Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 326

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 8
Chunk 326
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 to ineffective cash flow hedges in 2025, 2024, and 2023. At September 30, 2025, we had a U.S. dollar-equivalent gross notional amount of $753 million of foreign currency forward exchange contracts designated as cash flow hedges. The pre-tax amount of gains (losses) recorded in Other comprehensive income related to cash flow hedges that would have been recorded in the Consolidated Statement of Operations had they not been so designated was (in millions):202520242023Forward exchange contracts$7 $(21)$18 The pre-tax amount of (losses) gains reclassified from Accumulated other comprehensive income into the Consolidated Statement of Operations related to foreign currency forward exchange contracts designated as cash flow hedges, which offset the related gains and losses on the hedged items during the periods presented, was (in millions):202520242023Sales$(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