Form 11-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One):
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 |
For the fiscal year ended December 31, 2008
OR
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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
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Page No. |
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1 |
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FINANCIAL STATEMENTS: |
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3 |
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4 |
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SUPPLEMENTAL SCHEDULE: |
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15 |
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16 |
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EXHIBIT: |
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17 |
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All other schedules required by Section 2520.103-10 of the Department of Labors Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974
have been omitted because they are not applicable.
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, 2008 and 2007, 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 Plans 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 Plans 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, 2008 and 2007, 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 Labors Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The
supplemental schedule is the responsibility of the Plans management. The supplemental schedule has
been subjected to the auditing procedures applied in the audit of the basic 2008 financial
statements and, in our opinion, is fairly stated in all material respects in relation to the basic
2008 financial statements taken as a whole.
Baker Tilly Virchow Krause, LLP
Milwaukee, Wisconsin
June 23, 2009
ROCKWELL AUTOMATION SAVINGS AND INVESTMENT
PLAN FOR REPRESENTED HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2008 AND 2007
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2008 |
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2007 |
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ASSETS |
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INVESTMENTS: |
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Defined Contribution Master Trust (Note 3) |
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$ |
33,266,325 |
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$ |
41,560,379 |
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Participant Loans |
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372,787 |
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633,867 |
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Total investments at fair value |
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33,639,112 |
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42,194,246 |
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Adjustment from fair value
to contract value
for interest in
Defined Contribution Master Trust
relating to fully benefit-responsive
investment contracts |
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327,831 |
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(149,865 |
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NET ASSETS AVAILABLE FOR BENEFITS |
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$ |
33,966,943 |
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$ |
42,044,381 |
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See notes to financial statements.
- 2 -
ROCKWELL AUTOMATION SAVINGS AND INVESTMENT
PLAN FOR REPRESENTED HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 2008 AND 2007
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2008 |
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2007 |
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NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR |
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$ |
42,044,381 |
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$ |
43,953,952 |
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ADDITIONS: |
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Income from investments: |
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Interest in income of Defined Contribution Master Trust |
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2,512,350 |
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Interest on Participant Loans |
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33,610 |
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46,732 |
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Total income from investments |
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33,610 |
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2,559,082 |
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Contributions: |
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Employer |
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322,538 |
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378,438 |
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Employee |
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1,799,050 |
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2,220,153 |
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Total contributions |
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2,121,588 |
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2,598,591 |
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Total additions |
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2,155,198 |
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5,157,673 |
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DEDUCTIONS: |
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Loss from investments: |
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Interest in loss of Defined Contribution Master Trust |
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5,050,759 |
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Payments to participants or beneficiaries (Note 6) |
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5,182,526 |
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7,108,355 |
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Total deductions |
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10,233,285 |
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7,108,355 |
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NET DECREASE BEFORE TRANSFERS |
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(8,078,087 |
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(1,950,682 |
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NET TRANSFERS BETWEEN AFFILIATED PLANS |
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649 |
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41,111 |
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NET DECREASE |
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(8,077,438 |
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(1,909,571 |
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NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR |
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$ |
33,966,943 |
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$ |
42,044,381 |
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See notes to financial statements.
- 3 -
ROCKWELL AUTOMATION SAVINGS AND INVESTMENT
PLAN FOR REPRESENTED HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2008 AND 2007
1. |
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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.
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a. |
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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 mutual fund brokerage option. In addition, the Rockwell
Automation Stock Fund was available in 2008 and 2007 and is specific to the Plan.
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b. |
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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 participants 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.
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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 participants date of birth. |
- 4 -
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d. |
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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. |
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Vesting - Each participant is fully vested at all times in the portion of the
participants account that relates to the participants contributions and earnings
thereon. Vesting in the employer contribution portion of a participants 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. |
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f. |
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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
participants highest outstanding loan balance during the 12 month period before the date
of the loans, or 50% of the participants vested account balance less any outstanding
loans) from the balance of the participants account. Loans are secured by the remaining
balance in the participants 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 participants account. Participants may have
up to two outstanding loans at a time from the Plan. |
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g. |
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Forfeitures - When certain terminations of participation in the Plan occur, the
nonvested portion of the participants account represents a forfeiture as defined in the
Plan document. Forfeitures remain in the Plan and subsequently are used to reduce Rockwell
Automations 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 participants account will be restored. As of December
31, 2008 and 2007, forfeited nonvested accounts totaled $34,685 and $38,339, respectively.
