Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2018 | Oct. 31, 2018 | Mar. 29, 2018 | |
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, 2018 | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Document Fiscal Year Focus | 2,018 | ||
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 | $ 21.7 | ||
Entity Common Stock, Shares Outstanding | 120,684,079 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 618.8 | $ 1,410.9 |
Short-term investments | 290.9 | 1,124.6 |
Receivables | 1,190.1 | 1,135.5 |
Inventories | 581.6 | 558.7 |
Other current assets | 149.3 | 191 |
Total current assets | 2,830.7 | 4,420.7 |
Property, net | 576.8 | 583.9 |
Goodwill | 1,075.5 | 1,077.7 |
Other intangible assets, net | 215.2 | 238 |
Deferred income taxes | 179.6 | 443.6 |
Long-term investments | 1,288 | 325.7 |
Other assets | 96.2 | 72.1 |
Total | 6,262 | 7,161.7 |
Current liabilities: | ||
Short-term debt | 551 | 350.4 |
Current portion of long-term debt | 0 | 250 |
Accounts payable | 713.4 | 623.2 |
Compensation and benefits | 289.4 | 272.6 |
Advance payments from customers and deferred revenue | 249.9 | 240.6 |
Customer returns, rebates and incentives | 206.6 | 188.8 |
Other current liabilities | 226.6 | 220.2 |
Total current liabilities | 2,236.9 | 2,145.8 |
Long-term debt | 1,225.2 | 1,243.4 |
Retirement benefits | 605.1 | 892.5 |
Other liabilities | 577.3 | 216.4 |
Shareowners’ equity: | ||
Common stock ($1.00 par value, shares issued: 181.4) | 181.4 | 181.4 |
Additional paid-in capital | 1,681.4 | 1,638 |
Retained earnings | 6,198.1 | 6,103.4 |
Accumulated other comprehensive loss | (941.9) | (1,179.2) |
Common stock in treasury, at cost (shares held: 2018, 60.3; 2017, 53.0) | (5,501.5) | (4,080) |
Total shareowners’ equity | 1,617.5 | 2,663.6 |
Total | $ 6,262 | $ 7,161.7 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Shareowners' equity: | ||
Common stock, par value per share (in dollars per share) | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 181.4 | 181.4 |
Treasury stock, shares held (in shares) | 60.3 | 53 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales | |||
Total sales | $ 6,666 | $ 6,311.3 | $ 5,879.5 |
Cost of sales | |||
Cost of sales | (3,793.8) | (3,687.1) | (3,404) |
Gross profit | 2,872.2 | 2,624.2 | 2,475.5 |
Selling, general and administrative expenses | (1,599) | (1,591.5) | (1,467.4) |
Other income (expense) (Note 13) | 130.6 | 80.9 | 6.3 |
Interest expense | (73) | (76.2) | (71.3) |
Income before income taxes | 1,330.8 | 1,037.4 | 943.1 |
Income tax provision (Note 14) | (795.3) | (211.7) | (213.4) |
Net income | $ 535.5 | $ 825.7 | $ 729.7 |
Earnings per share: | |||
Basic (in dollars per share) | $ 4.27 | $ 6.42 | $ 5.60 |
Diluted (in dollars per share) | $ 4.21 | $ 6.35 | $ 5.56 |
Weighted average outstanding shares: | |||
Basic (in shares) | 125.4 | 128.4 | 130.2 |
Diluted (in shares) | 126.9 | 129.9 | 131.1 |
Products and solutions | |||
Sales | |||
Total sales | $ 5,930.5 | $ 5,628.9 | $ 5,239.3 |
Cost of sales | |||
Cost of sales | (3,338.6) | (3,254.3) | (2,982.1) |
Services | |||
Sales | |||
Total sales | 735.5 | 682.4 | 640.2 |
Cost of sales | |||
Cost of sales | $ (455.2) | $ (432.8) | $ (421.9) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 535.5 | $ 825.7 | $ 729.7 |
Other comprehensive income (loss): | |||
Pension and other postretirement benefit plan adjustments (net of tax expense (benefit) of $87.2, $159.3, and ($73.7)) | 268.9 | 312.8 | (142.7) |
Currency translation adjustments | (48.3) | 57.2 | (42.5) |
Net change in unrealized gains and losses on cash flow hedges (net of tax expense (benefit) of $6.6, ($2.8), and ($6.7)) | 18.8 | (10.3) | (19) |
Net change in unrealized gains and losses on available-for-sale investments | (2.1) | (0.1) | 0 |
Other comprehensive income (loss) | 237.3 | 359.6 | (204.2) |
Comprehensive income | $ 772.8 | $ 1,185.3 | $ 525.5 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other comprehensive income (loss): | |||
Tax expense (benefit) from pension and other postretirement benefit plan adjustments | $ 87.2 | $ 159.3 | $ (73.7) |
Tax expense (benefit) from net change in unrealized gains and losses on cash flow hedges | $ 6.6 | $ (2.8) | $ (6.7) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | |||
Net income | $ 535.5 | $ 825.7 | $ 729.7 |
Adjustments to arrive at cash provided by operating activities: | |||
Depreciation | 136.4 | 138.7 | 143.3 |
Amortization of intangible assets | 28.2 | 30.2 | 28.9 |
Change in fair value of investments | (90) | 0 | 0 |
Share-based compensation expense | 38.5 | 38.5 | 40.5 |
Retirement benefit expense | 114 | 176 | 157.1 |
Pension contributions | (50.3) | (254.9) | (44.3) |
Deferred income taxes | 170.5 | 33.8 | (70.5) |
Gain on sale of business | 0 | (60.8) | 0 |
Net loss on disposition of property | 2.5 | 0.1 | 1.7 |
Excess income tax benefit from share-based compensation | 0 | 0 | (3.3) |
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments: | |||
Receivables | (91.7) | (53) | (18.9) |
Inventories | (37.4) | (30.4) | 4.6 |
Accounts payable | 67.2 | 81.1 | 32.3 |
Advance payments from customers and deferred revenue | 12.9 | 21.3 | 11.7 |
Compensation and benefits | 22.4 | 124.7 | (81.1) |
Income taxes | 426.7 | (22.2) | (8.9) |
Other assets and liabilities | 14.6 | (14.8) | 24.5 |
Cash provided by operating activities | 1,300 | 1,034 | 947.3 |
Investing activities: | |||
Capital expenditures | (125.5) | (141.7) | (116.9) |
Acquisition of businesses, net of cash acquired | (9.9) | (1.1) | (139.1) |
Purchases of investments | (1,296.9) | (1,444.2) | (1,070.7) |
Proceeds from maturities of investments | 1,106.1 | 912.6 | 886.3 |
Proceeds from sale of investments | 155.3 | 62.6 | 0 |
Proceeds from sale of business | 0 | 94 | 0 |
Proceeds from sale of property | 0.5 | 1.1 | 0.4 |
Cash used for investing activities | (170.4) | (516.7) | (440) |
Financing activities: | |||
Net issuance (repayment) of short-term debt | 200.6 | (98.2) | 448.6 |
Repayment of long-term debt | (250) | 0 | 0 |
Cash dividends | (440.8) | (390.7) | (378.2) |
Purchases of treasury stock | (1,482.3) | (342.6) | (507.6) |
Proceeds from the exercise of stock options | 81.8 | 181.9 | 36.2 |
Excess income tax benefit from share-based compensation | 0 | 0 | 3.3 |
Other financing activities | 1.8 | 0 | 0 |
Cash used for financing activities | (1,888.9) | (649.6) | (397.7) |
Effect of exchange rate changes on cash | (32.8) | 16.8 | (10.5) |
(Decrease) increase in cash and cash equivalents | (792.1) | (115.5) | 99.1 |
Cash and cash equivalents at beginning of year | 1,410.9 | 1,526.4 | 1,427.3 |
Cash and cash equivalents at end of year | $ 618.8 | $ 1,410.9 | $ 1,526.4 |
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 | Common stock in treasury, at cost |
Beginning balance at Sep. 30, 2015 | $ 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 (2018, $3.51 per share; 2017, $3.04 per share; 2016, $2.90 per share) | (378.2) | |||||
Other comprehensive income (loss) | (204.2) | (204.2) | ||||
Purchases | (500.4) | |||||
Shares delivered under incentive plans | 50.3 | |||||
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 (2018, $3.51 per share; 2017, $3.04 per share; 2016, $2.90 per share) | (390.7) | |||||
Other comprehensive income (loss) | 359.6 | 359.6 | ||||
Purchases | (337.3) | |||||
Shares delivered under incentive plans | 166.4 | |||||
Ending balance at Sep. 30, 2017 | 2,663.6 | 181.4 | 1,638 | 6,103.4 | (1,179.2) | (4,080) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Income tax benefit from share-based compensation | 0 | |||||
Share-based compensation expense | 37.3 | |||||
Shares delivered under incentive plans | 6.1 | |||||
Net income | 535.5 | 535.5 | ||||
Cash dividends (2018, $3.51 per share; 2017, $3.04 per share; 2016, $2.90 per share) | (440.8) | |||||
Other comprehensive income (loss) | 237.3 | 237.3 | ||||
Purchases | (1,500.5) | |||||
Shares delivered under incentive plans | 79 | |||||
Ending balance at Sep. 30, 2018 | $ 1,617.5 | $ 181.4 | $ 1,681.4 | $ 6,198.1 | $ (941.9) | $ (5,501.5) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareowners' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Retained Earnings | |||
Cash dividends per share (in dollars per share) | $ 3.51 | $ 3.04 | $ 2.90 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
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; discount valuation of PTC Inc. ("PTC") common stock; 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 hardware and software 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 hardware and software 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 hardware and software 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 hardware and software products, solutions and services to be provided. Accruals are reported as a current liability in our Consolidated 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. 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 recorded net of an allowance for doubtful accounts of $17.1 million at September 30, 2018 and $24.9 million at September 30, 2017 . In addition, receivables are recorded net of an allowance for certain customer returns, rebates and incentives of $8.7 million at September 30, 2018 and $11.9 million at September 30, 2017 . Inventories Inventories are recorded 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. Investments Investments include time deposits, certificates of deposit, other fixed income securities and equity securities. Investments with original maturities longer than three months at the time of purchase and less than one year from period end are classified as short-term. All other investments are classified as long-term. Fixed income securities meeting the definition of a security are accounted for as available-for-sale and recorded at fair value. Equity securities are recorded at fair value. All other investments are recorded at cost, which approximates fair value. Property Property, including internal-use software, is recorded 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 10 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 $43.2 million , $29.6 million and $29.9 million were accrued within accounts payable and other current liabilities at September 30, 2018 , 2017 and 2016 , 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. Fair Value of Financial Instruments We record various financial instruments recorded at fair value. U.S. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. U.S. GAAP also classifies the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3: Unobservable inputs for the asset or liability. We hold financial instruments consisting of cash and short-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 also hold financial instruments consisting of long-term debt, investments and derivatives. The valuation methodologies for these financial instruments are described in Notes 5, 8, 9, and 12 in the Financial Statements. The methods described in these Notes 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. 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 $371.8 million in 2018 , $348.2 million in 2017 and $319.3 million in 2016 . 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, 2018 ( 0.9 million shares), 2017 ( 0.7 million shares) and 2016 ( 2.2 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): 2018 2017 2016 Net income $ 535.5 $ 825.7 $ 729.7 Less: Allocation to participating securities (0.5 ) (0.9 ) (0.7 ) Net income available to common shareowners $ 535.0 $ 824.8 $ 729.0 Basic weighted average outstanding shares 125.4 128.4 130.2 Effect of dilutive securities Stock options 1.3 1.2 0.9 Performance shares 0.2 0.3 — Diluted weighted average outstanding shares 126.9 129.9 131.1 Earnings per share: Basic $ 4.27 $ 6.42 $ 5.60 Diluted $ 4.21 $ 6.35 $ 5.56 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. Recently Issued 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 and will be applied retrospectively. The non-service components of net periodic pension and postretirement benefit cost, which are to be reclassified to other income (expense) in the Consolidated Statement of Operations upon adoption of the new standard, are expense of $23.8 million , $77.6 million and $67.8 million for the years ended September 30, 2018 , 2017 and 2016 , respectively. 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 adopted the new revenue standard, using the modified retrospective transition method, which results in an adjustment to the opening balance of retained earnings as of October 1, 2018, our adoption date. The estimated cumulative impact of adopting the new standard is an increase in the opening balance sheet retained earnings of less than $10 million . The primary drivers of the impact were changes from the capitalization and deferral of certain contract costs and the timing of revenue, net of costs, for software licenses bundled with services and projects previously accounted for on a completed contract basis. These were partially offset by a deferral of revenue, net of costs, related to the allocation of revenue to hardware and software products and services provided to our customers free of charge as incentives. We do not expect the adoption will have a material impact to our consolidated financial statements, including the presentation of revenues in our Consolidated Statement of Operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill were (in millions): Architecture & Software Control Products & Solutions Total Balance as of September 30, 2016 $ 414.5 $ 659.4 $ 1,073.9 Acquisition of businesses — 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 Acquisition of business 6.8 — 6.8 Translation (1.7 ) (7.3 ) (9.0 ) Balance as of September 30, 2018 $ 422.3 $ 653.2 $ 1,075.5 During the year ended September 30, 2018 , we recognized goodwill of $6.8 million and other intangible assets of $3.0 million resulting from one acquisition. In November 2017, we acquired Odos Imaging Limited (Odos), a Scottish technology company that provides three-dimensional, time-of-flight sensing systems for industrial imaging applications. This acquisition enables us to expand our existing capabilities by bringing 3-D time-of-flight sensor technology to industrial applications. We assigned the full amount of goodwill related to Odos to our Architecture & Software segment. Other intangible assets consist of (in millions): September 30, 2018 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 190.9 $ 118.1 $ 72.8 Customer relationships 112.9 66.2 46.7 Technology 106.8 64.0 42.8 Trademarks 32.0 24.0 8.0 Other 11.2 10.0 1.2 Total amortized intangible assets 453.8 282.3 171.5 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 497.5 $ 282.3 $ 215.2 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 Computer software products represent costs of computer software to be sold, leased or otherwise marketed. Computer software products amortization expense was $11.8 million in 2018 , $9.8 million in 2017 and $11.5 million in 2016 . Estimated amortization expense is $25.4 million in 2019 , $22.6 million in 2020 , $21.6 million in 2021 , $18.9 million in 2022 and $17.7 million in 2023 . 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 2018 and concluded that these assets are not impaired. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of (in millions): September 30, 2018 2017 Finished goods $ 224.3 $ 218.7 Work in process 180.0 168.0 Raw materials 177.3 172.0 Inventories $ 581.6 $ 558.7 |
Property, net
Property, net | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, net | Property, net Property consists of (in millions): September 30, 2018 2017 Land $ 5.3 $ 5.2 Buildings and improvements 359.6 351.6 Machinery and equipment 1,164.2 1,145.8 Internal-use software 497.8 461.5 Construction in progress 111.3 131.7 Total 2,138.2 2,095.8 Less accumulated depreciation (1,561.4 ) (1,511.9 ) Property, net $ 576.8 $ 583.9 |
Long-term and Short-term Debt
Long-term and Short-term Debt | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term and Short-term Debt | Long-term and Short-term Debt Long-term debt consists of (in millions): September 30, 2018 2017 5.65% notes, repaid in December 2017 $ — $ 250.0 2.050% notes, payable in March 2020 294.6 298.7 2.875% notes, payable in March 2025 281.4 296.7 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 (50.8 ) (52.0 ) Total 1,225.2 1,493.4 Less current portion — (250.0 ) Long-term debt $ 1,225.2 $ 1,243.4 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 2.759 percent for the 2020 Notes and 3.169 percent for the 2025 Notes at September 30, 2018 . The aggregate fair value of the interest rate swap contracts at September 30, 2018 was a net unrealized loss of $24.0 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, 2018 and 2017 , 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, 2018 or 2017 . 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 $156.0 million at September 30, 2018 were available to non-U.S. subsidiaries. Borrowings under our non-U.S. credit facilities at September 30, 2018 and 2017 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 $550.0 million at September 30, 2018 and $350.0 million at September 30, 2017 . The weighted average interest rate of the commercial paper outstanding was 2.27 percent at September 30, 2018 and 1.26 percent at September 30, 2017 . Interest payments were $75.5 million during 2018 , $74.2 million during 2017 and $69.2 million during 2016 . Long-term debt is not measured at fair value. The following table presents the carrying amounts and estimated fair values of long-term debt not measured at fair value in the Consolidated Balance Sheet (in millions): September 30, 2018 September 30, 2017 Carrying Value Fair Value Carrying Value Fair Value Current portion of long-term debt $ — $ — $ 250.0 $ 251.6 Long-term debt 1,225.2 1,391.3 1,243.4 1,452.6 We base the fair value of long-term debt upon quoted market prices for the same or similar issues and therefore consider this a Level 2 fair value measurement. The fair value of long-term debt 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. Refer to Note 1 for further information regarding levels in the fair value hierarchy. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of (in millions): September 30, 2018 2017 Unrealized losses on foreign exchange contracts (Note 9) $ 6.2 $ 31.3 Product warranty obligations (Note 7) 27.9 28.5 Taxes other than income taxes 40.9 42.7 Accrued interest 12.3 16.9 Income taxes payable 74.4 32.6 Other 64.9 68.2 Other current liabilities $ 226.6 $ 220.2 |
Product Warranty Obligations
Product Warranty Obligations | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 Beginning balance $ 28.5 $ 28.0 Warranties recorded at time of sale 25.5 25.8 Adjustments to pre-existing warranties (2.6 ) (0.2 ) Settlements of warranty claims (23.5 ) (25.1 ) Ending balance $ 27.9 $ 28.5 |
Investments
