Company: ROK
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001024478-25-000010
Chunk: 29

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 2024. For the three months ended December 31, 2024, reported and organic sales increased in all regions.

Segment Operating Margin

Lifecycle Services segment operating earnings increased 24 percent year over year in the three months ended December 31, 2024. Segment operating margin increased to 12.5 percent in the three months ended December 31, 2024, from 10.6 percent in the same period a year ago, primarily due to the benefits from cost reduction and margin expansion actions and higher sales volume.

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Supplemental Segment Information

Purchase accounting depreciation and amortization and non-operating pension and postretirement benefit credit 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 EndedDecember 31, 20242023Purchase accounting depreciation and amortizationIntelligent Devices$9 $9 Software & Control17 17 Lifecycle Services9 9 Non-operating pension and postretirement benefit creditIntelligent Devices$— $(2)Software & Control— (2)Lifecycle Services(1)(2)

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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, 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 is defined as all components of our net periodic pension and postretirement benefit cost 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.