UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended ~~June 30,~~December 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _______ to _______

Commission file number 1-12383

Rockwell Automation, Inc.

(Exact name of registrant as specified in its charter)


Delaware		25-1797617
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1201 South Second Street
Milwaukee,	Wisconsin	53204
(Address of principal executive offices)		(Zip Code)

+1 (414) 382-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock ($1.00 par value)

ROK

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

~~114,860,091~~114,592,022 shares of registrant’s Common Stock were outstanding on ~~June 30,~~December 31, 2023.

Table of Contents

INDEX

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ROCKWELL AUTOMATION, INC.

CONSOLIDATED BALANCE SHEET

(Unaudited)

(in millions, except per share amounts)


		June 30, 2023		September 30, 2022
	December 31, 2023						December 31, 2023	September 30, 2023
ASSETS	ASSETS					ASSETS
Current assets	Current assets
Cash and cash equivalents	Cash and cash equivalents	$	443.5	$	490.7
Cash and cash equivalents
Cash and cash equivalents

Receivables
Receivables
Receivables	Receivables	2,245.0		1,736.7
Inventories	Inventories	1,435.2		1,054.2
Other current assets	Other current assets	277.4		329.1
Total current assets	Total current assets	4,401.1		3,610.7
Property, net of accumulated depreciation of $1,798.6 and $1,702.3, respectively		654.1		586.5
Property, net of accumulated depreciation of $1,866.3 and $1,828.3, respectively
Operating lease right-of-use assets	Operating lease right-of-use assets	318.1		321.0
Goodwill	Goodwill	3,700.9		3,524.0
Other intangible assets, net	Other intangible assets, net	883.1		902.0
Deferred income taxes	Deferred income taxes	360.9		384.3
Long-term investments	Long-term investments	1,002.0		1,056.0
Other assets	Other assets	423.1		374.2
Total	Total	$	11,743.3	$	10,758.7
LIABILITIES AND SHAREOWNERS’ EQUITY	LIABILITIES AND SHAREOWNERS’ EQUITY					LIABILITIES AND SHAREOWNERS’ EQUITY
Current liabilities	Current liabilities
Short-term debt	Short-term debt	$	278.5	$	359.3
Short-term debt
Short-term debt
Current portion of long-term debt	Current portion of long-term debt	608.3		609.1

Accounts payable
Accounts payable
Accounts payable	Accounts payable	1,009.1		1,028.0
Compensation and benefits	Compensation and benefits	365.6		292.7
Contract liabilities	Contract liabilities	621.2		507.0
Customer returns, rebates and incentives	Customer returns, rebates and incentives	462.3		373.1
Other current liabilities	Other current liabilities	577.1		403.0
Total current liabilities	Total current liabilities	3,922.1		3,572.2
Long-term debt	Long-term debt	2,866.9		2,867.8
Retirement benefits	Retirement benefits	517.2		471.2
Operating lease liabilities	Operating lease liabilities	256.6		263.5
Other liabilities	Other liabilities	558.3		567.3
Commitments and contingent liabilities (Note 13)	Commitments and contingent liabilities (Note 13)					Commitments and contingent liabilities (Note 13)
Shareowners’ equity	Shareowners’ equity
Common stock ($1.00 par value, shares issued: 181.4)	Common stock ($1.00 par value, shares issued: 181.4)	181.4		181.4
Common stock ($1.00 par value, shares issued: 181.4)
Common stock ($1.00 par value, shares issued: 181.4)
Additional paid-in capital	Additional paid-in capital	2,078.2		2,007.1
Retained earnings	Retained earnings	8,952.2		8,411.8
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(725.5)		(917.5)
Common stock in treasury, at cost (shares held: 66.5 and 66.2, respectively)		(7,143.1)		(6,957.2)
Common stock in treasury, at cost (shares held: 66.8 and 66.6, respectively)
Shareowners’ equity attributable to Rockwell Automation, Inc.	Shareowners’ equity attributable to Rockwell Automation, Inc.	3,343.2		2,725.6
Noncontrolling interests	Noncontrolling interests	279.0		291.1
Total shareowners’ equity	Total shareowners’ equity	3,622.2		3,016.7
Total	Total	$	11,743.3	$	10,758.7

See Notes to Consolidated Financial Statements.

Table of Contents

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

(in millions, except per share amounts)




		Three Months Ended June 30,					Nine Months Ended June 30,				Three Months Ended December 31,
		2023		2022			2023		2022			2023	2022
Sales	Sales
Products and solutions	Products and solutions	$	2,031.8	$	1,768.4		$	5,891.4	$	5,063.6
Products and solutions
Products and solutions
Services	Services	206.9		200.3			603.7		570.5
		2,238.7		1,968.7			6,495.1		5,634.1
						2,052.1
Cost of sales	Cost of sales
Products and solutions	Products and solutions	(1,189.9)		(1,042.7)			(3,440.9)		(3,061.8)
Products and solutions
Products and solutions
Services	Services	(133.4)		(123.6)			(392.7)		(356.7)
		(1,323.3)		(1,166.3)			(3,833.6)		(3,418.5)
						(1,257.5)
Gross profit	Gross profit	915.4		802.4			2,661.5		2,215.6
Selling, general and administrative expenses	Selling, general and administrative expenses	(501.4)		(442.0)			(1,472.1)		(1,318.0)
Change in fair value of investments	Change in fair value of investments	85.7		(5.2)			289.3		(138.3)
Other income (expense) (Note 11)		6.5		19.8			(83.3)		(1.0)
Other income (Note 11)
Interest expense	Interest expense	(34.4)		(30.8)			(104.3)		(90.5)
Income before income taxes	Income before income taxes	471.8		344.2			1,291.1		667.8
Income tax provision (Note 14)	Income tax provision (Note 14)	(73.1)		(49.4)			(218.8)		(84.7)

Net income

Net income

Net income	Net income	398.7		294.8			1,072.3		583.1
Net loss attributable to noncontrolling interests	Net loss attributable to noncontrolling interests	(1.5)		(3.1)			(12.2)		(10.2)
Net income attributable to Rockwell Automation, Inc.	Net income attributable to Rockwell Automation, Inc.	$	400.2	$	297.9		$	1,084.5	$	593.3
Earnings per share:	Earnings per share:

Basic	Basic	$	3.47	$	2.56		$	9.41	$	5.10

Basic

Basic

Diluted

Diluted

Diluted	Diluted	$	3.45	$	2.55		$	9.34	$	5.06

Weighted average outstanding shares:	Weighted average outstanding shares:
Weighted average outstanding shares:
Weighted average outstanding shares:
Basic
Basic
Basic	Basic	114.8		116.0			114.8		116.1
Diluted	Diluted	115.6		116.5			115.6		116.9

See Notes to Consolidated Financial Statements.

Table of Contents

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

(in millions)






		Three Months Ended June 30,				Nine Months Ended June 30,
		2023		2022		2023		2022
Net income	Net income	$	398.7	$	294.8	$	1,072.3	$	583.1
Net income
Net income
Other comprehensive income (loss)	Other comprehensive income (loss)
Pension and other postretirement benefit plan adjustments (net of tax (expense) benefit of $(12.8), $22.3, $(22.6), and $(49.6))		41.3		(72.9)		72.0		131.4
Other comprehensive income (loss)
Other comprehensive income (loss)
Pension and other postretirement benefit plan adjustments (net of tax benefit of $0.0 and $0.4)
Pension and other postretirement benefit plan adjustments (net of tax benefit of $0.0 and $0.4)
Pension and other postretirement benefit plan adjustments (net of tax benefit of $0.0 and $0.4)
Currency translation adjustments	Currency translation adjustments	35.5		(62.0)		146.6		(91.3)
Net change in cash flow hedges (net of tax benefit (expense) of $2.1, $(4.0), $10.6, and $(7.2))		(5.7)		10.3		(26.5)		19.6
Currency translation adjustments
Currency translation adjustments
Net change in cash flow hedges (net of tax benefit of $9.0 and $8.9)
Net change in cash flow hedges (net of tax benefit of $9.0 and $8.9)
Net change in cash flow hedges (net of tax benefit of $9.0 and $8.9)

Other comprehensive income (loss)		71.1		(124.6)		192.1		59.7
Other comprehensive income

Other comprehensive income

Other comprehensive income
Comprehensive income
Comprehensive income
Comprehensive income	Comprehensive income	469.8		170.2		1,264.4		642.8
Comprehensive loss attributable to noncontrolling interests	Comprehensive loss attributable to noncontrolling interests	(1.0)		(3.3)		(12.1)		(10.1)
Comprehensive loss attributable to noncontrolling interests
Comprehensive loss attributable to noncontrolling interests
Comprehensive income attributable to Rockwell Automation, Inc.	Comprehensive income attributable to Rockwell Automation, Inc.	$	470.8	$	173.5	$	1,276.5	$	652.9
Comprehensive income attributable to Rockwell Automation, Inc.
Comprehensive income attributable to Rockwell Automation, Inc.

See Notes to Consolidated Financial Statements.

Table of Contents

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(in millions)


		Nine Months Ended June 30,				Three Months Ended December 31,
		2023		2022		2023	2022

Operating activities:	Operating activities:
Operating activities:
Operating activities:
Net income
Net income
Net income	Net income	$	1,072.3	$	583.1
Adjustments to arrive at cash provided by operating activities	Adjustments to arrive at cash provided by operating activities
Depreciation
Depreciation
Depreciation	Depreciation	95.2		93.6
Amortization of intangible assets	Amortization of intangible assets	86.8		84.6
Change in fair value of investments	Change in fair value of investments	(289.3)		138.3
Share-based compensation expense	Share-based compensation expense	65.0		48.8
Retirement benefit expense		118.5		61.7
Retirement benefit expense (income)
Net loss on disposition of property	Net loss on disposition of property	0.8		0.4

Pension contributions	Pension contributions	(18.5)		(23.1)

Pension contributions

Pension contributions
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments	Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments
Receivables
Receivables
Receivables	Receivables	(415.2)		(326.1)
Inventories	Inventories	(309.9)		(206.2)
Accounts payable	Accounts payable	(74.6)		118.5
Contract liabilities	Contract liabilities	119.8		96.8
Compensation and benefits	Compensation and benefits	74.9		(114.9)
Income taxes	Income taxes	(49.2)		(202.6)
Other assets and liabilities	Other assets and liabilities	58.5		70.8
Cash provided by operating activities	Cash provided by operating activities	535.1		423.7
Investing activities:	Investing activities:
Capital expenditures	Capital expenditures	(97.3)		(100.3)
Capital expenditures
Capital expenditures
Acquisition of businesses, net of cash acquired	Acquisition of businesses, net of cash acquired	(168.0)		(16.5)
Purchases of investments		(5.2)		(48.5)

Proceeds from sale of investments
Proceeds from sale of investments
Proceeds from sale of investments	Proceeds from sale of investments	355.2		66.0

Other investing activities	Other investing activities	3.9		0.1
Cash provided by (used for) investing activities		88.6		(99.2)

Other investing activities

Other investing activities
Cash used for investing activities
Financing activities:	Financing activities:
Net (repayment) issuance of short-term debt		(74.1)		301.8
Net issuance of short-term debt
Net issuance of short-term debt
Net issuance of short-term debt

Repayment of short-term debt	Repayment of short-term debt	(18.8)		(210.0)
Repayment of short-term debt
Repayment of short-term debt

Cash dividends
Cash dividends
Cash dividends	Cash dividends	(406.9)		(390.4)
Purchases of treasury stock	Purchases of treasury stock	(257.1)		(218.5)
Proceeds from the exercise of stock options	Proceeds from the exercise of stock options	75.4		46.1
Other financing activities	Other financing activities	(27.7)		(7.5)
Cash used for financing activities		(709.2)		(478.5)
Cash provided by (used for) financing activities
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	29.7		(25.3)
Decrease in cash, cash equivalents, and restricted cash	Decrease in cash, cash equivalents, and restricted cash	(55.8)		(179.3)
Cash, cash equivalents, and restricted cash at beginning of period	Cash, cash equivalents, and restricted cash at beginning of period	507.9		679.4
Cash, cash equivalents, and restricted cash at end of period	Cash, cash equivalents, and restricted cash at end of period	$	452.1	$	500.1
Components of cash, cash equivalents, and restricted cash	Components of cash, cash equivalents, and restricted cash
Cash and cash equivalents	Cash and cash equivalents	$	443.5	$	482.9
Cash and cash equivalents
Cash and cash equivalents
Restricted cash, current (Other current assets)	Restricted cash, current (Other current assets)	8.6		8.6
Restricted cash, noncurrent (Other assets)		—		8.6

Total cash, cash equivalents, and restricted cash	Total cash, cash equivalents, and restricted cash	$	452.1	$	500.1
Total cash, cash equivalents, and restricted cash
Total cash, cash equivalents, and restricted cash

See Notes to Consolidated Financial Statements.

Table of Contents

CONSOLIDATED STATEMENT OF SHAREOWNERS’ EQUITY

(Unaudited)

(in millions, except per share amounts)


			Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Common stock in treasury, at cost		Total attributable to Rockwell Automation, Inc.		Noncontrolling interests		Total shareowners' equity
Balance at March 31, 2023			$	181.4	$	2,049.0	$	8,824.2	$	(796.1)	$	(7,103.0)	$	3,155.5	$	280.0	$	3,435.5
		Common stock																	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Common stock in treasury, at cost	Total attributable to Rockwell Automation, Inc.	Noncontrolling interests	Total shareowners' equity
Balance at September 30, 2023
Net income (loss)	Net income (loss)		—		—		400.2		—		—		400.2		(1.5)		398.7
Other comprehensive income	Other comprehensive income		—		—		—		70.6		—		70.6		0.5		71.1
Common stock issued (including share-based compensation impact)	Common stock issued (including share-based compensation impact)		—		29.2		—		—		22.2		51.4		—		51.4
Share repurchases	Share repurchases		—		—		—		—		(62.3)		(62.3)		—		(62.3)
Cash dividends declared (1)	Cash dividends declared (1)		—		—		(272.2)		—		—		(272.2)		—		(272.2)

Balance at June 30, 2023			$	181.4	$	2,078.2	$	8,952.2	$	(725.5)	$	(7,143.1)	$	3,343.2	$	279.0	$	3,622.2
Balance at December 31, 2023

Balance at December 31, 2023

Balance at December 31, 2023


			Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Common stock in treasury, at cost		Total attributable to Rockwell Automation, Inc.		Noncontrolling interests		Total shareowners' equity
Balance at March 31, 2022			$	181.4	$	1,967.3	$	8,035.1	$	(833.1)	$	(6,718.5)	$	2,632.2	$	297.7	$	2,929.9
		Common stock																	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Common stock in treasury, at cost	Total attributable to Rockwell Automation, Inc.	Noncontrolling interests	Total shareowners' equity
Balance at September 30, 2022
Net income (loss)	Net income (loss)		—		—		297.9		—		—		297.9		(3.1)		294.8
Other comprehensive loss			—		—		—		(124.4)		—		(124.4)		(0.2)		(124.6)
Other comprehensive income
Common stock issued (including share-based compensation impact)	Common stock issued (including share-based compensation impact)		—		18.6		—		—		3.2		21.8		—		21.8
Share repurchases	Share repurchases		—		—		—		—		(176.1)		(176.1)		—		(176.1)
Cash dividends declared (1)	Cash dividends declared (1)		—		—		(260.2)		—		—		(260.2)		—		(260.2)

Balance at June 30, 2022			$	181.4	$	1,985.9	$	8,072.8	$	(957.5)	$	(6,891.4)	$	2,391.2	$	294.4	$	2,685.6
Balance at December 31, 2022

Balance at December 31, 2022

Balance at December 31, 2022

(1) Cash dividends were ~~$2.36~~$1.25 per share and ~~$2.24~~$1.18 per share in the three months ended ~~June 30,~~December 31, 2023 and 2022, respectively.

~~Table of Contents~~

Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Common stock in treasury, at cost Total attributable to Rockwell Automation, Inc. Noncontrolling interests Total shareowners' equity
Balance at September 30, 2022 $ 181.4 $ 2,007.1 $ 8,411.8 $ (917.5) $ (6,957.2) $ 2,725.6 $ 291.1 $ 3,016.7
Net income (loss) — — 1,084.5 — — 1,084.5 (12.2) 1,072.3
Other comprehensive income — — — 192.0 — 192.0 0.1 192.1
Common stock issued (including share-based compensation impact) — 71.1 — — 70.9 142.0 — 142.0
Share repurchases — — — — (256.8) (256.8) — (256.8)
Cash dividends declared (1)
— — (544.1) — — (544.1) — (544.1)
Balance at June 30, 2023 $ 181.4 $ 2,078.2 $ 8,952.2 $ (725.5) $ (7,143.1) $ 3,343.2 $ 279.0 $ 3,622.2

Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Common stock in treasury, at cost Total attributable to Rockwell Automation, Inc. Noncontrolling interests Total shareowners' equity
Balance at September 30, 2021 $ 181.4 $ 1,933.6 $ 8,000.4 $ (1,017.1) $ (6,708.7) $ 2,389.6 $ 304.5 $ 2,694.1
Net income (loss) — — 593.3 — — 593.3 (10.2) 583.1
Other comprehensive income — — — 59.6 — 59.6 0.1 59.7
Common stock issued (including share-based compensation impact) — 52.3 — — 42.8 95.1 — 95.1
Share repurchases — — — — (225.5) (225.5) — (225.5)
Cash dividends declared (1)
— — (520.9) — — (520.9) — (520.9)
Balance at June 30, 2022 $ 181.4 $ 1,985.9 $ 8,072.8 $ (957.5) $ (6,891.4) $ 2,391.2 $ 294.4 $ 2,685.6

~~(1)~~ ~~Cash dividends were $4.72 per share and $4.48 per share in the~~ ~~nine~~ ~~months ended June 30, 2023 and 2022, respectively.~~

~~See Notes to Consolidated Financial Statements.~~

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation and Accounting Policies

In the opinion of management of Rockwell Automation, Inc. ("Rockwell Automation" or "the Company"), the unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly the financial position, results of operations, and cash flows for the periods presented and, except as otherwise indicated, such adjustments consist only of those of a normal, recurring nature. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended September 30, ~~2022.~~2023. The results of operations for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, are not necessarily indicative of the results for the full year. All date references to years and quarters herein refer to our fiscal year and fiscal quarter, unless otherwise stated.

