XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.25.1

Basis of Presentation and Accounting Policies | 6 Months Ended
--- | ---
Mar. 31, 2025
Accounting Policies [Abstract] |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies In the opinion of management of Rockwell Automation, Inc. (Rockwell Automation or the Company), the unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly the financial position, results of operations, and cash flows for the periods presented and, except as otherwise indicated, such adjustments consist only of those of a normal, recurring nature. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. The results of operations for the three and six months ended March 31, 2025, are not necessarily indicative of the results for the full year. All date references to years and quarters herein refer to our fiscal year and fiscal quarter, unless otherwise stated. Receivables We record an allowance for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Receivables are recorded net of an allowance for doubtful accounts of $25 million at March 31, 2025, and $22 million at September 30, 2024. The changes to our allowance for doubtful accounts during the three and six months ended March 31, 2025 and 2024, were not material and primarily consisted of current-period provisions, write-offs charged against the allowance, recoveries collected, and foreign currency translation. Earnings Per Share The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts):
| Three Months Ended March 31, |  | Six Months Ended March 31,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net income attributable to Rockwell Automation, Inc. | $ | 252 |  |  | $ | 266 |  |  | $ | 436 |  |  | $ | 481 |
Less: Allocation to participating securities | (1) |  |  | (1) |  |  | (2) |  |  | (2) |
Net income available to common shareowners | $ | 251 |  |  | $ | 265 |  |  | $ | 434 |  |  | $ | 479 |
Basic weighted average outstanding shares | 112.9 |  |  | 114.3 |  |  | 113.0 |  |  | 114.4 |
Effect of dilutive securities |  |  |  |  |  |  |
Stock options | 0.4 |  |  | 0.5 |  |  | 0.4 |  |  | 0.6 |
Diluted weighted average outstanding shares | 113.3 |  |  | 114.8 |  |  | 113.4 |  |  | 115.0 |
Earnings per share: |  |  |  |  |  |  |
Basic | $ | 2.22 |  |  | $ | 2.32 |  |  | $ | 3.84 |  |  | $ | 4.19 |
Diluted | $ | 2.22 |  |  | $ | 2.31 |  |  | $ | 3.83 |  |  | $ | 4.17 |
For the three and six months ended March 31, 2025, there were 0.6 million and 1.3 million shares, respectively, related to share-based compensation awards that were excluded from the diluted EPS calculation because they were antidilutive. For both the three and six months ended March 31, 2024, there were 0.5 million shares related to share-based compensation awards that were excluded from the diluted EPS calculation because they were antidilutive. Non-Cash Investing and Financing Activities Capital expenditures of $19 million and $7 million were accrued within Accounts payable and Other current liabilities at March 31, 2025 and 2024, respectively. At March 31, 2025 and 2024, respectively, there was $3 million and $2 million of outstanding common stock share repurchases recorded in Accounts payable that did not settle until the next quarter. These non-cash investing and financing activities have been excluded from cash used for capital expenditures and treasury stock purchases in the Consolidated Statement of Cash Flows. Leases Supplemental cash flow information related to leases consists of (in millions):
| Six Months Ended March 31,
| 2025 |  | 2024
Right-of-use assets obtained in exchange for lease obligations |  |  |
Operating leases | $ | 24 |  |  | $ | 91 |
Finance leases | — |  |  | 5 |
In the six months ended March 31, 2025 and 2024, we realized changes in our right-of-use assets and lease liabilities, both as a result of new leases and existing leases for which we are reasonably certain to exercise future renewal options. Supplier Financing Arrangements The Company maintains agreements with third-party financial institutions that offer voluntary supply chain financing (SCF) programs to suppliers. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between suppliers and the Company. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. The Company agrees on commercial terms for the goods and services procured from suppliers, including prices, quantities, and payment terms, regardless of whether the supplier elects to participate in the SCF programs. A supplier’s voluntary participation in the SCF programs has no bearing on the Company's payment terms and the Company has no economic interest in a supplier’s decision to participate in the SCF programs. The Company agrees to pay participating third-party financial institutions the stated amount of confirmed invoices from suppliers on the original maturity dates of the invoices. Amounts outstanding related to SCF programs are included in Accounts payable in the Consolidated Balance Sheet and in changes in Accounts payable on the Consolidated Statement of Cash Flows. Accounts payable included approximately $56 million and $77 million related to these agreements as of March 31, 2025, and September 30, 2024, respectively. The impact of these programs is not material to the Company's overall liquidity. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, which requires expanded interim and annual disclosures of segment information regularly provided to the chief operating decision maker (CODM), the title and position of the CODM, an explanation of how the CODM uses the information in assessing segment performance and deciding how to allocate resources, and an amount for other segment items by reportable segment and a description of its composition. We will expand our disclosures in our 2025 Annual Report on Form 10-K when the standard becomes effective for us. In December 2023, the FASB issued ASU 2023-09, which requires expanded annual disclosures to the income tax rate reconciliation and the amount of income taxes paid. We will expand our disclosures in our 2026 Annual Report on Form 10-K when the standard becomes effective for us. In November 2024, the FASB issued ASU 2024-03, which requires disclosure of certain expense amounts comprising Cost of sales and Selling, general and administrative expenses, as well as a qualitative description of the remaining expense amounts. We will expand our disclosures in our 2028 Annual Report on Form 10-K when the standard becomes effective for us. We do not expect any other recently issued accounting pronouncements to have a material impact on our Consolidated Financial Statements and related disclosures.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent + Details
Name: | us-gaap_BasisOfPresentationAndSignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration