Consolidated Statement of Finan
Consolidated Statement of Financial Position (USD $) | ||
In Millions | Sep. 30, 2009
| Sep. 30, 2008
|
Current Assets: | ||
Cash and cash equivalents | $235 | $175 |
Receivables, net | 913 | 950 |
Inventories, net | 943 | 970 |
Current deferred income taxes | 154 | 139 |
Other current assets | 117 | 104 |
Total current assets | 2,362 | 2,338 |
Property | 719 | 680 |
Goodwill | 695 | 609 |
Intangible Assets | 269 | 198 |
Long-term Deferred Income Taxes | 371 | 144 |
Other Assets | 229 | 175 |
TOTAL ASSETS | 4,645 | 4,144 |
Current Liabilities: | ||
Short-term debt | 0 | 287 |
Accounts payable | 366 | 419 |
Compensation and benefits | 199 | 295 |
Advance payments from customers | 349 | 308 |
Product warranty costs | 217 | 226 |
Other current liabilities | 228 | 205 |
Total current liabilities | 1,359 | 1,740 |
Long-term Debt, net | 532 | 228 |
Retirement Benefits | 1,254 | 600 |
Other Liabilities | 208 | 168 |
Shareowners' Equity: | ||
Common stock ($0.01 par value; shares authorized: 1,000; shares issued: 183.8) | 2 | 2 |
Additional paid-in capital | 1,395 | 1,378 |
Retained earnings | 2,444 | 2,058 |
Accumulated other comprehensive loss | (1,080) | (578) |
Common stock in treasury, at cost (shares held: 2009, 26.7; 2008, 25.2) | (1,469) | (1,452) |
Total shareowners' equity | 1,292 | 1,408 |
TOTAL LIABILITIES AND SHAREOWNERS' EQUITY | $4,645 | $4,144 |
1_Consolidated Statement of Fin
Consolidated Statement of Financial Position (Parenthetical) (USD $) | ||
Share data in Millions | Sep. 30, 2009
| Sep. 30, 2008
|
Consolidated Statement of Financial Position (Parenthetical) [Abstract] | ||
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 183.8 | 183.8 |
Common stock shares held in treasury | 26.7 | 25.2 |
Consolidated Statement of Opera
Consolidated Statement of Operations (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Sep. 30, 2009 | 12 Months Ended
Sep. 30, 2008 | 12 Months Ended
Sep. 30, 2007 |
Sales: | |||
Product sales | $4,049 | $4,337 | $4,007 |
Service sales | 421 | 432 | 408 |
Total sales | 4,470 | 4,769 | 4,415 |
Costs, expenses and other: | |||
Product cost of sales | 2,863 | 3,041 | 2,819 |
Service cost of sales | 287 | 293 | 273 |
Selling, general and administrative expenses | 458 | 485 | 482 |
Interest expense | 18 | 21 | 13 |
Other income, net | (23) | (24) | (15) |
Total costs, expenses and other | 3,603 | 3,816 | 3,572 |
Income before income taxes | 867 | 953 | 843 |
Income tax provision | 273 | 275 | 258 |
Net income | $594 | $678 | $585 |
Earnings per share: | |||
Earnings per share - Basic | 3.76 | 4.22 | 3.5 |
Earnings per share - Diluted | 3.73 | 4.16 | 3.45 |
Weighted average common shares: | |||
Basic | 157.8 | 160.8 | 167.1 |
Diluted | 159.4 | 162.9 | 169.7 |
Cash dividends per share | 0.96 | 0.8 | 0.64 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Sep. 30, 2009 | 12 Months Ended
Sep. 30, 2008 | 12 Months Ended
Sep. 30, 2007 |
Operating Activities: | |||
Net income | $594 | $678 | $585 |
Adjustments to arrive at cash provided by operating activities: | |||
Restructuring and asset impairment charge (adjustment) | 21 | 0 | (5) |
Depreciation | 114 | 106 | 96 |
Amortization of intangible assets | 30 | 23 | 22 |
Stock-based compensation | 18 | 19 | 17 |
Compensation and benefits paid in common stock | 63 | 65 | 58 |
Tax benefit from stock-based compensation | 2 | 8 | 34 |
Excess tax benefit from stock-based compensation | (2) | (8) | (33) |
Deferred income taxes | 88 | 73 | 43 |
Pension plan contributions | (139) | (14) | (90) |
Change in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments: | |||
Receivables | 39 | (68) | (126) |
Inventories | 12 | (176) | (128) |
Accounts payable | (63) | 26 | 55 |
Compensation and benefits | (122) | (10) | 41 |
Advance payments from customers | 15 | 4 | 61 |
Income taxes | 0 | (67) | (23) |
Other assets and liabilities | (37) | (39) | 0 |
Cash Provided by Operating Activities | 633 | 620 | 607 |
Investing Activities: | |||
Property additions | (153) | (171) | (125) |
Acquisition of businesses, net of cash acquired | (146) | (105) | (32) |
Acquisition of intangible assets | (2) | (8) | (8) |
Proceeds from settlement of discontinued license agreement | 0 | 0 | 14 |
Proceeds from the disposition of property | 0 | 1 | 0 |
Other investing activities | (1) | (1) | (2) |
Cash Used for Investing Activities | (302) | (284) | (153) |
Financing Activities: | |||
Purchases of treasury stock | (153) | (576) | (333) |
Cash dividends paid | (152) | (129) | (107) |
(Decrease) increase in short-term borrowings | (287) | 287 | 0 |
Increase (decrease) in long-term borrowings | 296 | 0 | (27) |
Proceeds from the exercise of stock options | 19 | 17 | 61 |
Excess tax benefit from stock-based compensation | 2 | 8 | 33 |
Cash Used for Financing Activities | (275) | (393) | (373) |
Effect of exchange rate changes on cash and cash equivalents | 4 | 1 | 6 |
Net Change in Cash and Cash Equivalents | 60 | (56) | 87 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 175 | 231 | 144 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $235 | $175 | $231 |
Consolidated Statement of Share
Consolidated Statement of Shareowners' Equity and Comprehensive Income (USD $) | ||||
In Millions | 12 Months Ended
Sep. 30, 2009 | 12 Months Ended
Sep. 30, 2008 | 12 Months Ended
Sep. 30, 2007 | Sep. 30, 2006
|
Beginning balance | $1,408 | $1,573 | $1,206 | |
Net income | 594 | 678 | 585 | |
Ending balance | 1,292 | 1,408 | 1,573 | 1,206 |
Additional Paid-in Capital | ||||
Beginning balance | 1,378 | 1,353 | 1,305 | |
Tax benefit from stock-based compensation | 2 | 8 | 33 | |
Stock-based compensation | 18 | 19 | 17 | |
Other | (3) | (2) | (2) | |
Ending balance | 1,395 | 1,378 | 1,353 | 1,305 |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (578) | (336) | (393) | |
Minimum pension liability adjustment | 0 | 0 | 369 | |
Defined benefit retirement plan recognition adjustment | 0 | 0 | (329) | |
Pension and other retirement benefit adjustment | (516) | (229) | 0 | |
Currency translation gain (loss) | 14 | (15) | 19 | |
Foreign currency cash flow hedge adjustment | 0 | 2 | (2) | |
Ending balance | (1,080) | (578) | (336) | (393) |
Common Stock | ||||
Beginning balance | 2 | 2 | 2 | |
Ending balance | 2 | 2 | 2 | 2 |
Retained Earnings | ||||
Beginning balance | 2,058 | 1,533 | 1,105 | |
Cash dividends | (152) | (129) | (107) | |
Shares issued under stock option and benefit plans | (56) | (19) | (45) | |
Defined benefit plans remeasurement adjustment | 0 | 0 | (5) | |
Change in accounting for tax contingencies | 0 | (5) | 0 | |
Net income | 594 | 678 | 585 | |
Ending balance | 2,444 | 2,058 | 1,533 | 1,105 |
Common Stock in Treasury | ||||
Beginning balance | (1,452) | (979) | (813) | |
Share repurchases | (156) | (576) | (333) | |
Shares issued from treasury | 139 | 103 | 167 | |
Ending balance | (1,469) | (1,452) | (979) | (813) |
Comprehensive Income | ||||
Net income | 594 | 678 | 585 | |
Other comprehensive (loss) income, net of taxes (2009, $303; 2008, $132; 2007, $(216)) | (502) | (242) | 386 | |
Comprehensive Income | $92 | $436 | $971 |
2_Consolidated Statement of Sha
Consolidated Statement of Shareowners' Equity and Comprehensive Income (Parenthetical) (USD $) | |||
In Millions | 12 Months Ended
Sep. 30, 2009 | 12 Months Ended
Sep. 30, 2008 | 12 Months Ended
Sep. 30, 2007 |
Consolidated Statement of Shareowners' Equity and Comprehensive Income (Parenthetical) [Abstract] | |||
Tax impact on Other Comprehensive Income | $303 | $132 | ($216) |
Business Description and Basis
Business Description and Basis of Presentation | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Business Description and Basis of Presentation [Abstract] | |
Business Description and Basis of Presentation | 1. Business Description and Basis of Presentation Rockwell Collins, Inc. (the Company or Rockwell Collins) designs, produces and supports communications and aviation electronics for commercial and military customers worldwide. The Company operates on a 52/53 week fiscal year ending on the Friday closest to September 30. The Companys fiscal year 2009 was a 52 week year ending on October 2, 2009, while fiscal years 2008 and 2007 were 53 and 52 week years, respectively. For ease of presentation, September 30 is utilized consistently throughout these financial statements and notes to represent the fiscal year end date. All date references contained herein relate to the Companys fiscal year unless otherwise stated. Management has evaluated subsequent events through November 23, 2009, the date the Companys fiscal year 2009 Form 10-K was filed with the Securities and Exchange Commission. |
Significant Accounting Policies
Significant Accounting Policies | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Consolidation The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. The Companys investments in entities it does not control but over which it has the ability to exercise significant influence are accounted for under the equity method and are included in Other Assets. All intercompany transactions are eliminated. Revenue Recognition The Company enters into sales arrangements that may provide for multiple deliverables to a customer. The Company identifies all goods and/or services that are to be delivered separately under a sales arrangement and allocates revenue to each deliverable based on relative fair values. Fair values are generally established based on the prices charged when sold separately by the Company. In general, revenues are separated between hardware, engineering services, maintenance services, and installation services. The allocated revenue for each deliverable is then recognized using appropriate revenue recognition methods. Sales related to long-term contracts requiring development and delivery of products over several years are accounted for under the percentage-of-completion method of accounting in accordance with the Construction-Type and Production-Type Contracts subtopic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification. Sales and earnings under these contracts are recorded either as products are shipped under the units-of-delivery method (for production effort), or based on the ratio of actual costs incurred to total estimated costs expected to be incurred related to the contract under the cost-to-cost method (for development effort). Purchase options and change orders are accounted for either as an integral part of the original contract or separately depending upon the nature and value of the item. Sales and costs related to profitable purchase options are included in estimates only when the options are exercised whereas sales and costs related to unprofitable purchase options are included in estimates when exercise is determined to be probable. Sales related to change orders are included in estimates only if they can be reliably estimated and collectability is reasonably assured. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. Changes in estimates of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed. Sales related to long-term separately priced product maintenance or warranty contracts are accounted for based on the terms of the underlying agreements. Certain contracts are fixed-price contracts with sales recognized ratably over the contractual life, while other contracts have a fixed hourly rate with sales recognized based on actual labor or flight hours incurred. The cost of providing these services is expensed as incurred. The Company recognizes sales for most other products or services when all of the following criteria are met: an agreement of sale exists, product delivery and acceptance has occurred or services have been rendered |
Acquisitions
Acquisitions | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions During the years ended September 30, 2009, 2008 and 2007, the Company completed four acquisitions that are summarized as follows: Intangible Assets Weighted Fiscal Cash Average Year Purchase Finite Life in (dollars in millions) Acquired Price Goodwill Lived Years DataPath, Inc....................................................................... 2009 $ 125 $ 53 $ 36 6 SEOS Group Limited........................................................... 2009 28 28 9 9 Athena Technologies, Inc................................................ 2008 107 66 46 10 Information Technology Applications Corporation. 2007 37 26 12 7 DataPath, Inc. On May 29, 2009, the Company acquired all the shares of DataPath, Inc. (DataPath). DataPath, with operations in the U.S. and Sweden, is a global leader in creating satellite-based communication solutions, primarily for military applications. The purchase price, net of cash acquired, was approximately $125 million, of which $118 million was paid in cash during 2009 and $7 million is to be paid over the next two years. The Company is in the process of allocating the purchase price and obtaining a valuation for acquired intangible assets and their useful lives. Based on the Companys preliminary allocation of the purchase price, $53 million has been allocated to goodwill and $36 million to finite-lived intangible assets with a weighted average life of approximately 6 years. The excess purchase price over net assets acquired reflects the Companys view that this acquisition will augment the Companys networked communication offerings. The Company currently estimates that none of the goodwill resulting from the acquisition is tax deductible. The goodwill is included within the Government Systems segment. SEOS Group Limited On November 24, 2008, the Company acquired all the shares of SEOS Group Limited (SEOS). SEOS, with operations in the United Kingdom and the U.S., is a leading global supplier of highly realistic visual display solutions for commercial and military flight simulators. SEOS is included within the results of both the Government Systems and Commercial Systems segments. The cash purchase price, net of cash acquired, was $28 million. Additional consideration of up to $8 million may be paid post-closing, contingent upon the achievement of certain milestones. Any such additional consideration will be accounted for as goodwill. The Company is in the process of finalizing the pre-acquisition income tax calculation and other adjustments related to the purchase price allocation. Based on the Companys preliminary allocation of the purchase price, $28 million has been allocated to goodwill and $9 million to finite-lived intangible assets with a weighted average life of approximately 9 years. The excess purchase price over net assets acquired reflects the Companys view that this acquisition will further enhance the Companys simulation and training capabilities and provide more innovative and in |
Receivables, Net
Receivables, Net | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Receivables, Net [Abstract] | |
Receivables, Net | 4. Receivables, Net Receivables, net are summarized as follows: September 30 (in millions) 2009 2008 Billed................................................................................................................................. $ 734 $ 726 Unbilled............................................................................................................................ 217 254 Less progress payments................................................................................................ (27 ) (21 ) Total............................................................................................................................ 924 959 Less allowance for doubtful accounts........................................................................ (11 ) (9 ) Receivables, net.............................................................................................................. $ 913 $ 950 Receivables not expected to be collected during the next twelve months are classified as long-term and are included within Other Assets. Unbilled receivables principally represent sales recorded under the percentage-of-completion method of accounting that have not been billed to customers in accordance with applicable contract terms. |
Inventories, Net
Inventories, Net | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Inventories, Net [Abstract] | |
