Cover Page
Cover Page | 9 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
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 ($1.00 par value) |
Trading Symbol | ROK |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 116,025,722 |
Entity Central Index Key | 0001024478 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 913.8 | $ 704.6 |
Receivables | 1,431.1 | 1,249.1 |
Inventories | 734.4 | 584 |
Other current assets | 206.9 | 148.1 |
Total current assets | 3,286.2 | 2,685.8 |
Property, net of accumulated depreciation of $1,744.8 and $1,674.9, respectively | 551.1 | 574.4 |
Operating lease right-of-use assets | 338.7 | 342.9 |
Goodwill | 1,916 | 1,650.3 |
Other intangible assets, net | 512.8 | 479.3 |
Deferred income taxes | 180.4 | 415.6 |
Long-term investments | 1,589.4 | 953.5 |
Other assets | 198.5 | 162.9 |
Total | 8,573.1 | 7,264.7 |
Current liabilities: | ||
Short-term debt | 24.6 | 24.6 |
Accounts payable | 890.2 | 687.8 |
Compensation and benefits | 345 | 197 |
Contract liabilities | 413.2 | 325.3 |
Customer returns, rebates and incentives | 244.9 | 199.6 |
Other current liabilities | 538.4 | 376.5 |
Total current liabilities | 2,456.3 | 1,810.8 |
Long-term debt | 1,977.1 | 1,974.7 |
Retirement benefits | 774.1 | 1,284 |
Operating lease liabilities | 268.2 | 274.7 |
Other liabilities | 519.3 | 573.7 |
Commitments and contingent liabilities (Note 13) | ||
Shareowners’ equity: | ||
Common stock ($1.00 par value, shares issued: 181.4) | 181.4 | 181.4 |
Additional paid-in capital | 1,909 | 1,830.7 |
Retained earnings | 7,921.9 | 7,139.8 |
Accumulated other comprehensive loss | (1,075) | (1,614.2) |
Common stock in treasury, at cost (shares held: 65.4 and 65.2, respectively) | (6,667.7) | (6,509.9) |
Shareowners’ equity attributable to Rockwell Automation, Inc. | 2,269.6 | 1,027.8 |
Noncontrolling interests | 308.5 | 319 |
Total shareowners’ equity | 2,578.1 | 1,346.8 |
Total | $ 8,573.1 | $ 7,264.7 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,744.8 | $ 1,674.9 |
Common stock, shares issued (in shares) | 181.4 | 181.4 |
Treasury stock, shares (in shares) | 65.4 | 65.2 |
Common stock, par value per share (in usd per share) | $ 1 | $ 1 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Sales | ||||
Sales | $ 1,848.2 | $ 1,394 | $ 5,189.6 | $ 4,759.8 |
Cost of sales | ||||
Cost of sales | (1,083.8) | (839.8) | (3,011.3) | (2,803.9) |
Gross profit | 764.4 | 554.2 | 2,178.3 | 1,955.9 |
Selling, general and administrative expenses | (436.9) | (370.2) | (1,232.8) | (1,125.4) |
Change in fair value of investments | 43.3 | 175.5 | 624.6 | 101.7 |
Other (expense) income | (34.9) | 0.4 | 20.1 | (18.4) |
Interest expense | (22.4) | (25.4) | (68.3) | (77.3) |
Income before income taxes | 313.5 | 334.5 | 1,521.9 | 836.5 |
Income tax provision | (44.5) | (20.3) | (252.2) | (77) |
Net income | 269 | 314.2 | 1,269.7 | 759.5 |
Net loss attributable to noncontrolling interests | (2.3) | (3.6) | (9.9) | (1.2) |
Net income attributable to Rockwell Automation, Inc. | $ 271.3 | $ 317.8 | $ 1,279.6 | $ 760.7 |
Earnings per share: | ||||
Basic (in usd per share) | $ 2.34 | $ 2.74 | $ 11.01 | $ 6.56 |
Diluted (in usd per share) | $ 2.32 | $ 2.73 | $ 10.91 | $ 6.52 |
Weighted average outstanding shares: | ||||
Basic (in shares) | 116 | 115.7 | 116 | 115.8 |
Diluted (in shares) | 117 | 116.4 | 117.1 | 116.5 |
Products and solutions | ||||
Sales | ||||
Sales | $ 1,664.7 | $ 1,249.7 | $ 4,658 | $ 4,264.6 |
Cost of sales | ||||
Cost of sales | (962.7) | (744.8) | (2,665.2) | (2,478.7) |
Services | ||||
Sales | ||||
Sales | 183.5 | 144.3 | 531.6 | 495.2 |
Cost of sales | ||||
Cost of sales | $ (121.1) | $ (95) | $ (346.1) | $ (325.2) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 269 | $ 314.2 | $ 1,269.7 | $ 759.5 |
Other comprehensive income (loss), net of tax: | ||||
Pension and other postretirement benefit plan adjustments (net of tax (expense) of ($142.9), ($7.9), ($159.6) and ($23.7)) | 426.5 | 27.2 | 482.1 | 82 |
Currency translation adjustments | 23 | 40.2 | 58.9 | (12) |
Net change in unrealized gains and losses on cash flow hedges (net of tax (expense) benefit of ($0.4), $5.0, $0.6 and $3.5 | 0.8 | (11.4) | (2.4) | (9.4) |
Other comprehensive income | 450.3 | 56 | 538.6 | 60.6 |
Comprehensive income | 719.3 | 370.2 | 1,808.3 | 820.1 |
Comprehensive loss attributable to noncontrolling interests | (3) | (3.5) | (10.5) | (1.7) |
Comprehensive income attributable to Rockwell Automation, Inc. | $ 722.3 | $ 373.7 | $ 1,818.8 | $ 821.8 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and other postretirement benefit plan adjustments tax expense | $ (142.9) | $ (7.9) | $ (159.6) | $ (23.7) |
Net change in unrealized gains and losses on cash flow hedges tax (expense) benefit | $ (0.4) | $ 5 | $ 0.6 | $ 3.5 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||
Net income | $ 1,269.7 | $ 759.5 |
Adjustments to arrive at cash provided by operating activities: | ||
Depreciation | 90.3 | 91 |
Amortization of intangible assets | 45.4 | 36.7 |
Change in fair value of investments | (624.6) | (101.7) |
Share-based compensation expense | 37.9 | 34.7 |
Retirement benefit expense | 117.8 | 94.9 |
Pension contributions | (26.7) | (24.7) |
Net loss (gain) on disposition of property | 0.6 | (12.5) |
Settlement of interest rate derivatives | 0 | 22 |
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments: | ||
Receivables | (143.7) | 10.5 |
Inventories | (133.3) | (41.4) |
Accounts payable | 194.1 | (30.8) |
Contract liabilities | 81 | 63.6 |
Compensation and benefits | 141.6 | (52.1) |
Income taxes | (8.9) | (81.8) |
Other assets and liabilities | 15.7 | 26.8 |
Cash provided by operating activities | 1,056.9 | 794.7 |
Investing activities: | ||
Capital expenditures | (76.6) | (91.9) |
Acquisition of businesses, net of cash acquired | (283) | (545.9) |
Purchases of investments | (9.1) | (10.7) |
Proceeds from maturities of investments | 0.6 | 6 |
Proceeds from sale of investments | 0 | 37.9 |
Proceeds from sale of property | 0.4 | 14.8 |
Other investing activities | (4.5) | (1.3) |
Cash used for investing activities | (372.2) | (591.1) |
Financing activities: | ||
Issuance of short-term debt, net of issuance costs | 1.4 | 422.7 |
Repayment of long-term debt | 0 | (300.7) |
Cash dividends | (372.9) | (354.3) |
Purchases of treasury stock | (238.5) | (264.2) |
Proceeds from the exercise of stock options | 122.7 | 187.4 |
Other financing activities | (15.5) | 0.8 |
Cash used for financing activities | (502.8) | (308.3) |
Effect of exchange rate changes on cash | 27.3 | (3.9) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 209.2 | (108.6) |
Cash, cash equivalents, and restricted cash at beginning of period | 730.4 | 1,018.4 |
Cash, cash equivalents, and restricted cash at end of period | 939.6 | 909.8 |
Components of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | 913.8 | 909.8 |
Restricted cash, current (Other current assets) | 6.9 | 0 |
Restricted cash, noncurrent (Other assets) | 18.9 | 0 |
Total cash, cash equivalents, and restricted cash | $ 939.6 | $ 909.8 |
Consolidated Statement of Share
Consolidated Statement of Shareowners' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Additional paid-in capital | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss | Accumulated other comprehensive lossCumulative Effect, Period of Adoption, Adjustment | Common stock in treasury, at cost | Total attributable to Rockwell Automation, Inc. | Total attributable to Rockwell Automation, Inc.Cumulative Effect, Period of Adoption, Adjustment | Noncontrolling interests | |
Balance at beginning of period at Sep. 30, 2019 | $ 404.2 | $ 2.2 | $ 181.4 | $ 1,709.1 | $ 6,440.2 | $ 149 | $ (1,488) | $ (146.8) | $ (6,438.5) | $ 404.2 | $ 2.2 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 759.5 | 760.7 | 760.7 | (1.2) | |||||||||
Other comprehensive income (loss) | 60.6 | 61.1 | 61.1 | (0.5) | |||||||||
Common stock issued (including share-based compensation impact) | 222.3 | 57.2 | 165.1 | 222.3 | |||||||||
Share repurchases | (254.9) | (254.9) | (254.9) | ||||||||||
Cash dividends declared | [1] | (472.7) | (472.7) | (472.7) | |||||||||
Change in noncontrolling interest | 367.9 | 43.8 | 3.8 | 47.6 | 320.3 | ||||||||
Balance at end of period at Jun. 30, 2020 | 1,089.1 | 181.4 | 1,810.1 | 6,877.2 | (1,569.9) | (143) | (6,528.3) | 770.5 | 318.6 | ||||
Balance at beginning of period at Mar. 31, 2020 | 937.9 | 181.4 | 1,791.2 | 6,795.8 | (1,625.8) | (6,521.8) | 620.8 | 317.1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 314.2 | 317.8 | 317.8 | (3.6) | |||||||||
Other comprehensive income (loss) | 56 | 55.9 | 55.9 | 0.1 | |||||||||
Common stock issued (including share-based compensation impact) | 66.1 | 24.1 | 42 | 66.1 | |||||||||
Share repurchases | (48.5) | (48.5) | (48.5) | ||||||||||
Cash dividends declared | [2] | (236.4) | (236.4) | (236.4) | |||||||||
Change in noncontrolling interest | (0.2) | (5.2) | (5.2) | 5 | |||||||||
Balance at end of period at Jun. 30, 2020 | 1,089.1 | 181.4 | 1,810.1 | 6,877.2 | (1,569.9) | $ (143) | (6,528.3) | 770.5 | 318.6 | ||||
Balance at beginning of period at Sep. 30, 2020 | 1,346.8 | 181.4 | 1,830.7 | 7,139.8 | (1,614.2) | (6,509.9) | 1,027.8 | 319 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 1,269.7 | 1,279.6 | 1,279.6 | (9.9) | |||||||||
Other comprehensive income (loss) | 538.6 | 539.2 | 539.2 | (0.6) | |||||||||
Common stock issued (including share-based compensation impact) | 161.4 | 78.9 | 82.5 | 161.4 | |||||||||
Share repurchases | (240.3) | (240.3) | (240.3) | ||||||||||
Cash dividends declared | [2] | (497.5) | (497.5) | (497.5) | |||||||||
