Company: ROK
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001024478-25-000010
Chunk: 105

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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0.1)%Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation1.1 %(0.1)%Tax effect of change in fair value of investments— %— %Adjusted effective tax rate17.5 %17.9 %

31

Financial Condition

The following is a summary of our cash flows from operating, investing, and financing activities, as reflected in the Consolidated Statement of Cash Flows (in millions):

 Three Months EndedDecember 31, 20242023Cash provided by (used for)Operating activities$364 $33 Investing activities(83)(817)Financing activities(254)134 Effect of exchange rate changes on cash(27)9 Decrease in cash and cash equivalents$— $(641)

The following table summarizes free cash flow, which is a non-GAAP financial measure (in millions):

 Three Months EndedDecember 31, 20242023Cash provided by operating activities$364 $33 Capital expenditures(71)(68)Free cash flow$293 $(35)

Our definition of free cash flow takes into consideration capital investments required to maintain the operations of our businesses and execute our strategy. Cash provided by operating activities adds back non-cash depreciation expense to earnings but does not reflect a charge for necessary capital expenditures. Our definition of free cash flow excludes the operating cash flows and capital expenditures related to our discontinued operations, if any. Operating, investing, and financing cash flows of our discontinued operations, if any, are presented separately in our Consolidated Statement of Cash Flows. In our opinion, free cash flow provides useful information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends, and share repurchases. We use free cash flow, as defined, as one measure to monitor and evaluate our performance, including as a financial measure for our annual incentive compensation. Our definition of free cash flow may be different from definitions used by other companies.

Cash provided by operating activities was $364 million for the three months ended December 31, 2024, compared to $33 million for the three months ended December 31, 2023. Free cash flow was $293 million for the three months ended December 31, 2024, compared to a net outflow of $35 million for the three months ended December 31, 2023. The year over year increases in cash provided by operating activities and free cash flow were primarily due no