Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 104

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 4
Chunk 104
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 and $70 million during 2025, 2024, and 2023, respectively. We estimated the fair value of each stock option on the date of grant using the Black-Scholes pricing model and the following assumptions:202520242023Average risk-free interest rate4.07 %4.22 %3.78 %Expected dividend yield1.76 %1.79 %1.82 %Expected volatility35 %34 %34 %Expected term (years)4.94.84.8The average risk-free interest rate is based on U.S. Treasury security rates corresponding to the expected term in effect as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of our common stock as of the grant date. We determined expected volatility using daily historical volatility of our stock price over the most recent period corresponding to the expected term as of the grant date. We determined the expected term of the stock options using historical data adjusted for the estimated exercise dates of unexercised options.A summary of stock option activity for the year ended September 30, 2025, is as follows:Shares(in thousands)Wtd. Avg.ExercisePriceWtd. Avg.RemainingContractualTerm (years)AggregateIntrinsic Valueof In-The-MoneyOptions(in millions)Outstanding at October 1, 20241,884 $214.03   Granted190 297.07   Exercised(571)177.76   Forfeited(32)279.45   Canceled(18)335.27   Outstanding at September 30, 20251,453 233.92 5.3$168 Exercisable at September 30, 20251,085 216.77 4.2144 The amount of options expected to vest is materially consistent with those outstanding and not yet exercisable.Performance Share Awards

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Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Certain officers and key employees are also eligible to receive shares of our common stock in payment of performance share awards granted to them. Grantees of performance shares will be eligible to receive shares of our common stock depending upon our total shareowner return, assuming reinvestment of all dividends, relative to the performance over a three-year period of companies in the S&P 500 Selected GICS groups: Capital Goods, Software and Services, and Technology