Supplemental Financial Data€¦ · Sales and Earnings Information by Segment (in millions, except...

Copyright © 2017 Rockwell Automation, Inc. All Rights Reserved.Rev 5058-CO900E

Supplemental Financial Data(As of March 31, 2017)

Rockwell Automation Global Headquarters

1201 South Second Street

Milwaukee, WI 53204

Investor Relations Contacts

Steve Etzel Aijana Zellner

Vice President, Investor Relations & Treasurer Manager, Investor Relations

Phone: 414.382.8510 Phone: 414-382-2003

Email: [email protected] Email: [email protected]

Website

www.rockwellautomation.com

Copyright © 2017 Rockwell Automation, Inc. All Rights Reserved.Rev 5058-CO900E

Table of Contents

Condensed Sales & Earnings Information

Sales and Earnings Information by Segment

Historic Sales Growth Rates

Quarterly Sales and Earnings Information by Segment

Quarterly Reconciliation of Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate

Sales by Geographic Region

Condensed Balance Sheet Information

Condensed Cash Flow Information

Return on Invested Capital

Other Supplemental Information

All information should be read in conjunction with the historical financial statements contained in Rockwell Automation’s Annual Report on Form 10-K, periodic reports on Form 10-Q and Form 8-K, and public announcements of financial information. Copies of these reports are available on our website at www.rockwellautomation.com or upon request from Rockwell Automation.

http://www.rockwellautomation.com/

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Sales 5,879.5$ 6,307.9$ 6,623.5$ 6,351.9$ 6,259.4$ 6,000.4$ 4,857.0$ 4,332.5$ 5,697.8$ 5,003.9$ 4,556.4$ Cost of sales (3,404.0) (3,604.8) (3,869.6) (3,778.1) (3,736.7) (3,610.0) (2,920.6) (2,763.0) (3,357.1) (2,906.6) (2,656.4) Gross profit 2,475.5 2,703.1 2,753.9 2,573.8 2,522.7 2,390.4 1,936.4 1,569.5 2,340.7 2,097.3 1,900.0

Selling, general and administrative expenses (1,467.4) (1,506.4) (1,570.1) (1,537.7) (1,491.7) (1,461.2) (1,323.3) (1,228.0) (1,482.1) (1,278.6) (1,141.0) Other income (expense) 6.3 (5.5) 9.7 5.7 (5.0) (2.1) (8.4) (6.7) 18.5 33.3 33.4 Interest expense (71.3) (63.7) (59.3) (60.9) (60.1) (59.5) (60.5) (60.9) (68.2) (63.4) (56.6)

Income from continuing operations before income taxes and accounting change 943.1 1,127.5 1,134.2 980.9 965.9 867.6 544.2 273.9 808.9 788.6 735.8

Income tax provision (213.4) (299.9) (307.4) (224.6) (228.9) (170.5) (103.8) (56.0) (231.3) (219.3) (206.5) Income from continuing operations before accounting change 729.7 827.6 826.8 756.3 737.0 697.1 440.4 217.9 577.6 569.3 529.3 Income from discontinued operations - - - - - 0.7 23.9 2.8 - 918.5 95.4 Cumulative effect of accounting change(1)

- - - - - - - - - - (17.7)

Net income 729.7$ 827.6$ 826.8$ 756.3$ 737.0$ 697.8$ 464.3$ 220.7$ 577.6$ 1,487.8$ 607.0$

Diluted earnings per share(2)

Continuing operations before accounting change $5.56 6.09$ 5.91$ 5.36$ 5.13$ 4.79$ 3.05$ 1.53$ 3.89$ 3.53$ 2.94$ Discontinued operations - - - - - 0.01 0.17 0.02 - 5.69 0.53 Cumulative effect of accounting change(1) - - - - - - - - - - (0.10)

Net income 5.56$ 6.09$ 5.91$ 5.36$ 5.13$ 4.80$ 3.22$ 1.55$ 3.89$ 9.22$ 3.37$

Adjusted EPS(3) 5.93$ 6.40$ 6.17$ 5.71$ 5.29$ 4.89$ 3.10$ 1.44$ 3.79$ n/a n/a

Average diluted shares for EPS calculation 131.1 135.7 139.7 140.9 143.4 145.2 144.0 142.4 148.1 161.1 179.8

(3) Adjusted EPS is a non-GAAP measure. See page 31 for the definition and reasons why management believes this information is useful to investors.

Condensed Sales and Earnings Information(in millions, except per share amounts)

(unaudited)

(2) Beginning in fiscal 2010, we changed our accounting for earnings per share as a result of the new guidance issued by FASB, which requires the calculation of EPS pursuant to the two-class method. This resulted in a reduction in earnings per share of $0.01 in certain periods. EPS prior to fiscal 2008 has not been restated.

(1) See page 34 for a discussion of the cumulative effect of accounting change.

Year Ended September 30,

1

2016 2015 2014 2013 2012 2011 2010 2009 2008

Sales Architecture & Software 2,635.2$ 2,749.5$ 2,845.3$ 2,682.0$ 2,650.4$ 2,594.3$ 2,115.0$ 1,723.5$ 2,419.7$ Control Products & Solutions 3,244.3 3,558.4 3,778.2 3,669.9 3,609.0 3,406.1 2,742.0 2,609.0 3,278.1 Total sales 5,879.5$ 6,307.9$ 6,623.5$ 6,351.9$ 6,259.4$ 6,000.4$ 4,857.0$ 4,332.5$ 5,697.8$

Segment operating earnings Architecture & Software 695.0$ 808.6$ 839.6$ 759.4$ 714.4$ 670.4$ 478.8$ 218.4$ 577.5$ Control Products & Solutions 493.7 551.9 512.4 477.4 449.5 378.4 248.0 196.4 429.6 Total segment operating earnings (1),(2),(3) 1,188.7 1,360.5 1,352.0 1,236.8 1,163.9 1,048.8 726.8 414.8 1,007.1

Purchase accounting depreciation and amortization (18.4) (21.0) (21.6) (19.3) (19.8) (19.8) (18.9) (18.6) (24.2) General corporate - net (79.7) (85.6) (81.0) (97.2) (82.9) (78.4) (93.1) (85.0) (84.0) Non-operating pension costs (4) (76.2) (62.7) (55.9) (78.5) (35.2) (23.5) (10.1) 19.6 24.9 Interest expense (71.3) (63.7) (59.3) (60.9) (60.1) (59.5) (60.5) (60.9) (68.2) Special items - - - - - - - 4.0 (46.7)

Income from continuing operations before income taxes 943.1 1,127.5 1,134.2 980.9 965.9 867.6 544.2 273.9 808.9 Income tax provision (213.4) (299.9) (307.4) (224.6) (228.9) (170.5) (103.8) (56.0) (231.3)

Income from continuing operations 729.7 827.6 826.8 756.3 737.0 697.1 440.4 217.9 577.6 Income from discontinued operations - - - - - 0.7 23.9 2.8 - Net income 729.7$ 827.6$ 826.8$ 756.3$ 737.0$ 697.8$ 464.3$ 220.7$ 577.6$

Segment operating margin Architecture & Software 26.4 % 29.4 % 29.5 % 28.3 % 27.0 % 25.8 % 22.6 % 12.7 % 23.9 % Control Products & Solutions 15.2 % 15.5 % 13.6 % 13.0 % 12.5 % 11.1 % 9.0 % 7.5 % 13.1 %

Total segment operating margin (1) 20.2 % 21.6 % 20.4 % 19.5 % 18.6 % 17.5 % 15.0 % 9.6 % 17.7 %

(4) See page 33 for a reconciliation of the components of operating and non-operating pension costs by fiscal year.

