Company: ROK
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001024478-25-000035
Chunk: 12

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 We updated the fair value measures quarterly during the performance periods to reflect actual results and remaining expected contingent consideration that could be earned. 

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Table of ContentsROCKWELL AUTOMATION, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)(Unaudited)

The following table presents the fair value of the contingent consideration in the Consolidated Balance Sheet (in millions):Period ended February 29, 2024Period ended February 28, 2025TotalContingent consideration as of December 31, 2023$17 $26 $43 Adjustment for earnout achieved for first performance period(7)— (7)Adjustment to fair value— (21)(21)Payment of earnout achieved for first performance period(10)— (10)Contingent consideration as of September 30, 2024$— $5 $5 Adjustment for earnout forfeited for second performance period— (5)(5)Contingent consideration as of March 31, 2025$— $— $— The consideration for the amount earned for the first performance period was paid during the third quarter of 2024.In November 2023, we acquired Verve Industrial Protection (Verve), a cybersecurity software and services 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 November 1, 2023. The aggregate purchase price allocation is as follows (in millions):Purchase Price AllocationReceivables$8 Goodwill 133 Intangible assets47 All other assets1 Total assets acquired189 Less: Liabilities assumed(6)Net assets acquired$183 Purchase ConsiderationTotal purchase consideration, net of cash acquired$183 We assigned the full amount of goodwill 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. Pro forma consolidated sales for the three and six months ended March 31, 2024, were $2.1 billion and $4.2 billion, respectively, and the impact on earnings was not material. The preceding pro forma consolidated financial results of operations are as if the preceding 2024 acquisitions occurred on October 1, 2023. The pro forma information is presented for informational purposes only and is not indicative of the results of operations