Company: ROK
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001024478-25-000010
Chunk: 62

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 $43 million as of the acquisition date and as of December 31, 2023. We updated the fair value measures during the second quarter of 2024 to reflect actual contingent consideration earned during the first performance period. In the fourth quarter of 2024 and first quarter of 2025, we assessed the probability outcome model for the second performance period and determined that the fair value was $5 million as of both September 30, 2024, and December 31, 2024.The following table presents the fair value of the contingent consideration in the Consolidated Balance Sheet (in millions):Period ended February 29, 2024Period ended February 28, 2025TotalContingent consideration as of December 31, 2023$17 $26 $43 Adjustment for earnout achieved for first performance period(7)— (7)Adjustment to fair value— (21)(21)Payment of earnout achieved for first performance period(10)— (10)Contingent consideration as of September 30, 2024, and December 31, 2024$— $5 $5 The consideration for the amount earned for the first performance period was paid during the third quarter of 2024. The contingent consideration for the second performance period is included in Other current liabilities at December 31, 2024, and September 30, 2024. Any amount earned for the second performance period will be paid during the third quarter of 2025. 

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Table of ContentsROCKWELL AUTOMATION, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)(Unaudited)

In November 2023, we acquired Verve Industrial Protection (Verve), a cybersecurity software and services company that focuses specifically on industrial environments. We recorded assets acquired and liabilities assumed in connection with this acquisition based on their estimated fair values as of the acquisition date of November 1, 2023. The aggregate purchase price allocation is as follows (in millions):Purchase Price AllocationReceivables$8 Goodwill 133 Intangible assets47 All other assets1 Total assets acquired189 Less: Liabilities assumed(6)Net assets acquired$183 Purchase ConsiderationTotal purchase consideration, net of cash acquired$183 We assigned the full amount of goodwill to our Lifecycle Services segment. We expect the goodwill to be deductible for tax purposes. The goodwill recorded represents intangible assets that do not