(2) Segment operating earnings in 2009 includes restructuring charges of $60.4 million related to actions to better align our cost structure with current economic conditions.

Sales and Earnings Information by Segment (in millions, except percentages)

(unaudited)

(3) Beginning in fiscal 2013, we redefined segment operating earnings to exclude non-operating pension costs. Non-operating pension costs were reclassified to a separate line item within the above table for all periods presented. These costs were previously included in the operating earnings of each segment and in general corporate-net. Non-operating pension costs consist of defined benefit plan interest cost, expected return on plan assets, amortization of actuarial gains and losses and the impacts of any plan curtailments or settlements. These components of net periodic benefit cost primarily relate to changes in pension assets and liabilities that are a result of market performance; we consider these costs to be unrelated to the operating performance of our business. We continue to include service cost and amortization of prior service cost in the business segment that incurred the expense as these components of net periodic benefit cost represent the operating cost of providing pension benefits to our employees.

(1) Total segment operating earnings and total segment operating margin are non-GAAP financial measures. We exclude purchase accounting depreciation and amortization, general corporate – net, non-operating pension costs, interest expense and income tax provision because we do not consider these costs to be directly related to the operating performance of our segments. We believe that these measures are useful to investors as measures of operating performance. We use these measures to monitor and evaluate the profitability of our Company. Our measures of total segment operating earnings and total segment operating margin may be different from those used by other companies.


2

Consolidated:

Qtr 1 Qtr 2 YTD Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4

Organic sales growth(1) 3.8% 6.8% 5.3% -3.3% -3.6% -4.8% -4.0% 2.1% 2.7% 2.2% -2.3% 7% 7% 2% 4.4% 2% -2% 4% 3%Foreign currency impact -1.1% -0.6% -0.9% -6.1% -3.5% -1.8% -0.7% -3.4% -6.0% -6.8% -7.6% 0% -2% 0% -0.7% -1% 0% 0% 0%Acquisition impact 1.8% 1.7% 1.8% 0.0% 0.0% 0.2% 0.4% 0.2% 0.2% 0.1% 0.1% 0% 0% 0% 0.2% 0% 0% 0% 0%GAAP sales growth 4.5% 7.9% 6.2% -9.4% -7.1% -6.4% -4.3% -1.1% -3.1% -4.5% -9.8% 7% 5% 2% 3.9% 1% -2% 4% 3%

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Organic sales growth(1) -3.9% 1.1% 5.1% 2% 6% 20% 10% -19% 6% 6%Foreign currency impact -3.0% -6.0% -1.0% -1% -3% 3% 2% -5% 5% 3%Acquisition impact 0.1% 0.1% 0.2% 0% 1% 1% 0% 0% 3% 1%GAAP sales growth -6.8% -4.8% 4.3% 1% 4% 24% 12% -24% 14% 10%

Architecture & Software Segment:


Organic sales growth(1) 7.6% 13.7% 10.6% -2.7% -3.3% -1.3% 1.4% 5.1% 4.8% 3.1% -0.4% 6% 9% 7% 5.2% 2% -3% 1% 6%Foreign currency impact -1.0% -0.7% -0.9% -6.5% -3.3% -1.6% -0.6% -3.6% -6.7% -7.5% -8.1% 0% -2% 0% -0.7% -1% -1% 0% 0%Acquisition impact 1.7% 1.2% 1.5% 0.0% 0.0% 0.4% 1.0% 0.2% 0.1% 0.0% 0.0% 0% 0% 0% 0.1% 0% 0% 0% 0%GAAP sales growth 8.3% 14.2% 11.2% -9.2% -6.6% -2.5% 1.8% 1.7% -1.8% -4.4% -8.5% 6% 7% 7% 4.6% 1% -4% 1% 6%

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Organic sales growth(1) -1.5% 3.1% 6.8% 2% 5% 20% 20% -24% 3% 5%Foreign currency impact -3.0% -6.6% -0.7% -1% -3% 3% 3% -5% 5% 3%Acquisition impact 0.3% 0.1% 0.0% 0% 0% 0% 0% 0% 1% 0%GAAP sales growth -4.2% -3.4% 6.1% 1% 2% 23% 23% -29% 9% 8%

Control Products & Solutions Segment:


Organic sales growth(1) 0.7% 1.4% 1.1% -3.8% -3.9% -7.5% -8.0% -0.3% 1.2% 1.6% -3.6% 9% 5% -2% 3.8% 1% -1% 6% 1%Foreign currency impact -1.3% -0.4% -0.8% -5.8% -3.6% -1.9% -0.8% -3.2% -5.5% -6.3% -7.2% -1% -2% 0% -0.8% 0% 0% 0% 0%Acquisition impact 1.9% 2.0% 1.9% 0.0% 0.0% 0.0% 0.0% 0.2% 0.2% 0.1% 0.1% 0% 0% 0% 0.3% 0% 0% 0% 0%GAAP sales growth 1.3% 3.0% 2.2% -9.6% -7.5% -9.4% -8.8% -3.3% -4.1% -4.6% -10.7% 8% 3% -2% 3.3% 1% -1% 6% 1%

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Organic sales growth(1) -5.8% -0.4% 3.8% 2% 8% 20% 2% -15% 9% 7%Foreign currency impact -3.0% -5.6% -1.1% 0% -3% 3% 2% -5% 5% 2%Acquisition impact 0.0% 0.2% 0.3% 0% 1% 1% 1% 0% 4% 2%GAAP sales growth -8.8% -5.8% 3.0% 2% 6% 24% 5% -20% 18% 11%

(1) We define organic sales as sales excluding the effect of changes in currency exchange rates and acquisitions. We believe this non-GAAP measure provides useful information to investors because it reflects regional and operating segment performance from our activities without the effect of changes in currency exchange rates and/or acquisitions. We use organic sales as one measure to monitor and evaluate our regional and operating segment performance. We determine the effect of changes in currency exchange rates by translating the respective period’s sales using the currency exchange rates that were in effect during the prior year. When we acquire businesses, we exclude sales in the current year for which there are no comparable sales in the prior period. Organic sales growth is calculated by comparing organic sales to reported sales in the prior year. Sales are attributed to the geographic regions based on the country of destination.

Fiscal Year 2015

Fiscal Year 2015

Fiscal Year 2015

Fiscal Year 2017

Fiscal Year 2017

Fiscal Year 2017

Historic Sales Growth Rates(unaudited)

Fiscal Year 2013

Fiscal Year 2013

Fiscal Year 2013

Fiscal Year 2014

Fiscal Year 2014

Fiscal Year 2014

Fiscal Year 2016

Fiscal Year 2016

Fiscal Year 2016

3

Qtr 1 Qtr 2 YTDSales Architecture & Software 696.4$ 719.0$ 1,415.4$ Control Products & Solutions 793.9 835.3 1,629.2 Total sales 1,490.3$ 1,554.3$ 3,044.6$

Segment operating earnings Architecture & Software 208.6$ 190.6$ 399.2$ Control Products & Solutions 108.0 105.4 213.4 Total segment operating earnings(2) 316.6 296.0 612.6

Purchase accounting depreciation and amortization (5.6) (5.6) (11.2) General corporate - net (14.9) (21.4) (36.3) Non-operating pension costs (19.8) (19.8) (39.6) Interest expense (18.7) (18.9) (37.6)

Income before income taxes 257.6 230.3 487.9 Income tax provision (42.9) (40.8) (83.7)

Net income 214.7$ 189.5$ 404.2$

Diluted EPS 1.65$ 1.45$ 3.11$

Adjusted EPS(1) 1.75$ 1.55$ 3.30$

Note: The sum of the quarterly per share amounts will not necessarily equal the annual per share amounts presented.