Receivables

We record an allowance for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Receivables are recorded net of an allowance for doubtful accounts of ~~$17.4~~$19.3 million at ~~June 30,~~December 31, 2023, and ~~$13.1~~$16.8 million at September 30, ~~2022. In addition, receivables are recorded net of an allowance for certain customer returns, rebates, and incentives of $14.6 million at June 30, 2023, and $13.9 million at September 30, 2022.~~2023. The changes to our allowance for doubtful accounts during the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and 2022, were not material and primarily consisted of current-period provisions, write-offs charged against the allowance, recoveries collected, and foreign currency translation.

Earnings Per Share

The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts):


		Three Months Ended June 30,				Nine Months Ended June 30,
				Three Months Ended December 31,
				Three Months Ended December 31,
				Three Months Ended December 31,
		2023		2022		2023		2022		2023	2022
Net income attributable to Rockwell Automation, Inc.	Net income attributable to Rockwell Automation, Inc.	$	400.2	$	297.9	$	1,084.5	$	593.3
Less: Allocation to participating securities	Less: Allocation to participating securities	(1.7)		(1.0)		(4.6)		(1.9)
Net income available to common shareowners	Net income available to common shareowners	$	398.5	$	296.9	$	1,079.9	$	591.4
Basic weighted average outstanding shares	Basic weighted average outstanding shares	114.8		116.0		114.8		116.1
Effect of dilutive securities	Effect of dilutive securities
Stock options
Stock options
Stock options	Stock options	0.7		0.5		0.7		0.8
Performance shares	Performance shares	0.1		—		0.1		—
Diluted weighted average outstanding shares	Diluted weighted average outstanding shares	115.6		116.5		115.6		116.9
Earnings per share:	Earnings per share:

Basic	Basic	$	3.47	$	2.56	$	9.41	$	5.10

Basic

Basic

Diluted	Diluted	$	3.45	$	2.55	$	9.34	$	5.06

Diluted

Diluted

For the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 ~~there were 0.4 million~~ and 0.5 million shares, respectively, related to share-based compensation awards that were excluded from the diluted EPS calculation because they were antidilutive. For the three and nine months ended June 30, 2022, there were ~~0.6~~0.5 million and ~~0.4~~0.6 million shares, respectively, related to share-based compensation awards that were excluded from the diluted EPS calculation because they were antidilutive.

Non-Cash Investing and Financing Activities

Capital expenditures of ~~$42.5~~$20.5 million and ~~$15.5~~$32.9 million were accrued within Accounts payable and Other current liabilities at ~~June 30,~~December 31, 2023 and 2022, respectively. At ~~June 30,~~December 31, 2023 and 2022, respectively, there were ~~$0.8~~$1.1 million and ~~$8.8~~$0.8 million of outstanding common stock share repurchases recorded in Accounts payable that did not settle until the next quarter. These non-cash investing and financing activities have been excluded from cash used for capital expenditures and treasury stock purchases in the Consolidated Statement of Cash Flows.

109

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Supplier Financing Arrangements

The Company maintains agreements with third-party financial institutions that offer voluntary supply chain financing (SCF) programs to suppliers. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between suppliers and the Company. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. The Company agrees on commercial terms for the goods and services procured from suppliers, including prices, quantities, and payment terms, regardless of whether the supplier elects to participate in the SCF programs. A supplier’s voluntary participation in the SCF programs has no bearing on the Company's payment terms and the Company has no economic interest in a supplier’s decision to participate in the SCF programs. The Company agrees to pay participating third-party financial institutions the stated amount of confirmed invoices from suppliers on the original maturity dates of the invoices. Amounts outstanding related to SCF programs are included in Accounts payable in the Consolidated Balance Sheet and in changes in Accounts payable on the Consolidated Statement of Cash Flows. Accounts payable included approximately $117.5 million and $126.7 million related to these agreements as of December 31, 2023, and September 30, 2023, respectively. The impact of these programs is not material to the Company's overall liquidity.

Recently Adopted Accounting Pronouncements

In ~~October 2021,~~September 2022, the Financial Accounting Standards Board (FASB) issued a new standard that requires companies to apply Accounting Standards Codification (ASC) ~~606~~405-50 to ~~recognize and measure contract assets and contract liabilities in a business combination.~~disclose supplier finance program obligations. We ~~retroactively~~ adopted the new standard as of October 1, ~~2021.~~2023. The adoption of this standard did not have a material impact on our Consolidated Financial Statements.

Recently Issued Accounting Pronouncements

In ~~September 2022,~~November 2023, the FASB issued ~~a new standard,~~Accounting Standards Update (ASU) 2023-08, which requires expanded interim and annual disclosures of segment information regularly provided to the ~~buyer in a supplier finance program to disclose information about~~chief operating decision maker (CODM), the ~~key terms~~title and position of the ~~program, outstanding confirmed amounts as~~CODM, an explanation of how the ~~end of~~CODM uses the ~~period, a rollforward of such amounts during each annual period,~~information in assessing segment performance and deciding how to allocate resources, and an amount for other segment items by reportable segment and a description of ~~where in the financial statements outstanding amounts are presented.~~its composition. We will expand our disclosures in our fiscal 2025 Annual Report on Form 10-K when ~~we adopt this~~the standard becomes effective for us.

In December 2023, the FASB issued ASU 2023-09, which requires expanded annual disclosures to the income tax rate reconciliation and the amount of income taxes paid. We will expand our disclosures in our fiscal 2026 Annual Report on Form 10-K when the ~~first quarter of 2024.~~standard becomes effective for us.

We do not expect any other recently issued accounting pronouncements to have a material impact on our Consolidated Financial Statements and related disclosures.

2. Revenue Recognition

~~Nature of Products and Services~~

Substantially all of our revenue is from contracts with customers. We recognize revenue as promised products are transferred to, or services are performed for, customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products and services. Our offerings consist of industrial automation and information products, solutions, and services.

Our products include hardware, software, and configured-to-order products. Our solutions include custom-engineered systems and software. Our services include customer technical support and repair, asset management and optimization consulting, and training. Also included in our services is a portion of revenue related to spare parts that are managed within our services offering.

Our operations are comprised of the Intelligent Devices segment, the Software & Control segment, and the Lifecycle Services segment. Revenue from the Intelligent Devices and Software & Control segments is predominantly comprised of product sales, which are recognized at a point in time. The Software & Control segment also contains revenue from software products, which may be recognized over time if certain criteria are met. Revenue from the Lifecycle Services segment is predominantly comprised of solutions and services, which are primarily recognized over time. See Note 15 for more information.

In most countries, we sell primarily through independent distributors in conjunction with our direct sales force. We sell large systems and service offerings principally through our direct sales force, though opportunities are sometimes identified through distributors.

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ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Unfulfilled Performance Obligations

As of ~~June 30,~~December 31, 2023, we expect to recognize approximately ~~$1,126~~$1,121 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $716 million from our remaining performance obligations over the next 12 months with the remaining balance recognized thereafter.

We have applied the practical expedient to exclude the value of remaining performance obligations for (i) contracts with an original term of one year or less and (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. The amounts above also do not include the impact of contract renewal options that are unexercised as of ~~June 30,~~December 31, 2023.

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~~ROCKWELL AUTOMATION, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(Unaudited)~~

Disaggregation of Revenue

The following ~~tables present~~table presents our revenue disaggregation by geographic region for our three operating segments (in millions). We attribute sales to the geographic regions based on the country of destination.

Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
Intelligent Devices Software & Control Lifecycle Services Total Intelligent Devices Software & Control Lifecycle Services Total
North America $ 548.5 $ 460.9 $ 251.5 $ 1,260.9 $ 549.6 $ 437.8 $ 252.5 $ 1,239.9
Europe, Middle East and Africa 220.4 137.3 136.7 494.4 162.5 72.3 117.8 352.6
Asia Pacific 133.7 113.6 96.2 343.5 106.4 61.3 79.1 246.8
Latin America 65.5 38.8 35.6 139.9 59.8 35.5 34.1 129.4
Total Company Sales $ 968.1 $ 750.6 $ 520.0 $ 2,238.7 $ 878.3 $ 606.9 $ 483.5 $ 1,968.7


		Nine Months Ended June 30, 2023								Nine Months Ended June 30, 2022								Three Months Ended December 31, 2023				Three Months Ended December 31, 2022
		Intelligent Devices		Software & Control		Lifecycle Services		Total		Intelligent Devices		Software & Control		Lifecycle Services		Total
	Intelligent Devices																		Intelligent Devices	Software & Control	Lifecycle Services		Total	Intelligent Devices	Software & Control	Lifecycle Services	Total
North America	North America	$	1,714.6	$	1,297.0	$	738.8	$	3,750.4	$	1,604.4	$	1,104.9	$	702.9	$	3,412.2
Europe, Middle East and Africa		608.2		371.7		373.8		1,353.7		467.7		246.1		342.4		1,056.2
Europe, Middle East, and Africa
Asia Pacific	Asia Pacific	401.7		281.6		290.9		974.2		334.3		213.1		244.5		791.9
Latin America	Latin America	203.0		114.7		99.1		416.8		180.8		91.6		101.4		373.8
Total Company Sales	Total Company Sales	$	2,927.5	$	2,065.0	$	1,502.6	$	6,495.1	$	2,587.2	$	1,655.7	$	1,391.2	$	5,634.1

Contract Liabilities

Contract liabilities primarily relate to consideration received in advance of performance under the contract.

Below is a summary of our Contract liabilities balance, the portion not expected to be recognized within twelve months is included within Other liabilities in the Consolidated Balance Sheet (in millions):


		June 30, 2023		June 30, 2022
	December 31, 2023					December 31, 2023	December 31, 2022
Balance as of beginning of year	Balance as of beginning of year	$	541.3	$	462.5
Balance as of end of period	Balance as of end of period	672.5		549.5

The most significant changes in our Contract liabilities balance during both the ~~nine~~three months ended ~~June 30,~~December 31, 2023 and 2022, were due to amounts billed, partially offset by ~~revenue recognized on amounts billed during the period and~~ revenue recognized that was included in the Contract liabilities balance at the beginning of the period and revenue recognized on amounts billed during the period.

In the ~~nine~~three months ended ~~June 30,~~December 31, 2023, we recognized revenue of approximately ~~$362.7~~$237.8 million that was included in the Contract liabilities balance at September 30, 2023. In the three months ended December 31, 2022, we recognized revenue of approximately $200.9 million that was included in the Contract liabilities balance at September 30, 2022. ~~In the nine months ended June 30, 2022, we recognized revenue of approximately $296.8 million that was included in the Contract liabilities balance at September 30, 2021.~~ We did not have a material amount of revenue recognized in the ~~nine~~three months ended ~~June 30,~~December 31, 2023 and 2022, from performance obligations satisfied or partially satisfied in previous periods.

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ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

3. Share-Based Compensation

We recognized ~~$23.4~~$24.2 million and ~~$65.0~~$18.4 million of pre-tax share-based compensation expense during the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 ~~respectively. We recognized $17.6 million~~ and ~~$48.8 million of pre-tax share-based compensation expense during the three and nine months ended June 30,~~ 2022, respectively. Our annual grant of share-based compensation takes place during first quarter of each year. The number of shares granted to employees and non-employee directors and the weighted average fair value per share during the periods presented were (in thousands, except per share amounts):


		Nine Months Ended June 30,						Three Months Ended December 31,
		2023			2022			2023			2022
		Grants	Wtd. Avg. Share Fair Value		Grants	Wtd. Avg. Share Fair Value
	Grants								Grants	Wtd. Avg. Share Fair Value		Grants	Wtd. Avg. Share Fair Value
Stock options	Stock options	233	$	77.62	164	$	87.68
Performance shares	Performance shares	66	340.77		37	481.28
Restricted stock and restricted stock units		236	262.24		214	307.31
Restricted stock units
Unrestricted stock	Unrestricted stock	7	261.72		3	345.00

4. Inventories

Inventories consist of (in millions):


		June 30, 2023		September 30, 2022
	December 31, 2023					December 31, 2023	September 30, 2023
Finished goods	Finished goods	$	507.5	$	325.0
Work in process	Work in process	373.8		317.3
Raw materials	Raw materials	553.9		411.9
Inventories	Inventories	$	1,435.2	$	1,054.2

5. Acquisitions

~~2023~~2024 Acquisitions

In October ~~2022,~~2023, we acquired ~~CUBIC,~~Clearpath Robotics, Inc. (Clearpath), a company that specializes in ~~modular systems~~autonomous robotics for ~~the construction of electrical panels,~~industrial applications, headquartered in ~~Bronderslev, Denmark.~~Ontario, Canada. We recorded assets acquired and liabilities assumed in connection with this acquisition based on their estimated fair values as of the acquisition date of October ~~31, 2022.~~2, 2023. The preliminary aggregate purchase price allocation is as follows (in millions):


	Purchase Price Allocation

Receivables	$	~~20.2~~8.2
~~Inventories~~Inventory	~~17.7~~22.1
~~Property~~	~~27.5~~
Goodwill	~~66.3~~267.0
~~Other intangible~~Intangible assets	~~36.4~~313.1
All other assets	~~9.2~~10.8
Total assets acquired	~~177.3~~621.2
Less: ~~Total liabilities~~Liabilities assumed	~~(43.5)~~(12.7)


Net assets acquired ~~excluding cash~~	$	~~133.8~~608.5

	Purchase Consideration
Cash consideration, net of cash acquired	$	565.5
Contingent consideration	43.0
Total purchase consideration, net of cash acquired	$	~~133.8~~608.5

We assigned the full amount of goodwill and all other net assets acquired related to this acquisition to our Intelligent Devices segment. The goodwill recorded represents intangible assets that do not qualify for separate recognition. We do not expect the goodwill to be deductible for tax purposes.

1312

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ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Intangible assets identified include $269.6 million of technology, $41.6 million of trademarks, and $1.9 million of customer relationships. We assigned the full amount of goodwill and all other assets acquired to our Intelligent Devices segment. The goodwill recorded represents intangible assets that do not qualify for separate recognition. This goodwill arises because the purchase price for Clearpath reflects a number of factors including the future earnings and cash flow potential for the business and resulting synergies from the business portfolio and industry expertise. We do not expect the goodwill to be deductible for tax purposes. The intangible assets were valued using an income approach, specifically the relief from royalty method and multi-period excess earnings method. The relief from royalty method calculates value based on hypothetical payments that would be saved by owning an asset rather than licensing it. The multi-period excess earnings method is the isolation of cash flows from a single intangible asset and measures fair value by discounting them to present value. These values are considered level 3 measurements under the U.S. GAAP fair value hierarchy. The key assumption requiring the use of judgement in the valuation of the technology asset was the obsolescence factor, where we estimated a phase out over 12 years; other assumptions included forecasted revenue growth rates and margin and the discount rate. The key assumption requiring the use of judgement in the valuation of the trademarks asset was the weighted average royalty rate of 2.05 percent; other assumptions included forecasted revenue growth rates and the discount rate.

The purchase price includes up to $50 million in contingent consideration dependent on future Clearpath revenue performance. We developed various risk-based scenarios and a probability outcome model to measure the fair value of the contingent consideration, which is considered a level 3 measurement under the U.S. GAAP fair value hierarchy. At the acquisition date and December 31, 2023, we determined the fair value of the contingent consideration to be $43.0 million, of which $17.5 million is recorded in Other current liabilities and $25.5 million in Other liabilities on the Consolidated Balance Sheet.

In ~~February~~November 2023, we acquired ~~Knowledge Lens,~~Verve Industrial Protection (Verve), a cybersecurity software and services ~~and solutions provider headquartered in Bengaluru, India.~~company that focuses specifically on industrial environments. We recorded assets acquired and liabilities assumed in connection with this acquisition based on their estimated fair values as of the acquisition date of ~~February 28,~~November 1, 2023. The preliminary aggregate purchase price allocation is as follows (in millions):


	Purchase Price Allocation

Receivables	$	~~3.6~~8.0


Goodwill	~~35.2~~133.0
~~Other intangible~~Intangible assets	~~17.7~~47.0
All other assets	~~3.5~~1.4
Total assets acquired	~~60.0~~189.4
Less: ~~Total liabilities~~Liabilities assumed	~~(8.0)~~(6.2)


Net assets acquired ~~excluding cash~~	$	~~52.0~~183.2

	Purchase Consideration


Total purchase consideration, net of cash acquired	$	~~52.0~~183.2

We assigned the full amount of goodwill ~~and all other net assets acquired related to this acquisition~~ to our Lifecycle Services segment. We expect the goodwill to be deductible for tax purposes. The goodwill recorded represents intangible assets that do not qualify for separate recognition. ~~We do not expect the goodwill to be deductible for tax purposes.~~

The ~~allocation~~allocations of the purchase ~~price~~prices to identifiable assets above is based on the preliminary valuations performed to determine the fair value of the net assets as of the acquisition date. The measurement period for the valuation of net assets acquired ends as soon as information on the facts and circumstances that existed as of the acquisition date becomes available, but not to exceed 12 months following the acquisition date. Adjustments in purchase price allocations may require a change in the amounts allocated to net assets acquired during the periods in which the adjustments are determined.

