Cover Page
Cover Page | 6 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 1-12383 |
Entity Registrant Name | Rockwell Automation, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 25-1797617 |
Entity Address, Address Line One | 1201 South Second Street |
Entity Address, City or Town | Milwaukee, |
Entity Address, State or Province | WI |
Entity Address, Postal Zip Code | 53204 |
City Area Code | 414 |
Local Phone Number | 382-2000 |
Title of 12(b) Security | Common Stock ($1.00 par value) |
Trading Symbol | ROK |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 115,823,960 |
Entity Central Index Key | 0001024478 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 641.8 | $ 1,018.4 |
Receivables | 1,301.1 | 1,178.7 |
Inventories | 629 | 575.7 |
Other current assets | 186.3 | 212.9 |
Total current assets | 2,758.2 | 2,985.7 |
Property, net of accumulated depreciation of $1,616.3 and $1,566.0, respectively | 560.8 | 571.9 |
Operating lease right-of-use assets | 318.5 | |
Goodwill | 1,362.3 | 1,071.1 |
Other intangible assets, net | 433 | 194.1 |
Deferred income taxes | 369.3 | 364.1 |
Long-term investments | 716.3 | 793.9 |
Other assets | 147.5 | 132.2 |
Total | 6,665.9 | 6,113 |
Current liabilities: | ||
Short-term debt | 81.5 | 0 |
Current portion of long-term debt | 0 | 300.5 |
Accounts payable | 742.5 | 694.6 |
Compensation and benefits | 135.5 | 239 |
Contract liabilities | 326.2 | 275.6 |
Customer returns, rebates and incentives | 194.5 | 199.2 |
Other current liabilities | 281.8 | 227.9 |
Total current liabilities | 1,762 | 1,936.8 |
Long-term debt | 1,970.2 | 1,956.4 |
Retirement benefits | 1,198.8 | 1,231.9 |
Operating lease liabilities | 253.5 | |
Other liabilities | 543.5 | 583.7 |
Commitments and contingent liabilities (Note 12) | ||
Shareowners’ equity: | ||
Common stock ($1.00 par value, shares issued: 181.4) | 181.4 | 181.4 |
Additional paid-in capital | 1,791.2 | 1,709.1 |
Retained earnings | 6,795.8 | 6,440.2 |
Accumulated other comprehensive loss | (1,625.8) | (1,488) |
Common stock in treasury, at cost (shares held: 65.6 and 65.7, respectively) | (6,521.8) | (6,438.5) |
Shareowners’ equity attributable to Rockwell Automation, Inc. | 620.8 | 404.2 |
Noncontrolling interests | 317.1 | 0 |
Total shareowners’ equity | 937.9 | 404.2 |
Total | $ 6,665.9 | $ 6,113 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,616.3 | $ 1,566 |
Common stock, par value per share (in usd per share) | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 181.4 | 181.4 |
Treasury stock, shares (in shares) | 65.6 | 65.7 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Sales | ||||
Sales | $ 1,681.3 | $ 1,657.2 | $ 3,365.8 | $ 3,299.5 |
Cost of sales | ||||
Cost of sales | (982.5) | (949) | (1,964.1) | (1,852.6) |
Gross profit | 698.8 | 708.2 | 1,401.7 | 1,446.9 |
Selling, general and administrative expenses | (352) | (385) | (755.2) | (771.7) |
Change in fair value of investments | (144.8) | 98.2 | (73.8) | (114.5) |
Other (expense) income | (9.1) | 4.7 | (18.8) | 6.9 |
Interest expense | (25.5) | (23.7) | (51.9) | (44.4) |
Income before income taxes | 167.4 | 402.4 | 502 | 523.2 |
Income tax provision | (37.5) | (56.4) | (56.7) | (96.9) |
Net income | 129.9 | 346 | 445.3 | 426.3 |
Net (loss) income attributable to noncontrolling interests | (2.3) | 0 | 2.4 | 0 |
Net income attributable to Rockwell Automation, Inc. | $ 132.2 | $ 346 | $ 442.9 | $ 426.3 |
Earnings per share: | ||||
Basic (in usd per share) | $ 1.14 | $ 2.91 | $ 3.82 | $ 3.56 |
Diluted (in usd per share) | $ 1.13 | $ 2.88 | $ 3.80 | $ 3.53 |
Weighted average outstanding shares: | ||||
Basic (in shares) | 116 | 118.9 | 115.8 | 119.6 |
Diluted (in shares) | 116.6 | 120 | 116.6 | 120.7 |
Products and solutions | ||||
Sales | ||||
Sales | $ 1,506 | $ 1,466.8 | $ 3,014.9 | $ 2,924.4 |
Cost of sales | ||||
Cost of sales | (867.9) | (823.6) | (1,733.9) | (1,606) |
Services | ||||
Sales | ||||
Sales | 175.3 | 190.4 | 350.9 | 375.1 |
Cost of sales | ||||
Cost of sales | $ (114.6) | $ (125.4) | $ (230.2) | $ (246.6) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 129.9 | $ 346 | $ 445.3 | $ 426.3 |
Other comprehensive income (loss), net of tax: | ||||
Pension and other postretirement benefit plan adjustments (net of tax (expense) of ($8.0), ($4.3), ($15.8), and ($8.6)) | 27.4 | 14.2 | 54.8 | 28 |
Currency translation adjustments | (74.3) | 19 | (52.2) | (9.5) |
Net change in unrealized gains and losses on cash flow hedges (net of tax (expense) benefit of ($2.6), ($0.5), ($1.5), and $6.0) | 4.5 | 2.5 | 2 | (18.3) |
Net change in unrealized gains and losses on available-for-sale investments (net of tax (expense) of ($0.0), ($0.2), ($0.0), and ($0.3)) | 0 | 0.9 | 0 | 1.4 |
Other comprehensive (loss) income | (42.4) | 36.6 | 4.6 | 1.6 |
Comprehensive income | 87.5 | 382.6 | 449.9 | 427.9 |
Comprehensive (loss) income attributable to noncontrolling interests | (3.2) | 0 | 1.8 | 0 |
Comprehensive income attributable to Rockwell Automation, Inc. | $ 90.7 | $ 382.6 | $ 448.1 | $ 427.9 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and other postretirement benefit plan adjustments tax expense | $ (8) | $ (4.3) | $ (15.8) | $ (8.6) |
Net change in unrealized gains and losses on cash flow hedges tax expense (benefit) | (2.6) | (0.5) | (1.5) | 6 |
Net change in unrealized gains and losses on available-for-sale investments net of tax benefit | $ 0 | $ (0.2) | $ 0 | $ (0.3) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income | $ 445.3 | $ 426.3 |
Adjustments to arrive at cash provided by operating activities: | ||
Depreciation | 60.2 | 62.1 |
Amortization of intangible assets | 24 | 13.2 |
Change in fair value of investments | 73.8 | 114.5 |
Share-based compensation expense | 22.4 | 21.8 |
Retirement benefit expense | 63.4 | 34.4 |
Pension contributions | (17.3) | (15.1) |
Net (gain) loss on disposition of property | (1.2) | 1.7 |
Settlement of treasury locks | 0 | (35.7) |
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments: | ||
Receivables | (134.2) | (41.5) |
Inventories | (12.1) | (86) |
Accounts payable | 50.9 | (12.1) |
Contract liabilities | 52.4 | 41.2 |
Compensation and benefits | (99.1) | (90.5) |
Income taxes | (79.2) | (66.7) |
Other assets and liabilities | (0.8) | (11.8) |
Cash provided by operating activities | 448.5 | 355.8 |
Investing activities: | ||
Capital expenditures | (56.6) | (80.9) |
Acquisition of businesses, net of cash acquired | (259.3) | (20.7) |
Purchases of investments | (2.6) | (2.8) |
Proceeds from maturities of investments | 5.4 | 219.2 |
Proceeds from sale of investments | 37.9 | 0 |
Proceeds from sale of property | 1.6 | 3.3 |
Cash (used for) provided by investing activities | (273.6) | 118.1 |
Financing activities: | ||
Net issuance (repayment) of short-term debt | 81.5 | (549.7) |
Issuance of long-term debt, net of discount and issuance costs | 0 | 987.6 |
Repayment of long-term debt | (300) | 0 |
Cash dividends | (236.3) | (232.5) |
Purchases of treasury stock | (213.7) | (535.2) |
Proceeds from the exercise of stock options | 133.7 | 23.8 |
Other financing activities | 0.8 | 0 |
Cash used for financing activities | (534) | (306) |
Effect of exchange rate changes on cash | (17.5) | (6.7) |
(Decrease) increase in cash and cash equivalents | (376.6) | 161.2 |
Cash and cash equivalents at beginning of period | 1,018.4 | 618.8 |
Cash and cash equivalents at end of period | $ 641.8 | $ 780 |
Consolidated Statement of Share
Consolidated Statement of Shareowners' Equity Consolidated Statement of Shareowners' Equity - USD ($) $ in Millions | Total | Total attributable to Rockwell Automation, Inc. | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Common stock in treasury, at cost | Noncontrolling interests | |
Balance at beginning of period at Sep. 30, 2018 | $ 1,617.5 | $ 1,617.5 | $ 181.4 | $ 1,681.4 | $ 6,198.1 | $ (941.9) | $ (5,501.5) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 426.3 | 426.3 | 426.3 | ||||||
Other comprehensive income (loss) | 1.6 | 1.6 | 1.6 | ||||||
Common stock issued (including share-based compensation impact) | 46.1 | 46.1 | 5.3 | 40.8 | |||||
Share repurchases | (528.8) | (528.8) | (528.8) | ||||||
Cash dividends declared | [1] | (232.5) | (232.5) | (232.5) | |||||
Balance at end of period at Mar. 31, 2019 | 1,336.3 | 1,336.3 | 181.4 | 1,686.7 | 6,398 | (940.3) | (5,989.5) | 0 | |
Balance at beginning of period at Dec. 31, 2018 | 1,274.3 | 1,274.3 | 181.4 | 1,674.4 | 6,167.6 | (976.9) | (5,772.2) | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 346 | 346 | 346 | ||||||
Other comprehensive income (loss) | 36.6 | 36.6 | 36.6 | ||||||
Common stock issued (including share-based compensation impact) | 31 | 31 | 12.3 | 18.7 | |||||
Share repurchases | (236) | (236) | (236) | ||||||
Cash dividends declared | [2] | (115.6) | (115.6) | (115.6) | |||||
Balance at end of period at Mar. 31, 2019 | 1,336.3 | 1,336.3 | 181.4 | 1,686.7 | 6,398 | (940.3) | (5,989.5) | 0 | |
Balance at beginning of period at Sep. 30, 2019 | 404.2 | 404.2 | 181.4 | 1,709.1 | 6,440.2 | (1,488) | (6,438.5) | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 445.3 | 442.9 | 442.9 | 2.4 | |||||
Other comprehensive income (loss) | 4.6 | 5.2 | 5.2 | (0.6) | |||||
Common stock issued (including share-based compensation impact) | 156.2 | 156.2 | 33.1 | 123.1 | |||||
Share repurchases | (206.4) | (206.4) | (206.4) | ||||||
Cash dividends declared | (236.3) | (236.3) | (236.3) | ||||||
Change in noncontrolling interest | 368.1 | 52.8 | 0 | 49 | 0 | 3.8 | 0 | 315.3 | |
Balance at end of period at Mar. 31, 2020 | 937.9 | 620.8 | 181.4 | 1,791.2 | 6,795.8 | (1,625.8) | (6,521.8) | 317.1 | |
Balance at beginning of period at Dec. 31, 2019 | 1,036.5 | 717 | 181.4 | 1,775.5 | 6,782 | (1,584.3) | (6,437.6) | 319.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 129.9 | 132.2 | 132.2 | (2.3) | |||||
Other comprehensive income (loss) | (42.4) | (41.5) | (41.5) | (0.9) | |||||
Common stock issued (including share-based compensation impact) | 38.8 | 38.8 | 16.8 | 22 | |||||
Share repurchases | (106.2) | (106.2) | (106.2) | ||||||
Cash dividends declared | [2] | (118.4) | (118.4) | (118.4) | |||||
Change in noncontrolling interest | (0.3) | (1.1) | (1.1) | 0.8 | |||||
Balance at end of period at Mar. 31, 2020 | $ 937.9 | $ 620.8 | $ 181.4 | $ 1,791.2 | $ 6,795.8 | $ (1,625.8) | $ (6,521.8) | $ 317.1 | |
[1] | Cash dividends were $2.04 per share and $1.94 per share in the six months ended March 31, 2020 and 2019 , respectively. | ||||||||
[2] | Cash dividends were $1.02 per share and $0.97 per share in the three months ended March 31, 2020 and 2019 , respectively. |
Consolidated Statement of Sha_2
