December 31,
2017 September 30,
2017
Short-term investments $ 1,100.5
$ 1,124.6
Other assets 274.1
263.0
Total $ 1,374.6
$ 1,387.6

ROCKWELL AUTOMATION, INC.

NOTES TO ~~CONDENSED~~ CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Equity Securities

~~8. Investments (continued)~~Equity securities (level 1) consist of 6,070,905 and 8,879,717 shares of PTC Inc. ("PTC") common stock (the "PTC Shares") at June 30, 2023, and September 30, 2022, respectively. The PTC Shares are classified as level 1 in the fair value hierarchy, as described below, and are recognized at fair value in the Consolidated Balance Sheet using the most recent closing price of PTC common stock quoted on Nasdaq.

~~Fair Value~~Equity securities (other) consist of ~~Investments~~various securities that do not have a readily determinable fair value, which we account for using the measurement alternative under U.S. GAAP. These securities are recorded at the investment cost, less impairment, plus or minus observable price changes (in orderly transactions) of an identical or similar investment of the same issuer in the Consolidated Balance Sheet. Observable price changes are classified as level 2 in the fair value hierarchy, as described below. The carrying values at June 30, 2023, and September 30, 2022, include cumulative upward adjustments from observed price changes of $17.2 million.

We record gains and losses on investments within the Change in fair value of investments line in the Consolidated Statement of Operations. The gains and losses on investments we recorded for the following periods were (in millions):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Net gain (loss) on equity securities (level 1)	$	86.4	$	(8.4)	$	290.4	$	(136.0)
Net gain on equity securities (other)	—		3.2		—		11.9
Equity method loss on Other investments	(0.7)		—		(1.1)		(14.2)
Change in fair value of investments	85.7		(5.2)		289.3		(138.3)

Total net realized gain on equity securities	36.9		12.7		89.8		12.9
Total net unrealized gain (loss) on equity securities	$	49.5	$	(17.9)	$	200.6	$	(137.0)

U.S. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. U.S. GAAP also classifies the inputs used to measure fair value into the following hierarchy:



Level 1:						Quoted prices in active markets for identical assets or liabilities.



Level 2:						Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.



Level 3:						Unobservable inputs for the asset or liability.

We recognize all available-for-sale investments at fair value in the Condensed Consolidated Balance Sheet. The valuation methodologies used for our investments measured at fair value are described as follows.

~~Certificates of deposit and time deposits~~ ~~— These investments are stated at cost, which approximates fair value.~~

~~Commercial paper~~ ~~— These investments are stated at amortized cost, which approximates fair value.~~

~~Corporate debt securities~~ — Valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks.

~~Government securities~~ — Valued at the most recent closing price on the active market on which the individual securities are traded or, absent an active market, utilizing observable inputs such as closing prices in less frequently traded markets.

~~Asset-backed securities~~ — Valued using a discounted cash flow approach that maximizes observable inputs, such as current yields of benchmark instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. We did not ~~hold any Level 3 investments or~~ have any transfers between levels of fair value measurements during the ~~periods~~period presented.

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO ~~CONDENSED~~ CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

~~8. Investments (continued)~~

~~Fair values of our investments were (in millions):~~

December 31, 2017

Level 1 Level 2 Level 3 Total
Certificates of deposit and time deposits $ —
$ 975.1
$ —
$ 975.1
Commercial paper —
26.4
—
26.4
Corporate debt securities —
201.0
—
201.0
Government securities 106.1
17.8
—
123.9
Asset-backed securities —
48.2
—
48.2
Total $ 106.1
$ 1,268.5
$ —
$ 1,374.6

September 30, 2017
Level 1 Level 2 Level 3 Total
Certificates of deposit and time deposits $ —
$ 1,005.3
$ —
$ 1,005.3
Commercial paper —
20.3
—
20.3
Corporate debt securities —
199.4
—
199.4
Government securities 98.9
17.9
—
116.8
Asset-backed securities —
45.8
—
45.8
Total $ 98.9
$ 1,288.7
$ —
$ 1,387.6

9.10. Retirement Benefits

The components of net periodic pension and postretirement benefit cost ~~(income) are~~were (in millions):


	Pension Benefits
	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Service cost	$	9.4	$	15.4	$	30.6	$	56.1
Interest cost	35.3		34.5		114.0		99.3
Expected return on plan assets	(44.0)		(56.4)		(147.0)		(175.1)
Amortization of prior service cost	0.1		—		0.1		0.8
Amortization of net actuarial loss (gain)	0.2		10.4		(1.8)		55.0
Settlement and curtailment charges (benefit)	2.2		(0.7)		120.1		24.2
Net periodic pension benefit cost	$	3.2	$	3.2	$	116.0	$	60.3


	Other Postretirement Benefits
	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Service cost	$	0.2	$	0.2	$	0.4	$	0.6
Interest cost	0.6		0.3		1.7		0.9
Amortization of prior service credit	—		(0.2)		—		(0.6)
Amortization of net actuarial loss	0.1		0.2		0.4		0.5
Net periodic postretirement benefit cost	$	0.9	$	0.5	$	2.5	$	1.4

The service cost component is included in Cost of sales and Selling, general and administrative expenses in the Consolidated Statement of Operations. All other components are included in Other income (expense) in the Consolidated Statement of Operations.

In March and June 2023, we remeasured our U.S. pension plan assets and liabilities in accordance with U.S. GAAP settlement accounting rules. For the three and nine months ended June 30, 2023, we recognized settlement expense of $2.2 million and $120.1 million, respectively. Settlement accounting was required due to the amount of lump-sum payments made by the U.S. pension plan to retirees, current employees electing an in-service distribution, and other separated employees. Remeasurement of our U.S. pension plan assets and liabilities increased our net benefit obligation by $25.3 million in 2023. The discount rate used for the remeasurement as of June 30, 2023, was 5.45 percent compared to 5.65 percent at our September 30, 2022, annual measurement date.

11. Other Income (Expense)

The components of Other income (expense) were (in millions):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Interest income	$	1.5	$	0.6	$	4.1	$	1.6
Royalty income	3.4		3.1		9.3		8.6
Legacy product liability and environmental (charges) benefit	(4.8)		0.8		(10.7)		(6.6)
Non-operating pension and postretirement credit (cost)	5.5		11.9		(87.5)		(5.0)

Other	0.9		3.4		1.5		0.4
Other income (expense)	$	6.5	$	19.8	$	(83.3)	$	(1.0)

Pension Benefits
Three Months Ended
December 31,
2017 2016
Service cost $ 22.2
$ 24.1
Interest cost 38.8

37.8
Expected return on plan assets (61.2 )
(56.2 )
Amortization:
Prior service cost (credit) 0.2
(0.8 )
Net actuarial loss 28.3

38.0
Settlements —
0.2
Net periodic benefit cost $ 28.3
$ 43.1

Other Postretirement Benefits
Three Months Ended
December 31,
2017 2016
Service cost $ 0.3
$ 0.3
Interest cost 0.6
0.6
Amortization:
Prior service credit (1.3 ) (1.5 )
Net actuarial loss 0.4
0.5
Net periodic benefit cost (income) $ —
$ (0.1 )

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO ~~CONDENSED~~ CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

~~10.~~12. Accumulated Other Comprehensive Loss

Changes in ~~accumulated~~Accumulated other comprehensive loss attributable to Rockwell Automation by component for the ~~three~~ ~~months ended December 31, 2017,~~following periods were (in millions):



Three Months Ended June 30, 2023	Pension and other postretirement benefit plan adjustments, net of tax		Accumulated currency translation adjustments, net of tax		Net unrealized losses on cash flow hedges, net of tax		Total accumulated other comprehensive loss, net of tax
Balance as of March 31, 2023	$	(417.2)	$	(353.4)	$	(25.5)	$	(796.1)
Other comprehensive income (loss) before reclassifications	38.6		35.6		(0.4)		73.8
Amounts reclassified from accumulated other comprehensive loss	2.1		—		(5.3)		(3.2)
Other comprehensive income (loss)	40.7		35.6		(5.7)		70.6
Balance as of June 30, 2023	$	(376.5)	$	(317.8)	$	(31.2)	$	(725.5)

Nine Months Ended June 30, 2023	Pension and other postretirement benefit plan adjustments, net of tax		Accumulated currency translation adjustments, net of tax		Net unrealized losses on cash flow hedges, net of tax		Total accumulated other comprehensive loss, net of tax
Balance as of September 30, 2022	$	(447.8)	$	(465.0)	$	(4.7)	$	(917.5)
Other comprehensive (loss) income before reclassifications	(18.8)		147.2		(6.3)		122.1
Amounts reclassified from accumulated other comprehensive loss	90.1		—		(20.2)		69.9
Other comprehensive income (loss)	71.3		147.2		(26.5)		192.0

Balance as of June 30, 2023	$	(376.5)	$	(317.8)	$	(31.2)	$	(725.5)



Three Months Ended June 30, 2022	Pension and other postretirement benefit plan adjustments, net of tax		Accumulated currency translation adjustments, net of tax		Net unrealized losses on cash flow hedges, net of tax		Total accumulated other comprehensive loss, net of tax
Balance as of March 31, 2022	$	(489.8)	$	(309.7)	$	(33.6)	$	(833.1)
Other comprehensive (loss) income before reclassifications	(81.0)		(61.7)		15.5		(127.2)
Amounts reclassified from accumulated other comprehensive loss	8.0		—		(5.2)		2.8
Other comprehensive (loss) income	(73.0)		(61.7)		10.3		(124.4)
Balance as of June 30, 2022	$	(562.8)	$	(371.4)	$	(23.3)	$	(957.5)



Nine Months Ended June 30, 2022	Pension and other postretirement benefit plan adjustments, net of tax		Accumulated currency translation adjustments, net of tax		Net unrealized losses on cash flow hedges, net of tax		Total accumulated other comprehensive loss, net of tax
Balance at September 30, 2021	$	(694.1)	$	(280.1)	$	(42.9)	$	(1,017.1)
Other comprehensive income (loss) before reclassifications	70.7		(91.3)		24.2		3.6
Amounts reclassified from accumulated other comprehensive loss	60.6		—		(4.6)		56.0
Other comprehensive income (loss)	131.3		(91.3)		19.6		59.6
Balance as of June 30, 2022	$	(562.8)	$	(371.4)	$	(23.3)	$	(957.5)

Three Months Ended December 31, 2017
Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Net unrealized gains (losses) on available-for-sale investments, net of tax Total accumulated other comprehensive loss, net of tax
Balance as of September 30, 2017 $ (927.0 ) $ (237.7 ) $ (14.4 ) $ (0.1 ) $ (1,179.2 )
Other comprehensive loss before reclassifications —
(16.1 ) (3.4 ) (1.1 ) (20.6 )
Amounts reclassified from accumulated other comprehensive loss 20.2
—
3.9
—
24.1
Other comprehensive income (loss) 20.2
(16.1 ) 0.5
(1.1 ) 3.5
Balance as of December 31, 2017 $ (906.8 ) $ (253.8 ) $ (13.9 )
$ (1.2 ) $ (1,175.7 )

~~Changes in accumulated other comprehensive loss by component for the~~ ~~three~~ ~~months ended December 31, 2016, were (in millions):~~

Three Months Ended December 31, 2016
Pension and other postretirement benefit plan adjustments, net of tax Accumulated currency translation adjustments, net of tax Net unrealized gains (losses) on cash flow hedges, net of tax Net unrealized gains (losses) on available-for-sale investments, net of tax Total accumulated other comprehensive loss, net of tax
Balance as of September 30, 2016 $ (1,239.8 ) $ (294.9 ) $ (4.1 ) $ —
$ (1,538.8 )
Other comprehensive income (loss) before reclassifications 0.7
(86.2 ) 11.8
—
(73.7 )
Amounts reclassified from accumulated other comprehensive loss 23.8
—
(0.2 ) —
23.6
Other comprehensive income (loss) 24.5
(86.2 ) 11.6
—
(50.1 )
Balance as of December 31, 2016 $ (1,215.3 ) $ (381.1 ) $ 7.5
$ —

$ (1,588.9 )

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO ~~CONDENSED~~ CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

~~10. Accumulated Other Comprehensive Loss (continued)~~

The reclassifications out of ~~accumulated~~Accumulated other comprehensive loss toin the ~~Condensed~~ Consolidated Statement of Operations were (in millions):


	Three Months Ended June 30,				Nine Months Ended June 30,				Affected Line in the Consolidated Statement of Operations
	2023		2022		2023		2022
Pension and other postretirement benefit plan adjustments (1)
Amortization of prior service cost (credit)	$	0.1	$	(0.2)	$	0.1	$	0.2	Other income (expense)
Amortization of net actuarial loss (gain)	0.3		10.6		(1.4)		55.5		Other income (expense)
Settlement and curtailment charges (benefit)	2.2		(0.7)		120.1		24.2		Other income (expense)
	2.6		9.7		118.8		79.9		Income before income taxes
	(0.5)		(1.7)		(28.7)		(19.3)		Income tax provision
	$	2.1	$	8.0	$	90.1	$	60.6	Net income attributable to Rockwell Automation, Inc.