Segment operating margin Architecture & Software 30.0 % 26.5 % 28.2 Control Products & Solutions 13.6 % 12.6 % 13.1

Total segment operating margin(2) 21.2 % 19.0 % 20.1

Quarterly Sales and Earnings Information by Segment(in millions, except per share amounts and percentages)

(unaudited)

(1) Adjusted EPS is a non-GAAP measure. See page 31 for the definition and reasons why management believes this information is useful to investors.(2) Total segment operating earnings and total segment operating margin are non-GAAP measures. See page 2 for the definition and reasons why management believes this information is useful to investors.

Fiscal Year 2017

4

Qtr 1 Qtr 2 YTD

Income from continuing operations 214.7$ 189.5$ 404.2$ Non-operating pension costs 19.8 19.8 39.6 Tax effect of non-operating pension costs (7.2) (7.3) (14.5)

Adjusted Income 227.3$ 202.0$ 429.3$

Diluted EPS from continuing operations $1.65 $1.45 $3.11Non-operating pension costs per diluted share 0.15 0.15 0.30 Tax effect of non-operating pension costs per diluted share (0.05) (0.05) (0.11)

Adjusted EPS 1.75$ 1.55$ 3.30$

Effective tax rate 16.7% 17.7% 17.2%Tax effect of non-operating pension costs 1.4% 1.5% 1.4%

Adjusted Effective Tax Rate 18.1% 19.2% 18.6%

Note: Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate are non-GAAP measures. See page 31 for the definitions and reasons why management believes this information is useful to investors.

(in millions, except per share amounts and percentages)(unaudited)

Quarterly Reconciliation of Adjusted Income, Adjusted EPSand Adjusted Effective Tax Rate

Fiscal Year 2017

5

Qtr 1 Qtr 2 Qtr 3 Qtr 4 FY2016Sales Architecture & Software 642.9$ 629.5$ 666.4$ 696.4$ 2,635.2$ Control Products & Solutions 783.7 810.8 807.6 842.2 3,244.3 Total sales 1,426.6$ 1,440.3$ 1,474.0$ 1,538.6$ 5,879.5$

Segment operating earnings Architecture & Software 176.2$ 154.6$ 184.2$ 180.0$ 695.0$ Control Products & Solutions 119.7 122.9 126.8 124.3 493.7 Total segment operating earnings (2) 295.9 277.5 311.0 304.3 1,188.7

Purchase accounting depreciation and amortization (4.7) (4.5) (4.7) (4.5) (18.4) General corporate - net (18.0) (19.5) (17.0) (25.2) (79.7) Non-operating pension costs (18.9) (18.9) (18.9) (19.5) (76.2) Interest expense (17.4) (17.6) (18.1) (18.2) (71.3)

Income before income taxes 236.9 217.0 252.3 236.9 943.1 Income tax provision (51.4) (49.0) (61.3) (51.7) (213.4)

Net income 185.5$ 168.0$ 191.0$ 185.2$ 729.7$

Diluted EPS 1.40$ 1.28$ 1.46$ 1.43$ 5.56$

Adjusted EPS(1) 1.49$ 1.37$ 1.55$ 1.52$ 5.93$


Segment operating margin Architecture & Software 27.4 % 24.6 % 27.6 % 25.8 % 26.4 % Control Products & Solutions 15.3 % 15.2 % 15.7 % 14.8 % 15.2 %

Total segment operating margin (2) 20.7 % 19.3 % 21.1 % 19.8 % 20.2 %



(unaudited)

(2) Total segment operating earnings and total segment operating margin are non-GAAP measures. See page 2 for the definition and reasons why management believes this information is useful to investors.

Fiscal Year 2016

6

Qtr 1 Qtr 2 Qtr 3 Qtr 4 FY2016

Income from continuing operations 185.5$ 168.0$ 191.0$ 185.2$ 729.7$ Non-operating pension costs 18.9 18.9 18.9 19.5 76.2 Tax effect of non-operating pension costs (6.8) (6.9) (6.8) (7.0) (27.5)

Adjusted Income 197.6$ 180.0$ 203.1$ 197.7$ 778.4$

Diluted EPS from continuing operations 1.40$ 1.28$ 1.46$ $1.43 $5.56Non-operating pension costs per diluted share 0.14 0.14 0.14 0.15 0.58 Tax effect of non-operating pension costs per diluted share (0.05) (0.05) (0.05) (0.06) (0.21)

Adjusted EPS 1.49$ 1.37$ 1.55$ $1.52 $5.93

Effective tax rate 21.7% 22.6% 24.3% 21.8% 22.6%Tax effect of non-operating pension costs 1.1% 1.1% 0.8% 1.1% 1.0%

Adjusted Effective Tax Rate 22.8% 23.7% 25.1% 22.9% 23.6%




Fiscal Year 2016

7


Segment operating earnings Architecture & Software 221.4$ 200.8$ 199.9$ 186.5$ 808.6$ Control Products & Solutions 125.4 133.4 143.8 149.3 551.9

Total segment operating earnings (2) 346.8 334.2 343.7 335.8 1,360.5


Income before income taxes 287.5 276.5 284.6 278.9 1,127.5 Income tax provision (73.3) (70.5) (78.5) (77.6) (299.9)

Net income 214.2$ 206.0$ 206.1$ 201.3$ 827.6$

Diluted EPS 1.56$ 1.51$ 1.52$ 1.50$ 6.09$

Adjusted EPS(1) 1.64$ 1.59$ 1.59$ 1.57$ 6.40$







Fiscal Year 2015


8



Adjusted Income 224.8$ 216.0$ 216.3$ 211.3$ 868.4$

Diluted EPS from continuing operations 1.56$ 1.51$ 1.52$ 1.50$ 6.09$ Non-operating pension costs per diluted share 0.12 0.12 0.11 0.11 0.46 Tax effect of non-operating pension costs per diluted share (0.04) (0.04) (0.04) (0.04) (0.15)

Adjusted EPS 1.64$ 1.59$ 1.59$ 1.57$ 6.40$






Fiscal Year 2015

9

Qtr 1 Qtr 2 Qtr 3 Qtr 4 FY2014Sales Architecture & Software 695.9$ 686.8$ 715.2$ 747.4$ 2,845.3$ Control Products & Solutions 895.8 913.7 934.3 1,034.4 3,778.2 Total sales 1,591.7$ 1,600.5$ 1,649.5$ 1,781.8$ 6,623.5$




Income before income taxes 272.8 248.4 274.0 339.0 1,134.2 Income tax provision (74.7) (68.1) (74.3) (90.3) (307.4)

Net income 198.1$ 180.3$ 199.7$ 248.7$ 826.8$

Diluted EPS 1.41$ 1.28$ 1.43$ 1.79$ 5.91$

Adjusted EPS(1) 1.47$ 1.35$ 1.49$ 1.86$ 6.17$





Fiscal Year 2014


(unaudited)


