Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 100

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 4
Chunk 100
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 some of these assets and liabilities. Gains and losses on derivative financial instruments for which we do not elect hedge accounting are recognized in the Consolidated Statement of Operations in each period, based on the change in the fair value of the derivative financial instruments. At September 30, 2025, we had a U.S. dollar-equivalent gross notional amount of $799 million of foreign currency forward exchange contracts not designated as hedging instruments.The pre-tax amount of gains (losses) from forward exchange contracts not designated as hedging instruments recognized in the Consolidated Statement of Operations was (in millions):202520242023Cost of sales$(10)$3 $1 Other (expense) income9 (7)(19)Total$(1)$(4)$(18)Fair Value of Derivative InstrumentsWe recognize all derivative financial instruments as either assets or liabilities at fair value in the Consolidated Balance Sheet. We value our forward exchange contracts using a market approach. We use a valuation model based on inputs including forward and spot prices for currency and interest rate curves. We did not change our valuation techniques during fiscal 2025, 2024, or 2023. It is our policy to execute such instruments with major financial institutions that we believe to be creditworthy and not to enter into derivative financial instruments for speculative purposes. We diversify our foreign currency forward exchange contracts and cross-currency swaps among counterparties to minimize exposure to any one of these entities. Our foreign currency forward exchange contracts are usually denominated in currencies of major industrial countries. The U.S. dollar-equivalent gross notional amount of our forward exchange contracts totaled $1,552 million at September 30, 2025. The fair value of our derivatives and their location in our Consolidated Balance Sheet were (in millions):  Fair Value (Level 2)Derivatives Designated as Hedging InstrumentsBalance Sheet LocationSeptember 30, 2025September 30, 2024Forward exchange contractsOther current assets$4 $3 Forward exchange contractsOther assets1 1 Forward exchange contractsOther current liabilities(12)(12)Forward exchange contractsOther liabilities(3)(5)Net investment hedgesOther liabilities(22)— Total $(32)$(13)  Fair Value (Level 2)Derivatives Not Designated as Hedging InstrumentsBalance Sheet LocationSeptember 30, 2025September 30, 2024Forward exchange contractsOther current assets$3 $13 Forward exchange contractsOther current