Net unrealized (gains) losses on cash flow hedges
Forward exchange contracts	$	(1.9)	$	(0.5)	$	(4.6)	$	(0.2)	Sales
Forward exchange contracts	(6.3)		(7.9)		(25.7)		(9.5)		Cost of sales
Forward exchange contracts	—		0.3		(0.1)		0.4		Selling, general and administrative expenses
Treasury locks related to 2019 and 2021 debt issuances	0.9		0.9		2.7		2.7		Interest expense
	(7.3)		(7.2)		(27.7)		(6.6)		Income before income taxes
	2.0		2.0		7.5		2.0		Income tax provision
	$	(5.3)	$	(5.2)	$	(20.2)	$	(4.6)	Net income attributable to Rockwell Automation, Inc.
Total reclassifications	$	(3.2)	$	2.8	$	69.9	$	56.0	Net income attributable to Rockwell Automation, Inc.

Three Months Ended
December 31, Affected Line in the Condensed Consolidated Statement of Operations
2017 2016
Pension and other postretirement benefit plan adjustments:
Amortization of prior service credit $ (1.1 ) $ (2.3 ) (a)
Amortization of net actuarial loss 28.7
38.5
(a)
Settlements —
0.2
(a)
27.6
36.4
Income before income taxes
(7.4 ) (12.6 ) Income tax provision
$ 20.2
$ 23.8
Net income

Net unrealized losses (gains) on cash flow hedges:
Forward exchange contracts $ (0.5 ) $ 0.5
Sales
Forward exchange contracts 5.9
(1.0 ) Cost of sales
Forward exchange contracts (0.2 ) 0.3
Selling, general and administrative expenses
5.2
(0.2 ) Income before income taxes
(1.3 ) —
Income tax provision
$ 3.9
$ (0.2 ) Net income

Total reclassifications $ 24.1
$ 23.6
Net income

~~(a) Reclassified from accumulated other comprehensive loss into cost of sales and selling, general and administrative expenses.~~(1) These components are included in the computation of net periodic benefit ~~cost (income).~~cost. See Note 910 for further information.

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO ~~CONDENSED~~ CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

~~11.~~13. Commitments and Contingent Liabilities

Various lawsuits, claims, and proceedings have been or may be instituted or asserted against us relating to the conduct of our business, including those pertaining to product liability, environmental, safety and health, intellectual property, employment, and contract matters. Although the outcome of litigation cannot be predicted with certainty and some lawsuits, claims, or proceedings may be disposed of unfavorably to us, we believe the disposition of matters that are pending or have been asserted will not have a material effect on our business, financial condition, or results of operations. The following outlines additional background for obligations associated with asbestos, divested businesses, and intellectual property.

We (including our subsidiaries) have been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos that was used in certain components of our products many years ~~ago.~~ago, including products from divested businesses for which we have agreed to defend and indemnify claims. Currently there are ~~a few thousand claimants in~~ lawsuits that name us as defendants, together with hundreds of other companies. In some cases, the claims involve products from divested businesses, and we are indemnified for most of the costs. However, we have agreed to defend and indemnify asbestos claims associated with products manufactured or sold by our former Dodge mechanical and Reliance Electric motors and motor repair services businesses prior to their divestiture by us, which occurred on January 31, 2007. We are also responsible for half of the costs and liabilities associated with asbestos cases against the former Rockwell International Corporation’s divested measurement and flow control business. But in all cases, for those claimants who do show that they worked with our products or products of divested businesses for which we are responsible, we nevertheless believe we have meritorious defenses, in substantial part due to the integrity of the products, the encapsulated nature of any asbestos-containing components, and the lack of any impairing medical condition ~~on the part of many claimants.~~caused by our products. We defend those cases vigorously. Historically, we have been dismissed from the vast majority of these claims with no payment to claimants.

WeAdditionally, we have maintained insurance coverage that ~~we believe covers~~includes indemnity and defense costs, over and above self-insured retentions, for ~~claims arising from our former Allen-Bradley subsidiary. Our insurance carrier entered into a cost share agreement with us to pay the~~many of these claims. We believe these arrangements will provide substantial ~~majority of~~coverage for future defense and indemnity costs for ~~Allen-Bradley asbestos claims. We believe that this arrangement will continue to provide coverage for Allen-Bradley asbestos claims throughout the remaining life of the asbestos liability.~~

We also have rights to historic insurance policies that provide indemnity and defense costs, over and above self-insured retentions, for claims arising out of certain asbestos liabilities relating to the divested measurement and flow control business. We initiated litigation against several insurers to pursue coverage for these claims, subject to each carrier's policy limits, and the case is now pending in Los Angeles County Superior Court. In September 2016, we entered into settlement agreements with certain insurance company defendants, and we continue to pursue our claims against the remaining defendants. We believe these settlement agreements will continue to provide partial coverage for these asbestos claims ~~throughout~~for many years into the ~~remaining life of asbestos liability.~~

future. The uncertainties of asbestos claim litigation make it difficult to predict accurately the ultimate outcome of asbestos claims. That uncertainty is increased by the possibility of adverse rulings or new legislation affecting asbestos claim litigation or the settlement process. Subject to these uncertainties and based on our experience defending asbestos claims, we do not believe these lawsuits will have a material effect on our business, financial condition, or results of operations.

We have, from time to time, divested certain of our businesses. In connection with these divestitures, certain lawsuits, claims, and proceedings may be instituted or asserted against us related to the period that we owned the businesses, either because we agreed to retain certain liabilities related to these periods or because such liabilities fall upon us by operation of law. In some instances, the divested business has assumed the liabilities; however, it is possible that we might be responsible ~~for satisfying~~to satisfy those liabilities if the divested business is unable to do so. We do not believe these liabilities will have a material effect on our business, financial condition, or results of operations.

In connection with the spin-offs of our former automotive business, semiconductor systems business and avionics and communications business, the spun-off companies have agreed to indemnify us for substantially all contingent liabilities related to the respective businesses, including environmental and intellectual property matters.

In conjunction with the sale of our Dodge mechanical and Reliance Electric motors and motor repair services businesses, we agreed to indemnify Baldor Electric Company for costs and damages related to certain legal, legacy environmental and asbestos matters of these businesses arising before January 31, 2007, for which the maximum exposure would be capped at the amount received for the sale.

~~Table of Contents~~

~~ROCKWELL AUTOMATION, INC.~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(Unaudited)~~

~~11. Commitments and Contingent Liabilities (continued)~~

In many countries we provide a limited intellectual property indemnity as part of our terms and conditions of ~~sale. We also~~sale and at times ~~provide limited intellectual property indemnities~~ in other contracts with third ~~parties, such as contracts concerning the development and manufacture of our products.~~parties. As of ~~December 31, 2017~~,June 30, 2023, we were not aware of any material indemnification claims ~~where an unfavorable outcome was~~that were probable or reasonably ~~possible.~~possible of an unfavorable outcome. Historically, claims that have been made under the indemnification agreements have not had a material impact on our business, financial condition, or results of operations; however, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our business, financial condition, or results of operations in a particular period.

~~12.~~

Table of Contents

ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

14. Income Taxes

At the end of each interim period, we estimate a base effective tax rate that we expect for the full ~~fiscal~~ 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.

~~Our base rate reflects a change in the U.S. federal statutory rate from 35 percent to 21 percent resulting from the enactment of the~~ ~~Tax Cuts and Jobs Act of 2017~~ (the “Tax Act”) on December 22, 2017. The rate change is effective for us at the beginning of our fiscal year, using a blended rate for the annual period. As a result, the blended statutory tax rate for our fiscal year 2018 is 24.53 percent.

The effective tax rate was ~~179.4~~15.5 percent and 16.9 percent in the three and nine months ended ~~December 31, 2017,~~June 30, 2023, respectively, compared to ~~16.7~~14.4 percent and 12.7 percent in the three and nine months ended December 31, 2016. The effective tax rate was higher than the U.S. statutory rate of 24.53 percent in the three months ended December 31, 2017, due to discrete tax expenses ($479.7 million or 161.1 percent) resulting from the enactment of the Tax Act which are discussed below.June 30, 2022, respectively. The effective tax rate was lower than the U.S. statutory rate of 3521 percent in the three and nine months ended ~~December 31, 2016~~June 30, 2023, primarily ~~because we benefited from lower~~due to non-U.S. tax rates and ~~we also realized a benefit from~~other discrete ~~tax items.~~

benefits. The ~~Tax Act requires us to revalue our existing U.S. deferred tax balance to reflect the lower statutory~~effective tax rate was lower than the U.S. statutory rate of 21 percent in the three and ~~pay a one-time transition~~nine months ended June 30, 2022, primarily due to non-U.S. tax ~~on earnings~~rates and other discrete benefits.

An income tax liability of certain foreign subsidiaries that were previously deferred from U.S. tax. At December 31, 2017, we have not completed our accounting for the tax effects of the Tax Act; however, we have made reasonable estimates of its effects on our existing U.S. deferred tax balance$175.3 million and ~~the transition tax as discussed in more detail below. As a result, we recorded a provisional amount of $94.2~~$233.7 million related to the ~~effects on our~~ U.S. ~~deferred tax balance and a provisional amount of $385.5 million related to the~~ transition tax ~~both~~under the Tax Cuts and Jobs Act of ~~which are included as a component of income tax expense from continuing operations. Income taxes~~2017 (the "Tax Act") that is payable ~~of $381.2 million related to the transition tax are~~greater than 12 months after June 30, 2023, and September 30, 2022, is recorded ~~within other~~in Other liabilities in the ~~Condensed~~ Consolidated Balance ~~Sheet because they are payable greater than twelve months from December 31, 2017.~~

~~Provisional Amounts~~

We revalued our U.S. deferred tax assets and liabilities based on the rate at which they are expected to reverse in the future, which is either 24.53 percent for reversals in 2018 or 21 percent for reversals in 2019 and subsequent years. However, we are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the valuation of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the revaluation of our U.S. deferred tax balance was $94.2 million.

The transition tax is based on our total post-1986 earnings and profits (“E&P”) that were previously deferred from U.S. income tax. We recorded a provisional amount for the transition tax liability for all of our foreign subsidiaries, resulting in an increase in income tax expense of $385.5 million. The Tax Act requires the transition tax to be computed based upon total post-1986 E&P at December 31, 2017, which requires us to make reasonable estimates given our September 30 fiscal year.

The transition tax is applied to the balance of post-1986 E&P at rates of 15.5 percent for cash assets (as defined in the Tax Act) and 8 percent for non-cash assets measured at the higher of the balance at September 30, 2018 or the average of the ending balances at September 30, 2016, and September 30, 2017. Our reasonable estimates will change as a result of adjustments impacting E&P, and distributions and other transactions impacting cash. The Company anticipates that it will complete its accounting for the transition tax at December 31, 2018. These uncertainties form the basis for the Company’s provisional reporting based upon reasonable estimates at December 31, 2017.

~~Table of Contents~~

~~ROCKWELL AUTOMATION, INC.~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(Unaudited)~~

The Company has historically accounted for the earnings of its foreign subsidiaries as being indefinitely reinvested under ASC 740-30. As a result of the broad changes to the U.S. international tax system under the Tax Act, the Company will begin to account for substantially all of its non-U.S. subsidiaries as being immediately subject to tax other than in certain limited circumstances. The Company has provided for taxes on the balance of historic and current earnings that may be subject to foreign withholding and U.S. state taxes. For future distributions related to historic earnings, we recorded deferred tax liabilities of $60.5 million related to foreign withholding taxes, and deferred tax assets of $60.5 million related to foreign tax credits attributable to the foreign withholding taxes. These provisional amounts are presented net within deferred income tax assets in the Condensed Consolidated Balance Sheet as of December 31, 2017. We have not yet completed our assessment of whether a portion of these assets and liabilities should be presented as gross amounts.Sheet.

Unrecognized Tax Benefits

The amount of gross unrecognized tax benefits was ~~$27.6~~$7.9 million and ~~$31.1~~$3.9 million at ~~December 31, 2017,~~June 30, 2023, and September 30, ~~2017,~~2022, respectively, of which the entire amount would reduce our effective tax rate if recognized.

Accrued interest and penalties related to unrecognized tax benefits were ~~$3.9~~$0.9 million and ~~$4.0~~$1.4 million at ~~December 31, 2017,~~June 30, 2023, and September 30, ~~2017,~~2022, respectively. We recognize interest and penalties related to unrecognized tax benefits in the income tax provision.

We believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to ~~$7.4~~$2.4 million in the next 12 months as a result of the resolution of tax matters in various global jurisdictions and the lapses of statutes of limitations. If all of the unrecognized tax benefits were recognized, the net reduction to our income tax provision, including the recognition of interest and penalties and offsetting tax assets, could be up to ~~$5.6~~$3.1 million.

We conduct business globally and are routinely audited by the various tax jurisdictions in which we operate. We are no longer subject to U.S. federal income tax examinations for years before ~~2014~~2018, state and ~~are no longer subject to state,~~ local income tax examinations for years before 2014 and foreign income tax examinations for years before ~~2003~~.

2008.

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ROCKWELL AUTOMATION, INC.

NOTES TO ~~CONDENSED~~ CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

~~13.~~15. Business Segment Information

~~The following tables reflect the sales~~Sales and operating results of our reportable segments were (in millions):

Three Months Ended
December 31,
2017 2016
Sales
Architecture & Software $ 746.9
$ 696.4
Control Products & Solutions 839.7
793.9
Total $ 1,586.6
$ 1,490.3
Segment operating earnings
Architecture & Software $ 224.6
$ 208.6
Control Products & Solutions 130.9
108.0
Total 355.5
316.6
Purchase accounting depreciation and amortization (4.4 ) (5.6 )
General corporate – net (16.2 ) (14.9 )
Non-operating pension costs (5.9 ) (19.8 )
Costs related to unsolicited Emerson proposals (11.2 ) —
Interest expense (20.0 ) (18.7 )
Income before income taxes $ 297.8
$ 257.6


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Sales
Intelligent Devices	$	968.1	$	878.3	$	2,927.5	$	2,587.2
Software & Control	750.6		606.9		2,065.0		1,655.7
Lifecycle Services	520.0		483.5		1,502.6		1,391.2
Total	$	2,238.7	$	1,968.7	$	6,495.1	$	5,634.1
Segment operating earnings
Intelligent Devices	$	163.1	$	173.2	$	579.4	$	504.4
Software & Control	261.5		190.6		678.1		439.7
Lifecycle Services	48.4		45.4		100.6		103.6
Total	473.0		409.2		1,358.1		1,047.7
Purchase accounting depreciation and amortization	(27.2)		(25.9)		(79.8)		(78.1)
Corporate and other	(32.3)		(15.6)		(88.8)		(69.6)
Non-operating pension and postretirement credit (cost)	5.5		11.9		(87.5)		(5.0)
Change in fair value of investments	85.7		(5.2)		289.3		(138.3)

Interest expense, net	(32.9)		(30.2)		(100.2)		(88.9)
Income before income taxes	$	471.8	$	344.2	$	1,291.1	$	667.8

Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before ~~income taxes, interest expense, costs related to corporate offices, non-operating pension costs, certain corporate initiatives, gains and losses from the disposition of businesses and~~ purchase accounting depreciation and ~~amortization. We incurred $11.2 million~~amortization, corporate and other, non-operating pension and postretirement benefit credit (cost), change in fair value of ~~third-party advisory fees in connection with our evaluation of unsolicited Emerson acquisition proposals in the first quarter of 2018.~~investments, interest expense, net, and income tax provision. Depending on the product, intersegment sales within a single legal entity are either at cost or cost plus a mark-up, which does not necessarily represent a market price. Sales between legal entities are at an appropriate transfer price. We allocate costs related to shared segment operating activities to the segments ~~using a methodology~~ consistent with the ~~expected benefit.~~methodology used by management to assess segment performance.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareowners of

Rockwell Automation, Inc.

Milwaukee, Wisconsin

Results of Review of Interim Financial Information

We have reviewed the accompanying ~~condensed~~ consolidated balance sheet of Rockwell Automation, Inc. and subsidiaries (the ~~“Company”~~"Company") as of ~~December 31, 2017, and~~June 30, 2023, the related ~~condensed~~ consolidated statements of operations, ~~and~~ comprehensive ~~(loss)~~ income, and shareowners’ equity for the three-month and nine-month periods ended June 30, 2023 and 2022, and of cash flows for the ~~three-month~~nine-month periods ended ~~December 31, 2017~~June 30, 2023 and ~~2016~~2022, and the related notes (collectively referred to as the "interim financial information"). ~~These condensed consolidated~~Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial ~~statements are~~information for it to be in conformity with accounting principles generally accepted in the ~~responsibility~~United States of ~~the Company’s management.~~America.

We ~~conducted our reviews~~have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States). (PCAOB), the consolidated balance sheet of the Company as of September 30, 2022, and the related consolidated statements of operations, comprehensive income, cash flows, and shareowners’ equity for the year then ended (not presented herein); and in our report dated November 8, 2022, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of September 30, 2022, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the ~~Public Company Accounting Oversight Board (United States),~~PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to such condensed consolidated interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Rockwell Automation, Inc. and subsidiaries as of September 30, 2017, and the related consolidated statements of operations, comprehensive income, cash flows, and shareowners’ equity for the year then ended (not presented herein); and in our report dated November 15, 2017, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of ~~September 30, 2017~~ ~~is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.~~

/s/ DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

~~January 31, 2018~~August 1, 2023

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~~ROCKWELL AUTOMATION, INC.~~

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains statements (including certain projections and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Words such as “believe”, “estimate”, “project”, “plan”, “expect”, “anticipate”, “will”, “intend”, and other similar expressions may identify forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, many of which are beyond our control, including but not limited to:

•the availability and price of components and materials;

•macroeconomic factors, including inflation, global and regional business conditions ~~the availability and cost of capital,~~(including adverse impacts in certain markets, such as Oil & Gas), commodity prices, currency exchange rates, the cyclical nature of our customers’ capital spending, and sovereign debt ~~concerns~~concerns;

•the severity and ~~currency exchange rates;~~duration of disruptions to our business due to pandemics (including the COVID-19 pandemic), natural disasters (including those as a result of climate change), acts of war (including the Russia and Ukraine conflict), strikes, terrorism, social unrest or other causes, including the impacts of the COVID-19 pandemic and efforts to manage it on the global economy, liquidity and financial markets, demand for our hardware and software products, solutions, and services, our supply chain, our work force, our liquidity, and the value of the assets we own;

•our ability to attract, develop, and retain qualified personnel;

•the availability, effectiveness, and security of our information technology systems;

•our ability to manage and mitigate the risk related to security vulnerabilities and breaches of our hardware and software products, solutions, and services;

•the successful integration and management of strategic transactions and achievement of the expected benefits of these transactions;

•laws, regulations, and governmental policies affecting our activities in the countries where we do ~~business;~~business, including those related to tariffs, taxation, trade controls (including sanctions placed on Russia), cybersecurity, and climate change;

•the successful development of advanced technologies and demand for and market acceptance of new and existing hardware and software products;

~~the availability, effectiveness and security of our information technology systems;~~

~~competitive products, solutions and services and pricing pressures, and our ability to provide high quality products, solutions and services;~~

~~a disruption of our business due to natural disasters, pandemics, acts of war, strikes, terrorism, social unrest or other causes;~~

~~our ability to manage and mitigate the risk related to security vulnerabilities and breaches of our products, solutions and services;~~

~~intellectual property infringement claims by others and the ability to protect our intellectual property;~~

~~the uncertainty of claims by taxing authorities in the various jurisdictions where we do business;~~

~~our ability to attract, develop, and retain qualified personnel;~~

~~our ability to manage costs related to employee retirement and health care benefits;~~

~~the uncertainties of litigation, including liabilities related to the safety and security of the products, solutions and services we sell;~~

•our ability to manage and mitigate the risks associated with our solutions and services businesses;

•the successful execution of our cost productivity initiatives;

•competitive hardware and software products, solutions, and services, pricing pressures, and our ability to provide high quality products, solutions, and services;

•the availability and cost of capital;

•disruptions to our distribution channels or the failure of distributors to develop and maintain capabilities to sell our products;

•intellectual property infringement claims by others and the ~~successful integration~~ability to protect our intellectual property;

•the uncertainty of claims by taxing authorities in the various jurisdictions where we do business;

•the uncertainties of litigation, including liabilities related to the safety and ~~management~~security of ~~acquired businesses~~the hardware and ~~technologies;~~software products, solutions, and services we sell;

•risks associated with our investment in common stock of PTC Inc., including the ~~availability~~potential for volatility in our reported quarterly earnings associated with changes in the market value of such stock;

•our ability to manage costs related to employee retirement and ~~price of components~~health care benefits; and ~~materials;~~

~~the successful execution of our cost productivity initiatives; and~~

•other risks and uncertainties, including but not limited to those detailed from time to time in our Securities and Exchange Commission (SEC) filings.

These forward-looking statements reflect our beliefs as of the date of filing this report. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. See Item ~~1A,~~ 1A. Risk Factors, of our Annual Report on Form 10-K for the ~~fiscal~~ year ended September 30, ~~2017~~,2022, for more information.

Table of Contents

Non-GAAP Measures

The following discussion includes organic sales, total segment operating earnings and margin, ~~Adjusted Income, Adjusted~~adjusted income, adjusted EPS, ~~Adjusted Effective Tax Rate~~adjusted effective tax rate, and free cash flow, which are non-GAAP measures. See Supplemental Sales Information for a reconciliation of reported sales to organic sales and a discussion of why we believe this non-GAAP measure is useful to investors. See Summary of Results of ~~Operations~~Operations for a reconciliation ~~of income~~of Income before income taxes to total segment operating earnings and margin and a discussion of why we believe these ~~non-GAAP~~non-GAAP measures are useful to investors. See ~~Results of Operations~~ ~~for a reconciliation of income from continuing operations, diluted EPS from continuing operations and effective tax rate to~~ Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for a reconciliation of Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate to adjusted income, adjusted EPS, and adjusted effective tax rate, respectively, and a discussion of why we believe these ~~non-GAAP~~non-GAAP measures are useful to investors. See Financial Condition for a reconciliation of ~~cash flows from~~Cash provided by operating activities to free cash flow and a ~~discussion~~discussion of why we believe this non-GAAP measure is useful to investors.

~~Table of Contents~~

~~ROCKWELL AUTOMATION, INC.~~

Overview

Rockwell Automation, Inc., is a global leader in industrial automation and ~~information, makes its customers~~digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and ~~the world~~ more sustainable. Overall demand for our hardware and software products, solutions, and services is driven by:

•investments in manufacturing, including upgrades, modifications and expansions of existing facilities or production lines, and new facilities or production lines;

•investments in basic materials production capacity, which may be related to commodity pricing levels;

•our customers’ needs for faster time to market, ~~lower total cost of ownership, improved~~operational productivity, asset ~~utilization~~management and ~~optimization,~~reliability, and enterprise risk management;

•our customers’ needs to continuously improve quality, safety, and sustainability;

•industry factors that include our customers’ new product introductions, demand for our customers’ products or services, and the regulatory and competitive environments in which our customers operate;

•levels of global industrial production and capacity utilization;

•regional factors that include local political, social, regulatory, and economic circumstances; and

•the spending patterns of our customers due to their annual budgeting processes and their working schedules.

Long-term Strategy

Our strategy is to bring The Connected Enterprise(R) to ~~life. We integrate~~life by integrating control and information across the ~~enterprise to help industrial companies and their people be more productive. Our vision of being the most valued global provider of innovative~~enterprise. We deliver customer outcomes by combining advanced industrial automation ~~and~~with the latest information ~~products, solutions and services is supported by our~~technology. Our growth and performance strategy ~~which~~ seeks to:

•achieve organic sales growth in excess of the automation market by expanding our served market and strengthening our competitive differentiation;

~~diversify~~•grow market share of our ~~sales streams by broadening our portfolio of products,~~core platforms;

•drive double digit growth in information solutions and connected services;

•drive double digit growth in annual recurring revenue (ARR);

•acquire companies that serve as catalysts to organic growth by increasing our information solutions and connected services offerings and capabilities, advanced material handling, and expanding our global ~~presence and serving a wider range of industries and applications;~~presence;

~~grow market share by gaining new customers and by capturing a larger share of existing customers’ spending;~~

•enhance our market access by building our channel capability and partner network;

~~acquire companies that serve as catalysts to organic growth by adding complementary technology, expanding our served market, or enhancing our domain expertise or market access;~~

•deploy human and financial resources to strengthen our technology leadership and our intellectual capital business model;

•continuously improve quality and customer experience; and

•drive annual cost productivity.

By implementing the above strategy, we seek to achieve our long-term financial goals, including above-market organic sales growth, increasing the portion of our total revenue that is recurring in nature, EPS growth above sales growth, return on invested capital in excess of 20 percent, and free cash flow equal to about 100 percent of ~~Adjusted Income.~~adjusted income. We expect acquisitions to add a percentage point or more per year ~~on average,~~ to long-term sales growth.

Our customers face the challenge of remaining globally cost competitive and automation can help them achieve their productivity and sustainability objectives. Our value proposition is to help our customers reduce time to market, lower total cost of ownership, improve asset utilization, and manage enterprise risks.

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~~ROCKWELL AUTOMATION, INC.~~

~~U. S. Industrial~~U.S. Economic Trends

In the ~~first~~third quarter of ~~2018~~,2023, sales in the U.S. accounted for ~~54 percent~~over half of our total sales. The various indicators we use to gauge the direction and momentum of our served U.S. markets include:

•The Industrial Production (IP) Index, published by the Federal Reserve, which measures the real output of manufacturing, mining, and electric and gas utilities. The IP Index is expressed as a percentage of real output in a base year, currently ~~2012.~~2017. Historically, there has been a meaningful correlation between the changes in the IP Index and the level of automation investment made by our U.S. customers in their manufacturing base.

