Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 99

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 4
Chunk 99
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 cash flow hedges, which offset the related gains and losses on the hedged items during the periods presented, was (in millions):202520242023Sales$(1)$2 $6 Cost of sales7 19 33 Selling, general and administrative expenses— — — Interest expense(4)(4)(4)Total$2 $17 $35 Approximately $15 million of pre-tax net unrealized losses on cash flow hedges as of September 30, 2025, will be reclassified into earnings during the next twelve months. We expect that these net unrealized losses will be offset when the hedged items are recognized in earnings.Net Investment HedgesWe use cross-currency swap contracts to hedge portions of our net investments in non-U.S. subsidiaries (net investment hedges) against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar (USD). The changes in the spot rates of these instruments are recorded in Accumulated other comprehensive loss within Shareowners’ equity, partially offsetting gains and losses recorded on our net investments globally. Any ineffective portions of net investment hedges are reclassified from Accumulated other comprehensive loss into earnings during the period of change. There was no impact on earnings due to ineffective net investment hedges in 2025, 2024, or 2023. The interest component from these swaps is recorded in interest expense on the accompanying Consolidated Statement of Operations consistent with the classification of interest expense attributable to the underlying debt. In 2025, we entered into several cross-currency swaps that we designated as after-tax net investment hedges of certain Euro (EUR), Swiss Franc (CHF), and Chinese Yuan (CNY) functional currency denominated subsidiaries. The cross-currency swaps exchange fixed-rate payments in EUR, CHF, and Chinese Yuan Renminbi (RMB) for fixed-rate receipts in USD. At September 30, 2025, the USD-equivalent gross notional amount of these cross-currency swaps totaled $800 million.

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Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Derivatives Not Designated as Hedging InstrumentsCertain of our locations have assets and liabilities denominated in currencies other than their functional currencies resulting from intercompany loans and other transactions with third parties denominated in foreign currencies. We enter into foreign currency forward exchange contracts that we do not designate as hedging instruments to offset the transaction gains or losses associated with