Change in noncontrolling interest | (0.6) | (0.6) | (0.6) | ||||||||||
Balance at end of period at Jun. 30, 2021 | 2,578.1 | 181.4 | 1,909 | 7,921.9 | (1,075) | (6,667.7) | 2,269.6 | 308.5 | |||||
Balance at beginning of period at Mar. 31, 2021 | 2,128.7 | 181.4 | 1,887.4 | 7,899.3 | (1,526) | (6,624.9) | 1,817.2 | 311.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 269 | 271.3 | 271.3 | (2.3) | |||||||||
Other comprehensive income (loss) | 450.3 | 451 | 451 | (0.7) | |||||||||
Common stock issued (including share-based compensation impact) | 40 | 22.2 | 17.8 | 40 | |||||||||
Share repurchases | (60.6) | (60.6) | (60.6) | ||||||||||
Cash dividends declared | [2] | (248.7) | (248.7) | (248.7) | |||||||||
Change in noncontrolling interest | (0.6) | (0.6) | (0.6) | ||||||||||
Balance at end of period at Jun. 30, 2021 | $ 2,578.1 | $ 181.4 | $ 1,909 | $ 7,921.9 | $ (1,075) | $ (6,667.7) | $ 2,269.6 | $ 308.5 | |||||
[1] | Cash dividends were $4.28 per share and $4.08 per share in the nine months ended June 30, 2021, and 2020, respectively. | ||||||||||||
[2] | Cash dividends were $2.14 per share and $2.04 per share in the three months ended June 30, 2021, and 2020, respectively. |
Consolidated Statement of Sha_2
Consolidated Statement of Shareowners' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in usd per share) | $ 2.14 | $ 2.04 | $ 4.28 | $ 4.08 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 9 Months Ended |
Jun. 30, 2021 | |
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, 2020. The results of operations for the three and nine months ended June 30, 2021, 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 We record an allowance for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances, historic writeoff experience, and economic conditions and expected changes in market conditions. Receivables are stated net of an allowance for doubtful accounts of $14.9 million at June 30, 2021, and $15.2 million at September 30, 2020. In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $6.9 million at June 30, 2021, and $8.1 million at September 30, 2020. The changes to our allowance for doubtful accounts during the three and nine months ended June 30, 2021, were not material and primarily consisted of current-period provisions, writeoffs charged against the allowance, recoveries collected, and foreign currency translation. Earnings Per Share The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net income attributable to Rockwell Automation $ 271.3 $ 317.8 $ 1,279.6 $ 760.7 Less: Allocation to participating securities (0.4) (0.3) (2.1) (0.7) Net income available to common shareowners $ 270.9 $ 317.5 $ 1,277.5 $ 760.0 Basic weighted average outstanding shares 116.0 115.7 116.0 115.8 Effect of dilutive securities Stock options 0.9 0.6 1.0 0.7 Performance shares 0.1 0.1 0.1 — Diluted weighted average outstanding shares 117.0 116.4 117.1 116.5 Earnings per share: Basic $ 2.34 $ 2.74 $ 11.01 $ 6.56 Diluted $ 2.32 $ 2.73 $ 10.91 $ 6.52 For each of the three and nine months ended June 30, 2021, there were 0.2 million shares related to share-based compensation awards that were excluded from the diluted EPS calculation because they were antidilutive. For the three and nine months ended June 30, 2020, 1.4 million and 1.5 million shares, respectively, 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 $18.0 million and $10.4 million were accrued within accounts payable and other current liabilities at June 30, 2021 and 2020, respectively. At June 30, 2021, there were $1.8 million of outstanding common stock share repurchases recorded in accounts payable that did not settle until the next fiscal quarter. At June 30, 2020, there were no outstanding common stock share repurchases. 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. Goodwill We perform our annual evaluation of goodwill and indefinite life intangible assets for impairment as required under accounting principles generally accepted in the United States (U.S. GAAP) during 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. Any excess in carrying value over the estimated fair value is charged to results of operations. 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. Our reporting units for goodwill evaluation consist of the Intelligent Devices segment, the Software & Control segment, the Lifecycle Services segment (excluding Sensia), and Sensia. 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 rates, and terminal value. Forecasts of future revenue growth and margins are based on management’s best estimates. Discount rates are determined using a weighted average cost of capital adjusted for risk factors specific to the reporting unit, with comparison to market and industry data. The terminal value is estimated following the 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. Demand for Sensia hardware and software products, solutions and services is sensitive to industry volatility and risks, including those related to commodity prices, supply and demand dynamics, production costs, geological activity, and political activities. Actual results and forecasts of revenue growth and margins for our Sensia reporting unit may be impacted by its concentration within the Oil & Gas industry and with its customer base. 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. Acquisition Announcement On June 25, 2021, we announced that we entered into an agreement to acquire Plex Systems, the leading cloud-native smart manufacturing platform operating at scale, for $2.22 billion in cash. The transaction is expected to close in the fourth quarter of fiscal 2021, subject to customary closing conditions and completion of regulatory review. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (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 amounts of lease right-of-use assets and corresponding lease liabilities recorded in the Consolidated Balance Sheet upon adoption were $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 $147 million from accumulated other comprehensive loss into retained earnings. In June 2016, the FASB issued a new standard that requires companies to utilize a current expected credit losses impairment (CECL) model for certain financial assets, including trade and other receivables. The CECL model requires that estimated expected credit losses, including allowance for doubtful accounts, consider a broader range of information such as economic conditions and expected changes in market conditions. We adopted the new standard as of October 1, 2020. The adoption of this standard did not have a material impact on our Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Nature of Products and Services Substantially all of our revenue is from contracts with customers. We recognize revenue as promised products are transferred to, or services are performed for, customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products and services. Our offerings consist of industrial automation and information products, solutions and services. Our products include hardware, software, and configured-to-order products. Our solutions include custom-engineered systems and software. Our services include customer technical support and repair, asset management and optimization consulting, and training. Also included in our services is a portion of revenue related to spare parts that are managed within our services offering. Our operations are comprised of the Intelligent Devices segment, Software & Control segment, and Lifecycle Services segment. Revenue from the Intelligent Devices and Software & Control segments is predominantly comprised of product sales which are recognized at a point in time. The Software & Control segment also contains revenue from software products which may be recognized over time if certain criteria are met. Revenue from the Lifecycle Services segment is predominantly comprised of solutions and services which are primarily recognized over time. See Note 16 for more information. Unfulfilled Performance Obligations As of June 30, 2021, we expect to recognize approximately $620 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $350 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 June 30, 2021. Disaggregation of Revenue The following tables present our revenue disaggregation by geographic region for our three operating segments (in millions). We attribute sales to the geographic regions based on the country of destination. Information for the three and nine months ended June 30, 2020, has been recast to reflect our new operating segments. See Note 15 for further information on our change in operating segments. Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Intelligent Devices Software & Control Lifecycle Services Total Intelligent Devices Software & Control Lifecycle Services Total North America $ 548.5 $ 302.9 $ 235.3 $ 1,086.7 $ 1,536.7 $ 878.5 $ 649.5 $ 3,064.7 Europe, Middle East and Africa (EMEA) 162.8 103.3 111.2 377.3 445.1 286.2 321.5 1,052.8 Asia Pacific 118.1 74.4 82.3 274.8 316.6 204.0 223.0 743.6 Latin America 53.5 29.0 26.9 109.4 156.4 84.2 87.9 328.5 Total Company Sales $ 882.9 $ 509.6 $ 455.7 $ 1,848.2 $ 2,454.8 $ 1,452.9 $ 1,281.9 $ 5,189.6 Three Months Ended June 30, 2020 Nine Months Ended June 30, 2020 Intelligent Devices Software & Control Lifecycle Services Total Intelligent Devices Software & Control Lifecycle Services Total North America $ 417.8 $ 216.8 $ 191.4 $ 826.0 $ 1,404.5 $ 780.1 $ 670.4 $ 2,855.0 Europe, Middle East and Africa (EMEA) 119.3 71.9 89.2 280.4 385.6 222.8 315.7 924.1 Asia Pacific 89.6 61.5 55.8 206.9 276.6 187.0 173.7 637.3 Latin America 33.2 14.5 33.0 80.7 154.8 75.5 113.1 343.4 Total Company Sales $ 659.9 $ 364.7 $ 369.4 $ 1,394.0 $ 2,221.5 $ 1,265.4 $ 1,272.9 $ 4,759.8 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 June 30, 2021. Below is a summary of our contract liabilities balance: June 30, 2021 June 30, 2020 Balance as of beginning of fiscal year $ 325.3 $ 275.6 Balance as of end of period 413.2 341.7 The most significant changes in our contract liabilities balance during the nine months ended June 30, 2021, 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 nine months ended June 30, 2021, we recognized revenue of approximately $217.6 million that was included in the contract liabilities balance at September 30, 2020. We did not have a material amount of revenue recognized in the nine months ended June 30, 2021, from performance obligations satisfied or partially satisfied in previous periods. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized $13.5 million and $37.9 million of pre-tax share-based compensation expense during the three and nine months ended June 30, 2021, respectively. We recognized $12.3 million and $34.7 million of pre-tax share-based compensation expense during the three and nine months ended June 30, 2020, 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): Nine Months Ended June 30, 2021 2020 Grants Wtd. Avg. Grants Wtd. Avg. Stock options 196 $ 55.50 973 $ 35.79 Performance shares 44 298.10 37 265.04 Restricted stock and restricted stock units 181 248.16 67 198.77 Unrestricted stock 6 228.80 7 171.51 |
Inventories
Inventories | 9 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of (in millions): June 30, 2021 September 30, 2020 Finished goods $ 287.8 $ 243.0 Work in process 200.9 159.1 Raw materials 245.7 181.9 Inventories $ 734.4 $ 584.0 |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions In October 2020, we acquired Oylo, a privately-held industrial cybersecurity services provider based in Barcelona, Spain. We assigned the full amount of goodwill related to this acquisition to our Lifecycle Services segment. In December 2020, we acquired Fiix Inc., a privately-held, artificial intelligence enabled computerized maintenance management system (CMMS) company based in Toronto, Ontario, Canada. We assigned the full amount of goodwill related to this acquisition to our Software & Control segment. We recorded assets acquired and liabilities assumed in connection with these acquisitions based on their estimated fair values as of the respective acquisition dates. The preliminary aggregate purchase price allocation for these acquisitions is as follows (in millions): Purchase Price Allocation Accounts receivable $ 6.0 All other assets 15.9 Goodwill 224.8 Intangible assets 69.6 Total assets acquired 316.3 Less: Liabilities assumed (25.5) Less: Deferred income taxes (3.7) Net assets acquired $ 287.1 Purchase Consideration Total purchase consideration, net of cash acquired $ 287.1 Intangible assets identified include $69.6 million of customer relationships, technology, and trade names (approximately 11-year weighted average useful life). We assigned $12.8 million of goodwill to our Lifecycle Services segment and $212.0 million of goodwill to our Software & Control segment, which represents intangible assets that do not qualify for separate recognition. We do not expect the goodwill to be deductible for tax purposes. The allocation of the purchase price to identifiable assets for these acquisitions are based on the preliminary valuations performed to determine the fair value of the net assets as of their respective acquisition dates. 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. Total sales from these acquisitions included in our consolidated results for the three and nine months ended June 30, 2021, and their impact on proforma sales and earnings for the three and nine months ended June 30, 2020, were not material. Acquisition-related costs recorded as expenses for these acquisitions in the three and nine months ended June 30, 2021, were not material. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jun. 30, 2021 | |
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 nine months ended June 30, 2021, are (in millions): Architecture & Control Products Intelligent Devices Software & Control Lifecycle Services Total Balance as of September 30, 2020 $ 609.4 $ 1,040.9 $ — $ — $ — $ 1,650.3 Reallocation due to change in Segments (609.4) (1,040.9) 535.1 497.3 617.9 — Acquisition of businesses — — — 212.0 12.8 224.8 Translation — — 15.3 16.8 8.8 40.9 Balance as of June 30, 2021 $ — $ — $ 550.4 $ 726.1 $ 639.5 $ 1,916.0 During the first quarter of fiscal 2021, we changed our organizational structure resulting in three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. This change also resulted in the identification of new reporting units. We reassigned our goodwill balances to reflect this new structure using the relative fair value allocation approach required under U.S. GAAP. Under this approach, the fair values of each of our new reporting units were compared to the total fair value of their prior respective reporting units immediately prior to the reorganization to arrive at the reassigned goodwill balances. We determined the reporting unit fair values using the same approach for quantitative goodwill impairment tests described in Note 1. We also tested goodwill at the affected reporting units for impairment prior to and subsequent to the reassignment of goodwill and concluded that goodwill was not impaired. We performed our annual evaluation of goodwill and indefinite life intangible assets for impairment during the second quarter of 2021 and concluded that these assets are not impaired. Refer to Note 1 for additional information on our annual impairment evaluation. Other intangible assets consist of (in millions): June 30, 2021 Carrying Accumulated Net Amortized intangible assets: Software products $ 197.2 $ 147.4 $ 49.8 Customer relationships 368.2 115.7 252.5 Technology 225.4 99.7 125.7 Trademarks 77.2 37.1 40.1 Other 15.5 14.5 1.0 Total amortized intangible assets 883.5 414.4 469.1 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 927.2 $ 414.4 $ 512.8 September 30, 2020 Carrying Accumulated Net Amortized intangible assets: Software products $ 192.7 $ 139.0 $ 53.7 Customer relationships 351.3 92.5 258.8 Technology 165.8 84.0 81.8 Trademarks 71.7 31.3 40.4 Other 14.4 13.5 0.9 Total amortized intangible assets 795.9 360.3 435.6 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 839.6 $ 360.3 $ 479.3 Estimated amortization expense is $59.3 million in 2021, $57.7 million in 2022, $56.4 million in 2023, $53.4 million in 2024, and $51.2 million in 2025. |
Short-term Debt
Short-term Debt | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Short-term Debt | Short-term DebtOur short-term debt as of June 30, 2021, primarily consists of $23.5 million of interest-bearing loans from Schlumberger to Sensia which were originally due September 30, 2020, and are now due September 30, 2021. The short-term loans from Schlumberger were entered into following the formation of Sensia in fiscal 2020. There were no commercial paper borrowings outstanding at June 30, 2021, or September 30, 2020. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of (in millions): June 30, 2021 September 30, 2020 Unrealized losses on foreign exchange contracts $ 41.5 $ 24.3 Product warranty obligations 19.1 20.8 Taxes other than income taxes 80.0 58.5 Accrued interest 29.9 14.9 Dividends payable 124.4 — Income taxes payable 48.5 79.8 Operating lease liabilities 89.8 89.7 Other 105.2 88.5 Other current liabilities $ 538.4 $ 376.5 |
Investments
Investments | 9 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Our investments consist of (in millions): June 30, 2021 September 30, 2020 Fixed income securities $ 0.6 $ 0.6 Equity securities 1,494.8 875.3 Other 94.6 78.2 Total investments 1,590.0 954.1 Less: Short-term investments (1) (0.6) (0.6) Long-term investments $ 1,589.4 $ 953.5 (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 PTC Shares are considered equity securities. On May 11, 2021, we entered into an amendment to the securities purchase agreement with PTC, which amended, among other things, our entity-specific transfer restrictions through September 2023, subject to certain exceptions. We have the ability to transfer in open market transactions, in the aggregate in any 90-day period, a number of PTC Shares equal to up to 1.0 percent of PTC's total outstanding shares of common stock as of the first day in such 90-day period. We also have the ability to transfer in marketed underwritten public offerings, in the aggregate in any one-year period, a number of PTC Shares equal to up to 5.0 percent of PTC's total outstanding shares of common stock as of the closing date of the first such offering. 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 June 30, 2021, the fair value of the PTC Shares was $1,494.8 million, which was recorded in long-term investments in the Consolidated Balance Sheet. For the three and nine months ended June 30, 2021, we recorded gains of $38.2 million and $619.5 million related to the PTC Shares, respectively. For the three and nine months ended June 30, 2020, we recorded gains of $175.5 million and $101.7 million related to the PTC Shares, respectively. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit cost are (in millions): Pension Benefits Three Months Ended Nine Months Ended 2021 2020 2021 2020 Service cost $ 23.1 $ 22.6 $ 68.7 $ 68.2 Interest cost 31.5 34.0 94.3 102.3 Expected return on plan assets (60.9) (60.9) (182.0) (183.3) Amortization: Prior service cost 0.3 0.2 1.0 0.7 Net actuarial loss 37.0 36.7 110.5 110.3 Settlements 27.2 (0.8) 26.8 (2.3) Net periodic benefit cost $ 58.2 $ 31.8 $ 119.3 $ 95.9 Other Postretirement Benefits Three Months Ended Nine Months Ended 2021 2020 2021 2020 Service cost $ 0.3 $ 0.3 $ 0.8 $ 0.8 Interest cost 0.3 0.4 0.9 1.2 Amortization: Prior service credit (1.4) (1.4) (4.1) (4.1) Net actuarial loss 0.3 0.4 0.9 1.1 Net periodic benefit credit $ (0.5) $ (0.3) $ (1.5) $ (1.0) 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 (expense) income in the Consolidated Statement of Operations. In June 2021, we remeasured our U.S. pension plan assets and liabilities in accordance with U.S. GAAP settlement accounting rules and recognized settlement expense of $27.2 million. Settlement accounting was required due to the amount of lump-sum payments made by the U.S. pension plan to retirees and other separated employees. Remeasurement of our U.S. pension plan assets and liabilities reduced our net benefit obligation by $500.9 million. The discount rate used for the remeasurement as of June 30, 2021, was 3.05 percent compared to 2.90 percent at our September 30, 2020, annual measurement date. |