•The Manufacturing Purchasing Managers’ Index (PMI), published by the Institute for Supply Management (ISM), which indicates the current and near-term state of manufacturing activity in the U.S. According to the ISM, a PMI measure above 50 indicates that the U.S. manufacturing economy is generally expanding while a measure below 50 indicates that it is generally contracting.

Industrial Equipment Spending, compiled by the Bureau of Economic Analysis, which provides insight into spending trends in the broad U.S. industrial economy. This measure over the longer term has proven to demonstrate a reasonable correlation with our domestic growth.

Capacity Utilization (Total Industry), published by the Federal Reserve, which measures plant operating activity. Historically, there has been a meaningful correlation between Capacity Utilization and levels of U.S. IP.

The table below depicts trends in these indicators since the quarter ended September ~~2016. In the first quarter~~2021. These figures are as of fiscal 2018, most of these U.S. economic indicators improved compared to the prior quarter. PMI declined slightly, but remained above 50, indicating a continued expansion in the U.S. manufacturing economy.

IP
Index
PMI
Industrial
Equipment
Spending
(in billions)

Capacity
Utilization
(percent)
Fiscal 2018 quarter ended:
December 2017 106.9
59.7
249.3
77.5
Fiscal 2017 quarter ended:
September 2017 104.8
60.8
246.7
76.2
June 2017 105.1
57.8
241.7
76.6
March 2017 103.7
57.2
234.3
75.8
December 2016 103.3
54.5
229.0
75.8
Fiscal 2016 quarter ended:
September 2016 103.1
51.7
226.0
75.8

~~Note: Economic indicators~~August 1, 2023, and are subject to revision by the issuing organizations. The IP Index decreased in two of the three months of the third quarter of 2023 but the quarter as a whole was up slightly versus the second quarter of 2023. Manufacturing PMI results continued to be soft in the third quarter of 2023. The Manufacturing PMI reading in the month of June was the lowest of the quarter and was the eighth consecutive month below 50.

~~While we are optimistic that~~


	IP Index	PMI
2023 quarter ended:
June 2023	99.9	46.0
March 2023	99.5	46.3
December 2022	99.6	48.4
2022 quarter ended:
September 2022	100.4	50.9
June 2022	100.4	53.0
March 2022	99.7	57.0
December 2021	99.0	58.8
2021 quarter ended:
September 2021	97.8	60.5

Inflation in the ~~impact of~~ U.S. ~~tax reform~~has also had an impact on our ~~customers' investment decisions could provide an additional tailwind~~input costs and pricing. We used the Producer Price Index (PPI), published by the Bureau of Labor Statistics, which measures the average change over time in the selling prices received by domestic producers for their output. PPI for June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, increased 0.1 percent, 2.7 percent, 6.4 percent, 8.5 percent, 11.2 percent, 11.7 percent, and 10.0 percent, respectively, compared to ~~our future performance, it is too early~~the same period of the prior year. These figures are as of August 1, 2023, and are subject to ~~quantify~~revision by the ~~benefits.~~

issuing organization. Producer prices remain elevated, however, year over year increases continued to decelerate following last years' surge in prices.

Non-U.S. Economic Trends

In the ~~first~~third quarter of ~~2018,~~2023, sales to customers outside the U.S. accounted for ~~46 percent~~less than half of our total sales. These customers include both indigenous companies and multinational companies with ~~expanding~~a global presence. In addition to the global factors previously mentioned in the ~~"Overview"~~Overview section, international demand, particularly in emerging markets, has historically been driven by the strength of the industrial economy in each region, investments in infrastructure, and expanding consumer markets. We use changes in ~~the respective~~key countries' gross domestic product (GDP), IP, and IPPMI as indicators of the growth opportunities in each region where we do business.

~~Economic projections call for~~Industrial output outside the U.S. was mixed in the third quarter of 2023 after broad growth in ~~industrial production~~the second quarter of 2023. PMI readings were mostly lower in ~~all regions in fiscal 2018. In EMEA, economic growth is supported by solid global growth that will help exports. In Asia Pacific, China's economy is stable~~the third quarter of 2023 and ~~economic growth in India is forecasted to improve following~~readings for many countries ended the prior year impacts of demonetization and a new goods and services tax. In Latin America, continued economic recovery is expected in Brazil, though the economic outlook in Mexico is being impacted by a tightening in fiscal and monetary policies, and some uncertainty related to NAFTA renegotiations.

quarter below 50.

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~~ROCKWELL AUTOMATION, INC.~~

Supply Chain

We have a global supply chain, including a network of suppliers and distribution and manufacturing facilities. The supply chain has been stressed by increased demand, along with pandemic-related and other global events that have put additional pressures on manufacturing output. Although there has been a continued gradual improvement in the supply chain environment, this has resulted in and could continue to result in:

•challenges in our supply chain;

•difficulty in procuring or inability to procure components and materials necessary for our hardware and software products, solutions, and services;

•increased costs for commodities and components; and

•delays in delivering, or an inability to deliver, our hardware and software products, solutions, and services.

We are closely managing our end-to-end supply chain, from sourcing to production to customer delivery, with a particular focus on all critical and at-risk suppliers and supplier locations globally. We have made large-scale investments to increase capacity across our network in support of our orders growth. Additional actions we are taking include:

•extending order visibility to our supply base to ensure we are appropriately planning for extended component lead times;

•securing longer-term supply agreements with critical partners;

•re-engineering of existing products to increase component supply resiliency;

•capacity investments, including redundant manufacturing lines and additional electronic assembly equipment; and

•qualification of additional suppliers to diversify our supplier base.

We believe these and other actions we are taking will enable us to normalize our product lead times and reduce our backlog.

During the third quarter of 2023, we made a change in our U.S. distribution center that added capacity to support higher revenue. This transition impacted the timing of shipments within the second half of 2023, however, will provide flexibility and scale to support future growth.

Outlook

The table below provides guidance for sales growth and earnings per share for 2023 as of August 1, 2023. Our updated guidance reflects our performance to date and assumes continued supply chain improvement.

Sales Growth Guidance

EPS Guidance

Reported sales growth

14.0% - 16.0%

Diluted EPS

$12.46 - $12.86

Organic sales growth (1)

14.0% - 16.0%

Adjusted EPS (1)

$11.70 - $12.10

Inorganic sales growth

~1.0%

Currency translation

~(1.0)%

(1) Organic sales growth and adjusted EPS are non-GAAP measures. See Supplemental Sales Information and Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for more information on these non-GAAP measures.

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Summary of Results of Operations

~~Sales in the~~ ~~first~~ ~~quarter of~~ ~~2018increased6.5 percent~~ ~~compared to the~~ ~~first~~ ~~quarter of~~ ~~2017~~. Organic sales increased 5.3 percent year over year. Currency translation increased sales by 2.5 percentage points, and the prior year divestiture reduced sales growth by 1.3 percentage points. Growth was broad-based across regions. Heavy industries had the strongest growth.

~~The following is a summary of our results related to key growth initiatives:~~

~~Logix sales increased 9 percent year over year in the~~ ~~first~~ ~~quarter of~~ ~~2018. Logix organic sales increased 6 percent year over year, and currency translation increased sales by 3 percentage points.~~

~~Process initiative sales increased 13 percent year over year in the~~ ~~first~~ ~~quarter of~~ ~~2018. Process initiative organic sales increased 12 percent year over year, and currency translation increased sales by one percentage point.~~

~~Sales in emerging countries increased 11.2 percent year over year in the~~ ~~first~~ ~~quarter of~~ ~~2018~~. Organic sales in emerging countries increased 8.5 percent year over year. Currency translation increased sales in emerging countries by 3.3 percentage points, and the prior year divestiture reduced sales growth by 0.6 percentage points.

~~Table of Contents~~

~~ROCKWELL AUTOMATION, INC.~~

The following table reflects our sales and operating results ~~for the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017~~ ~~and~~ ~~2016~~(in millions, except per share amounts and percentages):


	Three Months Ended June 30,						Nine Months Ended June 30,
	2023			2022			2023			2022
Sales
Intelligent Devices (a)	$	968.1		$	878.3		$	2,927.5		$	2,587.2
Software & Control (b)	750.6			606.9			2,065.0			1,655.7
Lifecycle Services (c)	520.0			483.5			1,502.6			1,391.2
Total sales (d)	$	2,238.7		$	1,968.7		$	6,495.1		$	5,634.1
Segment operating earnings (1)
Intelligent Devices (e)	$	163.1		$	173.2		$	579.4		$	504.4
Software & Control (f)	261.5			190.6			678.1			439.7
Lifecycle Services (g)	48.4			45.4			100.6			103.6
Total segment operating earnings (2) (h)	473.0			409.2			1,358.1			1,047.7
Purchase accounting depreciation and amortization	(27.2)			(25.9)			(79.8)			(78.1)
Corporate and other	(32.3)			(15.6)			(88.8)			(69.6)
Non-operating pension and postretirement credit (cost)	5.5			11.9			(87.5)			(5.0)
Change in fair value of investments	85.7			(5.2)			289.3			(138.3)

Interest expense, net	(32.9)			(30.2)			(100.2)			(88.9)
Income before income taxes (i)	471.8			344.2			1,291.1			667.8
Income tax provision	(73.1)			(49.4)			(218.8)			(84.7)
Net income	398.7			294.8			1,072.3			583.1
Net loss attributable to noncontrolling interests	(1.5)			(3.1)			(12.2)			(10.2)
Net income attributable to Rockwell Automation	$	400.2		$	297.9		$	1,084.5		$	593.3




Diluted EPS	$	3.45		$	2.55		$	9.34		$	5.06

Adjusted EPS (3)	$	3.01		$	2.66		$	8.48		$	6.45

Diluted weighted average outstanding shares	115.6			116.5			115.6			116.9

Pre-tax margin (i/d)	21.1		%	17.5		%	19.9		%	11.9		%

Intelligent Devices segment operating margin (e/a)	16.8		%	19.7		%	19.8		%	19.5		%
Software & Control segment operating margin (f/b)	34.8		%	31.4		%	32.8		%	26.6		%
Lifecycle Services segment operating margin (g/c)	9.3		%	9.4		%	6.7		%	7.4		%
Total segment operating margin (2) (h/d)	21.1		%	20.8		%	20.9		%	18.6		%

Three Months Ended
December 31,
2017 2016
Sales
Architecture & Software $ 746.9
$ 696.4
Control Products & Solutions 839.7
793.9
Total sales (a) 1,586.6
$ 1,490.3
Segment operating earnings⁽¹⁾

Architecture & Software 224.6
$ 208.6
Control Products & Solutions 130.9
108.0
Total segment operating earnings⁽²⁾ (b)
355.5
316.6
Purchase accounting depreciation and amortization (4.4 ) (5.6 )
General corporate — net (16.2 ) (14.9 )
Non-operating pension costs (5.9 ) (19.8 )
Costs related to unsolicited Emerson proposals (11.2 ) —
Interest expense (20.0 ) (18.7 )
Income before income taxes (c) 297.8
257.6
Income tax provision (534.2 ) (42.9 )
Net (loss) income (236.4 ) $ 214.7

Diluted EPS $ (1.84 ) $ 1.65

Adjusted EPS⁽³⁾
$ 1.96
$ 1.75

Diluted weighted average outstanding shares for diluted EPS 128.2
129.7

Diluted weighted average outstanding shares for adjusted EPS⁽³⁾
130.1
129.7

Total segment operating margin⁽²⁾ (b/a)
22.4 % 21.2 %

Pre-tax margin (c/a) 18.8 % 17.3 %
(1) See Note 15 in the Consolidated Financial Statements for the definition of segment operating earnings.

(2) Total segment operating earnings and total segment operating margin are non-GAAP financial measures. We exclude purchase accounting depreciation and amortization, corporate and other, non-operating pension and postretirement benefit credit (cost), change in fair value of investments, interest expense, net, and income tax provision because we do not consider these items to be directly related to the operating performance of our segments. We believe total segment operating earnings and total segment operating margin are useful to investors as measures of operating performance. We use these measures to monitor and evaluate the profitability of our operating segments. Our measures of total segment operating earnings and total segment operating margin may be different from measures used by other companies.


~~(1)~~	~~See Note 13 in the Condensed Consolidated Financial Statements for the definition of segment operating earnings.~~

~~(2)~~

Total segment operating earnings and total segment operating margin are non-GAAP financial measures. We exclude purchase accounting depreciation and amortization, general corporate – net, non-operating pension costs, costs related to the unsolicited Emerson proposals, interest expense and income tax provision because we do not consider these costs to be directly related to the operating performance of our segments. We believe that these measures are useful to investors as measures of operating performance. We use these measures to monitor and evaluate the profitability of our operating segments. Our measures of total segment operating earnings and total segment operating margin may be different from measures used by other companies.