Inventories, Net | 5. Inventories, Net Inventories, net are summarized as follows: September 30 (in millions) 2009 2008 Finished goods............................................................................................................... $ 177 $ 244 Work in process.............................................................................................................. 262 270 Raw materials, parts, and supplies............................................................................... 341 362 Less progress payments................................................................................................ (77 ) (72 ) Total............................................................................................................................ 703 804 Pre-production engineering costs................................................................................ 240 166 Inventories, net............................................................................................................... $ 943 $ 970 Beginning in 2009, pre-production engineering costs have been presented separately within inventories. In prior years, such amounts had been presented within work in process inventories. Prior year amounts have been reclassified to conform to the current year presentation. In accordance with industry practice, inventories include amounts which are not expected to be realized within one year. These amounts primarily relate to life-time buy inventory and pre-production engineering costs not expected to be realized within one year of $301 million and $227 million at September 30, 2009 and 2008, respectively. Life-time buy inventory is inventory that is typically no longer produced by the Companys vendors but for which multiple years of supply are purchased in order to meet production and service requirements over the life span of a product. |
Property
Property | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Property [Abstract] | |
Property | 6. Property Property is summarized as follows: September 30 (in millions) 2009 2008 Land.................................................................................................................................. $ 30 $ 30 Buildings and improvements........................................................................................ 349 342 Machinery and equipment............................................................................................ 891 807 Information systems software and hardware............................................................. 259 243 Furniture and fixtures..................................................................................................... 62 60 Construction in progress............................................................................................... 88 99 Total........................................................................................................................... 1,679 1,581 Less accumulated depreciation.................................................................................... (960 ) (901 ) Property............................................................................................................................ $ 719 $ 680 Property additions acquired by incurring accounts payable, which are reflected as a non-cash transaction in the Companys Consolidated Statement of Cash Flows, were $12 million, $26 million, and $29 million at September 30, 2009, 2008, and 2007, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Changes in the carrying amount of goodwill are summarized as follows: Government Commercial (in millions) Systems Systems Total Balance at September 30, 2007........................................................... $ 353 $ 191 $ 544 Athena acquisition.......................................................................... 67 - 67 Foreign currency translation adjustment..................................... (3 ) - (3 ) Other adjustments to goodwill....................................................... 1 - 1 Balance at September 30, 2008........................................................... 418 191 609 SEOS acquisition.............................................................................. 20 8 28 DataPath acquisition....................................................................... 53 - 53 Foreign currency translation adjustments................................... 6 - 6 Athena goodwill adjustment.......................................................... (1 ) - (1 ) Balance at September 30, 2009........................................................... $ 496 $ 199 $ 695 Intangible assets are summarized as follows: September 30, 2009 September 30, 2008 Accum Accum (in millions) Gross Amort Net Gross Amort Net Intangible assets with finite lives: Developed technology and patents...................... $ 214 $ (104 ) $ 110 $ 181 $ (87 ) $ 94 Customer relationships........................................... 174 (36 ) 138 105 (25 ) 80 License agreements................................................. 17 (4 ) 13 20 (4 ) 16 Trademarks and tradenames................................... 15 (9 ) 6 14 (8 ) 6 Intangible assets with indefinite lives: Trademarks and tradenames................................... 2 - 2 2 - 2 Intangible assets.......................................................... $ 422 $ (153 ) $ 269 $ 322 $ (124 ) $ 198 Amortization expense for intangible assets for 2009, 2008 and 2007 was $30 million, $23 million and $22 million, respectively. Annual amortization expense for intangible assets for 2010, 2011, 2012, 2013 and 2014 is expected to be $36 million, $35 million, $36 million, $32 million, and $32 million, respectively. |
Other Assets
Other Assets | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Other Assets [Abstract] | |
Other Assets | 8. Other Assets Other assets are summarized as follows: September 30 (in millions) 2009 2008 Long-term receivables.................................................................................................. $ 97 $ 71 Investments in equity affiliates................................................................................... 10 9 Exchange and rental assets, net of accumulated depreciation of $103 at September 30, 2009 and $98 at September 30, 2008........................................... 50 41 Other............................................................................................................................... 72 54 Other assets................................................................................................................... $ 229 $ 175 Investments in Equity Affiliates Investments in equity affiliates primarily consist of four joint ventures: Vision Systems International, LLC (VSI): VSI is a joint venture with Elbit Systems, Ltd. for the joint pursuit of helmet mounted cueing systems for the worldwide military fixed wing aircraft market Data Link Solutions LLC (DLS): DLS is a joint venture with BAE Systems, plc for the joint pursuit of the worldwide military data link market Integrated Guidance Systems LLC (IGS): IGS is a joint venture with Honeywell International Inc. for the joint pursuit of integrated precision guidance solutions for worldwide guided weapons systems Quest Flight Training Limited (Quest): Quest is a joint venture with Quadrant Group plc (Quadrant) that provides aircrew training services primarily for the United Kingdom Ministry of Defence Each joint venture is 50 percent owned by the Company and accounted for under the equity method. Under the equity method of accounting for investments, the Companys proportionate share of the earnings or losses of its equity affiliates are included in Net Income and classified as Other Income, Net in the Consolidated Statement of Operations. For segment performance reporting purposes, Rockwell Collins share of earnings or losses of VSI, DLS, IGS, and Quest are included in the operating results of the Government Systems segment. In the normal course of business or pursuant to the underlying joint venture agreements, the Company may sell products or services to equity affiliates. The Company defers a portion of the profit generated from these sales equal to its ownership interest in the equity affiliates until the underlying product is ultimately sold to an unrelated third party. Sales to equity affiliates were $96 million, $120 million, and $128 million for the years ended September 30, 2009, 2008, and 2007, respectively. The deferred portion of profit generated from sales to equity affiliates was $3 million and $4 million at September 30, 2009 and 2008, respectively. Exchange and Rental Assets Exchange and rental assets consist primarily of Company products that are either loaned or rented to customers on a short-term basis in connection with warranty and other service related activities or under operat |
