|
Three Months Ended
|
|
Nine Months Ended
|
Logix |
|
|
|
Logix reported growth |
(6)% |
|
(3)% |
Effect of currency translation |
3% |
|
3% |
Logix organic growth |
(3)% |
|
—% |
|
|
|
|
Process |
|
|
|
Process reported growth |
(1)% |
|
3% |
Effect of currency translation |
4% |
|
3% |
Process organic growth |
3% |
|
6% |
ROCKWELL AUTOMATION, INC.
OTHER SUPPLEMENTAL INFORMATION
(in millions, except per share amounts and percentages)
Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate
Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate are non-GAAP earnings measures that exclude non-operating pension and postretirement benefit (credit) cost, costs related to the unsolicited Emerson proposals in the first quarter of fiscal 2018, gains and losses on investments, and valuation adjustments related to the registration of PTC securities, including their respective tax effects, and the adjustments related to the Tax Act in fiscal 2018.
We believe that Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate provide useful information to our investors about our operating performance and allow management and investors to compare our operating performance period over period. Adjusted EPS is also used as a financial measure of performance for our annual incentive compensation. Our measures of Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate may be different from measures used by other companies. These non-GAAP measures should not be considered a substitute for net income, diluted EPS and effective tax rate.
We have adopted ASU 2017-07, which defines operating and non-operating pension and postretirement benefit cost. Under this new standard, only the service cost component of pension and postretirement benefit cost is an operating cost. All other components of pension and postretirement benefit cost are considered to be non-operating costs. These components of net periodic pension and postretirement benefit cost primarily relate to changes in pension assets and liabilities that are a result of market performance; we consider these and other excluded costs to be unrelated to the operating performance of our business.
The following are the components of operating and non-operating pension and postretirement benefit cost (in millions):
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Service cost |
$ |
19.8 |
|
|
$ |
22.6 |
|
|
$ |
59.4 |
|
|
$ |
67.8 |
|
Operating pension and postretirement benefit cost |
19.8 |
|
|
22.6 |
|
|
59.4 |
|
|
67.8 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
| Interest cost |
40.3 |
|
|
39.4 |
|
|
120.6 |
|
|
118.4 |
|
||||
| Expected return on plan assets |
(61.2 |
) |
|
(61.2 |
) |
|
(183.6 |
) |
|
(183.9 |
) |
||||
| Amortization of prior service credit |
(1.1 |
) |
|
(1.3 |
) |
|
(3.2 |
) |
|
(3.7 |
) |
||||
| Amortization of net actuarial loss |
19.6 |
|
|
28.7 |
|
|
59.0 |
|
|
86.3 |
|
||||
| Settlements |
(0.2 |
) |
|
— |
|
|
(0.6 |
) |
|
— |
|
||||
| Non-operating pension and postretirement benefit (credit) cost |
(2.6 |
) |
|
5.6 |
|
|
(7.8 |
) |
|
17.1 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
| Net periodic pension and postretirement benefit cost |
$ |
17.2 |
|
|
$ |
28.2 |
|
|
$ |
51.6 |
|
|
$ |
84.9 |
|
