Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 130

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 4
Chunk 130
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 million related to intangible assets and $161 million related to goodwill. The Company’s consolidated balance of goodwill and net intangible assets was $3,839 million and $864 million as of September 30, 2025, respectively. Following the impairment loss, $58 million of intangible assets related to Sensia remain and the goodwill balance related to Sensia has been reduced to zero as of September 30, 2025. Changes in the critical assumptions outlined above could have a significant impact on the fair value of the reporting unit, the amount of any impairment loss, or both.

We identified the impairment evaluation of goodwill and definite-lived intangible assets for the Sensia reporting unit as a critical audit matter because of the inherent subjectivity involved in management’s estimates and assumptions related to forecasts of future revenues and EBITDA margins and selection of the discount rate. The audit procedures to evaluate the reasonableness of management’s estimates and assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to forecasts of future revenues and EBITDA margins and selection of the discount rate for the Sensia reporting unit included the following, among others:

•We tested the effectiveness of controls over management’s goodwill and intangible asset impairment evaluation, including those over management’s development of forecasts of future revenues and EBITDA margins as well as the selection of the discount rate.

•We evaluated the reasonableness of management’s forecasts by comparing the forecasts to (1) historical results and (2) forecasted information included in industry reports for the Company and its peer companies, including the impact of industry-specific and economic factors on Sensia’s Oil & Gas customers.

•With the assistance of our fair value specialists, we evaluated the reasonableness of the discount rate by developing a range of independent estimates and comparing those to the discount rate used by management.

Commitments and Contingent Liabilities — Asbestos — Refer to Note 17 to the financial statements

Critical Audit Matter Description

The Company has been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos that was used in certain components of their products many years ago, including products from divested businesses for which the Company has agreed to defend and indemnify claims. As of September 30, 2025, the Company has recorded an estimated liability with respect to the Company's asbestos-related matters, including defense costs. The Company uses