Form 11-K
Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One):
     
þ   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
OR
     
o   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     .
Commission file number 1-12383
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
Rockwell Automation Savings and Investment Plan For Represented Hourly Employees
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
Rockwell Automation, Inc.,
1201 South 2nd Street,
Milwaukee, Wisconsin 53204
 
 

 

 


 

ROCKWELL AUTOMATION SAVINGS AND INVESTMENT
PLAN FOR REPRESENTED HOURLY EMPLOYEES
TABLE OF CONTENTS
         
    Page No.  
 
       
    1  
 
       
FINANCIAL STATEMENTS:
       
 
       
    2  
 
       
    3  
 
       
    4  
 
       
SUPPLEMENTAL SCHEDULE:
       
 
       
    14  
 
       
    15  
 
       
EXHIBIT:
       
 
       
    16  
 
       
All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

 

 


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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Rockwell Automation Savings and Investment Plan
for Represented Hourly Employees and Participants therein:
We have audited the accompanying statements of net assets available for benefits of Rockwell Automation Savings and Investment Plan for Represented Hourly Employees (the “Plan”) as of December 31, 2009 and 2008, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2009 and 2008, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule, as listed in the Table of Contents, is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic 2009 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2009 financial statements taken as a whole.
Milwaukee, Wisconsin
June 22, 2010

 

 


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ROCKWELL AUTOMATION SAVINGS AND INVESTMENT
PLAN FOR REPRESENTED HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2009 AND 2008
                 
    2009     2008  
ASSETS
               
 
               
INVESTMENTS:
               
Master Trust (Note 3)
  $ 34,958,928     $ 33,266,325  
Participant Loans
    256,689       372,787  
 
           
 
               
Total investments at fair value
    35,215,617       33,639,112  
 
               
Adjustment from fair value to contract value for interest in Master Trust relating to fully benefit-responsive investment contracts
    (280,489 )     327,831  
 
           
 
               
NET ASSETS AVAILABLE FOR BENEFITS
  $ 34,935,128     $ 33,966,943  
 
           
See notes to financial statements.

 

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ROCKWELL AUTOMATION SAVINGS AND INVESTMENT
PLAN FOR REPRESENTED HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 2009 AND 2008
                 
    2009     2008  
 
               
NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR
  $ 33,966,943     $ 42,044,381  
 
           
 
               
ADDITIONS:
               
Income from investments:
               
Interest in income of Master Trust
    3,513,313        
Interest on Participant Loans
    22,005       33,610  
 
           
 
               
Total income from investments
    3,535,318       33,610  
 
           
 
               
Contributions:
               
Employer
    262,351       322,538  
Employee
    1,416,291       1,799,050  
 
           
 
               
Total contributions
    1,678,642       2,121,588  
 
           
 
               
Total additions
    5,213,960       2,155,198  
 
           
 
               
DEDUCTIONS:
               
Loss from investments:
               
Interest in loss of Master Trust
          5,050,759  
Payments to participants or beneficiaries
    4,245,775       5,182,526  
 
           
 
               
Total deductions
    4,245,775       10,233,285  
 
           
 
               
NET INCREASE (DECREASE) BEFORE TRANSFERS
    968,185       (8,078,087 )
 
               
NET TRANSFERS BETWEEN AFFILIATED PLANS
          649  
 
           
 
               
NET INCREASE (DECREASE)
    968,185       (8,077,438 )
 
           
 
               
NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR
  $ 34,935,128     $ 33,966,943  
 
           
See notes to financial statements.

 

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ROCKWELL AUTOMATION SAVINGS AND INVESTMENT
PLAN FOR REPRESENTED HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2009 AND 2008
1.  
DESCRIPTION OF THE PLAN
 
   
The following brief description of the Rockwell Automation Savings and Investment Plan for Represented Hourly Employees (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for more complete information.
  a.  
General - The Plan is a defined contribution savings plan covering all represented hourly employees of Rockwell Automation, Inc. and its subsidiaries (“Rockwell Automation”) who elect to participate in the Plan and who are employees at a Rockwell Automation location to which participation has been extended. The Rockwell Automation Employee Benefit Plan Committee and the Plan Administrator control and manage the operation and administration of the Plan. Fidelity Management Trust Company (the “Trustee”) is the trustee of the Rockwell Automation, Inc. Defined Contribution Master Trust (the “Master Trust”). The assets of the Plan are managed by the Trustee and several other investment managers. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).
 