Other (Expense) Income
Other (Expense) Income | 9 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income | Other (Expense) Income The components of other (expense) income are (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Interest income $ 0.3 $ 0.7 $ 1.1 $ 5.1 Royalty income 2.9 2.1 7.5 6.7 Legacy product liability and environmental charges (4.0) (4.1) (9.4) (12.5) Non-operating pension and postretirement benefit cost (34.3) (8.6) (48.3) (25.9) Legal settlement (Note 13) — — 70.0 — Other 0.2 10.3 (0.8) 8.2 Other (expense) income $ (34.9) $ 0.4 $ 20.1 $ (18.4) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax Balance as of March 31, 2021 $ (1,215.6) $ (275.7) $ (34.7) $ (1,526.0) Other comprehensive income (loss) before reclassifications 379.1 23.0 (5.6) 396.5 Amounts reclassified from accumulated other comprehensive loss 48.1 — 6.4 54.5 Other comprehensive income (loss) 427.2 23.0 0.8 451.0 Balance as of June 30, 2021 $ (788.4) $ (252.7) $ (33.9) $ (1,075.0) Nine Months Ended June 30, 2021 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax Balance as of September 30, 2020 $ (1,271.2) $ (311.5) $ (31.5) $ (1,614.2) Other comprehensive income (loss) before reclassifications 379.7 58.8 (18.2) 420.3 Amounts reclassified from accumulated other comprehensive loss 103.1 — 15.8 118.9 Other comprehensive income (loss) 482.8 58.8 (2.4) 539.2 Balance as of June 30, 2021 $ (788.4) $ (252.7) $ (33.9) $ (1,075.0) Three Months Ended June 30, 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 Total accumulated other comprehensive loss, net of tax Balance as of March 31, 2020 $ (1,225.7) $ (389.1) $ (11.0) $ (1,625.8) Other comprehensive income (loss) before reclassifications — 40.1 (7.7) 32.4 Amounts reclassified from accumulated other comprehensive loss 27.2 — (3.7) 23.5 Other comprehensive income (loss) 27.2 40.1 (11.4) 55.9 Balance as of June 30, 2020 $ (1,198.5) $ (349.0) $ (22.4) $ (1,569.9) Nine Months Ended June 30, 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 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 — (11.5) 2.0 (9.5) Amounts reclassified from accumulated other comprehensive loss 82.0 — (11.4) 70.6 Other comprehensive income (loss) 82.0 (11.5) (9.4) 61.1 Adoption of accounting standard/other (146.8) 3.8 — (143.0) Balance as of June 30, 2020 $ (1,198.5) $ (349.0) $ (22.4) $ (1,569.9) The reclassifications out of accumulated other comprehensive loss in the Consolidated Statement of Operations were (in millions): Three Months Ended Nine Months Ended Affected Line in the Consolidated Statement of Operations 2021 2020 2021 2020 Pension and other postretirement benefit plan adjustments (1) : Amortization of prior service credit $ (1.1) $ (1.2) $ (3.1) $ (3.4) Other (expense) income Amortization of net actuarial loss 37.3 37.1 111.4 111.4 Other (expense) income Settlements 27.2 (0.8) 26.8 (2.3) Other (expense) income 63.4 35.1 135.1 105.7 Income before income taxes (15.3) (7.9) (32.0) (23.7) Income tax provision $ 48.1 $ 27.2 $ 103.1 $ 82.0 Net income attributable to Rockwell Automation Net unrealized losses (gains) on cash flow hedges: Forward exchange contracts $ (0.1) $ 1.0 $ (1.3) $ 0.8 Sales Forward exchange contracts 8.6 (7.4) 22.6 (19.4) Cost of sales Forward exchange contracts (0.4) 0.7 (1.3) 1.3 Selling, general and administrative expenses Treasury locks related to 2019 debt issuance 0.5 0.4 1.5 1.5 Interest expense 8.6 (5.3) 21.5 (15.8) Income before income taxes (2.2) 1.6 (5.7) 4.4 Income tax provision $ 6.4 $ (3.7) $ 15.8 $ (11.4) Net income attributable to Rockwell Automation Total reclassifications $ 54.5 $ 23.5 $ 118.9 $ 70.6 Net income attributable to Rockwell Automation (1) These components are included in the computation of net periodic benefit cost (credit). See Note 10 for further information. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Jun. 30, 2021 | |
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 and at times in other contracts with third parties. As of June 30, 2021, 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. During the first quarter of fiscal 2021, we reached a favorable settlement agreement regarding ongoing litigation of a trademark infringement and false advertising matter and received $70 million. The settlement gain is recorded in other (expense) income in the Consolidated Statement of Operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2021 | |
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 14.2 percent and 16.6 percent in the three and nine months ended June 30, 2021, respectively, compared to 6.1 percent and 9.2 percent in the three and nine months ended June 30, 2020. The effective tax rate was lower than the U.S. statutory rate of 21 percent in the three months ended June 30, 2021, primarily because we benefited from lower non-U.S. tax rates and other favorable discrete tax items. The effective tax rate was lower than the U.S. statutory rate of 21 percent in the nine months ended June 30, 2021, primarily due to PTC investment adjustments and because we benefited from lower non-U.S. tax rates. The effective tax rate was lower than the U.S. statutory rate of 21 percent in the three months ended June 30, 2020, primarily due to PTC investment adjustments and other favorable discrete tax items. The effective tax rate was lower than the U.S. statutory rate of 21 percent in the nine months ended June 30, 2020, primarily due to PTC investment adjustments and other 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. An income tax liability of $264.9 million and $296.0 million related to the U.S. transition tax under the Tax Act that is payable greater than 12 months after June 30, 2021, and September 30, 2020, respectively, is recorded in other liabilities in the Consolidated Balance Sheet. Unrecognized Tax Benefits The amount of gross unrecognized tax benefits was $20.2 million and $25.5 million at June 30, 2021, and September 30, 2020, respectively, of which the entire amount would reduce our effective tax rate if recognized. Accrued interest and penalties related to unrecognized tax benefits were $4.0 million at both June 30, 2021, and September 30, 2020. 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 $19.6 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 $22.9 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 2014. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We determine our operating segments based on the information used by our chief operating decision maker, our Chief Executive Officer, to allocate resources and assess performance. Beginning in fiscal year 2021, we organize our business into three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. This change simplifies our structure around essential offerings, leverages our sharpened industry focus, and recognizes the growing importance of software in delivering value to our customers. The composition of our segments is as follows: Intelligent Devices Software & Control (1) Lifecycle Services (2) Drives (2) Control software & hardware Consulting Motion (1) Visualization software & hardware Professional services and solutions Safety (1) Digital twin & simulation software Connected services Sensing (1) Information solutions software Maintenance services Industrial components (2) Network & security infrastructure Sensia joint venture Configured-to-order products (2) (1) Formerly part of the Architecture & Software segment (2) Formerly part of the Control Products & Solutions segment The following tables reflect the sales and operating results of our reportable segments including recast information for the three and nine months ended June 30, 2020 (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Sales Intelligent Devices $ 882.9 $ 659.9 $ 2,454.8 $ 2,221.5 Software & Control 509.6 364.7 1,452.9 1,265.4 Lifecycle Services 455.7 369.4 1,281.9 1,272.9 Total $ 1,848.2 $ 1,394.0 $ 5,189.6 $ 4,759.8 Segment operating earnings Intelligent Devices $ 193.6 $ 111.6 $ 535.8 $ 452.9 Software & Control 128.3 82.1 411.2 359.3 Lifecycle Services 46.8 35.7 121.1 127.8 Total 368.7 229.4 1,068.1 940.0 Purchase accounting depreciation and amortization (12.9) (10.6) (37.7) (30.1) Corporate and other (29.2) (26.4) (87.6) (76.9) Non-operating pension and postretirement benefit cost (34.3) (8.6) (48.3) (25.9) Gain on investments 43.3 175.5 624.6 101.7 Legal Settlement — — 70.0 — Interest (expense) income - net (22.1) (24.8) (67.2) (72.3) Income before income taxes $ 313.5 $ 334.5 $ 1,521.9 $ 836.5 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 cost, certain corporate initiatives, gains and losses on investments, 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 consistent with the methodology used by management to assess segment performance. The following table summarizes the identifiable assets at June 30, 2021, and September 30, 2020, for each of the reportable segments and Corporate (in millions): June 30, September 30, Identifiable assets: Intelligent Devices $ 1,814.8 $ 1,585.0 Software & Control 1,497.6 1,072.7 Lifecycle Services 1,894.6 1,915.0 Corporate 3,366.1 2,692.0 Total $ 8,573.1 $ 7,264.7 Identifiable assets at Corporate consist principally of cash, net deferred income tax assets, prepaid pension obligations, and property. Property shared by the segments and used in operating activities is also reported in Corporate identifiable assets. Corporate identifiable assets include shared net property balances of $240.1 million and $247.3 million at June 30, 2021, and September 30, 2020, respectively, for which depreciation expense has been allocated to segment operating earnings consistent with the methodology used by management to assess segment performance. