Company: ROK
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001024478-25-000035
Chunk: 110

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 110
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 in fair value of investments0.03 (0.02)0.03 (0.05)Tax effect of change in fair value of investments(0.01)— (0.01)0.01 Adjusted EPS$2.45 $2.50 $4.29 $4.54 Effective tax rate17.1 %14.5 %16.8 %16.1 %Tax effect of non-operating pension and postretirement benefit credit— %(0.1)%— %— %Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation0.5 %0.3 %0.7 %0.1 %Tax effect of change in fair value of investments0.1 %0.1 %0.1 %— %Adjusted effective tax rate17.7 %14.8 %17.6 %16.2 %

34

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):

 Six Months EndedMarch 31, 20252024Cash provided by (used for)Operating activities$563 $153 Investing activities(122)(876)Financing activities(445)109 Effect of exchange rate changes on cash(17)5 Decrease in cash and cash equivalents$(21)$(609)

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

 Six Months EndedMarch 31, 20252024Cash provided by operating activities$563 $153 Capital expenditures(99)(119)Free cash flow$464 $34 

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.