During the years ended December 31, 2008 and 2007 Rockwell Automations contributions
were reduced by $6,163 and $7,000, respectively, from forfeited nonvested accounts. |
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h. |
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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 participants
employer contribution account will be fully vested. Benefits under the Plan will be
provided solely from Plan assets. |
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i. |
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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. |
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j. |
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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. |
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2. |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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a. |
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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 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. |
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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. |
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b. |
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Fair Value Measurements - Effective January 1, 2008, the Plan adopted Statement on
Financial Accounting Standards No. 157 (SFAS No. 157), Fair Value Measurements. SFAS
No. 157 established a single authoritative definition of fair value, sets a framework for
measuring fair value and requires additional disclosures about fair value measurement. |
SFAS No. 157 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 SFAS No. 157 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:
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Quoted prices for similar assets or liabilities in active
markets; |
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Quoted prices for identical or similar assets or liabilities in
inactive markets; |
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Inputs other than quoted prices that are observable for the asset
or liability; |
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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.
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The assets or liabilitys 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 Plans non-Master
Trust related investments measured at fair value. There have been no changes in the
methodologies used at December 31, 2008 and 2007.
Participant Loans: Valued at amortized cost plus accrued interest, which approximates fair
value.
The following table sets forth by level, within the fair value hierarchy, the Plans
non-Master Trust related investments at fair value as of December 31, 2008:
Investments at Fair Value as of December 31, 2008
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Participant Loans |
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$ |
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$ |
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$ |
372,787 |
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$ |
372,787 |
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The table below sets forth a summary of changes in the fair value of the Plans non-Master
Trust related level 3 investments for the year ended December 31, 2008:
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Participant |
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Loans |
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Balance, beginning of year |
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$ |
633,867 |
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New loans issued, interest earned and
repayments-net |
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(261,080 |
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Balance, end of year |
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$ |
372,787 |
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c. |
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Use of Estimates - Estimates and assumptions made by the Plans 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. |
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d. |
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Payment of Benefits - Benefits are recorded when paid. |
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e. |
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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. |
- 7 -
At December 31, 2008 and 2007, with the exception of the participant loan fund, all of
the Plans 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.
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, 2008 and 2007 are summarized as follows:
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2008 |
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2007 |
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Money market fund |
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$ |
18,843,528 |
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$ |
23,063,651 |
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Cash |
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19,928,284 |
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1,796,220 |
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Common stocks |
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425,956,165 |
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881,455,840 |
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Mutual funds |
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631,823,559 |
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1,055,461,542 |
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Brokeragelink accounts |
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11,040,114 |
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12,534,606 |
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Corporate debt investments |
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10,117,956 |
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12,163,005 |
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Asset and mortgage backed securities |
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21,014,503 |
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26,007,956 |
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U.S. government securities |
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2,987,820 |
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8,582,508 |
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Other fixed income investments |
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2,274,822 |
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2,040,283 |
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Investments in common collective trusts: |
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Fidelity U.S. Equity Index Commingled Pool |
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69,213,365 |
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116,859,596 |
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Mellon Rockwell EB Daily Fund |
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14,826,301 |
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Stable Value
Fund -
guaranteed investment contracts |
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535,052,749 |
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514,626,720 |
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Total investments at fair value |
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1,763,079,166 |
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2,654,591,927 |
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Accrued income |
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21,929 |
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1,063,715 |
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Accrued fees |
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(515,429 |
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(905,965 |
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Pending trades (net) |
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529,099 |
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(970,517 |
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Net assets at fair value |
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1,763,114,765 |
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2,653,779,160 |
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Adjustment from fair value to contract value
for fully benefit-responsive investment contracts |
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7,582,493 |
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(3,233,648 |
) |
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Net assets |
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$ |
1,770,697,258 |
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$ |
2,650,545,512 |
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The following is a description of the valuation methodologies used for the Master Trusts
investments measured at fair value. There have been no changes in the methodologies used in
December 31, 2008 and 2007.
Money market fund - Valued at cost, which approximates the fair value of the net asset value of
shares held at year end.
- 8 -
Common stocks and corporate debt investments - Valued at the closing price reported on the
active market on which the individual securities are traded.
U.S. government securities, 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.
Mutual funds and Brokeragelink accounts - Valued at the net asset value of shares held at year
end.