Other Current Liabilities
Other Current Liabilities | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | 9. Other Current Liabilities Other current liabilities are summarized as follows: September 30 (in millions) 2009 2008 Customer incentives...................................................................................................... $ 122 $ 119 Contract reserves............................................................................................................ 11 13 Income taxes payable..................................................................................................... 4 2 Other................................................................................................................................. 91 71 Other current liabilities................................................................................................... $ 228 $ 205 |
Debt
Debt | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Debt [Abstract] | |
Debt | 10. Debt Short-term Debt Under the Companys commercial paper program, the Company may sell up to $850 million face amount of unsecured short-term promissory notes in the commercial paper market. The commercial paper notes may bear interest or may be sold at a discount, and will have a maturity of not more than 364 days from the time of issuance. At September 30, 2009, there were no outstanding short-term commercial paper borrowings. At September 30, 2008, short-term commercial paper borrowings outstanding were $266 million with a weighted average interest rate and maturity period of 1.99 percent and 12 days, respectively. Revolving Credit Facilities The Company has an $850 million unsecured revolving credit facility with various banks that matures in March 2012. The credit facility has options to extend the term for up to two one-year periods and/or increase the aggregate principal amount up to $1.2 billion. These options are subject to the approval of lenders. This credit facility exists primarily to support the Companys commercial paper program, but may be used for other corporate purposes in the event access to the commercial paper market is impaired or eliminated. The credit facility includes one financial covenant requiring the Company to maintain a consolidated debt to total capitalization ratio of not greater than 60 percent. The ratio excludes the accumulated other comprehensive loss equity impact related to defined benefit retirement plans. The ratio was 18 percent as of September 30, 2009. In addition, the credit facility contains other non-financial covenants that require the Company to satisfy certain conditions in order to incur debt secured by liens, engage in sale/leaseback transactions, or merge or consolidate with another entity. Borrowings under this credit facility bear interest at the London Interbank Offered Rate (LIBOR) plus a variable margin based on the Companys unsecured long-term debt rating or, at the Companys option, rates determined by competitive bid. At September 30, 2009 and 2008, there were no outstanding borrowings under this revolving credit facility. In addition, short-term credit facilities available to non-U.S. subsidiaries amounted to $62 million as of September 30, 2009, of which $22 million was utilized to support commitments in the form of commercial letters of credit. As of September 30, 2009, there were no short-term borrowings outstanding under the Companys non-U.S. subsidiaries credit facilities. At September 30, 2008 there were $21 million of short-term borrowings outstanding under the Companys non-U.S. subsidiaries credit facilities. At September 30, 2009 and 2008, there were no significant commitment fees or compensating balance requirements under any of the Companys credit facilities. Long-term Debt In addition to the Companys credit facilities and commercial paper program, the Company has a shelf registration statement filed with the Securities and Exchange Commission pursuant to which the Company can publicly offer and sell securities from time to time. This shelf registration covers an unlimited amount of debt securities, common stock, preferred stock or warra |
Retirement Benefits
Retirement Benefits | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Retirement Benefits [Abstract] | |
Retirement Benefits | 11. Retirement Benefits The Company sponsors defined benefit pension (Pension Benefits) and other postretirement (Other Retirement Benefits) plans which provide monthly pension and other benefits to eligible employees upon retirement. Pension Benefits The Company historically provided pension benefits to most of the Companys U.S. employees in the form of non-contributory, defined benefit plans that are considered qualified plans under applicable laws. The benefits provided under these plans for salaried employees are generally based on years of service and average compensation. The benefits provided under these plans for hourly employees are generally based on specified benefit amounts and years of service. In addition, the Company sponsors an unfunded non-qualified defined benefit plan for certain employees. In June 2003 the Company amended its U.S. qualified and non-qualified defined benefit pension plans to discontinue benefit accruals for salary increases and services rendered after September 30, 2006. These changes impacted all of the Companys domestic pension plans for all salaried and hourly employees who were not covered by collective bargaining agreements. Concurrently, the Company supplemented its existing defined contribution savings plan effective October 1, 2006 to include an additional Company contribution. The Company also maintains four defined benefit pension plans in countries outside of the U.S., two of which are unfunded. Other Retirement Benefits Other retirement benefits consist of retiree health care and life insurance benefits that are provided to substantially all of the Companys U.S. employees hired before October 1, 2006 and their beneficiaries. Employees generally become eligible to receive these benefits if they retire after age 55 with at least 10 years of service. Most plans are contributory with retiree contributions generally based upon years of service and adjusted annually by the Company. Retiree medical plans pay a stated percentage of expenses reduced by deductibles and other coverage, principally Medicare. The amount the Company will contribute toward retiree medical coverage for most employees is fixed. Additional premium contributions will be required from participants for all costs in excess of the Companys fixed contribution amount. Retiree life insurance plans provide coverage at a flat dollar amount or as a multiple of salary. With the exception of certain bargaining unit plans, Other Retirement Benefits are funded as expenses are incurred. Components of Expense (Income) The components of expense (income) for Pension Benefits and Other Retirement Benefits are summarized below: Pension Benefits Other Retirement Benefits (in millions) 2009 2008 2007 2009 2008 2007 Service cost............................................................. $ 5 $ 8 $ 8 $ 2 $ 4 $ 4 Interest cost............................................................. 169 163 151 14 14 15 Expected return on plan assets............................. (203 ) (201 |
Shareowners' Equity
Shareowners' Equity | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Shareowners' Equity [Abstract] | |