Consolidated Statement of Shareowners' Equity Consolidated Statement of Shareowners' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in usd per share) | $ 1.02 | $ 0.97 | $ 2.04 | $ 1.94 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies In the opinion of management of Rockwell Automation, Inc. ("Rockwell Automation" or "the Company"), the unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the periods presented and, except as otherwise indicated, such adjustments consist only of those of a normal, recurring nature. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . The results of operations for the three and six months ended March 31, 2020 , are not necessarily indicative of the results for the full year. All date references to years and quarters herein refer to our fiscal year and fiscal quarter unless otherwise stated. Receivables Receivables are stated net of an allowance for doubtful accounts of $20.7 million at March 31, 2020 , and $17.4 million at September 30, 2019 . In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $9.3 million at March 31, 2020 and $12.4 million at September 30, 2019 . Earnings Per Share The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts): Three Months Ended Six Months Ended 2020 2019 2020 2019 Net income attributable to Rockwell Automation $ 132.2 $ 346.0 $ 442.9 $ 426.3 Less: Allocation to participating securities — (0.4 ) (0.4 ) (0.4 ) Net income available to common shareowners $ 132.2 $ 345.6 $ 442.5 $ 425.9 Basic weighted average outstanding shares 116.0 118.9 115.8 119.6 Effect of dilutive securities Stock options 0.6 1.0 0.8 1.0 Performance shares — 0.1 — 0.1 Diluted weighted average outstanding shares 116.6 120.0 116.6 120.7 Earnings per share: Basic $ 1.14 $ 2.91 $ 3.82 $ 3.56 Diluted $ 1.13 $ 2.88 $ 3.80 $ 3.53 For each of the three and six months ended March 31, 2020 , 2.3 million shares related to share-based compensation awards were excluded from the diluted EPS calculation because they were antidilutive. For each of the three and six months ended March 31, 2019 , 1.8 million shares related to share-based compensation awards were excluded from the diluted EPS calculation because they were antidilutive. Non-Cash Investing and Financing Activities Capital expenditures of $18.5 million and $11.1 million were accrued within accounts payable and other current liabilities at March 31, 2020 and 2019 , respectively. At March 31, 2020 and 2019 , there were $2.0 million and $11.9 million , respectively, of outstanding common stock share repurchases recorded in accounts payable that did not settle until the next fiscal quarter. These non-cash investing and financing activities have been excluded from cash used for capital expenditures and treasury stock purchases in the Consolidated Statement of Cash Flows. Leases We have operating leases primarily for real estate, vehicles, and equipment. We determine if a contract is, or contains, a lease at contract inception. A right-of-use (ROU) asset and a corresponding lease liability are recognized at commencement for contracts that are, or contain, a lease with an original term greater than 12 months. ROU assets represent our right to use an underlying asset during the lease term, including periods for which renewal options are reasonably certain to be exercised, and lease liabilities represent our obligation to make lease payments arising from the lease. Lease expense is recognized on a straight-line basis over the lease term for operating leases with an original term of 12 months or less. Some leasing arrangements require variable payments that are dependent on usage or may vary for other reasons, such as payments for insurance and tax payments. A portion of our real estate leases is generally subject to annual changes based upon an index. The changes based upon the index are treated as variable lease payments. The variable portion of lease payments is not included in our ROU assets or lease liabilities and is expensed when incurred. We elected to not separate lease and nonlease components of contracts for all underlying asset classes. Accordingly, all expenses associated with a lease contract are accounted for as lease expenses. Lease liabilities are recognized at the contract commencement date based on the present value of remaining lease payments over the lease term. To calculate the lease liabilities we use our incremental borrowing rate. We determine our incremental borrowing rate at the commencement date using our unsecured borrowing rate, adjusted for collateralization and lease term. For leases denominated in a currency other than the U.S. dollar, the collateralized borrowing rate in the foreign currency is determined using the U.S. dollar and foreign currency swap spread. Long-term lease liabilities are presented as Operating lease liabilities and current lease liabilities are included in Other current liabilities in the Consolidated Balance Sheet. ROU assets are recognized at the contract commencement date at the value of the related lease liability, adjusted for any prepayments, lease incentives received and initial direct costs incurred. Operating lease ROU assets are presented as Operating lease right-of-use assets in the Consolidated Balance Sheet. Lease expenses for operating leases are recognized on a straight-line basis over the lease term and recorded in Cost of sales and Selling, general and administrative expenses in the Consolidated Statement of Operations. Recently Adopted Accounting Pronouncements 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. We adopted the new standard using the modified retrospective transition method, which resulted in an immaterial cumulative-effect adjustment to the opening balance of retained earnings as of October 1, 2019, our adoption date. The amount of lease right-of-use assets and corresponding lease liabilities recorded in the Consolidated Balance Sheet upon adoption was $316 million and $329 million , respectively. We have implemented necessary changes to accounting policies, processes, controls and systems to enable compliance with this new standard. In February 2018, the FASB issued a new standard regarding the reporting of comprehensive loss, which gives entities the option to reclassify tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) stranded in accumulated other comprehensive loss into retained earnings. We adopted the new standard as of October 1, 2019, and elected to reclassify tax effects of $146.8 million from accumulated other comprehensive loss into retained earnings. Acquisition Announcements In February 2020, we announced that we entered into an agreement to acquire Italy-based ASEM, S.p.A. (ASEM), a leading provider of digital automation technologies. ASEM provides a complete range of Industrial PCs (IPCs), Human-Machine Interface (HMI) hardware and software, remote access capabilities, and secure Industrial IoT gateway solutions. In February 2020, we also announced that we entered into an agreement to acquire Kalypso, LP, a U.S.-based software delivery and consulting firm specializing in the digital transformation of industrial companies with a strong client base in life sciences, consumer products, and industrial high-tech. Both transactions are expected to close in the next few weeks, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions. Subsequent Event On April 20, 2020, we entered into a $400 million senior unsecured 364 -day term loan credit agreement and were advanced the full loan amount. This agreement is in addition to our existing $1.25 billion unsecured revolving credit facility expiring in November 2023, which remains available and undrawn. Borrowings under this term loan bear interest based on short-term money market rates in effect during the period the borrowings are outstanding. The term loan agreement contains covenants similar to those under our $1.25 billion unsecured revolving credit facility, under which we agree to maintain an EBITDA-to-interest ratio of at least 3.0 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Unfulfilled Performance Obligations As of March 31, 2020 , we expect to recognize approximately $470 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $310 million from our remaining performance obligations over the next 12 months with the remaining balance recognized thereafter. We have applied the practical expedient to exclude the value of remaining performance obligations for (i) contracts with an original term of one year or less and (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. The amounts above also do not include the impact of contract renewal options that are unexercised as of March 31, 2020 . Disaggregation of Revenue The following series of tables present our revenue disaggregation by geographic region and types of products or services, and also present these disaggregation categories for our two operating segments. We attribute sales to the geographic regions based on the country of destination. The following reflects the disaggregation of our revenues by operating segment and by geographic region (in millions): Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Architecture & Software Control Products & Solutions Total Architecture & Software Control Products & Solutions Total North America $ 447.9 $ 574.2 $ 1,022.1 $ 888.1 $ 1,140.9 $ 2,029.0 Europe, Middle East and Africa (EMEA) 162.3 171.3 333.6 311.2 332.5 643.7 Asia Pacific 98.8 102.0 200.8 210.2 220.2 430.4 Latin America 48.1 76.7 124.8 99.2 163.5 262.7 Total Company Sales $ 757.1 $ 924.2 $ 1,681.3 $ 1,508.7 $ 1,857.1 $ 3,365.8 Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Architecture & Software Control Products & Solutions Total Architecture & Software Control Products & Solutions Total North America $ 423.1 $ 564.0 $ 987.1 $ 865.9 $ 1,120.0 $ 1,985.9 Europe, Middle East and Africa (EMEA) 176.0 155.1 331.1 331.5 294.0 625.5 Asia Pacific 97.8 116.9 214.7 199.1 230.0 429.1 Latin America 42.8 81.5 124.3 96.3 162.7 259.0 Total Company Sales $ 739.7 $ 917.5 $ 1,657.2 $ 1,492.8 $ 1,806.7 $ 3,299.5 The following reflects the disaggregation of our revenues by operating segment and by major types of products or services (in millions): Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Architecture & Software Control Products & Solutions Total Architecture & Software Control Products & Solutions Total Products $ 757.1 $ 379.0 $ 1,136.1 $ 1,508.7 $ 767.7 $ 2,276.4 Solutions & Services — 545.2 545.2 — 1,089.4 1,089.4 Total Company Sales $ 757.1 $ 924.2 $ 1,681.3 $ 1,508.7 $ 1,857.1 $ 3,365.8 Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Architecture & Software Control Products & Solutions Total Architecture & Software Control Products & Solutions Total Products $ 739.7 $ 372.3 $ 1,112.0 $ 1,492.8 $ 745.2 $ 2,238.0 Solutions & Services — 545.2 545.2 — 1,061.5 1,061.5 Total Company Sales $ 739.7 $ 917.5 $ 1,657.2 $ 1,492.8 $ 1,806.7 $ 3,299.5 Contract Balances Contract liabilities primarily relate to consideration received in advance of performance under the contract. We do not have significant contract assets as of March 31, 2020 . Below is a summary of our contract liabilities balance: March 31, 2020 March 31, 2019 Balance as of beginning of fiscal year $ 275.6 $ 268.6 Balance as of end of period 326.2 308.9 The most significant changes in our contract liabilities balance during the six months ended March 31, 2020 , were due to amounts billed, partially offset by revenue recognized that was included in the contract liabilities balance at the beginning of the period. In the six months ended March 31, 2020 , we recognized revenue of approximately $171.3 million that was included in the opening contract liabilities balance. We did not have a material amount of revenue recognized in the six months ended March 31, 2020 , from performance obligations satisfied or partially satisfied in previous periods. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized $10.9 million and $22.4 million of pre-tax share-based compensation expense during the three and six months ended March 31, 2020 , respectively. We recognized $10.8 million and $21.8 million of pre-tax share-based compensation expense during the three and six months ended March 31, 2019 , respectively. Our annual grant of share-based compensation takes place during the first quarter of each fiscal year. The number of shares granted to employees and non-employee directors and the weighted average fair value per share during the periods presented were (in thousands, except per share amounts): Six Months Ended March 31, 2020 2019 Grants Wtd. Avg. Share Fair Value Grants Wtd. Avg. Share Fair Value Stock options 970 $ 35.78 946 $ 32.48 Performance shares 37 265.04 57 155.04 Restricted stock and restricted stock units 49 192.60 41 171.03 Unrestricted stock 7 171.51 6 183.02 |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of (in millions): March 31, September 30, Finished goods $ 280.8 $ 223.7 Work in process 174.9 178.4 Raw materials 173.3 173.6 Inventories $ 629.0 $ 575.7 |