~~2022 Acquisitions~~

In November 2021, we acquired AVATA, a services provider for supply chain management, enterprise resource planning, and enterprise performance management solutions. We assigned the full amount of goodwill related to this acquisition to our Lifecycle Services segment.

In March 2022, we, through our Sensia affiliate, acquired Swinton Technology, a provider of metering supervisory systems and measurement expertise in the Oil & Gas industry. We assigned the full amount of goodwill related to this acquisition to our Lifecycle Services segment.

Pro forma consolidated sales for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and 2022, were ~~$2.2~~$2.1 billion and ~~$6.5 billion, respectively, and the impact on earnings was not material. Pro forma consolidated sales for the three and nine months ended June 30, 2022, were~~ $2.0 ~~billion and $5.7~~ billion, respectively, and the impact on earnings was not material. The preceding pro forma consolidated financial results of operations are as if the preceding ~~2023 and 2022~~2024 acquisitions occurred on October 1, ~~2021.~~2022. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the transaction occurred as of that time.

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ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Total sales from all of the above 2024 acquisitions in the three months ended December 31, 2023 were $17.2 million. Total acquisition-related costs from all of the above 2024 acquisitions in the three months ended December 31, 2023, were not material.

2023 Acquisitions

In October 2022, we acquired CUBIC, a company that specializes in modular systems for the construction of electrical panels, headquartered in Bronderslev, Denmark. We assigned the full amount of goodwill related to this acquisition to our Intelligent Devices segment.

In February 2023, we acquired Knowledge Lens, a services and solutions provider headquartered in Bengaluru, India. We assigned the full amount of goodwill related to this acquisition to our Lifecycle Services segment.

We recorded assets acquired and liabilities assumed in connection with these acquisitions based on their estimated fair values as of the acquisition dates of October 31, 2022, and February 28, 2023, respectively. The aggregate purchase price allocation is as follows (in millions):


	Purchase Price Allocation

Receivables	$	23.8
Inventories	17.7
Property	27.5
Goodwill	111.3
Other intangible assets	54.1
All other assets	21.0
Total assets acquired	255.4
Less: Liabilities assumed	(12.6)
Less: Deferred income taxes	(56.6)

Net assets acquired, excluding cash	$	186.2

	Purchase Consideration
Total purchase consideration, net of cash acquired	$	186.2

Pro forma consolidated sales for the three months ended December 31, 2022, were $2.0 billion, and the impact on earnings was not material. The preceding pro forma consolidated financial results of operations are as if the preceding 2023 acquisitions occurred on October 1, 2022. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the transaction occurred as of that time.

Total sales from all of the above 2023 acquisitions in the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023 and 2022, were ~~$23.8~~$26.8 million and ~~$59.4~~$13.7 million, respectively. ~~Total sales from all of the above 2022 acquisitions in the three and nine months ended June 30, 2022, were not material.~~ Total acquisition-related costs from all of the above 2023 ~~and 2022~~ acquisitions in the three ~~and nine~~ months ended ~~June 30, 2023 and~~December 31, 2022, were not material.

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ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

6. Goodwill and Other Intangible Assets

Changes in the carrying amount of Goodwill for the ~~nine~~three months ended ~~June 30,~~December 31, 2023, were (in millions):

Intelligent Devices Software & Control Lifecycle Services Total
Balance as of September 30, 2022 $ 503.0 $ 2,398.7 $ 622.3 $ 3,524.0
Acquisition of businesses 66.3 — 35.2 101.5
Translation and other 26.9 31.6 16.9 75.4
Balance as of June 30, 2023 $ 596.2 $ 2,430.3 $ 674.4 $ 3,700.9


	Intelligent Devices		Software & Control		Lifecycle Services		Total
Balance as of September 30, 2023	$	595.8	$	2,420.1	$	513.3	$	3,529.2
Acquisition of businesses	267.0		—		133.0		400.0
Translation	16.9		13.5		7.1		37.5
Balance as of December 31, 2023	$	879.7	$	2,433.6	$	653.4	$	3,966.7

Gross carrying value of goodwill	879.7		2,433.6		810.9		4,124.2
Accumulated impairment losses	—		—		(157.5)		(157.5)
Goodwill	$	879.7	$	2,433.6	$	653.4	$	3,966.7

We ~~performed~~perform our annual evaluation of goodwill and indefinite life intangible assets for impairment during the second quarter of ~~fiscal 2023 and concluded~~each year, or more frequently, if events or circumstances change that ~~these assets are~~would more likely than not ~~impaired. For our annual evaluation, we performed qualitative tests for our Intelligent Devices, Software & Control, and Lifecycle Services (excluding Sensia)~~reduce the fair value of a reporting ~~units and a quantitative test for our Sensia reporting unit.~~unit below its carrying value. We ~~also~~ assessed the changes in events and circumstances ~~subsequent to our annual test~~during the first quarter of 2024 and concluded that no triggering events, which would require interim quantitative testing, occurred.

Other intangible assets consist of (in millions):


		June 30, 2023						December 31, 2023
		Carrying Amount		Accumulated Amortization		Net
	Carrying Amount								Carrying Amount	Accumulated Amortization	Net
Amortized intangible assets	Amortized intangible assets
Software products
Software products
Software products	Software products	$	101.1	$	65.7	$	35.4
Customer relationships	Customer relationships	614.2		136.7		477.5
Technology	Technology	426.1		160.3		265.8
Trademarks	Trademarks	87.1		27.0		60.1
Other	Other	6.8		6.2		0.6
Total amortized intangible assets	Total amortized intangible assets	1,235.3		395.9		839.4
Allen-Bradley® trademark not subject to amortization	Allen-Bradley® trademark not subject to amortization	43.7		—		43.7
Other intangible assets	Other intangible assets	$	1,279.0	$	395.9	$	883.1


		September 30, 2022						September 30, 2023
		Carrying Amount		Accumulated Amortization		Net
	Carrying Amount								Carrying Amount	Accumulated Amortization	Net
Amortized intangible assets	Amortized intangible assets
Software products
Software products
Software products	Software products	$	97.6	$	57.9	$	39.7
Customer relationships	Customer relationships	582.7		107.2		475.5
Technology	Technology	410.8		119.3		291.5
Trademarks	Trademarks	70.4		19.4		51.0
Other	Other	6.4		5.8		0.6
Total amortized intangible assets	Total amortized intangible assets	1,167.9		309.6		858.3
Allen-Bradley® trademark not subject to amortization	Allen-Bradley® trademark not subject to amortization	43.7		—		43.7
Other intangible assets	Other intangible assets	$	1,211.6	$	309.6	$	902.0

Estimated total amortization expense for all amortized intangible assets is ~~$115.4 million in 2023, $113.7~~$153.5 million in 2024, ~~$110.5~~$150.0 million in 2025, ~~$109.3~~$148.7 million in 2026, ~~and $102.3~~$140.6 million in ~~2027.~~2027, and $127.8 million in 2028.

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ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

7. Short-Term and Long-Term Debt

Our Short-term debt as of ~~June 30,~~December 31, 2023, ~~and September 30, 2022,~~ includes commercial paper borrowings of ~~$183.0~~$407.0 million, ~~and $317.0 million, respectively,~~ with a weighted average interest ~~rates~~rate of ~~5.10~~5.41 percent, and ~~3.03 percent, respectively, and~~a weighted average maturity ~~periods~~period of ~~9 days and 22 days, respectively.~~13 days. We had no commercial paper borrowings as of September 30, 2023. In December 2022, Sensia entered into an unsecured $75.0 million line of credit. As of ~~June~~December 31, 2023, and September 30, 2023, included in Short-term debt was ~~$65.0~~$70.0 million borrowed against the line of credit with an interest rate of ~~6.14 percent.~~6.25 percent and 6.29 percent, respectively. Also included in Short-term debt as of ~~June 30,~~December 31, 2023, and September 30, ~~2022,~~2023, is $23.5 million ~~and $42.3 million, respectively,~~ of interest-bearing loans from Schlumberger (SLB) to Sensia due December ~~29, 2023.~~31, 2024.

The following table presents the carrying amounts and estimated fair values of Long-term debt in the Consolidated Balance Sheet (in millions):


		June 30, 2023				September 30, 2022				December 31, 2023		September 30, 2023
		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value	Fair Value		Carrying Value	Fair Value
Current portion of long-term debt	Current portion of long-term debt	$	608.3	$	605.0	$	609.1	$	589.1
Long-term debt	Long-term debt	2,866.9		2,585.8		2,867.8		2,485.4

We base the fair value of Long-term debt upon quoted market prices for the same or similar issues and therefore consider this a level 2 fair value measurement. The fair value of Long-term debt considers the terms of the debt excluding the impact of derivative and hedging activity. Refer to Note 9 for further information regarding levels in the fair value hierarchy. The carrying value of our Short-term debt approximates fair value.

8. Other Current Liabilities

Other current liabilities consist of (in millions):


		June 30, 2023		September 30, 2022
	December 31, 2023					December 31, 2023	September 30, 2023
Unrealized losses on foreign exchange contracts	Unrealized losses on foreign exchange contracts	$	22.0	$	31.2
Product warranty obligations	Product warranty obligations	17.0		16.5
Taxes other than income taxes	Taxes other than income taxes	54.0		65.6
Accrued interest	Accrued interest	39.8		18.1
Dividends payable		137.0		0.6

Income taxes payable
Income taxes payable
Income taxes payable	Income taxes payable	130.0		81.1
Operating lease liabilities	Operating lease liabilities	83.2		83.3
Other	Other	94.1		106.6
Other current liabilities	Other current liabilities	$	577.1	$	403.0

9. Investments

Our investments consist of (in millions):


		December 31, 2023					December 31, 2023	September 30, 2023
Fixed income securities
			June 30, 2023		September 30, 2022
Fixed income securities			$	0.6	$	12.6
Equity securities (level 1)			863.9		928.8
Equity securities (other)
Equity securities (other)
Equity securities (other)	Equity securities (other)		81.4		76.4
Other	Other		56.7		50.8
Total investments	Total investments		1,002.6		1,068.6
Less: Short-term investments (1)	Less: Short-term investments (1)		(0.6)		(12.6)
Long-term investments	Long-term investments		$	1,002.0	$	1,056.0

(1) Short-term investments are included in Other current assets in the Consolidated Balance Sheet.

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Equity Securities

Equity securities (level 1) consist of 6,070,905 and 8,879,717 shares of PTC Inc. ("PTC") common stock (the "PTC Shares") at June 30, 2023, and September 30, 2022, respectively. The PTC Shares are classified as level 1 in the fair value hierarchy, as described below, and are recognized at fair value in the Consolidated Balance Sheet using the most recent closing price of PTC common stock quoted on Nasdaq.

Equity securities (other) consist of various securities that do not have a readily determinable fair value, which we account for using the measurement alternative under U.S. GAAP. These securities are recorded at the investment cost, less impairment, plus or minus observable price changes (in orderly transactions) of an identical or similar investment of the same issuer in the Consolidated Balance Sheet. Observable price changes are classified as level 2 in the fair value hierarchy, as described below. The carrying values at ~~June 30,~~December 31, 2023, and September 30, ~~2022,~~2023, include cumulative upward adjustments from observed price changes of ~~$17.2 million.~~$20.0 million and $17.5 million, respectively.

We record gains and losses on investments within the Change in fair value of investments line in the Consolidated Statement of Operations. The gains and losses on investments we recorded for the following periods were (in millions):


		Three Months Ended December 31,
		Three Months Ended December 31,
		Three Months Ended December 31,

		Three Months Ended June 30,				Nine Months Ended June 30,
		2023		2022		2023		2022
Net gain (loss) on equity securities (level 1)		$	86.4	$	(8.4)	$	290.4	$	(136.0)
Net gain on equity securities (level 1)
Net gain on equity securities (level 1)
Net gain on equity securities (level 1)
Net gain on equity securities (other)	Net gain on equity securities (other)	—		3.2		—		11.9
Equity method loss on Other investments		(0.7)		—		(1.1)		(14.2)
Net gain on equity securities (other)
Net gain on equity securities (other)
Equity method gain (loss) on Other investments
Equity method gain (loss) on Other investments
Equity method gain (loss) on Other investments
Change in fair value of investments
Change in fair value of investments
Change in fair value of investments	Change in fair value of investments	85.7		(5.2)		289.3		(138.3)

Total net realized gain on equity securities	Total net realized gain on equity securities	36.9		12.7		89.8		12.9
Total net unrealized gain (loss) on equity securities		$	49.5	$	(17.9)	$	200.6	$	(137.0)

Total net realized gain on equity securities

Total net realized gain on equity securities
Total net unrealized gain on equity securities
Total net unrealized gain on equity securities
Total net unrealized gain on equity securities

Net gain on equity securities (level 1) in the prior year consisted of the change in fair value and gain on sale of shares of PTC Inc. (PTC) common stock (PTC Shares). As of September 30, 2023, all PTC Shares have been sold.

U.S. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. U.S. GAAP also classifies the inputs used to measure fair value into the following hierarchy:


Level 1:						Quoted prices in active markets for identical assets or liabilities.


Level 2:						Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.


Level 3:						Unobservable inputs for the asset or liability.

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 we believe our 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. We did not have any transfers between levels of fair value measurements during the period presented.

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

10. Retirement Benefits

The components of net periodic pension and postretirement benefit cost (credit) were (in millions):

Pension Benefits
Three Months Ended
June 30, Nine Months Ended
June 30,
2023 2022 2023 2022
Service cost $ 9.4 $ 15.4 $ 30.6 $ 56.1
Interest cost 35.3 34.5 114.0 99.3
Expected return on plan assets (44.0) (56.4) (147.0) (175.1)
Amortization of prior service cost 0.1 — 0.1 0.8
Amortization of net actuarial loss (gain) 0.2 10.4 (1.8) 55.0
Settlement and curtailment charges (benefit) 2.2 (0.7) 120.1 24.2
Net periodic pension benefit cost $ 3.2 $ 3.2 $ 116.0 $ 60.3


		Pension Benefits
	Three Months Ended December 31,
		2023		2022
Service cost		$	9.3	$	10.6
Interest cost		36.6		39.2
Expected return on plan assets		(42.2)		(51.3)

Amortization of net actuarial gain		(0.3)		(1.0)

Net periodic pension benefit cost (credit)		$	3.4	$	(2.5)




		Other Postretirement Benefits									Other Postretirement Benefits
		Three Months Ended June 30,				Nine Months Ended June 30,				Three Months Ended December 31,
		2023		2022		2023		2022				2023	2022
Service cost	Service cost	$	0.2	$	0.2	$	0.4	$	0.6
Interest cost	Interest cost	0.6		0.3		1.7		0.9
Amortization of prior service credit		—		(0.2)		—		(0.6)

Amortization of net actuarial loss
Amortization of net actuarial loss
Amortization of net actuarial loss	Amortization of net actuarial loss	0.1		0.2		0.4		0.5
Net periodic postretirement benefit cost	Net periodic postretirement benefit cost	$	0.9	$	0.5	$	2.5	$	1.4

The service cost component is included in Cost of sales and Selling, general and administrative expenses in the Consolidated Statement of Operations. All other components are included in Other income ~~(expense)~~ in the Consolidated Statement of Operations.

In March and June 2023, we remeasured our U.S. pension plan assets and liabilities in accordance with U.S. GAAP settlement accounting rules. For the three and nine months ended June 30, 2023, we recognized settlement expense of $2.2 million and $120.1 million, respectively. Settlement accounting was required due to the amount of lump-sum payments made by the U.S. pension plan to retirees, current employees electing an in-service distribution, and other separated employees. Remeasurement of our U.S. pension plan assets and liabilities increased our net benefit obligation by $25.3 million in 2023. The discount rate used for the remeasurement as of June 30, 2023, was 5.45 percent compared to 5.65 percent at our September 30, 2022, annual measurement date.