Shareowners' Equity | 12. Shareowners Equity Common Stock The Company is authorized to issue one billion shares of common stock, par value $0.01 per share, and 25 million shares of preferred stock, without par value, of which 2.5 million shares are designated as Series A Junior Participating Preferred Stock (Junior Preferred Stock) for issuance in connection with the exercise of preferred share purchase rights. Preferred Share Purchase Rights Each outstanding share of common stock provides the holder with one Preferred Share Purchase Right (Right). The Rights will become exercisable only if a person or group acquires, or offers to acquire, without prior approval of the Board of Directors, 15 percent or more of the Companys common stock. However, the Board of Directors is authorized to reduce the 15 percent threshold for triggering the Rights to not less than 10 percent. Upon exercise, each Right entitles the holder to 1/100th of a share of Junior Preferred Stock at a price of $125, subject to adjustment. Upon acquisition of the Company, each Right (other than Rights held by the acquirer) will generally be exercisable for $250 worth of either common stock of the Company or common stock of the acquirer for $125. In certain circumstances, each Right may be exchanged by the Company for one share of common stock or 1/100th of a share of Junior Preferred Stock. The Rights will expire on June 30, 2011, unless earlier exchanged or redeemed at $0.01 per Right. The Rights have the effect of substantially increasing the cost of acquiring the Company in a transaction not approved by the Board of Directors. Treasury Stock The Company repurchased shares of its common stock as follows: (in millions) 2009 2008 2007 Amount of share repurchases..................................................................... $ 156 $ 576 $ 333 Number of shares repurchased................................................................... 3.9 9.0 4.6 At September 30, 2009, the Company was authorized to repurchase an additional $209 million of outstanding stock under the Companys share repurchase program. Approximately $3 million of the 2009 treasury share repurchases reflected in the table above are included within accounts payable at September 30, 2009 and are therefore reflected as a non-cash transaction in the Companys 2009 Consolidated Statement of Cash Flows. The Company paid $19 million in 2007 related to the settlement of an accelerated share repurchase agreement executed in 2006, which is reflected in the table above. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following: September 30 (in millions) 2009 2008 2007 Unamortized pension and other retirement benefits, net of taxes of $647 for 2009; $344 for 2008 and $211 for 2007...................................... $ (1,105 ) $ (589 ) $ (360 ) Foreign currency translation adjustment................................................... 26 12 27 Foreign currency cash flow hedge adjustment............................. |
Stock-Based Compensation
Stock-Based Compensation | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation Stock-Based Compensation Program Description Under the Companys 2001 Long-Term Incentives Plan and Directors Stock Plan, up to 14.3 million shares of common stock may be issued by the Company as non-qualified options, incentive stock options, performance units, performance shares, stock appreciation rights, and restricted stock. Shares available for future grant or payment under these plans were 0.3 million at September 30, 2009. Under the Companys 2006 Long-Term Incentives Plan, up to 11.0 million shares of common stock may be issued by the Company as non-qualified options, incentive stock options, performance units, performance shares, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, and other awards. Each share issued pursuant to an award of restricted stock, restricted stock units, performance shares, and performance units counts as three shares against the authorized limit. Shares available for future grant or payment under this plan were 5.1 million at September 30, 2009. Options to purchase common stock of the Company have been granted under various incentive plans to directors, officers, and other key employees. All of the Companys stock-based incentive plans require options to be granted at prices equal to or above the fair market value of the common stock on the dates the options are granted. The plans provide that the option price for certain options granted under the plans may be paid by the employee in cash, shares of common stock, or a combination thereof. Certain option awards provide for accelerated vesting if there is a change in control. Stock options generally expire ten years from the date they are granted and generally vest ratably over three years. The Company has an ongoing share repurchase plan and expects to satisfy share option exercises from treasury stock. The Company utilizes performance shares and restricted stock that cliff vest at the end of three years. The number of performance shares that will ultimately be issued is based on achievement of performance targets over a three-year period that considers cumulative sales growth and return on sales with an additional potential adjustment up or down depending on the Companys total return to shareowners compared to a group of peer companies. The Company's stock-based compensation awards are designed to align management's interests with those of the Companys shareowners and to reward outstanding Company performance. The Company's stock-based compensation awards serve as an important retention tool because the awards generally vest over a three-year period or cliff vest at the end of three years. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period. Total stock-based compensation expense included within the Consolidated Statement of Operations for 2009, 2008, and 2007 is as follows: (in millions) 2009 2008 2007 Stock-based compensation expense included in: Product cost of sales................................................................................ $ 4 $ 4 $ |
Research and Development
Research and Development | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Research and Development [Abstract] | |
Research and Development | 14. Research and Development RD expense consists of the following: (in millions) 2009 2008 2007 Customer-funded......................................................................................... $ 493 $ 501 $ 480 Company-funded......................................................................................... 355 395 347 Total research and development............................................................... $ 848 $ 896 $ 827 |
Other Income, Net
Other Income, Net | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Other Income, Net [Abstract] | |
Other Income, Net | 15. Other Income, Net Other income, net consists of the following: (in millions) 2009 2008 2007 Earnings from equity affiliates................................................................... $ (8 ) $ (8 ) $ (8 ) Interest income............................................................................................. (5 ) (8 ) (4 ) Royalty income............................................................................................. (7 ) (11 ) (6 ) Other, net ...................................................................................................... (3 ) 3 3 Other income, net......................................................................................... $ (23 ) $ (24 ) $ (15 ) |
Income Taxes
Income Taxes | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | 16. Income Taxes The components of income tax expense are as follows: (in millions) 2009 2008 2007 Current: U.S. federal................................................................................................ $ 175 $ 200 $ 189 Non-U.S..................................................................................................... 6 2 12 U.S. state and local.................................................................................. 4 - 14 Total current................................................................................................. 185 202 215 Deferred: U.S. federal................................................................................................ 72 58 41 Non-U.S..................................................................................................... 10 11 (1 ) U.S. state and local.................................................................................. 6 4 3 Total deferred............................................................................................... 88 73 43 Income tax expense...................................................................................... $ 273 $ 275 $ 258 Net current deferred income tax benefits (liabilities) consist of the tax effects of temporary differences related to the following: September 30 (in millions) 2009 2008 Inventory............................................................................................................................... $ (1 ) $ 6 Product warranty costs........................................................................................................ 