Acquisitions
Acquisitions | 6 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Sensia joint venture On October 1, 2019, we completed the formation of a joint venture, Sensia, a fully integrated digital oilfield automation solutions provider. Rockwell Automation owns 53% of Sensia and Schlumberger owns 47% of Sensia. As part of the transaction, we made a $250 million payment to Schlumberger, which was funded by cash on hand. We control Sensia and, as of October 1, 2019, have consolidated Sensia in our financial results. Rockwell Automation recorded assets acquired and liabilities assumed in connection with the formation of Sensia based on their estimated fair values as of the October 1, 2019, acquisition date. The preliminary purchase price allocation is as follows (in millions): Purchase Price Allocation Cash $ 16.2 Accounts receivable 22.6 Inventory 62.6 Other current assets 1.2 Property, plant and equipment 9.8 Other assets 6.2 Goodwill 291.7 Intangible assets 254.1 Total assets acquired 664.4 Less: Liabilities assumed (37.0 ) Less: Deferred income taxes (2.7 ) Less: Noncontrolling interest portion (293.8 ) Net assets acquired $ 330.9 Purchase consideration Cash $ 250.0 Noncontrolling interest portion of Rockwell Automation's contributed business 21.5 Additional paid in capital adjustment 52.4 Other 7.0 Net purchase consideration $ 330.9 Intangible assets assigned include $254.1 million of customer relationships, technology, and trade names (approximately 11 -year weighted average useful life). We assigned the full amount of goodwill and all other assets acquired to our Control Products & Solutions segment. Some of the goodwill recorded is expected to be deductible for tax purposes. The assets were valued using an income approach, specifically the relief from royalty method and multi-period excess earnings method. The relief from royalty method calculates value based on hypothetical payments that would be saved by owning an asset rather than licensing it. The multi-period excess earnings method is the isolation of cash flows from a single intangible asset and measures fair value by discounting them to present value. These values are considered level 3 measurements under accounting principles generally accepted in the United States (U.S. GAAP) fair value hierarchy. Key assumptions used in the valuation of these intangible assets included: (1) a discount rate of 11% , (2) the estimated remaining life of technology and trademarks of from 5 to 15 years , and (3) the customer attrition rate ranging from 7.5% to 25% . The allocation of the purchase price to identifiable assets is based on the preliminary valuations performed to determine the fair value of the net assets as of the acquisition date. The measurement period for the valuation of net assets acquired ends as soon as information on the facts and circumstances that existed as of the acquisition dates becomes available, but not to exceed 12 months following the acquisition date. Adjustments in purchase price allocations may require a change in the amounts allocated to net assets acquired during the periods in which the adjustments are determined. The fair value of the noncontrolling interest of the contributed business upon acquisition was $293.8 million . The consolidated value of Sensia is recorded at fair value for Schlumberger's contribution and at carrying value for Rockwell Automation's contribution. Acquisition-related costs recorded as expenses in the year ended September 30, 2019, and in the three and six months ended March 31, 2020, were not material. Pro forma consolidated sales for the three and six months ended March 31, 2019, are approximately $1.7 billion and $3.4 billion , respectively, and the impact on earnings is not material. The preceding pro forma consolidated financial results of operations are as if the October 1, 2019, formation of Sensia occurred on October 1, 2018. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the transaction occurred as of that time. Other acquisitions In October 2019, we acquired MESTECH Services, a global provider of Manufacturing Execution Systems / Manufacturing Operations Management, digital solutions consulting, and systems integration services. We assigned the full amount of goodwill related to this acquisition to our Control Products & Solutions segment. In January 2020, we acquired Avnet Data Security, LTD, an Israel-based cybersecurity provider with over 20 years of experience providing cybersecurity services. We assigned the full amount of goodwill related to this acquisition to our Control Products & Solutions segment. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill for the six months ended March 31, 2020 , are (in millions): Architecture & Software Control Products & Solutions Total Balance as of September 30, 2019 $ 432.3 $ 638.8 $ 1,071.1 Acquisition of businesses — 304.5 304.5 Translation (3.5 ) (9.8 ) (13.3 ) Balance as of March 31, 2020 $ 428.8 $ 933.5 $ 1,362.3 Other intangible assets consist of (in millions): March 31, 2020 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 190.6 $ 133.4 $ 57.2 Customer relationships 305.4 77.6 227.8 Technology 152.0 75.1 76.9 Trademarks 53.9 27.5 26.4 Other 13.8 12.8 1.0 Total amortized intangible assets 715.7 326.4 389.3 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 759.4 $ 326.4 $ 433.0 September 30, 2019 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 190.6 $ 128.3 $ 62.3 Customer relationships 110.5 69.2 41.3 Technology 110.4 69.5 40.9 Trademarks 31.4 26.4 5.0 Other 10.6 9.7 0.9 Total amortized intangible assets 453.5 303.1 150.4 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 497.2 $ 303.1 $ 194.1 Estimated amortization expense is $47.9 million in 2020 , $47.2 million in 2021 , $44.3 million in 2022 , $43.1 million in 2023 and $40.1 million in 2024 . We perform our annual evaluation of goodwill and indefinite life intangible assets for impairment as required by U.S. GAAP at the beginning of the second quarter of each year, or more frequently if events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. For our annual evaluation of goodwill, we may perform a qualitative test to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount in order to determine whether it is necessary to perform a quantitative goodwill impairment test. When performing the quantitative goodwill impairment test, we determine the fair value of each reporting unit under a combination of an income approach derived from discounted cash flows and a market multiples approach using selected comparable public companies. Significant assumptions used in the income approach include: management’s forecasted cash flows, including estimated future revenue growth rates and margins, discount rate, and terminal value. Forecasted future revenue growth and margins are based on management’s best estimate about current and future conditions. Discount rates are determined using weighted average cost of capital adjusted for risk factors specific to the reporting unit level, with comparison to market and industry data. The terminal value is estimated following common methodology of calculating the present value of estimated perpetual cash flow beyond the last projected period assuming constant discount and long-term growth rates. Significant assumptions used in the market multiples approach include selection of the comparable public companies and calculation of the appropriate market multiples. For our 2020 annual evaluation, we performed a qualitative test for our Architecture & Software reporting unit and our Control Products & Solutions (excluding Sensia) reporting unit. We performed a quantitative test for our Sensia reporting unit. We also assessed the changes in events and circumstances subsequent to our annual test, including those related to the COVID-19 pandemic and the impact of recent declines in oil prices. Based on those evaluations, we concluded these assets were no t impaired. |
Long-term and Short-term Debt
Long-term and Short-term Debt | 6 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term and Short-term Debt | Long-term and Short-term Debt March 31, September 30, 2019 2.050% notes, payable in March 2020 $ — $ 299.4 2.875% notes, payable in March 2025 321.0 307.6 6.70% debentures, payable in January 2028 250.0 250.0 3.500% notes, payable in March 2029 425.0 425.0 6.25% debentures, payable in December 2037 250.0 250.0 4.200% notes, payable in March 2049 575.0 575.0 5.20% debentures, payable in January 2098 200.0 200.0 Unamortized discount and other (50.8 ) (50.1 ) Total 1,970.2 2,256.9 Less current portion — (300.5 ) Long-term debt $ 1,970.2 $ 1,956.4 Our short-term debt as of March 31, 2020 , consisted of $58.0 million of commercial paper borrowings and $23.5 million of interest-bearing loans from Schlumberger to Sensia due September 30, 2020. The short-term loans were entered into following formation of Sensia. See Note 5 in the Consolidated Financial Statements for additional information on Sensia. The weighted average interest rate of the commercial paper outstanding at March 31, 2020 , was 2.4 percent. There were no commercial paper borrowings outstanding at September 30, 2019. In March 2020, we repaid our $300.0 million 2.050% notes which were classified as the current portion of long-term debt at September 30, 2019. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of (in millions): March 31, September 30, Unrealized losses on foreign exchange contracts $ 19.0 $ 5.4 Product warranty obligations 22.8 25.2 Taxes other than income taxes 52.9 43.8 Accrued interest 15.1 15.5 Income taxes payable 27.4 62.9 Operating lease liabilities 88.4 — Other 56.2 75.1 Other current liabilities $ 281.8 $ 227.9 |
Investments
Investments | 6 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Our investments consist of (in millions): March 31, September 30, Fixed income securities $ 0.6 $ 43.9 Equity securities 647.7 721.5 Other 68.6 68.1 Total investments 716.9 833.5 Less: Short-term investments (1) (0.6 ) (39.6 ) Long-term investments $ 716.3 $ 793.9 (1) Short-term investments are included in Other current assets in the Consolidated Balance Sheet. Equity Securities On July 19, 2018, we purchased 10,582,010 shares of PTC Inc. ("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. Since the first anniversary of the Purchase, the Company has had the ability to transfer, in the aggregate in any 90 -day period, a number of PTC 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. Fair Value of Investments 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. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. We did not have any transfers between levels of fair value measurements during the period presented. The PTC Shares are classified as level 1 in the fair value hierarchy and recognized at fair value in the Consolidated Balance Sheet using the most recent closing price of PTC common stock quoted on Nasdaq. At March 31, 2020 , the fair value of the PTC Shares was $647.7 million , which was recorded in long-term investments in the Consolidated Balance Sheet. For the three and six months ended March 31, 2020 , we recorded losses of $144.8 million and $73.8 million related to the PTC Shares, respectively. For the three and six months ended March 31,2019, we recorded gains of $98.2 million and losses of $114.5 million related to the PTC Shares, respectively. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit cost are (in millions): Pension Benefits Three Months Ended Six Months Ended 2020 2019 2020 2019 Service cost $ 22.8 $ 19.5 $ 45.6 $ 39.1 Interest cost 34.1 39.6 68.3 79.2 Expected return on plan assets (61.2 ) (61.2 ) (122.4 ) (122.4 ) Amortization: Prior service cost 0.3 0.3 0.5 0.6 Net actuarial loss 36.8 19.5 73.6 39.0 Settlements (0.7 ) (0.2 ) (1.5 ) (0.4 ) Net periodic benefit cost $ 32.1 $ 17.5 $ 64.1 $ 35.1 Other Postretirement Benefits Three Months Ended Six Months Ended 2020 2019 2020 2019 Service cost $ 0.2 $ 0.3 $ 0.5 $ 0.5 Interest cost 0.4 0.5 0.8 1.1 Amortization: Prior service credit (1.3 ) (1.3 ) (2.7 ) (2.7 ) Net actuarial loss 0.3 0.2 0.7 0.4 Net periodic benefit credit $ (0.4 ) $ (0.3 ) $ (0.7 ) $ (0.7 ) The service cost component is included in Cost of sales and Selling, general and administrative expenses in the Consolidated Statement of Operations. All other components are included in Other income (expense) in the Consolidated Statement of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss attributable to Rockwell Automation by component were (in millions): Three Months Ended March 31, 2020 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Net unrealized gains (losses) on available-for-sale investments, net of tax Total accumulated other comprehensive loss, net of tax Balance as of December 31, 2019 $ (1,253.1 ) $ (315.7 ) $ (15.5 ) $ — $ (1,584.3 ) Other comprehensive income (loss) before reclassifications — (73.4 ) 8.8 — (64.6 ) Amounts reclassified from accumulated other comprehensive loss 27.4 — (4.3 ) — 23.1 Other comprehensive income (loss) 27.4 (73.4 ) 4.5 — (41.5 ) Balance as of March 31, 2020 $ (1,225.7 ) $ (389.1 ) $ (11.0 ) $ — $ (1,625.8 ) Six Months Ended March 31, 2020 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax 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, 2019 $ (1,133.7 ) $ (341.3 ) $ (13.0 ) $ — $ (1,488.0 ) Other comprehensive income (loss) before reclassifications — (51.6 ) 9.7 — (41.9 ) Amounts reclassified from accumulated other comprehensive loss 54.8 — (7.7 ) — 47.1 Other comprehensive income (loss) 54.8 (51.6 ) 2.0 — 5.2 Adoption of accounting standard/other (146.8 ) 3.8 — — — Balance as of March 31, 2020 $ (1,225.7 ) $ (389.1 ) $ (11.0 ) $ — $ (1,625.8 ) Three Months Ended March 31, 2019 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Net unrealized gains (losses) on available-for-sale investments, net of tax Total accumulated other comprehensive loss, net of tax Balance as of December 31, 2018 $ (644.3 ) $ (314.5 ) $ (16.4 ) $ (1.7 ) $ (976.9 ) Other comprehensive income (loss) before reclassifications — 19.0 5.2 0.9 25.1 Amounts reclassified from accumulated other comprehensive loss 14.2 — (2.7 ) — 11.5 Other comprehensive income (loss) 14.2 19.0 2.5 0.9 36.6 Balance as of March 31, 2019 $ (630.1 ) $ (295.5 ) $ (13.9 ) $ (0.8 ) $ (940.3 ) Six Months Ended March 31, 2019 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax 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, 2018 $ (658.1 ) $ (286.0 ) $ 4.4 $ (2.2 ) $ (941.9 ) Other comprehensive income (loss) before reclassifications (0.3 ) (9.5 ) (14.0 ) 1.4 (22.4 ) Amounts reclassified from accumulated other comprehensive loss 28.3 — (4.3 ) — 24.0 Other comprehensive income (loss) 28.0 (9.5 ) (18.3 ) 1.4 1.6 Balance as of March 31, 2019 $ (630.1 ) $ (295.5 ) $ (13.9 ) $ (0.8 ) $ (940.3 ) The reclassifications out of accumulated other comprehensive loss in the Consolidated Statement of Operations were (in millions): Three Months Ended Six Months Ended Affected Line in the Consolidated Statement of Operations 2020 2019 2020 2019 Pension and other postretirement benefit plan adjustments: Amortization of prior service credit $ (1.0 ) $ (1.0 ) $ (2.2 ) $ (2.1 ) (a) Amortization of net actuarial loss 37.1 19.7 74.3 39.4 (a) Settlements (0.7 ) (0.2 ) (1.5 ) (0.4 ) (a) 35.4 18.5 70.6 36.9 Income before income taxes (8.0 ) (4.3 ) (15.8 ) (8.6 ) Income tax provision $ 27.4 $ 14.2 $ 54.8 $ 28.3 Net income attributable to Rockwell Automation Net unrealized losses (gains) on cash flow hedges: Forward exchange contracts $ (0.1 ) $ (0.6 ) $ (0.2 ) $ (0.2 ) Sales Forward exchange contracts (7.0 ) (3.3 ) (12.0 ) (6.5 ) Cost of sales Forward exchange contracts 0.5 — 0.6 0.5 Selling, general and administrative expenses Treasury locks related to 2019 debt issuance 0.6 0.2 1.1 0.2 Interest expense (6.0 ) (3.7 ) (10.5 ) (6.0 ) Income before income taxes 1.7 1.0 2.8 1.7 Income tax provision $ (4.3 ) $ (2.7 ) $ (7.7 ) $ (4.3 ) Net income attributable to Rockwell Automation Total reclassifications $ 23.1 $ 11.5 $ 47.1 $ 24.0 Net income attributable to Rockwell Automation (a) Reclassified from accumulated other comprehensive loss into other income (expense). These components are included in the computation of net periodic benefit cost (credit). See Note 10 in the Consolidated Financial Statements for further information. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Various lawsuits, claims and proceedings have been or may be instituted or asserted against us relating to the conduct of our business, including those pertaining to product liability, environmental, safety and health, intellectual property, employment and contract matters. Although the outcome of litigation cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to us, we believe the disposition of matters that are pending or have been asserted will not have a material effect on our business, financial condition or results of operations. The following outlines additional background for obligations associated with asbestos, divested businesses and intellectual property. 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, including products from divested businesses for which we have agreed to defend and indemnify claims. Currently there are a few thousand claimants in lawsuits that name us as defendants, together with hundreds of other companies. 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. Additionally, we have maintained insurance coverage that includes indemnity and defense costs, over and above self-insured retentions, for many of these claims. 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. We do not believe these liabilities will have a material effect on our business, financial condition or results of operations. 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 March 31, 2020 , 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. |
Leases
Leases | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We have operating leases primarily for real estate, vehicles and equipment. Our leases have remaining lease terms from less than one year to approximately 15 years . We do not have a material amount of finance leases. We elected the package of practical expedients permitted under the transition guidance within the new standard which allows the Company to carry forward the historical assessments of whether contracts are, or contain, leases, lease classification and initial direct costs. We also elected to not record lease ROU assets or lease liabilities for leases with an original term of 12 months or less. We elected to use the remaining lease term for purposes of calculating the incremental borrowing rate upon transition. The components of lease expense were as follows (in millions): Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Operating lease expense (1) $ 25.7 $ 51.0 Variable lease expense (2) 3.6 7.5 Total lease expense $ 29.3 $ 58.5 (1) Operating lease expense includes short-term lease expense which was not material. (2) Variable lease expense includes sublease income which was not material. Supplemental balance sheet information related to leases was as follows (in millions): March 31, 2020 Weighted average remaining lease term 5.9 years Weighted average discount rate 1.98 % Maturities of lease liabilities as of March 31, 2020 , were as follows (in millions): 2020 (excluding the six months ended March 31, 2020) $ 49.4 2021 85.0 2022 65.4 2023 48.1 2024 34.5 2025 21.5 Thereafter 59.8 Total undiscounted lease payments $ 363.7 Less imputed interest (21.8 ) Total operating lease liabilities $ 341.9 Undiscounted maturities of operating leases accounted for under ASC 840 as of September 30, 2019, were as follows (in millions): 2020 $ 90.6 2021 72.6 2022 51.8 2023 36.7 2024 26.4 Thereafter 63.8 Total minimum lease payments $ 341.9 Supplemental cash flow information related to leases was as follows (in millions): Six Months Ended March 31, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 50.3 Operating right-of-use assets obtained in exchange for lease obligations 64.2 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At the end of each interim period, we estimate a base effective tax rate that we expect for the full fiscal year based on our most recent forecast of pre-tax income, permanent book and tax differences and global tax planning strategies. We use this base rate to provide for income taxes on a year-to-date basis, excluding the effect of significant unusual items and items that are reported net of their related tax effects in the period in which they occur. The effective tax rate was 22.4 percent and 11.3 percent in the three and six months ended March 31, 2020 , respectively, compared to 14.0 percent and 18.5 percent in the three and six months ended March 31, 2019 . The effective tax rate was higher than the U.S. statutory rate of 21 percent in the three months ended March 31, 2020 , primarily due to PTC investment adjustments offset by favorable discrete tax items. The effective tax rate was lower than the U.S. statutory rate of 21 percent in the six months ended March 31, 2020 , primarily due to PTC investment adjustments offset by tax benefits recognizable upon the formation of the Sensia joint venture, excess income tax benefits of share-based compensation and other favorable discrete tax items. The effective tax rate was lower than the U.S. statutory rate of 21 percent in the three months ended March 31, 2019 , primarily because of PTC investment adjustments. The effective rate was lower than the U.S. statutory rate of 21 percent in the six months ended March 31, 2019 primarily because we benefited from lower non-U.S. tax rates. Income tax liabilities of $296.0 million and $327.2 million related to the U.S. transition tax under the Tax Act that are payable greater than 12 months from March 31, 2020 , and September 30, 2019 , respectively, are recorded in Other Liabilities in the Consolidated Balance Sheet. 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 2032. Unrecognized Tax Benefits The amount of gross unrecognized tax benefits was $25.6 million and $19.9 million at March 31, 2020 and September 30, 2019 , respectively, of which the entire amount would reduce our effective tax rate if recognized. Accrued interest and penalties related to unrecognized tax benefits were $3.7 million and $3.3 million at March 31, 2020 , and September 30, 2019 , respectively. We recognize interest and penalties related to unrecognized tax benefits in the income tax provision. We believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $24.1 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 $25.7 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 foreign income tax examinations for years before 2009 . |
Business Segment Information