~~(3)~~

Adjusted EPS is a non-GAAP earnings measure that excludes the non-operating pension costs and their related income tax effects, costs related to the unsolicited Emerson proposals in the first quarter of fiscal 2018 and their related tax effects, and the provisional tax effect of deemed repatriation of foreign earnings and the revaluation of net deferred tax assets due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). See ~~Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate Reconciliation~~ for more information on this non-GAAP measure. Average diluted shares for adjusted EPS is a non-GAAP measure that includes 1.9 million of dilutive shares that are excluded from GAAP average diluted shares in the first quarter of fiscal 2018 because we recorded a net loss.

(3) Adjusted EPS is a non-GAAP earnings measure. See Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for more information on this non-GAAP measure.

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~~ROCKWELL AUTOMATION, INC.~~

Three and Nine Months EndedJune 30, 2023, Compared to Three and Nine Months Ended June 30, 2022

Sales

Sales increased 13.7 percent and 15.3 percent year over year in the three and nine months ended June 30, 2023, respectively. Organic sales increased 13.2 percent and 16.6 percent year over year in the three and nine months ended June 30, 2023, respectively. Currency translation decreased sales by 0.7 percentage points and 2.4 percentage points year over year in the three and nine months ended June 30, 2023, respectively. Acquisitions increased sales by 1.2 percentage points and 1.1 percentage points year over year in the three and nine months ended June 30, 2023, respectively. Pricing increased total company sales by approximately 3.0 percentage points and 5.5 percentage points in the three and nine months ended June 30, 2023, respectively, realized in the Intelligent Devices and Software & Control segments.

The tables below present our sales, attributed to the geographic regions based upon country of destination, and the percentage change from the same period a year ago (in millions, except percentages). The results by region and segment were primarily impacted by the composition of backlog versus underlying demand.


			Change vs.		Change in Organic Sales (1) vs.
	Three Months Ended June 30, 2023		Three Months Ended June 30, 2022		Three Months Ended June 30, 2022
North America	$	1,260.9	1.7	%	1.7	%
Europe, Middle East and Africa	494.4		40.2	%	33.9	%
Asia Pacific	343.5		39.2	%	44.4	%
Latin America	139.9		8.1	%	6.7	%
Total Company Sales	$	2,238.7	13.7	%	13.2	%


			Change vs.		Change in Organic Sales (1) vs.
	Nine Months Ended June 30, 2023		Nine Months Ended June 30, 2022		Nine Months Ended June 30, 2022
North America	$	3,750.4	9.9	%	10.3	%
Europe, Middle East and Africa	1,353.7		28.2	%	29.6	%
Asia Pacific	974.2		23.0	%	30.2	%
Latin America	416.8		11.5	%	9.7	%
Total Company Sales	$	6,495.1	15.3	%	16.6	%

(1) Organic sales and organic sales growth exclude the effect of acquisitions, changes in currency exchange rates, and divestitures. See Supplemental Sales Information for information on these non-GAAP measures.

Corporate and Other

Corporate and other expenses were $32.3 million and $88.8 million in the three and nine months ended June 30, 2023, respectively, compared to $15.6 million and $69.6 million in the three and nine months ended June 30, 2022, respectively. The increase was led by the year over year impact of mark-to-market adjustments related to our deferred and non-qualified compensation plans.

Income before Income Taxes

Income before income taxes was $471.8 million and $1,291.1 million in the three and nine months ended June 30, 2023, respectively, compared to $344.2 million and $667.8 million in the three and nine months ended June 30, 2022, respectively. The increase was primarily due to higher sales and fair value adjustments recognized in 2023 compared to 2022 in connection with our investment in PTC (the "PTC adjustments"). Higher non-operating pension expense partially offset the higher income before income taxes in the nine months ended June 30, 2023.

Total segment operating earnings increased 15.6 percent in the three months ended June 30, 2023, primarily due to higher sales volume, including pricing increases, partially offset by higher investment spend and incentive compensation. Total segment operating earnings increased 29.6 percent in the nine months ended June 30, 2023, primarily due to higher sales volume, including pricing increases, partially offset by higher investment spend, higher incentive compensation, higher input costs, and unfavorable currency impact.

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Income Taxes

The effective tax rate for the three months ended June 30, 2023, was 15.5 percent compared to 14.4 percent for the three months ended June 30, 2022. The increase in the effective tax rate was primarily due to lower discrete benefits in the current year. Our adjusted effective tax rate for the three months ended June 30, 2023, was 14.1 percent compared to 14.5 percent for the three months ended June 30, 2022. The decrease in the adjusted effective tax rate was primarily due to non-U.S. tax rates.

The effective tax rate for the nine months ended June 30, 2023, was 16.9 percent compared to 12.7 percent for the nine months ended June 30, 2022. The increase in the effective tax rate was primarily due to the PTC adjustments, non-U.S. tax rates, and lower discrete benefits in the current year. Our adjusted effective tax rate for the nine months ended June 30, 2023, was 16.2 percent compared to 15.2 percent for the nine months ended June 30, 2022. The increase in the adjusted effective tax rate was primarily due to lower discrete benefits in the current year.

Diluted EPS and Adjusted EPS

2023 third quarter Net income attributable to Rockwell Automation was $400.2 million or $3.45 per share, compared to $297.9 million or $2.55 per share in the third quarter of 2022. The increases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to higher sales and pre-tax margin. Pre-tax margin was 21.1 percent in the third quarter of 2023 compared to 17.5 percent in the same period last year. The increase in pre-tax margin was primarily due to higher sales and the PTC adjustments. 2023 third quarter adjusted EPS was $3.01, up 13.2 percent compared to $2.66 in the third quarter of 2022, primarily due to higher sales. Total segment operating margin in the third quarter of 2023 was 21.1 percent compared to 20.8 percent a year ago.

Net income attributable to Rockwell Automation was $1,084.5 million or $9.34 per share in the nine months ended June 30, 2023, compared to $593.3 million or $5.06 per share in the nine months ended June 30, 2022. The increases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to higher sales and pre-tax margin. Pre-tax margin was 19.9 percent in the nine months ended June 30, 2023, compared to 11.9 percent in the same period last year. The increase in pre-tax margin was primarily due to higher sales and the PTC adjustments, partially offset by higher non-operating pension expense. Adjusted EPS was $8.48 in the nine months ended June 30, 2023, up 31.5 percent compared to $6.45 in the nine months ended June 30, 2022. The increase in adjusted EPS was primarily due to higher sales and segment operating margin. Total segment operating margin in the nine months ended June 30, 2023, was 20.9 percent compared to 18.6 percent in the same period a year ago primarily due to higher sales volume, including pricing increases, partially offset by higher investment spend, higher incentive compensation, higher input costs, and unfavorable currency impact.

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Intelligent Devices

Sales

Intelligent Devices sales increased 10.2 percent and 13.2 percent year over year in the three and nine months ended June 30, 2023, respectively. Intelligent Devices organic sales increased 8.2 percent and 13.5 percent year over year in the three and nine months ended June 30, 2023, respectively. Currency translation decreased sales by 0.4 percentage points and 2.4 percentage points year over year, in the three and nine months ended June 30, 2023, respectively. The acquisition of CUBIC increased sales by 2.4 percentage points and 2.1 percentage points year over year in the three and nine months ended June 30, 2023, respectively. For the three months ended June 30, 2023, reported and organic sales increased in all regions except for North America. For the nine months ended June 30, 2023, reported and organic sales increased in all regions.

Segment Operating Margin

Intelligent Devices segment operating earnings decreased 5.8 percent year over year in the three months ended June 30, 2023. Segment operating margin decreased to 16.8 percent in the three months ended June 30, 2023, from 19.7 percent in the same period a year ago. The benefit of higher sales, including the impact from price, was more than offset by higher investment spend, unfavorable mix, and higher incentive compensation.

Intelligent Devices segment operating earnings increased 14.9 percent year over year in the nine months ended June 30, 2023. Segment operating margin increased to 19.8 percent in the nine months ended June 30, 2023, from 19.5 percent in the same period a year ago. The increase from the prior year includes higher sales volume, including the impact from price, partially offset by higher investment spend, unfavorable mix, higher incentive compensation, and unfavorable currency impact.

Software & Control

Sales

Software & Control sales increased 23.7 percent and 24.7 percent year over year in the three and nine months ended June 30, 2023, respectively. Software & Control organic sales increased 24.4 percent and 27.2 percent year over year in the three and nine months ended June 30, 2023, respectively. Currency translation decreased sales by 0.7 percentage points and 2.5 percentage points year over year in the three and nine months ended June 30, 2023, respectively. For the three and nine months ended June 30, 2023, reported and organic sales increased in all regions.

Segment Operating Margin

Software & Control segment operating earnings increased 37.2 percent and 54.2 percent year over year in the three and nine months ended June 30, 2023, respectively. Segment operating margin increased to 34.8 percent and 32.8 percent in the three and nine months ended June 30, 2023, respectively, from 31.4 percent and 26.6 percent in the same period a year ago, primarily driven by higher sales volume, including the impact from price, partially offset by higher investment spend.

Lifecycle Services

Sales

Lifecycle Services sales increased 7.5 percent and 8.0 percent year over year in the three and nine months ended June 30, 2023, respectively. Lifecycle Services organic sales increased 8.0 percent and 10.0 percent year over year in the three and nine months ended June 30, 2023, respectively. Currency translation decreased sales by 1.0 percentage points and 2.6 percentage points year over year in the three and nine months ended June 30, 2023, respectively. Acquisitions increased sales by 0.5 percentage points and 0.6 percentage points year over year in the three and nine months ended June 30, 2023, respectively. For the three months ended June 30, 2023, reported and organic sales increased in all regions except for North America. For the nine months ended June 30, 2023, reported and organic sales increased in all regions except for Latin America.

Segment Operating Margin

Lifecycle Services segment operating earnings increased 6.6 percent and decreased 2.9 percent year over year in the three and nine months ended June 30, 2023, respectively. Segment operating margin decreased to 9.3 percent in the three months ended June 30, 2023, from 9.4 percent in the same period a year ago. Segment operating margin decreased to 6.7 percent in the nine months ended June 30, 2023, from 7.4 percent in the same period a year ago, as the benefit of higher sales was more than offset by higher incentive compensation costs and one-time items to expand future profitability.

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Supplemental Segment Information

Purchase accounting depreciation and amortization and non-operating pension ~~costs~~and postretirement benefit (credit) cost are not allocated to our operating segments because these costs are excluded from our measurement of each segment's operating performance for internal purposes. If we were to allocate these costs, we would attribute them to each of our segments as follows (in millions):

Three Months Ended
December 31,
2017 2016
Purchase accounting depreciation and amortization
Architecture & Software $ 1.6
$ 1.6
Control Products & Solutions 2.5
3.8
Non-operating pension costs
Architecture & Software 1.8
7.1
Control Products & Solutions 2.8
11.1

The decreases in non-operating pension costs in both segments for the three months ended December 31, 2017, were primarily due to a $200 million voluntary contribution in fiscal 2017 and other actuarial adjustments.


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Purchase accounting depreciation and amortization
Intelligent Devices	$	1.3	$	0.5	$	3.5	$	1.9
Software & Control	17.1		17.3		51.2		51.8
Lifecycle Services	8.5		7.9		24.3		23.7
Non-operating pension and postretirement benefit (credit) cost
Intelligent Devices	$	(1.9)	$	(4.7)	$	23.0	$	(1.9)
Software & Control	(1.9)		(4.7)		23.0		(1.9)
Lifecycle Services	(2.7)		(6.3)		30.6		(2.6)

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~~ROCKWELL AUTOMATION, INC.~~

Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation

Adjusted ~~Income, Adjusted~~income, adjusted EPS, and ~~Adjusted Effective Tax Rate~~adjusted effective tax rate are non-GAAP earnings measures that exclude non-operating pension ~~costs~~ and postretirement benefit (credit) cost, purchase accounting depreciation and amortization attributable to Rockwell Automation, change in fair value of investments, and Net loss attributable to noncontrolling interests, including their ~~related income~~respective tax effects, costs related to the unsolicited Emerson proposals in the first quarter of fiscal 2018 and their related tax effects, and the provisional tax effect of deemed repatriation of foreign earnings and the revaluation of net deferred tax assets due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "Tax Act").effects. Non-operating pension ~~costs include~~and postretirement benefit (credit) cost is defined ~~benefit plan interest cost, expected return on plan assets, amortization~~as all components of ~~actuarial gains and losses and the impact of any plan curtailments or settlements. These components of~~our net periodic pension and postretirement benefit cost ~~primarily relate to changes~~except for service cost. See Note 10 in the Consolidated Financial Statements for more information on our net periodic pension ~~assets~~ and ~~liabilities that are a result of market performance; we consider these and other excluded costs to be unrelated to the operating performance of our business.~~ postretirement benefit cost.

We believe that ~~Adjusted Income, Adjusted~~adjusted income, adjusted EPS, and ~~Adjusted Effective Tax Rate~~adjusted effective tax rate provide useful information to our investors about our operating performance and allow management and investors to compare our operating performance period over period. Adjusted EPS is also used as a financial measure of performance for our annual incentive compensation. Our measures of ~~Adjusted Income, Adjusted~~adjusted income, adjusted EPS, and ~~Adjusted Effective Tax Rate~~adjusted effective tax rate may be different from measures used by other companies. These non-GAAP measures should not be considered a substitute for Net income ~~from continuing operations,~~attributable to Rockwell Automation, diluted EPS, and effective tax rate.