72 77 Customer incentives............................................................................................................. 30 27 Contract reserves.................................................................................................................. 12 11 Compensation and benefits................................................................................................ 7 (3 ) Other, net............................................................................................................................... 32 18 Current deferred income taxes, net..................................................................................... $ 152 $ 136 Net long-term deferred income tax benefits (liabilities) consist of the tax effects of temporary differences related to the following: September 30 (in millions) 2009 2008 Retirement benefits............................................................................................................... $ 407 $ 173 Intangibles............................................................................................................................. (37 ) (27 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 17. Fair Value of Financial Instruments Fair Value Measurements The Fair Value Measurements and Disclosures topic of the FASB Accounting Standards Codification defines fair value, establishes a framework for measuring fair value and expands the related disclosure requirements. The topic indicates, among other things, that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. It establishes a valuation hierarchy for disclosure of the inputs to valuation techniques used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument Level 3 - unobservable inputs based on the Companys own assumptions used to measure assets and liabilities at fair value A financial asset or liabilitys classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The fair value of the Companys financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2009 are as follows: Carrying Quoted prices Significant other Significant Amount In active observable unobservable Asset Markets inputs inputs (in millions) (Liability) (Level 1) (Level 2) (Level 3) Deferred compensation plan investments......... $ 35 $ 35 $ - $ - Interest rate swaps................................................ 8 - 8 - Foreign currency forward exchange contract assets................................................ 8 - 8 - Foreign currency forward exchange contract liabilities............................................ (11 ) - (11 ) - Valuation Techniques The deferred compensation plan investments consist of investments in marketable securities (primarily mutual funds) and the fair value is determined using the market approach based on quoted market prices of identical assets in active markets. The fair value of the interest rate swaps is determined using the market approach and is calculated by a pricing model with observable market inputs. The fair value of foreign currency forward exchange contracts is determined using the market approach and is calculated as the value of the quoted forward currency exchange rate less the contract rate multiplied by the notional amount. As of September 30, 2009, there has not been any impact to the fair value of derivative liabilities due to the Companys own credit risk. Similarly, there has not been any impact to the fair value of derivative ass |
Derivative Financial Instrument
Derivative Financial Instruments | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 18. Derivative Financial Instruments The Company uses derivative financial instruments in the form of foreign currency forward exchange contracts and interest rate swap contracts for the purpose of minimizing exposure to changes in foreign currency exchange rates on business transactions and interest rates, respectively. The Companys policy is to execute such instruments with banks the Company believes to be creditworthy and not to enter into derivative financial instruments for speculative purposes or to manage exposure for net investments in non-U.S. subsidiaries. These derivative financial instruments do not subject the Company to undue risk as gains and losses on these instruments generally offset gains and losses on the underlying assets, liabilities, or anticipated transactions that are being hedged. All derivative financial instruments are recorded at fair value in the Consolidated Statement of Financial Position. For a derivative that has not been designated as an accounting hedge, the change in the fair value is recognized immediately through earnings. For a derivative that has been designated as an accounting hedge of an existing asset or liability (a fair value hedge), the change in the fair value of both the derivative and underlying asset or liability is recognized immediately through earnings. For a derivative designated as an accounting hedge of an anticipated transaction (a cash flow hedge), the change in the fair value is recorded on the Consolidated Statement of Financial Position in Accumulated Other Comprehensive Loss (AOCL) to the extent the derivative is effective in mitigating the exposure related to the anticipated transaction. The change in the fair value related to the ineffective portion of the hedge, if any, is immediately recognized in earnings. The amount recorded within AOCL is reclassified into earnings in the same period during which the underlying hedge transaction affects earnings. The Company does not exclude any amounts from the measure of effectiveness for both fair value and cash flow hedges. All of the Companys derivatives were designated as accounting hedges as of September 30, 2009. The fair values of derivative instruments are presented on a gross basis as the Company does not have any derivative contracts which are subject to master netting arrangements. The Company does not have any hedges with credit-risk-related contingent features or that required the posting of collateral as of September 30, 2009. The cash flows from derivative contracts are recorded in operating activities in the Consolidated Statement of Cash Flows. Interest Rate Swaps The Company manages its exposure to interest rate risk by maintaining an appropriate mix of fixed and variable rate debt, which over time should moderate the costs of debt financing. When considered necessary, the Company may use financial instruments in the form of interest rate swaps to help meet this objective. On November 20, 2003, the Company entered into two interest rate swap contracts (the Swaps) which expire on December 1, 2013 and effectively convert $100 million of the 4.75 percent fixed rate long-term notes to floating rate d |
Guarantees and Indemnifications
Guarantees and Indemnifications | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Guarantees and Indemnifications [Abstract] | |