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Receivables | ReceivablesWe record an allowance for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances, historic writeoff experience, and economic conditions and expected changes in market conditions. Receivables are stated net of an allowance for doubtful accounts |
Goodwill | Goodwill We perform our annual evaluation of goodwill and indefinite life intangible assets for impairment as required under accounting principles generally accepted in the United States (U.S. GAAP) during 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. Any excess in carrying value over the estimated fair value is charged to results of operations. 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. Our reporting units for goodwill evaluation consist of the Intelligent Devices segment, the Software & Control segment, the Lifecycle Services segment (excluding Sensia), and Sensia. 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 rates, and terminal value. Forecasts of future revenue growth and margins are based on management’s best estimates. Discount rates are determined using a weighted average cost of capital adjusted for risk factors specific to the reporting unit, with comparison to market and industry data. The terminal value is estimated following the 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. Demand for Sensia hardware and software products, solutions and services is sensitive to industry volatility and risks, including those related to commodity prices, supply and demand dynamics, production costs, geological activity, and political activities. Actual results and forecasts of revenue growth and margins for our Sensia reporting unit may be impacted by its concentration within the Oil & Gas industry and with its customer base. |
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 Financial Accounting Standards Board (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 amounts of lease right-of-use assets and corresponding lease liabilities recorded in the Consolidated Balance Sheet upon adoption were $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 $147 million from accumulated other comprehensive loss into retained earnings. In June 2016, the FASB issued a new standard that requires companies to utilize a current expected credit losses impairment (CECL) model for certain financial assets, including trade and other receivables. The CECL model requires that estimated expected credit losses, including allowance for doubtful accounts, consider a broader range of information such as economic conditions and expected changes in market conditions. We adopted the new standard as of October 1, 2020. The adoption of this standard did not have a material impact on our Consolidated Financial Statements. |
Income Taxes | Income TaxesAt 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) | 9 Months Ended |
Jun. 30, 2021 | |
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 Nine Months Ended 2021 2020 2021 2020 Net income attributable to Rockwell Automation $ 271.3 $ 317.8 $ 1,279.6 $ 760.7 Less: Allocation to participating securities (0.4) (0.3) (2.1) (0.7) Net income available to common shareowners $ 270.9 $ 317.5 $ 1,277.5 $ 760.0 Basic weighted average outstanding shares 116.0 115.7 116.0 115.8 Effect of dilutive securities Stock options 0.9 0.6 1.0 0.7 Performance shares 0.1 0.1 0.1 — Diluted weighted average outstanding shares 117.0 116.4 117.1 116.5 Earnings per share: Basic $ 2.34 $ 2.74 $ 11.01 $ 6.56 Diluted $ 2.32 $ 2.73 $ 10.91 $ 6.52 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenue disaggregation by geographic region for our three operating segments (in millions). We attribute sales to the geographic regions based on the country of destination. Information for the three and nine months ended June 30, 2020, has been recast to reflect our new operating segments. See Note 15 for further information on our change in operating segments. Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Intelligent Devices Software & Control Lifecycle Services Total Intelligent Devices Software & Control Lifecycle Services Total North America $ 548.5 $ 302.9 $ 235.3 $ 1,086.7 $ 1,536.7 $ 878.5 $ 649.5 $ 3,064.7 Europe, Middle East and Africa (EMEA) 162.8 103.3 111.2 377.3 445.1 286.2 321.5 1,052.8 Asia Pacific 118.1 74.4 82.3 274.8 316.6 204.0 223.0 743.6 Latin America 53.5 29.0 26.9 109.4 156.4 84.2 87.9 328.5 Total Company Sales $ 882.9 $ 509.6 $ 455.7 $ 1,848.2 $ 2,454.8 $ 1,452.9 $ 1,281.9 $ 5,189.6 Three Months Ended June 30, 2020 Nine Months Ended June 30, 2020 Intelligent Devices Software & Control Lifecycle Services Total Intelligent Devices Software & Control Lifecycle Services Total North America $ 417.8 $ 216.8 $ 191.4 $ 826.0 $ 1,404.5 $ 780.1 $ 670.4 $ 2,855.0 Europe, Middle East and Africa (EMEA) 119.3 71.9 89.2 280.4 385.6 222.8 315.7 924.1 Asia Pacific 89.6 61.5 55.8 206.9 276.6 187.0 173.7 637.3 Latin America 33.2 14.5 33.0 80.7 154.8 75.5 113.1 343.4 Total Company Sales $ 659.9 $ 364.7 $ 369.4 $ 1,394.0 $ 2,221.5 $ 1,265.4 $ 1,272.9 $ 4,759.8 |
Contract Balances | Below is a summary of our contract liabilities balance: June 30, 2021 June 30, 2020 Balance as of beginning of fiscal year $ 325.3 $ 275.6 Balance as of end of period 413.2 341.7 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
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): Nine Months Ended June 30, 2021 2020 Grants Wtd. Avg. Grants Wtd. Avg. Stock options 196 $ 55.50 973 $ 35.79 Performance shares 44 298.10 37 265.04 Restricted stock and restricted stock units 181 248.16 67 198.77 Unrestricted stock 6 228.80 7 171.51 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of (in millions): June 30, 2021 September 30, 2020 Finished goods $ 287.8 $ 243.0 Work in process 200.9 159.1 Raw materials 245.7 181.9 Inventories $ 734.4 $ 584.0 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary aggregate purchase price allocation for these acquisitions is as follows (in millions): Purchase Price Allocation Accounts receivable $ 6.0 All other assets 15.9 Goodwill 224.8 Intangible assets 69.6 Total assets acquired 316.3 Less: Liabilities assumed (25.5) Less: Deferred income taxes (3.7) Net assets acquired $ 287.1 Purchase Consideration Total purchase consideration, net of cash acquired $ 287.1 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the nine months ended June 30, 2021, are (in millions): Architecture & Control Products Intelligent Devices Software & Control Lifecycle Services Total Balance as of September 30, 2020 $ 609.4 $ 1,040.9 $ — $ — $ — $ 1,650.3 Reallocation due to change in Segments (609.4) (1,040.9) 535.1 497.3 617.9 — Acquisition of businesses — — — 212.0 12.8 224.8 Translation — — 15.3 16.8 8.8 40.9 Balance as of June 30, 2021 $ — $ — $ 550.4 $ 726.1 $ 639.5 $ 1,916.0 |
Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class | Other intangible assets consist of (in millions): June 30, 2021 Carrying Accumulated Net Amortized intangible assets: Software products $ 197.2 $ 147.4 $ 49.8 Customer relationships 368.2 115.7 252.5 Technology 225.4 99.7 125.7 Trademarks 77.2 37.1 40.1 Other 15.5 14.5 1.0 Total amortized intangible assets 883.5 414.4 469.1 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 927.2 $ 414.4 $ 512.8 September 30, 2020 Carrying Accumulated Net Amortized intangible assets: Software products $ 192.7 $ 139.0 $ 53.7 Customer relationships 351.3 92.5 258.8 Technology 165.8 84.0 81.8 Trademarks 71.7 31.3 40.4 Other 14.4 13.5 0.9 Total amortized intangible assets 795.9 360.3 435.6 Allen-Bradley ® trademark not subject to amortization 43.7 — 43.7 Total $ 839.6 $ 360.3 $ 479.3 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consist of (in millions): June 30, 2021 September 30, 2020 Unrealized losses on foreign exchange contracts $ 41.5 $ 24.3 Product warranty obligations 19.1 20.8 Taxes other than income taxes 80.0 58.5 Accrued interest 29.9 14.9 Dividends payable 124.4 — Income taxes payable 48.5 79.8 Operating lease liabilities 89.8 89.7 Other 105.2 88.5 Other current liabilities $ 538.4 $ 376.5 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Our investments consist of (in millions): June 30, 2021 September 30, 2020 Fixed income securities $ 0.6 $ 0.6 Equity securities 1,494.8 875.3 Other 94.6 78.2 Total investments 1,590.0 954.1 Less: Short-term investments (1) (0.6) (0.6) Long-term investments $ 1,589.4 $ 953.5 (1) Short-term investments are included in other current assets in the Consolidated Balance Sheet. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost are (in millions): Pension Benefits Three Months Ended Nine Months Ended 2021 2020 2021 2020 Service cost $ 23.1 $ 22.6 $ 68.7 $ 68.2 Interest cost 31.5 34.0 94.3 102.3 Expected return on plan assets (60.9) (60.9) (182.0) (183.3) Amortization: Prior service cost 0.3 0.2 1.0 0.7 Net actuarial loss 37.0 36.7 110.5 110.3 Settlements 27.2 (0.8) 26.8 (2.3) Net periodic benefit cost $ 58.2 $ 31.8 $ 119.3 $ 95.9 Other Postretirement Benefits Three Months Ended Nine Months Ended 2021 2020 2021 2020 Service cost $ 0.3 $ 0.3 $ 0.8 $ 0.8 Interest cost 0.3 0.4 0.9 1.2 Amortization: Prior service credit (1.4) (1.4) (4.1) (4.1) Net actuarial loss 0.3 0.4 0.9 1.1 Net periodic benefit credit $ (0.5) $ (0.3) $ (1.5) $ (1.0) |
