9 | 91.7 | 73.6 | ||||||||
State and local | 0.7 | 16.3 | 17 | ||||||||
Total current | 177.9 | 283.9 | 329.2 | ||||||||
Deferred income tax provision: | |||||||||||
United States | 44.6 | (53.7) | (30.3) | ||||||||
Non-United States | (14.1) | (8.8) | 2.6 | ||||||||
State and local | 3.3 | (8) | (1.6) | ||||||||
Total deferred | 33.8 | (70.5) | (29.3) | ||||||||
Income tax provision | 211.7 | 213.4 | 299.9 | ||||||||
Total income taxes paid | $ 211.9 | $ 299.8 | $ 313.1 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Effective Tax Rate Reconciliation | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes | 0.70% | 0.60% | 0.90% |
Non-United States taxes | (9.30%) | (8.60%) | (7.90%) |
Tax effect of foreign dividends | 0.50% | 0.10% | (0.20%) |
Foreign currency transaction loss | (1.90%) | (0.80%) | 0.00% |
Share-based compensation | (2.80%) | 0.00% | 0.00% |
Research and development tax credit | (0.60%) | (2.00%) | (0.60%) |
Change in valuation allowances | 0.10% | (0.60%) | (0.50%) |
Domestic manufacturing deduction | (0.90%) | (1.20%) | (1.20%) |
Adjustments for prior period tax matters | (0.40%) | 0.40% | 0.50% |
Other | 0.00% | (0.30%) | 0.60% |
Effective income tax rate | 20.40% | 22.60% | 26.60% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred income tax assets: | ||
Compensation and benefits | $ 18.8 | $ 16.2 |
Inventory | 20.2 | 18 |
Returns, rebates and incentives | 45.9 | 55.1 |
Retirement benefits | 305.5 | 493.6 |
Environmental remediation and other site-related costs | 33.4 | 34.8 |
Share-based compensation | 32.4 | 40.6 |
Other accruals and reserves | 71.3 | 60.5 |
Net operating loss carryforwards | 20.4 | 24.4 |
Tax credit carryforwards | 15.3 | 13.7 |
Capital loss carryforwards | 10.3 | 9.9 |
Other | 11.1 | 11.4 |
Subtotal | 584.6 | 778.2 |
Valuation allowance | (18.6) | (17.3) |
Net deferred income tax assets | 566 | 760.9 |
Deferred income tax liabilities: | ||
Property | (74) | (63.5) |
Intangible assets | (45.9) | (54.9) |
Other | (2.5) | (8.6) |
Deferred income tax liabilities | (122.4) | (127) |
Total net deferred income tax assets | $ 443.6 | $ 633.9 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Capital loss carryforward | $ 10.3 | $ 9.9 |
Net operating loss carryforwards | 20.4 | 24.4 |
Tax credit carryforward | 15.3 | $ 13.7 |
Subtotal - tax carryforwards | 46 | |
Tax Attributes, Valuation Allowance [Abstract] | ||
Total | 18.6 | |
Non-United States [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforward, subject to expiration | 6.2 | |
Net operating loss carryforward, not subject to expiration | 4.7 | |
Capital loss carryforward | 10.3 | |
Tax Attributes, Valuation Allowance [Abstract] | ||
Net operating loss carryforward, subject to expiration | 5.8 | |
Net operating loss carryforward, not subject to expiration | 1.7 | |
Capital loss carryforward | $ 10.3 | |
Non-United States [Member] | Minimum [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforward, carryforward period ends | Sep. 30, 2018 | |
Non-United States [Member] | Maximum [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforward, carryforward period ends | Sep. 30, 2027 | |
United States [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforwards | $ 1.2 | |
Tax credit carryforward | 2.2 | |
Tax Attributes, Valuation Allowance [Abstract] | ||
Net operating loss carryforward, subject to expiration | 0 | |
Tax credit carryforward | $ 0 | |
United States [Member] | Minimum [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforward, carryforward period ends | Sep. 30, 2019 | |
Tax credit carryforward, carryforward period ends | Sep. 30, 2018 | |
United States [Member] | Maximum [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforward, carryforward period ends | Sep. 30, 2033 | |
Tax credit carryforward, carryforward period ends | Sep. 30, 2037 | |
State and Local [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforwards | $ 8.3 | |