     
Participants in the Plan may invest in a suite of twelve lifestyle mutual funds, nine core investment options and a brokerage option. In addition, the Rockwell Automation Stock Fund was available in 2009 and 2008 and is specific to the Plan.
 
  b.  
Participation - The Plan provides that eligible employees electing to become participants may contribute up to a maximum of 25% of base compensation, as defined in the Plan document. Participant contributions can be made either before or after United States federal taxation of the participant’s base compensation. However, pre-tax contributions by highly compensated participants are limited to 12% of base compensation. In addition, highly-compensated participants may contribute up to an additional 4% on an after-tax basis.
 
     
Rockwell Automation contributes an amount equal to 50% of the first 5% of base compensation contributed by the participant. Rockwell Automation contributions are made to the Stable Value Fund (as defined below). Participants may transfer a portion or all of their holdings in the Stable Value Fund to one or more of the other investment funds at any time.
 
  c.  
Investment Elections - Participants may contribute to any or all of the funds that are available for contributions in 1% increments. Participants may change such investment elections on a daily basis. If a participant does not have an investment election on file, contributions are made to one of the Fidelity Freedom Funds, based on the participant’s date of birth.
 
  d.  
Unit Values - Participants do not own specific securities or other assets in the various funds, but have an interest therein represented by units valued as of the end of each business day. However, voting rights are extended to participants in proportion to their interest in each stock fund and each mutual fund, as represented by common units. Participants’ accounts are charged or credited for Plan earnings or loss from investments, as the case may be, with the number of units properly attributable to each participant.

 

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  e.  
Vesting - Each participant is fully vested at all times in the portion of the participant’s account that relates to the participant’s contributions and earnings thereon. Vesting in the employer contribution portion of a participant’s account plus actual earnings thereon is based on the vesting schedule described in the Plan document. A participant is 100% vested after 60 months of vesting service.
 
  f.  
Loans - A participant may obtain a loan in an amount as defined in the Plan document (not less than $1,000 and not greater than the lower of $50,000, reduced by the participant’s highest outstanding loan balance during the 12 month period before the date of the loans, or 50% of the participant’s vested account balance less any outstanding loans) from the balance of the participant’s account. Loans are secured by the remaining balance in the participant’s account. Interest is charged at a rate equal to the prime rate plus 1% at inception date of the loan. The loans can be repaid through payroll deductions over terms of 12, 24, 36, 48 or 60 months, or up to 120 months for the purchase of a primary residence, or repaid in full after a minimum of one month. Payments of principal and interest are credited to the participant’s account. Participants may have up to two outstanding loans at a time from the Plan.
 
  g.  
Forfeitures - When certain terminations of participation in the Plan occur, the nonvested portion of the participant’s account represents a forfeiture, as defined in the Plan document. Forfeitures remain in the Plan and subsequently are used to reduce Rockwell Automation’s contributions to the Plan in accordance with ERISA. However, if the participant is re-employed with Rockwell Automation and fulfills certain requirements, as defined in the Plan document, the participant’s account will be restored. As of December 31, 2009 and 2008, forfeited nonvested accounts totaled $35,752 and $34,685, respectively. During the years ended December 31, 2009 and 2008, Rockwell Automation’s contributions were reduced by $0 and $6,163, respectively, from forfeited nonvested accounts.
 
  h.  
Plan Termination - Although Rockwell Automation has not expressed any current intent to terminate the Plan, Rockwell Automation has the authority to terminate or modify the Plan and to suspend contributions to the Plan in accordance with ERISA. If the Plan is terminated or contributions by Rockwell Automation are discontinued, each participant’s employer contribution account will be fully vested. Benefits under the Plan will be provided solely from Plan assets.
 