Business Segment Information | 6 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The following tables reflect the sales and operating results of our reportable segments (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Sales Architecture & Software $ 757.1 $ 739.7 $ 1,508.7 $ 1,492.8 Control Products & Solutions 924.2 917.5 1,857.1 1,806.7 Total $ 1,681.3 $ 1,657.2 $ 3,365.8 $ 3,299.5 Segment operating earnings Architecture & Software $ 232.8 $ 209.9 $ 456.5 $ 446.9 Control Products & Solutions 138.7 143.9 254.1 281.8 Total 371.5 353.8 710.6 728.7 Purchase accounting depreciation and amortization (9.5 ) (4.3 ) (19.5 ) (8.4 ) General corporate – net (17.7 ) (26.7 ) (50.5 ) (48.6 ) Non-operating pension and postretirement benefit (cost) credit (8.6 ) 2.6 (17.3 ) 5.2 (Loss) gain on investments (144.8 ) 98.2 (73.8 ) (148.2 ) Valuation adjustments related to the registration of PTC Shares — — — 33.7 Interest (expense) income - net (23.5 ) (21.2 ) (47.5 ) (39.2 ) Income before income taxes $ 167.4 $ 402.4 $ 502.0 $ 523.2 Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before income taxes, interest (expense) income - net, costs related to corporate offices, non-operating pension and postretirement benefit credit (cost), certain corporate initiatives, gains and losses on investments, valuation adjustments related to the 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. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Receivables | Receivables |
Leases | Leases We have operating leases primarily for real estate, vehicles, and equipment. We determine if a contract is, or contains, a lease at contract inception. A right-of-use (ROU) asset and a corresponding lease liability are recognized at commencement for contracts that are, or contain, a lease with an original term greater than 12 months. ROU assets represent our right to use an underlying asset during the lease term, including periods for which renewal options are reasonably certain to be exercised, and lease liabilities represent our obligation to make lease payments arising from the lease. Lease expense is recognized on a straight-line basis over the lease term for operating leases with an original term of 12 months or less. Some leasing arrangements require variable payments that are dependent on usage or may vary for other reasons, such as payments for insurance and tax payments. A portion of our real estate leases is generally subject to annual changes based upon an index. The changes based upon the index are treated as variable lease payments. The variable portion of lease payments is not included in our ROU assets or lease liabilities and is expensed when incurred. We elected to not separate lease and nonlease components of contracts for all underlying asset classes. Accordingly, all expenses associated with a lease contract are accounted for as lease expenses. Lease liabilities are recognized at the contract commencement date based on the present value of remaining lease payments over the lease term. To calculate the lease liabilities we use our incremental borrowing rate. We determine our incremental borrowing rate at the commencement date using our unsecured borrowing rate, adjusted for collateralization and lease term. For leases denominated in a currency other than the U.S. dollar, the collateralized borrowing rate in the foreign currency is determined using the U.S. dollar and foreign currency swap spread. Long-term lease liabilities are presented as Operating lease liabilities and current lease liabilities are included in Other current liabilities in the Consolidated Balance Sheet. ROU assets are recognized at the contract commencement date at the value of the related lease liability, adjusted for any prepayments, lease incentives received and initial direct costs incurred. Operating lease ROU assets are presented as Operating lease right-of-use assets in the Consolidated Balance Sheet. Lease expenses for operating leases are recognized on a straight-line basis over the lease term and recorded in Cost of sales and Selling, general and administrative expenses in the Consolidated Statement of Operations. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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. We adopted the new standard using the modified retrospective transition method, which resulted in an immaterial cumulative-effect adjustment to the opening balance of retained earnings as of October 1, 2019, our adoption date. The amount of lease right-of-use assets and corresponding lease liabilities recorded in the Consolidated Balance Sheet upon adoption was $316 million and $329 million , respectively. We have implemented necessary changes to accounting policies, processes, controls and systems to enable compliance with this new standard. In February 2018, the FASB issued a new standard regarding the reporting of comprehensive loss, which gives entities the option to reclassify tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) stranded in accumulated other comprehensive loss into retained earnings. We adopted the new standard as of October 1, 2019, and elected to reclassify tax effects of $146.8 million from accumulated other comprehensive loss into retained earnings. |
Goodwill and Intangible Assets, Goodwill, Policy | We perform our annual evaluation of goodwill and indefinite life intangible assets for impairment as required by U.S. GAAP at the beginning of the second quarter of each year, or more frequently if events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. For our annual evaluation of goodwill, we may perform a qualitative test to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount in order to determine whether it is necessary to perform a quantitative goodwill impairment test. When performing the quantitative goodwill impairment test, we determine the fair value of each reporting unit under a combination of an income approach derived from discounted cash flows and a market multiples approach using selected comparable public companies. Significant assumptions used in the income approach include: management’s forecasted cash flows, including estimated future revenue growth rates and margins, discount rate, and terminal value. Forecasted future revenue growth and margins are based on management’s best estimate about current and future conditions. Discount rates are determined using weighted average cost of capital adjusted for risk factors specific to the reporting unit level, with comparison to market and industry data. The terminal value is estimated following common methodology of calculating the present value of estimated perpetual cash flow beyond the last projected period assuming constant discount and long-term growth rates. Significant assumptions used in the market multiples approach include selection of the comparable public companies and calculation of the appropriate market multiples. |
Income Taxes | Income Taxes At the end of each interim period, we estimate a base effective tax rate that we expect for the full fiscal year based on our most recent forecast of pre-tax income, permanent book and tax differences and global tax planning strategies. We use this base rate to provide for income taxes on a year-to-date basis, excluding the effect of significant unusual items and items that are reported net of their related tax effects in the period in which they occur. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts): Three Months Ended Six Months Ended 2020 2019 2020 2019 Net income attributable to Rockwell Automation $ 132.2 $ 346.0 $ 442.9 $ 426.3 Less: Allocation to participating securities — (0.4 ) (0.4 ) (0.4 ) Net income available to common shareowners $ 132.2 $ 345.6 $ 442.5 $ 425.9 Basic weighted average outstanding shares 116.0 118.9 115.8 119.6 Effect of dilutive securities Stock options 0.6 1.0 0.8 1.0 Performance shares — 0.1 — 0.1 Diluted weighted average outstanding shares 116.6 120.0 116.6 120.7 Earnings per share: Basic $ 1.14 $ 2.91 $ 3.82 $ 3.56 Diluted $ 1.13 $ 2.88 $ 3.80 $ 3.53 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue The following series of tables present our revenue disaggregation by geographic region and types of products or services, and also present these disaggregation categories for our two operating segments. We attribute sales to the geographic regions based on the country of destination. The following reflects the disaggregation of our revenues by operating segment and by geographic region (in millions): Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Architecture & Software Control Products & Solutions Total Architecture & Software Control Products & Solutions Total North America $ 447.9 $ 574.2 $ 1,022.1 $ 888.1 $ 1,140.9 $ 2,029.0 Europe, Middle East and Africa (EMEA) 162.3 171.3 333.6 311.2 332.5 643.7 Asia Pacific 98.8 102.0 200.8 210.2 220.2 430.4 Latin America 48.1 76.7 124.8 99.2 163.5 262.7 Total Company Sales $ 757.1 $ 924.2 $ 1,681.3 $ 1,508.7 $ 1,857.1 $ 3,365.8 Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Architecture & Software Control Products & Solutions Total Architecture & Software Control Products & Solutions Total North America $ 423.1 $ 564.0 $ 987.1 $ 865.9 $ 1,120.0 $ 1,985.9 Europe, Middle East and Africa (EMEA) 176.0 155.1 331.1 331.5 294.0 625.5 Asia Pacific 97.8 116.9 214.7 199.1 230.0 429.1 Latin America 42.8 81.5 124.3 96.3 162.7 259.0 Total Company Sales $ 739.7 $ 917.5 $ 1,657.2 $ 1,492.8 $ 1,806.7 $ 3,299.5 The following reflects the disaggregation of our revenues by operating segment and by major types of products or services (in millions): Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Architecture & Software Control Products & Solutions Total Architecture & Software Control Products & Solutions Total Products $ 757.1 $ 379.0 $ 1,136.1 $ 1,508.7 $ 767.7 $ 2,276.4 Solutions & Services — 545.2 545.2 — 1,089.4 1,089.4 Total Company Sales $ 757.1 $ 924.2 $ 1,681.3 $ 1,508.7 $ 1,857.1 $ 3,365.8 Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Architecture & Software Control Products & Solutions Total Architecture & Software Control Products & Solutions Total Products $ 739.7 $ 372.3 $ 1,112.0 $ 1,492.8 $ 745.2 $ 2,238.0 Solutions & Services — 545.2 545.2 — 1,061.5 1,061.5 Total Company Sales $ 739.7 $ 917.5 $ 1,657.2 $ 1,492.8 $ 1,806.7 $ 3,299.5 |
Contract Balances | Below is a summary of our contract liabilities balance: March 31, 2020 March 31, 2019 Balance as of beginning of fiscal year $ 275.6 $ 268.6 Balance as of end of period 326.2 308.9 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Activity | The number of shares granted to employees and non-employee directors and the weighted average fair value per share during the periods presented were (in thousands, except per share amounts): Six Months Ended March 31, 2020 2019 Grants Wtd. Avg. Share Fair Value Grants Wtd. Avg. Share Fair Value Stock options 970 $ 35.78 946 $ 32.48 Performance shares 37 265.04 57 155.04 Restricted stock and restricted stock units 49 192.60 41 171.03 Unrestricted stock 7 171.51 6 183.02 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of (in millions): March 31, September 30, Finished goods $ 280.8 $ 223.7 Work in process 174.9 178.4 Raw materials 173.3 173.6 Inventories $ 629.0 $ 575.7 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation is as follows (in millions): Purchase Price Allocation Cash $ 16.2 Accounts receivable 22.6 Inventory 62.6 Other current assets 1.2 Property, plant and equipment 9.8 Other assets 6.2 Goodwill 291.7 Intangible assets 254.1 Total assets acquired 664.4 Less: Liabilities assumed (37.0 ) Less: Deferred income taxes (2.7 ) Less: Noncontrolling interest portion (293.8 ) Net assets acquired $ 330.9 Purchase consideration Cash $ 250.0 Noncontrolling interest portion of Rockwell Automation's contributed business 21.5 Additional paid in capital adjustment 52.4 Other 7.0 Net purchase consideration $ 330.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the six months ended March 31, 2020 , are (in millions): Architecture & Software Control Products & Solutions Total Balance as of September 30, 2019 $ 432.3 $ 638.8 $ 1,071.1 Acquisition of businesses — 304.5 304.5 Translation (3.5 ) (9.8 ) (13.3 ) Balance as of March 31, 2020 $ 428.8 $ 933.5 $ 1,362.3 |
Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class | Other intangible assets consist of (in millions): March 31, 2020 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 190.6 $ 133.4 $ 57.2 Customer relationships 305.4 77.6 227.8 Technology 152.0 75.1 76.9 Trademarks 53.9 27.5 26.4 Other 13.8 12.8 1.0 Total amortized intangible assets 715.7 326.4 389.3 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 759.4 $ 326.4 $ 433.0 September 30, 2019 Carrying Amount Accumulated Amortization Net Amortized intangible assets: Computer software products $ 190.6 $ 128.3 $ 62.3 Customer relationships 110.5 69.2 41.3 Technology 110.4 69.5 40.9 Trademarks 31.4 26.4 5.0 Other 10.6 9.7 0.9 Total amortized intangible assets 453.5 303.1 150.4 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 497.2 $ 303.1 $ 194.1 |
Long-term and Short-term Debt -
Long-term and Short-term Debt - Summary of Long-term Debt Instruments (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | March 31, September 30, 2019 2.050% notes, payable in March 2020 $ — $ 299.4 2.875% notes, payable in March 2025 321.0 307.6 6.70% debentures, payable in January 2028 250.0 250.0 3.500% notes, payable in March 2029 425.0 425.0 6.25% debentures, payable in December 2037 250.0 250.0 4.200% notes, payable in March 2049 575.0 575.0 5.20% debentures, payable in January 2098 200.0 200.0 Unamortized discount and other (50.8 ) (50.1 ) Total 1,970.2 2,256.9 Less current portion — (300.5 ) Long-term debt $ 1,970.2 $ 1,956.4 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consist of (in millions): March 31, September 30, Unrealized losses on foreign exchange contracts $ 19.0 $ 5.4 Product warranty obligations 22.8 25.2 Taxes other than income taxes 52.9 43.8 Accrued interest 15.1 15.5 Income taxes payable 27.4 62.9 Operating lease liabilities 88.4 — Other 56.2 75.1 Other current liabilities $ 281.8 $ 227.9 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment | Our investments consist of (in millions): March 31, September 30, Fixed income securities $ 0.6 $ 43.9 Equity securities 647.7 721.5 Other 68.6 68.1 Total investments 716.9 833.5 Less: Short-term investments (1) (0.6 ) (39.6 ) Long-term investments $ 716.3 $ 793.9 (1) Short-term investments are included in Other current assets in the Consolidated Balance Sheet. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost are (in millions): Pension Benefits Three Months Ended Six Months Ended 2020 2019 2020 2019 Service cost $ 22.8 $ 19.5 $ 45.6 $ 39.1 Interest cost 34.1 39.6 68.3 79.2 Expected return on plan assets (61.2 ) (61.2 ) (122.4 ) (122.4 ) Amortization: Prior service cost 0.3 0.3 0.5 0.6 Net actuarial loss 36.8 19.5 73.6 39.0 Settlements (0.7 ) (0.2 ) (1.5 ) (0.4 ) Net periodic benefit cost $ 32.1 $ 17.5 $ 64.1 $ 35.1 Other Postretirement Benefits Three Months Ended Six Months Ended 2020 2019 2020 2019 Service cost $ 0.2 $ 0.3 $ 0.5 $ 0.5 Interest cost 0.4 0.5 0.8 1.1 Amortization: Prior service credit (1.3 ) (1.3 ) (2.7 ) (2.7 ) Net actuarial loss 0.3 0.2 0.7 0.4 Net periodic benefit credit $ (0.4 ) $ (0.3 ) $ (0.7 ) $ (0.7 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss attributable to Rockwell Automation by component were (in millions): Three Months Ended March 31, 2020 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Net unrealized gains (losses) on available-for-sale investments, net of tax Total accumulated other comprehensive loss, net of tax Balance as of December 31, 2019 $ (1,253.1 ) $ (315.7 ) $ (15.5 ) $ — $ (1,584.3 ) Other comprehensive income (loss) before reclassifications — (73.4 ) 8.8 — (64.6 ) Amounts reclassified from accumulated other comprehensive loss 27.4 — (4.3 ) — 23.1 Other comprehensive income (loss) 27.4 (73.4 ) 4.5 — (41.5 ) Balance as of March 31, 2020 $ (1,225.7 ) $ (389.1 ) $ (11.0 ) $ — $ (1,625.8 ) Six Months Ended March 31, 2020 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax 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, 2019 $ (1,133.7 ) $ (341.3 ) $ (13.0 ) $ — $ (1,488.0 ) Other comprehensive income (loss) before reclassifications — (51.6 ) 9.7 — (41.9 ) Amounts reclassified from accumulated other comprehensive loss 54.8 — (7.7 ) — 47.1 Other comprehensive income (loss) 54.8 (51.6 ) 2.0 — 5.2 Adoption of accounting standard/other (146.8 ) 3.8 — — — Balance as of March 31, 2020 $ (1,225.7 ) $ (389.1 ) $ (11.0 ) $ — $ (1,625.8 ) Three Months Ended March 31, 2019 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Net unrealized gains (losses) on available-for-sale investments, net of tax Total accumulated other comprehensive loss, net of tax Balance as of December 31, 2018 $ (644.3 ) $ (314.5 ) $ (16.4 ) $ (1.7 ) $ (976.9 ) Other comprehensive income (loss) before reclassifications — 19.0 5.2 0.9 25.1 Amounts reclassified from accumulated other comprehensive loss 14.2 — (2.7 ) — 11.5 Other comprehensive income (loss) 14.2 19.0 2.5 0.9 36.6 Balance as of March 31, 2019 $ (630.1 ) $ (295.5 ) $ (13.9 ) $ (0.8 ) $ (940.3 ) Six Months Ended March 31, 2019 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax 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, 2018 $ (658.1 ) $ (286.0 ) $ 4.4 $ (2.2 ) $ (941.9 ) Other comprehensive income (loss) before reclassifications (0.3 ) (9.5 ) (14.0 ) 1.4 (22.4 ) Amounts reclassified from accumulated other comprehensive loss 28.3 — (4.3 ) — 24.0 Other comprehensive income (loss) 28.0 (9.5 ) (18.3 ) 1.4 1.6 Balance as of March 31, 2019 $ (630.1 ) $ (295.5 ) $ (13.9 ) $ (0.8 ) $ (940.3 ) |
Reclassification out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive loss in the Consolidated Statement of Operations were (in millions): Three Months Ended Six Months Ended Affected Line in the Consolidated Statement of Operations 2020 2019 2020 2019 Pension and other postretirement benefit plan adjustments: Amortization of prior service credit $ (1.0 ) $ (1.0 ) $ (2.2 ) $ (2.1 ) (a) Amortization of net actuarial loss 37.1 19.7 74.3 39.4 (a) Settlements (0.7 ) (0.2 ) (1.5 ) (0.4 ) (a) 35.4 18.5 70.6 36.9 Income before income taxes (8.0 ) (4.3 ) (15.8 ) (8.6 ) Income tax provision $ 27.4 $ 14.2 $ 54.8 $ 28.3 Net income attributable to Rockwell Automation Net unrealized losses (gains) on cash flow hedges: Forward exchange contracts $ (0.1 ) $ (0.6 ) $ (0.2 ) $ (0.2 ) Sales Forward exchange contracts (7.0 ) (3.3 ) (12.0 ) (6.5 ) Cost of sales Forward exchange contracts 0.5 — 0.6 0.5 Selling, general and administrative expenses Treasury locks related to 2019 debt issuance 0.6 0.2 1.1 0.2 Interest expense (6.0 ) (3.7 ) (10.5 ) (6.0 ) Income before income taxes 1.7 1.0 2.8 1.7 Income tax provision $ (4.3 ) $ (2.7 ) $ (7.7 ) $ (4.3 ) Net income attributable to Rockwell Automation Total reclassifications $ 23.1 $ 11.5 $ 47.1 $ 24.0 Net income attributable to Rockwell Automation (a) Reclassified from accumulated other comprehensive loss into other income (expense). These components are included in the computation of net periodic benefit cost (credit). See Note 10 in the Consolidated Financial Statements for further information. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | Supplemental cash flow information related to leases was as follows (in millions): Six Months Ended March 31, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 50.3 Operating right-of-use assets obtained in exchange for lease obligations 64.2 The components of lease expense were as follows (in millions): Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Operating lease expense (1) $ 25.7 $ 51.0 Variable lease expense (2) 3.6 7.5 Total lease expense $ 29.3 $ 58.5 (1) Operating lease expense includes short-term lease expense which was not material. (2) Variable lease expense includes sublease income which was not material. |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in millions): March 31, 2020 Weighted average remaining lease term 5.9 years Weighted average discount rate 1.98 % |
Operating Lease Maturity | Maturities of lease liabilities as of March 31, 2020 , were as follows (in millions): 2020 (excluding the six months ended March 31, 2020) $ 49.4 2021 85.0 2022 65.4 2023 48.1 2024 34.5 2025 21.5 Thereafter 59.8 Total undiscounted lease payments $ 363.7 Less imputed interest (21.8 ) Total operating lease liabilities $ 341.9 |
Leases of Lessee Disclosure | Undiscounted maturities of operating leases accounted for under ASC 840 as of September 30, 2019, were as follows (in millions): 2020 $ 90.6 2021 72.6 2022 51.8 2023 36.7 2024 26.4 Thereafter 63.8 Total minimum lease payments $ 341.9 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables reflect the sales and operating results of our reportable segments (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Sales Architecture & Software $ 757.1 $ 739.7 $ 1,508.7 $ 1,492.8 Control Products & Solutions 924.2 917.5 1,857.1 1,806.7 Total $ 1,681.3 $ 1,657.2 $ 3,365.8 $ 3,299.5 Segment operating earnings Architecture & Software $ 232.8 $ 209.9 $ 456.5 $ 446.9 Control Products & Solutions 138.7 143.9 254.1 281.8 Total 371.5 353.8 710.6 728.7 Purchase accounting depreciation and amortization (9.5 ) (4.3 ) (19.5 ) (8.4 ) General corporate – net (17.7 ) (26.7 ) (50.5 ) (48.6 ) Non-operating pension and postretirement benefit (cost) credit (8.6 ) 2.6 (17.3 ) 5.2 (Loss) gain on investments (144.8 ) 98.2 (73.8 ) (148.2 ) Valuation adjustments related to the registration of PTC Shares — — — 33.7 Interest (expense) income - net (23.5 ) (21.2 ) (47.5 ) (39.2 ) Income before income taxes $ 167.4 $ 402.4 $ 502.0 $ 523.2 |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies - Narrative (Details) shares in Millions | Apr. 20, 2020USD ($) | Oct. 01, 2019USD ($) | Mar. 31, 2020USD ($)shares | Mar. 31, 2019shares | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Allowance for doubtful accounts | $ 20,700,000 | $ 20,700,000 | $ 17,400,000 | ||||
Allowance for certain customer returns, rebates and incentives | $ 9,300,000 | 9,300,000 | $ 12,400,000 | ||||
Antidilutive share-based compensation awards (in shares) | shares | 2.3 | 1.8 | |||||
Capital expenditures in accounts payable or other current liabilities at period end | 18,500,000 | $ 11,100,000 | |||||
Outstanding purchase of common stock recorded in accounts payable | 2,000,000 | $ 11,900,000 | |||||
Operating lease right-of-use assets | $ 318,500,000 | 318,500,000 | |||||
Operating lease liability | $ 341,900,000 | $ 341,900,000 | |||||
Accounting Standards Update 2016-02 | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Operating lease right-of-use assets | $ 316,000,000 | ||||||
Operating lease liability | 329,000,000 | ||||||
Accumulated other comprehensive loss | Accounting Standards Update 2016-02 | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Reclassification from AOCI to retained earnings | $ 146,800,000 | ||||||
Subsequent Event | Note Payable | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Long-term debt issued | $ 400,000,000 | ||||||
Debt instrument, term | 364 days | ||||||
Ratio of EBITDA to interest expense | 3 | ||||||
Subsequent Event | Notes | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Borrowing capacity | $ 1,250,000,000 |
Basis of Presentation and Acc_5
Basis of Presentation and Accounting Policies - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciled Basic and Diluted EPS | ||||
Net income attributable to Rockwell Automation | $ 132.2 | $ 346 | $ 442.9 | $ 426.3 |
Less: Allocation to participating securities | 0 | (0.4) | (0.4) | (0.4) |
Net income available to common shareowners | $ 132.2 | $ 345.6 | $ 442.5 | $ 425.9 |
Basic weighted average outstanding shares (in shares) | 116 | 118.9 | 115.8 | 119.6 |
Effect of dilutive securities | ||||
