Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 213

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 6
Chunk 213
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 recorded for the following periods were (in millions): 202520242023Net gain on equity securities (level 1)$— $— $281 Net loss on equity securities (other)(3)(1)(1)Equity method gain (loss) on Other investments— 1 (1)Change in fair value of investments(3)— 279 Total net realized gain on equity securities— — 281 Total net unrealized loss on equity securities$(3)$(1)$(1)Net gain on equity securities (level 1) in 2023 consisted of the change in fair value and gain on sale of shares of PTC Inc. (PTC) common stock (PTC Shares). As of September 30, 2023, all PTC Shares had been sold.Refer to Note 1 for further information regarding levels in the fair value hierarchy. We did not have any transfers between levels of fair value measurements during the periods presented.

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Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

11. Derivative Instruments

We use foreign currency forward exchange contracts and cross-currency swaps to manage certain foreign currency risks. We have also used treasury locks to manage risks associated with interest rate fluctuations. The following information explains how we use and value these types of derivative instruments and how they impact our consolidated financial statements.Additional information related to the impacts of cash flow hedges on Other comprehensive income is included in Note 12.Types of Derivative Instruments and Hedging ActivitiesCash Flow HedgesWe enter into foreign currency forward exchange contracts to hedge our exposure to foreign currency exchange rate variability in the expected future cash flows associated with certain third-party and intercompany transactions denominated in foreign currencies forecasted to occur within the next two years (cash flow hedges). We report in Other comprehensive income the effective portion of the gain or loss on derivative financial instruments that we designate and that qualify as cash flow hedges. We reclassify these gains or losses into earnings in the same periods when the hedged transactions affect earnings. To the extent forward exchange contracts designated as cash flow hedges are ineffective, changes in value are recorded in earnings through the maturity date. There was no impact on earnings due to ineffective cash flow hedges in 2025, 2024, and 2023. At September 30, 2025, we had a U.S. dollar-equivalent gross notional amount of $753 million of foreign currency forward exchange contracts designated as cash flow h