11. Other Income ~~(Expense)~~

The components of Other income ~~(expense)~~ were (in millions):


		Three Months Ended June 30,					Nine Months Ended June 30,
		2023		2022			2023		2022
				Three Months Ended December 31,
				Three Months Ended December 31,
				Three Months Ended December 31,
						2023					2023	2022
Interest income	Interest income	$	1.5	$	0.6		$	4.1	$	1.6
Royalty income	Royalty income	3.4		3.1			9.3		8.6
Legacy product liability and environmental (charges) benefit		(4.8)		0.8			(10.7)		(6.6)
Non-operating pension and postretirement credit (cost)		5.5		11.9			(87.5)		(5.0)
Legacy product liability and environmental charges
Non-operating pension and postretirement benefit credit

Other	Other	0.9		3.4			1.5		0.4
Other income (expense)		$	6.5	$	19.8		$	(83.3)	$	(1.0)
Other
Other
Other income

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ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

12. Accumulated Other Comprehensive Loss

Changes in Accumulated other comprehensive loss attributable to Rockwell Automation by component for the following periods were (in millions):

Three Months Ended June 30, 2023 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized losses on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax
Balance as of March 31, 2023 $ (417.2) $ (353.4) $ (25.5) $ (796.1)
Other comprehensive income (loss) before reclassifications 38.6 35.6 (0.4) 73.8
Amounts reclassified from accumulated other comprehensive loss 2.1 — (5.3) (3.2)
Other comprehensive income (loss) 40.7 35.6 (5.7) 70.6
Balance as of June 30, 2023 $ (376.5) $ (317.8) $ (31.2) $ (725.5)
Nine Months Ended June 30, 2023 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized losses on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax
Balance as of September 30, 2022 $ (447.8) $ (465.0) $ (4.7) $ (917.5)
Other comprehensive (loss) income before reclassifications (18.8) 147.2 (6.3) 122.1
Amounts reclassified from accumulated other comprehensive loss 90.1 — (20.2) 69.9
Other comprehensive income (loss) 71.3 147.2 (26.5) 192.0
Balance as of June 30, 2023 $ (376.5) $ (317.8) $ (31.2) $ (725.5)



Three Months Ended December 31, 2023	Pension and other postretirement benefit plan adjustments, net of tax		Accumulated currency translation adjustments, net of tax		Net unrealized losses on cash flow hedges, net of tax		Total accumulated other comprehensive loss, net of tax
Balance as of September 30, 2023	$	(407.1)	$	(364.9)	$	(18.1)	$	(790.1)
Other comprehensive income (loss) before reclassifications	—		84.1		(17.7)		66.4
Amounts reclassified from accumulated other comprehensive loss	0.1		—		(6.2)		(6.1)
Other comprehensive income (loss)	0.1		84.1		(23.9)		60.3
Balance as of December 31, 2023	$	(407.0)	$	(280.8)	$	(42.0)	$	(729.8)

Three Months Ended June 30, 2022 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized losses on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax
Balance as of March 31, 2022 $ (489.8) $ (309.7) $ (33.6) $ (833.1)
Other comprehensive (loss) income before reclassifications (81.0) (61.7) 15.5 (127.2)
Amounts reclassified from accumulated other comprehensive loss 8.0 — (5.2) 2.8
Other comprehensive (loss) income (73.0) (61.7) 10.3 (124.4)
Balance as of June 30, 2022 $ (562.8) $ (371.4) $ (23.3) $ (957.5)



Three Months Ended December 31, 2022	Pension and other postretirement benefit plan adjustments, net of tax		Accumulated currency translation adjustments, net of tax		Net unrealized losses on cash flow hedges, net of tax		Total accumulated other comprehensive loss, net of tax
Balance as of September 30, 2022	$	(447.8)	$	(465.0)	$	(4.7)	$	(917.5)
Other comprehensive income (loss) before reclassifications	—		85.9		(12.0)		73.9
Amounts reclassified from accumulated other comprehensive loss	(0.5)		—		(9.1)		(9.6)
Other comprehensive (loss) income	(0.5)		85.9		(21.1)		64.3
Balance as of December 31, 2022	$	(448.3)	$	(379.1)	$	(25.8)	$	(853.2)

Nine Months Ended June 30, 2022 Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized losses on cash flow hedges, net of tax Total accumulated other comprehensive loss, net of tax
Balance at September 30, 2021 $ (694.1) $ (280.1) $ (42.9) $ (1,017.1)
Other comprehensive income (loss) before reclassifications 70.7 (91.3) 24.2 3.6
Amounts reclassified from accumulated other comprehensive loss 60.6 — (4.6) 56.0
Other comprehensive income (loss) 131.3 (91.3) 19.6 59.6
Balance as of June 30, 2022 $ (562.8) $ (371.4) $ (23.3) $ (957.5)

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The reclassifications out of Accumulated other comprehensive loss in the Consolidated Statement of Operations were (in millions):


		Three Months Ended June 30,				Nine Months Ended June 30,				Affected Line in the Consolidated Statement of Operations
		Three Months Ended December 31,
		Three Months Ended December 31,
		Three Months Ended December 31,																				Affected Line in the Consolidated Statement of Operations
		2023		2022		2023		2022			Affected Line in the Consolidated Statement of Operations
Pension and other postretirement benefit plan adjustments (1)
Amortization of prior service cost (credit)		$	0.1	$	(0.2)	$	0.1	$	0.2	Other income (expense)
Pension and other postretirement benefit plan adjustments (1)
Pension and other postretirement benefit plan adjustments (1)

Amortization of net actuarial loss (gain)	Amortization of net actuarial loss (gain)	0.3		10.6		(1.4)		55.5		Other income (expense)
Settlement and curtailment charges (benefit)		2.2		(0.7)		120.1		24.2		Other income (expense)
Amortization of net actuarial loss (gain)
Amortization of net actuarial loss (gain)												$	0.1			$	(0.9)						Other income
		2.6		9.7		118.8		79.9		Income before income taxes
		0.1
		0.1
		0.1														(0.9)							Income before income taxes
	—														—				0.4						Income tax provision
	$													$	0.1			$	(0.5)					Net income attributable to Rockwell Automation, Inc.
		(0.5)		(1.7)		(28.7)		(19.3)		Income tax provision
		$	2.1	$	8.0	$	90.1	$	60.6	Net income attributable to Rockwell Automation, Inc.

Net unrealized (gains) losses on cash flow hedges
Net unrealized (gains) losses on cash flow hedges
Net unrealized (gains) losses on cash flow hedges
Forward exchange contracts	Forward exchange contracts	$	(1.9)	$	(0.5)	$	(4.6)	$	(0.2)	Sales	Forward exchange contracts	$	(1.3)		$	$	(1.0)			Sales						Sales
Forward exchange contracts	Forward exchange contracts	(6.3)		(7.9)		(25.7)		(9.5)		Cost of sales	Forward exchange contracts	(8.1)			(12.9)		(12.9)				Cost of sales						Cost of sales
Forward exchange contracts	Forward exchange contracts	—		0.3		(0.1)		0.4		Selling, general and administrative expenses	Forward exchange contracts	—			0.3		0.3				Selling, general and administrative expenses						Selling, general and administrative expenses
Treasury locks related to 2019 and 2021 debt issuances	Treasury locks related to 2019 and 2021 debt issuances	0.9		0.9		2.7		2.7		Interest expense	Treasury locks related to 2019 and 2021 debt issuances	0.9			0.9		0.9				Interest expense						Interest expense
		(7.3)		(7.2)		(27.7)		(6.6)		Income before income taxes
		2.0		2.0		7.5		2.0		Income tax provision
	(8.5)														(8.5)				(12.7)						Income before income taxes
	2.3														2.3				3.6						Income tax provision
	$													$	(6.2)			$	(9.1)					Net income attributable to Rockwell Automation, Inc.
		$	(5.3)	$	(5.2)	$	(20.2)	$	(4.6)	Net income attributable to Rockwell Automation, Inc.
Total reclassifications	Total reclassifications	$	(3.2)	$	2.8	$	69.9	$	56.0	Net income attributable to Rockwell Automation, Inc.
Total reclassifications
Total reclassifications												$	(6.1)			$	(9.6)						Net income attributable to Rockwell Automation, Inc.

(1) These components are included in the computation of net periodic benefit cost. See Note 10 for further information.

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

13. Commitments and Contingent Liabilities

Various lawsuits, claims, and proceedings have been or may be instituted or asserted against us relating to the conduct of our business, including those pertaining to product liability, environmental, safety and health, intellectual property, employment, and contract matters. Although the outcome of litigation cannot be predicted with certainty and some lawsuits, claims, or proceedings may be disposed of unfavorably to us, we believe the disposition of matters that are pending or have been asserted will not have a material effect on our business, financial condition, or results of operations. The following outlines additional background for obligations associated with asbestos, divested businesses, and intellectual property.

We (including our subsidiaries) have been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos that was used in certain components of our products many years ago, including products from divested businesses for which we have agreed to defend and indemnify claims. Currently there are lawsuits that name us as defendants, together with hundreds of other companies. But in all cases, for those claimants who do show that they worked with our products or products of divested businesses for which we are responsible, we nevertheless believe we have meritorious defenses, in substantial part due to the integrity of the products, the encapsulated nature of any asbestos-containing components, and the lack of any impairing medical condition caused by our products. We defend those cases vigorously. Historically, we have been dismissed from the vast majority of these claims with no payment to claimants.

Additionally, we have maintained insurance coverage that includes indemnity and defense costs, over and above self-insured retentions, for many of these claims. We believe these arrangements will provide substantial coverage for future defense and indemnity costs for these asbestos claims for many years into the future. The uncertainties of asbestos claim litigation make it difficult to predict accurately the ultimate outcome of asbestos claims. That uncertainty is increased by the possibility of adverse rulings or new legislation affecting asbestos claim litigation or the settlement process. Subject to these uncertainties and based on our experience defending asbestos claims, we do not believe these lawsuits will have a material effect on our business, financial condition, or results of operations.

We have, from time to time, divested certain of our businesses. In connection with these divestitures, certain lawsuits, claims, and proceedings may be instituted or asserted against us related to the period that we owned the businesses, either because we agreed to retain certain liabilities related to these periods or because such liabilities fall upon us by operation of law. In some instances, the divested business has assumed the liabilities; however, it is possible that we might be responsible to satisfy those liabilities if the divested business is unable to do so. We do not believe these liabilities will have a material effect on our business, financial condition, or results of operations.

In many countries we provide a limited intellectual property indemnity as part of our terms and conditions of sale and at times in other contracts with third parties. As of ~~June 30,~~December 31, 2023, we were not aware of any material indemnification claims that were probable or reasonably possible of an unfavorable outcome. Historically, claims that have been made under the indemnification agreements have not had a material impact on our business, financial condition, or results of operations; however, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our business, financial condition, or results of operations in a particular period.

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

14. Income Taxes

At the end of each interim period, we estimate a base effective tax rate that we expect for the full year based on our most recent forecast of pre-tax income, permanent book and tax differences, and global tax planning strategies. We use this base rate to provide for income taxes on a year-to-date basis, excluding the effect of significant unusual items and items that are reported net of their related tax effects in the period in which they occur.

The effective tax rate was ~~15.5~~18.1 percent ~~and 16.9 percent in~~for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, ~~respectively,~~ compared to ~~14.4~~19.1 percent ~~and 12.7 percent in~~for the three ~~and nine~~ months ended ~~June 30, 2022, respectively.~~December 31, 2022. The effective tax rate was lower than the U.S. statutory rate of 21 percent infor the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, ~~primarily due to non-U.S. tax rates~~ and ~~other discrete benefits. The effective tax rate was lower than the U.S. statutory rate of 21 percent in the three and nine months ended June 30,~~December 31, 2022, primarily due to ~~non-U.S. tax rates and other discrete benefits.~~the geographical mix of pre-tax income.

An income tax liability of $175.3 ~~million and $233.7~~ million related to the U.S. transition tax under the Tax Cuts and Jobs Act of 2017 (the "Tax Act") that is payable greater than 12 months after ~~June 30,~~December 31, 2023, and September 30, ~~2022,~~2023, is recorded in Other liabilities in the Consolidated Balance Sheet.

Unrecognized Tax Benefits

The amount of gross unrecognized tax benefits was ~~$7.9 million and $3.9~~$10.8 million at ~~June~~December 31, 2023, and $9.8 million at September 30, 2023, ~~and September 30, 2022, respectively,~~ of which the entire amount would reduce our effective tax rate if recognized.

Accrued interest and penalties related to unrecognized tax benefits were $1.0 million at December 31, 2023, and $0.9 million ~~and $1.4 million~~ at ~~June 30, 2023, and~~ September 30, ~~2022, respectively.~~2023. We recognize interest and penalties related to unrecognized tax benefits in the income tax provision.

We believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to ~~$2.4~~$2.3 million in the next 12 months as a result of the resolution of tax matters in various global jurisdictions and the lapses of statutes of limitations. If all of the unrecognized tax benefits were recognized, the net reduction to our income tax provision, including the recognition of interest and penalties and offsetting tax assets, could be up to $3.1 million.

We conduct business globally and are routinely audited by the various tax jurisdictions in which we operate. We are no longer subject to U.S. federal income tax examinations for years before 2018, state and local income tax examinations for years before 2014, and foreign income tax examinations for years before 2008.

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

15. Business Segment Information

Sales and operating results of our reportable segments were (in millions):




		Three Months Ended June 30,				Nine Months Ended June 30,				Three Months Ended December 31,
		2023		2022		2023		2022			2023	2022
Sales	Sales
Intelligent Devices
Intelligent Devices
Intelligent Devices	Intelligent Devices	$	968.1	$	878.3	$	2,927.5	$	2,587.2
Software & Control	Software & Control	750.6		606.9		2,065.0		1,655.7
Lifecycle Services	Lifecycle Services	520.0		483.5		1,502.6		1,391.2
Total	Total	$	2,238.7	$	1,968.7	$	6,495.1	$	5,634.1
Segment operating earnings	Segment operating earnings
Intelligent Devices	Intelligent Devices	$	163.1	$	173.2	$	579.4	$	504.4
Intelligent Devices
Intelligent Devices
Software & Control	Software & Control	261.5		190.6		678.1		439.7
Lifecycle Services	Lifecycle Services	48.4		45.4		100.6		103.6
Total	Total	473.0		409.2		1,358.1		1,047.7
Purchase accounting depreciation and amortization	Purchase accounting depreciation and amortization	(27.2)		(25.9)		(79.8)		(78.1)
Corporate and other	Corporate and other	(32.3)		(15.6)		(88.8)		(69.6)
Non-operating pension and postretirement credit (cost)		5.5		11.9		(87.5)		(5.0)
Non-operating pension and postretirement benefit credit
Change in fair value of investments	Change in fair value of investments	85.7		(5.2)		289.3		(138.3)

Interest expense, net	Interest expense, net	(32.9)		(30.2)		(100.2)		(88.9)
Interest expense, net
Interest expense, net
Income before income taxes	Income before income taxes	$	471.8	$	344.2	$	1,291.1	$	667.8

Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before purchase accounting depreciation and amortization, corporate and other, non-operating pension and postretirement benefit credit, ~~(cost),~~ change in fair value of investments, interest expense, net, and income tax provision. Depending on the product, intersegment sales within a single legal entity are either at cost or cost plus a mark-up, which does not necessarily represent a market price. Sales between legal entities are at an appropriate transfer price. We allocate costs related to shared segment operating activities to the segments consistent with the methodology used by management to assess segment performance.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareowners of

Rockwell Automation, Inc.

Milwaukee, Wisconsin

Results of Review of Interim Financial Information

We have reviewed the accompanying consolidated balance sheet of Rockwell Automation, Inc. and subsidiaries (the "Company") as of ~~June 30,~~December 31, 2023, the related consolidated statements of operations, comprehensive income, cash flows and shareowners’ equity for the three-month ~~and nine-month~~ periods ended ~~June 30, 2023 and 2022, and of cash flows for the nine-month periods ended June 30,~~December 31, 2023, and 2022, and the related notes (collectively referred to as the "interim financial information").Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of September 30, ~~2022,~~2023, and the related consolidated statements of operations, comprehensive income, cash flows and shareowners’ equity for the year then ended (not presented herein); and in our report dated November 8, ~~2022,~~2023, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of September 30, ~~2022,~~2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

~~August 1, 2023~~January 31, 2024

Table of Contents

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains statements (including certain projections and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Words such as “believe”, “estimate”, “project”, “plan”, “expect”, “anticipate”, “will”, “intend”, and other similar expressions may identify forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, many of which are beyond our control, including but not limited to:

•~~the availability and price of components and materials;~~

•macroeconomic factors, including inflation, global and regional business conditions (including adverse impacts in certain markets, such as Oil & Gas), commodity prices, currency exchange rates, the cyclical nature of our customers’ capital spending, and sovereign debt concerns;

•the availability and price of components and materials;

•the severity and duration of disruptions to our business due to pandemics, ~~(including the COVID-19 pandemic),~~ natural disasters (including those as a result of climate change), acts of war, ~~(including the Russia and Ukraine conflict),~~ strikes, terrorism, social unrest or other causes, ~~including the impacts of the COVID-19 pandemic and efforts to manage it on the global economy,~~ liquidity and financial markets, demand for our hardware and software products, solutions, and services, our supply chain, our work force, our liquidity and the value of the assets we own;

•~~our ability to attract, develop, and retain qualified personnel;~~

•the availability, effectiveness, and security of our information technology systems;

•our ability to attract, develop, and retain qualified employees;

•our ability to manage and mitigate the risk related to security vulnerabilities and breaches of our hardware and software products, solutions, and services;

•the successful integration and management of strategic transactions and achievement of the expected benefits of these transactions;

•laws, regulations, and governmental policies affecting our activities in the countries where we do business, including those related to tariffs, taxation, trade controls (including sanctions placed on Russia), cybersecurity, and climate change;

•the successful development of advanced technologies and demand for and market acceptance of new and existing hardware and software products;

•our ability to manage and mitigate the risks associated with our solutions and services businesses;

•the successful execution of our cost productivity initiatives;

•competitive hardware and software products, solutions, and services, pricing pressures, and our ability to provide high quality products, solutions, and services;

•the availability and cost of capital;

•disruptions to our distribution channels or the failure of distributors to develop and maintain capabilities to sell our products;

•intellectual property infringement claims by others and the ability to protect our intellectual property;

•the uncertainty of claims by taxing authorities in the various jurisdictions where we do business;

•the uncertainties of litigation, including liabilities related to the safety and security of the hardware and software products, solutions, and services we sell;

•~~risks associated with our investment in common stock of PTC Inc., including the potential for volatility in our reported quarterly earnings associated with changes in the market value of such stock;~~

•our ability to manage costs related to employee retirement and health care benefits; and

•other risks and uncertainties, including but not limited to those detailed from time to time in our Securities and Exchange Commission (SEC) filings.