Investments | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Our investments consist of (in millions): September 30, 2018 2017 Fixed income securities $ 419.0 $ 1,387.6 Equity securities 1,090.0 — Other 69.9 62.7 Total investments 1,578.9 1,450.3 Less short-term investments (290.9 ) (1,124.6 ) Long-term investments $ 1,288.0 $ 325.7 We record investments in fixed income and equity securities, classified as available-for-sale investments or trading investments, at fair value. Available-for-sale Investments We invest in certificates of deposit, time deposits, commercial paper and other fixed income securities which are classified as available-for-sale. 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 available-for-sale investments consist of (in millions): September 30, 2018 2017 Certificates of deposit and time deposits $ 169.6 $ 1,005.3 Commercial paper — 20.3 Corporate debt securities 158.4 199.4 Government securities 65.8 116.8 Asset-backed securities 25.2 45.8 Total $ 419.0 $ 1,387.6 Pre-tax gross unrealized losses on available-for-sale investments were $2.7 million as of September 30, 2018 . Pre-tax gross realized gains and losses on available-for-sale investments were not material for the years ended September 30, 2018 and 2017 . At September 30, 2018 , there were no outstanding purchases of available-for-sale investments recorded in accounts payable. We evaluated all available-for-sale investments for which the fair value was less than amortized cost for impairment on an individual security basis at September 30, 2018 . 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, 2018 , 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, 2018 (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 $ 290.9 Due in one to five years 128.1 Total $ 419.0 Classification of our available-for-sale 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, 2018 2017 Short-term investments $ 290.9 $ 1,124.6 Long-term investments 128.1 263.0 Total $ 419.0 $ 1,387.6 Trading Investments On July 19, 2018, we purchased 10,582,010 shares of PTC common stock (the "PTC Shares") in a private placement at a purchase price of $94.50 per share for an aggregate purchase price of approximately $1.0 billion ("the Purchase"). The PTC Shares are considered equity securities. For a period of approximately 3 years after the Purchase we are subject to entity-specific transfer restrictions subject to certain exceptions. Following the first anniversary of the Purchase, the Company will be allowed to transfer, in the aggregate in any 90 -day period, a number of Shares equal to up to 1.0% of PTC's total outstanding shares of common stock as of the first day in such 90 -day period, but no more than 2.0% of PTC's total outstanding shares of common stock in each of the second year and the third year after the Purchase. The PTC Shares were recorded at fair value and classified as trading securities. At September 30, 2018 , the fair value of the PTC Shares was $1,090.0 million , which was recorded in long-term investments in the Consolidated Balance Sheet. For the year ended September 30, 2018 , a gain of $90.0 million related to the PTC Shares was recorded in other income (expense) in the Consolidated Statement of Operations. At September 30, 2018 , the PTC Shares were valued using the most recent closing price of PTC common stock quoted on Nasdaq, resulting in a gain of $123.7 million , less a temporary discount for lack of marketability calculated using a put-option model, resulting in a loss of $33.7 million . The marketability discount is due to an instrument-specific restriction as the PTC Shares were issued to the Company in a private placement and are not currently registered for resale under the Securities Act of 1933, as amended. However, the PTC Shares are contractually required to be registered by PTC under the Securities Act of 1933, as amended, within one year, at which time the discount will be reversed. Fair Value of Investments We recognize all available-for-sale and trading investments at fair value in the Consolidated Balance Sheet. The valuation methodologies used for our investments measured at fair value are described below. Certificates of deposit and time deposits — These investments are recorded at cost, which approximates fair value. Commercial paper — These investments are recorded 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. Equity securities — Valued using the most recent closing price of PTC common stock quoted on Nasdaq, less a temporary discount for lack of marketability. The discount for lack of marketability, which will reverse upon registration of the PTC Shares, is calculated using a put-option model which includes observable and unobservable inputs and is categorized as Level 3 in the fair value hierarchy. The primary inputs include historical and implied PTC common stock volatility and the transfer restriction term. Refer to Note 1 for further information regarding levels in the fair value hierarchy. We did not have any transfers between levels of fair value measurements during the periods presented. Fair values of our investments were (in millions): September 30, 2018 Level 1 Level 2 Level 3 Total Certificates of deposit and time deposits $ — $ 169.6 $ — $ 169.6 Corporate debt securities — 158.4 — 158.4 Government securities 55.7 10.1 — 65.8 Asset-backed securities — 25.2 — 25.2 Equity securities — — 1,090.0 1,090.0 Total $ 55.7 $ 363.3 $ 1,090.0 $ 1,509.0 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 The table below sets forth a summary of changes in the fair value of our Level 3 investments (in millions): Equity Securities PTC Share purchase July 19, 2018 $ 954.9 Unrealized gain 135.1 Balance September 30, 2018 $ 1,090.0 Upon purchase of the PTC Shares, we recorded our investment of $954.9 million . The investment consisted of the purchase price of approximately $1.0 billion less a loss of $45.1 million , which includes a $71.9 million valuation adjustment pending registration of the PTC Shares, partially offset by a gain of $26.8 million , resulting from the difference between the purchase price of $94.50 per share and the most recent closing price of PTC common stock quoted on Nasdaq on the Purchase date. The unrealized gain of $135.1 million includes a gain of $96.9 million , resulting from appreciation of the PTC Shares between the Purchase date and the end of the fiscal year, and a $38.2 million decrease in the valuation adjustment associated with a reduction in the expected term of the transfer restriction. The investment of $1,090.0 million at September 30, 2018 includes a gain of $123.7 million on investment and a $33.7 million valuation adjustment. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments 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, 2018 , we had a U.S. dollar-equivalent gross notional amount of $754.7 million of foreign currency forward exchange contracts designated as cash flow hedges. The pre-tax amount of gains (losses) 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): 2018 2017 2016 Forward exchange contracts $ 11.8 $ (16.1 ) $ (6.6 ) 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): 2018 2017 2016 Sales $ 2.4 $ 0.3 $ (5.5 ) Cost of sales (17.2 ) (2.8 ) 25.5 Selling, general and administrative expenses 1.2 (0.5 ) (0.9 ) Total $ (13.6 ) $ (3.0 ) $ 19.1 Approximately $5.7 million of pre-tax net unrealized gains on cash flow hedges as of September 30, 2018 will be reclassified into earnings during the next 12 months. We expect that these net unrealized gains will be offset when the hedged items are recognized in earnings. 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, 2018 , we had a gross notional amount of $81.0 million of foreign currency forward exchange contracts designated as net investment hedges. The pre-tax amount of gains (losses) 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): 2018 2017 2016 Forward exchange contracts $ 1.1 $ (16.3 ) $ 2.3 Foreign currency denominated debt — — 0.8 Total $ 1.1 $ (16.3 ) $ 3.1 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 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, 2018 , 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): 2018 2017 2016 Interest (expense) income $ (19.3 ) $ (24.1 ) $ 14.1 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, 2018 , we had a U.S. dollar-equivalent gross notional amount of $194.7 million of foreign currency forward exchange contracts not designated as hedging instruments. The pre-tax amount of gains (losses) from forward exchange contracts not designated as hedging instruments recognized in the Consolidated Statement of Operations was (in millions): 2018 2017 2016 Cost of sales $ 1.0 $ (1.8 ) $ 0.9 Other income (expense) (0.1 ) (8.6 ) (11.1 ) Total $ 0.9 $ (10.4 ) $ (10.2 ) Fair Value of 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 2018 , 2017 or 2016 . 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 $1,030.4 million at September 30, 2018 . Currency pairs (buy/sell) comprising the most significant contract notional values were United States dollar (USD)/Euro, USD/Canadian dollar, USD/Singapore dollar, USD/Swiss franc, Euro/British pound and USD/Mexican peso. Refer to Note 1 for further information regarding levels in the fair value hierarchy. 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, 2018 September 30, 2017 Forward exchange contracts Other current assets $ 15.8 $ 12.4 Forward exchange contracts Other assets 1.9 0.3 Forward exchange contracts Other current liabilities (5.1 ) (19.1 ) Forward exchange contracts Other liabilities (0.7 ) (5.1 ) Interest rate swap contracts Other liabilities (24.0 ) (4.6 ) Total $ (12.1 ) $ (16.1 ) Fair Value (Level 2) Derivatives Not Designated as Hedging Instruments Balance Sheet Location September 30, 2018 September 30, 2017 Forward exchange contracts Other current assets $ 3.4 $ 0.8 Forward exchange contracts Other assets 0.6 — Forward exchange contracts Other current liabilities (1.1 ) (12.2 ) Total $ 2.9 $ (11.4 ) |
Shareowners' Equity
Shareowners' Equity | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Shareowners' Equity | Shareowners’ Equity Common Stock At September 30, 2018 , 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, 2018 , 9.6 million shares of authorized common stock were reserved for various incentive plans. Changes in outstanding common shares are summarized as follows (in millions): 2018 2017 2016 Beginning balance 128.4 128.5 132.4 Treasury stock purchases (8.3 ) (2.3 ) (4.6 ) Shares delivered under incentive plans 0.9 2.2 0.7 Ending balance 121.0 128.4 128.5 At September 30, 2018 , there were $18.3 million of outstanding common stock share repurchases recorded in accounts payable. At September 30, 2017 , there were no outstanding common stock share repurchases recorded in accounts payable. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component for the years ended September 30, 2018 , 2017 and 2016 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, 2015 $ (1,097.1 ) $ (252.4 ) $ 14.9 $ — $ (1,334.6 ) Other comprehensive loss 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 (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 ) Other comprehensive income (loss) before reclassifications 188.4 (48.3 ) 8.7 (2.1 ) 146.7 Amounts reclassified from accumulated other comprehensive loss 80.5 — 10.1 — 90.6 Other comprehensive income (loss) 268.9 (48.3 ) 18.8 (2.1 ) 237.3 Balance as of September 30, 2018 $ (658.1 ) $ (286.0 ) $ 4.4 $ (2.2 ) $ (941.9 ) The reclassifications out of accumulated other comprehensive loss to the Consolidated Statement of Operations for the years ended September 30, 2018 , 2017 and 2016 were (in millions): Year Ended September 30, Affected Line in the Consolidated Statement of Operations 2018 2017 2016 Pension and other postretirement benefit plan adjustments: Amortization of prior service credit $ (4.9 ) $ (9.8 ) $ (14.0 ) (a) Amortization of net actuarial loss 115.1 155.2 126.8 (a) Settlements 0.7 2.8 — (a) 110.9 148.2 112.8 Income before income taxes (30.4 ) (50.6 ) (39.0 ) Income tax provision $ 80.5 $ 97.6 $ 73.8 Net income Net unrealized (gains) losses on cash flow hedges: Forward exchange contracts $ (2.4 ) $ (0.3 ) $ 5.5 Sales Forward exchange contracts 17.2 2.8 (25.5 ) Cost of sales Forward exchange contracts (1.2 ) 0.5 0.9 Selling, general and administrative expenses 13.6 3.0 (19.1 ) Income before income taxes (3.5 ) (1.0 ) 3.7 Income tax provision $ 10.1 $ 2.0 $ (15.4 ) Net income Total reclassifications $ 90.6 $ 99.6 $ 58.4 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, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation During 2018 , 2017 and 2016 , we recognized $38.5 million , $38.5 million and $40.5 million of pre-tax share-based compensation expense, respectively. The total income tax benefit related to share-based compensation expense was $9.6 million , $12.3 million and $12.9 million during 2018 , 2017 and 2016 , 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, 2018 , total unrecognized compensation cost related to share-based compensation awards was $41.1 million , net of estimated forfeitures, which we expect to recognize over a weighted average period of approximately 1.8 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, upon grant, or in payment of stock appreciation rights, performance shares, performance units, restricted stock units or 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, upon grant, or in payment of restricted stock units. Shares relating to awards under our 2012 Plan, or 2008 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 4.5 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, 2018 . 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, 2018 , 2017 and 2016 was $35.29 , $25.70 and $21.28 , respectively. The total intrinsic value of stock options exercised was $71.0 million , $141.1 million and $21.9 million during 2018 , 2017 and 2016 , 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: 2018 2017 2016 Average risk-free interest rate 2.14 % 1.85 % 1.76 % Expected dividend yield 1.75 % 2.21 % 2.78 % Expected volatility 22 % 24 % 29 % Expected term (years) 5.0 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, 2018 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, 2017 3,889 $ 108.10 Granted 894 191.87 Exercised (798 ) 102.54 Forfeited (68 ) 158.18 Canceled (3 ) 94.85 Outstanding at September 30, 2018 3,914 127.50 6.9 $ 234.9 Vested or expected to vest at September 30, 2018 2,796 100.84 5.6 242.4 Exercisable at September 30, 2018 2,053 101.20 5.5 177.2 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, 2018 is as follows: Performance Shares (in thousands) Wtd. Avg. Grant Date Share Fair Value Outstanding at October 1, 2017 190 $ 112.64 Granted (1) 40 219.04 Adjustment for performance results achieved (2) 64 190.46 Vested and issued (139 ) 144.07 Forfeited (5 ) 152.93 Outstanding at September 30, 2018 150 143.94 (1) Performance shares granted assuming achievement of performance goals at target. (2) Adjustments were due to the number of shares vested under the fiscal 2015 awards at the end of the three-year performance period ended September 30, 2017 being higher than the target number of shares. The following table summarizes information about performance shares vested during the years ended September 30, 2018 , 2017 and 2016 : 2018 2017 2016 Percent payout 187 % 10 % 93 % Shares vested (in thousands) 139 6 67 Total fair value of shares vested (in millions) $ 26.5 $ 0.9 $ 7.1 For the three-year performance period ending September 30, 2018 , the payout will be 200 percent of the target number of shares, with a maximum of 145,000 shares to be delivered in payment under the awards in December 2018 . The per-share fair value of performance share awards granted during the years ended September 30, 2018 , 2017 and 2016 was $219.04 , $174.37 and $87.64 , respectively, which we determined using a Monte Carlo simulation and the following assumptions: 2018 2017 2016 Average risk-free interest rate 1.88 % 1.35 % 1.21 % Expected dividend yield 1.72 % 2.20 % 2.75 % Expected volatility 22 % 23 % 22 % 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, 2018 , 2017 and 2016 was $188.41 , $138.32 and $105.38 , respectively. The total fair value of shares vested during the years ended September 30, 2018 , 2017 , and 2016 was $7.2 million , $7.6 million , and $7.0 million , respectively. A summary of restricted stock and restricted stock unit activity for the year ended September 30, 2018 is as follows: Restricted Stock and Restricted Stock Units (in thousands) Wtd. Avg. Grant Date Share Fair Value Outstanding at October 1, 2017 141 $ 118.87 Granted 47 188.41 Vested (38 ) 115.19 Forfeited (4 ) 142.33 Outstanding at September 30, 2018 146 $ 141.35 We also granted approximately 7,000 shares of unrestricted common stock to non-employee directors during the year ended September 30, 2018 . The weighted average grant date fair value of the unrestricted stock awards granted during the years ended September 30, 2018 , 2017 , and 2016 was $183.76 , $129.68 and $98.79 , respectively. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits We sponsor funded and unfunded pension plans and other postretirement benefit plans for our employees. The pension plans 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 defined contribution plans. 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 at a minimum the 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 in 2018 , 2017 or 2016 . We did not make voluntary contributions to our U.S. qualified pension plan in 2018 . 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 . We sponsor various defined contribution savings plans that allow eligible employees to contribute a portion of their income in accordance with plan specific guidelines. We contribute to savings plans and/or will match a percentage of the employee contributions up to certain limits. The Company contributions to defined contribution plans are based on age and years of service and range from 3% to 7% of eligible compensation. Expense related to these plans was $47.0 million in 2018 , $41.5 million in 2017 and $38.6 million in 2016 . 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. Net Periodic Benefit Cost The components of net periodic benefit cost (income) are (in millions): Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 Service cost $ 88.9 $ 97.0 $ 88.0 $ 1.3 $ 1.4 $ 1.3 Interest cost 155.3 151.6 169.5 2.4 2.5 3.3 Expected return on plan assets (244.8 ) (225.2 ) (218.3 ) — — — Amortization: Prior service cost (credit) 0.6 (3.7 ) (2.9 ) (5.5 ) (6.1 ) (11.1 ) Net actuarial loss 113.4 152.9 124.5 1.7 2.3 2.3 Special termination benefit — 0.5 0.5 — — — Settlements 0.7 2.8 — — — — Net periodic benefit cost (income) $ 114.1 $ 175.9 $ 161.3 $ (0.1 ) $ 0.1 $ (4.2 ) Significant assumptions used in determining net periodic benefit cost (income) are (in weighted averages): Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 U.S. Plans Discount rate 3.90 % 3.75 % 4.55 % 3.40 % 3.10 % 3.85 % Expected return on plan assets 7.50 % 7.50 % 7.50 % — — — Compensation increase rate 3.50 % 3.50 % 3.75 % — — — Non-U.S. Plans Discount rate 2.30 % 1.77 % 2.67 % 3.20 % 2.80 % 3.60 % Expected return on plan assets 5.19 % 5.12 % 5.21 % — — — Compensation increase rate 2.99 % 2.86 % 3.11 % — — — Net Benefit Obligation Benefit obligation, plan assets, funded status and net liability information is summarized as follows (in millions): Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Benefit obligation at beginning of year $ 4,585.0 $ 4,785.9 $ 77.8 $ 86.9 Service cost 88.9 97.0 1.3 1.4 Interest cost 155.3 151.6 2.4 2.5 Actuarial gains (257.1 ) (221.9 ) (8.5 ) (3.8 ) Plan amendments (0.3 ) (6.9 ) — — Plan participant contributions 3.7 3.9 3.4 3.4 Benefits paid (277.7 ) (251.9 ) (13.5 ) (13.4 ) Special termination benefit — 0.5 — — Settlements (10.4 ) (13.8 ) — — Curtailments (3.5 ) (1.0 ) — — Currency translation and other (24.4 ) 41.6 (0.5 ) 0.8 Benefit obligation at end of year 4,259.5 4,585.0 62.4 77.8 Plan assets at beginning of year 3,788.3 3,447.9 — — Actual return on plan assets 220.6 315.5 — — Company contributions 50.3 254.9 10.1 10.0 Plan participant contributions 3.7 3.9 3.4 3.4 Benefits paid (277.7 ) (251.9 ) (13.5 ) (13.4 ) Settlements (10.4 ) (13.8 ) — — Currency translation and other (20.0 ) 31.8 — — Plan assets at end of year 3,754.8 3,788.3 — — Funded status of plans $ (504.7 ) $ (796.7 ) $ (62.4 ) $ (77.8 ) Net amount on balance sheet consists of: Other assets $ 30.6 $ 10.6 $ — $ — Compensation and benefits (12.3 ) (11.7 ) (10.1 ) (9.5 ) Retirement benefits (523.0 ) (795.6 ) (52.3 ) (68.3 ) Net amount on balance sheet $ (504.7 ) $ (796.7 ) $ (62.4 ) $ (77.8 ) The actuarial gains recorded in 2018 were primarily the result of an increase in the discount rate for U.S. Plans, which increased from 3.90% in 2017 to 4.35% in 2018 . The actuarial gains recorded in 2017 were primarily the result of an increase in the discount rate for U.S. Plans, which increased from 3.75% in 2016 to 3.90% in 2017 . Amounts included in accumulated other comprehensive loss, net of tax, at September 30, 2018 and 2017 which have not yet been recognized in net periodic benefit cost are as follows (in millions): Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Prior service cost (credit) $ 4.3 $ 5.3 $ (8.2 ) $ (12.2 ) Net actuarial loss 657.6 921.9 4.4 12.0 Total $ 661.9 $ 927.2 $ (3.8 ) $ (0.2 ) During 2018 , we recognized prior service credits of $4.9 million ( $3.8 million net of tax) and net actuarial losses of $115.1 million ( $84.3 million net of tax) in pension and other postretirement net periodic benefit cost, which were included in accumulated other comprehensive loss at September 30, 2017 . The accumulated benefit obligation for our pension plans was $3,962.3 million and $4,252.2 million at September 30, 2018 and 2017 , respectively. Information regarding our pension plans with projected benefit obligations in excess of the fair value of plan assets (underfunded plans) at September 30, 2018 and 2017 are as follows (in millions): 2018 2017 Projected benefit obligation $ 3,755.5 $ 4,280.9 Fair value of plan assets 3,220.2 3,473.6 Information regarding our pension plans with accumulated benefit obligations in excess of the fair value of plan assets (underfunded plans) at September 30, 2018 and 2017 are as follows (in millions): 2018 2017 Accumulated benefit obligation $ 679.7 $ 3,956.8 Fair value of plan assets 392.9 3,473.6 Significant assumptions used in determining the benefit obligations are (in weighted averages): Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 U.S. Plans Discount rate 4.35 % 3.90 % 4.15 % 3.40 % Compensation increase rate 3.50 % 3.50 % — — Health care cost trend rate (1) — — 6.50 % 6.50 % Non-U.S. Plans Discount rate 2.48 % 2.30 % 3.30 % 3.20 % Compensation increase rate 3.02 % 2.99 % — — Health care cost trend rate (1) — — 4.50 % 4.50 % (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 2020 for U.S. Plans and will not change in 2019 for Non-U.S. Plans. Estimated Future Payments We expect to contribute $32.0 million related to our global pension plans and $10.3 million to our postretirement benefit plans in 2019 . The following benefit payments, which include employees’ expected future service, as applicable, are expected to be paid (in millions): Pension Benefits Other Postretirement Benefits 2019 $ 288.9 $ 10.3 2020 268.5 6.8 2021 282.1 5.5 2022 301.7 5.1 2023 278.4 4.8 2024 – 2028 1,417.0 19.8 Plan Assets 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 2018 2017 Equity securities 40% – 65% 55% 53% 50% Debt securities 30% – 50% 39% 39% 42% Other 0% – 15% 6% 8% 8% 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, 2018 and 2017 , 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, 2018 and 2017 . 