10



Adjusted Income 207.1$ 189.3$ 208.7$ 257.6$ 862.7$


Adjusted EPS 1.47$ 1.35$ 1.49$ 1.86$ 6.17$



Quarterly Reconciliation of Adjusted Income, Adjusted EPS


and Adjusted Effective Tax Rate (in millions, except per share amounts and percentages)

(unaudited)

Fiscal Year 2014

11

Qtr 1 Qtr 2 Qtr 3 Qtr 4 FY2013Sales Architecture & Software 657.5$ 639.2$ 671.0$ 714.3$ 2,682.0$ Control Products & Solutions 831.7 883.6 953.2 1,001.4 3,669.9 Total sales 1,489.2$ 1,522.8$ 1,624.2$ 1,715.7$ 6,351.9$


Total segment operating earnings (1),(2) 276.0 285.2 317.8 357.8 1,236.8



Net income 161.4$ 175.9$ 203.7$ 215.3$ 756.3$

Diluted EPS 1.14$ 1.24$ 1.45$ 1.53$ 5.36$

Adjusted EPS(1) 1.23$ 1.33$ 1.54$ 1.62$ 5.71$





Fiscal Year 2013


(unaudited)


12



Adjusted Income 173.9$ 188.5$ 216.1$ 227.8$ 806.3$


Adjusted EPS 1.23$ 1.33$ 1.54$ 1.62$ 5.71$

Efffective tax rate 25.7% 22.5% 20.9% 22.9% 22.9%Tax effect of non-operating pension costs 0.9% 1.1% 1.1% 0.8% 1.0%



Fiscal Year 2013



13






Net income 183.3$ 167.8$ 190.7$ 195.2$ 737.0$

Diluted EPS 1.27$ 1.16$ 1.33$ 1.38$ 5.13$

Adjusted EPS(1) 1.31$ 1.20$ 1.37$ 1.42$ 5.29$





Fiscal Year 2012


(unaudited)


14



Adjusted Income 189.0$ 173.4$ 196.4$ 200.8$ 759.6$


Adjusted EPS 1.31$ 1.20$ 1.37$ 1.42$ 5.29$

Efffective tax rate 24.5% 24.9% 22.1% 23.4% 23.7%Tax effect of non-operating pension costs 0.4% 0.4% 0.5% 0.5% 0.4%



Fiscal Year 2012



15






Income from continuing operations 150.1 166.4 178.8 201.8 697.1 Income from discontinued operations - - 0.7 - 0.7 Net income 150.1$ 166.4$ 179.5$ 201.8$ 697.8$

Diluted earnings per share Continuing operations 1.04$ 1.14$ 1.22$ 1.39$ 4.79$ Discontinued operations - - 0.01 - 0.01

Net income 1.04$ 1.14$ 1.23$ 1.39$ 4.80$

Adjusted EPS(1) 1.06$ 1.16$ 1.25$ 1.42$ 4.89$





Fiscal Year 2011


(unaudited)


16



Adjusted Income 153.9$ 170.1$ 182.5$ 205.6$ 712.1$


Adjusted EPS 1.06$ 1.16$ 1.25$ 1.42$ 4.89$

Note: Adjusted Income and Adjusted EPS are non-GAAP measures. See page 31 for the definitions and reasons why management believes this information is useful to investors.

Quarterly Reconciliation of Adjusted Incomeand Adjusted EPS

(in millions, except per share amounts)(unaudited)

Fiscal Year 2011

17



Total segment operating earnings (2) 139.2 179.7 200.4 207.5 726.8



Income from continuing operations 77.8 111.9 119.4 131.3 440.4 (Loss) income from discontinued operations (1.2) 25.1 - - 23.9 Net income 76.6$ 137.0$ 119.4$ 131.3$ 464.3$

Diluted earnings per share Continuing operations 0.54$ 0.77$ 0.83$ 0.91$ 3.05$ Discontinued operations (0.01) 0.18 - - 0.17

Net income 0.53$ 0.95$ 0.83$ 0.91$ 3.22$

Adjusted EPS(1) 0.55$ 0.79$ 0.84$ 0.92$ 3.10$





Fiscal Year 2010


(unaudited)


18



Adjusted Income 79.4$ 113.6$ 121.0$ 132.9$ 446.9$


Adjusted EPS 0.55$ 0.79$ 0.84$ 0.92$ 3.10$




Fiscal Year 2010

19


Segment operating earnings Architecture & Software 108.4$ 32.1$ 42.1$ 35.8$ 218.4$ Control Products & Solutions 65.4 50.4 40.5 40.1 196.4 Total segment operating earnings (1),(3) 173.8 82.5 82.6 75.9 414.8

Purchase accounting depreciation and amortization (5.0) (4.8) (4.4) (4.4) (18.6) General corporate - net (19.3) (15.8) (17.5) (32.4) (85.0) Non-operating pension costs 5.0 4.8 4.9 4.9 19.6 Interest expense (15.0) (15.3) (15.4) (15.2) (60.9) Special items - 4.0 - - 4.0

Income before income taxes 139.5 55.4 50.2 28.8 273.9 Income tax provision (23.9) (14.8) (17.4) 0.1 (56.0)

Income from continuing operations 115.6 40.6 32.8 28.9 217.9 Income from discontinued operations 2.8 - - - 2.8 Net income 118.4$ 40.6$ 32.8$ 28.9$ 220.7$

Diluted earnings per share Continuing operations 0.81$ 0.29$ 0.23$ 0.20$ 1.53$ Discontinued operations 0.02 - - - 0.02

Net income 0.83$ 0.29$ 0.23$ 0.20$ 1.55$

Adjusted EPS(2) 0.79$ 0.26$ 0.21$ 0.18$ 1.44$






(unaudited)

Fiscal Year 2009

(1) Segment operating earnings includes restructuring charges of $20.2 million in the second quarter, $7.1 million in the third quarter and $33.1 million in the fourth quarter related to actions to better align our cost structure with current economic conditions.

20


Income from continuing operations 115.6$ 40.6$ 32.8$ 28.9$ 217.9$ Non-operating pension costs (5.0) (4.8) (4.9) (4.9) (19.6) Tax effect of non-operating pension costs 1.8 1.9 1.8 1.8 7.3

Adjusted Income 112.4$ 37.7$ 29.7$ 25.8$ 205.6$

Diluted EPS from continuing operations 0.81$ 0.29$ 0.23$ 0.20$ 1.53$ Non-operating pension costs per diluted share (0.03) (0.04) (0.03) (0.03) (0.14) Tax effect of non-operating pension costs per diluted share 0.01 0.01 0.01 0.01 0.05

Adjusted EPS 0.79$ 0.26$ 0.21$ 0.18$ 1.44$


Fiscal Year 2009



21


Segment operating earnings Architecture & Software 146.7$ 138.1$ 152.9$ 139.8$ 577.5$ Control Products & Solutions 106.3 97.6 100.9 124.8 429.6 Total segment operating earnings (1),(3) 253.0 235.7 253.8 264.6 1,007.1

Purchase accounting depreciation and amortization (6.3) (6.5) (6.3) (5.1) (24.2) General corporate - net (15.9) (18.3) (23.6) (26.2) (84.0) Non-operating pension costs 6.2 6.3 6.2 6.2 24.9 Special charges(1) - - - (46.7) (46.7) Interest expense (18.0) (17.5) (16.6) (16.1) (68.2)


Net income 156.6$ 142.8$ 152.6$ 125.6$ 577.6$

Diluted EPS 1.03$ 0.96$ 1.03$ 0.87$ 3.89$

Adjusted EPS(2) 1.00$ 0.93$ 1.00$ 0.84$ 3.79$





Fiscal Year 2008

(1) Amount in 2008 represents net costs primarily related to restructuring actions designed to better align resources with growth opportunities and to reduce costs as a result of current and anticipated market conditions.