Guarantees and Indemnifications | 19. Guarantees and Indemnifications Product warranty costs Accrued liabilities are recorded to reflect the Companys contractual obligations relating to warranty commitments to customers. Warranty coverage of various lengths and terms is provided to customers depending on standard offerings and negotiated contractual agreements. An estimate for warranty expense is recorded at the time of sale based on the length of the warranty and historical warranty return rates and repair costs. Changes in the carrying amount of accrued product warranty costs are summarized as follows: September 30 (in millions) 2009 2008 Balance at beginning of year.............................................................................................. $ 226 $ 213 Warranty costs incurred..................................................................................................... (54 ) (53 ) Product warranty accrual.................................................................................................... 46 68 Acquisitions......................................................................................................................... 2 1 Pre-existing warranty adjustments.................................................................................... (3 ) (3 ) Balance at September 30..................................................................................................... $ 217 $ 226 Guarantees In connection with the 2006 acquisition of the Quest joint venture (see Note 8) the Company entered into a parent company guarantee related to various obligations of Quest. The Company has guaranteed, jointly and severally with Quadrant (the other joint venture partner), the performance of Quest in relation to its contract with the United Kingdom Ministry of Defence (which expires in 2030) and the performance of certain Quest subcontractors (up to $2 million). In addition, the Company has also pledged equity shares in Quest to guarantee payment by Quest of a loan agreement executed by Quest. In the event of default on this loan agreement, the lending institution can request that the trustee holding such equity shares surrender them to the lending institution in order to satisfy all amounts then outstanding under the loan agreement. As of September 30, 2009, the outstanding loan balance was approximately $6million. Quadrant has made an identical pledge to guarantee this obligation of Quest. Should Quest fail to meet its obligations under these agreements, these guarantees may become a liability of the Company. As of September 30, 2009, the Quest guarantees are not reflected on the Companys Consolidated Statement of Financial Position because the Company believes that Quest will meet all of its performance and financial obligations in relation to its contract with the United Kingdom Ministry of Defence and the loan agreement. Letters of credit The Company has contingent commitments in the form of letters of credit. Outstanding letters of credit are issued by banks on the Companys be |
Contractual Obligations and Oth
Contractual Obligations and Other Commitments | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Contractual Obligations and Other Commitments [Abstract] | |
Contractual Obligations and Other Commitments | 20. Contractual Obligations and Other Commitments The following table reflects certain of the Companys non-cancelable contractual commitments as of September 30, 2009: Payments Due By Period (in millions) 2010 2011 2012 2013 2014 Thereafter Total Non-cancelable operating leases................. $ 53 $ 40 $ 29 $ 22 $ 20 $ 43 $ 207 Purchase contracts......................................... 36 36 36 38 12 1 159 Long-term debt............................................... - 26 - - 200 300 526 Interest on long-term debt............................ 26 25 25 25 18 76 195 Total................................................................. $ 115 $ 127 $ 90 $ 85 $ 250 $ 420 $ 1,087 Non-cancelable Operating Leases The Company leases certain office and manufacturing facilities as well as certain machinery and equipment under various lease contracts with terms that meet the accounting definition of operating leases. Some leases include renewal options, which permit extensions of the expiration dates at rates approximating fair market rental rates. Rent expense for the years ended September 30, 2009, 2008, and 2007 was $61 million, $48 million, and $29 million, respectively. The Companys commitments under these operating leases, in the form of non-cancelable future lease payments, are not reflected as a liability on the Consolidated Statement of Financial Position. Purchase Contracts The Company may enter into purchase contracts with suppliers under which there is a commitment to buy a minimum amount of products or pay a specified amount. These commitments are not reflected as a liability on the Companys Consolidated Statement of Financial Position. Amounts purchased under these agreements for the years ended September 30, 2009, 2008, and 2007 were $31 million, $27 million, and $15 million, respectively. Interest on Long-term Debt Interest payments under long-term debt obligations exclude the potential effects of the related interest rate swap contracts. |
Environmental Matters
Environmental Matters | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Environmental Matters [Abstract] | |
Environmental Matters | 21. Environmental Matters The Company is subject to federal, state and local regulations relating to the discharge of substances into the environment, the disposal of hazardous wastes, and other activities affecting the environment that have had and will continue to have an impact on the Companys manufacturing operations. These environmental protection regulations may require the investigation and remediation of environmental impairments at current and previously owned or leased properties. In addition, lawsuits, claims and proceedings have been asserted on occasion against the Company alleging violations of environmental protection regulations, or seeking remediation of alleged environmental impairments, principally at previously owned or leased properties. As of September 30, 2009, the Company is involved in the investigation or remediation of eight sites under these regulations or pursuant to lawsuits asserted by third parties. Management estimates that the total reasonably possible future costs the Company could incur for seven of these sites is not significant. Management estimates that the total reasonably possible future costs the Company could incur from one of these sites to be approximately $8 million. The Company has recorded environmental reserves for this site of $3 million as of September 30, 2009, which represents managements best estimate of the probable future cost for this site. To date, compliance with environmental regulations and resolution of environmental claims has been accomplished without material effect on the Companys liquidity and capital resources, competitive position or financial condition. Management believes that expenditures for environmental capital investment and remediation necessary to comply with present regulations governing environmental protection and other expenditures for the resolution of environmental claims will not have a material adverse effect on the Companys business or financial position, but could possibly be material to the results of operations or cash flows of any one quarter. |
Legal Matters
Legal Matters | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Legal Matters [Abstract] | |
Legal Matters | 22. Legal Matters The Company is subject to various lawsuits, claims and proceedings that have been or may be instituted or asserted against the Company relating to the conduct of the Companys business, including those pertaining to product liability, antitrust, intellectual property, safety and health, exporting and importing, contract, employment and regulatory matters. Although the outcome of these matters cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to the Company, management believes the disposition of matters that are pending or asserted are not expected to have a material adverse effect on the Companys business or financial position, but could possibly be material to the results of operations or cash flows of any one quarter. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Restructuring and Asset Impairment Charges [Abstract] | |
Restructuring and Asset Impairment Charges | 23. Restructuring and Asset Impairment Charges In September 2009, the Company recorded restructuring and asset impairment charges totaling $21 million. These charges are primarily comprised of employee severance costs and a real estate impairment charge related to the Companys plans to close its Government Systems facility in San Jose, California and relocate engineering, production, and service work to other existing facilities. The charge also includes severance costs and an asset impairment charge related to other actions taken in response to the global economic factors that have negatively impacted the Companys commercial markets. As a result of these actions, the Company intends to reduce its workforce by approximately 700 employees. Approximately 5 percent of employee separation costs were incurred in 2009 with the remainder to be incurred during 2010. Employee separation costs of $10 million are included in Compensation and Benefits in the Consolidated Statement of Financial Position at September 30, 2009. The total restructuring and asset impairment charges are included in cost of sales and Selling, General and Administrative Expenses in the amounts of $19 million and $2 million, respectively. The components of the restructuring and asset impairment charges by segment are as follows: Government Commercial (in millions) Systems Systems Total Employee separation costs...................................................................... $ 8 $ 2 $ 10 Asset impairments.................................................................................... 8 3 11 Total restructuring and asset impairment charges............................... $ 16 $ 5 $ 21 |