  i.  
Withdrawals and Distributions – An active participant may withdraw certain amounts up to their entire vested interest when the participant attains the age of 59-1/2. An active participant also may withdraw certain amounts when financial hardship is demonstrated. Participant vested amounts are payable upon retirement, death or other termination of employment.
 
  j.  
Expenses - Plan fees and expenses, including fees and expenses associated with the provision of administrative services by external service providers, are paid by Rockwell Automation.
2.  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  a.  
Valuation of Investments - The Plan has an interest in the assets of the Master Trust. The net assets of the Master Trust are stated at fair value. Benefit responsive investment contracts held in the Master Trust are then adjusted and stated at contract value. Investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the

 

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amount participants would receive if they were to initiate permitted transactions under the terms of the plan. The Plan invests in investment contracts through a common collective trust (the “Stable Value Fund”) held by the Master Trust. The Statements of Net Assets Available for Benefits present the fair value of the investment in the common collective trust as well as the adjustment of the investment in the common collective trust from fair value to contract value relating to the investment contracts. The Statements of Changes in Net Assets Available for Benefits are presented on a contract value basis.
 
     
Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on an accrual basis. Dividends are recorded on the dividend payable date. The loan fund is stated at cost, which approximates fair value.
 
  b.  
Fair Value Measurements – Accounting Standards Codification (“ASC”) Topic 820 establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 820 are described below:
Level 1 – Valuation based on quoted prices in active markets for identical assets or liabilities that the Master Trust has the ability to access. Since the valuation is based on quoted prices that are readily and regularly available in the active market, valuation of these investments does not entail a significant degree of judgment.
Level 2 – Valuation based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly. Valuation methodology for these assets include:
   
Quoted prices for similar assets or liabilities in active markets;
 
   
Quoted prices for identical or similar assets or liabilities in inactive markets;
 
   
Inputs other than quoted prices that are observable for the asset or liability;
 
   
Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 – Valuation based on inputs that are unobservable and significant to the overall fair value measurement.
     
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
 
     
Following is a description of the valuation methodologies used for the Plan’s non-Master Trust related investments measured at fair value. There have been no changes in the methodologies used at December 31, 2009 and 2008.

 

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Participant Loans: Valued at amortized cost plus accrued interest, which approximates fair value.
 
     
The following tables set forth by level, within the fair value hierarchy, the Plan’s non-Master Trust related investments at fair value as of December 31, 2009 and 2008:
Investments at Fair Value as of December 31, 2009
                                 
    Level 1     Level 2     Level 3     Total  
Participant Loans
  $     $     $ 256,689     $ 256,689  
Investments at Fair Value as of December 31, 2008
                                 
    Level 1     Level 2     Level 3     Total  
Participant Loans
  $     $     $ 372,787     $ 372,787  
     
The table below sets forth a summary of changes in the fair value of the Plan’s non-Master Trust related level 3 investments for the years ended December 31, 2009 and 2008:
                 
    Participant     Participant  
    Loans     Loans  
    December 31, 2009     December 31, 2008  
Balance, beginning of year
  $ 372,787     $ 633,867  
New loans issued, interest earned and repayments-net
    (116,098 )     (261,080 )
 
           
Balance, end of year
  $ 256,689     $ 372,787  
 
           
  c.  
Use of Estimates - Estimates and assumptions made by the Plan’s management affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases to Plan assets during the reporting period. Actual results could differ from those estimates.
 
  d.  
Payment of Benefits - Benefits are recorded when paid.
 
  e.  
Risks and Uncertainties - The Plan invests in various investments. In general, investments are exposed to various risks, such as interest rate, credit and overall market volatility. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of certain investments will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
 
  f.  
Subsequent Events – Management has evaluated the impact of all subsequent events through June 22, 2010, the date the Plan’s financial statements were issued, and determined that all subsequent events have been appropriately recognized and disclosed in the accompanying financial statements.
3.  
MASTER TRUST
 
   
At December 31, 2009 and 2008, with the exception of the participant loan fund, all of the Plan’s investment assets were held in the Master Trust account at the Trustee. Use of the Master Trust permits the commingling of the trust assets of a number of benefit plans of Rockwell Automation and its subsidiaries for investment and administrative purposes. Although assets are commingled in the Master Trust, the Trustee maintains supporting records for the purpose of allocating the net earnings or loss of the investment accounts to the various participating plans.

 

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The Master Trust investments are valued at fair value at the end of each day. If available, quoted market prices are used to value investments. If quoted market prices are not available, the fair value of investments is estimated primarily by independent investment brokerage firms and insurance companies.
 
   
The net earnings or loss of the accounts for each day are allocated by the Trustee to each participating plan based on the relationship of the interest of each plan to the total of the interests of all participating plans.
 
   
The net assets of the Master Trust at December 31, 2009 and 2008 are summarized as follows:
                 
    2009     2008  
     
Money market fund
  $ 9,470,565     $ 18,843,528  
Cash
    69,111       19,928,284  
Common stocks
    587,735,446       425,956,165  
Mutual funds
    788,544,912       631,823,559  
Brokeragelink accounts
    18,307,519       11,040,114  
Corporate debt investments
    12,411,311       10,117,956  
Asset and mortgage backed securities
    19,215,703       21,014,503  
U.S. government securities
    6,828,368       2,987,820  
Other fixed income investments
    1,963,222       2,274,822  
Investments in common collective trusts:
               
Fidelity U.S. Equity Index Commingled Pool
    83,914,214       69,213,365  
Mellon Rockwell EB Daily Fund
    22,031,160       14,826,301  
Stable Value Fund –
guaranteed investment contracts
    531,083,774       535,052,749  
 
           
Total investments at fair value
    2,081,575,305       1,763,079,166  
Accrued income
    252       21,929  
Accrued fees
    (742,531 )     (515,429 )
Pending trades (net)
    (1,282,714 )     529,099  
 
           
Net assets at fair value
    2,079,550,312       1,763,114,765  
Adjustment from fair value to contract value for fully benefit-responsive investment contracts
    (6,541,235 )     7,582,493  
 
           
Net assets
  $ 2,073,009,077     $ 1,770,697,258  
 
           
   
The following is a description of the valuation methodologies used for the Master Trust’s investments measured at fair value. There have been no changes in the methodologies used at December 31, 2009 and 2008.
 
   
Money market fund – Valued at cost, which approximates the fair value of the net asset value of shares held at year end.
 
   
Common stocks – Valued at the closing price reported on the active market on which the individual securities are traded.
 
   
Mutual funds – Valued at the net asset value of shares held at year end.
 
   
Brokeragelink accounts – Valued at the most recent closing price reported on the market on which the individual securities are traded.
 
   
Corporate debt investments – Valued at the most recent closing price reported on the market on which the individual securities are traded.

 

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Asset and mortgage backed securities and other fixed income investments – Valued at the most recent closing price reported on the market on which individual securities are traded.
U.S. government securities – Valued at the closing price reported on the active market on which the individual securities are traded.
Common collective trust; Stable Value Fund – Valued at fair value, based on information provided by the trustee, by discounting the related cash flows based on current yields of similar instruments with comparable durations and considering the credit-worthiness of the issuer of the specific instruments held by the fund at year end.
Common collective trusts; Other – Valued at the net asset value of shares held at year end.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Master Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following tables set forth by level, within the fair value hierarchy, the fair value of the Master Trust’s investments as of December 31, 2009 and 2008:
Investments at Fair Value as of December 31, 2009
                                 
    Level 1     Level 2     Level 3     Total  
 
                               
Money market fund
  $     $ 9,470,565     $     $ 9,470,565  
Cash
    69,111                   69,111  
Common stocks
    587,735,446                   587,735,446  
Mutual funds
    788,544,912                   788,544,912  
Brokeragelink accounts
          18,307,519             18,307,519  
Corporate debt
          12,411,311             12,411,311  
Asset and mortgage backed securities
          19,215,703             19,215,703  
U.S. government securities
    6,828,368                   6,828,368  
Other fixed income investments
          1,963,222             1,963,222  
Common collective trusts
          105,945,374       531,083,774       637,029,148  
 