Other (Expense) Income (Tables)
Other (Expense) Income (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Components Of Other Expense Income | The components of other (expense) income are (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Interest income $ 0.3 $ 0.7 $ 1.1 $ 5.1 Royalty income 2.9 2.1 7.5 6.7 Legacy product liability and environmental charges (4.0) (4.1) (9.4) (12.5) Non-operating pension and postretirement benefit cost (34.3) (8.6) (48.3) (25.9) Legal settlement (Note 13) — — 70.0 — Other 0.2 10.3 (0.8) 8.2 Other (expense) income $ (34.9) $ 0.4 $ 20.1 $ (18.4) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax Balance as of March 31, 2021 $ (1,215.6) $ (275.7) $ (34.7) $ (1,526.0) Other comprehensive income (loss) before reclassifications 379.1 23.0 (5.6) 396.5 Amounts reclassified from accumulated other comprehensive loss 48.1 — 6.4 54.5 Other comprehensive income (loss) 427.2 23.0 0.8 451.0 Balance as of June 30, 2021 $ (788.4) $ (252.7) $ (33.9) $ (1,075.0) Nine Months Ended June 30, 2021 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax Balance as of September 30, 2020 $ (1,271.2) $ (311.5) $ (31.5) $ (1,614.2) Other comprehensive income (loss) before reclassifications 379.7 58.8 (18.2) 420.3 Amounts reclassified from accumulated other comprehensive loss 103.1 — 15.8 118.9 Other comprehensive income (loss) 482.8 58.8 (2.4) 539.2 Balance as of June 30, 2021 $ (788.4) $ (252.7) $ (33.9) $ (1,075.0) Three Months Ended June 30, 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 Total accumulated other comprehensive loss, net of tax Balance as of March 31, 2020 $ (1,225.7) $ (389.1) $ (11.0) $ (1,625.8) Other comprehensive income (loss) before reclassifications — 40.1 (7.7) 32.4 Amounts reclassified from accumulated other comprehensive loss 27.2 — (3.7) 23.5 Other comprehensive income (loss) 27.2 40.1 (11.4) 55.9 Balance as of June 30, 2020 $ (1,198.5) $ (349.0) $ (22.4) $ (1,569.9) Nine Months Ended June 30, 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 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 — (11.5) 2.0 (9.5) Amounts reclassified from accumulated other comprehensive loss 82.0 — (11.4) 70.6 Other comprehensive income (loss) 82.0 (11.5) (9.4) 61.1 Adoption of accounting standard/other (146.8) 3.8 — (143.0) Balance as of June 30, 2020 $ (1,198.5) $ (349.0) $ (22.4) $ (1,569.9) |
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 Nine Months Ended Affected Line in the Consolidated Statement of Operations 2021 2020 2021 2020 Pension and other postretirement benefit plan adjustments (1) : Amortization of prior service credit $ (1.1) $ (1.2) $ (3.1) $ (3.4) Other (expense) income Amortization of net actuarial loss 37.3 37.1 111.4 111.4 Other (expense) income Settlements 27.2 (0.8) 26.8 (2.3) Other (expense) income 63.4 35.1 135.1 105.7 Income before income taxes (15.3) (7.9) (32.0) (23.7) Income tax provision $ 48.1 $ 27.2 $ 103.1 $ 82.0 Net income attributable to Rockwell Automation Net unrealized losses (gains) on cash flow hedges: Forward exchange contracts $ (0.1) $ 1.0 $ (1.3) $ 0.8 Sales Forward exchange contracts 8.6 (7.4) 22.6 (19.4) Cost of sales Forward exchange contracts (0.4) 0.7 (1.3) 1.3 Selling, general and administrative expenses Treasury locks related to 2019 debt issuance 0.5 0.4 1.5 1.5 Interest expense 8.6 (5.3) 21.5 (15.8) Income before income taxes (2.2) 1.6 (5.7) 4.4 Income tax provision $ 6.4 $ (3.7) $ 15.8 $ (11.4) Net income attributable to Rockwell Automation Total reclassifications $ 54.5 $ 23.5 $ 118.9 $ 70.6 Net income attributable to Rockwell Automation (1) These components are included in the computation of net periodic benefit cost (credit). See Note 10 for further information. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The composition of our segments is as follows: Intelligent Devices Software & Control (1) Lifecycle Services (2) Drives (2) Control software & hardware Consulting Motion (1) Visualization software & hardware Professional services and solutions Safety (1) Digital twin & simulation software Connected services Sensing (1) Information solutions software Maintenance services Industrial components (2) Network & security infrastructure Sensia joint venture Configured-to-order products (2) (1) Formerly part of the Architecture & Software segment (2) Formerly part of the Control Products & Solutions segment The following tables reflect the sales and operating results of our reportable segments including recast information for the three and nine months ended June 30, 2020 (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Sales Intelligent Devices $ 882.9 $ 659.9 $ 2,454.8 $ 2,221.5 Software & Control 509.6 364.7 1,452.9 1,265.4 Lifecycle Services 455.7 369.4 1,281.9 1,272.9 Total $ 1,848.2 $ 1,394.0 $ 5,189.6 $ 4,759.8 Segment operating earnings Intelligent Devices $ 193.6 $ 111.6 $ 535.8 $ 452.9 Software & Control 128.3 82.1 411.2 359.3 Lifecycle Services 46.8 35.7 121.1 127.8 Total 368.7 229.4 1,068.1 940.0 Purchase accounting depreciation and amortization (12.9) (10.6) (37.7) (30.1) Corporate and other (29.2) (26.4) (87.6) (76.9) Non-operating pension and postretirement benefit cost (34.3) (8.6) (48.3) (25.9) Gain on investments 43.3 175.5 624.6 101.7 Legal Settlement — — 70.0 — Interest (expense) income - net (22.1) (24.8) (67.2) (72.3) Income before income taxes $ 313.5 $ 334.5 $ 1,521.9 $ 836.5 |
Components Of Identifiable Assets Depreciation And Amortization And Capital Expenditures For Property | The following table summarizes the identifiable assets at June 30, 2021, and September 30, 2020, for each of the reportable segments and Corporate (in millions): June 30, September 30, Identifiable assets: Intelligent Devices $ 1,814.8 $ 1,585.0 Software & Control 1,497.6 1,072.7 Lifecycle Services 1,894.6 1,915.0 Corporate 3,366.1 2,692.0 Total $ 8,573.1 $ 7,264.7 |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies - Narrative (Details) - USD ($) shares in Millions | Oct. 01, 2019 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Allowance for doubtful accounts | $ 14,900,000 | $ 14,900,000 | $ 15,200,000 | ||||
Allowance for certain customer returns, rebates and incentives | $ 6,900,000 | $ 6,900,000 | 8,100,000 | ||||
Antidilutive share-based compensation awards (in shares) | 0.2 | 1.4 | 0.2 | 1.5 | |||
Capital expenditures in accounts payable or other current liabilities at period end | $ 18,000,000 | $ 10,400,000 | |||||
Outstanding purchase of common stock recorded in accounts payable | 1,800,000 | $ 0 | |||||
Operating lease right-of-use assets | $ 338,700,000 | $ 338,700,000 | $ 342,900,000 | ||||
Plex Systems | Forecast | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Payments to acquire businesses, gross | $ 2,220,000,000 | ||||||
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 | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Reclassification from AOCI to retained earnings | $ 147,000,000 |
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 | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciled Basic and Diluted EPS | ||||
Net income attributable to Rockwell Automation | $ 271.3 | $ 317.8 | $ 1,279.6 | $ 760.7 |
Less: Allocation to participating securities | (0.4) | (0.3) | (2.1) | (0.7) |
Net income available to common shareowners | $ 270.9 | $ 317.5 | $ 1,277.5 | $ 760 |
Basic weighted average outstanding shares (in shares) | 116 | 115.7 | 116 | 115.8 |
Effect of dilutive securities | ||||
Stock options (in shares) | 0.9 | 0.6 | 1 | 0.7 |
Performance shares (in shares) | 0.1 | 0.1 | 0.1 | 0 |
Diluted weighted average outstanding shares (in shares) | 117 | 116.4 | 117.1 | 116.5 |
Earnings per share: | ||||
Basic (in usd per share) | $ 2.34 | $ 2.74 | $ 11.01 | $ 6.56 |
Diluted (in usd per share) | $ 2.32 | $ 2.73 | $ 10.91 | $ 6.52 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue to be recognized in future periods | $ 620 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue to be recognized in future periods | $ 350 |
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 | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,848.2 | $ 1,394 | $ 5,189.6 | $ 4,759.8 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,086.7 | 826 | 3,064.7 | 2,855 |
Europe, Middle East and Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 377.3 | 280.4 | 1,052.8 | 924.1 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 274.8 | 206.9 | 743.6 | 637.3 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 109.4 | 80.7 | 328.5 | 343.4 |
Intelligent Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 882.9 | 659.9 | 2,454.8 | 2,221.5 |
Intelligent Devices | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 548.5 | 417.8 | 1,536.7 | 1,404.5 |
Intelligent Devices | Europe, Middle East and Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 162.8 | 119.3 | 445.1 | 385.6 |