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. Refer to Note 1 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 beginning in fiscal 2017. The following table presents our pension plans’ investments measured at fair value as of September 30, 2018 : Level 1 Level 2 Level 3 Total U.S. Plans Cash and cash equivalents $ 2.0 $ — $ — $ 2.0 Equity securities: Mutual funds 222.1 — — 222.1 Common stock 964.7 — — 964.7 Common collective trusts — 422.2 — 422.2 Fixed income securities: Corporate debt — 627.7 — 627.7 Government securities 242.9 105.8 — 348.7 Common collective trusts — 141.4 — 141.4 Other types of investments: Insurance contracts — — 0.9 0.9 Total U.S. Plans investments in fair value hierarchy $ 1,431.7 $ 1,297.1 $ 0.9 2,729.7 U.S. Plans investments measured at NAV: Private equity 36.5 Alternative equity 61.1 Total U.S. Plans investments 2,827.3 Non-U.S. Plans Cash and cash equivalents $ 12.8 $ — $ — 12.8 Equity securities: Common stock 59.2 — — 59.2 Common collective trusts — 320.7 — 320.7 Fixed income securities: Corporate debt — 33.8 — 33.8 Government securities 1.1 15.5 — 16.6 Common collective trusts — 310.4 — 310.4 Other types of investments: Real estate funds — 80.5 — 80.5 Insurance contracts — — 79.1 79.1 Other — — 4.6 4.6 Total Non-U.S. Plans investments in fair value hierarchy $ 73.1 $ 760.9 $ 83.7 917.7 Non-U.S. Plans investments measured at NAV: Real estate funds 9.8 Total Non-U.S. Plans investments 927.5 Total investments measured at fair value $ 3,754.8 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 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, 2018 : Balance Realized Gains (Losses) Unrealized Gains (Losses) Purchases, Sales, Issuances, and Settlements, Net Balance September 30, 2018 U.S. Plans Insurance contracts $ 0.9 $ — $ — $ — $ 0.9 Non-U.S. Plans Insurance contracts 71.5 — (0.4 ) 8.0 79.1 Other 4.8 — (0.2 ) — 4.6 $ 77.2 $ — $ (0.6 ) $ 8.0 $ 84.6 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 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 In August 2018, the FASB issued a new standard which adds, removes and modifies various disclosures for defined benefit and other postretirement benefit plans. This standard is effective for us for reporting periods beginning October 1, 2020; however, we elected to adopt this standard early as of September 30, 2018 and applied the changes retrospectively to all periods presented herein. The adoption of this standard did not have a material impact on our disclosures. |
Other Income (Expense)
Other Income (Expense) | 12 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense) | Other Income (Expense) The components of other income (expense) are (in millions): 2018 2017 2016 Gain on sale of business $ — $ 60.8 $ — Change in fair value of investments 90.0 — — Interest income 24.4 19.6 12.7 Royalty income 9.7 8.9 2.9 Legacy product liability and environmental benefit (charges) 2.6 (8.3 ) (12.7 ) Other 3.9 (0.1 ) 3.4 Other income (expense) $ 130.6 $ 80.9 $ 6.3 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. The change in fair value of investments includes the gain on investments and valuation adjustment pending registration of PTC Shares. Additional information related to our investments is included in Note 8. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Selected income tax data (in millions): 2018 2017 2016 Components of income before income taxes: United States $ 721.6 $ 547.2 $ 512.1 Non-United States 609.2 490.2 431.0 Total $ 1,330.8 $ 1,037.4 $ 943.1 Components of the income tax provision: Current: United States $ 475.3 $ 67.3 $ 175.9 Non-United States 131.4 109.9 91.7 State and local 18.1 0.7 16.3 Total current 624.8 177.9 283.9 Deferred: United States 118.6 44.6 (53.7 ) Non-United States 48.0 (14.1 ) (8.8 ) State and local 3.9 3.3 (8.0 ) Total deferred 170.5 33.8 (70.5 ) Income tax provision $ 795.3 $ 211.7 $ 213.4 Total income taxes paid $ 222.9 $ 211.9 $ 299.8 Provisional Amounts On December 22, 2017, the Tax Act was enacted. The Tax Act significantly changes U.S. tax law by, among other things, lowering the statutory corporate income tax rate, implementing a modified territorial tax system, and imposing a one-time transition tax on accumulated earnings of foreign subsidiaries that were previously deferred from U.S. tax ("transition tax"). As a fiscal year taxpayer, certain provisions of the Tax Act impact us in fiscal year 2018, including the change in the federal statutory rate and the one-time transition tax, while other provisions will be effective in fiscal year 2019, including the tax on global intangible low-tax income ("GILTI") of foreign subsidiaries, the deduction for foreign derived intangible income ("FDII"), and the elimination of the domestic manufacturing deduction. Our base rate reflects a change in the U.S. federal statutory rate from 35 percent to 21 percent resulting from the enactment of the Tax Act. The rate change was effective for us at the beginning of our fiscal year, using a blended rate for the annual period. As a result, the blended statutory rate for our fiscal year 2018 is 24.53 percent. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance on how a company may recognize provisional estimates related to the effects of the Tax Act. The final impact of the Tax Act may differ from provisional estimates as a result of additional analysis of provisions of the Tax Act, and interpretation of any additional guidance issued by standard-setting and regulatory bodies such as the U.S. Treasury Department and FASB. The Company will complete its accounting related to the Tax Act within the one-year measurement period allowed under SAB 118. As a result of the Tax Act, we revalued our U.S. deferred tax assets and liabilities based on the rate at which they are expected to reverse in the future, which is either 24.53 percent for reversals in 2018 or 21 percent for reversals in 2019 and subsequent years. We have recorded a provisional amount of $104.4 million in the year ended September 30, 2018. The Tax Act requires the transition tax to be computed based on our total post-1986 earnings and profits (“E&P”) at December 31, 2017, that were previously deferred from U.S. income tax. As a result, we are required to make reasonable estimates given our September 30 fiscal year. We have recorded a provisional expense of $395.8 million for the transition tax liability for all of our foreign subsidiaries in 2018. The transition tax is applied to the balance of post-1986 E&P at rates of 15.5 percent of cash assets (as defined in the Tax Act) and 8 percent for non-cash assets measured at the higher of the balance at September 30, 2018, or the average of the ending balances at September 30, 2016 and September 30, 2017. Our estimates will change as a result of adjustments impacting E&P, and distributions and other transactions impacting cash. Under the Tax Act, the Company will elect to pay the transition tax interest-free over eight years, with 8% due in each of the first five years, 15% in year six, 20% in year seven, and 25% in year eight. We have recorded income taxes payable of $389.4 million in the Consolidated Balance Sheet, of which $31.1 million is recorded within other current liabilities and $358.3 million is recorded within other liabilities because that portion is payable greater than twelve months after September 30, 2018. The Tax Act includes a provision to tax GILTI of foreign subsidiaries. The FASB allows companies to adopt an accounting policy to either recognize deferred taxes for GILTI or treat it as a tax cost in the year incurred. Due to the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Tax Act and the application of U.S. GAAP. The GILTI provisions will be effective for us beginning October 1, 2018. The Company has historically accounted for the earnings of its foreign subsidiaries as being indefinitely reinvested under ASC 740-30. As a result of the broad changes to the U.S. international tax system under the Tax Act, the Company will begin to account for substantially all of its non-U.S. subsidiaries as being immediately subject to tax, while still concluding that earnings are indefinitely reinvested for a limited number of subsidiaries. For non-U.S. subsidiaries that are accounted for as being immediately subject to tax, we have recorded deferred tax liabilities of $34.8 million related to foreign withholding taxes on future distributions of historic earnings and deferred tax assets of $9.9 million related to U.S. foreign tax credits attributable to the foreign withholding taxes. The company continues to treat as permanently invested the earnings of a limited number of its subsidiaries due mainly to local country repatriation restrictions. We have not provided for deferred taxes on the undistributed earnings of these subsidiaries as they are not material. Effective Tax Rate Reconciliation The reconciliation between the U.S. federal statutory rate and our effective tax rate was: 2018 2017 2016 Statutory tax rate 24.5 % 35.0 % 35.0 % State and local income taxes 1.0 0.7 0.6 Non-United States taxes (4.4 ) (9.3 ) (8.6 ) Tax effect of foreign dividends 4.2 0.5 0.1 Impact of the Tax Act 36.6 — — Foreign currency transaction loss — (1.9 ) (0.8 ) Share-based compensation (1.3 ) (2.8 ) — Research and development tax credit (1.3 ) (0.6 ) (2.0 ) Other 0.5 (1.2 ) (1.7 ) Effective income tax rate 59.8 % 20.4 % 22.6 % 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 $52.3 million ( $0.41 per diluted share) in 2018 , $43.4 million ( $0.33 per diluted share) in 2017 and $33.9 million ( $0.26 per diluted share) in 2016 . Deferred Taxes The tax effects of temporary differences that give rise to our net deferred income tax assets (liabilities) were (in millions): 2018 2017 Deferred income tax assets: Compensation and benefits $ 6.5 $ 18.8 Inventory 11.5 20.2 Returns, rebates and incentives 34.0 45.9 Retirement benefits 141.5 305.5 Environmental remediation and other site-related costs 20.7 33.4 Share-based compensation 19.6 32.4 Other accruals and reserves 49.7 71.3 Net operating loss carryforwards 19.6 20.4 Tax credit carryforwards 17.9 15.3 Capital loss carryforwards 10.0 10.3 Other 4.6 11.1 Subtotal 335.6 584.6 Valuation allowance (27.0 ) (18.6 ) Net deferred income tax assets 308.6 566.0 Deferred income tax liabilities: Property (54.7 ) (74.0 ) Intangible assets (25.3 ) (45.9 ) Investments (21.7 ) — Unremitted earnings of foreign subsidiaries (22.7 ) — Other (4.6 ) (2.5 ) Deferred income tax liabilities (129.0 ) (122.4 ) Total net deferred income tax assets $ 179.6 $ 443.6 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, 2018 were (in millions): Tax attributes and related valuation allowances Tax Benefit Amount Valuation Allowance Carryforward Non-United States net operating loss carryforward $ 7.0 $ 7.0 2019 - 2024 Non-United States net operating loss carryforward 3.3 3.3 Indefinite Non-United States capital loss carryforward 10.0 10.0 Indefinite United States net operating loss carryforward 0.6 — 2019 - 2033 United States tax credit carryforward 0.8 — 2019 - 2037 State and local net operating loss carryforward 8.7 1.4 2019 - 2037 State tax credit carryforward 17.1 0.7 2019 - 2033 Subtotal 47.5 22.4 Other deferred tax assets 4.6 4.6 Indefinite Total $ 52.1 $ 27.0 Unrecognized Tax Benefits A reconciliation of our gross unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2018 2017 2016 Gross unrecognized tax benefits balance at beginning of year $ 31.1 $ 32.4 $ 43.9 Additions based on tax positions related to the current year — 1.9 2.3 Additions based on tax positions related to prior years 3.0 10.8 14.9 Reductions based on tax positions related to prior years (1.1 ) (0.1 ) — Reductions related to settlements with taxing authorities (11.3 ) (7.7 ) (27.1 ) Reductions related to lapses of statute of limitations (1.6 ) (6.3 ) (1.6 ) Effect of foreign currency translation — 0.1 — Gross unrecognized tax benefits balance at end of year $ 20.1 $ 31.1 $ 32.4 The amount of gross unrecognized tax benefits that would reduce our effective tax rate if recognized was $20.1 million , $31.1 million and $32.4 million at September 30, 2018 , 2017 and 2016 , respectively. Accrued interest and penalties related to unrecognized tax benefits were $2.5 million and $4.0 million at September 30, 2018 and 2017 , respectively. We recognize interest and penalties related to unrecognized tax benefits in the income tax provision. Benefits (expense) recognized were $1.5 million , $1.2 million and $(0.1) million in 2018 , 2017 and 2016 , respectively. We believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $6.0 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 $5.5 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 2016 and are no longer subject to state, local and non-U.S. income tax examinations for years before 2009 . |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Sep. 30, 2018 | |
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 are as follows: 2018 2017 Environmental remediation costs $ 61.6 $ 67.6 Conditional asset retirement obligations 21.9 21.2 Indemnification liabilities 9.5 12.0 Total recorded liabilities 93.0 100.8 Recorded probable expected recoveries (14.1 ) (17.8 ) Net recorded liabilities $ 78.9 $ 83.0 As of September 30, 2018 , we have estimated the total reasonably possible costs we could incur from these environmental remediation and indemnification liabilities to be $108.0 million ( $90.5 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 are as follows (in millions): 2018 Other current liabilities $ 7.8 Other liabilities 53.8 Total recorded environmental remediation costs (1) 61.6 Receivables (1.4 ) Other assets (8.0 ) Total recorded probable expected recoveries (9.4 ) Net environmental remediation costs $ 52.2 (1) Includes $45.7 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 are as follows (in millions): 2018 2017 Other current liabilities $ 0.6 $ 0.7 Other liabilities 21.3 20.5 Total recorded conditional asset retirement obligations 21.9 21.2 Receivables — (0.1 ) Other assets (0.3 ) (0.2 ) Total recorded probable expected recoveries (0.3 ) (0.3 ) Net conditional asset retirement obligations $ 21.6 $ 20.9 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, 2018 and 2017 , 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. Following litigation against several insurers to pursue coverage for these claims, we entered into separate agreements with the insurers that resulted in both lump sum payments and coverage-in-place agreements. We believe these arrangements will provide substantial coverage for future defense and indemnity costs 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 are as follows (in millions): 2018 2017 Other current liabilities $ 1.6 $ 2.5 Other liabilities 7.9 9.5 Total recorded indemnification liabilities 9.5 12.0 Receivables (0.8 ) (1.6 ) Other assets (3.6 ) (4.6 ) Total recorded probable expected recoveries (4.4 ) (6.2 ) Net indemnification liabilities $ 5.1 $ 5.8 Included in the above are certain environmental indemnification liabilities that are substantially indemnified by ExxonMobil Corporation for which we have recorded a liability of $4.7 million and $6.6 million , and a related receivable of $4.5 million and $6.2 million , as of September 30, 2018 and 2017 , 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 hardware and software products. As of September 30, 2018 , 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 $120.3 million in 2018 , $115.1 million in 2017 and $115.5 million in 2016 . As of September 30, 2018 , minimum future rental commitments under operating leases having noncancelable lease terms in excess of one year are payable as follows (in millions): 2019 $ 78.1 2020 68.9 2021 54.6 2022 40.9 2023 30.2 Beyond 2023 68.4 Total $ 341.1 Commitments from third parties under sublease agreements having noncancelable lease terms in excess of one year were not significant as of September 30, 2018 . 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, 2018 | |