~~The following are the components of operating and non-operating pension costs for the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017~~ ~~and~~ ~~2016~~ ~~(in millions):~~

Three Months Ended
December 31,
2017 2016
Service cost $ 22.2
$ 24.1
Amortization of prior service credit 0.2
(0.8 )
Operating pension costs 22.4
23.3

Interest cost 38.8
37.8
Expected return on plan assets (61.2 ) (56.2 )
Amortization of net actuarial loss 28.3
38.0
Settlements —
0.2
Non-operating pension costs 5.9

19.8

Net periodic pension cost $ 28.3
$ 43.1

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~~ROCKWELL AUTOMATION, INC.~~

The following are reconciliations of Net income ~~from continuing operations,~~attributable to Rockwell Automation, diluted EPS, ~~from continuing operations~~ and effective tax rate to ~~Adjusted Income, Adjusted~~adjusted income, adjusted EPS, and ~~Adjusted Effective Tax Rate,~~adjusted effective tax rate, respectively ~~for the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017~~ ~~and~~ ~~2016~~ (in millions, except per share amounts and percentages):


	Three Months Ended June 30,						Nine Months Ended June 30,
	2023			2022			2023			2022
Net income attributable to Rockwell Automation	$	400.2		$	297.9		$	1,084.5		$	593.3
Non-operating pension and postretirement benefit (credit) cost (1)	(5.5)			(11.9)			87.5			5.0
Tax effect of non-operating pension and postretirement benefit (credit) cost (1)	1.2			3.8			(21.6)			(0.9)
Purchase accounting depreciation and amortization attributable to Rockwell Automation	24.1			22.9			70.7			69.1
Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	(5.9)			(5.6)			(17.3)			(16.8)
Change in fair value of investments (2)	(85.7)			5.2			(289.3)			138.3
Tax effect of change in fair value of investments (2)	20.7			(1.2)			70.0			(31.1)
Adjusted income	$	349.1		$	311.1		$	984.5		$	756.9

Diluted EPS	$	3.45		$	2.55		$	9.34		$	5.06
Non-operating pension and postretirement benefit (credit) cost (1)	(0.05)			(0.10)			0.76			0.04
Tax effect of non-operating pension and postretirement benefit (credit) cost (1)	0.01			0.03			(0.19)			(0.01)
Purchase accounting depreciation and amortization attributable to Rockwell Automation	0.21			0.20			0.61			0.59
Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	(0.05)			(0.05)			(0.15)			(0.14)
Change in fair value of investments (2)	(0.74)			0.04			(2.50)			1.18
Tax effect of change in fair value of investments (2)	0.18			(0.01)			0.61			(0.27)
Adjusted EPS	$	3.01		$	2.66		$	8.48		$	6.45

Effective tax rate	15.5		%	14.4		%	16.9		%	12.7		%
Tax effect of non-operating pension and postretirement benefit (credit) cost (1)	(0.1)		%	(0.7)		%	0.5		%	—		%
Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation	0.6		%	0.6		%	0.5		%	0.8		%
Tax effect of change in fair value of investments (2)	(1.9)		%	0.2		%	(1.7)		%	1.7		%
Adjusted effective tax rate	14.1		%	14.5		%	16.2		%	15.2		%

(1) Includes settlement and curtailment charges (benefit) of $2.2 million and $120.1 million for the three and nine months ended June 30, 2023, respectively, and $(0.7) million and $24.2 million for the three and nine months ended June 30, 2022, respectively.

(2) Primarily relates to the change in fair value of investment in PTC.

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Three Months Ended
December 31,
2017
2016
(Loss) Income from continuing operations $ (236.4 ) $ 214.7
Non-operating pension costs 5.9
19.8
Tax effect of non-operating pension costs (1.8 ) (7.2 )
Costs related to unsolicited Emerson proposals 11.2
—
Tax effect of costs related to unsolicited Emerson proposals (3.1 ) —
Effect of deemed repatriation of foreign earnings due to the Tax Act¹
385.5
—
Effect of net deferred tax asset revaluation due to the Tax Act¹
94.2
—
Adjusted Income $ 255.5
$ 227.3

Diluted EPS from continuing operations $ (1.84 ) $ 1.65
Non-operating pension costs per diluted share 0.06
0.15
Tax effect of non-operating pension costs per diluted share (0.01 ) (0.05 )
Costs related to unsolicited Emerson proposals 0.09
—
Tax effect of costs related to unsolicited Emerson proposals (0.02 ) —
Effect of deemed repatriation of foreign earnings due to the Tax Act¹
2.96
—
Effect of net deferred tax asset revaluation due to the Tax Act¹
0.72
—
Adjusted EPS $ 1.96
$ 1.75

Effective tax rate 179.4 % 16.7 %
Tax effect of non-operating pension costs 0.3 % 1.4 %
Tax effect of costs related to unsolicited Emerson proposals 0.3 % — %
Effect of deemed repatriation of foreign earnings due to the Tax Act¹
(129.5 )% — %
Effect of net deferred tax asset revaluation due to the Tax Act¹
(31.6 )% — %
Adjusted Effective Tax Rate 18.9 % 18.1 %


						Fiscal 2023 Guidance (4)

Diluted EPS (1)						$12.46 - $12.86
Non-operating pension and postretirement benefit cost (2)						0.68
Tax effect of non-operating pension and postretirement benefit cost (2)						(0.17)
Purchase accounting depreciation and amortization attributable to Rockwell Automation						0.82
Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation						(0.20)
Change in fair value of investments (3)						(2.50)
Tax effect of change in fair value of investments (3)						0.61
Adjusted EPS (1)						$11.70 - $12.10

Effective tax rate						~ 17.5%
Tax effect of non-operating pension and postretirement benefit cost (2)						~ 0.5%
Tax effect of purchase accounting depreciation and amortization attributable to Rockwell Automation						~ 0.5%
Tax effect of change in fair value of investments (3)						~ (1.0)%
Adjusted effective tax rate						~ 17.5%

¹~~These amounts,~~(1) Fiscal 2023 guidance based on adjusted income attributable to Rockwell, which includes an adjustment for SLB's non-controlling interest in Sensia.

(2) Year-to-date pension settlement charges are used for guidance, as estimates of these adjustments on a forward-looking basis are not available due to variability, complexity, and limited visibility of these items.

(3) The actual year-to-date adjustments, which are based on ~~reasonable~~PTC's share price at June 30, 2023, and year-to-date sales of PTC Shares, are used for guidance, as estimates ~~will require further~~of these adjustments on a forward-looking basis are not available due to variability, complexity, and limited visibility of these items.

(4) Guidance as ~~additional guidance from the U.S. Department~~ of ~~Treasury is provided, the Company’s assumptions change, or as further information and interpretations become available.~~ ~~Refer to Note 12 in the Condensed Consolidated Financial Statements for further information regarding the effect of the enactment of the Tax Act on our financial condition and results of operations.~~

August 1, 2023.

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~~ROCKWELL AUTOMATION, INC.~~

~~Three Months EndedDecember 31, 2017, Compared to Three Months Ended December 31, 2016~~

Three Months Ended December 31,
(in millions, except per share amounts) 2017 2016 Change
Sales $ 1,586.6
$ 1,490.3
$ 96.3
Income before income taxes 297.8
257.6
40.2
Diluted EPS (1.84 ) 1.65
(3.49 )
Adjusted EPS 1.96
1.75
0.21

~~Sales~~

~~Sales~~ ~~increased~~ 6.5 percent in the three months ended December 31, 2017. Organic sales increased 5.3 percent year over year. Currency translation increased sales by 2.5 percentage points, and the prior year divestiture reduced sales growth by 1.3 percentage points in the three months ended December 31, 2017.

~~Pricing contributed less than one percentage point to sales growth in the three months ended December 31, 2017.~~

The table below presents our sales, attributed to the geographic regions based upon country of destination, for the three months ended December 31, 2017, and the percentage change from the same period a year ago (in millions, except percentages):

Change vs.
Change in Organic
Sales⁽¹⁾ vs.
Three Months Ended
December 31, 2017 Three Months Ended December 31, 2016 Three Months Ended December 31, 2016
United States $ 851.9
3.9 % 5.4 %
Canada 92.0
11.2 % 11.5 %
Europe, Middle East and Africa (EMEA) 307.4
13.6 % 4.9 %
Asia Pacific 214.5
4.3 % 1.5 %
Latin America 120.8
8.6 % 8.5 %
Total sales $ 1,586.6
6.5 % 5.3 %

⁽¹⁾~~Organic sales and organic sales growth exclude the effect of changes in currency exchange rates, acquisitions and divestitures. See~~ ~~Supplemental Sales Information~~ ~~for information on this non-GAAP measure.~~

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~~ROCKWELL AUTOMATION, INC.~~

~~Three Months EndedDecember 31, 2017, Compared to Three Months Ended December 31, 2016~~

~~United States sales increased in the three months ended December 31, 2017, mainly due to strength in heavy industries, partially offset by weakness in consumer and automotive industries.~~

~~Sales in Canada increased in the three months ended December 31, 2017, led by growth in consumer and heavy industries.~~

~~EMEA sales increased in the three months ended December 31, 2017, with growth in both mature and emerging countries.~~

~~Sales in Asia Pacific increased in the three months ended December 31, 2017, led by China.~~

~~Latin America sales increased in the three months ended December 31, 2017, led by growth in heavy industries and consumer.~~

~~General Corporate - Net~~

~~General corporate - net expenses were $16.2 million in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017, compared to $14.9 million in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2016~~.

~~Income before Income Taxes~~

~~Income before income taxes increased 16 percent year over year in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017. Total segment operating earnings increased 12 percent year over year in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017. The increases in income before income taxes and total segment operating earnings were primarily due to higher sales, partially offset by higher investment spending.~~

~~Income Taxes~~

The effective tax rate for the three months ended December 31, 2017, was 179.4 percent compared to 16.7 percent for the three months ended December 31, 2016. Our Adjusted Effective Tax Rate for the three months ended December 31, 2017, was 18.9 percent compared to 18.1 percent in the three months ended December 31, 2016. The increase in the effective tax rate was due to discrete tax expenses related to the deemed repatriation of foreign earnings ($385.5 million or 129.5 percent) and the revaluation of net deferred tax assets ($94.2 million or 31.6 percent) resulting from the Tax Act. The increase in the Adjusted Effective Tax Rate was primarily due to lower favorable discrete tax items in the current quarter compared to the prior year, partially offset by the impact of the lower U.S. statutory tax rate under the Tax Act. Refer to Note 12 in the Condensed Consolidated Financial Statements for further information regarding the effect of the enactment of the Tax Act on our financial condition and results of operations.

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~~ROCKWELL AUTOMATION, INC.~~

~~Three Months EndedDecember 31, 2017, Compared to Three Months Ended December 31, 2016~~

~~Architecture & Software~~

Three Months Ended December 31,
(in millions, except percentages) 2017 2016 Change
Sales $ 746.9
$ 696.4
$ 50.5

Segment operating earnings 224.6
208.6
16.0

Segment operating margin 30.1 % 30.0 % 0.1
pts

~~Sales~~

~~Architecture & Software sales increased 7.3 percent in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017, and organic sales increased 4.6 percent. Currency translation increased sales by 2.7 percentage points in the~~ ~~three~~ ~~months ended December 31, 2017.~~

~~Growth in both reported and organic sales was broad-based across all regions for the~~ ~~three~~ ~~months ended December 31, 2017. Canada had the highest reported and organic sales growth rates for the~~ ~~three~~ ~~months ended December 31, 2017.~~

~~Logix sales increased 9 percent year over year in the three months ended December 31, 2017. Logix organic sales increased 6 percent year over year in the~~ ~~three~~ ~~months ended December 31, 2017, and currency translation increased Logix sales by 3 percentage points.~~

~~Operating Margin~~

~~Architecture & Software segment operating earnings increased 8 percent year over year in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017. Segment operating margin increased to 30.1 percent in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017, from 30.0 percent a year ago, primarily due to higher sales, partially offset by higher investment spending.~~

~~Table of Contents~~

~~ROCKWELL AUTOMATION, INC.~~

~~Three Months EndedDecember 31, 2017, Compared to Three Months Ended December 31, 2016~~

~~Control Products & Solutions~~

Three Months Ended December 31,
(in millions, except percentages) 2017 2016 Change
Sales $ 839.7
$ 793.9
$ 45.8

Segment operating earnings 130.9
108.0
22.9

Segment operating margin 15.6 % 13.6 % 2.0
pts

~~Sales~~

~~Control Products & Solutions sales increased 5.8 percent year over year in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017, and organic sales increased 5.9 percent. Currency translation increased sales by 2.3 percentage points, and the prior year divestiture reduced sales growth by 2.4 percent in the~~ ~~three~~ ~~months ended December 31, 2017.~~

~~All regions, except Canada, experienced reported and organic sales growth in the~~ ~~three~~ ~~months ended December 31, 2017. Canada reported sales decreased year over year, but organic sales increased. EMEA had the highest reported sales growth rate for the~~ ~~three~~ ~~months ended December 31, 2017, and Latin America had the highest organic sales growth rate.~~

~~Product sales increased 2 percent in the three months ended December 31, 2017, compared to the three months ended December 31, 2016. Product organic sales increased 5 percent year over year in the~~ ~~three~~ months ended December 31, 2017. Currency translation increased sales by 2 percentage points in the three months ended December 31, 2017, and the prior year divestiture reduced sales growth by 5 percentage points.