These forward-looking statements reflect our beliefs as of the date of filing this report. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. See Item 1A. Risk Factors, of our Annual Report on Form 10-K for the year ended September 30, ~~2022,~~2023, for more information.

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Non-GAAP Measures

The following discussion includes organic sales, total segment operating earnings and margin, adjusted income, adjusted EPS, adjusted effective tax rate, and free cash flow, which are non-GAAP measures. See Supplemental Sales Information for a reconciliation of reported sales to organic sales and a discussion of why we believe this non-GAAP measure is useful to investors. See Summary of Results of Operations for a reconciliation of Income before income taxes to total segment operating earnings and margin and a discussion of why we believe these non-GAAP measures are useful to investors. See Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for a reconciliation of Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate to adjusted income, adjusted EPS, and adjusted effective tax rate, respectively, and a discussion of why we believe these non-GAAP measures are useful to investors. See Financial Condition for a reconciliation of Cash provided by operating activities to free cash flow and a discussion of why we believe this non-GAAP measure is useful to investors.

Overview

Rockwell Automation, Inc. is ~~a global leader in~~the world’s largest company dedicated to industrial automation and digital transformation. ~~We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable.~~ Overall demand for our hardware and software products, solutions, and services is driven by:

•investments in manufacturing, including new facilities or production lines, upgrades, modifications and expansions of existing ~~facilities or production lines, and new~~ facilities or production lines;

•investments in basic materials production capacity, which may be related to commodity pricing levels;

•our customers’ needs for faster time to market, agility to address evolving consumer preferences, operational productivity, asset management and reliability, and business resilience, including security and enterprise risk management;

•our customers’ needs to continuously improve quality, safety, and sustainability;

•industry factors that include our customers’ new product introductions, demand for our customers’ products or services, and the regulatory and competitive environments in which our customers operate;

•levels of global industrial production and capacity utilization;

•regional factors that include local political, social, regulatory, and economic circumstances; and

•the spending patterns of our customers due to their annual budgeting processes and their working schedules.

Long-term Strategy

Our strategy is to expand human possibility. Our vision is to create the future of industrial operations. As the world’s largest company dedicated to industrial automation and digital transformation, our strategy is to bring ~~The~~the Connected Enterprise~~(R)~~® to ~~life by integrating control~~life. We understand and ~~information across~~simplify our customers’ complex production challenges and deliver the ~~enterprise.~~most valued solutions that combine technology and industry expertise. As a result, we make our customers more resilient, agile, and sustainable, creating more ways to win. We deliver ~~customer outcomes~~value by ~~combining advanced~~helping our customers optimize production, build resilience, empower people, become more sustainable, and accelerate transformation.

Rockwell Automation stands at the intersection of the technological and societal trends that are shaping the future of industrial ~~automation with~~operations. We see converging megatrends including digitization and artificial intelligence, energy transition and sustainability, shifting demographics, and an increased need for resiliency.

Our long-term profitable growth framework outlines how we will deliver accelerated growth while we continue to transform our company to meet stakeholder expectations over the ~~latest information technology. Our growth and performance strategy seeks to:~~longer term:

•achieve ~~organic sales~~faster secular growth in ~~excess~~traditional markets due to customer needs for resiliency (including cybersecurity), agility, sustainability, and mitigating impacts of ~~the automation market by expanding our served market and strengthening our competitive differentiation;~~labor shortages;

•grow share and create new ways to win through technology differentiation, industry focus, go to market ~~share of our core platforms;~~acceleration, expanded offerings and new markets;

•~~drive double digit growth in information solutions and connected services;~~

•~~drive double digit~~accelerate growth in annual recurring ~~revenue (ARR);~~revenue;

•~~acquire companies that serve as catalysts to organic~~add 1% growth ~~by increasing our information solutions and connected services offerings and capabilities, advanced material handling, and expanding our global presence;~~

•~~enhance our market access by building our channel capability and partner network;~~

•~~deploy human and financial resources to strengthen our technology leadership and our intellectual capital business model;~~

•~~continuously improve quality and customer experience;~~from acquisitions annually; and

•~~drive annual cost productivity.~~

~~By implementing the above strategy, we seek to achieve our long-term~~deliver profitable growth within a disciplined financial goals, including above-market organic sales growth, increasing the portion of our total revenue that is recurring in nature, EPS growth above sales growth, return on invested capital in excess of 20 percent, and free cash flow equal to about 100 percent of adjusted income. We expect acquisitions to add a percentage point or more per year to long-term sales growth.

Our customers face the challenge of remaining globally cost competitive and automation can help them achieve their productivity and sustainability objectives. Our value proposition is to help our customers reduce time to market, lower total cost of ownership, improve asset utilization, and manage enterprise risks.framework.

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U.S. Economic Trends

In the ~~third~~first quarter of ~~2023,~~2024, sales in the U.S. accounted for over half of our total sales. The various indicators we use to gauge the direction and momentum of our served U.S. markets include:

•The Industrial Production (IP) Index, published by the Federal Reserve, which measures the real output of manufacturing, mining, and electric and gas utilities. The IP Index is expressed as a percentage of real output in a base year, currently 2017. ~~Historically, there has been a meaningful correlation between the changes in the IP Index and the level of automation investment made by our U.S. customers in their manufacturing base.~~

•The Manufacturing Purchasing Managers’ Index (PMI), published by the Institute for Supply Management (ISM), which indicates the current and near-term state of manufacturing activity in the U.S. According to the ISM, a PMI measure above 50 indicates that the U.S. manufacturing economy is generally expanding while a measure below 50 indicates that it is generally contracting.

The table below depicts trends in these indicators since the quarter ended September ~~2021.~~2022. These figures are as of ~~August 1, 2023,~~January 31, 2024, and are subject to revision by the issuing organizations. The IP ~~Index decreased~~index declined in ~~two of~~ the ~~three months of the third~~first quarter of ~~2023 but the quarter as a whole was up slightly~~fiscal 2024 versus the ~~second~~fourth quarter of fiscal 2023. Manufacturing PMI results ~~continued to be~~remained soft in the ~~third~~first quarter of ~~2023. The Manufacturing PMI reading in the month of June was the lowest of the quarter and was the eighth consecutive month below 50.~~2024.

IP Index PMI
2023 quarter ended:
June 2023 99.9 46.0
March 2023 99.5 46.3
December 2022 99.6 48.4
2022 quarter ended:
September 2022 100.4 50.9
June 2022 100.4 53.0
March 2022 99.7 57.0
December 2021 99.0 58.8
2021 quarter ended:
September 2021 97.8 60.5


	IP Index	PMI
Fiscal 2024 quarter ended:
December 2023	99.0	47.4
Fiscal 2023 quarter ended:
September 2023	99.6	49.0
June 2023	99.9	46.0
March 2023	99.5	46.3
December 2022	99.6	48.4
Fiscal 2022 quarter ended:
September 2022	100.4	50.9

Inflation in the U.S. has also had an impact on our input costs and pricing. We used the Producer Price Index (PPI), published by the Bureau of Labor Statistics, which measures the average change over time in the selling prices received by domestic producers for their output. PPI for June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, increased 0.1 percent, 2.7 percent, 6.4 percent, 8.5 percent, 11.2 percent, 11.7 percent, and 10.0 percent, respectively, compared togrowth has remained in the ~~same period~~low single digits during the first quarter, consistent with most of ~~the prior year. These figures are as of August 1, 2023, and are subject to revision by the issuing organization.~~2023. Producer prices remain elevated, however, year over year increases continued to decelerate following last years' surge in prices.

Non-U.S. Economic Trends

In the ~~third~~first quarter of ~~2023,~~2024, sales to customers outside the U.S. accounted for less than half of our total sales. These customers include both indigenous companies and multinational companies with a global presence. In addition to the global factors previously mentioned in the Overview section, international demand, particularly in emerging markets, has historically been driven by the strength of the industrial economy in each region, investments in infrastructure, and expanding consumer markets. We use changes in key countries' gross domestic product (GDP), IP, and PMI as indicators of the growth opportunities in each region where we do business.

Industrial output was mostly higher outside the U.S. ~~was mixed~~ in the ~~third~~first quarter of ~~2023 after broad growth in~~fiscal 2024 versus the ~~second~~fourth quarter of 2023. Manufacturing PMI readings were mostly lower ~~in the third quarter of 2023~~ and ~~readings for~~ many countries ~~ended the quarter~~continue to report readings below 50.

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Supply Chain

We have a global supply chain, including a network of suppliers and distribution and manufacturing ~~facilities. The~~facilities, that play a critical role in serving our channel partners and customers. Recent supply chain ~~has been stressed by increased demand, along with pandemic-related and other global events that~~challenges have ~~put additional pressures on manufacturing output. Although there has been a continued gradual improvement in the supply chain environment, this has~~ resulted in and could continue to result in:

•~~challenges in our supply chain;~~

•difficulty in procuring or inability to procure components and materials necessary for our ~~hardware and software~~ products, solutions, and services;

•increased costs for commodities and components; and

•delays in delivering, or an inability to deliver, our ~~hardware and software~~ products, solutions, and services.

We are continuing to see improvement in our supply chain environment and are closely managing our end-to-end supply chain, from sourcing to production to customer delivery, with a particular focus on all critical and at-risk suppliers and supplier locations globally. WeActions we have ~~made large-scale investments to increase capacity across our network in support of our orders growth. Additional actions we are taking~~taken include:

•extending order visibility to our supply base to ensure we are appropriately planning for extended component lead times;

•securing longer-term supply agreements with critical partners;

•re-engineering of existing products to increase component supply resiliency;

•investing in capacity, ~~investments,~~ including redundant manufacturing lines and additional electronic assembly equipment; ~~and~~

•qualification of additional suppliers to diversify our supplier ~~base.~~base; and

•adapting logistics to secure additional capacity.

We believe these ~~and other~~ actions we are ~~taking will enable~~enabling us to normalize our product lead times and ~~reduce~~better serve our ~~backlog.~~

During the third quarter of 2023, we made a change in our U.S. distribution center that added capacity to support higher revenue. This transition impacted the timing of shipments within the second half of 2023, however, will provide flexibility and scale to support future growth.

~~Outlook~~

The table below provides guidance for sales growth and earnings per share for 2023 as of August 1, 2023. Our updated guidance reflects our performance to date and assumes continued supply chain improvement.

~~Sales Growth Guidance~~

~~EPS Guidance~~

~~Reported sales growth~~

~~14.0% - 16.0%~~

~~Diluted EPS~~

~~$12.46 - $12.86~~

~~Organic sales growth~~ ~~(1)~~

~~14.0% - 16.0%~~

~~Adjusted EPS~~ ~~(1)~~

~~$11.70 - $12.10~~

~~Inorganic sales growth~~

~~~1.0%~~

~~Currency translation~~

~~~(1.0)%~~

~~(1)~~ ~~Organic sales growth and adjusted EPS are non-GAAP measures. See~~ ~~Supplemental Sales Information~~ ~~and~~ ~~Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation~~ ~~for more information on these non-GAAP measures.~~customers.

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Summary of Results of Operations

The following table reflects our sales and operating results (in millions, except per share amounts and percentages):




		Three Months Ended June 30,						Nine Months Ended June 30,							Three Months Ended December 31,
		2023			2022			2023			2022						2023			2022
Sales	Sales
Intelligent Devices (a)
Intelligent Devices (a)
Intelligent Devices (a)	Intelligent Devices (a)	$	968.1		$	878.3		$	2,927.5		$	2,587.2
Software & Control (b)	Software & Control (b)	750.6			606.9			2,065.0			1,655.7
Lifecycle Services (c)	Lifecycle Services (c)	520.0			483.5			1,502.6			1,391.2
Total sales (d)	Total sales (d)	$	2,238.7		$	1,968.7		$	6,495.1		$	5,634.1
Segment operating earnings (1)	Segment operating earnings (1)
Intelligent Devices (e)	Intelligent Devices (e)	$	163.1		$	173.2		$	579.4		$	504.4
Intelligent Devices (e)
Intelligent Devices (e)
Software & Control (f)	Software & Control (f)	261.5			190.6			678.1			439.7
Lifecycle Services (g)	Lifecycle Services (g)	48.4			45.4			100.6			103.6
Total segment operating earnings (2) (h)	Total segment operating earnings (2) (h)	473.0			409.2			1,358.1			1,047.7
Purchase accounting depreciation and amortization	Purchase accounting depreciation and amortization	(27.2)			(25.9)			(79.8)			(78.1)
Corporate and other	Corporate and other	(32.3)			(15.6)			(88.8)			(69.6)
Non-operating pension and postretirement credit (cost)		5.5			11.9			(87.5)			(5.0)
Non-operating pension and postretirement benefit credit
Change in fair value of investments	Change in fair value of investments	85.7			(5.2)			289.3			(138.3)

Interest expense, net
Interest expense, net
Interest expense, net	Interest expense, net	(32.9)			(30.2)			(100.2)			(88.9)
Income before income taxes (i)	Income before income taxes (i)	471.8			344.2			1,291.1			667.8
Income tax provision	Income tax provision	(73.1)			(49.4)			(218.8)			(84.7)
Net income	Net income	398.7			294.8			1,072.3			583.1
Net loss attributable to noncontrolling interests	Net loss attributable to noncontrolling interests	(1.5)			(3.1)			(12.2)			(10.2)
Net income attributable to Rockwell Automation	Net income attributable to Rockwell Automation	$	400.2		$	297.9		$	1,084.5		$	593.3

Diluted EPS	Diluted EPS	$	3.45		$	2.55		$	9.34		$	5.06

Diluted EPS

Diluted EPS

Adjusted EPS (3)
Adjusted EPS (3)
Adjusted EPS (3)	Adjusted EPS (3)	$	3.01		$	2.66		$	8.48		$	6.45

Diluted weighted average outstanding shares	Diluted weighted average outstanding shares	115.6			116.5			115.6			116.9
Diluted weighted average outstanding shares
Diluted weighted average outstanding shares

Pre-tax margin (i/d)	Pre-tax margin (i/d)	21.1		%	17.5		%	19.9		%	11.9		%
Pre-tax margin (i/d)
Pre-tax margin (i/d)																	12.7	%		23.6	%

Intelligent Devices segment operating margin (e/a)
Intelligent Devices segment operating margin (e/a)
Intelligent Devices segment operating margin (e/a)	Intelligent Devices segment operating margin (e/a)	16.8		%	19.7		%	19.8		%	19.5		%			16.2	%		22.4	%
Software & Control segment operating margin (f/b)	Software & Control segment operating margin (f/b)	34.8		%	31.4		%	32.8		%	26.6		%	Software & Control segment operating margin (f/b)			25.0	%		29.2	%
Lifecycle Services segment operating margin (g/c)	Lifecycle Services segment operating margin (g/c)	9.3		%	9.4		%	6.7		%	7.4		%	Lifecycle Services segment operating margin (g/c)			10.4	%		5.2	%
Total segment operating margin (2) (h/d)	Total segment operating margin (2) (h/d)	21.1		%	20.8		%	20.9		%	18.6		%	Total segment operating margin (2) (h/d)			17.3	%		20.2	%

(1) See Note 15 in the Consolidated Financial Statements for the definition of segment operating earnings.

(2) Total segment operating earnings and total segment operating margin are non-GAAP financial measures. We exclude purchase accounting depreciation and amortization, corporate and other, non-operating pension and postretirement benefit credit, ~~(cost),~~ change in fair value of investments, interest expense, net, and income tax provision because we do not consider these items to be directly related to the operating performance of our segments. We believe total segment operating earnings and total segment operating margin are useful to investors as measures of operating performance. We use these measures to monitor and evaluate the profitability of our operating segments. Our measures of total segment operating earnings and total segment operating margin may be different from measures used by other companies.

(3) Adjusted EPS is a non-GAAP earnings measure. See Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for more information on this non-GAAP measure.

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Three ~~and Nine~~ Months Ended ~~June 30,~~December 31, 2023, Compared to Three ~~and Nine~~ Months Ended ~~June 30,~~December 31, 2022

Sales

Sales increased ~~13.7 percent and 15.3~~3.6 percent year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively.~~December 31, 2023. Organic sales increased ~~13.2~~1.0 percent, ~~and 16.6 percent year over year in the three and nine months ended June 30, 2023, respectively. Currency~~ currency translation ~~decreased~~increased sales by ~~0.7~~1.2 percentage points, and ~~2.4~~acquisitions increased sales by 1.4 percentage points year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively. Acquisitions increased sales by 1.2 percentage points and 1.1 percentage points year over year in the three and nine months ended June 30, 2023, respectively.~~December 31, 2023. Pricing increased total company sales by approximately ~~3.0~~3 percentage points, ~~and 5.5 percentage points in the three and nine months ended June 30, 2023, respectively,~~ realized in the Intelligent Devices and Software & Control segments. Volume decreased total company sales by approximately 2 percentage points.