                       
Total Master Trust Investments
  $ 1,383,177,837     $ 167,313,694     $ 531,083,774     $ 2,081,575,305  
 
                       

 

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Investments at Fair Value as of December 31, 2008
                                 
    Level 1     Level 2     Level 3     Total  
 
                               
Money market fund
  $     $ 18,843,528     $     $ 18,843,528  
Cash
    19,928,284                   19,928,284  
Common stocks
    425,956,165                   425,956,165  
Mutual funds
    631,823,559                   631,823,559  
Brokeragelink accounts
    11,040,114                   11,040,114  
Corporate debt
    10,117,956                   10,117,956  
Asset and mortgage backed securities
          21,014,503             21,014,503  
U.S. government securities
    2,987,820                   2,987,820  
Other fixed income investments
          2,274,822             2,274,822  
Common collective trusts
          84,039,666       535,052,749       619,092,415  
 
                       
Total Master Trust Investments
  $ 1,101,853,898     $ 126,172,519     $ 535,052,749     $ 1,763,079,166  
 
                       
The table below sets forth a summary of changes in fair market value of the Master Trust’s level 3 investments for the years ended December 31, 2009 and 2008:
                 
    Common collective     Common collective  
    trust –     trust –  
    Stable Value Fund     Stable Value Fund  
    December 31, 2009     December 31, 2008  
 
               
Balance, beginning of year
  $ 535,052,749     $ 514,626,720  
Change in adjustment to fair value from contract value
    14,123,728       (10,816,141 )
Purchases, sales, issuances, and settlements, net
    (18,092,703 )     31,242,170  
 
           
Balance, end of year
  $ 531,083,774     $ 535,052,749  
 
           
The Plan offers a Stable Value Fund option which, through the Master Trust, invests primarily in guaranteed investment contracts (“GICs”) and money market investments. The GICs are benefit-responsive and are designed to allow the Stable Value Fund to maintain a constant net asset value (“NAV”) and to protect the funds in extreme circumstances. The contracts accrue interest using a formula called the “crediting rate.” The contracts use the crediting rate formula to convert fair value changes in the covered assets into income distributions in order to minimize the difference between the fair and contract value of the covered assets over time. Using the crediting rate formula, an estimated future fair value is calculated by compounding the fund’s current fair value at the fund’s current yield to maturity for a period equal to the fund’s duration. The crediting rate is the discount rate that equates that estimated future fair value with the fund’s current contract value. Crediting rates are reset quarterly. The contracts provide a guarantee that the crediting rate will not fall below 0%. The crediting interest rate for the Stable Value Fund was 2.48% and 3.93% at December 31, 2009 and 2008, respectively. The crediting interest rates on the underlying investments are reviewed on a quarterly basis for resetting. The average yield for the years ended December 31, 2009 and 2008 was 2.99% and 4.57%, respectively.

 

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The fair value of the Stable Value Fund equals the fair value of the underlying assets in the related common collective trust fund reported to the Plan by the Trustee. In determining the net assets available for benefits, the Stable Value Fund is recorded at contract value. An investment contract is generally valued at contract value, rather than fair value, to the extent it is fully benefit-responsive. Contract value represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. There are currently no reserves against contract values for credit risk of the contract issuers or otherwise.
Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (i) amendments to the Plan documents (including complete or partial plan termination or merger with another plan); (ii) changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions; (iii) bankruptcy of the plan sponsor or other plan sponsor events (e.g. divestitures or spin-offs of a subsidiary) which cause a significant withdrawal from the Plan; or (iv) the failure of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under Employee Retirement Income Security Act of 1974. The Plan Administrator does not believe that the occurrence of any such event, which would limit the Plan’s ability to transact at contract value with participants, is probable.
An issuer may terminate a contract at any time. In the event that the fair value of the fund’s covered assets is below their contract value at the time of such termination, the Trustee may elect to keep the wrap contract in place until such time as the fair value of the fund’s covered assets is equal to their contract value. A wrap issuer may also terminate a wrap contract if the Trustee’s investment management authority over the fund is limited or terminated as well as if all of the terms of the wrap contract fail to be met. In the event that the fair value of the fund’s covered assets is below their contract value at the time of such termination, the terminating wrap provider would not be required to make a payment to the fund.
The Plan’s interest in the Stable Value Fund was approximately 4% at December 31, 2009 and 2008.
The net investment income of the Master Trust for the years ended December 31, 2009 and 2008 is summarized as follows:
                 