(unaudited)

22


Income from continuing operations 156.6$ 142.8$ 152.6$ 125.6$ 577.6$ Non-operating pension costs (6.2) (6.3) (6.2) (6.2) (24.9) Tax effect of non-operating pension costs 2.4 2.5 2.4 2.5 9.8

Adjusted Income 152.8$ 139.0$ 148.8$ 121.9$ 562.5$

Diluted EPS from continuing operations 1.03$ 0.96$ 1.03$ 0.87$ 3.89$ Non-operating pension costs per diluted share (0.04) (0.04) (0.04) (0.04) (0.17) Tax effect of non-operating pension costs per diluted share 0.01 0.01 0.01 0.01 0.07

Adjusted EPS 1.00$ 0.93$ 1.00$ 0.84$ 3.79$


Fiscal Year 2008



23

2007 2006

Sales Architecture & Software 2,221.3$ 2,059.2$ Control Products & Solutions 2,782.6 2,497.2 Total sales 5,003.9$ 4,556.4$

Segment operating earnings Architecture & Software 587.7$ 533.9$ Control Products & Solutions 397.0 339.9 Total segment operating earnings (1),(5) 984.7 873.8

Purchase accounting depreciation and amortization (16.4) (10.6) General corporate - net (72.8) (90.7) Interest expense (63.4) (56.6) Special items(2) (43.5) - Gain on sale of investment (3) - 19.9

Income from continuing operations before income taxes and accounting change 788.6 735.8 Income tax provision (219.3) (206.5)

Income from continuing operations before cumulative effect of accounting change 569.3 529.3 Income from discontinued operations 918.5 95.4 Cumulative effect of accounting change (4) - (17.7) Net income 1,487.8$ 607.0$

Segment operating margin Architecture & Software 26.5 % 25.9 % Control Products & Solutions 14.3 % 13.6 %

Total segment operating margin (5) 19.7 % 19.2 %

(3) Amount in 2006 represents a gain resulting from the sale of an ownership interest in Rockwell Scientific Company LLC.

(4) See page 34 for a discussion of the cumulative effect of accounting change.(5) Total segment operating earnings and total segment operating margin are non-GAAP measures. See page 2 for the definition and reasons why management believes this information is useful to investors.

(2) Amount in 2007 represents costs related to various restructuring activities designed to execute on our cost productivity initiatives and to advance our globalization strategy.

(1) Segment operating earnings in 2006 - 2007 have not been restated to conform to the new methodology that excludes non-operating pension costs from segment operating earnings that was implemented in 2013.

Sales and Earnings Information by Segment (in millions, except percentages)

(unaudited)

24

Continuing Operations: Qtr 1 Qtr 2 Qtr 3 Qtr 4 FY2007Sales Architecture & Software 529.0$ 540.3$ 582.5$ 569.5$ 2,221.3$ Control Products & Solutions 617.3 666.2 698.1 801.0 2,782.6 Total sales 1,146.3$ 1,206.5$ 1,280.6$ 1,370.5$ 5,003.9$

Operating earnings Architecture & Software 147.3$ 130.4$ 164.7$ 145.3$ 587.7$ Control Products & Solutions 79.7 89.8 97.6 129.9 397.0 Total segment operating earnings (2) 227.0 220.2 262.3 275.2 984.7

Purchase accounting depreciation and amortization (2.7) (3.0) (3.8) (6.9) (16.4) General corporate - net (19.0) (14.0) (17.6) (22.2) (72.8) Special charges(1) - (43.5) - - (43.5) Interest expense (18.4) (16.3) (13.8) (14.9) (63.4)

Income from continuing operations before income taxes 186.9 143.4 227.1 231.2 788.6 Income tax provision (56.0) (36.3) (59.6) (67.4) (219.3)

Income from continuing operations 130.9 107.1 167.5 163.8 569.3 Income (loss) from discontinued operations 298.2 622.2 (3.3) 1.4 918.5 Net income 429.1$ 729.3$ 164.2$ 165.2$ 1,487.8$

Diluted earnings per share Continuing operations 0.76$ 0.65$ 1.07$ 1.07$ 3.53$ Discontinued operations 1.74 3.80 (0.02) 0.01 5.69 Net income 2.50$ 4.45$ 1.05$ 1.08$ 9.22$





Fiscal Year 2007

(unaudited)(in millions, except per share amounts and percentages)


(1) Amount in 2007 represents costs related to various restructuring activities designed to execute on our cost productivity initiatives and to advance our globalization strategy.

25

Continuing Operations: Qtr 1 Qtr 2 Qtr 3 Qtr 4 FY2006Sales Architecture & Software 497.3$ 509.9$ 525.4$ 526.6$ 2,059.2$ Control Products & Solutions 572.4 611.1 646.3 667.4 2,497.2 Total sales 1,069.7$ 1,121.0$ 1,171.7$ 1,194.0$ 4,556.4$

Operating earnings Architecture & Software 144.7$ 128.9$ 133.6$ 126.7$ 533.9$ Control Products & Solutions 67.1 89.1 82.5 101.2 339.9 Total segment operating earnings (3) 211.8 218.0 216.1 227.9 873.8

Purchase accounting depreciation and amortization (2.3) (3.5) (3.0) (1.8) (10.6) General corporate - net (22.0) (24.3) (21.2) (23.2) (90.7) Interest expense (13.1) (14.0) (13.8) (15.7) (56.6) Gain on sale of investment (1) - - - 19.9 19.9

Income from continuing operations before income taxes and accounting change 174.4 176.2 178.1 207.1 735.8 Income tax provision (50.5) (51.0) (54.7) (50.3) (206.5)

Income from continuing operations before accounting change 123.9 125.2 123.4 156.8 529.3 Income from discontinued operations 21.8 21.3 25.6 26.7 95.4

Cumulative effect of accounting change (2) - - - (17.7) (17.7) Net income 145.7$ 146.5$ 149.0$ 165.8$ 607.0$

Diluted earnings per share Continuing operations before accounting change 0.68$ 0.69$ 0.69$ 0.89$ 2.94$ Discontinued operations 0.12 0.12 0.14 0.15 0.53 Cumulative effect of accounting change - - - (0.10) (0.10) Net income 0.80$ 0.81$ 0.83$ 0.94$ 3.37$




(1) Represents a gain resulting from the sale of an ownership interest in Rockwell Scientific Company LLC.(2) See page 34 for a discussion of the cumulative effect of accounting change.

