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Basis of Presentation and Accounting Policies
 9 Months Ended
Jun. 30, 2011
Basis of Presentation and Accounting Policies [Abstract]  
Basis of Presentation and Accounting Policies
1. Basis of Presentation and Accounting Policies
In the opinion of management of Rockwell Automation, Inc. (the Company or Rockwell Automation), the unaudited Condensed 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, 2010. The results of operations for the three and nine month periods ended June 30, 2011 are not necessarily indicative of the results for the full year. All date references to years and quarters herein refer to our fiscal year and fiscal quarter unless otherwise stated.
Receivables
Receivables are stated net of allowances for doubtful accounts of $23.8 million at June 30, 2011 and $17.9 million at September 30, 2010. In addition, receivables are stated net of an allowance for certain customer returns, rebates and incentives of $8.6 million at June 30, 2011 and $16.4 million at September 30, 2010.
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  
    June 30,     June 30,  
    2011     2010     2011     2010  
Income from continuing operations
  $ 178.8     $ 119.4     $ 495.3     $ 309.1  
Less: Allocation to participating securities
    (0.3 )     (0.3 )     (1.0 )     (0.7 )
 
                       
Income from continuing operations available to common shareowners
  $ 178.5     $ 119.1     $ 494.3     $ 308.4  
 
                       
 
                               
Income from discontinued operations
  $ 0.7     $ —     $ 0.7     $ 23.9  
Less: Allocation to participating securities
    —       —       —       (0.1 )
 
                       
Income from discontinued operations available to common shareowners
  $ 0.7     $ —     $ 0.7     $ 23.8  
 
                       
 
                               
Net income
  $ 179.5     $ 119.4     $ 496.0     $ 333.0  
Less: Allocation to participating securities
    (0.3 )     (0.3 )     (1.0 )     (0.8 )
 
                       
Net income available to common shareowners
  $ 179.2     $ 119.1     $ 495.0     $ 332.2  
 
                       
 
                               
Basic weighted average outstanding shares
    143.4       142.0       142.8       142.1  
Effect of dilutive securities
                               
Stock options
    2.1       1.9       2.3       1.7  
Performance shares
    0.4       0.4       0.4       0.3  
 
                       
Diluted weighted average outstanding shares
    145.9       144.3       145.5       144.1  
 
                       
 
                               
Basic earnings per share:
                               
Continuing operations
  $ 1.24     $ 0.84     $ 3.46     $ 2.17  
Discontinued operations
    0.01       —       0.01       0.17  
 
                       
Net income
  $ 1.25     $ 0.84     $ 3.47     $ 2.34  
 
                       
 
                               
Diluted earnings per share:
                               
Continuing operations
  $ 1.22     $ 0.83     $ 3.40     $ 2.14  
Discontinued operations
    0.01       —       —       0.17  
 
                       
Net income
  $ 1.23     $ 0.83     $ 3.40     $ 2.31  
 
                       
For the three and nine months ended June 30, 2011, share-based compensation awards for 1.1 million and 1.9 million shares, respectively, were excluded from the diluted EPS calculation because they were antidilutive. For the three and nine months ended June 30, 2010, share-based compensation awards for 3.7 million and 5.0 million shares, respectively, were excluded from the diluted EPS calculation because they were antidilutive.
Recent Accounting Pronouncements
In June 2011, the Financial Accounting Standards Board (FASB) issued new accounting guidance related to the presentation of comprehensive income that eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. Under this guidance, an entity can elect to present items of net income and other comprehensive income in one continuous statement or two consecutive statements. This guidance is effective for us beginning October 1, 2012. We do not believe the adoption of this guidance will have a material effect on our consolidated financial statements and related disclosures.
In May 2011, the FASB issued updated accounting guidance related to fair value measurements and disclosures that result in common fair value measurements and disclosures between accounting principles generally accepted in the United States (U.S. GAAP) and International Financial Reporting Standards. This guidance includes amendments that clarify the application of existing fair value measurements and disclosures, in addition to other amendments that change principles or requirements for fair value measurements or disclosures. This guidance is effective for us beginning January 1, 2012. We do not believe the adoption of this guidance will have a material effect on our consolidated financial statements and related disclosures.