Intelligent Devices | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 118.1 | 89.6 | 316.6 | 276.6 |
Intelligent Devices | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 53.5 | 33.2 | 156.4 | 154.8 |
Software & Control | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 509.6 | 364.7 | 1,452.9 | 1,265.4 |
Software & Control | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 302.9 | 216.8 | 878.5 | 780.1 |
Software & Control | Europe, Middle East and Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 103.3 | 71.9 | 286.2 | 222.8 |
Software & Control | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 74.4 | 61.5 | 204 | 187 |
Software & Control | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 29 | 14.5 | 84.2 | 75.5 |
Lifecycle Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 455.7 | 369.4 | 1,281.9 | 1,272.9 |
Lifecycle Services | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 235.3 | 191.4 | 649.5 | 670.4 |
Lifecycle Services | Europe, Middle East and Africa (EMEA) | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 111.2 | 89.2 | 321.5 | 315.7 |
Lifecycle Services | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 82.3 | 55.8 | 223 | 173.7 |
Lifecycle Services | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 26.9 | $ 33 | $ 87.9 | $ 113.1 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2020segment | Jun. 30, 2021USD ($)segment | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | segment | 3 | 3 |
Contract with customer, asset | $ 0 | |
Contract with customer, liability, revenue recognized | $ 217,600,000 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Contract With Customer, Liability [Roll Forward] | |||
Balance as of beginning of fiscal year | $ 325.3 | $ 341.7 | $ 275.6 |
Balance as of end of period | $ 413.2 | $ 325.3 | $ 341.7 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-Based Compensation (Textual) [Abstract] | ||||
Pre-tax share-based compensation expense | $ 13.5 | $ 12.3 | $ 37.9 | $ 34.7 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants (in shares) | 196 | 973 | ||
Wtd. Avg. Share Fair Value (usd per share) | $ 55.50 | $ 35.79 | ||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants (in shares) | 44 | 37 | ||
Wtd. Avg. Share Fair Value (usd per share) | $ 298.10 | $ 265.04 | ||
Restricted stock and restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants (in shares) | 181 | 67 | ||
Wtd. Avg. Share Fair Value (usd per share) | $ 248.16 | $ 198.77 | ||
Unrestricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants (in shares) | 6 | 7 | ||
Wtd. Avg. Share Fair Value (usd per share) | $ 228.80 | $ 171.51 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Inventories | ||
Finished goods | $ 287.8 | $ 243 |
Work in process | 200.9 | 159.1 |
Raw materials | 245.7 | 181.9 |
Inventories | $ 734.4 | $ 584 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed - Oylo and Fiix Inc. (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | |
Purchase Price Allocation | |||
Goodwill | $ 1,916 | $ 1,650.3 | |
Oylo And Fiix Inc. | |||
Purchase Price Allocation | |||
Accounts receivable | $ 6 | ||
All other assets | 15.9 | ||
Goodwill | 224.8 | ||
Intangible assets | 69.6 | ||
Total assets acquired | 316.3 | ||
Less: Liabilities assumed | (25.5) | ||
Less: Deferred income taxes | (3.7) | ||
Net assets acquired | 287.1 | ||
Purchase Consideration | |||
Total purchase consideration, net of cash acquired | $ 287.1 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,916 | $ 1,650.3 | |
Lifecycle Services | |||
Business Acquisition [Line Items] | |||
Goodwill | 639.5 | 0 | |
Software & Control | |||
Business Acquisition [Line Items] | |||
Goodwill | 726.1 | $ 0 | |
Oylo And Fiix Inc. | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 224.8 | ||
Oylo And Fiix Inc. | Customer Relationships, Technology, and Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 69.6 | ||
Acquired finite-lived intangible assets, weighted average useful life | 11 years | ||
Oylo And Fiix Inc. | Lifecycle Services | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 12.8 | ||
Oylo And Fiix Inc. | Software & Control | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 212 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill | |
Balance at beginning of period | $ 1,650.3 |
Reallocation due to change in Segments | 0 |
Acquisition of businesses | 224.8 |
Translation | 40.9 |
Balance at end of period | 1,916 |
Architecture & Software | |
Goodwill | |
Balance at beginning of period | 609.4 |
Reallocation due to change in Segments | (609.4) |
Acquisition of businesses | 0 |
Translation | 0 |
Balance at end of period | 0 |
Control Products & Solutions | |
Goodwill | |
Balance at beginning of period | 1,040.9 |
Reallocation due to change in Segments | (1,040.9) |
Acquisition of businesses | 0 |
Translation | 0 |
Balance at end of period | 0 |
Intelligent Devices | |
Goodwill | |
Balance at beginning of period | 0 |
Reallocation due to change in Segments | 535.1 |
Acquisition of businesses | 0 |
Translation | 15.3 |
Balance at end of period | 550.4 |
Software & Control | |
Goodwill | |
Balance at beginning of period | 0 |
Reallocation due to change in Segments | 497.3 |
Acquisition of businesses | 212 |
Translation | 16.8 |
Balance at end of period | 726.1 |
Lifecycle Services | |
Goodwill | |
Balance at beginning of period | 0 |
Reallocation due to change in Segments | 617.9 |
Acquisition of businesses | 12.8 |
Translation | 8.8 |
Balance at end of period | $ 639.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - segment | 3 Months Ended | 9 Months Ended |
Dec. 31, 2020 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Number of operating segments | 3 | 3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Other intangible assets | ||
Amortized intangible assets, carrying amount | $ 883.5 | $ 795.9 |
Amortized intangible assets, accumulated amortization | 414.4 | 360.3 |
Amortized intangible assets, net | 469.1 | 435.6 |
Total, carrying amount | 927.2 | 839.6 |
Total, net | 512.8 | 479.3 |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||
Estimated amortization expense, remainder of fiscal year | 59.3 | |
Estimated amortization expense in 2022 | 57.7 | |
Estimated amortization expense in 2023 | 56.4 | |
Estimated amortization expense in 2024 | 53.4 | |
Estimated amortization expense in 2025 | 51.2 | |
Trademarks | ||
Other intangible assets | ||
Allen-Bradley trademark not subject to amortization | 43.7 | 43.7 |
Software products | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 197.2 | 192.7 |
Amortized intangible assets, accumulated amortization | 147.4 | 139 |
Amortized intangible assets, net | 49.8 | 53.7 |
Customer relationships | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 368.2 | 351.3 |
Amortized intangible assets, accumulated amortization | 115.7 | 92.5 |
Amortized intangible assets, net | 252.5 | 258.8 |
Technology | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 225.4 | 165.8 |
Amortized intangible assets, accumulated amortization | 99.7 | 84 |
Amortized intangible assets, net | 125.7 | 81.8 |
Trademarks | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 77.2 | 71.7 |
Amortized intangible assets, accumulated amortization | 37.1 | 31.3 |
Amortized intangible assets, net | 40.1 | 40.4 |
Other | ||
Other intangible assets | ||
Amortized intangible assets, carrying amount | 15.5 | 14.4 |
Amortized intangible assets, accumulated amortization | 14.5 | 13.5 |
Amortized intangible assets, net | $ 1 | $ 0.9 |
Short-term Debt - Narrative (De
Short-term Debt - Narrative (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 24,600,000 | $ 24,600,000 |
Interest Bearing Loan | ||
Debt Instrument [Line Items] | ||
Short-term debt | 23,500,000 | |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 0 | $ 0 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Other current liabilities | ||
Unrealized losses on foreign exchange contracts | $ 41.5 | $ 24.3 |
Product warranty obligations | 19.1 | 20.8 |
Taxes other than income taxes | 80 | 58.5 |
Accrued interest | 29.9 | 14.9 |
Dividends payable | 124.4 | 0 |
Income taxes payable | 48.5 | 79.8 |
Operating lease liabilities | 89.8 | 89.7 |
Other | 105.2 | 88.5 |
Other current liabilities | $ 538.4 | $ 376.5 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Fixed income securities | $ 0.6 | $ 0.6 |
Equity securities | 1,494.8 | 875.3 |
Other | 94.6 | 78.2 |
Total investments | 1,590 | 954.1 |
Less: Short-term investments | (0.6) | (0.6) |
Long-term investments | $ 1,589.4 | $ 953.5 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | May 11, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Jul. 19, 2018 |
Subsidiary, Sale of Stock [Line Items] | |||||||
Equity securities | $ 1,494.8 | $ 1,494.8 | $ 875.3 | ||||
Change in fair value of investments | 624.6 | $ 101.7 | |||||
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 | ||||||
Sale of stock, subsequent trading period | 90 days | ||||||
Sale of stock, subsequent trading period, marketed underwritten offerings | 1 year | ||||||
Equity securities | 1,494.8 | 1,494.8 | |||||
Change in fair value of investments | $ 38.2 | $ 175.5 | $ 619.5 | $ 101.7 | |||
PTC | Minimum | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Percentage of total outstanding common stock, that can be traded in future periods | 1.00% | ||||||
Percentage of total outstanding common stock that can be traded in future periods, marketed underwritten offerings | 5.00% |
Retirement Benefits - Component
Retirement Benefits - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 |
Pension Benefits | |||||||