Stock options (in shares) | 0.6 | 1 | 0.8 | 1 |
Performance shares (in shares) | 0 | 0.1 | 0 | 0.1 |
Diluted weighted average outstanding shares (in shares) | 116.6 | 120 | 116.6 | 120.7 |
Earnings per share: | ||||
Basic (in usd per share) | $ 1.14 | $ 2.91 | $ 3.82 | $ 3.56 |
Diluted (in usd per share) | $ 1.13 | $ 2.88 | $ 3.80 | $ 3.53 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2020USD ($)segment | |
Revenue from Contract with Customer [Abstract] | |
Number of operating segments | segment | 2 |
Contract with customer, liability, revenue recognized | $ | $ 171.3 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) $ in Millions | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue to be recognized in future periods | $ 470 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue to be recognized in future periods | $ 310 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue to be recognized in future periods, expected timing of satisfaction, period | 12 months |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Operating Segment and by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,681.3 | $ 1,657.2 | $ 3,365.8 | $ 3,299.5 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,022.1 | 987.1 | 2,029 | 1,985.9 |
Europe, Middle East and Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 333.6 | 331.1 | 643.7 | 625.5 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 200.8 | 214.7 | 430.4 | 429.1 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 124.8 | 124.3 | 262.7 | 259 |
Architecture & Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 757.1 | 739.7 | 1,508.7 | 1,492.8 |
Architecture & Software | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 447.9 | 423.1 | 888.1 | 865.9 |
Architecture & Software | Europe, Middle East and Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 162.3 | 176 | 311.2 | 331.5 |
Architecture & Software | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 98.8 | 97.8 | 210.2 | 199.1 |
Architecture & Software | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 48.1 | 42.8 | 99.2 | 96.3 |
Control Products & Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 924.2 | 917.5 | 1,857.1 | 1,806.7 |
Control Products & Solutions | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 574.2 | 564 | 1,140.9 | 1,120 |
Control Products & Solutions | Europe, Middle East and Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 171.3 | 155.1 | 332.5 | 294 |
Control Products & Solutions | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 102 | 116.9 | 220.2 | 230 |
Control Products & Solutions | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 76.7 | $ 81.5 | $ 163.5 | $ 162.7 |
Revenue Recognition - Disaggr_2
Revenue Recognition - Disaggregation of Revenue by Operating Segment and Major Types of Products or Services (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,681.3 | $ 1,657.2 | $ 3,365.8 | $ 3,299.5 |
Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,136.1 | 1,112 | 2,276.4 | 2,238 |
Solutions & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 545.2 | 545.2 | 1,089.4 | 1,061.5 |
Architecture & Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 757.1 | 739.7 | 1,508.7 | 1,492.8 |
Architecture & Software | Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 757.1 | 739.7 | 1,508.7 | 1,492.8 |
Architecture & Software | Solutions & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Control Products & Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 924.2 | 917.5 | 1,857.1 | 1,806.7 |
Control Products & Solutions | Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 379 | 372.3 | 767.7 | 745.2 |
Control Products & Solutions | Solutions & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 545.2 | $ 545.2 | $ 1,089.4 | $ 1,061.5 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 |
Contract With Customer, Liability [Roll Forward] | |||
Balance as of beginning of fiscal year | $ 275.6 | $ 308.9 | $ 268.6 |
Balance as of end of period | $ 326.2 | $ 275.6 | $ 308.9 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-Based Compensation (Textual) [Abstract] | ||||
Pre-tax share-based compensation expense | $ 10.9 | $ 10.8 | $ 22.4 | $ 21.8 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants (in shares) | 970 | 946 | ||
Wtd. Avg. Share Fair Value (usd per share) | $ 35.78 | $ 32.48 | ||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants (in shares) | 37 | 57 | ||
Wtd. Avg. Share Fair Value (usd per share) | $ 265.04 | $ 155.04 | ||
Restricted stock and restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants (in shares) | 49 | 41 | ||
Wtd. Avg. Share Fair Value (usd per share) | $ 192.60 | $ 171.03 | ||
Unrestricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants (in shares) | 7 | 6 | ||
Wtd. Avg. Share Fair Value (usd per share) | $ 171.51 | $ 183.02 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Inventories | ||
Finished goods | $ 280.8 | $ 223.7 |
Work in process | 174.9 | 178.4 |
Raw materials | 173.3 | 173.6 |
Inventories | $ 629 | $ 575.7 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 53.00% | ||
Cash | $ 250 | ||
Noncontrolling interest portion of Rockwell Automation's contributed business | $ 293.8 | ||
Schlumberger | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 47.00% | ||
Sensia | |||
Business Acquisition [Line Items] | |||
Cash | $ 250 | ||
Finite-lived intangible assets acquired, discount rate | 11.00% | ||
Noncontrolling interest portion of Rockwell Automation's contributed business | $ 21.5 | ||
Pro forma revenue | $ 1,700 | $ 3,400 | |
Customer Relationships, Technology, Patents | Sensia | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 254.1 | ||
Acquired finite-lived intangible assets, weighted average useful life | 11 years | ||
Minimum | Sensia | |||
Business Acquisition [Line Items] | |||
Customer attrition rate | 7.50% | ||
Minimum | Technology and Trademarks | Sensia | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | ||
Maximum | Sensia | |||
Business Acquisition [Line Items] | |||
Customer attrition rate | 25.00% | ||
Maximum | Technology and Trademarks | Sensia | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 15 years |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Oct. 01, 2019 | Mar. 31, 2020 | Sep. 30, 2019 |
Purchase Price Allocation | |||
Goodwill | $ 1,362.3 | $ 1,071.1 | |
Purchase consideration | |||
Cash | $ 250 | ||
Noncontrolling interest portion of Rockwell Automation's contributed business | 293.8 | ||
Sensia | |||
Purchase Price Allocation | |||
Cash | 16.2 | ||
Accounts receivable | 22.6 | ||
Inventory | 62.6 | ||
Other current assets | 1.2 | ||
Property, plant and equipment | 9.8 | ||
Other assets | 6.2 | ||
Goodwill | 291.7 | ||
Intangible assets | 254.1 | ||
Total assets acquired | 664.4 | ||
Less: Liabilities assumed | (37) | ||
Less: Deferred income taxes | (2.7) | ||
Less: Noncontrolling interest portion | (293.8) | ||
Net assets acquired | 330.9 | ||
Purchase consideration | |||
Cash | 250 | ||
Noncontrolling interest portion of Rockwell Automation's contributed business | 21.5 | ||
Additional paid in capital adjustment | 52.4 | ||
Other | 7 | ||
Net purchase consideration | $ 330.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill | |
Balance at beginning of period | $ 1,071.1 |
Acquisition of businesses | 304.5 |
Translation | (13.3) |
Balance at end of period | 1,362.3 |
Architecture & Software | |
Goodwill | |
Balance at beginning of period | 432.3 |
Acquisition of businesses | 0 |
Translation | (3.5) |
Balance at end of period | 428.8 |
Control Products & Solutions | |
Goodwill | |
Balance at beginning of period | 638.8 |
Acquisition of businesses | 304.5 |
Translation | (9.8) |
Balance at end of period | $ 933.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2019 | |
Other intangible assets | ||
Amortized intangible assets, carrying amount | $ 715,700,000 | $ 453,500,000 |
Amortized intangible assets, accumulated amortization | 326,400,000 | 303,100,000 |
Amortized intangible assets, net | 389,300,000 | 150,400,000 |
Total, carrying amount | 759,400,000 | 497,200,000 |
Total, net | 433,000,000 | 194,100,000 |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||
Estimated amortization expense in 2020 | 47,900,000 | |
Estimated amortization expense in 2021 | 47,200,000 | |
Estimated amortization expense in 2022 | 44,300,000 | |
Estimated amortization expense in 2023 | 43,100,000 | |
Estimated amortization expense in 2024 | 40,100,000 | |
Asset impairment charges | 0 | |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Allen-Bradley® trademark not subject to amortization | 43,700,000 | 43,700,000 |
Computer software products | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 190,600,000 | 190,600,000 |
Amortized intangible assets, accumulated amortization | 133,400,000 | 128,300,000 |
Amortized intangible assets, net | 57,200,000 | 62,300,000 |
Customer relationships | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 305,400,000 | 110,500,000 |
Amortized intangible assets, accumulated amortization | 77,600,000 | 69,200,000 |
Amortized intangible assets, net | 227,800,000 | 41,300,000 |
Technology | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 152,000,000 | 110,400,000 |
Amortized intangible assets, accumulated amortization | 75,100,000 | 69,500,000 |
Amortized intangible assets, net | 76,900,000 | 40,900,000 |
Trademarks | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 53,900,000 | 31,400,000 |
Amortized intangible assets, accumulated amortization | 27,500,000 | 26,400,000 |
Amortized intangible assets, net | 26,400,000 | 5,000,000 |
Other | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 13,800,000 | 10,600,000 |
Amortized intangible assets, accumulated amortization | 12,800,000 | 9,700,000 |
Amortized intangible assets, net | $ 1,000,000 | $ 900,000 |
Long-term and Short-term Debt_2
Long-term and Short-term Debt - Summary of Long Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Debt Instrument [Line Items] | ||
Unamortized discount and other | $ (50.8) | $ (50.1) |
Total | 1,970.2 | 2,256.9 |
Less current portion | 0 | (300.5) |
Long-term debt | 1,970.2 | 1,956.4 |
2.050% notes, payable in March 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | 299.4 |
Stated interest rate | 2.05% | |
2.875% notes, payable in March 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 321 | 307.6 |
Stated interest rate | 2.875% | |
6.70% debentures, payable in January 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 250 | 250 |
Stated interest rate | 6.70% | |
3.500% notes, payable in March 2029 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 425 | 425 |
Stated interest rate | 3.50% | |
6.25% debentures, payable in December 2037 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 250 | 250 |
Stated interest rate | 6.25% | |
4.200% notes, payable in March 2049 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 575 | 575 |
Stated interest rate | 4.20% | |
5.20% debentures, payable in January 2098 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 200 | $ 200 |
Stated interest rate | 5.20% |
Long-term and Short-term Debt_3
Long-term and Short-term Debt - Narrative (Details) - USD ($) | Mar. 31, 2020 | Sep. 30, 2019 |
Short-term Debt [Abstract] | ||
Commercial paper borrowings outstanding | $ 58,000,000 | $ 0 |
Short-term debt | $ 81,500,000 | $ 0 |
Weighted average interest rate of commercial paper outstanding | 2.40% | |
2.050% notes, payable in March 2020 | ||
Long-term Debt, Current Maturities [Abstract] | ||
Long-term debt issued | $ 300,000,000 | |
Stated interest rate | 2.05% | |
Schlumberger | ||
Short-term Debt [Abstract] | ||
Short-term debt | $ 23,500,000 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Other current liabilities | ||