~~Sales in our solutions and services businesses increased 9 percent in the~~ ~~three~~ ~~months ended December 31, 2017, compared to the~~ ~~three~~ months ended December 31, 2016. Organic sales in our solutions and services business increased 6 percent in the three months ended December 31, 2017, and currency translation increased sales by 3 percentage points.

~~Operating Margin~~

~~Control Products & Solutions segment operating earnings increased 21 percent year over year in the~~ ~~three~~ ~~months ended~~ ~~December 31, 2017. Segment operating margin increased to 15.6 percent in the~~ ~~three~~ ~~months ended December 31, 2017, compared to 13.6 percent a year ago, primarily due to higher sales.~~

~~Table of Contents~~

~~ROCKWELL AUTOMATION, INC.~~

Financial Condition

The following is a summary of our cash flows from operating, investing, and financing activities, as reflected in the ~~Condensed~~ Consolidated Statement of Cash Flows (in millions):


								Nine Months Ended June 30,
	Three Months Ended December 31,							2023		2022
	2017			2016
Cash provided by (used for):
Cash provided by (used for)							Cash provided by (used for)
Operating activities	$	212.7		$	310.8		Operating activities	$	535.1	$	423.7
Investing activities	(33.0		)	(37.6		)	Investing activities	88.6		(99.2)
Financing activities	(26.6		)	(151.9		)	Financing activities	(709.2)		(478.5)
Effect of exchange rate changes on cash	(17.0		)	(53.1		)	Effect of exchange rate changes on cash	29.7		(25.3)
Cash provided by continuing operations	$	136.1		$	68.2
Decrease in cash, cash equivalents, and restricted cash							Decrease in cash, cash equivalents, and restricted cash	$	(55.8)	$	(179.3)

The following table summarizes free cash flow, ~~(in millions),~~ which is a non-GAAP financial ~~measure:~~measure (in millions):


								Nine Months Ended June 30,
	Three Months Ended December 31,							2023		2022
	2017			2016
Cash provided by continuing operating activities	$	212.7		$	310.8
Cash provided by operating activities							Cash provided by operating activities	$	535.1	$	423.7
Capital expenditures	(34.1		)	(39.4		)	Capital expenditures	(97.3)		(100.3)
Free cash flow	$	178.6		$	271.4		Free cash flow	$	437.8	$	323.4



Delaware									25-1797617
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)


		Page No.
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements		~~Page No.~~

~~PART I. FINANCIAL INFORMATION~~

~~Item 1. Condensed Consolidated Financial Statements:~~

~~Condensed~~ Consolidated Balance Sheet	34

~~Condensed~~ Consolidated Statement of Operations		45

~~Condensed~~ Consolidated Statement of Comprehensive ~~(Loss)~~ Income		56

~~Condensed~~ Consolidated Statement of Cash Flows		67

Consolidated Statement of Shareowners' Equity		8

Notes to ~~Condensed~~ Consolidated Financial Statements		710

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)		2124

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		2225

Item 3. Quantitative and Qualitative Disclosures About Market Risk		3842

Item 4. Controls and Procedures		3842

PART II. OTHER INFORMATION

Item 1. Legal Proceedings		3943

Item 1A. Risk Factors		3943

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		4043

Item 5. Other Information		44

Item 6. Exhibits		4145

Signatures		4346


	December 31, 2017			September 30, 2017				June 30, 2023		September 30, 2022
ASSETS	ASSETS						ASSETS
Current assets:
Current assets							Current assets
Cash and cash equivalents	$	1,547.0		$	1,410.9		Cash and cash equivalents	$	443.5	$	490.7
Short-term investments	1,100.5			1,124.6

Receivables	1,149.9			1,135.5			Receivables	2,245.0		1,736.7
Inventories	570.8			558.7			Inventories	1,435.2		1,054.2
Other current assets	165.7			191.0			Other current assets	277.4		329.1
Total current assets	4,533.9			4,420.7			Total current assets	4,401.1		3,610.7
Property, net of accumulated depreciation of $1,534.8 and $1,511.9, respectively	565.8			583.9
Property, net of accumulated depreciation of $1,798.6 and $1,702.3, respectively							Property, net of accumulated depreciation of $1,798.6 and $1,702.3, respectively	654.1		586.5
Operating lease right-of-use assets							Operating lease right-of-use assets	318.1		321.0
Goodwill	1,082.3			1,077.7			Goodwill	3,700.9		3,524.0
Other intangible assets, net	234.0			238.0			Other intangible assets, net	883.1		902.0
Deferred income taxes	334.8			443.6			Deferred income taxes	360.9		384.3
Long-term investments							Long-term investments	1,002.0		1,056.0
Other assets	407.9			397.8			Other assets	423.1		374.2
Total	$	7,158.7		$	7,161.7		Total	$	11,743.3	$	10,758.7
LIABILITIES AND SHAREOWNERS’ EQUITY	LIABILITIES AND SHAREOWNERS’ EQUITY						LIABILITIES AND SHAREOWNERS’ EQUITY
Current liabilities:
Current liabilities							Current liabilities
Short-term debt	$	840.0		$	350.4		Short-term debt	$	278.5	$	359.3
Current portion of long-term debt	—			250.0			Current portion of long-term debt	608.3		609.1

Accounts payable	582.2			623.2			Accounts payable	1,009.1		1,028.0
Compensation and benefits	194.3			272.6			Compensation and benefits	365.6		292.7
Advance payments from customers and deferred revenue	267.5			240.6
Contract liabilities							Contract liabilities	621.2		507.0
Customer returns, rebates and incentives	176.8			188.8			Customer returns, rebates and incentives	462.3		373.1
Other current liabilities	225.8			220.2			Other current liabilities	577.1		403.0
Total current liabilities	2,286.6			2,145.8			Total current liabilities	3,922.1		3,572.2
Long-term debt	1,239.3			1,243.4			Long-term debt	2,866.9		2,867.8
Retirement benefits	880.6			892.5			Retirement benefits	517.2		471.2
Operating lease liabilities							Operating lease liabilities	256.6		263.5
Other liabilities	596.0			216.4			Other liabilities	558.3		567.3
Commitments and contingent liabilities (Note 11)
Shareowners’ equity:
Commitments and contingent liabilities (Note 13)							Commitments and contingent liabilities (Note 13)
Shareowners’ equity							Shareowners’ equity
Common stock ($1.00 par value, shares issued: 181.4)	181.4			181.4			Common stock ($1.00 par value, shares issued: 181.4)	181.4		181.4
Additional paid-in capital	1,642.9			1,638.0			Additional paid-in capital	2,078.2		2,007.1
Retained earnings	5,759.7			6,103.4			Retained earnings	8,952.2		8,411.8
Accumulated other comprehensive loss	(1,175.7		)	(1,179.2		)	Accumulated other comprehensive loss	(725.5)		(917.5)
Common stock in treasury, at cost (shares held: December 31, 2017, 53.6; September 30, 2017, 53.0)	(4,252.1		)	(4,080.0		)
Common stock in treasury, at cost (shares held: 66.5 and 66.2, respectively)							Common stock in treasury, at cost (shares held: 66.5 and 66.2, respectively)	(7,143.1)		(6,957.2)
Shareowners’ equity attributable to Rockwell Automation, Inc.							Shareowners’ equity attributable to Rockwell Automation, Inc.	3,343.2		2,725.6
Noncontrolling interests							Noncontrolling interests	279.0		291.1
Total shareowners’ equity	2,156.2			2,663.6			Total shareowners’ equity	3,622.2		3,016.7
Total	$	7,158.7		$	7,161.7		Total	$	11,743.3	$	10,758.7


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Net income	$	398.7	$	294.8	$	1,072.3	$	583.1
Other comprehensive income (loss)
Pension and other postretirement benefit plan adjustments (net of tax (expense) benefit of $(12.8), $22.3, $(22.6), and $(49.6))	41.3		(72.9)		72.0		131.4
Currency translation adjustments	35.5		(62.0)		146.6		(91.3)
Net change in cash flow hedges (net of tax benefit (expense) of $2.1, $(4.0), $10.6, and $(7.2))	(5.7)		10.3		(26.5)		19.6

Other comprehensive income (loss)	71.1		(124.6)		192.1		59.7
Comprehensive income	469.8		170.2		1,264.4		642.8
Comprehensive loss attributable to noncontrolling interests	(1.0)		(3.3)		(12.1)		(10.1)
Comprehensive income attributable to Rockwell Automation, Inc.	$	470.8	$	173.5	$	1,276.5	$	652.9


								Nine Months Ended June 30,
	Three Months Ended December 31,							2023		2022
	2017			2016
Operating activities:							Operating activities:
Net (loss) income	$	(236.4	)	$	214.7
Adjustments to arrive at cash provided by operating activities:
Net income							Net income	$	1,072.3	$	583.1
Adjustments to arrive at cash provided by operating activities							Adjustments to arrive at cash provided by operating activities
Depreciation	32.5			32.5			Depreciation	95.2		93.6
Amortization of intangible assets	7.1			7.9			Amortization of intangible assets	86.8		84.6
Change in fair value of investments							Change in fair value of investments	(289.3)		138.3
Share-based compensation expense	8.6			10.7			Share-based compensation expense	65.0		48.8
Retirement benefit expense	28.3			43.0			Retirement benefit expense	118.5		61.7
Net loss on disposition of property							Net loss on disposition of property	0.8		0.4

Pension contributions	(11.6		)	(13.5		)	Pension contributions	(18.5)		(23.1)
Net loss on disposition of property	—			0.3
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments:
Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments							Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments
Receivables	(18.4		)	6.0			Receivables	(415.2)		(326.1)
Inventories	(19.2		)	(27.9		)	Inventories	(309.9)		(206.2)
Accounts payable	(36.8		)	(10.4		)	Accounts payable	(74.6)		118.5
Advance payments from customers and deferred revenue	27.9			16.8
Contract liabilities							Contract liabilities	119.8		96.8
Compensation and benefits	(77.0		)	22.4			Compensation and benefits	74.9		(114.9)
Income taxes	508.0			22.3			Income taxes	(49.2)		(202.6)
Other assets and liabilities	(0.3		)	(14.0		)	Other assets and liabilities	58.5		70.8
Cash provided by operating activities	212.7			310.8			Cash provided by operating activities	535.1		423.7

Investing activities:							Investing activities:
Capital expenditures	(34.1		)	(39.4		)	Capital expenditures	(97.3)		(100.3)
Acquisition of businesses, net of cash acquired	(9.9		)	(1.1		)	Acquisition of businesses, net of cash acquired	(168.0)		(16.5)
Purchases of investments	(275.2		)	(191.3		)	Purchases of investments	(5.2)		(48.5)
Proceeds from maturities of investments	234.5			193.9
Proceeds from sale of investments	51.5			—			Proceeds from sale of investments	355.2		66.0
Proceeds from sale of property	0.2			0.3
Cash used for investing activities	(33.0		)	(37.6		)


Other investing activities							Other investing activities	3.9		0.1
Cash provided by (used for) investing activities							Cash provided by (used for) investing activities	88.6		(99.2)
Financing activities:							Financing activities:
Net issuance (repayment) of short-term debt	489.6			(40.0		)
Repayment of long-term debt	(250.0		)	—
Net (repayment) issuance of short-term debt							Net (repayment) issuance of short-term debt	(74.1)		301.8

Repayment of short-term debt							Repayment of short-term debt	(18.8)		(210.0)

Cash dividends	(107.3		)	(97.5		)	Cash dividends	(406.9)		(390.4)
Purchases of treasury stock	(190.8		)	(82.0		)	Purchases of treasury stock	(257.1)		(218.5)
Proceeds from the exercise of stock options	30.1			67.6			Proceeds from the exercise of stock options	75.4		46.1
Other financing activities	1.8			—			Other financing activities	(27.7)		(7.5)
Cash used for financing activities	(26.6		)	(151.9		)	Cash used for financing activities	(709.2)		(478.5)

Effect of exchange rate changes on cash	(17.0		)	(53.1		)	Effect of exchange rate changes on cash	29.7		(25.3)