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 hardware and software 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 hardware and software 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 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. The following tables reflect the sales and operating results of our reportable segments (in millions): 2018 2017 2016 Sales: Architecture & Software $ 3,098.2 $ 2,899.3 $ 2,635.2 Control Products & Solutions 3,567.8 3,412.0 3,244.3 Total $ 6,666.0 $ 6,311.3 $ 5,879.5 Segment operating earnings: Architecture & Software $ 901.3 $ 781.5 $ 695.0 Control Products & Solutions 541.3 451.6 493.7 Total 1,442.6 1,233.1 1,188.7 Purchase accounting depreciation and amortization (17.4 ) (21.4 ) (18.4 ) General corporate-net (75.6 ) (76.3 ) (79.7 ) Non-operating pension costs (24.6 ) (82.6 ) (76.2 ) Gain on sale of business — 60.8 — Costs related to unsolicited Emerson proposals (11.2 ) — — Gain on investments 123.7 — — Valuation adjustment pending registration of PTC Shares (33.7 ) — — Interest expense (73.0 ) (76.2 ) (71.3 ) Income before income taxes $ 1,330.8 $ 1,037.4 $ 943.1 Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before income taxes, costs related to the unsolicited Emerson proposals in the first quarter of fiscal 2018, interest expense, costs related to corporate offices, non-operating pension costs, certain corporate initiatives, gains and losses on investments, valuation adjustment pending registration of PTC Shares, 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 , 2018 , 2017 and 2016 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): 2018 2017 2016 Identifiable assets: Architecture & Software $ 1,788.9 $ 2,482.8 $ 2,054.3 Control Products & Solutions 2,094.9 2,078.2 2,034.6 Corporate 2,378.2 2,600.7 3,012.3 Total $ 6,262.0 $ 7,161.7 $ 7,101.2 Depreciation and amortization: Architecture & Software $ 72.5 $ 69.3 $ 75.0 Control Products & Solutions 72.4 75.0 77.3 Corporate 2.3 3.2 1.5 Total 147.2 147.5 153.8 Purchase accounting depreciation and amortization 17.4 21.4 18.4 Total $ 164.6 $ 168.9 $ 172.2 Capital expenditures for property: Architecture & Software $ 29.4 $ 30.0 $ 24.7 Control Products & Solutions 38.5 42.1 41.5 Corporate 57.6 69.6 50.7 Total $ 125.5 $ 141.7 $ 116.9 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 $234.4 million , $259.3 million and $264.8 million at September 30, 2018 , 2017 and 2016 , 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 $57.6 million , $69.6 million and $50.7 million in 2018 , 2017 and 2016 , 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 2018 2017 2016 2018 2017 2016 United States $ 3,602.6 $ 3,458.4 $ 3,213.4 $ 437.6 $ 443.4 $ 445.4 Canada 361.5 343.4 316.4 12.6 8.8 7.3 Europe, Middle East and Africa 1,286.8 1,193.7 1,147.2 53.3 52.5 49.9 Asia Pacific 933.3 866.4 764.4 42.9 40.0 37.4 Latin America 481.8 449.4 438.1 30.4 39.2 38.3 Total $ 6,666.0 $ 6,311.3 $ 5,879.5 $ 576.8 $ 583.9 $ 578.3 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 2018 , 2017 and 2016 , 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, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) 2018 Quarters (in millions, except per share amounts) First Second Third Fourth 2018 Sales $ 1,586.6 $ 1,651.2 $ 1,698.7 $ 1,729.5 $ 6,666.0 Gross profit 697.1 700.8 741.7 732.6 2,872.2 Income before income taxes 297.8 299.6 251.7 481.7 1,330.8 Net (loss) income (236.4 ) 227.4 198.6 345.9 535.5 (Loss) Earnings per share: Basic (1.84 ) 1.79 1.60 2.84 4.27 Diluted (1.84 ) 1.77 1.58 2.80 4.21 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 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, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Rocky Flats Settlement | 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, 2018 | |
SEC Schedule, 12-09, 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, 2018 , 2017 and 2016 Additions (in millions) Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions(b) Balance at End of Year Description *Year ended September 30, 2018 Allowance for doubtful accounts (a) $ 24.9 $ 0.1 $ — $ 7.9 $ 17.1 Valuation allowance for deferred tax assets 18.6 8.9 — 0.5 27.0 *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 (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 Acc_2
Basis of Presentation and Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
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; discount valuation of PTC Inc. ("PTC") common stock; 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 hardware and software 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 hardware and software 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 hardware and software 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 hardware and software products, solutions and services to be provided. Accruals are reported as a current liability in our Consolidated 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. |
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 recorded net of an allowance for doubtful accounts of $17.1 million at September 30, 2018 and $24.9 million at September 30, 2017 . In addition, receivables are recorded net of an allowance for certain customer returns, rebates and incentives of $8.7 million at September 30, 2018 and $11.9 million at September 30, 2017 . |
Inventories | Inventories Inventories are recorded 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. |
Investments | Investments Investments include time deposits, certificates of deposit, other fixed income securities and equity securities. Investments with original maturities longer than three months at the time of purchase and less than one year from period end are classified as short-term. All other investments are classified as long-term. Fixed income securities meeting the definition of a security are accounted for as available-for-sale and recorded at fair value. Equity securities are recorded at fair value. All other investments are recorded at cost, which approximates fair value. |
Property | Property Property, including internal-use software, is recorded 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 10 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 $43.2 million , $29.6 million and $29.9 million were accrued within accounts payable and other current liabilities at September 30, 2018 , 2017 and 2016 , 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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We record various financial instruments recorded at fair value. U.S. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. U.S. GAAP also classifies the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3: Unobservable inputs for the asset or liability. We hold financial instruments consisting of cash and short-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 also hold financial instruments consisting of long-term debt, investments and derivatives. The valuation methodologies for these financial instruments are described in Notes 5, 8, 9, and 12 in the Financial Statements. The methods described in these Notes 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. |
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 $371.8 million in 2018 , $348.2 million in 2017 and $319.3 million in 2016 . 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, 2018 ( 0.9 million shares), 2017 ( 0.7 million shares) and 2016 ( 2.2 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. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Issued 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 and will be applied retrospectively. The non-service components of net periodic pension and postretirement benefit cost, which are to be reclassified to other income (expense) in the Consolidated Statement of Operations upon adoption of the new standard, are expense of $23.8 million , $77.6 million and $67.8 million for the years ended September 30, 2018 , 2017 and 2016 , respectively. 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 adopted the new revenue standard, using the modified retrospective transition method, which results in an adjustment to the opening balance of retained earnings as of October 1, 2018, our adoption date. The estimated cumulative impact of adopting the new standard is an increase in the opening balance sheet retained earnings of less than $10 million . The primary drivers of the impact were changes from the capitalization and deferral of certain contract costs and the timing of revenue, net of costs, for software licenses bundled with services and projects previously accounted for on a completed contract basis. These were partially offset by a deferral of revenue, net of costs, related to the allocation of revenue to hardware and software products and services provided to our customers free of charge as incentives. We do not expect the adoption will have a material impact to our consolidated financial statements, including the presentation of revenues in our Consolidated Statement of Operations. |
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 Derivative Instruments | Fair Value of 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 2018 , 2017 or 2016 . 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 $1,030.4 million at September 30, 2018 . Currency pairs (buy/sell) comprising the most significant contract notional values were United States dollar (USD)/Euro, USD/Canadian dollar, USD/Singapore dollar, USD/Swiss franc, Euro/British pound and USD/Mexican peso. Refer to Note 1 for further information regarding levels in the fair value hierarchy. We value interest rate swap contracts using a market approach based on observable market inputs including publicized swap curves. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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): 2018 2017 2016 Net income $ 535.5 $ 825.7 $ 729.7 Less: Allocation to participating securities (0.5 ) (0.9 ) (0.7 ) Net income available to common shareowners $ 535.0 $ 824.8 $ 729.0 Basic weighted average outstanding shares 125.4 128.4 130.2 Effect of dilutive securities Stock options 1.3 1.2 0.9 Performance shares 0.2 0.3 — Diluted weighted average outstanding shares 126.9 129.9 131.1 Earnings per share: Basic $ 4.27 $ 6.42 $ 5.60 Diluted $ 4.21 $ 6.35 $ 5.56 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Changes in the carrying amount of goodwill were (in millions): Architecture & Software Control Products & Solutions Total Balance as of September 30, 2016 $ 414.5 $ 659.4 $ 1,073.9 Acquisition of businesses — 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 Acquisition of business 6.8 — 6.8 Translation (1.7 ) (7.3 ) (9.0 ) Balance as of September 30, 2018 $ 422.3 $ 653.2 $ 1,075.5 |
Other intangible assets | Other intangible assets consist of (in millions): September 30, 2018 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 190.9 $ 118.1 $ 72.8 Customer relationships 112.9 66.2 46.7 Technology 106.8 64.0 42.8 Trademarks 32.0 24.0 8.0 Other 11.2 10.0 1.2 Total amortized intangible assets 453.8 282.3 171.5 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 497.5 $ 282.3 $ 215.2 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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of (in millions): September 30, 2018 2017 Finished goods $ 224.3 $ 218.7 Work in process 180.0 168.0 Raw materials 177.3 172.0 Inventories $ 581.6 $ 558.7 |
Property, net (Tables)
Property, net (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, net | Property consists of (in millions): September 30, 2018 2017 Land $ 5.3 $ 5.2 Buildings and improvements 359.6 351.6 Machinery and equipment 1,164.2 1,145.8 Internal-use software 497.8 461.5 Construction in progress 111.3 131.7 Total 2,138.2 2,095.8 Less accumulated depreciation (1,561.4 ) (1,511.9 ) Property, net $ 576.8 $ 583.9 |
Long-term and Short-term Debt (
Long-term and Short-term Debt (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of (in millions): September 30, 2018 2017 5.65% notes, repaid in December 2017 $ — $ 250.0 2.050% notes, payable in March 2020 294.6 298.7 2.875% notes, payable in March 2025 281.4 296.7 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 (50.8 ) (52.0 ) Total 1,225.2 1,493.4 Less current portion — (250.0 ) Long-term debt $ 1,225.2 $ 1,243.4 |
Schedule of Fair Value of Long-term Debt | The following table presents the carrying amounts and estimated fair values of long-term debt not measured at fair value in the Consolidated Balance Sheet (in millions): September 30, 2018 September 30, 2017 Carrying Value Fair Value Carrying Value Fair Value Current portion of long-term debt $ — $ — $ 250.0 $ 251.6 Long-term debt 1,225.2 1,391.3 1,243.4 1,452.6 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consist of (in millions): September 30, 2018 2017 Unrealized losses on foreign exchange contracts (Note 9) $ 6.2 $ 31.3 Product warranty obligations (Note 7) 27.9 28.5 Taxes other than income taxes 40.9 42.7 Accrued interest 12.3 16.9 Income taxes payable 74.4 32.6 Other 64.9 68.2 Other current liabilities $ 226.6 $ 220.2 |
Product Warranty Obligations (T
Product Warranty Obligations (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Changes in product warranty obligations | Changes in product warranty obligations were (in millions): September 30, 2018 2017 Beginning balance $ 28.5 $ 28.0 Warranties recorded at time of sale 25.5 25.8 Adjustments to pre-existing warranties (2.6 ) (0.2 ) Settlements of warranty claims (23.5 ) (25.1 ) Ending balance $ 27.9 $ 28.5 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | Our investments consist of (in millions): September 30, 2018 2017 Fixed income securities $ 419.0 $ 1,387.6 Equity securities 1,090.0 — Other 69.9 62.7 Total investments 1,578.9 1,450.3 Less short-term investments (290.9 ) (1,124.6 ) Long-term investments $ 1,288.0 $ 325.7 |
Schedule of Available-for-sale Investments | These investments were included in the following line items within the Consolidated Balance Sheet (in millions): September 30, 2018 2017 Short-term investments $ 290.9 $ 1,124.6 Long-term investments 128.1 263.0 Total $ 419.0 $ 1,387.6 Our available-for-sale investments consist of (in millions): September 30, 2018 2017 Certificates of deposit and time deposits $ 169.6 $ 1,005.3 Commercial paper — 20.3 Corporate debt securities 158.4 199.4 Government securities 65.8 116.8 Asset-backed securities 25.2 45.8 Total $ 419.0 $ 1,387.6 |
Schedule of Contractual Maturities of Investments | The table below summarizes the contractual maturities of our investments as of September 30, 2018 (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 $ 290.9 Due in one to five years 128.1 Total $ 419.0 |
Schedule of Fair Value of Investments | Fair values of our investments were (in millions): September 30, 2018 Level 1 Level 2 Level 3 Total Certificates of deposit and time deposits $ — $ 169.6 $ — $ 169.6 Corporate debt securities — 158.4 — 158.4 Government securities 55.7 10.1 — 65.8 Asset-backed securities — 25.2 — 25.2 Equity securities — — 1,090.0 1,090.0 Total $ 55.7 $ 363.3 $ 1,090.0 $ 1,509.0 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 |
Summary of Changes in the Fair Value of Level 3 Investments | The table below sets forth a summary of changes in the fair value of our Level 3 investments (in millions): Equity Securities PTC Share purchase July 19, 2018 $ 954.9 Unrealized gain 135.1 Balance September 30, 2018 $ 1,090.0 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The pre-tax amount of gains (losses) 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): 2018 2017 2016 Forward exchange contracts $ 11.8 $ (16.1 ) $ (6.6 ) |
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): 2018 2017 2016 Sales $ 2.4 $ 0.3 $ (5.5 ) Cost of sales (17.2 ) (2.8 ) 25.5 Selling, general and administrative expenses 1.2 (0.5 ) (0.9 ) Total $ (13.6 ) $ (3.0 ) $ 19.1 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The pre-tax amount of gains (losses) 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): 2018 2017 2016 Forward exchange contracts $ 1.1 $ (16.3 ) $ 2.3 Foreign currency denominated debt — — 0.8 Total $ 1.1 $ (16.3 ) $ 3.1 |
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): 2018 2017 2016 Interest (expense) income $ (19.3 ) $ (24.1 ) $ 14.1 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The pre-tax amount of gains (losses) from forward exchange contracts not designated as hedging instruments recognized in the Consolidated Statement of Operations was (in millions): 2018 2017 2016 Cost of sales $ 1.0 $ (1.8 ) $ 0.9 Other income (expense) (0.1 ) (8.6 ) (11.1 ) Total $ 0.9 $ (10.4 ) $ (10.2 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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, 2018 September 30, 2017 Forward exchange contracts Other current assets $ 15.8 $ 12.4 Forward exchange contracts Other assets 1.9 0.3 Forward exchange contracts Other current liabilities (5.1 ) (19.1 ) Forward exchange contracts Other liabilities (0.7 ) (5.1 ) Interest rate swap contracts Other liabilities (24.0 ) (4.6 ) Total $ (12.1 ) $ (16.1 ) Fair Value (Level 2) Derivatives Not Designated as Hedging Instruments Balance Sheet Location September 30, 2018 September 30, 2017 Forward exchange contracts Other current assets $ 3.4 $ 0.8 Forward exchange contracts Other assets 0.6 — Forward exchange contracts Other current liabilities (1.1 ) (12.2 ) Total $ 2.9 $ (11.4 ) |
Shareowners' Equity (Tables)
Shareowners' Equity (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in outstanding common shares are summarized as follows (in millions): 2018 2017 2016 Beginning balance 128.4 128.5 132.4 Treasury stock purchases (8.3 ) (2.3 ) (4.6 ) Shares delivered under incentive plans 0.9 2.2 0.7 Ending balance 121.0 128.4 128.5 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component for the years ended September 30, 2018 , 2017 and 2016 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, 2015 $ (1,097.1 ) $ (252.4 ) $ 14.9 $ — $ (1,334.6 ) Other comprehensive loss 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 (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 ) Other comprehensive income (loss) before reclassifications 188.4 (48.3 ) 8.7 (2.1 ) 146.7 Amounts reclassified from accumulated other comprehensive loss 80.5 — 10.1 — 90.6 Other comprehensive income (loss) 268.9 (48.3 ) 18.8 (2.1 ) 237.3 Balance as of September 30, 2018 $ (658.1 ) $ (286.0 ) $ 4.4 $ (2.2 ) $ (941.9 ) |
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, 2018 , 2017 and 2016 were (in millions): Year Ended September 30, Affected Line in the Consolidated Statement of Operations 2018 2017 2016 Pension and other postretirement benefit plan adjustments: Amortization of prior service credit $ (4.9 ) $ (9.8 ) $ (14.0 ) (a) Amortization of net actuarial loss 115.1 155.2 126.8 (a) Settlements 0.7 2.8 — (a) 110.9 148.2 112.8 Income before income taxes (30.4 ) (50.6 ) (39.0 ) Income tax provision $ 80.5 $ 97.6 $ 73.8 Net income Net unrealized (gains) losses on cash flow hedges: Forward exchange contracts $ (2.4 ) $ (0.3 ) $ 5.5 Sales Forward exchange contracts 17.2 2.8 (25.5 ) Cost of sales Forward exchange contracts (1.2 ) 0.5 0.9 Selling, general and administrative expenses 13.6 3.0 (19.1 ) Income before income taxes (3.5 ) (1.0 ) 3.7 Income tax provision $ 10.1 $ 2.0 $ (15.4 ) Net income Total reclassifications $ 90.6 $ 99.6 $ 58.4 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, 2018 | |
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: 2018 2017 2016 Average risk-free interest rate 2.14 % 1.85 % 1.76 % Expected dividend yield 1.75 % 2.21 % 2.78 % Expected volatility 22 % 24 % 29 % Expected term (years) 5.0 5.1 5.1 |
Schedule of Share-Based Compensation, Stock Options, Activity | A summary of stock option activity for the year ended September 30, 2018 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, 2017 3,889 $ 108.10 Granted 894 191.87 Exercised (798 ) 102.54 Forfeited (68 ) 158.18 Canceled (3 ) 94.85 Outstanding at September 30, 2018 3,914 127.50 6.9 $ 234.9 Vested or expected to vest at September 30, 2018 2,796 100.84 5.6 242.4 Exercisable at September 30, 2018 2,053 101.20 5.5 177.2 |
Schedule of Nonvested Performance-based Units Activity | A summary of performance share activity for the year ended September 30, 2018 is as follows: Performance Shares (in thousands) Wtd. Avg. Grant Date Share Fair Value Outstanding at October 1, 2017 190 $ 112.64 Granted (1) 40 219.04 Adjustment for performance results achieved (2) 64 190.46 Vested and issued (139 ) 144.07 Forfeited (5 ) 152.93 Outstanding at September 30, 2018 150 143.94 (1) Performance shares granted assuming achievement of performance goals at target. (2) Adjustments were due to the number of shares vested under the fiscal 2015 awards at the end of the three-year performance period ended September 30, 2017 being higher than the target number of shares. |
Schedule of Performance Shares Vested | The following table summarizes information about performance shares vested during the years ended September 30, 2018 , 2017 and 2016 : 2018 2017 2016 Percent payout 187 % 10 % 93 % Shares vested (in thousands) 139 6 67 Total fair value of shares vested (in millions) $ 26.5 $ 0.9 $ 7.1 |
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, 2018 , 2017 and 2016 was $219.04 , $174.37 and $87.64 , respectively, which we determined using a Monte Carlo simulation and the following assumptions: 2018 2017 2016 Average risk-free interest rate 1.88 % 1.35 % 1.21 % Expected dividend yield 1.72 % 2.20 % 2.75 % Expected volatility 22 % 23 % 22 % |
