(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, change in fair value of investments, purchase accounting depreciation and amortization expense attributable to Rockwell Automation, and Net loss attributable to noncontrolling interests, including their respective tax effects.
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 attributable to Rockwell Automation, diluted EPS, and effective tax rate.
The following are the components of operating and non-operating pension and postretirement benefit (credit) cost for the three and twelve months ended September 30, 2022 and 2021 (in millions):
|
Three Months Ended September 30, |
|
Twelve Months Ended September 30, |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Service cost |
$ |
15.0 |
|
|
$ |
21.8 |
|
|
$ |
71.7 |
|
|
$ |
91.3 |
|
Operating pension and postretirement benefit cost |
|
15.0 |
|
|
|
21.8 |
|
|
|
71.7 |
|
|
|
91.3 |
|
|
|
|
|
|
|
|
|
||||||||
Interest cost |
|
36.7 |
|
|
|
31.6 |
|
|
|
136.9 |
|
|
|
126.8 |
|
Expected return on plan assets |
|
(55.6 |
) |
|
|
(59.3 |
) |
|
|
(230.7 |
) |
|
|
(241.3 |
) |
| Amortization of prior service credit |
|
(0.4 |
) |
|
|
(0.9 |
) |
|
|
(0.2 |
) |
|
|
(4.0 |
) |
| Amortization of net actuarial loss |
|
4.6 |
|
|
|
31.1 |
|
|
|
60.1 |
|
|
|
142.5 |
|
| Settlement and curtailment charges |
|
14.4 |
|
|
|
13.0 |
|
|
|
38.6 |
|
|
|
39.8 |
|
| Non-operating pension and postretirement benefit (credit) cost |
|
(0.3 |
) |
|
|
15.5 |
|
|
|
4.7 |
|
|
|
63.8 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Net periodic pension and postretirement benefit cost |
$ |
14.7 |
|
|
$ |
37.3 |
|
|
$ |
76.4 |
|
|
$ |
155.1 |
|
