Company: ROK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001024478-25-000083
Chunk: 22

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 June 30, 2025, and September 30, 2024, respectively.

23

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

15. Income Taxes

At the end of each interim period, we estimate a base effective tax rate that we expect for the full year based on our most recent forecast of pre-tax income, permanent book and tax differences, and global tax planning strategies. We use this base rate to provide for income taxes on a year-to-date basis, excluding the effect of significant unusual items and items that are reported net of their related tax effects in the period in which they occur.The effective tax rate was 14.3 percent and 15.8 percent for the three and nine months ended June 30, 2025, respectively, compared to 9.4 percent and 14.1 percent for the three and nine months ended June 30, 2024, respectively. The effective tax rate was lower than the U.S. statutory rate of 21 percent for the three and nine months ended June 30, 2025, and June 30, 2024, primarily due to the geographical mix of pre-tax income and discrete tax benefits.Our final payment of $97 million related to the U.S. transition tax under the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) will be paid in the second quarter of 2026 and is classified in Other current liabilities in the Consolidated Balance Sheet as of June 30, 2025. This amount was classified in Other liabilities in the Consolidated Balance Sheet as of September 30, 2024.On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant tax related provisions, such as the permanent extension of certain expiring provisions of the Tax Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates with the earliest provisions taking effect in fiscal 2025 and others beginning in fiscal 2026 and beyond. ASC 740, “Income Taxes”, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, during the three months ending September 30, 2025, the Company will continue to evaluate all deferred tax balances