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, 2018 is as follows: Restricted Stock and Restricted Stock Units (in thousands) Wtd. Avg. Grant Date Share Fair Value Outstanding at October 1, 2017 141 $ 118.87 Granted 47 188.41 Vested (38 ) 115.19 Forfeited (4 ) 142.33 Outstanding at September 30, 2018 146 $ 141.35 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost (Income) | The components of net periodic benefit cost (income) are (in millions): Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 Service cost $ 88.9 $ 97.0 $ 88.0 $ 1.3 $ 1.4 $ 1.3 Interest cost 155.3 151.6 169.5 2.4 2.5 3.3 Expected return on plan assets (244.8 ) (225.2 ) (218.3 ) — — — Amortization: Prior service cost (credit) 0.6 (3.7 ) (2.9 ) (5.5 ) (6.1 ) (11.1 ) Net actuarial loss 113.4 152.9 124.5 1.7 2.3 2.3 Special termination benefit — 0.5 0.5 — — — Settlements 0.7 2.8 — — — — Net periodic benefit cost (income) $ 114.1 $ 175.9 $ 161.3 $ (0.1 ) $ 0.1 $ (4.2 ) |
Schedule of Assumptions Used | Significant assumptions used in determining net periodic benefit cost (income) are (in weighted averages): Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 U.S. Plans Discount rate 3.90 % 3.75 % 4.55 % 3.40 % 3.10 % 3.85 % Expected return on plan assets 7.50 % 7.50 % 7.50 % — — — Compensation increase rate 3.50 % 3.50 % 3.75 % — — — Non-U.S. Plans Discount rate 2.30 % 1.77 % 2.67 % 3.20 % 2.80 % 3.60 % Expected return on plan assets 5.19 % 5.12 % 5.21 % — — — Compensation increase rate 2.99 % 2.86 % 3.11 % — — — Significant assumptions used in determining the benefit obligations are (in weighted averages): Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 U.S. Plans Discount rate 4.35 % 3.90 % 4.15 % 3.40 % Compensation increase rate 3.50 % 3.50 % — — Health care cost trend rate (1) — — 6.50 % 6.50 % Non-U.S. Plans Discount rate 2.48 % 2.30 % 3.30 % 3.20 % Compensation increase rate 3.02 % 2.99 % — — Health care cost trend rate (1) — — 4.50 % 4.50 % (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 2020 for U.S. Plans and will not change in 2019 for Non-U.S. Plans. |
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 2018 2017 2018 2017 Benefit obligation at beginning of year $ 4,585.0 $ 4,785.9 $ 77.8 $ 86.9 Service cost 88.9 97.0 1.3 1.4 Interest cost 155.3 151.6 2.4 2.5 Actuarial gains (257.1 ) (221.9 ) (8.5 ) (3.8 ) Plan amendments (0.3 ) (6.9 ) — — Plan participant contributions 3.7 3.9 3.4 3.4 Benefits paid (277.7 ) (251.9 ) (13.5 ) (13.4 ) Special termination benefit — 0.5 — — Settlements (10.4 ) (13.8 ) — — Curtailments (3.5 ) (1.0 ) — — Currency translation and other (24.4 ) 41.6 (0.5 ) 0.8 Benefit obligation at end of year 4,259.5 4,585.0 62.4 77.8 Plan assets at beginning of year 3,788.3 3,447.9 — — Actual return on plan assets 220.6 315.5 — — Company contributions 50.3 254.9 10.1 10.0 Plan participant contributions 3.7 3.9 3.4 3.4 Benefits paid (277.7 ) (251.9 ) (13.5 ) (13.4 ) Settlements (10.4 ) (13.8 ) — — Currency translation and other (20.0 ) 31.8 — — Plan assets at end of year 3,754.8 3,788.3 — — Funded status of plans $ (504.7 ) $ (796.7 ) $ (62.4 ) $ (77.8 ) |
Schedule of Amounts Recognized in Balance Sheet | Net amount on balance sheet consists of: Other assets $ 30.6 $ 10.6 $ — $ — Compensation and benefits (12.3 ) (11.7 ) (10.1 ) (9.5 ) Retirement benefits (523.0 ) (795.6 ) (52.3 ) (68.3 ) Net amount on balance sheet $ (504.7 ) $ (796.7 ) $ (62.4 ) $ (77.8 ) |
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, 2018 and 2017 which have not yet been recognized in net periodic benefit cost are as follows (in millions): Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Prior service cost (credit) $ 4.3 $ 5.3 $ (8.2 ) $ (12.2 ) Net actuarial loss 657.6 921.9 4.4 12.0 Total $ 661.9 $ 927.2 $ (3.8 ) $ (0.2 ) |
Schedule of Accumulated and Projected Benefit Obligations | Information regarding our pension plans with projected benefit obligations in excess of the fair value of plan assets (underfunded plans) at September 30, 2018 and 2017 are as follows (in millions): 2018 2017 Projected benefit obligation $ 3,755.5 $ 4,280.9 Fair value of plan assets 3,220.2 3,473.6 Information regarding our pension plans with accumulated benefit obligations in excess of the fair value of plan assets (underfunded plans) at September 30, 2018 and 2017 are as follows (in millions): 2018 2017 Accumulated benefit obligation $ 679.7 $ 3,956.8 Fair value of plan assets 392.9 3,473.6 |
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 2019 $ 288.9 $ 10.3 2020 268.5 6.8 2021 282.1 5.5 2022 301.7 5.1 2023 278.4 4.8 2024 – 2028 1,417.0 19.8 |
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 2018 2017 Equity securities 40% – 65% 55% 53% 50% Debt securities 30% – 50% 39% 39% 42% Other 0% – 15% 6% 8% 8% |
Schedule of Allocation of Plan Assets | The following table presents our pension plans’ investments measured at fair value as of September 30, 2018 : Level 1 Level 2 Level 3 Total U.S. Plans Cash and cash equivalents $ 2.0 $ — $ — $ 2.0 Equity securities: Mutual funds 222.1 — — 222.1 Common stock 964.7 — — 964.7 Common collective trusts — 422.2 — 422.2 Fixed income securities: Corporate debt — 627.7 — 627.7 Government securities 242.9 105.8 — 348.7 Common collective trusts — 141.4 — 141.4 Other types of investments: Insurance contracts — — 0.9 0.9 Total U.S. Plans investments in fair value hierarchy $ 1,431.7 $ 1,297.1 $ 0.9 2,729.7 U.S. Plans investments measured at NAV: Private equity 36.5 Alternative equity 61.1 Total U.S. Plans investments 2,827.3 Non-U.S. Plans Cash and cash equivalents $ 12.8 $ — $ — 12.8 Equity securities: Common stock 59.2 — — 59.2 Common collective trusts — 320.7 — 320.7 Fixed income securities: Corporate debt — 33.8 — 33.8 Government securities 1.1 15.5 — 16.6 Common collective trusts — 310.4 — 310.4 Other types of investments: Real estate funds — 80.5 — 80.5 Insurance contracts — — 79.1 79.1 Other — — 4.6 4.6 Total Non-U.S. Plans investments in fair value hierarchy $ 73.1 $ 760.9 $ 83.7 917.7 Non-U.S. Plans investments measured at NAV: Real estate funds 9.8 Total Non-U.S. Plans investments 927.5 Total investments measured at fair value $ 3,754.8 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 |
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, 2018 : Balance Realized Gains (Losses) Unrealized Gains (Losses) Purchases, Sales, Issuances, and Settlements, Net Balance September 30, 2018 U.S. Plans Insurance contracts $ 0.9 $ — $ — $ — $ 0.9 Non-U.S. Plans Insurance contracts 71.5 — (0.4 ) 8.0 79.1 Other 4.8 — (0.2 ) — 4.6 $ 77.2 $ — $ (0.6 ) $ 8.0 $ 84.6 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 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 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Components of other income (expense) | The components of other income (expense) are (in millions): 2018 2017 2016 Gain on sale of business $ — $ 60.8 $ — Change in fair value of investments 90.0 — — Interest income 24.4 19.6 12.7 Royalty income 9.7 8.9 2.9 Legacy product liability and environmental benefit (charges) 2.6 (8.3 ) (12.7 ) Other 3.9 (0.1 ) 3.4 Other income (expense) $ 130.6 $ 80.9 $ 6.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Selected income tax data (in millions): 2018 2017 2016 Components of income before income taxes: United States $ 721.6 $ 547.2 $ 512.1 Non-United States 609.2 490.2 431.0 Total $ 1,330.8 $ 1,037.4 $ 943.1 |
Schedule of Components of Income Tax Expense (Benefit) | Components of the income tax provision: Current: United States $ 475.3 $ 67.3 $ 175.9 Non-United States 131.4 109.9 91.7 State and local 18.1 0.7 16.3 Total current 624.8 177.9 283.9 Deferred: United States 118.6 44.6 (53.7 ) Non-United States 48.0 (14.1 ) (8.8 ) State and local 3.9 3.3 (8.0 ) Total deferred 170.5 33.8 (70.5 ) Income tax provision $ 795.3 $ 211.7 $ 213.4 Total income taxes paid $ 222.9 $ 211.9 $ 299.8 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation between the U.S. federal statutory rate and our effective tax rate was: 2018 2017 2016 Statutory tax rate 24.5 % 35.0 % 35.0 % State and local income taxes 1.0 0.7 0.6 Non-United States taxes (4.4 ) (9.3 ) (8.6 ) Tax effect of foreign dividends 4.2 0.5 0.1 Impact of the Tax Act 36.6 — — Foreign currency transaction loss — (1.9 ) (0.8 ) Share-based compensation (1.3 ) (2.8 ) — Research and development tax credit (1.3 ) (0.6 ) (2.0 ) Other 0.5 (1.2 ) (1.7 ) Effective income tax rate 59.8 % 20.4 % 22.6 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to our net deferred income tax assets (liabilities) were (in millions): 2018 2017 Deferred income tax assets: Compensation and benefits $ 6.5 $ 18.8 Inventory 11.5 20.2 Returns, rebates and incentives 34.0 45.9 Retirement benefits 141.5 305.5 Environmental remediation and other site-related costs 20.7 33.4 Share-based compensation 19.6 32.4 Other accruals and reserves 49.7 71.3 Net operating loss carryforwards 19.6 20.4 Tax credit carryforwards 17.9 15.3 Capital loss carryforwards 10.0 10.3 Other 4.6 11.1 Subtotal 335.6 584.6 Valuation allowance (27.0 ) (18.6 ) Net deferred income tax assets 308.6 566.0 Deferred income tax liabilities: Property (54.7 ) (74.0 ) Intangible assets (25.3 ) (45.9 ) Investments (21.7 ) — Unremitted earnings of foreign subsidiaries (22.7 ) — Other (4.6 ) (2.5 ) Deferred income tax liabilities (129.0 ) (122.4 ) Total net deferred income tax assets $ 179.6 $ 443.6 |
Schedule of Tax Attributes and Valuation Allowances | Tax attributes and related valuation allowances at September 30, 2018 were (in millions): Tax attributes and related valuation allowances Tax Benefit Amount Valuation Allowance Carryforward Non-United States net operating loss carryforward $ 7.0 $ 7.0 2019 - 2024 Non-United States net operating loss carryforward 3.3 3.3 Indefinite Non-United States capital loss carryforward 10.0 10.0 Indefinite United States net operating loss carryforward 0.6 — 2019 - 2033 United States tax credit carryforward 0.8 — 2019 - 2037 State and local net operating loss carryforward 8.7 1.4 2019 - 2037 State tax credit carryforward 17.1 0.7 2019 - 2033 Subtotal 47.5 22.4 Other deferred tax assets 4.6 4.6 Indefinite Total $ 52.1 $ 27.0 |
Schedule of Gross Unrecognized Tax Benefits | A reconciliation of our gross unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2018 2017 2016 Gross unrecognized tax benefits balance at beginning of year $ 31.1 $ 32.4 $ 43.9 Additions based on tax positions related to the current year — 1.9 2.3 Additions based on tax positions related to prior years 3.0 10.8 14.9 Reductions based on tax positions related to prior years (1.1 ) (0.1 ) — Reductions related to settlements with taxing authorities (11.3 ) (7.7 ) (27.1 ) Reductions related to lapses of statute of limitations (1.6 ) (6.3 ) (1.6 ) Effect of foreign currency translation — 0.1 — Gross unrecognized tax benefits balance at end of year $ 20.1 $ 31.1 $ 32.4 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 are as follows: 2018 2017 Environmental remediation costs $ 61.6 $ 67.6 Conditional asset retirement obligations 21.9 21.2 Indemnification liabilities 9.5 12.0 Total recorded liabilities 93.0 100.8 Recorded probable expected recoveries (14.1 ) (17.8 ) Net recorded liabilities $ 78.9 $ 83.0 |
Environmental Remediation Cost Liabilities and Related Expected Recoveries | Environmental remediation cost liabilities and related expected recoveries are as follows (in millions): 2018 Other current liabilities $ 7.8 Other liabilities 53.8 Total recorded environmental remediation costs (1) 61.6 Receivables (1.4 ) Other assets (8.0 ) Total recorded probable expected recoveries (9.4 ) Net environmental remediation costs $ 52.2 (1) Includes $45.7 million related to discounted ongoing operating and maintenance expenditures. |
Schedule of Asset Retirement Obligations | Conditional asset retirement obligations and related expected recoveries are as follows (in millions): 2018 2017 Other current liabilities $ 0.6 $ 0.7 Other liabilities 21.3 20.5 Total recorded conditional asset retirement obligations 21.9 21.2 Receivables — (0.1 ) Other assets (0.3 ) (0.2 ) Total recorded probable expected recoveries (0.3 ) (0.3 ) Net conditional asset retirement obligations $ 21.6 $ 20.9 |
Indemnification Liabilities and Expected Recoveries | Indemnification liabilities and related expected recoveries are as follows (in millions): 2018 2017 Other current liabilities $ 1.6 $ 2.5 Other liabilities 7.9 9.5 Total recorded indemnification liabilities 9.5 12.0 Receivables (0.8 ) (1.6 ) Other assets (3.6 ) (4.6 ) Total recorded probable expected recoveries (4.4 ) (6.2 ) Net indemnification liabilities $ 5.1 $ 5.8 |
Leases of Lessee Disclosure | As of September 30, 2018 , minimum future rental commitments under operating leases having noncancelable lease terms in excess of one year are payable as follows (in millions): 2019 $ 78.1 2020 68.9 2021 54.6 2022 40.9 2023 30.2 Beyond 2023 68.4 Total $ 341.1 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The following tables reflect the sales and operating results of our reportable segments (in millions): 2018 2017 2016 Sales: Architecture & Software $ 3,098.2 $ 2,899.3 $ 2,635.2 Control Products & Solutions 3,567.8 3,412.0 3,244.3 Total $ 6,666.0 $ 6,311.3 $ 5,879.5 Segment operating earnings: Architecture & Software $ 901.3 $ 781.5 $ 695.0 Control Products & Solutions 541.3 451.6 493.7 Total 1,442.6 1,233.1 1,188.7 Purchase accounting depreciation and amortization (17.4 ) (21.4 ) (18.4 ) General corporate-net (75.6 ) (76.3 ) (79.7 ) Non-operating pension costs (24.6 ) (82.6 ) (76.2 ) Gain on sale of business — 60.8 — Costs related to unsolicited Emerson proposals (11.2 ) — — Gain on investments 123.7 — — Valuation adjustment pending registration of PTC Shares (33.7 ) — — Interest expense (73.0 ) (76.2 ) (71.3 ) Income before income taxes $ 1,330.8 $ 1,037.4 $ 943.1 |
Components of Identifiable Assets, Depreciation and Amortization, and Capital Expenditures for Property | The following tables summarize the identifiable assets at September 30 , 2018 , 2017 and 2016 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): 2018 2017 2016 Identifiable assets: Architecture & Software $ 1,788.9 $ 2,482.8 $ 2,054.3 Control Products & Solutions 2,094.9 2,078.2 2,034.6 Corporate 2,378.2 2,600.7 3,012.3 Total $ 6,262.0 $ 7,161.7 $ 7,101.2 Depreciation and amortization: Architecture & Software $ 72.5 $ 69.3 $ 75.0 Control Products & Solutions 72.4 75.0 77.3 Corporate 2.3 3.2 1.5 Total 147.2 147.5 153.8 Purchase accounting depreciation and amortization 17.4 21.4 18.4 Total $ 164.6 $ 168.9 $ 172.2 Capital expenditures for property: Architecture & Software $ 29.4 $ 30.0 $ 24.7 Control Products & Solutions 38.5 42.1 41.5 Corporate 57.6 69.6 50.7 Total $ 125.5 $ 141.7 $ 116.9 |
Schedule of Sales and Property by Geographic Region | 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 2018 2017 2016 2018 2017 2016 United States $ 3,602.6 $ 3,458.4 $ 3,213.4 $ 437.6 $ 443.4 $ 445.4 Canada 361.5 343.4 316.4 12.6 8.8 7.3 Europe, Middle East and Africa 1,286.8 1,193.7 1,147.2 53.3 52.5 49.9 Asia Pacific 933.3 866.4 764.4 42.9 40.0 37.4 Latin America 481.8 449.4 438.1 30.4 39.2 38.3 Total $ 6,666.0 $ 6,311.3 $ 5,879.5 $ 576.8 $ 583.9 $ 578.3 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2018 Quarters (in millions, except per share amounts) First Second Third Fourth 2018 Sales $ 1,586.6 $ 1,651.2 $ 1,698.7 $ 1,729.5 $ 6,666.0 Gross profit 697.1 700.8 741.7 732.6 2,872.2 Income before income taxes 297.8 299.6 251.7 481.7 1,330.8 Net (loss) income (236.4 ) 227.4 198.6 345.9 535.5 (Loss) Earnings per share: Basic (1.84 ) 1.79 1.60 2.84 4.27 Diluted (1.84 ) 1.77 1.58 2.80 4.21 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 Note: The sum of the quarterly per share amounts will not necessarily equal the annual per share amounts presented. |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies - Revenue Recognition, Receivables, Research and Development Expenses, and Recently Issued Accounting Pronouncements (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
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 | $ 17.1 | $ 24.9 | ||
Allowance for certain customer returns, rebates and incentives | 8.7 | 11.9 | ||
Research and development costs | $ 371.8 | $ 348.2 | $ 319.3 | |
Antidilutive share-based compensation awards (in shares) | 0.9 | 0.7 | 2.2 | |
Adjustment to retained earnings due to adoption of new accounting guidance | $ 6,198.1 | $ 6,103.4 | ||
Pro Forma | Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Effect from the adoption of new standard | $ 23.8 | $ 77.6 | $ 67.8 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Scenario, Forecast | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to retained earnings due to adoption of new accounting guidance | $ 10 |
Basis of Presentation and Acc_5
Basis of Presentation and Accounting Policies - Reconciliation of Baisc and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciled Basic and Diluted EPS | |||||||||||
Net income | $ 345.9 | $ 198.6 | $ 227.4 | $ (236.4) | $ 204.6 | $ 216.9 | $ 189.5 | $ 214.7 | $ 535.5 | $ 825.7 | $ 729.7 |
Less: Allocation to participating securities | (0.5) | (0.9) | (0.7) | ||||||||
Net income available to common shareowners | $ 535 | $ 824.8 | $ 729 | ||||||||
Basic weighted average outstanding shares (in shares) | 125.4 | 128.4 | 130.2 | ||||||||
Effect of dilutive securities | |||||||||||
Stock options (in shares) | 1.3 | 1.2 | 0.9 | ||||||||
Performance shares (in shares) | 0.2 | 0.3 | 0 | ||||||||
Diluted weighted average outstanding shares (in shares) | 126.9 | 129.9 | 131.1 | ||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 2.84 | $ 1.60 | $ 1.79 | $ (1.84) | $ 1.59 | $ 1.69 | $ 1.47 | $ 1.67 | $ 4.27 | $ 6.42 | $ 5.60 |
Diluted (in dollars per share) | $ 2.80 | $ 1.58 | $ 1.77 | $ (1.84) | $ 1.57 | $ 1.67 | $ 1.45 | $ 1.65 | $ 4.21 | $ 6.35 | $ 5.56 |
Basis of Presentation and Acc_6
Basis of Presentation and Accounting Policies - Property (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Capital expenditures in accounts payable or other current liabilities at year end | $ 43.2 | $ 29.6 | $ 29.9 |
Minimum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum | Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum | Software Development | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Maximum | Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Maximum | Software Development | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years |
Basis of Presentation and Acc_7
Basis of Presentation and Accounting Policies - Intangible Assets (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Minimum | Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 3 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 8 years |
Minimum | Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 5 years |
Minimum | Other Intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 5 years |
Maximum | Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 15 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 20 years |
Maximum | Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 17 years |
Maximum | Other Intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 30 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill | ||
Beginning balance | $ 1,077.7 | $ 1,073.9 |
Acquisition of businesses | 6.8 | 0.8 |
Divestiture of business (Note 13) | (10.3) | |
Translation | (9) | 13.3 |
Ending balance | 1,075.5 | 1,077.7 |
Architecture & Software | ||
Goodwill | ||
Beginning balance | 417.2 | 414.5 |
Acquisition of businesses | 6.8 | 0 |
Divestiture of business (Note 13) | 0 | |
Translation | (1.7) | 2.7 |
Ending balance | 422.3 | 417.2 |
Control Products & Solutions | ||
Goodwill | ||
Beginning balance | 660.5 | 659.4 |
Acquisition of businesses | 0 | 0.8 |
Divestiture of business (Note 13) | (10.3) | |
Translation | (7.3) | 10.6 |
Ending balance | $ 653.2 | $ 660.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill acquired | $ 6.8 | $ 0.8 | |
Intangible assets acquired during year | 3 | ||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 453.8 | 457.8 | |
Amortized intangible assets, accumulated amortization | 282.3 | 263.5 | |
Amortized intangible assets, net | 171.5 | 194.3 | |
Intangible asset amortization expense | 28.2 | 30.2 | $ 28.9 |
Allen-Bradley® trademark not subject to amortization | 43.7 | 43.7 | |
Total other intangible assets, carrying amount | 497.5 | 501.5 | |
Total other intangible assets, net | 215.2 | 238 | |
