What the changes say
- Trade-policy exposure now explicitly highlights tariffs, retaliation, supply-chain disruption, and limited price pass-through.
- Company plans over $2 billion in five years, creating execution and return risk around facilities, digital infrastructure, and talent.
- Regulatory risk expands to AI and BEPS Pillar Two, with Singapore expected to have the greatest impact.
- Litigation disclosure broadens estimated costs beyond asbestos to claim resolution and defense costs.
What changed since the prior 10-K
New
- NewIndustry and Economic Risks
Our profitability and market competitiveness may be adversely impacted by changes in trade policies, including tariffs or other factors
Tariffs, retaliation, and trade-policy uncertainty could raise costs, disrupt supply chains, and limit Rockwell’s ability to recover increases through pricing.
- NewStrategic Transactions and Investments Risks
Significant investments in the business may not achieve intended returns and could adversely affect our financial performance
Rockwell’s planned investment of over $2 billion in facilities, digital infrastructure, and talent may face delays, overruns, integration problems, or weak returns.
- NewLegal, Tax, and Regulatory Risks
New governmental actions and regulations could adversely affect our business
New rules covering AI, climate, cybersecurity, trade, and BEPS Pillar Two could raise costs; Singapore is expected to have the greatest tax impact.
Dropped
- DroppedLegal, Tax, and Regulatory Risks
New legislative and regulatory actions could adversely affect our business
- DroppedLegal, Tax, and Regulatory Risks
(including asbestos claims) and the uncertainties related to the collection of insurance proceeds make it difficult to predict the ultimate resolution of these lawsuits
Reworded
- 71% rewrittenLegal, Tax, and Regulatory Risks
Potential liabilities and costs from litigation could reduce our profitability
Estimated costs now include future claim-resolution and defense costs, with projected legacy asbestos net liabilities replacing asbestos litigation costs alone.
Was: Potential liabilities and costs from litigation (including asbestos claims and environmental remediation) could reduce our profitability
- 55% rewrittenIndustry and Economic Risks
Adverse changes in macroeconomic or industry conditions may result in decreases in our sales and profitability
- 44% rewrittenIndustry and Economic Risks
Our industry is highly competitive
All 21 risk factors
Headings as the filing states them, in filing order.
Industry and Economic Risks
- 01Adverse changes in macroeconomic or industry conditions may result in decreases in our sales and profitability55% rewritten
- 02Our profitability and market competitiveness may be adversely impacted by changes in trade policies, including tariffs or other factorsNew
- 03We face the potential harms of natural disasters, including those as a result of climate change, pandemics, acts of war, terrorism, international conflicts, or other disruptions to our operations, the duration and severity of which are highly uncertain and difficult to predict
- 04Our industry is highly competitive44% rewritten
- 05Volatility and disruption of the capital and credit markets may result in increased costs to maintain our capital structure
Business and Operational Risks
- 06We rely on suppliers to provide equipment, components, and services
- 07Failures or security breaches of our commercial product offerings (which includes hardware, software, services, and solutions), manufacturing environment, supply chain, or information and operational technology systems could have an adverse effect on our business
- 08Product and Services Security
- 09An inability to successfully execute cost productivity and margin expansion initiatives could negatively impact our business and financial results
- 10Our business success depends on attracting, developing, and retaining highly qualified employees
- 11We sell to customers around the world and are subject to the risks of doing business in many countries
- 12An inability to respond to changes in customer preferences could result in decreased demand for our products
- 13There are inherent risks in our solutions and services businesses
- 14We rely on our distribution channel for a substantial portion of our sales
- 15Intellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our business and our customers
- 16Increasing employee benefit costs and funding requirements could have a negative effect on our operating results and financial condition
Strategic Transactions and Investments Risks
- 17Significant investments in the business may not achieve intended returns and could adversely affect our financial performanceNew
- 18Failure to identify, manage, complete, and integrate strategic transactions may adversely affect our business or we may not achieve the expected benefits of these transactions
Legal, Tax, and Regulatory Risks
- 19New governmental actions and regulations could adversely affect our businessNew
- 20Claims from taxing authorities could have an adverse effect on our income tax expense and financial condition
- 21Potential liabilities and costs from litigation could reduce our profitability71% rewritten
Other Rockwell Automation 10-Ks
- FY2024 10-K risk factors20 risks
Cybersecurity risks span Rockwell’s products, manufacturing environment, supply chain, and information and operational technology systems.
Filed Nov 12, 2024
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.