Fiscal Year 2006

Quarterly Sales and Earnings Information by Segment(in millions, except per share amounts)

(unaudited)


26

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

United States 3,213.4$ 3,446.8$ 3,414.6$ 3,202.9$ 3,067.3$ 2,917.8$ 2,456.2$ 2,209.2$ 2,850.8$ 2,687.0$ 2,599.0$ Non-United States Canada 316.4 366.6 437.0 468.7 464.3 396.2 321.0 257.1 396.4 341.1 332.1 Europe, Middle East, Africa 1,147.2 1,174.0 1,351.8 1,284.9 1,280.6 1,267.6 987.3 962.1 1,319.0 1,054.2 832.6 Asia-Pacific 764.4 834.5 884.0 851.9 942.4 910.6 724.3 579.3 717.2 588.8 521.4 Latin America 438.1 486.0 536.1 543.5 504.8 508.2 368.2 324.8 414.4 332.8 271.3 Total Non-United States 2,666.1 2,861.1 3,208.9 3,149.0 3,192.1 3,082.6 2,400.8 2,123.3 2,847.0 2,316.9 1,957.4

Total 5,879.5$ 6,307.9$ 6,623.5$ 6,351.9$ 6,259.4$ 6,000.4$ 4,857.0$ 4,332.5$ 5,697.8$ 5,003.9$ 4,556.4$

United States 55 % 55 % 52 % 50 % 49 % 49 % 51 % 51 % 50 % 54 % 57 % Non-United States Canada 5 6 7 7 7 7 7 6 7 7 7 Europe, Middle East, Africa 20 18 20 20 21 21 20 22 23 21 18 Asia-Pacific 13 13 13 14 15 15 15 13 13 12 12 Latin America 7 8 8 9 8 8 7 8 7 6 6 Total Non-United States 45 45 48 50 51 51 49 49 50 46 43

Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 %

(a) Sales are attributed to the geographic regions based on the country of destination.

(unaudited)(in millions, except percentages)

Sales By Geographic Region(a)


27

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Assets Current assets Cash and cash equivalents 1,526.4$ 1,427.3$ 1,191.3$ 1,200.9$ 903.9$ 988.9$ 813.4$ 643.8$ 582.2$ 624.2$ 408.1$ Short-term Investments 902.8 721.9 628.5 372.7 350.0 - - - Receivables 1,079.0 1,041.0 1,215.8 1,186.1 1,187.3 1,063.4 859.0 726.3 959.9 927.7 743.6 Inventories 526.6 535.6 588.4 615.4 619.0 641.7 603.3 436.4 575.5 504.7 411.5 Other current assets (3) 150.2 171.0 310.2 304.8 327.3 381.1 310.9 328.3 319.0 325.4 273.4 Assets available for sale (1) - - - - - - - - - - 351.4 Total current assets 4,185.0 3,896.8 3,934.2 3,679.9 3,387.5 3,075.1 2,586.6 2,134.8 2,436.6 2,382.0 2,188.0

Property, net 578.3 605.6 632.9 616.0 587.1 561.4 536.9 532.5 553.8 510.3 468.5 Goodwill and intangibles 1,329.2 1,258.3 1,296.8 1,235.8 1,158.3 1,170.6 1,129.8 1,144.1 1,165.8 1,101.9 819.9 Other assets(1)(3) 1,008.7 644.0 360.4 312.9 503.6 477.8 495.0 494.3 437.4 551.6 706.8 Assets available for sale (2) - - - - - - - - - - 552.2 Total assets 7,101.2$ 6,404.7$ 6,224.3$ 5,844.6$ 5,636.5$ 5,284.9$ 4,748.3$ 4,305.7$ 4,593.6$ 4,545.8$ 4,735.4$

Liabilities and equity Current liabilities Short-term debt 448.6$ -$ 325.0$ 179.0$ 157.0$ -$ -$ -$ 100.1$ 173.2$ 219.0$ Current portion of long-term debt - - - - - - - - - 348.2 - Accounts payable 543.1 521.7 520.6 546.7 547.6 455.1 435.7 313.3 437.3 498.5 395.7 Other current liabilities 984.2 806.0 846.5 819.0 827.0 874.8 786.6 633.9 765.7 724.6 567.1 Liabilities associated with assets available for sale (2) - - - - - - - - - - 111.5 Total current liabilities 1,975.9 1,327.7 1,692.1 1,544.7 1,531.6 1,329.9 1,222.3 947.2 1,303.1 1,744.5 1,293.3

Long-term debt(1) 1,516.3 1,500.9 900.4 905.1 905.0 905.0 904.9 904.7 904.4 405.7 748.2 Other liabilities 1,618.9 1,319.3 973.7 809.3 1,348.2 1,302.0 1,160.7 1,137.4 697.3 652.8 634.2 Liabilities associated with assets available for sale (2) - - - - - - - - - - 141.5 Shareowners' equity 1,990.1 2,256.8 2,658.1 2,585.5 1,851.7 1,748.0 1,460.4 1,316.4 1,688.8 1,742.8 1,918.2

Total liabilities and equity 7,101.2$ 6,404.7$ 6,224.3$ 5,844.6$ 5,636.5$ 5,284.9$ 4,748.3$ 4,305.7$ 4,593.6$ 4,545.8$ 4,735.4$

Ratios Debt-to-total capital 49.7% 39.9% 31.6% 29.5% 36.4% 34.1% 38.3% 40.7% 37.3% 34.7% 33.5% Debt to equity 98.7% 66.5% 46.1% 41.9% 57.4% 51.8% 62.0% 68.7% 59.5% 53.2% 50.4% Current ratio 2.12 2.94 2.33 2.38 2.21 2.31 2.12 2.25 1.87 1.37 1.69

Equity per share 15.49$ 17.05$ 19.44$ 18.63$ 13.25$ 12.32$ 10.31$ 9.26$ 11.79$ 11.67$ 11.23$

Shares outstanding at year-end 128.5 132.4 136.7 138.8 139.8 141.9 141.7 142.1 143.2 149.4 170.8

Debt ratings at September 30, 2016 Fitch S&P Moody's Commercial paper F1 A-1 P-2 Long-term debt A A A3

(3) In November 2015, the FASB issued new guidance that requires all deferred income taxes to be classified on the balance sheet as noncurrent assets or liabilities rather than separating current and noncurrent deferred income taxes based on the classification of the related assets and liabilities. This requirement is effective for us no later than October 1, 2017; however, we elected to adopt earlier as of December 31, 2015. Upon adoption of this guidance we retrospectively reclassified $151.2 million of deferred income taxes from current assets to noncurrent assets at September 30, 2015.

(unaudited)(in millions, except per share amounts and ratios)

Condensed Balance Sheet Information

(2) On January 31, 2007 we divested our Dodge mechanical and Reliance Electric motors and motor repair services businesses. These were the principal businesses of our former Power Systems operating segment. Assets and liabilities sold are classified as assets available for sale and liabilities associated with assets available for sale in the Condensed Balance Sheet as of September 30, 2006 and 2005.

(1) In April 2015, the Financial Accounting Standards Board (FASB) issued new guidance requiring debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the related outstanding debt liability rather than as an asset. We adopted this guidance retrospectively as of September 30, 2015. We have included $9.4 million and $5.2 million of debt issuance costs associated with our long-term debt as a reduction of long-term debt, which we previously included within other assets, at September 30, 2015 and 2014, respectively. For purposes of the table above, this guidance has been applied only to fiscal 2014 and 2015.