Goodwill and Other Intangible Assets (Textuals) [Abstract] | |||
Estimated amortization expense in 2019 | 25.4 | ||
Estimated amortization expense in 2020 | 22.6 | ||
Estimated amortization expense in 2021 | 21.6 | ||
Estimated amortization expense in 2022 | 18.9 | ||
Estimated amortization expense in 2023 | 17.7 | ||
Computer software products | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 190.9 | 194.8 | |
Amortized intangible assets, accumulated amortization | 118.1 | 113.2 | |
Amortized intangible assets, net | 72.8 | 81.6 | |
Intangible asset amortization expense | 11.8 | 9.8 | $ 11.5 |
Customer relationships | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 112.9 | 114.5 | |
Amortized intangible assets, accumulated amortization | 66.2 | 61.5 | |
Amortized intangible assets, net | 46.7 | 53 | |
Technology | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 106.8 | 104.8 | |
Amortized intangible assets, accumulated amortization | 64 | 57.9 | |
Amortized intangible assets, net | 42.8 | 46.9 | |
Trademarks | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 32 | 32.3 | |
Amortized intangible assets, accumulated amortization | 24 | 21.1 | |
Amortized intangible assets, net | 8 | 11.2 | |
Other | |||
Other intangible assets | |||
Amortized intangible assets, carrying amount | 11.2 | 11.4 | |
Amortized intangible assets, accumulated amortization | 10 | 9.8 | |
Amortized intangible assets, net | $ 1.2 | $ 1.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Inventories | ||
Finished goods | $ 224.3 | $ 218.7 |
Work in process | 180 | 168 |
Raw materials | 177.3 | 172 |
Inventories | $ 581.6 | $ 558.7 |
Property, net (Details)
Property, net (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Property, net | |||
Land | $ 5.3 | $ 5.2 | |
Buildings and improvements | 359.6 | 351.6 | |
Machinery and equipment | 1,164.2 | 1,145.8 | |
Internal-use software | 497.8 | 461.5 | |
Construction in progress | 111.3 | 131.7 | |
Total | 2,138.2 | 2,095.8 | |
Less accumulated depreciation | (1,561.4) | (1,511.9) | |
Property, net | $ 576.8 | $ 583.9 | $ 578.3 |
Long-term and Short-term Debt -
Long-term and Short-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Long-term debt | ||
Unamortized discount and other | $ (50.8) | $ (52) |
Total | 1,225.2 | 1,493.4 |
Less current portion | 0 | (250) |
Long-term debt | 1,225.2 | 1,243.4 |
5.65% notes, repaid in December 2017 | ||
Long-term debt | ||
Debt instruments | 0 | $ 250 |
Stated interest rate | 5.65% | |
2.050% notes, payable in March 2020 | ||
Long-term debt | ||
Debt instruments | $ 294.6 | $ 298.7 |
Stated interest rate | 2.05% | |
2.875% notes, payable in March 2025 | ||
Long-term debt | ||
Debt instruments | $ 281.4 | 296.7 |
Stated interest rate | 2.875% | |
6.70% debentures, payable in January 2028 | ||
Long-term debt | ||
Debt instruments | $ 250 | 250 |
Stated interest rate | 6.70% | |
6.25% debentures, payable in December 2037 | ||
Long-term debt | ||
Debt instruments | $ 250 | 250 |
Stated interest rate | 6.25% | |
5.20% debentures, payable in January 2098 | ||
Long-term debt | ||
Debt instruments | $ 200 | $ 200 |
Stated interest rate | 5.20% |
Long-term and Short-term Debt_2
Long-term and Short-term Debt - Long-term and Short-term Debt (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Feb. 28, 2015USD ($) | |
Long-term debt | |||||
Fair value of interest rate swap contracts | $ 24,000,000 | ||||
Revolving credit facility | |||||
Interest payments | 75,500,000 | $ 74,200,000 | $ 69,200,000 | ||
Short-term Debt | |||||
Commercial paper borrowings outstanding | $ 550,000,000 | $ 350,000,000 | |||
Weighted average interest rate of commercial paper outstanding | 2.27% | 1.26% | |||
Aggregate Principal Amount of Notes Issues | |||||
Long-term debt | |||||
Long-term debt issued | $ 600,000,000 | ||||
2.050% notes, payable in March 2020 | |||||
Long-term debt | |||||
Effective floating interest rate | 2.759% | ||||
2.875% notes, payable in March 2025 | |||||
Long-term debt | |||||
Effective floating interest rate | 3.169% | ||||
Line of Credit | |||||
Revolving credit facility | |||||
Borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||
Option to increase borrowing capacity of credit facility | 350,000,000 | ||||
Foreign Line of Credit | |||||
Revolving credit facility | |||||
Borrowing capacity | $ 156,000,000 | ||||
Maximum | Line of Credit | |||||
Revolving credit facility | |||||
Maximum debt to total capital ratio required by debt covenants | 0.60 | ||||
Maximum ratio of EBITDA to interest expense under credit facility | 3 |
Long-term and Short-term Debt_3
Long-term and Short-term Debt - Schedule of Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Carrying Value | ||
Current portion of long-term debt | $ 0 | $ 250 |
Long-term debt | 1,225.2 | 1,243.4 |
Carrying Value | ||
Carrying Value | ||
Current portion of long-term debt | 0 | 250 |
Long-term debt | 1,225.2 | 1,243.4 |
Fair Value | ||
Fair Value | ||
Current portion of long-term debt | 0 | 251.6 |
Long-term debt | $ 1,391.3 | $ 1,452.6 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Other current liabilities | |||
Unrealized losses on foreign exchange contracts (Note 9) | $ 6.2 | $ 31.3 | |
Product warranty obligations (Note 7) | 27.9 | 28.5 | $ 28 |
Taxes other than income taxes | 40.9 | 42.7 | |
Accrued interest | 12.3 | 16.9 | |
Income taxes payable | 74.4 | 32.6 | |
Other | 64.9 | 68.2 | |
Other current liabilities | $ 226.6 | $ 220.2 |
Product Warranty Obligations (D
Product Warranty Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Product Warranties Disclosures [Abstract] | ||
Product warranty period | 12 months | |
Changes in product warranty obligations | ||
Beginning balance | $ 28.5 | $ 28 |
Warranties recorded at time of sale | 25.5 | 25.8 |
Adjustments to pre-existing warranties | (2.6) | (0.2) |
Settlements of warranty claims | (23.5) | (25.1) |
Ending balance | $ 27.9 | $ 28.5 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jul. 19, 2018 | Sep. 30, 2017 |
Investments, Debt and Equity Securities [Abstract] | |||
Fixed income securities | $ 419 | $ 1,387.6 | |
Equity securities | 1,090 | $ 954.9 | 0 |
Other | 69.9 | 62.7 | |
Total investments | 1,578.9 | 1,450.3 | |
Less short-term investments | (290.9) | (1,124.6) | |
Long-term investments | $ 1,288 | $ 325.7 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Investments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Investments | $ 419 | $ 1,387.6 |
Certificates of deposit and time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Investments | 169.6 | 1,005.3 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Investments | 0 | 20.3 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Investments | 158.4 | 199.4 |
Government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Investments | 65.8 | 116.8 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Investments | $ 25.2 | $ 45.8 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | Jul. 19, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Pre-tax gross unrealized losses on available-for-sale investments | $ 2,700,000 | ||||
Purchases of investments, amount outstanding | $ 0 | 0 | |||
Trading investment, fair value | $ 954,900,000 | 1,090,000,000 | 1,090,000,000 | $ 0 | |
Change in fair value of investments | 90,000,000 | 0 | $ 0 | ||
Gain on investments | 123,700,000 | 0 | 0 | ||
Trading investment, unrealized gain (loss), valuation adjustment | 33,700,000 | $ 0 | $ 0 | ||
PTC | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of shares purchased (in shares) | 10,582,010 | ||||
Purchase of stock price (usd per share) | $ 94.50 | ||||
Consideration paid to purchase stock | $ 1,000,000,000 | ||||
Entity specific transfer restrictions, period | 3 years | ||||
Sale of stock, subsequent trading period | 90 days | ||||
Trading investment, fair value | 1,090,000,000 | 1,090,000,000 | |||
Change in fair value of investments | $ (45,100,000) | 135,100,000 | 90,000,000 | ||
Gain on investments | 26,800,000 | 96,900,000 | 123,700,000 | ||
Trading investment, unrealized gain (loss), valuation adjustment | $ 71,900,000 | $ 38,200,000 | $ 33,700,000 | ||
PTC | Minimum | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Percentage of total outstanding common stock, that can be traded in future periods | 1.00% | ||||
PTC | Maximum | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Percentage of total outstanding common stock, that can be traded in future periods | 2.00% |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than one year | $ 290.9 | |
Due in one to five years | 128.1 | |
Total | $ 419 | $ 1,387.6 |
Investments - Balance Sheet Cla
Investments - Balance Sheet Classification of Available-for-sale Securities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Short-term investments | $ 290.9 | $ 1,124.6 |
Long-term investments | 128.1 | 263 |
Total | $ 419 | $ 1,387.6 |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jul. 19, 2018 | Sep. 30, 2017 |
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | $ 419 | $ 1,387.6 | |
Equity securities | 1,090 | $ 954.9 | 0 |
Total investments | 1,578.9 | 1,450.3 | |
Certificates of deposit and time deposits | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 169.6 | 1,005.3 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | 20.3 | |
Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 158.4 | 199.4 | |
Government securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 65.8 | 116.8 | |
Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 25.2 | 45.8 | |
Fair Value, Measurements, Recurring | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities | 1,090 | ||
Total investments | 1,509 | 1,387.6 | |
Fair Value, Measurements, Recurring | Certificates of deposit and time deposits | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 169.6 | 1,005.3 | |
Fair Value, Measurements, Recurring | Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 20.3 | ||
Fair Value, Measurements, Recurring | Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 158.4 | 199.4 | |
Fair Value, Measurements, Recurring | Government securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 65.8 | 116.8 | |
Fair Value, Measurements, Recurring | Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 25.2 | 45.8 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities | 0 | ||
Total investments | 55.7 | 98.9 | |
Fair Value, Measurements, Recurring | Level 1 | Certificates of deposit and time deposits | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Government securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 55.7 | 98.9 | |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities | 0 | ||
Total investments | 363.3 | 1,288.7 | |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit and time deposits | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 169.6 | 1,005.3 | |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 20.3 | ||
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 158.4 | 199.4 | |
Fair Value, Measurements, Recurring | Level 2 | Government securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 10.1 | 17.9 | |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 25.2 | 45.8 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities | 1,090 | ||
Total investments | 1,090 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Certificates of deposit and time deposits | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Government securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | $ 0 | $ 0 |
Investments - Schedule of Fai_2
Investments - Schedule of Fair Value of Level 3 Investments (Details) $ in Millions | 2 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
PTC Share purchase July 19, 2018 | $ 954.9 |
Unrealized gain | 135.1 |
Balance September 30, 2018 | $ 1,090 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Feb. 28, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Maximum length of time hedged in cash flow hedge | 2 years | |
Net unrealized gains on cash flow hedges to be reclassified into earnings during the next 12 months | $ 5,700,000 | |
Forward exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount | 1,030,400,000 | |
Forward exchange contracts | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount | 754,700,000 | |
Forward exchange contracts | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount | 81,000,000 | |
Forward exchange contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount | 194,700,000 | |
Interest rate swap contracts | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount | $ 600,000,000 | |
Notes Payable Two and Three Total | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term debt | $ 600,000,000 |
Derivative Instruments - Pre-ta
Derivative Instruments - Pre-tax Amount of Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] (Deprecated 2018-01-31) | |||
Pre-tax (losses) gains recorded in other comprehensive income related to cash flow hedges | $ 11.8 | $ (16.1) | $ (6.6) |
Pre-tax gains (losses) recorded in other comprehensive income related to net investment hedges | 1.1 | (16.3) | 3.1 |
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 | (13.6) | (3) | 19.1 |
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 | 0.9 | (10.4) | (10.2) |
Foreign currency denominated debt | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] (Deprecated 2018-01-31) | |||
Pre-tax gains (losses) recorded in other comprehensive income related to net investment hedges | 0 | 0 | 0.8 |
Forward exchange contracts | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] (Deprecated 2018-01-31) | |||
Pre-tax gains (losses) recorded in other comprehensive income related to net investment hedges | 1.1 | (16.3) | 2.3 |
Sales | |||
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 | 2.4 | 0.3 | (5.5) |
Cost of sales | |||
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 | (17.2) | (2.8) | 25.5 |
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 | (1.8) | 0.9 |
Selling, general and administrative expenses | |||
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 | 1.2 | (0.5) | (0.9) |
Interest (expense) income | |||
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 | (19.3) | (24.1) | 14.1 |
Other income (expense) | |||
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 | $ (0.1) | $ (8.6) | $ (11.1) |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Fair Value of Derivatives (Details) - Level 2 - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Assets and liabilities measured at fair value on a recurring basis | ||
Net derivative asset / (liability) designated as hedging instruments | $ (12.1) | $ (16.1) |
Net derivative asset / (liability) not designated as hedging instruments | 2.9 | (11.4) |
Forward exchange contracts | Other current assets | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Forward exchange contracts designated as hedging instruments | 15.8 | 12.4 |
Forward exchange contracts not designated as hedging instruments | 3.4 | 0.8 |
Forward exchange contracts | Other assets | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Forward exchange contracts designated as hedging instruments | 1.9 | 0.3 |
Forward exchange contracts not designated as hedging instruments | 0.6 | 0 |
Forward exchange contracts | Other current liabilities | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Forward exchange contracts designated as hedging instruments | (5.1) | (19.1) |
Forward exchange contracts not designated as hedging instruments | (1.1) | (12.2) |
Forward exchange contracts | Other liabilities | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Forward exchange contracts designated as hedging instruments | (0.7) | (5.1) |
Interest rate swap contracts | Other liabilities | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swap contracts designated as hedging instruments | $ (24) | $ (4.6) |
Shareowners' Equity - Common St
Shareowners' Equity - Common Stock (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Shareowners' Equity (Textuals) [Abstract] | |||
Common stock, authorized (in shares) | 1,000,000,000 | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, authorized (in shares) | 25,000,000 | ||
Common stock reserved for various incentive plans | 9,600,000 | ||
Outstanding purchase of common stock recorded in accounts payable | $ 18,300,000 | $ 0 | |
Changes in outstanding common shares | |||
Beginning balance (in shares) | 128,400,000 | 128,500,000 | 132,400,000 |
Treasury stock purchases (in shares) | (8,300,000) | (2,300,000) | (4,600,000) |
Shares delivered under incentive plans (in shares) | 900,000 | 2,200,000 | 700,000 |
Ending balance (in shares) | 121,000,000 | 128,400,000 | 128,500,000 |
Shareowners' Equity - Schedule
Shareowners' Equity - Schedule of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,663.6 | $ 1,990.1 | |
Other comprehensive loss before reclassifications | 146.7 | 260 | $ (262.6) |
Amounts reclassified from accumulated other comprehensive loss | 90.6 | 99.6 | 58.4 |
Other comprehensive income (loss) | 237.3 | 359.6 | (204.2) |
Ending balance | 1,617.5 | 2,663.6 | 1,990.1 |
Pension and other postretirement benefit plan adjustments, net of tax (Note 12) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (927) | (1,239.8) | (1,097.1) |
Other comprehensive loss before reclassifications | 188.4 | 215.2 | (216.5) |
Amounts reclassified from accumulated other comprehensive loss | 80.5 | 97.6 | 73.8 |
Other comprehensive income (loss) | 268.9 | 312.8 | (142.7) |
Ending balance | (658.1) | (927) | (1,239.8) |
Accumulated currency translation adjustments, net of tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (237.7) | (294.9) | (252.4) |
Other comprehensive loss before reclassifications | (48.3) | 57.2 | (42.5) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss) | (48.3) | 57.2 | (42.5) |
Ending balance | (286) | (237.7) | (294.9) |
Net unrealized gains (losses) on cash flow hedges, net of tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (14.4) | (4.1) | 14.9 |
Other comprehensive loss before reclassifications | 8.7 | (12.3) | (3.6) |
Amounts reclassified from accumulated other comprehensive loss | 10.1 | 2 | (15.4) |
Other comprehensive income (loss) | 18.8 | (10.3) | (19) |
Ending balance | 4.4 | (14.4) | (4.1) |
Net unrealized gains (losses) on available-for-sale investments, net of tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (0.1) | 0 | 0 |
Other comprehensive loss before reclassifications | (2.1) | (0.1) | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss) | (2.1) | (0.1) | 0 |
Ending balance | (2.2) | (0.1) | 0 |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,179.2) | (1,538.8) | (1,334.6) |
Other comprehensive income (loss) | 237.3 | 359.6 | (204.2) |
Ending balance | $ (941.9) | $ (1,179.2) | $ (1,538.8) |
Shareowners' Equity - Schedul_2
Shareowners' Equity - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Sales | $ (1,729.5) | $ (1,698.7) | $ (1,651.2) | $ (1,586.6) | $ (1,667.5) | $ (1,599.2) | $ (1,554.3) | $ (1,490.3) | $ (6,666) | $ (6,311.3) | $ (5,879.5) |
Cost of sales | (3,793.8) | (3,687.1) | (3,404) | ||||||||
Selling, general and administrative expenses | (1,599) | (1,591.5) | (1,467.4) | ||||||||
Income before income taxes | 1,330.8 | 1,037.4 | 943.1 | ||||||||
Income tax provision | (795.3) | (211.7) | (213.4) | ||||||||
Net income | $ 345.9 | $ 198.6 | $ 227.4 | $ (236.4) | $ 204.6 | $ 216.9 | $ 189.5 | $ 214.7 | 535.5 | 825.7 | 729.7 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | 90.6 | 99.6 | 58.4 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales and selling, general and administrative expenses | (4.9) | (9.8) | (14) | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales and selling, general and administrative expenses | 115.1 | 155.2 | 126.8 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Settlements Attributable To Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales and selling, general and administrative expenses | 0.7 | 2.8 | 0 | ||||||||
Pension and other postretirement benefit plan adjustments, net of tax (Note 12) | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | 110.9 | 148.2 | 112.8 | ||||||||
