Rockwell Automation Reports Third Quarter 2019 Results

1Free cash flow for the fourth quarter of fiscal 2017 included a discretionary pre-tax contribution of $200 million to the Company's U.S. pension trust.

2Includes a payment of $31.1 million for taxes due under the Tax Act related to deemed repatriation of foreign earnings and a payment of $35.7 million to settle hedges executed in connection with our issuance of $1.0 billion of long-term notes in the second quarter of fiscal 2019.

Return On Invested Capital

Our press release contains information regarding Return On Invested Capital (ROIC), which 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:

(a) Net Income, 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, short-term investments, and long-term investments (fixed income securities), multiplied by;

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

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

 

 

Twelve Months Ended

 

 

June 30,

 

 

2019

 

2018

(a) Return

 

 

 

 

Net Income

 

$

1,033.6

 

 

$

394.2

 

Interest expense

 

90.4

 

 

73.3

 

Income tax provision

 

292.7

 

 

728.4

 

Purchase accounting depreciation and amortization

 

16.7

 

 

17.8

 

Return

 

1,433.4

 

 

1,213.7

 

(b) Average invested capital

 

 

 

 

Short-term debt

 

356.2

 

 

469.6

 

Long-term debt

 

1,512.2

 

 

1,236.7

 

Shareowners’ equity

 

1,365.8

 

 

2,077.8

 

Accumulated amortization of goodwill and intangibles

 

877.9

 

 

859.9

 

Cash and cash equivalents

 

(752.0

)

 

(1,376.3

)

Short-term and long-term investments

 

(348.4

)

 

(1,099.7

)

Average invested capital

 

3,011.7

 

 

2,168.0

 

(c) Effective tax rate

 

 

 

 

Income tax provision 1

 

238.1

 

 

244.7

 

Income before income taxes

 

$

1,326.3

 

 

$

1,122.6

 

Effective tax rate

 

18.0

%

 

21.8

%

(a) / (b) * (1-c) Return On Invested Capital

 

39.0

%

 

43.8

%


« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11  Next Page »



Review Article Be the first to review this article
SolidCAM - Learn More

Featured Video
Editorial
Latest Blog Posts
Sanjay GangalMCADCafe Lens
by Sanjay Gangal
NVIDIA GTC October 2020 Keynote
Jobs
Detailing/ PM Manager for Commercial Metals Company at Dallas, Texas
Director, Industrial Machinery Solutions- SISW PLM for Siemens AG at Livonia, Michigan
Design Engineer - Tilt Up and Bracing for Commercial Metals Company at Dallas, Texas
Product Design Engineer - Softgoods for Apple Inc at Cupertino, California
Electrical Engineer for Lockheed Martin at Liverpool, New York
Service Software Expert-CATIA & CAA for Dassault Systemes at Shanghai, China
Upcoming Events
PLM Road Map & PDT Spring 2021 at 3909 Research Park Drive Ann Arbor MI - May 19 - 20, 2021
TCT ASIA 2021 at National Exhibition and Convention Centre(NECC) Shanghai China - May 26 - 28, 2021
RAPID + TCT at McCormick Place Chicago IL - Sep 13 - 15, 2021
WESTEC Online at Online CA - Sep 21 - 23, 2021
Kenesto: 30 day trial
MasterCAM



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise