Company: ROK
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001024478-25-000010
Chunk: 88

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 rates effective during the respective period. Therefore, changes in currency exchange rates affect our reported sales. Sales by acquired businesses also affect our reported sales. We believe that organic sales, defined as sales excluding the effects of acquisitions and changes in currency exchange rates, which is a non-GAAP financial measure, provides useful information to investors because it reflects regional and operating segment performance from the activities of our businesses without the effect of acquisitions and changes in currency exchange rates. We use organic sales as one measure to monitor and evaluate our regional and operating segment performance. When we acquire businesses, we exclude sales in the current period for which there are no comparable sales in the prior period. We determine the effect of changes in currency exchange rates by translating the respective period’s sales using the same currency exchange rates that were in effect during the prior year. When we divest a business, we exclude sales in the prior period for which there are no comparable sales in the current period. Organic sales growth is calculated by comparing organic sales to reported sales in the prior year, excluding divestitures. We attribute sales to the geographic regions based on the country of destination.

The following is a reconciliation of reported sales to organic sales by geographic region (in millions):

 Three Months Ended December 31, 2024Three Months Ended December 31, 2023Reported SalesLess: Effect ofAcquisitionsEffect ofChanges inCurrencyOrganic SalesReported SalesNorth America$1,150 $2 $(3)$1,151 $1,247 Europe, Middle East, and Africa332 — (1)333 388 Asia Pacific251 — — 251 276 Latin America148 — (14)162 141 Total Company Sales$1,881 $2 $(18)$1,897 $2,052 

The following is a reconciliation of reported sales to organic sales by operating segment (in millions):

 Three Months Ended December 31, 2024Three Months Ended December 31, 2023Reported SalesLess: Effect ofAcquisitionsEffect ofChanges inCurrencyOrganic SalesReported SalesIntelligent Devices$806 $— $(9)$815 $927 Software & Control529 — (5)534 604 Lifecycle Services546 2 (4)548 521 Total Company Sales$1,881 $2 $(18)$1,897 $2,052 

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Critical Accounting Estimates

We have prepared