Company: ROK
Filing Date: 2025-11-12
Form Type: 10-K
Source: 0001024478-25-000116
Chunk: 219

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-11-12
Form: 10-K
Item: Item 6
Chunk 219
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, or a combination of cash and such shares. Stock options expire ten years after the grant date and vest ratably over three years.The per share weighted average fair value of stock options granted during the years ended September 30, 2025, 2024, and 2023, was $93.48, $85.63, and $77.62, respectively. The total intrinsic value of stock options exercised was $75 million, $27 million, and $70 million during 2025, 2024, and 2023, respectively. We estimated the fair value of each stock option on the date of grant using the Black-Scholes pricing model and the following assumptions:202520242023Average risk-free interest rate4.07 %4.22 %3.78 %Expected dividend yield1.76 %1.79 %1.82 %Expected volatility35 %34 %34 %Expected term (years)4.94.84.8The average risk-free interest rate is based on U.S. Treasury security rates corresponding to the expected term in effect as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of our common stock as of the grant date. We determined expected volatility using daily historical volatility of our stock price over the most recent period corresponding to the expected term as of the grant date. We determined the expected term of the stock options using historical data adjusted for the estimated exercise dates of unexercised options.A summary of stock option activity for the year ended September 30, 2025, is as follows:Shares(in thousands)Wtd. Avg.ExercisePriceWtd. Avg.RemainingContractualTerm (years)AggregateIntrinsic Valueof In-The-MoneyOptions(in millions)Outstanding at October 1, 20241,884 $214.03   Granted190 297.07   Exercised(571)177.76   Forfeited(32)279.45   Canceled(18)335.27   Outstanding at September 30, 20251,453 233.92 5.3$168 Exercisable at September 30, 20251,085 216.77 4.2144 The amount of options expected to vest is materially consistent with those outstanding and not yet exercisable.Performance Share Awards

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