Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 202

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 6
Chunk 202
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elligent Devices$2,409 $829 $569 $291 $4,098 Software & Control1,795 528 394 169 2,886 Lifecycle Services1,020 514 395 145 2,074 Total Company Sales$5,224 $1,871 $1,358 $605 $9,058 

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Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Contract LiabilitiesContract 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):September 30, 2025September 30, 2024Balance as of beginning of year$653 $654 Balance as of end of period$695 653The most significant changes in our Contract liabilities balance during both the twelve months ended September 30, 2025 and 2024, were due to amounts billed during the period, 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. In the twelve months ended September 30, 2025, we recognized revenue of approximately $545 million that was included in the Contract liabilities balance at September 30, 2024. In the twelve months ended September 30, 2024, we recognized revenue of approximately $584 million that was included in the Contract liabilities balance at September 30, 2023.  In the twelve months ended September 30, 2023, we recognized revenue of approximately $424 million that was included in the Contract liabilities at September 30, 2022. We did not have a material amount of revenue recognized in the twelve months ended September 30, 2025, 2024 and 2023, from performance obligations satisfied or partially satisfied in previous periods.Costs to Obtain and Fulfill a ContractWe capitalize and amortize certain incremental costs to obtain and fulfill contracts. These costs primarily consist of incentives paid to sales personnel, which are considered incremental costs to obtain customer contracts. We elected the practical expedient to expense incremental costs to obtain a contract when the contract has a duration of one year or less for most classes of contracts. Our capitalized contract costs, which are included in Other assets in our Consolidated Balance Sheet, are not significant as of September