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 Trusts investments as of December 31, 2008:
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 stock |
|
|
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 |
|
U.S. government
securities |
|
|
2,987,820 |
|
|
|
|
|
|
|
|
|
|
|
2,987,820 |
|
Asset and mortgage
backed securities |
|
|
|
|
|
|
21,014,503 |
|
|
|
|
|
|
|
21,014,503 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 9 -
The table below sets forth a summary of changes in fair market value of the Master Trusts level
3 investments for the year ended December 31, 2008:
|
|
|
|
|
|
|
Common collective trust - |
|
|
|
Stable Value Fund |
|
|
|
|
|
|
Balance, beginning of year |
|
$ |
514,626,720 |
|
Change in adjustment to fair value from contract value |
|
|
(10,816,141 |
) |
Purchases, sales, issuances, and settlements, net |
|
|
31,242,170 |
|
|
|
|
|
Balance, end of year |
|
$ |
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 funds current fair value at the funds current yield to maturity for a period equal to the
funds duration. The crediting rate is the discount rate that equates that estimated future
fair value with the funds 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 3.93% and 4.75% at December 31, 2008 and 2007,
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, 2008 and
2007 was 4.57% and 4.74%, respectively.
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.
- 10 -
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 Plans 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 Plans 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 funds
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 funds
covered assets is equal to their contract value. A wrap issuer may also terminate a wrap
contract if the Trustees 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 funds 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 Plans interest in the Stable Value Fund was approximately 4% and 5% at December 31, 2008
and 2007, respectively.
The net investment income of the Master Trust for the years ended December 31, 2008 and 2007 is
summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
2007 |
|
|
|
|
|
|
|
|
|
|
Interest |
|
$ |
24,027,047 |
|
|
$ |
25,534,526 |
|
Dividends |
|
|
42,879,373 |
|
|
|
65,888,256 |
|
Net (depreciation) appreciation in fair value of investments: |
|
|
|
|
|
|
|
|
Common stocks |
|
|
(347,052,254 |
) |
|
|
109,393,501 |
|
Mutual funds |
|
|
(413,135,136 |
) |
|
|
23,257,042 |
|
Debt investments |
|
|
(6,057,328 |
) |
|
|
2,394,752 |
|
Investment in common collective trust - |
|
|
|
|
|
|
|
|
Fidelity U.S. Equity Index Commingled Pool |
|
|
(41,626,484 |
) |
|
|
7,632,374 |
|
Mellon Rockwell EB Daily Fund |
|
|
780,146 |
|
|
|
|
|
Brokeragelink accounts |
|
|
(5,414,903 |
) |
|
|
1,381,768 |
|
|
|
|
|
|
|
|
Net investment (loss) income |
|
$ |
(745,599,539 |
) |
|
$ |
235,482,219 |
|
|
|
|
|
|
|
|
The Plans interest in the Master Trust, as a percentage of net assets held by the Master
Trust, was approximately 2% at December 31, 2008 and 2007. 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 depreciation in 2008 and net appreciation in 2007.
The Master Trusts investments that exceeded 5% of net assets as of December 31, 2008 and 2007
are as follows:
|
|
|
|
|
|
|
|
|
Description of Investment |
|
2008 |
|
|
2007 |
|
|
|
|
|
|
|
|
|
|
Stable Value Fund |
|
$ |
535,052,749 |
|
|
$ |
514,626,720 |
|
Rockwell Automation, Inc. common stock |
|
|
169,637,079 |
|
|
|
345,824,056 |
|
Fidelity International Discovery Fund |
|
|
90,682,644 |
|
|
|
193,810,010 |
|
Fidelity Freedom 2020 Fund |
|
|
96,985,757 |
|
|
|
155,557,645 |
|
- 11 -
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, 2008 and 2007,
respectively, is as follows:
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
2007 |
|
|
Net Assets at Contract Value, Beginning of Year* |
|
$ |
6,461,099 |
|
|
$ |
6,867,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in net assets: |
|
|
|
|
|
|
|
|
Contributions |
|
|
321,943 |
|
|
|
377,672 |
|
Interest |
|
|
284,927 |
|
|
|
308,526 |
|
Benefits paid to participants |
|
|
(912,190 |
) |
|
|
(1,036,827 |
) |
Transfers |
|
|
101,370 |
|
|
|
(55,313 |
) |
|
|
|
|
|
|
|
Total changes in net assets at contract value |
|
|
(203,950 |
) |
|
|
(405,942 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets at Contract Value, End of Year* |
|
$ |
6,257,149 |
|
|
$ |
6,461,099 |
|
|
|
|
|
|
|
|
|
|
|
* |
|
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 year ended December 31, 2008 and 2007 is as follows:
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
2007 |
|
|
|
|
|
|
|
|
|
|
Net Assets, Beginning of Year* |
|
$ |
254,301 |
|
|
$ |
298,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in net assets: |
|
|
|
|
|
|
|
|
Dividends |
|
|
4,276 |
|
|
|
5,202 |
|
Net (depreciation) appreciation |
|
|
(138,011 |
) |
|
|
36,247 |
|
Benefits paid to participants |
|
|
(8,274 |
) |
|
|
(47,070 |
) |
Transfers |
|
|
27,631 |
|
|
|
(39,036 |
) |
|
|
|
|
|
|
|
Total changes in net assets |
|
|
(114,378 |
) |
|
|
(44,657 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Year* |
|
$ |
139,923 |
|
|
$ |
254,301 |
|
|
|
|
|
|
|
|
|
|
|
* |
|
These net assets are included in the Master Trust. |
- 12 -
5. |
|
TAX STATUS |
|
|
|
The Internal Revenue Service has determined and informed Rockwell Automation by letter
dated October 3, 2002, 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 Plans financial statements. |
|
6. |
|
PARTICIPANT WITHDRAWALS |
Effective November 7, 2007, retirees and former employees are limited to holding 15% of the
total fair value of their account in the Rockwell Automation Stock Fund. Participants have an
option to transfer funds out of the Rockwell Automation Stock Fund. Effective November 7,
2007, all balances exceeding the 15% limit were automatically transferred into a temporary
account (the Liquidation Fund), and later, in a phased approach, reallocated into a Fidelity
Freedom Fund based on participants date of birth. The reallocation into the Fidelity Freedom
Funds was completed on December 11, 2007 and totaled $202,047.
In November 2007, the Plan was amended to provide that any participant who is not an active
employee would be limited to holding 15% of his or her total fair market account balance under
the Plan in the Rockwell Automation Stock Fund. Each year, on or prior to June 30, any amount
that exceeds 15% of the total fair value will be automatically reallocated for participants who
were not active employees as of the preceding December 31. The amount in excess of the limit
will be liquidated and automatically transferred to a Fidelity Freedom Fund based on the
participants date of birth.
8. |
|
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, 2008 and 2007, the Master Trust held 5,261,696 and 5,014,850 shares,
respectively, of common stock of Rockwell Automation, the sponsoring employer, with a cost
basis of $64,648,703 and $40,352,482, respectively, and a fair value of $169,637,079 and
$345,824,056, respectively.
During 2008 and 2007, dividends on Rockwell Automation common stock paid to eligible plan
participants were $5,943,623 and $9,566,729, respectively.
- 13 -
9. |
|
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 2008 Form 5500 Schedule H, Part I is presented below.
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
2007 |
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits reported in
the financial statements |
|
$ |
33,966,943 |
|
|
$ |
42,044,381 |
|
Adjustment from contract value to fair value
for interest in Master Trust relating to
fully benefit-responsive investment contracts |
|
|
(327,831 |
) |
|
|
149,865 |
|
|
|
|
|
|
|
|
Net assets available for benefits reported on Form 5500 |
|
$ |
33,639,112 |
|
|
$ |
42,194,246 |
|
|
|
|
|
|
|
|
Reconciliation of interest in loss of Master Trust reported in the financial statements to the
net investment loss from master trust investment accounts reported on line 2(b)(8) of the 2008
Form 5500 Schedule H, Part II is presented below.
|
|
|
|
|
|
|
2008 |
|
Interest in loss of Master Trust reported in
the financial statements |
|
$ |
5,050,759 |
|
Adjustment from contract value to fair value
for interest in Master Trust relating to
fully benefit-responsive investment contracts |
|
|
477,696 |
|
|
|
|
|
Net investment loss from master trust investment accounts
as reported on Form 5500 |
|
$ |
5,528,455 |
|
|
|
|
|
* * * * * *
- 14 -
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, 2008
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 Trust Company |
|
|
Defined Contribution Master Trust |
|
|
$ |
37,238,302 |
|
|
$ |
33,266,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Various participants |
|
|
Participant Loans; rates ranging
between 5% and 9.25%, due 2009 to 2017 |
|
|
|
0 |
|
|
|
372,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (held at end of year) |
|
$ |
37,238,302 |
|
|
$ |
33,639,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 15 -
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 23, 2009
- 16 -
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 23, 2009, 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, 2008.
Baker Tilly Virchow Krause, LLP
Milwaukee, Wisconsin
June 23, 2009
- 17 -