Income tax provision | (30.4) | (50.6) | (39) | ||||||||
Net income | 80.5 | 97.6 | 73.8 | ||||||||
Net unrealized gains (losses) on cash flow hedges, net of tax | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | 13.6 | 3 | (19.1) | ||||||||
Income tax provision | (3.5) | (1) | 3.7 | ||||||||
Net income | 10.1 | 2 | (15.4) | ||||||||
Forward exchange contracts | Net unrealized gains (losses) on cash flow hedges, net of tax | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Sales | (2.4) | (0.3) | 5.5 | ||||||||
Cost of sales | 17.2 | 2.8 | (25.5) | ||||||||
Selling, general and administrative expenses | $ (1.2) | $ 0.5 | $ 0.9 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Pre-tax share-based compensation expense | $ 38.5 | $ 38.5 | $ 40.5 |
Income tax benefit related to share-based compensation expense, Total | 9.6 | $ 12.3 | $ 12.9 |
Unrecognized compensation cost related to share-based compensation awards, net of estimated forfeitures, Total | $ 41.1 | ||
Weighted average period for recognition of total unrecognized compensation cost | 1 year 9 months 8 days | ||
Stock options | |||
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 (in dollars per share) | $ 35.29 | $ 25.70 | $ 21.28 |
Total intrinsic value of stock options exercised | $ 71 | $ 141.1 | $ 21.9 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Vesting period | 3 years | ||
Payout percentage | 187.00% | 10.00% | 93.00% |
Payout percentage in December 2016 for performance period ending September 30, 2016 | 200.00% | ||
Maximum potential shares to be delivered in payment under performance share awards (in shares) | 145,000 | ||
Weighted average grant date fair value of awards granted (in dollars per share) | $ 219.04 | $ 174.37 | $ 87.64 |
Total fair value of shares vested | $ 26.5 | $ 0.9 | $ 7.1 |
Shares granted in the period (in shares) | 40,000 | ||
Performance shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Payout percentage | 0.00% | ||
Performance shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Payout percentage | 200.00% | ||
Restricted stock and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Weighted average grant date fair value of awards granted (in dollars per share) | $ 188.41 | $ 138.32 | $ 105.38 |
Total fair value of shares vested | $ 7.2 | $ 7.6 | $ 7 |
Shares granted in the period (in shares) | 47,000 | ||
Restricted stock and restricted stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Vesting period | 1 year | ||
Restricted stock and restricted stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Vesting period | 5 years | ||
Unrestricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Weighted average grant date fair value of awards granted (in dollars per share) | $ 183.76 | $ 129.68 | $ 98.79 |
Shares granted in the period (in shares) | 7,000 | ||
2012 Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Shares authorized (in shares) | 11,800,000 | ||
Shares available for grant (in shares) | 4,500,000 | ||
2003 Directors Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Shares authorized (in shares) | 500,000 | ||
Shares available for grant (in shares) | 200,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Fair Value Assumptions (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock options | |||
Fair value assumptions for share-based compensation awards | |||
Average risk-free interest rate | 2.14% | 1.85% | 1.76% |
Expected dividend yield | 1.75% | 2.21% | 2.78% |
Expected volatility | 22.00% | 24.00% | 29.00% |
Expected term (years) | 5 years | 5 years 1 month | 5 years 1 month |
Performance shares | |||
Fair value assumptions for share-based compensation awards | |||
Average risk-free interest rate | 1.88% | 1.35% | 1.21% |
Expected dividend yield | 1.72% | 2.20% | 2.75% |
Expected volatility | 22.00% | 23.00% | 22.00% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Shares (in thousands) | |
Outstanding shares, beginning balance (in shares) | shares | 3,889 |
Granted (in shares) | shares | 894 |
Exercised (in shares) | shares | (798) |
Forfeited (in shares) | shares | (68) |
Canceled (in shares) | shares | (3) |
Outstanding shares, ending balance (in shares) | shares | 3,914 |
Shares (in thousands) | |
Vested or expected to vest (in shares) | shares | 2,796 |
Exercisable (in shares) | shares | 2,053 |
Wtd. Avg. Exercise Price | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 108.10 |
Granted (in dollars per share) | $ / shares | 191.87 |
Exercised (in dollars per share) | $ / shares | 102.54 |
Forfeited (in dollars per share) | $ / shares | 158.18 |
Canceled (in dollars per share) | $ / shares | 94.85 |
Outstanding, ending balance (in dollars per share) | $ / shares | 127.50 |
Vested or expected to vest (in dollars per share) | $ / shares | 100.84 |
Exercisable (in dollars per share) | $ / shares | $ 101.20 |
Wtd. Avg. Remaining Contractual Terms (years) / Aggregate Intrinsic Value of In-The-Money Options | |
Outstanding, wtd. avg. remaining contractual term | 6 years 11 months |
Vested or expected to vest, wtd. avg. remaining contractual term | 5 years 7 months |
Exercisable, wtd. avg. remaining contractual term | 5 years 6 months |
Outstanding, Aggregate intrinsic value of in-the-money options | $ | $ 234.9 |
Vested or expected, Aggregate intrinsic value of in-the-money options | $ | 242.4 |
Exercisable, Aggregate intrinsic value of in-the-money options | $ | $ 177.2 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Performance Share and Restricted Stock Unit Activty (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Performance shares | |||
Shares / Units (in thousands) | |||
Outstanding shares, beginning balance (in shares) | 190 | ||
Granted (in shares) | 40 | ||
Adjustment for performance results achieved (in shares) | 64 | ||
Vested and issued (in shares) | (139) | (6) | (67) |
Forfeited (in shares) | (5) | ||
Outstanding shares, ending balance (in shares) | 150 | 190 | |
Wtd. Avg. Grant Date Share Fair Value | |||
Outstanding, beginning balance (in dollars per share) | $ 112.64 | ||
Granted (in dollars per share) | 219.04 | $ 174.37 | $ 87.64 |
Adjustment for performance results achieved (in dollars per share) | 190.46 | ||
Vested and issued (in dollars per share) | 144.07 | ||
Forfeited (in dollars per share) | 152.93 | ||
Outstanding, ending balance (in dollars per share) | $ 143.94 | $ 112.64 | |
Restricted stock and restricted stock units | |||
Shares / Units (in thousands) | |||
Outstanding shares, beginning balance (in shares) | 141 | ||
Granted (in shares) | 47 | ||
Vested and issued (in shares) | (38) | ||
Forfeited (in shares) | (4) | ||
Outstanding shares, ending balance (in shares) | 146 | 141 | |
Wtd. Avg. Grant Date Share Fair Value | |||
Outstanding, beginning balance (in dollars per share) | $ 118.87 | ||
Granted (in dollars per share) | 188.41 | $ 138.32 | $ 105.38 |
Vested and issued (in dollars per share) | 115.19 | ||
Forfeited (in dollars per share) | 142.33 | ||
Outstanding, ending balance (in dollars per share) | $ 141.35 | $ 118.87 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Performance Shares Vested (Details) - Performance shares - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage | 187.00% | 10.00% | 93.00% |
Shares vested (in thousands) | 139 | 6 | 67 |
Vested shares, Total Fair Value | $ 26.5 | $ 0.9 | $ 7.1 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expense related to defined contribution savings plans | $ 47 | $ 41.5 | $ 38.6 |
Recognized prior service credits | 4.9 | ||
Recognized prior service credits, net of tax | 3.8 | ||
Recognized net actuarial losses | 115.1 | ||
Recognized net actuarial losses, net of tax | 84.3 | ||
Accumulated benefit obligation for pension plans | 3,962.3 | 4,252.2 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Voluntary contribution to U.S. qualified pension plan | 50.3 | 254.9 | |
Recognized prior service credits | (0.6) | 3.7 | 2.9 |
Recognized net actuarial losses | 113.4 | 152.9 | 124.5 |
Estimated future payments, during next fiscal year | 32 | ||
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Voluntary contribution to U.S. qualified pension plan | 10.1 | 10 | |
Recognized prior service credits | 5.5 | 6.1 | 11.1 |
Recognized net actuarial losses | 1.7 | $ 2.3 | $ 2.3 |
Estimated future payments, during next fiscal year | $ 10.3 | ||
U.S. Plans | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.35% | 3.90% | 3.75% |
U.S. Plans | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.15% | 3.40% | |
Non-US Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.48% | 2.30% | |
Non-US Plan | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.30% | 3.20% | |
Qualified Plan | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Voluntary contribution to U.S. qualified pension plan | $ 200 | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contribution to defined contribution plan (percentage) | 3.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contribution to defined contribution plan (percentage) | 7.00% |
- Schedule of Components of Net
- Schedule of Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amortization: | |||
Prior service cost (credit) | $ (4.9) | ||
Net actuarial loss | 115.1 | ||
Pension Benefits | |||
Components of net periodic benefit cost | |||
Service cost | 88.9 | $ 97 | $ 88 |
Interest cost | 155.3 | 151.6 | 169.5 |
Expected return on plan assets | (244.8) | (225.2) | (218.3) |
Amortization: | |||
Prior service cost (credit) | 0.6 | (3.7) | (2.9) |
Net actuarial loss | 113.4 | 152.9 | 124.5 |
Special termination benefit | 0 | 0.5 | 0.5 |
Settlements | 0.7 | 2.8 | 0 |
Net periodic benefit cost (income) | 114.1 | 175.9 | 161.3 |
Other Postretirement Benefits | |||
Components of net periodic benefit cost | |||
Service cost | 1.3 | 1.4 | 1.3 |
Interest cost | 2.4 | 2.5 | 3.3 |
Amortization: | |||
Prior service cost (credit) | (5.5) | (6.1) | (11.1) |
Net actuarial loss | 1.7 | 2.3 | 2.3 |
Special termination benefit | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Net periodic benefit cost (income) | $ (0.1) | $ 0.1 | $ (4.2) |
Retirement Benefits - Schedule
Retirement Benefits - Schedule of Significant Assumptions Used in Determining Net Periodic Benefit Cost (Income) and Benefit Obligations (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
U.S. Plans | |||
Net benefit obligation assumptions | |||
Expected gross health care cost trend rate in 2020 | 5.50% | ||
U.S. Plans | Pension Benefits | |||
Net periodic benefit cost assumptions | |||
Discount rate | 3.90% | 3.75% | 4.55% |
Expected return on plan assets | 7.50% | 7.50% | 7.50% |
Compensation increase rate | 3.50% | 3.50% | 3.75% |
Net benefit obligation assumptions | |||
Compensation increase rate | 3.50% | 3.50% | |
U.S. Plans | Other Postretirement Benefits | |||
Net periodic benefit cost assumptions | |||
Discount rate | 3.40% | 3.10% | 3.85% |
Net benefit obligation assumptions | |||
Health care cost trend rate | 6.50% | 6.50% | |
Non-US Plan | |||
Net benefit obligation assumptions | |||
Expected gross health care cost trend rate in 2020 | 5.50% | ||
Non-US Plan | Pension Benefits | |||
Net periodic benefit cost assumptions | |||
Discount rate | 2.30% | 1.77% | 2.67% |
Expected return on plan assets | 5.19% | 5.12% | 5.21% |
Compensation increase rate | 2.99% | 2.86% | 3.11% |
Net benefit obligation assumptions | |||
Compensation increase rate | 3.02% | 2.99% | |
Non-US Plan | Other Postretirement Benefits | |||
Net periodic benefit cost assumptions | |||
Discount rate | 3.20% | 2.80% | 3.60% |
Net benefit obligation assumptions | |||
Health care cost trend rate | 4.50% | 4.50% |
Retirement Benefits - Schedul_2
Retirement Benefits - Schedule of Net Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of year | $ 3,788.3 | ||
Plan assets at end of year | 3,754.8 | $ 3,788.3 | |
Net amount on balance sheet consists of: | |||
Retirement benefits | (605.1) | (892.5) | |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 4,585 | 4,785.9 | |
Service cost | 88.9 | 97 | $ 88 |
Interest cost | 155.3 | 151.6 | 169.5 |
Actuarial gains | (257.1) | (221.9) | |
Plan amendments | (0.3) | (6.9) | |
Plan participant contributions | 3.7 | 3.9 | |
Benefits paid | 277.7 | 251.9 | |
Special termination benefit | 0.5 | ||
Settlements | (10.4) | (13.8) | |
Curtailments | (3.5) | (1) | |
Currency translation and other | (24.4) | 41.6 | |
Benefit obligation at end of year | 4,259.5 | 4,585 | 4,785.9 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of year | 3,788.3 | 3,447.9 | |
Actual return on plan assets | 220.6 | 315.5 | |
Company contributions | 50.3 | 254.9 | |
Plan participant contributions | 3.7 | 3.9 | |
Benefits paid | (277.7) | (251.9) | |
Settlements | (10.4) | (13.8) | |
Currency translation and other | (20) | 31.8 | |
Plan assets at end of year | 3,754.8 | 3,788.3 | 3,447.9 |
Funded status of plans | (504.7) | (796.7) | |
Net amount on balance sheet consists of: | |||
Other assets | 30.6 | 10.6 | |
Compensation and benefits | (12.3) | (11.7) | |
Retirement benefits | (523) | (795.6) | |
Net amount on balance sheet | (504.7) | (796.7) | |
Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 77.8 | 86.9 | |
Service cost | 1.3 | 1.4 | 1.3 |
Interest cost | 2.4 | 2.5 | 3.3 |
Actuarial gains | (8.5) | (3.8) | |
Plan participant contributions | 3.4 | 3.4 | |
Benefits paid | 13.5 | 13.4 | |
Settlements | 0 | 0 | |
Curtailments | 0 | 0 | |
Currency translation and other | (0.5) | 0.8 | |
Benefit obligation at end of year | 62.4 | 77.8 | 86.9 |
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 | 10.1 | 10 | |
Plan participant contributions | 3.4 | 3.4 | |
Benefits paid | (13.5) | (13.4) | |
Settlements | 0 | 0 | |
Currency translation and other | 0 | 0 | |
Plan assets at end of year | 0 | 0 | $ 0 |
Funded status of plans | (62.4) | (77.8) | |
Net amount on balance sheet consists of: | |||
Other assets | 0 | 0 | |
Compensation and benefits | (10.1) | (9.5) | |
Retirement benefits | (52.3) | (68.3) | |
Net amount on balance sheet | $ (62.4) | $ (77.8) |
Retirement Benefits - Schedul_3
Retirement Benefits - Schedule of Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | $ 4.3 | $ 5.3 |
Net actuarial loss | 657.6 | 921.9 |
Total | 661.9 | 927.2 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | (8.2) | (12.2) |
Net actuarial loss | 4.4 | 12 |
Total | $ (3.8) | $ (0.2) |
Retirement Benefits - Schedul_4
Retirement Benefits - Schedule of Accumulated and Project Benefit Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 3,755.5 | $ 4,280.9 |
Fair value of plan assets | 3,220.2 | 3,473.6 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Accumulated benefit obligation | 679.7 | 3,956.8 |
Fair value of plan assets | $ 392.9 | $ 3,473.6 |
Retirement Benefits - Schedul_5
Retirement Benefits - Schedule of Expected Benefit Payments (Details) $ in Millions | Sep. 30, 2018USD ($) |
Pension Benefits | |
Estimated future benefit payments | |
2,019 | $ 288.9 |
2,020 | 268.5 |
2,021 | 282.1 |
2,022 | 301.7 |
2,023 | 278.4 |
2024 – 2028 | 1,417 |
Other Postretirement Benefits | |
Estimated future benefit payments | |
2,019 | 10.3 |
2,020 | 6.8 |
2,021 | 5.5 |
2,022 | 5.1 |
2,023 | 4.8 |
2024 – 2028 | $ 19.8 |
Retirement Benefits - Schedul_6
Retirement Benefits - Schedule of Weighted Average Allocation Of Plan Assets (Details) | Sep. 30, 2018 | Sep. 30, 2017 |
Equity securities | ||
Asset Allocation | ||
Target Allocations | 55.00% | |
As of the balance sheet date | 53.00% | 50.00% |
Debt securities | ||
Asset Allocation | ||
Target Allocations | 39.00% | |
As of the balance sheet date | 39.00% | 42.00% |
Other | ||
Asset Allocation | ||
Target Allocations | 6.00% | |
As of the balance sheet date | 8.00% | 8.00% |
Minimum | Equity securities | ||
Asset Allocation | ||
Target Allocations | 40.00% | |
Minimum | Debt securities | ||
Asset Allocation | ||
Target Allocations | 30.00% | |
Minimum | Other | ||
Asset Allocation | ||
Target Allocations | 0.00% | |
Maximum | Equity securities | ||
Asset Allocation | ||
Target Allocations | 65.00% | |
Maximum | Debt securities | ||
Asset Allocation | ||
Target Allocations | 50.00% | |
Maximum | Other | ||
Asset Allocation | ||
Target Allocations | 15.00% |
Retirement Benefits - Schedul_7
Retirement Benefits - Schedule of Allocation of Plan Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | $ 3,754.8 | $ 3,788.3 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 84.6 | 77.2 | $ 85.4 |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 2,827.3 | 2,890.1 | |
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 2,729.7 | 2,779.2 | |
U.S. Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 1,431.7 | 1,389.9 | |
U.S. Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 1,297.1 | 1,388.4 | |
U.S. Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0.9 | 0.9 | |
U.S. Plans | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 2 | 1.1 | |
U.S. Plans | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 2 | 1.1 | |
U.S. Plans | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 222.1 | 230.1 | |
U.S. Plans | Mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 222.1 | 230.1 | |
U.S. Plans | Mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 964.7 | 911.7 | |
U.S. Plans | Common stock | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 964.7 | 911.7 | |
U.S. Plans | Common stock | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Common stock | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 422.2 | 411.2 | |
U.S. Plans | Common collective trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | ||
U.S. Plans | Common collective trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 422.2 | 411.2 | |
U.S. Plans | Common collective trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 627.7 | 663.7 | |
U.S. Plans | Corporate debt | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Corporate debt | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 627.7 | 663.7 | |
U.S. Plans | Corporate debt | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 348.7 | 356.4 | |
U.S. Plans | Common collective trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 242.9 | 247 | |
U.S. Plans | Common collective trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 105.8 | 109.4 | |
U.S. Plans | Common collective trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 141.4 | 204.1 | |
U.S. Plans | Common collective trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Common collective trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 141.4 | 204.1 | |
U.S. Plans | Common collective trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0.9 | 0.9 | |
U.S. Plans | Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
U.S. Plans | Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0.9 | 0.9 | 0.9 |
U.S. Plans | Private equity | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 36.5 | 49.9 | |
U.S. Plans | Alternative equity | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 61.1 | 61 | |
Non-US Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets excluding those measured using the NAV practical expedient | 917.7 | 888.7 | |
Non-US Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 73.1 | 61.8 | |
Non-US Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 760.9 | 750.6 | |
Non-US Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 83.7 | 76.3 | |
Non-US Plan | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 927.5 | 898.2 | |
Non-US Plan | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 12.8 | 3.3 | |
Non-US Plan | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 12.8 | 3.3 | |
Non-US Plan | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 59.2 | 57.3 | |
Non-US Plan | Common stock | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 59.2 | 57.3 | |
Non-US Plan | Common stock | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Common stock | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 320.7 | 311.1 | |
Non-US Plan | Common collective trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Common collective trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 320.7 | 311.1 | |
Non-US Plan | Common collective trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 33.8 | 37 | |
