Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 77

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 4
Chunk 77
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 unpaid, to be treated as participating securities and included in the computation of EPS pursuant to the two-class method. Our participating securities are composed of restricted stock and non-employee director restricted stock units.The following table reconciles basic and diluted EPS amounts (in millions, except per share amounts):202520242023Net income attributable to Rockwell Automation, Inc.$869 $953 $1,387 Less: Allocation to participating securities(2)(5)(6)Net income available to common shareowners$867 $948 $1,381 Basic weighted average outstanding shares112.7 114.0 114.8 Effect of dilutive securities   Stock options0.4 0.5 0.7 Performance shares— — 0.1 Diluted weighted average outstanding shares113.1 114.5 115.6 Earnings per share:   Basic$7.69 $8.32 $12.03 Diluted$7.67 $8.28 $11.95 Share-Based CompensationWe recognize share-based compensation expense for equity awards on a straight-line basis over the service period of the award based on the fair value of the award as of the grant date. Product and Workers’ Compensation LiabilitiesWe record accruals for product and workers’ compensation claims in the period in which they are probable and reasonably estimable. Our principal self-insurance programs include product liability and workers’ compensation where we self-insure up to a specified dollar amount. Claims exceeding this amount up to specified limits are covered by insurance policies purchased from commercial insurers. We estimate the liability for the majority of the self-insured claims using our claims experience for the periods being valued.

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Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Legacy Asbestos and Environmental MattersWe record liabilities for asbestos and environmental matters in the period in which our responsibility is probable and the costs can be reasonably estimated. We make changes to the liabilities in the periods in which the estimated costs of remediation or cost to defend and resolve claims change. If we determine that future recoveries from insurers or other third parties are probable and a right of set off exists, we record the liability net of the estimated recovery. If we determine that future recoveries from insurers or other third parties are probable but a right of set off does not exist, we record a liability for the total estimated costs of remediation or resolution of the claims and a receivable