Tax credit carryforward | 13.1 | |
Tax Attributes, Valuation Allowance [Abstract] | ||
Net operating loss carryforward, subject to expiration | 0.2 | |
Tax credit carryforward | $ 0.6 | |
State and Local [Member] | Minimum [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforward, carryforward period ends | Sep. 30, 2018 | |
Tax credit carryforward, carryforward period ends | Sep. 30, 2019 | |
State and Local [Member] | Maximum [Member] | ||
Tax Attributes, Tax Benefit Amount [Abstract] | ||
Net operating loss carryforward, carryforward period ends | Sep. 30, 2037 | |
Tax credit carryforward, carryforward period ends | Sep. 30, 2032 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Unrecognized tax benefits, excluding interest and penalties | |||
Gross unrecognized tax benefits balance at beginning of year | $ 32.4 | $ 43.9 | $ 38.9 |
Additions based on tax positions related to the current year | 1.9 | 2.3 | 2.1 |
Additions based on tax positions related to prior years | 10.8 | 14.9 | 11.6 |
Reductions based on tax positions related to prior years | (0.1) | 0 | (1) |
Reductions related to settlements with taxing authorities | (7.7) | (27.1) | (4.3) |
Reductions related to lapses of statute of limitations | (6.3) | (1.6) | (1.6) |
Effect of foreign currency translation | 0.1 | ||
Effect of foreign currency translation | 0 | (1.8) | |
Gross unrecognized tax benefits balance at end of year | $ 31.1 | $ 32.4 | $ 43.9 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Expiration date of primary benefit of non-U.S. government sponsored tax incentive programs | 2,022 | |||
Tax benefit attributable to non-U.S. government sponsored tax incentive programs | $ 43.4 | $ 33.9 | $ 36.5 | |
Tax benefit per diluted share attributable to non-U.S. government sponsored tax incentive programs | $ 0.33 | $ 0.26 | $ 0.27 | |
Cumulative undistributed earnings of foreign subsidiaries | $ 3,526 | |||
Gross unrecognized tax benefits | 31.1 | $ 32.4 | $ 43.9 | $ 38.9 |
Accrued interest and penalties for unrecognized tax benefits | 4 | 5.2 | ||
Benefits (expense) recognized for interest and penalties related to unrecognized tax benefits | 1.2 | $ (0.1) | $ 2.4 | |
Reasonably possible amount of reduction of gross unrecognized tax benefit in the next twelve months | 9.5 | |||
Reasonably possible amount of net reduction to income tax provision in the next twelve months if unrecognized tax benefits were recognized, including the recognition of interest and penalties and offsetting tax assets | $ 4.4 | |||
Earliest open year for income tax examinations, U.S. federal | 2,014 | |||
Earliest open year for income tax examinations, state, local and non-U.S. | 2,003 |
Commitments and Contingent Li91
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Loss Contingencies [Line Items] | ||
Environmental remediation costs | $ 67.6 | $ 73.9 |
Conditional asset retirement obligations | 21.2 | 20.6 |
Indemnification liabilities | 100.8 | 111.5 |
Recorded probable expected recoveries | (17.8) | (22.5) |
Net recorded liabilities | 83 | 89 |
Indemnification Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Other current liabilities | 2.5 | 4.9 |
Other liabilities | 9.5 | 12.1 |
Indemnification liabilities | 12 | 17 |
Receivables | (1.6) | (3.5) |
Other assets | (4.6) | (7.3) |
Recorded probable expected recoveries | (6.2) | (10.8) |
Net recorded liabilities | 5.8 | 6.2 |
Substantially Indemnified by ExxonMobil Corporation [Member] | Indemnification Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Indemnification liabilities | 6.6 | 11 |
Recorded probable expected recoveries | $ (6.2) | $ (10.8) |
Commitments and Contingent Li92
Commitments and Contingent Liabilities (Details 1) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Accrual for Environmental Loss Contingencies [Abstract] | ||
Other current liabilities | $ 10.7 | |
Other liabilities | 56.9 | |