Non-US Plan | Corporate debt | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Corporate debt | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 33.8 | 37 | |
Non-US Plan | Corporate debt | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 16.6 | 16 | |
Non-US Plan | Government securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 1.1 | 1.2 | |
Non-US Plan | Government securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 15.5 | 14.8 | |
Non-US Plan | Government securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 310.4 | 301.1 | |
Non-US Plan | Common collective trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Common collective trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 310.4 | 301.1 | |
Non-US Plan | Common collective trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 80.5 | 86.6 | |
Non-US Plan | Real estate funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Real estate funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 80.5 | 86.6 | |
Non-US Plan | Real estate funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 9.8 | 9.5 | |
Non-US Plan | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 79.1 | 71.5 | |
Non-US Plan | Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 79.1 | 71.5 | 79.7 |
Non-US Plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 4.6 | 4.8 | |
Non-US Plan | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | 0 | 0 | |
Non-US Plan | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan fair value of plan assets | $ 4.6 | $ 4.8 | $ 4.8 |
Retirement Benefits - Defined B
Retirement Benefits - Defined Benefit Plan Change in Fair Value of Plan Assets Level Three (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | $ 3,788.3 | |
Plan assets at end of year | 3,754.8 | $ 3,788.3 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 77.2 | 85.4 |
Realized Gains (Losses) | 0 | 0 |
Unrealized Gains (Losses) | (0.6) | (13.4) |
Purchases, Sales, Issuances, and Settlements, Net | 8 | 5.2 |
Plan assets at end of year | 84.6 | 77.2 |
U.S. Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 2,890.1 | |
Plan assets at end of year | 2,827.3 | 2,890.1 |
U.S. Plans | Insurance contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 0.9 | |
Plan assets at end of year | 0.9 | 0.9 |
U.S. Plans | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 0.9 | |
Plan assets at end of year | 0.9 | 0.9 |
U.S. Plans | Level 3 | Insurance contracts | ||
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 |
Non-US Plan | Insurance contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 71.5 | |
Plan assets at end of year | 79.1 | 71.5 |
Non-US Plan | Other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 4.8 | |
Plan assets at end of year | 4.6 | 4.8 |
Non-US Plan | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 76.3 | |
Plan assets at end of year | 83.7 | 76.3 |
Non-US Plan | Level 3 | Insurance contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 71.5 | 79.7 |
Realized Gains (Losses) | 0 | 0 |
Unrealized Gains (Losses) | (0.4) | (13.4) |
Purchases, Sales, Issuances, and Settlements, Net | 8 | 5.2 |
Plan assets at end of year | 79.1 | 71.5 |
Non-US Plan | Level 3 | Other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at beginning of year | 4.8 | 4.8 |
Realized Gains (Losses) | 0 | 0 |
Unrealized Gains (Losses) | (0.2) | 0 |
Purchases, Sales, Issuances, and Settlements, Net | 0 | |
Plan assets at end of year | $ 4.6 | $ 4.8 |
Other Income (Expense) (Details
Other Income (Expense) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of other income (expense) | ||||
Gain on sale of business | $ 60.8 | $ 0 | $ 60.8 | $ 0 |
Change in fair value of investments | 90 | 0 | 0 | |
Interest income | 24.4 | 19.6 | 12.7 | |
Royalty income | 9.7 | 8.9 | 2.9 | |
Legacy product liability and environmental benefit (charges) | 2.6 | (8.3) | (12.7) | |
Other | 3.9 | (0.1) | 3.4 | |
Other income (expense) | 130.6 | 80.9 | 6.3 | |
Proceeds from sale of business | $ 94 | $ 0 | $ 94 | $ 0 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of income before income taxes | |||||||||||
United States | $ 721.6 | $ 547.2 | $ 512.1 | ||||||||
Non-United States | 609.2 | 490.2 | 431 | ||||||||
Total | $ 481.7 | $ 251.7 | $ 299.6 | $ 297.8 | $ 273.5 | $ 276 | $ 230.3 | $ 257.6 | 1,330.8 | 1,037.4 | 943.1 |
Current income tax provision: | |||||||||||
United States | 475.3 | 67.3 | 175.9 | ||||||||
Non-United States | 131.4 | 109.9 | 91.7 | ||||||||
State and local | 18.1 | 0.7 | 16.3 | ||||||||
Total current | 624.8 | 177.9 | 283.9 | ||||||||
Deferred income tax provision: | |||||||||||
United States | 118.6 | 44.6 | (53.7) | ||||||||
Non-United States | 48 | (14.1) | (8.8) | ||||||||
State and local | 3.9 | 3.3 | (8) | ||||||||
Total deferred | 170.5 | 33.8 | (70.5) | ||||||||
Income tax provision | 795.3 | 211.7 | 213.4 | ||||||||
Total income taxes paid | $ 222.9 | $ 211.9 | $ 299.8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2026 | Sep. 30, 2025 | Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2015 | |
Income Taxes [Line Items] | |||||||||
Blended statutory tax rate | 24.53% | 35.00% | 35.00% | ||||||
Deferred tax asset, provisional income tax amount | $ 104.4 | ||||||||
Transition tax liability for foreign subsidiaries, provisional expense | 395.8 | ||||||||
Income taxes payable | 389.4 | ||||||||
Deferred tax liabilities related to foreign withholding taxes on future distributions on historic earnings | 22.7 | $ 0 | |||||||
Deferred tax assets related to U.S. foreign tax credits attributable to the foreign withholding taxes | 9.9 | ||||||||
Tax benefit attributable to non-U.S. government sponsored tax incentive programs | $ 52.3 | $ 43.4 | $ 33.9 | ||||||
Tax benefit per diluted share attributable to non-U.S. government sponsored tax incentive programs | $ 0.41 | $ 0.33 | $ 0.26 | ||||||
Gross unrecognized tax benefits | $ 20.1 | $ 31.1 | $ 32.4 | $ 43.9 | |||||
Accrued interest and penalties for unrecognized tax benefits | 2.5 | 4 | |||||||
Benefits (expense) recognized for interest and penalties related to unrecognized tax benefits | 1.5 | $ 1.2 | $ (0.1) | ||||||
Reasonably possible amount of reduction of gross unrecognized tax benefit in the next twelve months | 6 | ||||||||
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 | 5.5 | ||||||||
Scenario, Forecast | |||||||||
Income Taxes [Line Items] | |||||||||
Blended statutory tax rate | 21.00% | ||||||||
Transition tax liability, percentage due | 25.00% | 20.00% | 15.00% | 8.00% | |||||
Other current liabilities | |||||||||
Income Taxes [Line Items] | |||||||||
Income taxes payable | 31.1 | ||||||||
Other liabilities | |||||||||
Income Taxes [Line Items] | |||||||||
Income taxes payable | 358.3 | ||||||||
Non-United States | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred tax liabilities related to foreign withholding taxes on future distributions on historic earnings | $ 34.8 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effective Tax Rate Reconciliation | |||
Statutory tax rate | 24.53% | 35.00% | 35.00% |
State and local income taxes | 1.00% | 0.70% | 0.60% |
Non-United States taxes | (4.40%) | (9.30%) | (8.60%) |
Tax effect of foreign dividends | 4.20% | 0.50% | 0.10% |
Impact of the Tax Act | 0.366 | 0 | 0 |
Foreign currency transaction loss | 0.00% | (1.90%) | (0.80%) |
Share-based compensation | (1.30%) | (2.80%) | 0.00% |
Research and development tax credit | (1.30%) | (0.60%) | (2.00%) |
Other | 0.50% | (1.20%) | (1.70%) |
Effective income tax rate | 59.80% | 20.40% | 22.60% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred income tax assets: | ||
Compensation and benefits | $ 6.5 | $ 18.8 |
Inventory | 11.5 | 20.2 |
Returns, rebates and incentives | 34 | 45.9 |
Retirement benefits | 141.5 | 305.5 |
Environmental remediation and other site-related costs | 20.7 | 33.4 |
Share-based compensation | 19.6 | 32.4 |
Other accruals and reserves | 49.7 | 71.3 |
Net operating loss carryforwards | 19.6 | 20.4 |
Tax credit carryforwards | 17.9 | 15.3 |
Capital loss carryforwards | 10 | 10.3 |
Other | 4.6 | 11.1 |
Subtotal | 335.6 | 584.6 |
Valuation allowance | (27) | (18.6) |
Net deferred income tax assets | 308.6 | 566 |
Deferred income tax liabilities: | ||
Property | (54.7) | (74) |
Intangible assets | (25.3) | (45.9) |
Investments | (21.7) | 0 |
Unremitted earnings of foreign subsidiaries | (22.7) | 0 |
Other | (4.6) | (2.5) |
Deferred income tax liabilities | (129) | (122.4) |
Total net deferred income tax assets | $ 179.6 | $ 443.6 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Attributes and Valuation Allowances (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Tax Benefit Amount | ||
Capital loss carryforward | $ 10 | $ 10.3 |
Net operating loss carryforwards | 19.6 | 20.4 |
Tax credit carryforward | 17.9 | 15.3 |
Subtotal - tax carryforwards | 47.5 | |
Other deferred tax assets | 4.6 | $ 11.1 |
Total | 52.1 | |
Valuation Allowance | ||
Tax credit carryforward | 4.6 | |
Subtotal | 22.4 | |
Total | 27 | |
Non-United States | ||
Tax Benefit Amount | ||
Net operating loss carryforward, subject to expiration | 7 | |
Net operating loss carryforward, indefinite | 3.3 | |
Capital loss carryforward | 10 | |
Valuation Allowance | ||
Net operating loss carryforward, subject to expiration | 7 | |
Net operating loss carryforward, indefinite | 3.3 | |
Capital loss carryforward | 10 | |
United States | ||
Tax Benefit Amount | ||
Net operating loss carryforwards | 0.6 | |
Tax credit carryforward | 0.8 | |
Valuation Allowance | ||
Net operating loss carryforward, subject to expiration | 0 | |
Tax credit carryforward | 0 | |
State and Local | ||
Tax Benefit Amount | ||
Net operating loss carryforwards | 8.7 | |
Tax credit carryforward | 17.1 | |
Valuation Allowance | ||
Net operating loss carryforward, subject to expiration | 1.4 | |
Tax credit carryforward | $ 0.7 |
Income Taxes - Schedule of Gros
Income Taxes - Schedule of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Unrecognized tax benefits, excluding interest and penalties | |||
Gross unrecognized tax benefits balance at beginning of year | $ 31.1 | $ 32.4 | $ 43.9 |
Additions based on tax positions related to the current year | 1.9 | 2.3 | |
Additions based on tax positions related to prior years | 3 | 10.8 | 14.9 |
Reductions based on tax positions related to prior years | (1.1) | (0.1) | 0 |
Reductions related to settlements with taxing authorities | (11.3) | (7.7) | (27.1) |
Reductions related to lapses of statute of limitations | (1.6) | (6.3) | (1.6) |
Effect of foreign currency translation | 0 | 0.1 | 0 |
Gross unrecognized tax benefits balance at end of year | $ 20.1 | $ 31.1 | $ 32.4 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Schedule of Indemnification Liabilities and Related Expected Recoveries (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Loss Contingencies [Line Items] | ||
Environmental remediation costs | $ 61.6 | $ 67.6 |
Conditional asset retirement obligations | 21.9 | 21.2 |
Indemnification liabilities | 93 | 100.8 |
Recorded probable expected recoveries | (14.1) | (17.8) |
Net recorded liabilities | 78.9 | 83 |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Indemnification liabilities | 9.5 | 12 |
Other current liabilities | 1.6 | 2.5 |
Other liabilities | 7.9 | 9.5 |
Receivables | (0.8) | (1.6) |
Other assets | (3.6) | (4.6) |
Recorded probable expected recoveries | (4.4) | (6.2) |
Net recorded liabilities | $ 5.1 | $ 5.8 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Loss Contingencies [Line Items] | |||
Reasonably possible costs from environmental remediation costs and indemnification liabilities | $ 108 | ||
Reasonably possible costs from environmental remediation costs and indemnification liabilities, net of related receivables | $ 90.5 | ||
Number of Superfund sites designated potentially responsible party at | 13 | ||
Indemnification liability | $ 93 | $ 100.8 | |
Related receivable | 14.1 | 17.8 | |
Rental expense | 120.3 | 115.1 | $ 115.5 |
Indemnification Agreement | |||
Loss Contingencies [Line Items] | |||
Indemnification liability | 9.5 | 12 | |
Related receivable | 4.4 | 6.2 | |
Substantially Indemnified by ExxonMobil Corporation | Indemnification Agreement | |||
Loss Contingencies [Line Items] | |||
Indemnification liability | 4.7 | 6.6 | |
Related receivable | $ 4.5 | $ 6.2 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Environmental Matters and Conditional Asset Retirement Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Accrual for Environmental Loss Contingencies [Abstract] | ||
Other current liabilities | $ 7.8 | |
Other liabilities | 53.8 | |
Total recorded environmental remediation costs | 61.6 | $ 67.6 |
Receivables | (1.4) | |
Other assets | (8) | |
Total recorded probable expected recoveries | (9.4) | |
Net environmental remediation costs | 52.2 | |
Discounted ongoing operating maintenance expenditures | 45.7 | |
Asset Retirement Obligation [Abstract] | ||
Other current liabilities | 0.6 | 0.7 |
Other liabilities | 21.3 | 20.5 |
Total recorded conditional asset retirement obligations | 21.9 | 21.2 |
Receivables | 0 | (0.1) |
Other assets | (0.3) | (0.2) |
Total recorded probable expected recoveries | (0.3) | (0.3) |
Net conditional asset retirement obligations | $ 21.6 | $ 20.9 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities - Lease Commitments (Details) $ in Millions | Sep. 30, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 78.1 |
2,020 | 68.9 |
2,021 | 54.6 |
2,022 | 40.9 |
2,023 | 30.2 |
Beyond 2,023 | 68.4 |
Total | $ 341.1 |
Business Segment Information -
Business Segment Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Identifiable assets | $ 6,262 | $ 7,161.7 | $ 7,101.2 |
Capital expenditures | 125.5 | 141.7 | 116.9 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 2,378.2 | 2,600.7 | 3,012.3 |
Capital expenditures | 57.6 | 69.6 | 50.7 |
Corporate | Shared by segments and used in operating activities | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 234.4 | 259.3 | 264.8 |
Capital expenditures | $ 57.6 | $ 69.6 | $ 50.7 |
Sales Revenue, Net | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Portion of total sales to largest distributor | 10.00% | 10.00% | 10.00% |
Business Segment Information _2
Business Segment Information - Schedule of Reportable Segments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales and operating results of reportable segments | ||||||||||||
Sales | $ 1,729.5 | $ 1,698.7 | $ 1,651.2 | $ 1,586.6 | $ 1,667.5 | $ 1,599.2 | $ 1,554.3 | $ 1,490.3 | $ 6,666 | $ 6,311.3 | $ 5,879.5 | |
Income before income taxes | $ 481.7 | $ 251.7 | $ 299.6 | $ 297.8 | $ 273.5 | $ 276 | $ 230.3 | $ 257.6 | 1,330.8 | 1,037.4 | 943.1 | |
Purchase accounting depreciation and amortization | (17.4) | (21.4) | (18.4) | |||||||||
Gain on sale of business | $ 60.8 | 0 | 60.8 | 0 | ||||||||
Costs related to unsolicited Emerson proposals | (11.2) | 0 | 0 | |||||||||
Gain on investments | 123.7 | 0 | 0 | |||||||||
Valuation adjustment pending registration of PTC Shares | (33.7) | 0 | 0 | |||||||||
Interest expense | (73) | (76.2) | (71.3) | |||||||||
Operating Segments [Member] | ||||||||||||
Sales and operating results of reportable segments | ||||||||||||
Income before income taxes | 1,442.6 | 1,233.1 | 1,188.7 | |||||||||
Segment Reconciling Items | ||||||||||||
Sales and operating results of reportable segments | ||||||||||||
Purchase accounting depreciation and amortization | (17.4) | (21.4) | (18.4) | |||||||||
Non-operating pension costs | (24.6) | (82.6) | (76.2) | |||||||||
Gain on sale of business | 0 | 60.8 | 0 | |||||||||
Corporate | ||||||||||||
Sales and operating results of reportable segments | ||||||||||||
General corporate-net | (75.6) | (76.3) | (79.7) | |||||||||
Architecture & Software | ||||||||||||
Sales and operating results of reportable segments | ||||||||||||
Sales | 3,098.2 | 2,899.3 | 2,635.2 | |||||||||
Income before income taxes | 901.3 | 781.5 | 695 | |||||||||
Control Products & Solutions | ||||||||||||
Sales and operating results of reportable segments | ||||||||||||
Sales | 3,567.8 | 3,412 | 3,244.3 | |||||||||
Income before income taxes | $ 541.3 | $ 451.6 | $ 493.7 |
Business Segment Information _3
Business Segment Information - Components of Identifiable Assets, Depreciation and Amortization, and Capital Expenditures for Property (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 6,262 | $ 7,161.7 | $ 7,101.2 |
Depreciation and amortization | 164.6 | 168.9 | 172.2 |
Purchase accounting depreciation and amortization | 17.4 | 21.4 | 18.4 |
Capital expenditures | 125.5 | 141.7 | 116.9 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 2,378.2 | 2,600.7 | 3,012.3 |
Depreciation and amortization | 2.3 | 3.2 | 1.5 |
Capital expenditures | 57.6 | 69.6 | 50.7 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 147.2 | 147.5 | 153.8 |
Architecture & Software | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 1,788.9 | 2,482.8 | 2,054.3 |
Depreciation and amortization | 72.5 | 69.3 | 75 |
Capital expenditures | 29.4 | 30 | 24.7 |
Control Products & Solutions | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 2,094.9 | 2,078.2 | 2,034.6 |
Depreciation and amortization | 72.4 | 75 | 77.3 |
Capital expenditures | $ 38.5 | $ 42.1 | $ 41.5 |
Business Segment Information _4
Business Segment Information - Schedule of Sales and Property by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales and property by geographic region | |||||||||||
Sales | $ 1,729.5 | $ 1,698.7 | $ 1,651.2 | $ 1,586.6 | $ 1,667.5 | $ 1,599.2 | $ 1,554.3 | $ 1,490.3 | $ 6,666 | $ 6,311.3 | $ 5,879.5 |
Property | 576.8 | 583.9 | 576.8 | 583.9 | 578.3 | ||||||
United States | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 3,602.6 | 3,458.4 | 3,213.4 | ||||||||
Property | 437.6 | 443.4 | 437.6 | 443.4 | 445.4 | ||||||
Canada | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 361.5 | 343.4 | 316.4 | ||||||||
Property | 12.6 | 8.8 | 12.6 | 8.8 | 7.3 | ||||||
Europe, Middle East and Africa | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 1,286.8 | 1,193.7 | 1,147.2 | ||||||||
Property | 53.3 | 52.5 | 53.3 | 52.5 | 49.9 | ||||||
Asia Pacific | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 933.3 | 866.4 | 764.4 | ||||||||
Property | 42.9 | 40 | 42.9 | 40 | 37.4 | ||||||
Latin America | |||||||||||
Sales and property by geographic region | |||||||||||
Sales | 481.8 | 449.4 | 438.1 | ||||||||
Property | $ 30.4 | $ 39.2 | $ 30.4 | $ 39.2 | $ 38.3 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Quarterly Financial Information (Unaudited) | |||||||||||
Sales | $ 1,729.5 | $ 1,698.7 | $ 1,651.2 | $ 1,586.6 | $ 1,667.5 | $ 1,599.2 | $ 1,554.3 | $ 1,490.3 | $ 6,666 | $ 6,311.3 | $ 5,879.5 |
Gross profit | 732.6 | 741.7 | 700.8 | 697.1 | 647.7 | 677.7 | 656.5 | 642.3 | 2,872.2 | 2,624.2 | 2,475.5 |
Income before income taxes | 481.7 | 251.7 | 299.6 | 297.8 | 273.5 | 276 | 230.3 | 257.6 | 1,330.8 | 1,037.4 | 943.1 |
Net (loss) income | $ 345.9 | $ 198.6 | $ 227.4 | $ (236.4) | $ 204.6 | $ 216.9 | $ 189.5 | $ 214.7 | $ 535.5 | $ 825.7 | $ 729.7 |
(Loss) Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 2.84 | $ 1.60 | $ 1.79 | $ (1.84) | $ 1.59 | $ 1.69 | $ 1.47 | $ 1.67 | $ 4.27 | $ 6.42 | $ 5.60 |
(Loss) Earnings per share: | |||||||||||
Diluted (in dollars per share) | $ 2.80 | $ 1.58 | $ 1.77 | $ (1.84) | $ 1.57 | $ 1.67 | $ 1.45 | $ 1.65 | $ 4.21 | $ 6.35 | $ 5.56 |
Rocky Flats Settlement (Details
Rocky Flats Settlement (Details) - Rocky Flats - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2017 | Sep. 30, 2018 | 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 Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Year | $ 24.9 | $ 24.5 | $ 24.8 |
Additions Charged to Costs and Expenses | 0.1 | 5 | 10.9 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 7.9 | 4.6 | 11.2 |
Balance at End of Year | 17.1 | 24.9 | 24.5 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Year | 18.6 | 17.3 | 22.2 |
Additions Charged to Costs and Expenses | 8.9 | 1.5 | 1 |
Additions Charged to Other Accounts | 0 | 0.4 | 0.6 |
Deductions | 0.5 | 0.6 | 6.5 |
Balance at End of Year | $ 27 | $ 18.6 | $ 17.3 |