September 30,

28

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Continuing Operations:Operating Activities Net income 729.7$ 827.6$ 826.8$ 756.3$ 737.0$ 697.8$ 464.3$ 220.7$ 577.6$ 1,487.8$ 607.0$ Cumulative effect of accounting change (2) - - - - - - - - - - 17.7 Income from discontinued operations - - - - - (0.7) (23.9) (2.8) - (918.5) (95.4) Income from continuing operations 729.7 827.6 826.8 756.3 737.0 697.1 440.4 217.9 577.6 569.3 529.3

Adjustments to arrive at cash provided by operating activites: Depreciation and amortization 172.2 162.5 152.5 145.2 138.6 131.3 127.3 134.1 136.5 117.9 117.4 Retirement benefits expense 157.1 141.3 132.9 170.4 105.9 100.9 89.1 48.5 44.0 59.3 90.3 Pension contributions (44.3) (41.0) (42.1) (41.3) (341.1) (184.7) (181.2) (28.8) (39.2) (49.1) (472.2) Receivables/inventories/payables 18.0 88.2 (61.5) (8.2) (24.1) (234.1) (180.9) 254.6 (141.2) (94.4) (24.8) Compensation and benefits (81.1) (33.9) 43.3 (8.5) (67.0) 16.9 143.9 (56.7) 15.4 7.8 (39.9) Tax payments related to the gain on divestiture of Power Systems - - - - - - - - (7.9) (190.0) - Other (4.3) 43.0 (18.6) 0.9 169.4 116.3 55.4 (43.2) 11.6 24.1 113.2

Cash provided by operating activities 947.3 1,187.7 1,033.3 1,014.8 718.7 643.7 494.0 526.4 596.8 444.9 313.3

Investing Activities Capital expenditures (116.9) (122.9) (141.0) (146.2) (139.6) (120.1) (99.4) (98.0) (151.0) (131.0) (122.3) Acquisitions of businesses, net of cash acquired (139.1) (21.2) (81.5) (84.8) (16.2) (45.9) - (30.7) (110.8) (249.5) (39.5) Proceeds from sales of property, business and investment 0.4 2.1 0.4 0.5 2.6 5.1 10.4 8.8 7.7 1,750.5 196.8 Proceeds from maturities of short-term investments 886.3 762.7 447.8 350.0 137.5 - - - - - - Purchases of short-term investments (1,070.7) (867.6) (705.7) (372.2) (487.5) - - (8.4) - - - Proceeds from sales of available for sale securities - - - - - - - - 36.3 32.1 - Proceeds from return of investment - - - - - - - - - 2.6 24.1 Other investing activities - - (3.4) (4.1) - - - (4.1) (2.9) (5.8) (6.4)

Cash (used for) provided by investing activities (440.0) (246.9) (483.4) (256.8) (503.2) (160.9) (89.0) (132.4) (220.7) 1,398.9 52.7

Financing Activities Net issuance (repayment) of short-term debt 448.6 (325.0) 146.0 22.0 157.0 - - (100.0) 69.1 (60.7) 218.9 Issuance of long-term debt, net of discount and issuance costs - 594.3 - - - - - - - - - Cash dividends (378.2) (350.1) (320.5) (276.3) (247.4) (211.0) (173.6) (164.5) (170.2) (184.7) (159.3) Purchases of treasury stock (507.6) (598.4) (485.7) (402.7) (259.4) (298.7) (118.8) (53.5) (359.1) (1,519.3) (722.5) Proceeds from the exercise of stock options 36.2 60.3 108.5 172.3 49.0 174.0 35.2 11.3 13.2 64.9 60.1 Excess income tax benefit from share-based compensation 3.3 12.4 29.9 31.9 18.5 38.1 16.1 2.4 4.6 27.1 47.4 Other financing activities - (1.6) - (1.8) (0.4) (0.3) (0.3) (3.1) (0.4) (0.4) (0.7)

Cash used for financing activities (397.7) (608.1) (521.8) (454.6) (282.7) (297.9) (241.4) (307.4) (442.8) (1,673.1) (556.1)

Effect of exchange rate changes on cash (10.5) (96.7) (37.7) 0.6 (16.8) (5.8) 6.8 (24.5) 30.7 38.8 (1.2)

Cash provided by (used for) continuing operations 99.1 236.0 (9.6) 304.0 (84.0) 179.1 170.4 62.1 (36.0) 209.5 (191.3) Discontinued Operations: Cash (used for) provided by discontinued operating activities - - - (7.0) (1.0) (3.6) (0.8) (0.5) (6.0) 13.9 110.9 Cash (used for) provided by discontinued investing activities - - - - - - - - - (6.5) 29.8 Cash (used for) provided by discontinued financing activities - - - - - - - - - (0.8) (0.3) Cash (used for) provided by discontinued operations - - - (7.0) (1.0) (3.6) (0.8) (0.5) (6.0) 6.6 140.4

Increase (decrease) in cash and cash equivalents 99.1 236.0 (9.6) 297.0 (85.0) 175.5 169.6 61.6 (42.0) 216.1 (50.9) Cash and cash equivalents at beginning of year 1,427.3 1,191.3 1,200.9 903.9 988.9 813.4 643.8 582.2 624.2 408.1 459.0

Cash and cash equivalents at end of year 1,526.4$ 1,427.3$ 1,191.3$ 1,200.9$ 903.9$ 988.9$ 813.4$ 643.8$ 582.2$ 624.2$ 408.1$

Free cash flow(1) 833.7$ 1,077.2$ 922.2$ 900.5$ 597.6$ 561.7$ 410.7$ 430.8$ 458.3$ 531.0$ 238.4$

(1) Free Cash Flow is a non-GAAP measure. See page 32 for the definition and reasons why management believes this information is useful to investors.

(2) See page 34 for a discussion of the cumulative effect of accounting change.

(unaudited)(in millions)

Condensed Cash Flow Information


29

ROIC is calculated as follows (in millions, except percentages):Twelve Months Ended

Mar. 31,2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

(a) ReturnIncome from continuing operations 780.4$ 729.7$ 827.6$ 826.8$ 756.3$ 737.0$ 697.1$ 440.4$ 217.9$ 577.6$ Interest expense 73.9 71.3 63.7 59.3 60.9 60.1 59.5 60.5 60.9 68.2 Income tax provision 196.7 213.4 299.9 307.4 224.6 228.9 170.5 103.8 56.0 231.3 Purchase accounting depreciation and amortization 20.4 18.4 21.0 21.6 19.3 19.8 19.8 18.9 18.6 24.2 Special items - - - - - - - - (4.0) 46.7

Return 1,071.4 1,032.8 1,212.2 1,215.1 1,061.1 1,045.8 946.9 623.6 349.4 948.0

(b) Average invested capitalShort-term debt 472.4 248.2 166.6 275.5 209.0 207.2 - - 70.1 325.1 Long-term debt 1,406.4 1,509.0 1,261.9 905.3 905.0 905.0 904.9 904.8 904.6 804.5 Shareowners’ equity 2,114.9 2,164.1 2,521.3 2,680.7 2,086.7 1,881.5 1,709.7 1,387.9 1,563.5 1,798.5 Accumulated amortization of goodwill and intangibles 820.4 811.8 792.6 772.7 775.2 751.0 716.7 679.4 648.3 619.0 Cash and cash equivalents (1,493.5) (1,461.7) (1,376.1) (1,210.6) (1,010.2) (878.8) (922.7) (763.3) (576.0) (728.0) Short-term and long-term investments (966.4) (846.5) (639.3) (485.2) (361.7) (232.5) - - - -

Average invested capital 2,354.2 2,424.9 2,727.0 2,938.4 2,604.0 2,633.4 2,408.6 2,208.8 2,610.5 2,819.1

(c) Effective tax rateIncome tax provision 196.7 213.4 299.9 307.4 224.6 228.9 170.5 103.8 56.0 231.3 Income from continuing operations before income taxes 977.1$ 943.1$ 1,127.5$ 1,134.2$ 980.9$ 965.9$ 867.6$ 544.2$ 273.9$ 808.9$

Effective tax rate 20.1 % 22.6 % 26.6 % 27.1 % 22.9 % 23.7 % 19.7 % 19.1 % 20.4 % 28.6 %

(a) / (b) * (1-c) Return On Invested Capital 36.4 % 33.0 % 32.6 % 30.1 % 31.4 % 30.3 % 31.6 % 22.8 % 10.7 % 24.0 %

Twelve Months Ended September 30,

(c) one minus the effective tax rate for the period.