Components of net periodic benefit cost (income) | |||||||
Service cost | $ 23.1 | $ 22.6 | $ 68.7 | $ 68.2 | |||
Interest cost | 31.5 | 34 | 94.3 | 102.3 | |||
Expected return on plan assets | (60.9) | (60.9) | (182) | (183.3) | |||
Amortization: | |||||||
Prior service cost | 0.3 | 0.2 | 1 | 0.7 | |||
Net actuarial loss | 37 | 36.7 | 110.5 | 110.3 | |||
Settlements | $ (27.2) | 27.2 | (0.8) | 26.8 | (2.3) | ||
Net periodic benefit credit | $ 58.2 | 31.8 | $ 119.3 | 95.9 | |||
Decrease in net benefit obligation for remeasurement due to settlement | $ 500.9 | ||||||
Defined benefit plan, assumptions used calculating benefit obligation, discount rate | 3.05% | 3.05% | 3.05% | 3.05% | 2.90% | ||
Other Postretirement Benefits | |||||||
Components of net periodic benefit cost (income) | |||||||
Service cost | $ 0.3 | 0.3 | $ 0.8 | 0.8 | |||
Interest cost | 0.3 | 0.4 | 0.9 | 1.2 | |||
Amortization: | |||||||
Prior service cost | (1.4) | (1.4) | (4.1) | (4.1) | |||
Net actuarial loss | 0.3 | 0.4 | 0.9 | 1.1 | |||
Net periodic benefit credit | $ (0.5) | $ (0.3) | $ (1.5) | $ (1) |
Other (Expense) Income (Details
Other (Expense) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 0.3 | $ 0.7 | $ 1.1 | $ 5.1 |
Royalty income | 2.9 | 2.1 | 7.5 | 6.7 |
Legacy product liability and environmental charges | (4) | (4.1) | (9.4) | (12.5) |
Non-operating pension and postretirement benefit cost | (34.3) | (8.6) | (48.3) | (25.9) |
Legal settlement (Note 13) | 0 | 0 | 70 | 0 |
Other | 0.2 | 10.3 | (0.8) | 8.2 |
Other (expense) income | $ (34.9) | $ 0.4 | $ 20.1 | $ (18.4) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 2,128.7 | $ 937.9 | $ 1,346.8 | $ 404.2 |
Other comprehensive income | 450.3 | 56 | 538.6 | 60.6 |
Balance at end of period | 2,578.1 | 1,089.1 | 2,578.1 | 1,089.1 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 2.2 | |||
Total accumulated other comprehensive loss, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (1,526) | (1,625.8) | (1,614.2) | (1,488) |
Other comprehensive income (loss) before reclassifications | 396.5 | 32.4 | 420.3 | (9.5) |
Amounts reclassified from accumulated other comprehensive loss | 54.5 | 23.5 | 118.9 | 70.6 |
Other comprehensive income | 451 | 55.9 | 539.2 | 61.1 |
Balance at end of period | (1,075) | (1,569.9) | (1,075) | (1,569.9) |
Total accumulated other comprehensive loss, net of tax | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (146.8) | |||
Balance at end of period | (143) | (143) | ||
Pension and other postretirement benefit plan adjustments, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (1,215.6) | (1,225.7) | (1,271.2) | (1,133.7) |
Other comprehensive income (loss) before reclassifications | 379.1 | 0 | 379.7 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 48.1 | 27.2 | 103.1 | 82 |
Other comprehensive income | 427.2 | 27.2 | 482.8 | 82 |
Balance at end of period | (788.4) | (1,198.5) | (788.4) | (1,198.5) |
Pension and other postretirement benefit plan adjustments, net of tax | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at end of period | (146.8) | (146.8) | ||
Accumulated currency translation adjustments, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (275.7) | (389.1) | (311.5) | (341.3) |
Other comprehensive income (loss) before reclassifications | 23 | 40.1 | 58.8 | (11.5) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Other comprehensive income | 23 | 40.1 | 58.8 | (11.5) |
Balance at end of period | (252.7) | (349) | (252.7) | (349) |
Accumulated currency translation adjustments, net of tax | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at end of period | 3.8 | 3.8 | ||
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 | (34.7) | (11) | (31.5) | (13) |
Other comprehensive income (loss) before reclassifications | (5.6) | (7.7) | (18.2) | 2 |
Amounts reclassified from accumulated other comprehensive loss | 6.4 | (3.7) | 15.8 | (11.4) |
Other comprehensive income | 0.8 | (11.4) | (2.4) | (9.4) |
Balance at end of period | $ (33.9) | (22.4) | $ (33.9) | (22.4) |
Net unrealized gains (losses) on cash flow hedges, net of tax | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at end of period | $ 0 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications out of Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (expense) income | $ (34.9) | $ 0.4 | $ 20.1 | $ (18.4) |
Sales | 1,848.2 | 1,394 | 5,189.6 | 4,759.8 |
Cost of sales | (1,083.8) | (839.8) | (3,011.3) | (2,803.9) |
Selling, general and administrative expenses | (436.9) | (370.2) | (1,232.8) | (1,125.4) |
Interest expense | (22.4) | (25.4) | (68.3) | (77.3) |
Income before income taxes | 313.5 | 334.5 | 1,521.9 | 836.5 |
Income tax provision | (44.5) | (20.3) | (252.2) | (77) |
Net income attributable to Rockwell Automation | 271.3 | 317.8 | 1,279.6 | 760.7 |
Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income attributable to Rockwell Automation | 54.5 | 23.5 | 118.9 | 70.6 |
Pension and other postretirement benefit plan adjustments | Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | 63.4 | 35.1 | 135.1 | 105.7 |
Income tax provision | (15.3) | (7.9) | (32) | (23.7) |
Net income attributable to Rockwell Automation | 48.1 | 27.2 | 103.1 | 82 |
Amortization of prior service credit | Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (expense) income | (1.1) | (1.2) | (3.1) | (3.4) |
Amortization of net actuarial loss | Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (expense) income | 37.3 | 37.1 | 111.4 | 111.4 |
Settlements | Reclassification out of accumulated other comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (expense) income | 27.2 | (0.8) | 26.8 | (2.3) |
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 | 8.6 | (5.3) | 21.5 | (15.8) |
Income tax provision | (2.2) | 1.6 | (5.7) | 4.4 |
Net income attributable to Rockwell Automation | 6.4 | (3.7) | 15.8 | (11.4) |
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) | 1 | (1.3) | 0.8 |
Cost of sales | 8.6 | (7.4) | 22.6 | (19.4) |
Selling, general and administrative expenses | (0.4) | 0.7 | (1.3) | 1.3 |
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] | ||||
Interest expense | $ 0.5 | $ 0.4 | $ 1.5 | $ 1.5 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Gain (loss) related to litigation settlement | $ 70 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 14.20% | 6.10% | 16.60% | 9.20% | |
U.S. statutory rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Income tax liabilities | $ 264.9 | $ 264.9 | $ 296 | ||
Gross unrecognized tax benefits | 20.2 | 20.2 | 25.5 | ||
Accrued interest and penalties related to unrecognized tax benefits | 4 | 4 | $ 4 | ||
Reasonably possible amount of reduction in gross unrecognized tax benefits for the next twelve months | 19.6 | 19.6 | |||
Reasonably possible amount of net reduction to income tax provision if unrecognized tax benefits were recognized | $ 22.9 | $ 22.9 |
Business Segment Information -
Business Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2020segment | Jun. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 3 | 3 | |
Assets | $ 8,573.1 | $ 7,264.7 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,366.1 | 2,692 | |
Corporate | Shared Net Property | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 240.1 | $ 247.3 |
Business Segment Information _2
Business Segment Information - Sales and Operating Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Sales and operating results of reportable segments | ||||
Sales | $ 1,848.2 | $ 1,394 | $ 5,189.6 | $ 4,759.8 |
Purchase accounting depreciation and amortization | (12.9) | (10.6) | (37.7) | (30.1) |
Corporate and other | (29.2) | (26.4) | (87.6) | (76.9) |
Non-operating pension and postretirement benefit cost | (34.3) | (8.6) | (48.3) | (25.9) |
Gain on investments | 43.3 | 175.5 | 624.6 | 101.7 |
Legal Settlement | 0 | 0 | 70 | 0 |
Interest (expense) income - net | (22.1) | (24.8) | (67.2) | (72.3) |
Income before income taxes | 313.5 | 334.5 | 1,521.9 | 836.5 |
Operating Segments | ||||
Sales and operating results of reportable segments | ||||
Sales | 1,848.2 | 1,394 | 5,189.6 | 4,759.8 |
Segment operating earnings | 368.7 | 229.4 | 1,068.1 | 940 |
Intelligent Devices | ||||
Sales and operating results of reportable segments | ||||
Sales | 882.9 | 659.9 | 2,454.8 | 2,221.5 |
Intelligent Devices | Operating Segments | ||||
Sales and operating results of reportable segments | ||||
Sales | 882.9 | 659.9 | 2,454.8 | 2,221.5 |
Segment operating earnings | 193.6 | 111.6 | 535.8 | 452.9 |
Software & Control | ||||
Sales and operating results of reportable segments | ||||
Sales | 509.6 | 364.7 | 1,452.9 | 1,265.4 |
Software & Control | Operating Segments | ||||
Sales and operating results of reportable segments | ||||
Sales | 509.6 | 364.7 | 1,452.9 | 1,265.4 |
Segment operating earnings | 128.3 | 82.1 | 411.2 | 359.3 |
Lifecycle Services | ||||
Sales and operating results of reportable segments | ||||
Sales | 455.7 | 369.4 | 1,281.9 | 1,272.9 |
Lifecycle Services | Operating Segments | ||||
Sales and operating results of reportable segments | ||||
Sales | 455.7 | 369.4 | 1,281.9 | 1,272.9 |
Segment operating earnings | $ 46.8 | $ 35.7 | $ 121.1 | $ 127.8 |
Business Segment Information _3
Business Segment Information - Identifiable Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Assets | $ 8,573.1 | $ 7,264.7 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,366.1 | 2,692 |
Intelligent Devices | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,814.8 | 1,585 |
Software & Control | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,497.6 | 1,072.7 |
Lifecycle Services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 1,894.6 | $ 1,915 |