The ~~tables~~table below ~~present~~presents our sales, attributed to the geographic regions based upon country of destination, and the percentage change from the same period a year ago (in millions, except percentages). ~~The results by region and segment were primarily~~Asia Pacific was negatively impacted by the ~~composition~~results of ~~backlog versus underlying demand.~~China, which experienced a high teens decrease in reported and organic sales.

Change vs.
Change in Organic
Sales (1) vs.
Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Three Months Ended June 30, 2022
North America $ 1,260.9 1.7 % 1.7 %
Europe, Middle East and Africa 494.4 40.2 % 33.9 %
Asia Pacific 343.5 39.2 % 44.4 %
Latin America 139.9 8.1 % 6.7 %
Total Company Sales $ 2,238.7 13.7 % 13.2 %


					Change vs.		Change in Organic Sales (1) vs.
		Nine Months Ended June 30, 2023			Nine Months Ended June 30, 2022		Nine Months Ended June 30, 2022
				Change vs.																	Change vs.	Change in Organic Sales (1) vs.
	Three Months Ended December 31, 2023												Three Months Ended December 31, 2023							Three Months Ended December 31, 2022
North America	North America	$	3,750.4		9.9	%	10.3	%	North America	$	1,247.1	5.8			5.8		%		4.2		%
Europe, Middle East and Africa		1,353.7			28.2	%	29.6	%
Europe, Middle East, and Africa									Europe, Middle East, and Africa	388.3				4.2		%		(2.2)		%
Asia Pacific	Asia Pacific	974.2			23.0	%	30.2	%	Asia Pacific	275.6		(7.0)			(7.0)		%		(7.4)		%
Latin America	Latin America	416.8			11.5	%	9.7	%	Latin America	141.1		6.2			6.2		%		(0.5)		%
Total Company Sales	Total Company Sales	$	6,495.1		15.3	%	16.6	%	Total Company Sales	$	2,052.1	3.6			3.6		%		1.0		%

(1) Organic sales and organic sales growth exclude the effect of acquisitions, changes in currency exchange rates, and divestitures. See Supplemental Sales Information for information on these non-GAAP measures.

Corporate and Other

Corporate and other expenses were ~~$32.3 million and $88.8~~$40.0 million in the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, ~~respectively,~~ compared to ~~$15.6 million and $69.6~~$27.3 million in the three ~~and nine~~ months ended ~~June 30, 2022, respectively.~~December 31, 2022. The increase ~~was led by~~includes the year over year impact of costs associated with the acquisition of Clearpath and mark-to-market adjustments related to our deferred and non-qualified compensation plans.

Income before Income Taxes

Income before income taxes was ~~$471.8 million and $1,291.1~~$259.6 million in the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, ~~respectively,~~ compared to ~~$344.2 million and $667.8~~$467.9 million in the three ~~and nine~~ months ended ~~June 30, 2022, respectively.~~December 31, 2022. The ~~increase~~decrease was primarily due to ~~higher sales and fair value adjustments~~the mark-to-market gains recognized in ~~2023 compared~~the first quarter of the prior year related to ~~2022 in connection with~~ our previous investment in PTC ~~(the "PTC adjustments"). Higher non-operating pension expense partially offset the higher income before income taxes in the nine months ended June 30, 2023.~~and lower segment operating earnings.

Total segment operating earnings ~~increased 15.6~~decreased 11.3 percent in the three months ended ~~June 30,~~December 31, 2023, primarily due to higher ~~sales volume, including pricing increases, partially offset by higher~~ investment spend and incentive compensation. Total segment operating earnings increased 29.6 percent in the nine months ended June 30, 2023, primarily due to higher sales volume, including pricing increases, partially offset by higher investment spend, higher incentive compensation, higher input costs, and unfavorable currency impact.

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lower supply chain utilization.

Income Taxes

The effective tax rate for the three months ended ~~June 30,~~December 31, 2023, was ~~15.5~~18.1 percent compared to ~~14.4~~19.1 percent for the three months ended ~~June 30,~~December 31, 2022. The ~~increase~~decrease in the effective tax rate was primarily due to ~~lower discrete benefits~~tax effects in the ~~current year.~~prior year related to our previous investment in PTC. Our adjusted effective tax rate for the three months ended ~~June 30,~~December 31, 2023, was ~~14.1~~17.9 percent compared to ~~14.5~~17.1 percent for the three months ended ~~June 30, 2022. The decrease in the adjusted effective tax rate was primarily due to non-U.S. tax rates.~~

The effective tax rate for the nine months ended June 30, 2023, was 16.9 percent compared to 12.7 percent for the nine months ended June 30, 2022. The increase in the effective tax rate was primarily due to the PTC adjustments, non-U.S. tax rates, and lower discrete benefits in the current year. Our adjusted effective tax rate for the nine months ended June 30, 2023, was 16.2 percent compared to 15.2 percent for the nine months ended June 30,December 31, 2022. The increase in the adjusted effective tax rate was primarily due to ~~lower discrete benefits in~~ the ~~current year.~~geographical mix of pre-tax income.

Diluted EPS and Adjusted EPS

~~2023 third~~2024 first quarter Net income attributable to Rockwell Automation was ~~$400.2~~$215.2 million or ~~$3.45~~$1.86 per share, compared to ~~$297.9~~$384.0 million or ~~$2.55~~$3.31 per share in the ~~third~~first quarter of ~~2022.~~2023. The ~~increases~~decreases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to ~~higher sales and~~lower pre-tax margin. Pre-tax margin was ~~21.1~~12.7 percent in the ~~third~~first quarter of ~~2023~~2024 compared to ~~17.5~~23.6 percent in the same period last year. The ~~increase~~decrease in pre-tax margin was primarily due to ~~higher sales~~mark-to market gains recognized in the first quarter of the prior year related to our previous investment in PTC and ~~the PTC adjustments. 2023 third~~lower segment operating earnings. 2024 first quarter adjusted EPS was ~~$3.01, up 13.2~~$2.04, down 17.1 percent compared to ~~$2.66~~$2.46 in the ~~third~~first quarter of ~~2022,~~2023, primarily due to ~~higher sales. Total segment operating margin in the third quarter of 2023 was 21.1 percent compared to 20.8 percent a year ago.~~

Net income attributable to Rockwell Automation was $1,084.5 million or $9.34 per share in the nine months ended June 30, 2023, compared to $593.3 million or $5.06 per share in the nine months ended June 30, 2022. The increases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to higher sales and pre-tax margin. Pre-tax margin was 19.9 percent in the nine months ended June 30, 2023, compared to 11.9 percent in the same period last year. The increase in pre-tax margin was primarily due to higher sales and the PTC adjustments, partially offset by higher non-operating pension expense. Adjusted EPS was $8.48 in the nine months ended June 30, 2023, up 31.5 percent compared to $6.45 in the nine months ended June 30, 2022. The increase in adjusted EPS was primarily due to higher sales andlower segment operating margin. Total segment operating margin in the ~~nine months ended June 30, 2023,~~first quarter of 2024 was ~~20.9~~17.3 percent compared to ~~18.6~~20.2 percent ~~in the same period~~ a year ago, primarily due to higher ~~sales volume, including pricing increases, partially offset by higher~~ investment spend ~~higher incentive compensation, higher input costs,~~ and ~~unfavorable currency impact.~~lower supply chain utilization.

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Intelligent Devices

Sales

Intelligent Devices sales ~~increased 10.2 percent and 13.2~~decreased 1.0 percent year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively. Intelligent Devices organic~~December 31, 2023. Organic sales ~~increased 8.2 percent and 13.5~~decreased 4.5 percent year over year, in the ~~three and nine months ended June 30, 2023, respectively. Currency~~effects of currency translation ~~decreased~~increased sales by ~~0.4~~1.2 percentage points year over year, and ~~2.4~~acquisitions increased sales by 2.3 percentage points year over year in the three ~~and nine~~ months ended June 30, 2023, respectively. The acquisition of CUBIC increased sales by 2.4 percentage points and 2.1 percentage points year over year in the three and nine months ended June 30, 2023, respectively.December 31, 2023. For the three months ended ~~June 30,~~December 31, 2023, reported and organic sales ~~increased~~decreased in all regions, except for North America. ~~For the nine months ended June 30, 2023, reported and organic sales increased in all regions.~~

Segment Operating Margin

Intelligent Devices segment operating earnings decreased ~~5.8~~28.3 percent year over year in the three months ended ~~June 30,~~December 31, 2023. Segment operating margin decreased to ~~16.8~~16.2 percent in the three months ended ~~June 30,~~December 31, 2023, from ~~19.7~~22.4 percent in the same period a year ~~ago. The benefit~~ago, primarily due to lower sales volume, timing of ~~higher sales, including~~prior-year investment spend, and the impact ~~from price, was more than offset by higher investment spend, unfavorable mix, and higher incentive compensation.~~

Intelligent Devices segment operating earnings increased 14.9 percent year over year in the nine months ended June 30, 2023. Segment operating margin increased to 19.8 percent in the nine months ended June 30, 2023, from 19.5 percent in the same period a year ago. The increase from the prior year includes higher sales volume, including the impact from price,of acquisitions, partially offset by ~~higher investment spend, unfavorable mix, higher incentive compensation, and unfavorable currency impact.~~positive impact of price realization exceeding input costs.

Software & Control

Sales

Software & Control sales increased ~~23.7 percent and 24.7~~5.3 percent year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively. Software & Control organic~~December 31, 2023. Organic sales increased ~~24.4 percent and 27.2~~4.0 percent year over year inand the ~~three and nine months ended June 30, 2023, respectively. Currency~~effects of currency translation ~~decreased~~increased sales by ~~0.7 percentage points and 2.5~~1.3 percentage points year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively.~~December 31, 2023. For the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, all regions experienced reported and organic sales ~~increased in all regions.~~growth.

Segment Operating Margin

Software & Control segment operating earnings ~~increased 37.2 percent and 54.2~~decreased 9.7 percent year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively.~~December 31, 2023. Segment operating margin ~~increased~~decreased to ~~34.8 percent and 32.8~~25.0 percent in the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, ~~respectively,~~ from ~~31.4 percent and 26.6~~29.2 percent in the same period a year ago, primarily ~~driven by higher sales volume, including the impact from price,~~due to timing of prior-year investment spend and lower supply chain utilization, partially offset by ~~higher investment spend.~~positive impact of price realization exceeding input costs.

Lifecycle Services

Sales

Lifecycle Services sales increased ~~7.5 percent and 8.0~~10.5 percent year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively. Lifecycle Services organic~~December 31, 2023. Organic sales increased ~~8.0 percent and 10.0~~8.1 percent year over year, in the ~~three and nine months ended June 30, 2023, respectively. Currency~~effects of currency translation ~~decreased~~increased sales by 1.0 percentage ~~points~~point year over year, and ~~2.6~~acquisitions increased sales by 1.4 percentage points year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively. Acquisitions increased sales by 0.5 percentage points and 0.6 percentage points year over year in the three and nine months ended June 30, 2023, respectively.~~December 31, 2023. For the three months ended ~~June 30,~~December 31, 2023, all regions experienced reported ~~and organic~~sales growth. Organic sales increased in ~~all regions except for~~ North ~~America. For~~America and Latin America, but decreased in Europe, Middle East, and Africa and Asia Pacific in the ~~nine~~three months ended ~~June 30, 2023, reported and organic sales increased in all regions except for Latin America.~~December 31, 2023.

Segment Operating Margin

Lifecycle Services segment operating earnings increased ~~6.6 percent and decreased 2.9~~123.5 percent year over year in the three ~~and nine~~ months ended ~~June 30, 2023, respectively.~~December 31, 2023. Segment operating margin ~~decreased~~increased to ~~9.3~~10.4 percent in the three months ended ~~June 30,~~December 31, 2023, from ~~9.4 percent in the same period a year ago. Segment operating margin decreased to 6.7 percent in the nine months ended June 30, 2023, from 7.4~~5.2 percent in the same period a year ago, ~~as the benefit of~~primarily due to higher sales ~~was more than offset by higher~~volume, lower incentive compensation, ~~costs~~ and ~~one-time items to expand future profitability.~~higher margins in Sensia.

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Supplemental Segment Information

Purchase accounting depreciation and amortization and non-operating pension and postretirement benefit ~~(credit)~~ cost are not allocated to our operating segments because these costs are excluded from our measurement of each segment's operating performance for internal purposes. If we were to allocate these costs, we would attribute them to each of our segments as follows (in millions):






		Three Months Ended June 30,				Nine Months Ended June 30,
		2023		2022		2023		2022
Purchase accounting depreciation and amortization	Purchase accounting depreciation and amortization
Purchase accounting depreciation and amortization
Purchase accounting depreciation and amortization
Intelligent Devices
Intelligent Devices
Intelligent Devices	Intelligent Devices	$	1.3	$	0.5	$	3.5	$	1.9
Software & Control	Software & Control	17.1		17.3		51.2		51.8
Software & Control
Software & Control
Lifecycle Services	Lifecycle Services	8.5		7.9		24.3		23.7
Non-operating pension and postretirement benefit (credit) cost
Lifecycle Services
Lifecycle Services
Non-operating pension and postretirement benefit credit
Non-operating pension and postretirement benefit credit
Non-operating pension and postretirement benefit credit
Intelligent Devices
Intelligent Devices
Intelligent Devices	Intelligent Devices	$	(1.9)	$	(4.7)	$	23.0	$	(1.9)
Software & Control	Software & Control	(1.9)		(4.7)		23.0		(1.9)
Software & Control
Software & Control
Lifecycle Services	Lifecycle Services	(2.7)		(6.3)		30.6		(2.6)
Lifecycle Services
Lifecycle Services

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

Adjusted income, adjusted EPS, and adjusted effective tax rate are non-GAAP earnings measures that exclude non-operating pension and postretirement benefit ~~(credit) cost,~~credit, purchase accounting depreciation and amortization attributable to Rockwell Automation, change in fair value of investments, and Net loss attributable to noncontrolling interests, including their respective tax effects. Non-operating pension and postretirement benefit ~~(credit) cost~~credit is defined as all components of our net periodic pension and postretirement benefit cost (credit) except for service cost. See Note 10 in the Consolidated Financial Statements for more information on our net periodic pension and postretirement benefit cost.

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 reconciliations of Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate to adjusted income, adjusted EPS, and adjusted effective tax rate, respectively (in millions, except per share amounts and percentages):


		Three Months Ended June 30,							Nine Months Ended June 30,
		2023			2022				2023			2022
					Three Months Ended December 31,
					Three Months Ended December 31,
					Three Months Ended December 31,
								2023												2023	2022
Net income attributable to Rockwell Automation	Net income attributable to Rockwell Automation	$	400.2		$	297.9			$	1,084.5		$	593.3
Non-operating pension and postretirement benefit (credit) cost (1)		(5.5)			(11.9)				87.5			5.0
Tax effect of non-operating pension and postretirement benefit (credit) cost (1)		1.2			3.8				(21.6)			(0.9)
Non-operating pension and postretirement benefit credit
Tax effect of non-operating pension and postretirement benefit credit
Purchase accounting depreciation and amortization attributable to Rockwell Automation	Purchase accounting depreciation and amortization attributable to Rockwell Automation	24.1			22.9				70.7			69.1
Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	(5.9)			(5.6)				(17.3)			(16.8)
Change in fair value of investments (2)		(85.7)			5.2				(289.3)			138.3
Tax effect of change in fair value of investments (2)		20.7			(1.2)				70.0			(31.1)
Change in fair value of investments (1)
Tax effect of change in fair value of investments (1)
Adjusted income	Adjusted income	$	349.1		$	311.1			$	984.5		$	756.9

Diluted EPS	Diluted EPS	$	3.45		$	2.55			$	9.34		$	5.06
Non-operating pension and postretirement benefit (credit) cost (1)		(0.05)			(0.10)				0.76			0.04
Tax effect of non-operating pension and postretirement benefit (credit) cost (1)		0.01			0.03				(0.19)			(0.01)
Diluted EPS
Diluted EPS
Non-operating pension and postretirement benefit credit
Tax effect of non-operating pension and postretirement benefit credit
Purchase accounting depreciation and amortization attributable to Rockwell Automation	Purchase accounting depreciation and amortization attributable to Rockwell Automation	0.21			0.20				0.61			0.59
Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	(0.05)			(0.05)				(0.15)			(0.14)
Change in fair value of investments (2)		(0.74)			0.04				(2.50)			1.18
Tax effect of change in fair value of investments (2)		0.18			(0.01)				0.61			(0.27)
Change in fair value of investments (1)
Tax effect of change in fair value of investments (1)
Adjusted EPS	Adjusted EPS	$	3.01		$	2.66			$	8.48		$	6.45

Effective tax rate	Effective tax rate	15.5		%	14.4		%		16.9		%	12.7		%
Tax effect of non-operating pension and postretirement benefit (credit) cost (1)		(0.1)		%	(0.7)		%		0.5		%	—		%
Effective tax rate
Effective tax rate																18.1	%	19.1	%
Tax effect of non-operating pension and postretirement benefit credit															Tax effect of non-operating pension and postretirement benefit credit	(0.1)	%	(0.1)	%
Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	0.6		%	0.6		%		0.5		%	0.8		%	Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	(0.1)	%	0.5	%
Tax effect of change in fair value of investments (2)		(1.9)		%	0.2		%		(1.7)		%	1.7		%
Tax effect of change in fair value of investments (1)															Tax effect of change in fair value of investments (1)	—	%	(2.4)	%
Adjusted effective tax rate	Adjusted effective tax rate	14.1		%	14.5		%		16.2		%	15.2		%	Adjusted effective tax rate	17.9	%	17.1	%

(1) ~~Includes settlement and curtailment charges (benefit) of $2.2 million and $120.1 million for~~Amount in the three ~~and~~ ~~nine~~ months ended ~~June 30, 2023, respectively, and $(0.7) million and $24.2 million for the~~ ~~three~~ ~~and~~ ~~nine~~ ~~months ended June 30,~~December 31, 2022 ~~respectively.~~

~~(2)~~ ~~Primarily~~primarily relates to the change in fair value of previous investment in PTC.