Return On Invested Capital (ROIC) is a non-GAAP financial measure. We believe that ROIC is useful to investors as a measure of performance and of the effectiveness of the use of capital in our operations. We use ROIC as one measure to monitor and evaluate our performance, including as a financial measure for our annual incentive compensation. Our measure of ROIC may be different from that used by other companies. We define ROIC as the percentage resulting from the following calculation:

Return on Invested Capital (in millions, except percentages)

(unaudited)

(a) Income from continuing operations, before interest expense, income tax provision, and purchase accounting depreciation and amortization, divided by;

(b) average invested capital for the year, calculated as a five quarter rolling average using the sum of short-term debt, long-term debt, shareowners’ equity, and accumulated amortization of goodwill and other intangible assets, minus cash and cash equivalents and short-term and long-term investments, multiplied by;

30

Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate

2016 2015 2014 2013 2012 2011 2010 2009 2008

Income from continuing operations 729.7$ 827.6$ 826.8$ 756.3$ 737.0$ 697.1$ 440.4$ 217.9$ 577.6$ Non-operating pension costs (1) 76.2 62.7 55.9 78.5 35.2 23.5 10.1 (19.6) (24.9)

Tax effect of non-operating pension costs (27.5) (21.9) (20.0) (28.5) (12.6) (8.5) (3.6) 7.3 9.8 Adjusted Income 778.4$ 868.4$ 862.7$ 806.3$ 759.6$ 712.1$ 446.9$ 205.6$ 562.5$

Diluted EPS from continuing operations $5.56 6.09$ 5.91$ 5.36$ 5.13$ 4.79$ 3.05$ 1.53$ 3.89$ Non-operating pension costs per diluted share 0.58 0.46 0.40 0.55 0.25 0.16 0.07 (0.14) (0.17) Tax effect of non-operating pension costs per diluted share (0.21) (0.15) (0.14) (0.20) (0.09) (0.06) (0.02) 0.05 0.07

Adjusted EPS 5.93$ 6.40$ 6.17$ 5.71$ 5.29$ 4.89$ 3.10$ 1.44$ 3.79$

Efffective tax rate 22.6% 26.6% 27.1% 22.9% 23.7% 19.7% 19.1% 20.4% 28.6%Tax effect of non-operating pension costs 1.0% 0.4% 0.4% 1.0% 0.4% 0.4% 0.3% -1.3% -0.3%

Adjusted Effective Tax Rate 23.6% 27.0% 27.5% 23.9% 24.1% 20.1% 19.4% 19.1% 28.3%

(1) See page 31 for a reconciliation of the components of operating and non-operating pension costs by fiscal year.


Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate are non-GAAP measures that exclude non-operating pension costs and their related income tax effects. Non-operating pension costs include defined benefit plan interest cost, expected return on plan assets, amortization of actuarial gains and losses and the impacts of any plan curtailments or settlements. These components of net periodic benefit cost primarily relate to changes in pension assets and liabilities that are a result of market performance; we consider these costs to be unrelated to the operating performance of our business. 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 measure 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 income from continuing operations, diluted EPS and effective tax rate.

The following are reconciliations of income from continuing operations, diluted EPS from continuing operations, and effective tax rate to Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate (in millions, except per share amounts and percentages):

Other Supplemental Information(unaudited)

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Free Cash Flow

The following table summarizes free cash flow (in millions):

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Cash provided by continuing operating activities 947.3$ 1,187.7$ 1,033.3$ 1,014.8$ 718.7$ 643.7$ 494.0$ 526.4$ 596.8$ 444.9$ 313.3$ Capital expenditures of continuing operations (116.9) (122.9) (141.0) (146.2) (139.6) (120.1) (99.4) (98.0) (151.0) (131.0) (122.3) Tax payments related to the gain on divestiture of Power Systems - - - - - - - - 7.9 190.0 - Excess income tax benefit from share-based compensation 3.3 12.4 29.9 31.9 18.5 38.1 16.1 2.4 4.6 27.1 47.4 Free cash flow 833.7$ 1,077.2$ 922.2$ 900.5$ 597.6$ 561.7$ 410.7$ 430.8$ 458.3$ 531.0$ 238.4$



Our definition of free cash flow, which is a non-GAAP financial measure, takes into consideration capital investments required to maintain the operations of our businesses and execute our strategy. We account for share-based compensation under U.S. GAAP, which requires that we report the excess income tax benefit from share-based compensation as a financing cash flow rather than as an operating cash flow. We have added this benefit back to our calculation of free cash flow in order to generally classify cash flows arising from income taxes as operating cash flows.

In our opinion, free cash flow provides useful information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends and share repurchases. We use free cash flow, as defined, as one measure to monitor and evaluate performance, including as a financial measure for our annual incentive compensation. Our definition of free cash flow may be different from definitions used by other companies.

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Components of Pension Expense

The following are the components of operating and non-operating pension costs (in millions):

2016 2015 2014 2013 2012 2011 2010 2009 2008Service cost 88.0$ 85.7$ 78.5$ 92.1$ 71.8$ 70.1$ 68.7$ 56.0$ 58.0$ Amortization of prior service credit (2.9) (2.7) (2.7) (2.5) (2.3) (2.2) (3.8) (3.7) (4.5) Operating pension costs 85.1$ 83.0$ 75.8$ 89.6$ 69.5$ 67.9$ 64.9$ 52.3$ 53.5$

Interest cost 169.5$ 167.2$ 174.2$ 160.2$ 167.6$ 163.9$ 159.7$ 154.7$ 149.7$ Expected return on plan assets (218.3) (223.2) (217.9) (226.3) (228.1) (204.5) (192.1) (191.5) (193.5) Amortization of net actuarial loss 124.5 118.7 99.7 144.6 94.7 63.7 42.1 16.9 19.2 Other 0.5 - (0.1) - 1.0 0.4 0.4 0.3 (0.3) Non-operating pension costs 76.2$ 62.7$ 55.9$ 78.5$ 35.2$ 23.5$ 10.1$ (19.6)$ (24.9)$

Net periodic pension cost 161.3$ 145.7$ 131.7$ 168.1$ 104.7$ 91.4$ 75.0$ 32.7$ 28.6$

(unaudited)Other Supplemental Information

Year ended September 30,

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Cumulative Effect of Accounting Change


Effective September 30, 2006, we adopted FIN 47, which clarifies the guidance included in SFAS No. 143, Accounting for Asset Retirement Obligations (SFAS 143). Under FIN 47, companies must accrue for costs related to a legal obligation associated with the retirement of a tangible long-lived asset that results from the acquisition, construction, development or the normal operation of the long-lived asset. The application of FIN 47 resulted in a charge to continuing operations, net of tax, of $17.7 million included in the Consolidated Statement of Operations for the year ended September 30, 2006 as the cumulative effect of change in accounting principle.

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