Unrealized losses on foreign exchange contracts | $ 19 | $ 5.4 |
Product warranty obligations | 22.8 | 25.2 |
Taxes other than income taxes | 52.9 | 43.8 |
Accrued interest | 15.1 | 15.5 |
Income taxes payable | 27.4 | 62.9 |
Operating lease liabilities | 88.4 | |
Other | 56.2 | 75.1 |
Other current liabilities | $ 281.8 | $ 227.9 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Fixed income securities | $ 0.6 | $ 43.9 |
Equity securities | 647.7 | 721.5 |
Other | 68.6 | 68.1 |
Total investments | 716.9 | 833.5 |
Less: Short-term investments | (0.6) | (39.6) |
Long-term investments | $ 716.3 | $ 793.9 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 19, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 |
Subsidiary, Sale of Stock [Line Items] | ||||||
Equity securities | $ 647.7 | $ 647.7 | $ 721.5 | |||
Change in fair value of investments | (73.8) | $ (114.5) | ||||
PTC | ||||||
Subsidiary, Sale of Stock [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 | |||||
Purchase of stock purchase period | 3 years | |||||
Sale of stock, subsequent trading period | 90 days | |||||
Equity securities | 647.7 | 647.7 | ||||
Change in fair value of investments | $ (144.8) | $ 98.2 | $ (73.8) | $ (114.5) | ||
PTC | Minimum | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Percentage of total outstanding common stock, that can be traded in future periods | 1.00% | |||||
PTC | Maximum | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Percentage of total outstanding common stock, that can be traded in future periods | 2.00% |
Retirement Benefits - Component
Retirement Benefits - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||||
Components of net periodic benefit cost (income) | ||||
Service cost | $ 22.8 | $ 19.5 | $ 45.6 | $ 39.1 |
Interest cost | 34.1 | 39.6 | 68.3 | 79.2 |
Expected return on plan assets | (61.2) | (61.2) | (122.4) | (122.4) |
Amortization: | ||||
Prior service cost | 0.3 | 0.3 | 0.5 | 0.6 |
Net actuarial loss | 36.8 | 19.5 | 73.6 | 39 |
Settlements | (0.7) | (0.2) | (1.5) | (0.4) |
Net periodic benefit credit | 32.1 | 17.5 | 64.1 | 35.1 |
Other Postretirement Benefits | ||||
Components of net periodic benefit cost (income) | ||||
Service cost | 0.2 | 0.3 | 0.5 | 0.5 |
Interest cost | 0.4 | 0.5 | 0.8 | 1.1 |
Amortization: | ||||
Prior service cost | (1.3) | (1.3) | (2.7) | (2.7) |
Net actuarial loss | 0.3 | 0.2 | 0.7 | 0.4 |
Net periodic benefit credit | $ (0.4) | $ (0.3) | $ (0.7) | $ (0.7) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Oct. 01, 2019 | Oct. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | $ 1,036,500,000 | $ 1,274,300,000 | $ 404,200,000 | $ 1,617,500,000 | ||
Other comprehensive (loss) income | (42,400,000) | 36,600,000 | 4,600,000 | 1,600,000 | ||
Adoption of accounting standard/other | $ 2,200,000 | $ 6,100,000 | ||||
Balance at end of period | 937,900,000 | 1,336,300,000 | 937,900,000 | 1,336,300,000 | ||
Total accumulated other comprehensive loss, net of tax | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | (1,584,300,000) | (976,900,000) | (1,488,000,000) | (941,900,000) | ||
Other comprehensive income (loss) before reclassifications | (64,600,000) | 25,100,000 | (41,900,000) | (22,400,000) | ||
Amounts reclassified from accumulated other comprehensive loss | 23,100,000 | 11,500,000 | 47,100,000 | 24,000,000 | ||
Other comprehensive (loss) income | (41,500,000) | 36,600,000 | 5,200,000 | 1,600,000 | ||
Adoption of accounting standard/other | (146,800,000) | |||||
Balance at end of period | (1,625,800,000) | (940,300,000) | (1,625,800,000) | (940,300,000) | ||
Pension and other postretirement benefit plan adjustments, net of tax | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | (1,253,100,000) | (644,300,000) | (1,133,700,000) | (658,100,000) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | (300,000) | ||
Amounts reclassified from accumulated other comprehensive loss | 27,400,000 | 14,200,000 | 54,800,000 | 28,300,000 | ||
Other comprehensive (loss) income | 27,400,000 | 14,200,000 | 54,800,000 | 28,000,000 | ||
Adoption of accounting standard/other | (146,800,000) | |||||
Balance at end of period | (1,225,700,000) | (630,100,000) | (1,225,700,000) | (630,100,000) | ||
Accumulated currency translation adjustments, net of tax | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | (315,700,000) | (314,500,000) | (341,300,000) | (286,000,000) | ||
Other comprehensive income (loss) before reclassifications | (73,400,000) | 19,000,000 | (51,600,000) | (9,500,000) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | ||
Other comprehensive (loss) income | (73,400,000) | 19,000,000 | (51,600,000) | (9,500,000) | ||
Adoption of accounting standard/other | $ 3,800,000 | |||||
Balance at end of period | (389,100,000) | (295,500,000) | (389,100,000) | (295,500,000) | ||
Net unrealized gains (losses) on cash flow hedges, net of tax | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | (15,500,000) | (16,400,000) | (13,000,000) | 4,400,000 | ||
Other comprehensive income (loss) before reclassifications | 8,800,000 | 5,200,000 | 9,700,000 | (14,000,000) | ||
Amounts reclassified from accumulated other comprehensive loss | (4,300,000) | (2,700,000) | (7,700,000) | (4,300,000) | ||
Other comprehensive (loss) income | 4,500,000 | 2,500,000 | 2,000,000 | (18,300,000) | ||
Balance at end of period | (11,000,000) | (13,900,000) | (11,000,000) | (13,900,000) | ||
Net unrealized gains (losses) on available-for-sale investments, net of tax | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | 0 | (1,700,000) | 0 | (2,200,000) | ||
Other comprehensive income (loss) before reclassifications | 0 | 900,000 | 0 | 1,400,000 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | ||
Other comprehensive (loss) income | 0 | 900,000 | 0 | 1,400,000 | ||
Balance at end of period | $ 0 | $ (800,000) | $ 0 | $ (800,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications out of Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | $ 167.4 | $ 402.4 | $ 502 | $ 523.2 |
Sales | 1,681.3 | 1,657.2 | 3,365.8 | 3,299.5 |
Cost of sales | (982.5) | (949) | (1,964.1) | (1,852.6) |
Selling, general and administrative expenses | 352 | 385 | 755.2 | 771.7 |
Treasury locks related to 2019 debt issuance | 25.5 | 23.7 | 51.9 | 44.4 |
Income tax provision | (37.5) | (56.4) | (56.7) | (96.9) |
Net income attributable to Rockwell Automation | 132.2 | 346 | 442.9 | 426.3 |
Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income attributable to Rockwell Automation | 23.1 | 11.5 | 47.1 | 24 |
Pension and other postretirement benefit plan adjustments [Member] | Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | 35.4 | 18.5 | 70.6 | 36.9 |
Income tax provision | (8) | (4.3) | (15.8) | (8.6) |
Net income attributable to Rockwell Automation | 27.4 | 14.2 | 54.8 | 28.3 |
Amortization of prior service credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (1) | (1) | (2.2) | (2.1) |
Amortization of net actuarial loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | 37.1 | 19.7 | 74.3 | 39.4 |
Settlements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (0.7) | (0.2) | (1.5) | (0.4) |
Net unrealized gains (losses) on cash flow hedges, net of tax | Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (6) | (3.7) | (10.5) | (6) |
Income tax provision | 1.7 | 1 | 2.8 | 1.7 |
Net income attributable to Rockwell Automation | (4.3) | (2.7) | (7.7) | (4.3) |
Net unrealized gains (losses) on cash flow hedges, net of tax | Forward exchange contracts | Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Sales | (0.1) | (0.6) | (0.2) | (0.2) |
Cost of sales | (7) | (3.3) | (12) | (6.5) |
Selling, general and administrative expenses | 0.5 | 0 | 0.6 | 0.5 |
Net unrealized gains (losses) on cash flow hedges, net of tax | Treasury locks related to 2019 debt issuance | Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Treasury locks related to 2019 debt issuance | $ 0.6 | $ 0.2 | $ 1.1 | $ 0.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2020 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 15 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 25.7 | $ 51 |
Variable lease expense | 3.6 | 7.5 |
Total lease expense | $ 29.3 | $ 58.5 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term | 5 years 10 months 24 days |
Weighted average discount rate | 1.98% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity ASU 842 (Details) $ in Millions | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
2020 (excluding the six months ended March 31, 2020) | $ 49.4 |
2021 | 85 |
2022 | 65.4 |
2023 | 48.1 |
2024 | 34.5 |
2025 | 21.5 |
Thereafter | 59.8 |
Total undiscounted lease payments | 363.7 |
Less imputed interest | (21.8) |
Total operating lease liabilities | $ 341.9 |
Leases - Operating Lease Matu_2
Leases - Operating Lease Maturity ASU 840 (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 90.6 |
2021 | 72.6 |
2022 | 51.8 |
2023 | 36.7 |
2024 | 26.4 |
Thereafter | 63.8 |
Total minimum lease payments | $ 341.9 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 50.3 |
Operating right-of-use assets obtained in exchange for lease obligations | $ 64.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 22.40% | 14.00% | 11.30% | 18.50% | |
U.S. statutory rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Income tax liabilities | $ 296 | $ 296 | $ 327.2 | ||
Gross unrecognized tax benefits | 25.6 | 25.6 | 19.9 | ||
Accrued interest and penalties related to unrecognized tax benefits | 3.7 | 3.7 | $ 3.3 | ||
Reasonably possible amount of reduction in gross unrecognized tax benefits for the next twelve months | 24.1 | 24.1 | |||
Reasonably possible amount of net reduction to income tax provision if unrecognized tax benefits were recognized | $ 25.7 | $ 25.7 |
Business Segment Information -
Business Segment Information - Sales and Operating Results of Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Sales and operating results of reportable segments | ||||
Sales | $ 1,681.3 | $ 1,657.2 | $ 3,365.8 | $ 3,299.5 |
Purchase accounting depreciation and amortization | (9.5) | (4.3) | (19.5) | (8.4) |
General corporate – net | (17.7) | (26.7) | (50.5) | (48.6) |
Non-operating pension and postretirement benefit (cost) credit | (8.6) | 2.6 | (17.3) | 5.2 |
(Loss) gain on investments | (144.8) | 98.2 | (73.8) | (148.2) |
Valuation adjustments related to the registration of PTC Shares | 0 | 0 | 0 | 33.7 |
Interest (expense) income - net | (23.5) | (21.2) | (47.5) | (39.2) |
Income before income taxes | 167.4 | 402.4 | 502 | 523.2 |
Operating Segments | ||||
Sales and operating results of reportable segments | ||||
Sales | 1,681.3 | 1,657.2 | 3,365.8 | 3,299.5 |
Segment operating earnings | 371.5 | 353.8 | 710.6 | 728.7 |
Architecture & Software | ||||
Sales and operating results of reportable segments | ||||
Sales | 757.1 | 739.7 | 1,508.7 | 1,492.8 |
Architecture & Software | Operating Segments | ||||
Sales and operating results of reportable segments | ||||
Sales | 757.1 | 739.7 | 1,508.7 | 1,492.8 |
Segment operating earnings | 232.8 | 209.9 | 456.5 | 446.9 |
Control Products & Solutions | ||||
Sales and operating results of reportable segments | ||||
Sales | 924.2 | 917.5 | 1,857.1 | 1,806.7 |
Control Products & Solutions | Operating Segments | ||||
Sales and operating results of reportable segments | ||||
Sales | 924.2 | 917.5 | 1,857.1 | 1,806.7 |
Segment operating earnings | $ 138.7 | $ 143.9 | $ 254.1 | $ 281.8 |
Uncategorized Items - rok-20200
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,100,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,200,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 6,100,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 149,000,000 |