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						~~Fiscal 2023 Guidance~~ ~~(4)~~

~~Diluted EPS~~ ~~(1)~~						~~$12.46 - $12.86~~
~~Non-operating pension and postretirement benefit cost~~ ~~(2)~~						~~0.68~~
~~Tax effect of non-operating pension and postretirement benefit cost~~ ~~(2)~~						~~(0.17)~~
~~Purchase accounting depreciation and amortization attributable to Rockwell Automation~~						~~0.82~~
~~Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation~~						~~(0.20)~~
~~Change in fair value of investments~~ ~~(3)~~						~~(2.50)~~
~~Tax effect of change in fair value of investments~~ ~~(3)~~						~~0.61~~
~~Adjusted EPS~~ ~~(1)~~						~~$11.70 - $12.10~~

~~Effective tax rate~~						~~~ 17.5%~~
~~Tax effect of non-operating pension and postretirement benefit cost~~ ~~(2)~~						~~~ 0.5%~~
~~Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation~~						~~~ 0.5%~~
~~Tax effect of change in fair value of investments~~ ~~(3)~~						~~~ (1.0)%~~
~~Adjusted effective tax rate~~						~~~ 17.5%~~

~~(1)~~ ~~Fiscal 2023 guidance based on adjusted income attributable to Rockwell, which includes an adjustment for SLB's non-controlling interest in Sensia.~~

~~(2)~~ Year-to-date pension settlement charges are used for guidance, as estimates of these adjustments on a forward-looking basis are not available due to variability, complexity, and limited visibility of these items.

~~(3)~~ The actual year-to-date adjustments, which are based on PTC's share price at June 30, 2023, and year-to-date sales of PTC Shares, are used for guidance, as estimates of these adjustments on a forward-looking basis are not available due to variability, complexity, and limited visibility of these items.

~~(4)~~ ~~Guidance as of August 1, 2023.~~

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Financial Condition

The following is a summary of our cash flows from operating, investing, and financing activities, as reflected in the Consolidated Statement of Cash Flows (in millions):


		Nine Months Ended June 30,				Three Months Ended December 31,
		2023		2022		2023	2022
Cash provided by (used for)	Cash provided by (used for)
Operating activities	Operating activities	$	535.1	$	423.7
Operating activities
Operating activities
Investing activities	Investing activities	88.6		(99.2)
Financing activities	Financing activities	(709.2)		(478.5)
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	29.7		(25.3)
Decrease in cash, cash equivalents, and restricted cash	Decrease in cash, cash equivalents, and restricted cash	$	(55.8)	$	(179.3)

The following table summarizes free cash flow, which is a non-GAAP financial measure (in millions):


		Nine Months Ended June 30,				Three Months Ended December 31,
		2023		2022		2023	2022
Cash provided by operating activities	Cash provided by operating activities	$	535.1	$	423.7
Capital expenditures	Capital expenditures	(97.3)		(100.3)
Free cash flow	Free cash flow	$	437.8	$	323.4

Our definition of free cash flow takes into consideration capital investments required to maintain the operations of our businesses and execute our strategy. Cash provided by operating activities adds back non-cash depreciation expense to earnings but does not reflect a charge for necessary capital expenditures. Our definition of free cash flow excludes the operating cash flows and capital expenditures related to our discontinued operations, if any. Operating, investing, and financing cash flows of our discontinued operations, if any, are presented separately in our Consolidated Statement of Cash Flows. In our opinion, free cash flow provides useful information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends, and share repurchases. We use free cash flow, as defined, as one measure to monitor and evaluate our performance, including as a financial measure for our annual incentive compensation. Our definition of free cash flow may be different from definitions used by other companies.

Cash provided by operating activities was ~~$535.1~~$32.6 million for the ~~nine~~three months ended ~~June 30,~~December 31, 2023, compared to ~~$423.7~~$66.3 million for the ~~nine~~three months ended ~~June 30,~~December 31, 2022. Free cash flow was ~~$437.8~~a net outflow of $35.3 million for the ~~nine~~three months ended ~~June 30,~~December 31, 2023, compared to ~~$323.4~~a net inflow of $42.1 million for the ~~nine~~three months ended ~~June 30,~~December 31, 2022. The year over year ~~increases~~decreases in cash provided by operating activities and free cash flow were primarily due to higher incentive compensation payments related to fiscal 2023 performance, lower pre-tax income, and higher tax payments in the first ~~nine~~three months of 2023 compared to the first ~~nine~~three months of 2022, partially offset by ~~increases~~decreases in working capital. ~~Free cash flow for the nine months ended June 30, 2023 and 2022, includes $16.6 million and $0.1 million, respectively, of taxes paid on the realized gain from sales of the PTC Shares.~~

In December 2021, the Company entered a 10b5-1 plan related to our PTC Shares, pursuant to which a broker makes periodic sales of some of our PTC Shares on behalf of the Company, subject to the terms of the plan. Starting in June 2022, the Company made periodic sales of our PTC Shares in the open market, outside of the parameters of the existing 10b5-1 plan. In December 2022, the original 10b5-1 plan was completed and a new 10b5-1 plan related to our PTC Shares was entered into by the Company. All of our sales of PTC Shares are consistent with the transfer restrictions in the securities purchase agreement, as amended, with PTC. As of June 30, 2023 and 2022, the fiscal year-to-date sales of our PTC shares under our 10b5-1 plan and open market sales resulted in a gross inflow of $355.2 million and $66.0 million, respectively. This excludes any tax liability related to the realized gain on investment. These proceeds, and any proceeds from future sales, will support our future uses of cash.

Our Short-term debt as of ~~June 30,~~December 31, 2023, ~~and September 30, 2022,~~ includes commercial paper borrowings of ~~$183.0~~$407.0 million ~~and $317.0 million, respectively,~~ with a weighted average interest ~~rates~~rate of ~~5.10~~5.41 percent, and ~~3.03 percent, respectively, and~~a weighted average maturity ~~periods~~period of ~~9 days and 22 days, respectively.~~13 days. We had no commercial paper borrowings as of September 30, 2023. In December 2022, Sensia entered into an unsecured $75.0 million line of credit. As of ~~June~~December 31, 2023, and September 30, 2023, included in Short-term debt was ~~$65.0~~$70.0 million borrowed against the line of credit with an interest rate of ~~6.14 percent.~~6.25 percent and 6.29 percent, respectively. Also included in Short-term debt as of ~~June 30,~~December 31, 2023, and September 30, ~~2022,~~2023, is $23.5 million ~~and $42.3 million, respectively,~~ of interest-bearing loans from SLB to Sensia, due December ~~29, 2023.~~

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31, 2024.

We repurchased approximately ~~1.0~~0.4 million shares of our common stock under our share repurchase program in the first ~~nine~~three months of ~~2023.~~2024. The total cost of these shares was ~~$256.2~~$120.3 million, of which ~~$0.8~~$1.1 million was recorded in Accounts payable at ~~June 30,~~December 31, 2023, related to shares that did not settle until ~~July 2023.~~January 2024. At September 30, ~~2022,~~2023, there were ~~$1.6~~$1.1 million of outstanding common stock share repurchases recorded in Accounts payable. We repurchased approximately ~~1.0~~0.6 million shares of our common stock under our share repurchase program in the first ~~nine~~three months of ~~2022.~~2023. The total cost of these shares was ~~$225.5~~$156.0 million, of which ~~$8.8~~$0.8 million was recorded in Accounts payable at ~~June 30,~~December 31, 2022, related to shares that did not settle until ~~July 2022.~~January 2023. Our decision to repurchase shares in the remainder of ~~2023~~2024 will depend on business conditions, free cash flow generation, other cash requirements, and stock price. On May 2, 2022, the Board of Directors authorized us to expend an additional $1.0 billion to repurchase shares of our common stock. At ~~June 30,~~December 31, 2023, we had approximately ~~$995.1~~$820.0 million remaining for share repurchases under our existing board authorization. See Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, for additional information regarding share repurchases.

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We expect future uses of cash to include working capital requirements, capital expenditures, ~~additional contributions to our retirement plans, acquisitions of businesses and other inorganic investments,~~ dividends to shareowners, repurchases of common stock, ~~and~~additional contributions to our retirement plans, repayments of ~~debt.~~debt, and acquisitions of businesses and other inorganic investments. We expect to fund future uses of cash with a combination of existing cash balances, cash generated by operating activities, commercial paper borrowings, or new issuances of debt or other securities. In addition, we have access to unsecured credit facilities with various banks.

At ~~June 30,~~December 31, 2023, the majority of our Cash and cash equivalents were held by non-U.S. subsidiaries. As a result of the broad changes to the U.S. international tax system under the Tax Act, the Company accounts for taxes on earnings of substantially all of its non-U.S. subsidiaries including both non-U.S. and U.S. taxes. The Company has concluded that earnings of a limited number of its non-U.S. subsidiaries are indefinitely reinvested.

In June 2022, we replaced our former $1.25 billion unsecured revolving credit facility with a new five-year $1.5 billion unsecured revolving credit facility, expiring in June 2027. This credit facility uses the secured overnight funding rate (SOFR) as the primary basis for determining interest payments. We can increase the aggregate amount of this credit facility by up to $750.0 million, subject to the consent of the banks in the credit facility. We did not borrow against this credit facility ~~or the former credit facility~~ during the periods ended ~~June 30,~~December 31, 2023, or September 30, ~~2022.~~2023. Borrowings under this credit facility bear interest based on short-term money market rates in effect during the period the borrowings are outstanding. The terms of this credit facility contain covenants under which we agree to maintain an EBITDA-to-interest ratio of at least 3.0 to 1.0. The EBITDA-to-interest ratio is defined in the credit facility as the ratio of consolidated EBITDA (as defined in the facility) for the preceding four quarters to consolidated interest expense for the same period.

LIBOR was the primary basis for determining interest payments on borrowings under our former $1.25 billion credit facility. Our new $1.5 billion credit facility uses the secured overnight funding rate (SOFR) as the primary basis for determining interest payments.

Among other uses, we can draw on our credit facility as a standby liquidity facility to repay our outstanding commercial paper as it matures. This access to funds to repay maturing commercial paper is an important factor in maintaining the short-term credit ratings set forth in the table below. Under our current policy with respect to these ratings, we expect to limit our other borrowings under our credit facility, if any, to amounts that would leave enough credit available under the facility so that we could borrow, if needed, to repay all of our then outstanding commercial paper as it matures.

Separate short-term unsecured credit facilities of approximately ~~$219.4~~$227.6 million at ~~June 30,~~December 31, 2023, were available to non-U.S. subsidiaries, of which, approximately ~~$32.2~~$33.2 million was committed under letters of credit. Borrowings under our non-U.S. credit facilities at ~~June 30,~~December 31, 2023, and September 30, ~~2022,~~2023, were not significant. We were in compliance with all covenants under our credit facilities at ~~June 30,~~December 31, 2023, and September 30, ~~2022.~~2023. There are no significant commitment fees or compensating balance requirements under our credit facilities.

The following is a summary of our credit ratings as of ~~June 30,~~December 31, 2023:

Credit Rating Agency

Short-Term Rating

Long-Term Rating

Outlook

Standard & Poor’s

A-1

Negative

Moody’s

P-2

Stable

Fitch Ratings

Stable

Our ability to access the commercial paper market, and the related costs of these borrowings, is affected by the strength of our credit ratings and market conditions. We have not experienced any difficulty in accessing the commercial paper market. If our access to the commercial paper market is adversely affected due to a change in market conditions or otherwise, we would expect to rely on a combination of available cash and our unsecured committed credit facility to provide short-term funding. In such event, the cost of borrowings under our unsecured committed credit facility could be higher than the cost of commercial paper borrowings.

~~Table of Contents~~

We regularly monitor the third-party depository institutions that hold our cash and cash equivalents and short-term investments. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities.

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We use foreign currency forward exchange contracts to manage certain foreign currency risks. We enter into these contracts to hedge our exposure to foreign currency exchange rate variability in the expected future cash flows associated with certain third-party and intercompany transactions denominated in foreign currencies forecasted to occur within the next two years. We also may use these contracts to hedge portions of our net investments in certain non-U.S. subsidiaries against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. There were no open net investment hedges for the three months ended December 31, 2023, or September 30, 2023. In addition, we use foreign currency forward exchange contracts that are not designated as hedges to offset transaction gains or losses associated with some of our assets and liabilities resulting from intercompany loans or other transactions with third parties that are denominated in currencies other than our entities' functional currencies. Our foreign currency forward exchange contracts are usually denominated in currencies of major industrial countries. We diversify our foreign currency forward exchange contracts among counterparties to minimize exposure to any one of these entities.

Net gains and losses related to derivative forward exchange contracts designated as cash flow hedges offset the related gains and losses on the hedged items during the periods in which the hedged items are recognized in earnings. During the three ~~and nine~~ months ended ~~June 30,~~December 31, 2023, we reclassified ~~$7.3~~$8.5 million ~~and $27.7 million, respectively,~~ in pre-tax net gains related to cash flow hedges from Accumulated other comprehensive loss into the Consolidated Statement of Operations. During the three ~~and nine~~ months ended ~~June 30,~~December 31, 2022, we reclassified ~~$7.2~~$12.7 million ~~and $6.6 million, respectively,~~ in pre-tax net gains related to cash flow hedges from Accumulated other comprehensive loss into the Consolidated Statement of Operations. As of ~~June 30,~~December 31, 2023, we expect that approximately ~~$4.5~~$11.1 million of pre-tax net unrealized ~~gains~~losses on cash flow hedges will be reclassified into earnings during the next 12 months.

Information with respect to our contractual cash obligations is contained in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the year ended September 30, ~~2022.~~2023. We believe that at ~~June 30,~~December 31, 2023, there has been no material change to this information.

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Supplemental Sales Information

We translate sales of subsidiaries operating outside of the United States using exchange rates effective during the respective period. Therefore, changes in currency exchange rates affect our reported sales. Sales by acquired businesses also affect our reported sales. We believe that organic sales, defined as sales excluding the effects of acquisitions and changes in currency exchange rates, which is a non-GAAP financial measure, provides useful information to investors because it reflects regional and operating segment performance from the activities of our businesses without the effect of acquisitions and changes in currency exchange rates. We use organic sales as one measure to monitor and evaluate our regional and operating segment performance. When we acquire businesses, we exclude sales in the current period for which there are no comparable sales in the prior period. We determine the effect of changes in currency exchange rates by translating the respective period’s sales using the same currency exchange rates that were in effect during the prior year. When we divest a business, we exclude sales in the prior period for which there are no comparable sales in the current period. Organic sales growth is calculated by comparing organic sales to reported sales in the prior year, excluding divestitures. We attribute sales to the geographic regions based on the country of destination.

The following is a reconciliation of reported sales to organic sales by geographic region (in millions):

Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
Reported Sales Less: Effect of
Acquisitions Effect of
Changes in
Currency Organic Sales Reported Sales
North America $ 1,260.9 $ 4.3 $ (4.9) $ 1,261.5 $ 1,239.9
Europe, Middle East and Africa 494.4 15.3 6.8 472.3 352.6
Asia Pacific 343.5 4.2 (17.1) 356.4 246.8
Latin America 139.9 — 1.8 138.1 129.4
Total Company Sales $ 2,238.7 $ 23.8 $ (13.4) $ 2,228.3 $ 1,968.7

Nine Months Ended June 30, 2023 Nine Months Ended June 30, 2022
Reported Sales Less: Effect of
Acquisitions Effect of
Changes in
Currency Organic Sales Reported Sales
North America $ 3,750.4 $ 8.6 $ (20.6) $ 3,762.4 $ 3,412.2
Europe, Middle East and Africa 1,353.7 41.7 (56.7) 1,368.7 1,056.2
Asia Pacific 974.2 12.2 (68.8) 1,030.8 791.9
Latin America 416.8 — 6.8 410.0 373.8
Total Company Sales $ 6,495.1 $ 62.5 $ (139.3) $ 6,571.9 $ 5,634.1

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	Three Months Ended December 31, 2023						Three Months Ended December 31, 2022
	Reported Sales		Less: Effect of Acquisitions		Effect of Changes in Currency		Organic Sales		Reported Sales
North America	$	1,247.1	$	18.8	$	(0.2)	$	1,228.5	$	1,178.9
Europe, Middle East, and Africa	388.3		6.3		17.4		364.6		372.8
Asia Pacific	275.6		2.7		(1.7)		274.6		296.5
Latin America	141.1		—		8.9		132.2		132.8
Total Company Sales	$	2,052.1	$	27.8	$	24.4	$	1,999.9	$	1,981.0

The following is a reconciliation of reported sales to organic sales by operating segment (in millions):

Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
Reported Sales Less: Effect of
Acquisitions Effect of
Changes in
Currency Organic Sales Reported Sales
Intelligent Devices $ 968.1 $ 21.2 $ (3.8) $ 950.7 $ 878.3
Software & Control 750.6 — (4.6) 755.2 606.9
Lifecycle Services 520.0 2.6 (5.0) 522.4 483.5
Total Company Sales $ 2,238.7 $ 23.8 $ (13.4) $ 2,228.3 $ 1,968.7


		Nine Months Ended June 30, 2023						Nine Months Ended June 30, 2022
		Reported Sales		Less: Effect of Acquisitions		Effect of Changes in Currency		Organic Sales		Reported Sales
												Three Months Ended December 31, 2023				Three Months Ended December 31, 2022
	Reported Sales												Reported Sales	Less: Effect of Acquisitions	Effect of Changes in Currency		Organic Sales	Reported Sales
Intelligent Devices	Intelligent Devices	$	2,927.5	$	54.2	$	(62.9)	$	2,936.2	$	2,587.2
Software & Control	Software & Control	2,065.0		—		(41.0)		2,106.0		1,655.7
Lifecycle Services	Lifecycle Services	1,502.6		8.3		(35.4)		1,529.7		1,391.2
Total Company Sales	Total Company Sales	$	6,495.1	$	62.5	$	(139.3)	$	6,571.9	$	5,634.1

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Critical Accounting Estimates

We have prepared the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States, which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and revenues and expenses during the periods reported. These estimates are based on our best judgment about current and future conditions, but actual results could differ from those estimates. Information with respect to accounting estimates that are the most critical to the understanding of our financial statements as they could have the most significant effect on our reported results and require subjective or complex judgments by management is contained in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the year ended September 30, ~~2022.~~2023. We believe that at ~~June 30,~~December 31, 2023, there has been no material change to this information, except as noted below.

~~Goodwill~~Acquisitions - ~~Sensia Reporting Unit~~Clearpath Intangible Assets Valuation

~~The quantitative test~~We account for business acquisitions by allocating the purchase price to tangible and intangible assets acquired and liabilities assumed at their fair values; the excess of ~~Goodwill for impairment requires us~~the purchase price over the allocated amount is recorded as goodwill. We engaged an independent third-party valuation specialist to ~~estimate~~assist with the fair value ~~of our reporting units. During the second quarter of fiscal 2023, we performed a quantitative impairment test for our Sensia reporting unit. We determined the fair value~~allocation of the ~~reporting unit under a combination~~intangible assets assumed through the acquisition of anClearpath. The intangible assets were valued using income ~~approach derived~~approaches, specifically the relief from ~~discounted cash flows~~royalty method and ~~a market multiples approach using selected comparable public companies.~~

~~Critical~~multi-period excess earnings method. This required the use of several assumptions ~~used in this approach included management’s estimated future~~and estimates including forecasted revenue growth rates, margin, and ~~margins, a discount~~cash flows attributable to existing customers, obsolescence factor, royalty rate, contributory asset charges, customer attrition rate, and a market multiple. Estimated future revenue growth and margins are based on management’s best estimate about current and future conditions. The revenue growth rate assumption reflects significant growth over the next five years before moderating back to a growth rate approximating longer term average inflationarydiscount rates. The forecasted near-term growth rate assumes that revenue will return to pre-pandemic levels due to the abatement of pandemic and supply chain related disruptions. Margin assumptions reflect that recent cost pressure related to inflation and supply chain challenges will be compensated through pricing achieved on future orders. WeAlthough we believe the assumptions and estimates made were reasonable and appropriate, ~~which~~these estimates require judgment and are based in part on ~~a number of factors, including~~ historical experience ~~reference to external product available market and industry growth publications, analysis of peer group projections,~~ and information obtained from ~~reporting unit management, including backlog. Actual results and forecasts~~Clearpath management.

The key assumption requiring the use of ~~revenue growth and margins for our Sensia reporting unit may be impacted by its concentration within~~judgement in the Oil & Gas industry and with its customer base. Demand for Sensia hardware and software products, solutions, and services is sensitive to industry volatility and risks, including those related to commodity prices, supply and demand dynamics, production costs, geological activity, and political activities. If such factors impact our ability to achieve forecasted revenue growth rates and margins, the fair valuevaluation of the ~~reporting unit could decrease, which may~~$269.6 million technology asset was the obsolescence factor. The obsolescence factor of twelve years was calculated based on the depletion of existing technology using a variety of factors including research and development spend toward new product development and scheduled patent expiration. A two-year change in this assumption would result in ~~an impairment. We determined~~a change of approximately $82 million in intangible assets. The key assumption requiring the ~~discount rate using our~~use of judgement in the valuation of the $41.6 million trademark intangible asset was the weighted average ~~cost~~royalty rate of ~~capital adjusted for risk factors including risk associated with our above~~2.05 percent. This rate was based on royalty market ~~revenue growth assumptions, historical performance, and industry-specific and economic factors. Additionally, industry-specific and economic factors that increase~~data. A 100 basis point change in the ~~discount~~royalty rate ~~or decrease the market multiple can decrease the fair value of the Sensia reporting unit, which may~~would result in ~~an impairment.~~a change of $20 million in intangible assets.

~~Based on~~More information regarding these ~~assumptions and estimates, the fair value of the Sensia reporting unit exceeded its carrying value by approximately 10 percent. We also assessed the changes~~business acquisitions is contained in events and circumstances subsequent to our annual test and concluded that no triggering events, which would require interim quantitative testing, occurred. Therefore, as of June 30, 2023, we deemed that no impairment existed on $318.2 million of Goodwill allocated to the Sensia reporting unit.

~~Retirement Benefits - Pension~~

In June 2023, we remeasured our U.S. pension plan assets and liabilities in accordance with U.S GAAP settlement accounting rules. The discount rate used in the remeasurement was 5.45 percent compared to 5.65 percent at our September 30, 2022, annual measurement date. The 5.45 percent discount rate was set as of a June 30, 2023, measurement date and was determined by modeling a portfolio of bonds that match the expected cash flow of our benefit plans. See Note 105 in the Consolidated Financial ~~Statements for additional information regarding the settlement accounting.~~Statements.

Environmental Matters

Information with respect to the effect of compliance with environmental protection requirements and resolution of environmental claims on us and our manufacturing operations is contained in Note 17 in the Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the year ended September 30, ~~2022.~~2023. We believe that at ~~June 30,~~December 31, 2023, there has been no material change to this information.

Recent Accounting Pronouncements

See Note 1 in the Consolidated Financial Statements regarding recent accounting pronouncements.

~~Table of Contents~~

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information with respect to our exposure to foreign currency risk and interest rate risk is contained in Item 7A. Quantitative and Qualitative Disclosures About Market Risk, of our Annual Report on Form 10-K for the year ended September 30, ~~2022.~~2023. We believe that at ~~June 30,~~December 31, 2023, there has been no material change to this information.

Item 4. Controls and Procedures

Disclosure Controls and Procedures: We, with the participation of our Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)) as of the end of the quarter covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the quarter covered by this report, our disclosure controls and procedures were effective.

Internal Control Over Financial Reporting: There has not been any change in our internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) during the quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information with respect to our legal proceedings is contained in Item 3. Legal Proceedings, of our Annual Report on Form 10-K for the year ended September 30, ~~2022.~~2023. We believe that at ~~June 30,~~December 31, 2023, there has been no material change to this information.

Item 1A. Risk Factors

Information about our most significant risk factors is contained in Item 1A. Risk Factors, of our Annual Report on Form 10-K for the year ended September 30, ~~2022.~~2023. We believe that at ~~June 30,~~December 31, 2023, there has been no material change to this information.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Share Repurchases

The table below sets forth information with respect to purchases made by or on behalf of us of shares of our common stock during the three months ended ~~June 30,~~December 31, 2023:

Period
Total Number of Shares Purchased (1)
Average Price Paid Per Share (2)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Maximum Approx. Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3)
April 1 - 30, 2023 82,169 $ 277.42 82,169 $ 1,034,106,108
May 1 - 31, 2023 112,790 272.69 112,432 1,003,447,871
June 1 - 30, 2023 27,168 309.06 27,168 995,051,408
Total 222,127 $ 278.88 221,769


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Approx. Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3)
October 1-31, 2023	118,222	$	279.11	118,222	$	907,312,780
November 1-30, 2023	284,983	268.07		284,983	830,917,548
December 1-31, 2023	37,137	294.78		37,137	819,970,467
Total	440,342	$	273.28	440,342

(1) All of the shares purchased during the quarter ended ~~June 30,~~December 31, 2023, were acquired pursuant to the repurchase program described in (3) ~~below, except for 358 shares that were acquired in May 2023 in connection with stock swap exercises of employee stock options.~~below.

(2) Average price paid per share includes brokerage commissions.

(3) On May 2, 2022, the Board of Directors authorized us to expend an additional $1.0 billion to repurchase shares of our common stock. Our repurchase program allows us to repurchase shares at management’s discretion or at our broker’s discretion pursuant to a share repurchase plan subject to price and volume parameters.

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Item 5. Other Information

During the quarter ended ~~June 30,~~December 31, 2023, the following officers of the Company adopted Rule 10b5-1 trading arrangements that are each intended to satisfy the affirmative defense of Rule 10b5-1(c) promulgated under the Exchange Act, with such details of the arrangements as further follows:

•Robert L. Buttermore, Senior Vice President and Chief Supply Chain Officer, adopted a Rule 10b5-1 trading arrangement on November 30, 2023, that will terminate on the earlier of February 28, 2025, or the execution of all trades in the trading arrangement. Mr. Buttermore’s trading arrangement covers the sale of (i) 1,664 long shares of the Company's common stock and (ii) the number of shares of the Company’s common stock required to be sold to cover taxes on upcoming restricted stock unit and performance share vests.

•Matthew Fordenwalt, Senior Vice President Lifecycle Services, adopted a Rule 10b5-1 trading arrangement on ~~May 25,~~November 29, 2023, that will terminate on the earlier of December 31, ~~2023,~~2024, or the execution of all trades in the trading arrangement. Mr. Fordenwalt’s trading arrangement covers the sale of the number of shares of the Company’s common stock required to be sold to cover taxes on upcoming restricted stock unit and performance share vests.

•~~Nicholas Gangestad,~~Scott A. Genereux, Senior Vice President and Chief ~~Financial~~Revenue Officer, adopted a Rule 10b5-1 trading arrangement on ~~May~~November 30, 2023, that will terminate on the earlier of ~~March 8,~~December 31, 2024, or the execution of all trades in the trading arrangement. Mr. ~~Gangestad’s~~Genereux’s trading arrangement covers the sale of (i) 2,000 long shares of the Company's common stock and (ii) the number of shares of the Company’s common stock required to be sold to cover taxes on upcoming restricted stock unit ~~vests~~ and ~~(ii) 50% of the shares of the Company’s common stock that remain following the sale to cover taxes on the vesting of 5,309 restricted stock units on March 1, 2024.~~performance share vests.

•~~Veena Lakkundi,~~Rebecca W. House, Senior Vice President, ~~Corporate Development~~Chief People and ~~Strategy,~~Legal Officer and Secretary, adopted a Rule 10b5-1 trading arrangement on ~~May 31,~~November 29, 2023, that will terminate on the earlier of December 31, ~~2023,~~2024, or the execution of all trades in the trading arrangement. Ms. ~~Lakkundi’s~~House’s trading arrangement covers the (i) exercise of 13,900 stock options and the sale of the underlying shares of the Company's common stock and (i) the sale of the number of shares of the Company’s common stock required to be sold to cover taxes on upcoming restricted stock unit vests.

•Frank C. Kulaszewicz, Senior Vice President, adopted a Rule 10b5-1 trading arrangement on November 28, 2023, that will terminate on the earlier of May 31, 2024, or the execution of all trades in the trading arrangement. Mr. Kulaszewicz’s trading arrangement covers the (i) sale of 466 long shares of the Company's common stock and (ii) exercise of 6,000 stock options and the sale of the underlying shares of the Company's common stock.

•John M. Miller, Vice President and Chief Intellectual Property Counsel, adopted a Rule 10b5-1 trading arrangement on ~~May 24,~~November 30, 2023, that will terminate on the earlier of December 31, ~~2023,~~2024, or the execution of all trades in the trading arrangement. Mr. Miller’s trading arrangement covers the (i) exercise of 934 stock options and the sale of the underlying shares of the Company's common stock and (ii) sale of the number of shares of the Company’s common stock required to be sold to cover taxes on upcoming restricted stock unit and performance share vests.

•~~Brian Shepherd,~~Tessa M. Myers, Senior Vice President, ~~Software and Control,~~Intelligent Devices, adopted a Rule 10b5-1 trading arrangement on ~~May 24,~~November 30, 2023, that will terminate on the earlier of ~~February 29,~~June 10, 2024, or the execution of all trades in the trading arrangement. ~~Mr. Shepherd’s~~Ms. Myers’ trading arrangement covers the sale of the number of shares of the Company’s common stock required to be sold to cover taxes on an upcoming restricted stock unit vest.

•Christopher Nardecchia, Senior Vice President and Chief Information Officer, adopted a Rule 10b5-1 trading arrangement on November 30, 2023, that will terminate on the earlier of December 31, 2024, or the execution of all trades in the trading arrangement. Mr. Nardecchia’s trading arrangement covers the (i) exercise of 7,000 stock options and the sale of the underlying shares of the Company's common stock and (ii) sale of the number of shares of the Company’s common stock required to be sold to cover taxes on upcoming restricted stock unit and performance share vests.

~~The~~•Terry L. Riesterer, Vice President and Controller, adopted a Rule 10b5-1 trading arrangement on November 27, 2023, that will terminate on the earlier of December 31, 2024, or the execution of all trades in the trading arrangement. Mr. Riesterer’s trading arrangement covers the (i) exercise of 2,100 stock options and the sale of the underlying shares of the Company's common stock and (ii) sale of the number of shares of the Company’s common stock required to be sold to cover taxes on upcoming restricted stock unit and performance share vests.

Table of Contents

•Isaac R. Woods, Vice President and Treasurer, adopted a Rule 10b5-1 trading arrangement on November 29, 2023, that will terminate on the earlier of December 31, 2024, or the execution of all trades in the trading arrangement. Mr. Woods’ trading arrangement covers the sale of (i) 300 long shares of the Company's common stock and (ii) the number of shares of the Company’s common stock required to be sold to cover taxes on upcoming restricted stock unit and performance share vests.

For the arrangements above referencing transactions to sell shares to cover taxes on vests, the aggregate number of shares to be sold pursuant to each trading arrangement described above is dependent on the taxes on the applicable restricted stock unit and performance share vests, and, therefore, is indeterminable at this time.

During the quarter ended ~~June 30,~~December 31, 2023, no director or officer of the Company adopted or terminated a “non-Rule 10b5-1 trading arrangement,” as defined in Item 408 of Regulation S-K, no director of the Company adopted or terminated a Rule 10b5-1 trading arrangement, and no officer of the Company terminated a Rule 10b5-1 trading arrangement.

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Table of Contents

Item 6. Exhibits

(a) Exhibits:

Exhibit 15

—

Letter of Deloitte & Touche LLP regarding Unaudited Financial Information.

Exhibit 31.1

—

Certification of Periodic Report by the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.

Exhibit 31.2

—

Certification of Periodic Report by the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.

Exhibit 32.1

—

Certification of Periodic Report by the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.2

—

Certification of Periodic Report by the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 101

—

Interactive Data Files.

Exhibit 104

—

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

4542

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ROCKWELL AUTOMATION, INC.

(Registrant)

Date:

~~August 1, 2023~~January 31, 2024

/s/ NICHOLAS C. GANGESTAD

Nicholas C. Gangestad
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)

Date:

~~August 1, 2023~~January 31, 2024

/s/ TERRY L. RIESTERER

Terry L. Riesterer
Vice President and Controller
(Principal Accounting Officer)

4643


			Page No.
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheet			4

Consolidated Statement of Operations			5

Consolidated Statement of Comprehensive Income			6

Consolidated Statement of Cash Flows			7

Consolidated Statement of Shareowners' Equity			8

Notes to Consolidated Financial Statements			109

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)			24

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			25

Item 3. Quantitative and Qualitative Disclosures About Market Risk			4238

Item 4. Controls and Procedures			4238

PART II. OTHER INFORMATION

Item 1. Legal Proceedings			4339

Item 1A. Risk Factors			4339

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			4339

Item 5. Other Information			4440

Item 6. Exhibits			4542

Signatures			4643


	Three Months Ended June 30, 2023								Three Months Ended June 30, 2022
	Intelligent Devices		Software & Control		Lifecycle Services		Total		Intelligent Devices		Software & Control		Lifecycle Services		Total
North America	$	548.5	$	460.9	$	251.5	$	1,260.9	$	549.6	$	437.8	$	252.5	$	1,239.9
Europe, Middle East and Africa	220.4		137.3		136.7		494.4		162.5		72.3		117.8		352.6
Asia Pacific	133.7		113.6		96.2		343.5		106.4		61.3		79.1		246.8
Latin America	65.5		38.8		35.6		139.9		59.8		35.5		34.1		129.4
Total Company Sales	$	968.1	$	750.6	$	520.0	$	2,238.7	$	878.3	$	606.9	$	483.5	$	1,968.7


	IP Index	PMI
2023 quarter ended:
June 2023	99.9	46.0
March 2023	99.5	46.3
December 2022	99.6	48.4
2022 quarter ended:
September 2022	100.4	50.9
June 2022	100.4	53.0
March 2022	99.7	57.0
December 2021	99.0	58.8
2021 quarter ended:
September 2021	97.8	60.5