    2009     2008  
 
               
Interest
  $ 16,249,521     $ 24,027,047  
Dividends
    24,714,876       42,879,373  
Net appreciation (depreciation) in fair value of investments:
               
Common stocks
    158,317,629       (347,052,254 )
Mutual funds
    156,895,589       (413,135,136 )
Debt investments
    6,192,495       (6,057,328 )
Investment in common collective trust -
               
Fidelity U.S. Equity Index Commingled Pool
    17,351,246       (41,626,484 )
Mellon Rockwell EB Daily Fund
    4,478,111       780,146  
Brokeragelink accounts
    3,216,750       (5,414,903 )
 
           
Net investment income (loss)
  $ 387,416,217     $ (745,599,539 )
 
           
The Plan’s interest in the Master Trust, as a percentage of net assets held by the Master Trust, was approximately 2% at December 31, 2009 and 2008. While the Plan participates in the Master Trust, the investment portfolio is not ratable among the various participating plans. As a result, those plans with smaller participation in the common stock funds recognized a disproportionately lesser amount of net appreciation in 2009 and net depreciation in 2008.

 

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The Master Trust’s investments that exceeded 5% of net assets as of December 31, 2009 and 2008 are as follows:
                 
Description of Investment   2009     2008  
 
               
Stable Value Fund
  $ 531,083,774     $ 535,052,749  
Rockwell Automation, Inc. common stock
    234,897,476       169,637,079  
Fidelity International Discovery Fund
    114,588,275       90,682,644  
Fidelity Freedom 2020 Fund
    120,745,109       96,985,757  
4.  
NON-PARTICIPANT DIRECTED INVESTMENTS
Information about the net assets and the significant components of the changes in net assets relating to the Stable Value Fund for the years ended December 31, 2009 and 2008, respectively, is as follows:
                 
    2009     2008  
 
               
Net Assets at Contract Value, Beginning of Year*
  $ 6,257,149     $ 6,461,099  
 
           
 
               
Changes in net assets:
               
Contributions
    256,742       321,943  
Interest
    180,667       284,927  
Benefits paid to participants
    (824,909 )     (912,190 )
Transfers
    53,846       101,370  
 
           
Total changes in net assets at contract value
    (333,654 )     (203,950 )
 
           
 
               
Net Assets at Contract Value, End of Year*
  $ 5,923,495     $ 6,257,149  
 
           
     
*  
These net assets are included in the Master Trust.
Information about the net assets and the significant components of the changes in net assets relating to the non-participant directed investments in the Rockwell Automation Stock Fund for the years ended December 31, 2009 and 2008 is as follows:
                 
    2009     2008  
 
               
Net Assets, Beginning of Year*
  $ 139,923     $ 254,301  
 
           
 
               
Changes in net assets:
               
Contributions
    467          
Dividends
    4,210       4,276  
Net appreciation (depreciation)
    51,139       (138,011 )
Benefits paid to participants
    (2,535 )     (8,274 )
Transfers
    (22,083 )     27,631  
 
           
Total changes in net assets
    31,198       (114,378 )
 
           
 
               
Net Assets, End of Year*
  $ 171,121     $ 139,923  
 
           
     
