Quick10K

Rockwell Automation

Price	162.42		EPS	6
Shares	119		P/E	28
MCap	19,377		P/FCF	16
Net Debt	1,238		EBIT	999
TEV	20,615		TEV/EBIT	21
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-04-28 Print
10-Q	2020-12-31	Filed 2021-01-26 Print
10-K	2020-09-30	Filed 2020-11-10 Print
10-Q	2020-06-30	Filed 2020-07-28 Print
10-Q	2020-03-31	Filed 2020-04-28 Print
10-Q	2019-12-31	Filed 2020-01-29 Print
10-K	2019-09-30	Filed 2019-11-12 Print
10-Q	2019-06-30	Filed 2019-07-25 Print
10-Q	2019-03-31	Filed 2019-04-25 Print
10-Q	2018-12-31	Filed 2019-01-31 Print
10-K	2018-09-30	Filed 2018-11-09 Print
10-Q	2018-06-30	Filed 2018-07-27 Print
10-Q	2018-03-31	Filed 2018-05-02 Print
10-Q	2017-12-31	Filed 2018-01-31 Print
10-K	2017-09-30	Filed 2017-11-15 Print
10-Q	2017-06-30	Filed 2017-08-02 Print
10-Q	2017-03-31	Filed 2017-05-05 Print
10-Q	2016-12-31	Filed 2017-02-02 Print
10-K	2016-09-30	Filed 2016-11-15 Print
10-Q	2016-06-30	Filed 2016-08-03 Print
10-Q	2016-03-31	Filed 2016-05-04 Print
10-Q	2015-12-31	Filed 2016-02-03 Print
10-K	2015-09-30	Filed 2015-11-17 Print
10-Q	2015-06-30	Filed 2015-08-04 Print
10-Q	2015-03-31	Filed 2015-05-06 Print
10-Q	2014-12-31	Filed 2015-02-05 Print
10-K	2014-09-30	Filed 2014-11-18 Print
10-Q	2014-06-30	Filed 2014-08-05 Print
10-Q	2014-03-31	Filed 2014-05-05 Print
10-Q	2013-12-31	Filed 2014-02-06 Print
10-K	2013-09-30	Filed 2013-11-18 Print
10-Q	2013-06-30	Filed 2013-08-07 Print
10-Q	2013-03-31	Filed 2013-05-02 Print
10-K	2012-09-30	Filed 2012-11-19 Print
10-Q	2012-06-30	Filed 2012-08-02 Print
10-Q	2012-03-31	Filed 2012-05-03 Print
10-K	2011-09-30	Filed 2011-11-14 Print
10-Q	2011-06-30	Filed 2011-08-04 Print
10-Q	2011-03-31	Filed 2011-05-05 Print
10-Q	2010-06-30	Filed 2010-08-05 Print
10-Q	2010-03-31	Filed 2010-05-05 Print
10-Q	2009-12-31	Filed 2010-02-08 Print

8-K	2020-11-10
8-K	2020-11-10
8-K	2020-11-04
8-K	2020-10-13
8-K	2020-09-01
8-K	2020-07-28
8-K	2020-04-28
8-K	2020-04-20
8-K	2020-04-08
8-K	2020-02-21
8-K	2020-02-07
8-K	2020-01-29
8-K	2019-11-12
8-K	2019-09-30
8-K	2019-09-03
8-K	2019-07-25
8-K	2019-06-05
8-K	2019-05-29
8-K	2019-04-25
8-K	2019-02-27
8-K	2019-02-20
8-K	2019-02-08
8-K	2019-01-29
8-K	2018-11-13
8-K	2018-11-07
8-K	2018-11-01
8-K	2018-10-10
8-K	2018-07-25
8-K	2018-07-19
8-K	2018-06-11
8-K	2018-06-06
8-K	2018-04-25
8-K	2018-02-19
8-K	2018-02-06
8-K	2018-01-24

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Balance Sheet	Income Statement	Cash Flow
CopyHistoryView Assets, Equity	CopyHistoryView Rev, G Profit, Net Income	CopyHistoryView Ops, Inv, Fin

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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 six months ended March 31, 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 $14.3 million at March 31, 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 $8.9 million at March 31, 2021, and $8.1 million at September 30, 2020. The changes to our allowance for doubtful accounts during the three and six months ended March 31, 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):

Copy History

			Three Months Ended March 31,												Six Months Ended March 31,
			2021						2020						2021						2020
Net income attributable to Rockwell Automation			$	415.0					$	132.2					$	1,008.3					$	442.9
Less: Allocation to participating securities			(0.9)						—						(1.6)						(0.4)
Net income available to common shareowners			$	414.1					$	132.2					$	1,006.7					$	442.5
Basic weighted average outstanding shares			116.1						116.0						116.1						115.8
Effect of dilutive securities
Stock options			0.9						0.6						0.9						0.8
Performance shares			0.1						—						0.1						—
Diluted weighted average outstanding shares			117.1						116.6						117.1						116.6
Earnings per share:
Basic			$	3.57					$	1.14					$	8.67					$	3.82
Diluted			$	3.54					$	1.13					$	8.59					$	3.80

For each of the three and six months ended March 31, 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 each of the three and six months ended March 31, 2020, 2.3 million shares related to share-based compensation awards were excluded from the diluted EPS calculation because they were antidilutive.

Non-Cash Investing and Financing Activities

Capital expenditures of $15.5 million and $18.5 million were accrued within accounts payable and other current liabilities at March 31, 2021 and 2020, respectively. At March 31, 2021 and 2020, there were $2.8 million and $2.0 million, respectively, of outstanding common stock share repurchases recorded in accounts payable that did not settle until the next fiscal quarter. These non-cash investing and financing activities have been excluded from cash used for capital expenditures and treasury stock purchases in the Consolidated Statement of Cash Flows.

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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 segments (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 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.

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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.

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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 March 31, 2021, we expect to recognize approximately $580 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $335 million from our remaining performance obligations over the next 12 months with the remaining balance recognized thereafter.

We have applied the practical expedient to exclude the value of remaining performance obligations for (i) contracts with an original term of one year or less and (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. The amounts above also do not include the impact of contract renewal options that are unexercised as of March 31, 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 six months ended March 31, 2020, has been recast to reflect our new operating segments. See Note 15 for further information on our change in operating segments.

Copy History

			Three Months Ended March 31, 2021																								Six Months Ended March 31, 2021
			Intelligent Devices						Software & Control						Lifecycle Services						Total						Intelligent Devices						Software & Control						Lifecycle Services						Total
North America			$	538.9					$	309.2					$	217.6					$	1,065.7					$	988.2					$	575.6					$	414.2					$	1,978.0
Europe, Middle East and Africa (EMEA)			152.0						98.1						104.7						354.8						282.3						182.9						210.3						675.5
Asia Pacific			106.7						67.0						73.2