Increase in cash and cash equivalents	136.1			68.2
Cash and cash equivalents at beginning of period	1,410.9			1,526.4
Cash and cash equivalents at end of period	$	1,547.0		$	1,594.6
Decrease in cash, cash equivalents, and restricted cash							Decrease in cash, cash equivalents, and restricted cash	(55.8)		(179.3)
Cash, cash equivalents, and restricted cash at beginning of period							Cash, cash equivalents, and restricted cash at beginning of period	507.9		679.4
Cash, cash equivalents, and restricted cash at end of period							Cash, cash equivalents, and restricted cash at end of period	$	452.1	$	500.1
Components of cash, cash equivalents, and restricted cash							Components of cash, cash equivalents, and restricted cash
Cash and cash equivalents							Cash and cash equivalents	$	443.5	$	482.9
Restricted cash, current (Other current assets)							Restricted cash, current (Other current assets)	8.6		8.6
Restricted cash, noncurrent (Other assets)							Restricted cash, noncurrent (Other assets)	—		8.6
Total cash, cash equivalents, and restricted cash							Total cash, cash equivalents, and restricted cash	$	452.1	$	500.1


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Common stock in treasury, at cost		Total attributable to Rockwell Automation, Inc.		Noncontrolling interests		Total shareowners' equity
Balance at March 31, 2023	$	181.4	$	2,049.0	$	8,824.2	$	(796.1)	$	(7,103.0)	$	3,155.5	$	280.0	$	3,435.5
Net income (loss)	—		—		400.2		—		—		400.2		(1.5)		398.7
Other comprehensive income	—		—		—		70.6		—		70.6		0.5		71.1
Common stock issued (including share-based compensation impact)	—		29.2		—		—		22.2		51.4		—		51.4
Share repurchases	—		—		—		—		(62.3)		(62.3)		—		(62.3)
Cash dividends declared (1)	—		—		(272.2)		—		—		(272.2)		—		(272.2)


Balance at June 30, 2023	$	181.4	$	2,078.2	$	8,952.2	$	(725.5)	$	(7,143.1)	$	3,343.2	$	279.0	$	3,622.2


	June 30, 2023		June 30, 2022
Balance as of beginning of year	$	541.3	$	462.5
Balance as of end of period	672.5		549.5


	Nine Months Ended June 30,
	2023			2022
	Grants	Wtd. Avg. Share Fair Value		Grants	Wtd. Avg. Share Fair Value
Stock options	233	$	77.62	164	$	87.68
Performance shares	66	340.77		37	481.28
Restricted stock and restricted stock units	236	262.24		214	307.31
Unrestricted stock	7	261.72		3	345.00



	Three Months Ended December 31,
	2017			2016
	Grants	Wtd. Avg. Share Fair Value		Grants	Wtd. Avg. Share Fair Value
Stock options	837	$	35.54	943	$	25.27
Performance shares	40	219.04		42	174.37
Restricted stock and restricted stock units	31	192.70		41	135.17
Unrestricted stock	5	180.70		6	120.57


	June 30, 2023		September 30, 2022
Finished goods	$	507.5	$	325.0
Work in process	373.8		317.3
Raw materials	553.9		411.9
Inventories	$	1,435.2	$	1,054.2


	Purchase Price Allocation

Receivables	$	20.2
Inventories	17.7
Property	27.5
Goodwill	66.3
Other intangible assets	36.4
All other assets	9.2
Total assets acquired	177.3
Less: Total liabilities assumed	(43.5)


Net assets acquired, excluding cash	$	133.8

	Purchase Consideration
Total purchase consideration, net of cash acquired	$	133.8



	Architecture & Software			Control Products & Solutions			Total
Balance as of September 30, 2017	$	417.2		$	660.5		$	1,077.7
Acquisition of business	6.8			—			6.8
Translation	(0.6		)	(1.6		)	(2.2		)
Balance as of December 31, 2017	$	423.4		$	658.9		$	1,082.3



	December 31, 2017
	Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets:
Computer software products	$	194.8	$	116.1	$	78.7
Customer relationships	114.4		62.8		51.6
Technology	107.4		59.5		47.9
Trademarks	32.4		21.8		10.6
Other	11.4		9.9		1.5
Total amortized intangible assets	460.4		270.1		190.3
Allen-Bradley^® trademark not subject to amortization	43.7		—		43.7
Total	$	504.1	$	270.1	$	234.0



	September 30, 2017
	Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets:
Computer software products	$	194.8	$	113.2	$	81.6
Customer relationships	114.5		61.5		53.0
Technology	104.8		57.9		46.9
Trademarks	32.3		21.1		11.2
Other	11.4		9.8		1.6
Total amortized intangible assets	457.8		263.5		194.3
Allen-Bradley^® trademark not subject to amortization	43.7		—		43.7
Total	$	501.5	$	263.5	$	238.0


	June 30, 2023				September 30, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Current portion of long-term debt	$	608.3	$	605.0	$	609.1	$	589.1
Long-term debt	2,866.9		2,585.8		2,867.8		2,485.4


	June 30, 2023		September 30, 2022
Unrealized losses on foreign exchange contracts	$	22.0	$	31.2
Product warranty obligations	17.0		16.5
Taxes other than income taxes	54.0		65.6
Accrued interest	39.8		18.1
Dividends payable	137.0		0.6
Income taxes payable	130.0		81.1
Operating lease liabilities	83.2		83.3
Other	94.1		106.6
Other current liabilities	$	577.1	$	403.0


	June 30, 2023		September 30, 2022
Fixed income securities	$	0.6	$	12.6
Equity securities (level 1)	863.9		928.8
Equity securities (other)	81.4		76.4
Other	56.7		50.8
Total investments	1,002.6		1,068.6
Less: Short-term investments (1)	(0.6)		(12.6)
Long-term investments	$	1,002.0	$	1,056.0



	December 31, 2017		September 30, 2017
Certificates of deposit and time deposits	$	975.1	$	1,005.3
Commercial paper	26.4		20.3
Corporate debt securities	201.0		199.4
Government securities	123.9		116.8
Asset-backed securities	48.2		45.8
Total	$	1,374.6	$	1,387.6



	Fair Value
Less than one year	$	1,100.5
Due in one to five years	274.1
Total	$	1,374.6



	December 31, 2017
	Level 1		Level 2		Level 3		Total
Certificates of deposit and time deposits	$	—	$	975.1	$	—	$	975.1
Commercial paper	—		26.4		—		26.4
Corporate debt securities	—		201.0		—		201.0
Government securities	106.1		17.8		—		123.9
Asset-backed securities	—		48.2		—		48.2
Total	$	106.1	$	1,268.5	$	—	$	1,374.6



Three Months Ended December 31, 2017
	Pension and other postretirement benefit plan adjustments, net of tax			Accumulated currency translation adjustments, net of tax			Net unrealized gains (losses) on cash flow hedges, net of tax			Net unrealized gains (losses) on available-for-sale investments, net of tax			Total accumulated other comprehensive loss, net of tax
Balance as of September 30, 2017	$	(927.0	)	$	(237.7	)	$	(14.4	)	$	(0.1	)	$	(1,179.2	)
Other comprehensive loss before reclassifications	—			(16.1		)	(3.4		)	(1.1		)	(20.6		)
Amounts reclassified from accumulated other comprehensive loss	20.2			—			3.9			—			24.1
Other comprehensive income (loss)	20.2			(16.1		)	0.5			(1.1		)	3.5
Balance as of December 31, 2017	$	(906.8	)	$	(253.8	)	$	(13.9	)	$	(1.2	)	$	(1,175.7	)



Three Months Ended December 31, 2016
	Pension and other postretirement benefit plan adjustments, net of tax			Accumulated currency translation adjustments, net of tax			Net unrealized gains (losses) on cash flow hedges, net of tax			Net unrealized gains (losses) on available-for-sale investments, net of tax		Total accumulated other comprehensive loss, net of tax
Balance as of September 30, 2016	$	(1,239.8	)	$	(294.9	)	$	(4.1	)	$	—	$	(1,538.8	)
Other comprehensive income (loss) before reclassifications	0.7			(86.2		)	11.8			—		(73.7		)
Amounts reclassified from accumulated other comprehensive loss	23.8			—			(0.2		)	—		23.6
Other comprehensive income (loss)	24.5			(86.2		)	11.6			—		(50.1		)
Balance as of December 31, 2016	$	(1,215.3	)	$	(381.1	)	$	7.5		$	—	$	(1,588.9	)



	Three Months Ended December 31,						Affected Line in the Condensed Consolidated Statement of Operations
	2017			2016
Pension and other postretirement benefit plan adjustments:
Amortization of prior service credit	$	(1.1	)	$	(2.3	)	(a)
Amortization of net actuarial loss	28.7			38.5			(a)
Settlements	—			0.2			(a)
	27.6			36.4			Income before income taxes
	(7.4		)	(12.6		)	Income tax provision
	$	20.2		$	23.8		Net income

Net unrealized losses (gains) on cash flow hedges:
Forward exchange contracts	$	(0.5	)	$	0.5		Sales
Forward exchange contracts	5.9			(1.0		)	Cost of sales
Forward exchange contracts	(0.2		)	0.3			Selling, general and administrative expenses
	5.2			(0.2		)	Income before income taxes
	(1.3		)	—			Income tax provision
	$	3.9		$	(0.2	)	Net income

Total reclassifications	$	24.1		$	23.6		Net income



	IP Index	PMI	Industrial Equipment Spending (in billions)	Capacity Utilization (percent)
Fiscal 2018 quarter ended:
December 2017	106.9	59.7	249.3	77.5
Fiscal 2017 quarter ended:
September 2017	104.8	60.8	246.7	76.2
June 2017	105.1	57.8	241.7	76.6
March 2017	103.7	57.2	234.3	75.8
December 2016	103.3	54.5	229.0	75.8
Fiscal 2016 quarter ended:
September 2016	103.1	51.7	226.0	75.8



	Three Months Ended December 31,
(in millions, except per share amounts)	2017			2016		Change
Sales	$	1,586.6		$	1,490.3	$	96.3
Income before income taxes	297.8			257.6		40.2
Diluted EPS	(1.84		)	1.65		(3.49		)
Adjusted EPS	1.96			1.75		0.21



			Change vs.		Change in Organic Sales⁽¹⁾ vs.
	Three Months Ended December 31, 2017		Three Months Ended December 31, 2016		Three Months Ended December 31, 2016
United States	$	851.9	3.9	%	5.4	%
Canada	92.0		11.2	%	11.5	%
Europe, Middle East and Africa (EMEA)	307.4		13.6	%	4.9	%
Asia Pacific	214.5		4.3	%	1.5	%
Latin America	120.8		8.6	%	8.5	%
Total sales	$	1,586.6	6.5	%	5.3	%



	Three Months Ended December 31,
(in millions, except percentages)	2017			2016			Change
Sales	$	746.9		$	696.4		$	50.5
Segment operating earnings	224.6			208.6			16.0
Segment operating margin	30.1		%	30.0		%	0.1		pts


	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
	Reported Sales		Less: Effect of Acquisitions		Effect of Changes in Currency		Organic Sales		Reported Sales
North America	$	1,260.9	$	4.3	$	(4.9)	$	1,261.5	$	1,239.9
Europe, Middle East and Africa	494.4		15.3		6.8		472.3		352.6
Asia Pacific	343.5		4.2		(17.1)		356.4		246.8
Latin America	139.9		—		1.8		138.1		129.4
Total Company Sales	$	2,238.7	$	23.8	$	(13.4)	$	2,228.3	$	1,968.7



	Three Months Ended December 31, 2017											Three Months Ended December 31, 2016
	Sales		Effect of Changes in Currency			Sales Excluding Effect of Changes in Currency		Effect of Acquisitions		Organic Sales		Sales		Effect of Divestitures			Sales Excluding Divestitures
United States	$	851.9	$	(0.7	)	$	851.2	$	—	$	851.2	$	820.1	$	(12.3	)	$	807.8
Canada	92.0		(4.4		)	87.6		—		87.6		82.7		(4.1		)	78.6
EMEA	307.4		(23.4		)	284.0		—		284.0		270.7		—			270.7
Asia Pacific	214.5		(5.8		)	208.7		—		208.7		205.6		—			205.6
Latin America	120.8		(2.1		)	118.7		—		118.7		111.2		(1.8		)	109.4
Total Company Sales	$	1,586.6	$	(36.4	)	$	1,550.2	$	—	$	1,550.2	$	1,490.3	$	(18.2	)	$	1,472.1


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Approx. Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3)
April 1 - 30, 2023	82,169	$	277.42	82,169	$	1,034,106,108
May 1 - 31, 2023	112,790	272.69		112,432	1,003,447,871
June 1 - 30, 2023	27,168	309.06		27,168	995,051,408
Total	222,127	$	278.88	221,769



Period	Total Number of Shares Purchased	Average Price Paid Per Share⁽¹⁾		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Approx. Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs⁽²⁾
October 1 - 31, 2017	—	$	—	—	$	608,404,669
November 1 - 30, 2017	180,000	192.46		180,000	573,762,216
December 1 - 31, 2017	900,000	193.28		900,000	399,810,783
Total	1,080,000	193.14		1,080,000


~~(1)~~	~~Average price paid per share includes brokerage commissions.~~