Total recorded environmental remediation costs | 67.6 | $ 73.9 |
Receivables | (1.2) | |
Other assets | (10.1) | |
Total recorded probable expected recoveries | (11.3) | |
Net environmental remediation costs | 56.3 | |
Discounted ongoing operating maintenance expenditures | 47.5 | |
Asset Retirement Obligation [Abstract] | ||
Other current liabilities | 0.7 | 0.7 |
Other liabilities | 20.5 | 19.9 |
Total recorded conditional asset retirement obligations | 21.2 | 20.6 |
Receivables | (0.1) | (0.1) |
Other assets | (0.2) | (0.2) |
Total recorded probable expected recoveries | (0.3) | (0.3) |
Net conditional asset retirement obligations | $ 20.9 | $ 20.3 |
Commitments and Contingent Li93
Commitments and Contingent Liabilities (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | $ 73.3 | ||
2,019 | 62.4 | ||
2,020 | 52.1 | ||
2,021 | 36.6 | ||
2,022 | 25.8 | ||
Beyond 2,022 | 34.8 | ||
Total | 285 | ||
Leases, Operating [Abstract] | |||
Rental expense | $ 115.1 | $ 115.5 | $ 117 |
Commitments and Contingent Li94
Commitments and Contingent Liabilities (Details Textuals) $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Loss Contingency [Abstract] | |
Reasonably possible costs from environmental remediation costs and indemnification liabilities | $ 121.3 |
Reasonably possible costs from environmental remediation costs and indemnification liabilities, net of related receivables | $ 98.4 |
Number of Superfund sites designated potentially responsible party at | 13 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Sales and operating results of reportable segments | |||||||||||
Sales | $ 1,667.5 | $ 1,599.2 | $ 1,554.3 | $ 1,490.3 | $ 1,538.6 | $ 1,474 | $ 1,440.3 | $ 1,426.6 | $ 6,311.3 | $ 5,879.5 | $ 6,307.9 |
Income before income taxes | $ 273.5 | $ 276 | $ 230.3 | $ 257.6 | $ 236.9 | $ 252.3 | $ 217 | $ 236.9 | 1,037.4 | 943.1 | 1,127.5 |
Purchase accounting depreciation and amortization | (21.4) | (18.4) | (21) | ||||||||
Gain on sale of business | 60.8 | 0 | 0 | ||||||||
Interest expense | (76.2) | (71.3) | (63.7) | ||||||||
Operating Segments [Member] | |||||||||||
Sales and operating results of reportable segments | |||||||||||
Income before income taxes | 1,233.1 | 1,188.7 | 1,360.5 | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Sales and operating results of reportable segments | |||||||||||
Purchase accounting depreciation and amortization | (21.4) | (18.4) | (21) | ||||||||
Non-operating pension cost | (82.6) | (76.2) | (62.7) | ||||||||
Gain on sale of business | 60.8 | 0 | 0 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Sales and operating results of reportable segments | |||||||||||
General corporate-net | (76.3) | (79.7) | (85.6) | ||||||||
Architecture and Software [Member] | |||||||||||
Sales and operating results of reportable segments | |||||||||||
Sales | 2,899.3 | 2,635.2 | 2,749.5 | ||||||||
Income before income taxes | 781.5 | 695 | 808.6 | ||||||||
Control Products and Solutions [Member] | |||||||||||
Sales and operating results of reportable segments | |||||||||||
Sales | 3,412 | 3,244.3 | 3,558.4 | ||||||||
Income before income taxes | $ 451.6 | $ 493.7 | $ 551.9 |
Business Segment Information 96
Business Segment Information (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 7,161.7 | $ 7,101.2 | $ 6,404.7 |
Depreciation and amortization | 168.9 | 172.2 | 162.5 |
Purchase accounting depreciation and amortization | 21.4 | 18.4 | 21 |
Capital expenditures | 141.7 | 116.9 | 122.9 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 2,600.7 | 3,012.3 | 2,536.1 |
Depreciation and amortization | 3.2 | 1.5 | 1.5 |
Capital expenditures | 69.6 | 50.7 | 36.7 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 147.5 | 153.8 | 141.5 |
Architecture and Software [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 2,482.8 | 2,054.3 | 1,790.5 |
Depreciation and amortization | 69.3 | 75 | 69.7 |
Capital expenditures | 30 | 24.7 | 29.4 |
Control Products and Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 2,078.2 | 2,034.6 | 2,078.1 |
Depreciation and amortization | 75 | 77.3 | 70.3 |
Capital expenditures | $ 42.1 | $ 41.5 | $ 56.8 |
Business Segment Information 97
Business Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Sales and property by geographic region | |||||||||||
Sales | $ 1,667.5 | $ 1,599.2 | $ 1,554.3 | $ 1,490.3 | $ 1,538.6 | $ 1,474 | $ 1,440.3 | $ 1,426.6 | $ 6,311.3 | $ 5,879.5 | $ 6,307.9 |
Property | 583.9 | 578.3 | 583.9 | 578.3 | 605.6 | ||||||
United States [Member] | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 3,458.4 | 3,213.4 | 3,446.8 | ||||||||
Property | 443.4 | 445.4 | 443.4 | 445.4 | 472.1 | ||||||
Canada [Member] | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 343.4 | 316.4 | 366.6 | ||||||||
Property | 8.8 | 7.3 | 8.8 | 7.3 | 7.3 | ||||||
Europe, Middle East and Africa [Member] | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 1,193.7 | 1,147.2 | 1,174 | ||||||||
Property | 52.5 | 49.9 | 52.5 | 49.9 | 50.4 | ||||||
Asia Pacific [Member] | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 866.4 | 764.4 | 834.5 | ||||||||
Property | 40 | 37.4 | 40 | 37.4 | 41.9 | ||||||
Latin America [Member] | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 449.4 | 438.1 | 486 | ||||||||
Property | $ 39.2 | $ 38.3 | $ 39.2 | $ 38.3 | $ 33.9 |
Business Segment Information 98
Business Segment Information (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 7,161.7 | $ 7,101.2 | $ 6,404.7 |
Capital expenditures | 141.7 | 116.9 | 122.9 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 2,600.7 | 3,012.3 | 2,536.1 |
Capital expenditures | 69.6 | 50.7 | 36.7 |
Corporate, Non-Segment [Member] | Shared by segments and used in operating activities [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 259.3 | 264.8 | 266.8 |
Capital expenditures | $ 69.6 | $ 50.7 | $ 36.7 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Portion of total sales to largest distributor | 10.00% | 10.00% | 10.00% |
Quarterly Financial Informati99
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quarterly Financial Information (Unaudited) | |||||||||||
Sales | $ 1,667.5 | $ 1,599.2 | $ 1,554.3 | $ 1,490.3 | $ 1,538.6 | $ 1,474 | $ 1,440.3 | $ 1,426.6 | $ 6,311.3 | $ 5,879.5 | $ 6,307.9 |
Gross profit | 647.7 | 677.7 | 656.5 | 642.3 | 651.9 | 616.8 | 594.1 | 612.7 | 2,624.2 | 2,475.5 | 2,703.1 |
Income before income taxes | 273.5 | 276 | 230.3 | 257.6 | 236.9 | 252.3 | 217 | 236.9 | 1,037.4 | 943.1 | 1,127.5 |
Net income | $ 204.6 | $ 216.9 | $ 189.5 | $ 214.7 | $ 185.2 | $ 191 | $ 168 | $ 185.5 | $ 825.7 | $ 729.7 | $ 827.6 |
Basic earnings per share: | |||||||||||
Basic | $ 1.59 | $ 1.69 | $ 1.47 | $ 1.67 | $ 1.44 | $ 1.47 | $ 1.29 | $ 1.41 | $ 6.42 | $ 5.60 | $ 6.15 |
Diluted earnings per share: | |||||||||||
Diluted | $ 1.57 | $ 1.67 | $ 1.45 | $ 1.65 | $ 1.43 | $ 1.46 | $ 1.28 | $ 1.40 | $ 6.35 | $ 5.56 | $ 6.09 |
Rocky Flats Settlement (Details
Rocky Flats Settlement (Details) - Rocky Flats [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Loss Contingencies [Line Items] | ||
Settlement amount, in aggregate | $ 375,000 | |
Settlement amount, total Rockwell obligation | 243,750 | |
Settlement amount, payments made to plaintiff class escrow fund | $ 243,750 | $ 1,250 |
Valuation and Qualifying Acc101
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Year | $ 24.5 | $ 24.8 | $ 22.2 |
Additions Charged to Costs and Expenses | 5 | 10.9 | 8.1 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 4.6 | 11.2 | 5.5 |
Balance at End of Year | 24.9 | 24.5 | 24.8 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Year | 17.3 | 22.2 | 27.8 |
Additions Charged to Costs and Expenses | 1.5 | 1 | 2.5 |
Additions Charged to Other Accounts | 0.4 | 0.6 | 0 |
Deductions | 0.6 | 6.5 | 8.1 |
Balance at End of Year | $ 18.6 | $ 17.3 | $ 22.2 |