Business Segment Information
Business Segment Information | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Business Segment Information [Abstract] | |
Business Segment Information | 24. Business Segment Information Rockwell Collins designs, produces and supports communications and aviation electronics for military and commercial customers worldwide. The Company has two operating segments consisting of the Government Systems and Commercial Systems businesses. Government Systems provides communication and electronic systems, products and services for airborne and surface applications to the U.S. Department of Defense, other government agencies, civil agencies, defense contractors and foreign ministries of defense. Commercial Systems supplies aviation electronics systems, products, and services to customers located throughout the world. The customer base is comprised of original equipment manufacturers (OEMs) of commercial air transport, business and regional aircraft, commercial airlines, fractional and other business aircraft operators. Sales made to the U.S. Government were 43 percent, 38 percent, and 36 percent of total sales for the years ended September 30, 2009, 2008, and 2007, respectively. The following table reflects the sales and operating results for each of the Companys operating segments: (in millions) 2009 2008 2007 Sales: Government Systems........................................................................................... $ 2,579 $ 2,366 $ 2,231 Commercial Systems............................................................................................ 1,891 2,403 2,184 Total sales...................................................................................................... $ 4,470 $ 4,769 $ 4,415 Segment operating earnings: Government Systems........................................................................................... $ 602 $ 486 $ 441 Commercial Systems............................................................................................ 353 560 485 Total segment operating earnings.............................................................. 955 1,046 926 Interest expense................................................................................................... (18 ) (21 ) (13 ) Stock-based compensation................................................................................ (18 ) (19 ) (17 ) Restructuring and asset impairment (charge) / adjustment........................... (21 ) - 5 General corporate, net......................................................................................... (31 ) (53 ) (58 ) Income before income taxes............................................................................... 867 953 843 Income tax provision........................................................................................... (273 ) (275 ) (258 ) Net income............................................................................................................ $ 594 $ |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Quarterly Financial Information [Abstract] | |
Quarterly Financial Information (Unaudited) | 25. Quarterly Financial Information (Unaudited) Quarterly financial information for the years ended September 30, 2009 and 2008 is summarized as follows: 2009 Quarters (in millions, except per share amounts) First Second Third Fourth Total Sales.......................................................................................... $ 1,058 $ 1,138 $ 1,084 $ 1,190 $ 4,470 Gross profit (total sales less product and service cost of sales)..................................................................... 326 353 325 316 1,320 Net income............................................................................... 151 164 145 134 594 Earnings per share: Basic................................................................................... $ 0.96 $ 1.04 $ 0.92 $ 0.85 $ 3.76 Diluted............................................................................... $ 0.95 $ 1.03 $ 0.91 $ 0.84 $ 3.73 2008 Quarters (in millions, except per share amounts) First Second Third Fourth Total Sales.......................................................................................... $ 1,112 $ 1,186 $ 1,194 $ 1,277 $ 4,769 Gross profit (total sales less product and service cost of sales)..................................................................... 343 346 367 379 1,435 Net income............................................................................... 154 168 174 182 678 Earnings per share: Basic................................................................................... $ 0.95 $ 1.04 $ 1.09 $ 1.14 $ 4.22 Diluted............................................................................... $ 0.93 $ 1.03 $ 1.07 $ 1.13 $ 4.16 Earnings per share amounts are computed independently each quarter. As a result, the sum of each quarters per share amount may not equal the total per share amount for the respective year. Net income in the fourth quarter of 2009 includes $14 million ($21 million before income taxes) related to the restructuring charge and impairment of long-lived assets discussed in Note 23. $19 million of the restructuring and asset impairment charges are included within Gross Profit. Net income in the fourth quarter of 2008 includes a discrete item related to the retroactive reinstatement and extension of the Federal RD Tax Credit, which lowered the Companys effective income tax rate by about 6 percentage points within the quarter. Net income in the second and third quarters of 2008 includes discrete items related to favorable income tax adjustments resulting from the resolution of certain tax settlements, which lowered the Companys effective income tax rate by 7 and 3 percentage points in the second and third quarters of 2008, |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | |
12 Months Ended
Sep. 30, 2009 USD / shares | |
Schedule II Valuation and Qualifying Account [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II ROCKWELL COLLINS, INC. VALUATION AND QUALIFYING ACCOUNTS For the Years Ended September 30, 2009, 2008, and 2007 (in millions) Balance at Charged to Balance at Beginning Costs and End of Description of Year Expenses Other Deductions (a) Year Year ended September 30, 2009: Allowance for doubtful accounts...... $ 9 $ 3 $ - $ (1) $ 11 Allowance for excess and obsolete inventories....................................... 105 39 3(c) (46) 101 Year ended September 30, 2008: Allowance for doubtful accounts...... 9 - - - 9 Allowance for excess and obsolete inventories....................................... 99 24 (2)(b) (16) 105 Year ended September 30, 2007: Allowance for doubtful accounts...... 12 - - (3) 9 Allowance for excess and obsolete inventories....................................... 110 21 1(b) (33) 99 ______________ (a) Amounts written off. (b) Amount represents foreign currency fluctuations for non-U.S. dollar denominated balances. Amounts relates to acquisition of DataPath and foreign currency fluctuations for non-U.S. dollar denominated balances. |
Document and Entity Information
Document and Entity Information (USD $) | |||
In Millions | 12 Months Ended
Sep. 30, 2009 | Oct. 31, 2009
| Apr. 03, 2009
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ROCKWELL COLLINS INC | ||
Entity Central Index Key | 0001137411 | ||
Trading Symbol | COL | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float as of April 3, 2009 | $5,269 | ||
Common stock outstanding on October 31, 2009 | 157,234,379 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | 2009-09-30 |