*  
These net assets are included in the Master Trust.
5.  
TAX STATUS
The Internal Revenue Service has determined and informed Rockwell Automation by letter dated September 28, 2009, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code of 1986, as amended (the “IRC”). The Plan has been amended since receiving the determination letter. The Plan Administrator believes that the Plan is currently designed and is being operated in compliance with the applicable provisions of the IRC and the Plan continues to be tax-exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

 

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6.  
RELATED-PARTY TRANSACTIONS
Certain Master Trust investments are shares of mutual funds managed by Fidelity Management Trust Company. Fidelity is the trustee and recordkeeper as defined by the Master Trust; therefore, these transactions qualify as party-in-interest transactions. Fees paid by the Master Trust for investment management services were included as a reduction of the return earned on each fund.
At December 31, 2009 and 2008, the Master Trust held 4,999,946 and 5,261,696 shares, respectively, of common stock of Rockwell Automation, the sponsoring employer, with a cost basis of $65,637,369 and $64,648,703, respectively, and a fair value of $234,897,476 and $169,637,079, respectively.
During 2009 and 2008, dividends on Rockwell Automation common stock paid to eligible plan participants were $6,038,846 and $5,943,623, respectively.
7.  
RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
Reconciliation of net assets available for benefits reported in the financial statements to the net assets reported on line 1(l) of the 2009 Form 5500 Schedule H, Part I is presented below.
                 
    2009     2008  
 
               
Net assets available for benefits reported in the financial statements
  $ 34,935,128     $ 33,966,943  
Adjustment from contract value to fair value for interest in Master Trust relating to fully benefit-responsive investment contracts
    280,489       (327,831 )
 
           
Net assets reported on Form 5500
  $ 35,215,617     $ 33,639,112  
 
           
Reconciliation of total additions to plan assets reported in the financial statements to the total income reported on line 2(d) of the 2009 Form 5500 Schedule H, Part II is presented below.
         
    2009  
 
Total additions reported in the financial statements
  $ 5,213,960  
Adjustment from contract value to fair value for interest in Master Trust relating to fully benefit-responsive investment contracts
    608,320  
 
     
Total income as reported on Form 5500
  $ 5,822,280  
 
     
* * * * * *

 

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ROCKWELL AUTOMATION SAVINGS AND INVESTMENT PLAN
FOR REPRESENTED HOURLY EMPLOYEES
FORM 5500, SCHEDULE H, PART IV, LINE 4i -
SCHEDULE OF ASSETS (HELD AT END OF YEAR),
DECEMBER 31, 2009
EIN 25-1797617
PLAN NUMBER 009
                         
Column A   Column B   Column C   Column D   Column E  
        Description of Investment,              
    Identity of Issuer,   Including Collateral, Rate              
    Borrower, Lessor   of Interest, Maturity Date,           Fair  
    or Similar Party   Par or Maturity Value   Cost     Value  
*
  Fidelity Management.   Rockwell Automation, Inc.                
 
  Trust Company   Defined Contribution   $ 32,092,770     $ 34,958,928  
 
      Master Trust                
 
                       
*
  Various participants   Participant Loans; rates                
 
      ranging between 4.25% and                
 
      9.25%, due 2010 to 2018           256,689  
 
                   
 
                       
 
  Total assets (held at end of year)       $ 32,092,770     $ 35,215,617  
 
                   
     
*  
Party-in-interest.

 

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
ROCKWELL AUTOMATION SAVINGS AND INVESTMENT PLAN
FOR REPRESENTED HOURLY EMPLOYEES
         
By
  /s/ Teresa E. Carpenter
 
Teresa E. Carpenter
Plan Administrator
   
Date: June 22, 2010

 

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Exhibit A
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in the Registration Statement No. 333-151476 of Rockwell Automation, Inc. on Form S-8 of our report dated June 22, 2010, appearing in this Annual Report on Form 11-K of Rockwell Automation Savings and Investment Plan for Represented Hourly Employees for the year ended December 31, 2009.
Baker Tilly Virchow Krause, LLP
Milwaukee, Wisconsin
June 22, 2010

 

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