Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 125

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 4
Chunk 125
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 for each segment, adjustments related to acquisition earnouts for Intelligent Devices, and income from royalties for Software and Control.(2) Legacy asbestos and environmental charges were previously included in Corporate and other. All periods have been recast to conform with current year presentation.

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Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2023Intelligent DevicesSoftware & ControlLifecycle ServicesTotalSales$4,098 $2,886 $2,074 $9,058 Less:Segment cost of sales(2,182)(869)(1,508)Segment selling, general and administrative expenses(815)(665)(382)Segment engineering and development expenses(268)(399)(43)Other segment items (1)(5)— 7 Segment operating earnings$828 $953 $148 1,929 Purchase accounting depreciation and amortization, and impairment (264)Corporate and other (2)(110)Non-operating pension and postretirement benefit cost(83)Net legacy asbestos and environmental charges (2)(18)Change in fair value of investments279 Restructuring charges— Interest expense, net(125)Income before income taxes$1,608 (1) Other segment items are primarily comprised of foreign currency adjustments for each segment and income from royalties for Software and Control.(2) Legacy asbestos and environmental charges were previously included in Corporate and other. All periods have been recast to conform with current year presentation.Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before purchase accounting depreciation and amortization, and impairment, corporate and other, non-operating pension and postretirement benefit (cost) credit, net legacy asbestos and environmental charges, change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, and interest expense, net. Our CODM uses segment operating earnings as the key performance metric to regularly monitor performance compared to prior periods, annual operating plan, and forecasts and to make decisions.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. Segment selling, general and administrative expenses represent costs directly managed by the segments and allocated to the segments. We allocate costs related to shared segment operating activities to the segments consistent with the methodology used by management to assess segment performance.

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Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued