Following is a discussion of quarter and full year results for our business segments.
Intelligent Devices
Intelligent Devices fiscal 2022 fourth quarter sales were $957 million, an increase of 11.7% compared to $857 million in the same period last year. Organic sales increased 16.3% and currency translation decreased sales by 4.6%. Segment operating earnings were $213 million in the fourth quarter of fiscal 2022 compared to $166 million in the same period last year. Segment operating margin increased to 22.3% in the fourth quarter of fiscal 2022 from 19.4% a year ago, primarily due to higher sales and positive price/cost, partially offset by unfavorable currency impact.
Intelligent Devices fiscal 2022 sales were $3,545 million, an increase of 7.0% from $3,312 million last year. Organic sales increased 9.7% and currency translation decreased sales by 2.7%. Segment operating earnings were $718 million in fiscal 2022 compared to $702 million in fiscal 2021. Segment operating margin decreased to 20.2% in fiscal 2022 from 21.2% a year ago, primarily due to negative price/cost and higher investment spend partially offset by higher sales and lower incentive compensation.
Software & Control
Software & Control fiscal 2022 fourth quarter sales were $657 million, an increase of 33.0% compared to $494 million in the same period last year. Organic sales increased 32.2%, currency translation decreased sales by 5.3%, and acquisitions increased sales by 6.1%. Segment operating earnings were $227 million in the fourth quarter of fiscal 2022 compared to $120 million in the same period last year. Segment operating margin increased to 34.5% in the fourth quarter of fiscal 2022 from 24.2% a year ago, primarily related to higher sales and positive price/cost, partially offset by unfavorable currency impact.
Software & Control fiscal 2022 sales were $2,313 million, an increase of 18.8% from $1,947 million last year. Organic sales increased 13.8%, currency translation decreased sales by 2.7%, and acquisitions increased sales by 7.7%. Segment operating earnings were $667 million in fiscal 2022 compared to $531 million in fiscal 2021. Segment operating margin increased to 28.8% in fiscal 2022 from 27.3% a year ago, primarily due to higher sales and lower incentive compensation, partially offset by higher investment spend and the impact of acquisitions.
Lifecycle Services
Lifecycle Services fiscal 2022 fourth quarter sales were $512 million, an increase of 12.1% compared to $457 million in the same period last year. Organic sales increased 15.8%, currency translation decreased sales by 4.6%, and acquisitions increased sales by 0.9%. Segment operating earnings were $54.7 million in the fourth quarter of fiscal 2022 compared to $37.1 million in the same period last year. Segment operating margin increased to 10.7% in the fourth quarter of fiscal 2022 from 8.1% a year ago, primarily due to higher sales.
Lifecycle Services fiscal 2022 sales were $1,903 million, an increase of 9.5% from $1,739 million last year. Organic sales increased 11.4%, currency translation decreased sales by 2.5%, and acquisitions increased sales by 0.6%. Segment operating earnings were $158 million in fiscal 2022 compared to $158 million in fiscal 2021. Segment operating margin decreased to 8.3% in fiscal 2022 from 9.1% a year ago, primarily due to supply chain constraints and higher investment spend, partially offset by higher sales and lower incentive compensation.
Supplemental Information
ARR - Total ARR and organic ARR grew 14% compared to the end of the fourth quarter of fiscal 2021.
Corporate and Other - Fiscal 2022 fourth quarter corporate and other expense was $35.1 million compared to $33.0 million in the fourth quarter of 2021. Corporate and other expense was $105 million for the full fiscal year 2022 compared to $121 million in fiscal 2021. The prior year includes deal costs associated with the acquisition of Plex Systems.
Purchase Accounting Depreciation and Amortization - Fiscal 2022 fourth quarter purchase accounting depreciation and amortization expense was $25.8 million, up $8.4 million from the fourth quarter of fiscal 2021. Full year fiscal 2022 purchase accounting depreciation and amortization expense was $104 million, up $48.8 million from fiscal 2021 primarily related to the August 2021 acquisition of Plex Systems.
Tax - On a GAAP basis, the effective tax rate in the fourth quarter of fiscal 2022 was 17.2% compared to (1,635)% in the fourth quarter of 2021. The Adjusted Effective Tax Rate for the fourth quarter of fiscal 2022 was 17.8% compared to (3.1)% in the fourth quarter of 2021. The effective tax rate for the full fiscal year 2022 was 14.4% compared to 11.9% in fiscal 2021. The Adjusted Effective Tax Rate for the full fiscal year 2022 was 16.0% compared to 11.6% in fiscal 2021. These increases were related to higher discrete benefits in the prior year.
Share Repurchases - The Company repurchased 0.3 million shares of its common stock at a cost of $75.6 million during the fourth quarter of fiscal 2022. For the full fiscal year 2022, the Company repurchased 1.3 million shares of its common stock at a cost of $301 million. At September 30, 2022, $1.3 billion remained available under our existing share repurchase authorization.
ROIC - Return on invested capital for fiscal year 2022 was 15.2% compared to 30.7% for fiscal year 2021. The decrease was primarily related to higher invested capital and lower pre-tax income primarily related to the PTC adjustments.
Definitions
Non-GAAP Measures - Organic sales, total segment operating earnings, total segment operating margin, Adjusted Income, Adjusted EPS, Adjusted Effective Tax Rate, free cash flow, free cash flow conversion, and return on invested capital are non-GAAP measures that are reconciled to GAAP measures in the attachments to this release.
Organic ARR - Annual recurring revenue (ARR) is a key metric that enables measurement of progress in growing our recurring revenue business. It represents the annual contract value of all active recurring revenue contracts at any point in time. Recurring revenue is defined as a revenue stream that is contractual, typically for a period of 12 months or more, and has a high probability of renewal. The probability of renewal is based on historical renewal experience of the individual revenue streams, or management's best estimates if historical renewal experience is not available. Organic ARR growth is calculated as the dollar change in ARR, adjusted to exclude the effects of currency translation and acquisitions, divided by ARR as of the prior period. The effects of currency translation are excluded by calculating Organic ARR on a constant currency basis. When we acquire businesses, we exclude the effect of ARR in current period for which there was no comparable ARR in the prior period. Organic ARR growth is also used as a financial measure of performance for our annual incentive compensation. Because ARR is based on annual contract value, it does not represent revenue recognized during a particular reporting period or revenue to be recognized in future reporting periods and is not intended to be a substitute for revenue, contract liabilities, or backlog.
Conference Call
A conference call to discuss our financial results will take place at 8:30 a.m. Eastern Time on Wednesday, November 2, 2022. The call will be an audio webcast and accessible on the Rockwell Automation website ( https://ir.rockwellautomation.com/investors/). Presentation materials will also be available on the website prior to the call.
Interested parties can access the conference call by dialing the following numbers: (888) 330-2022 in the U.S. and Canada; (646) 960-0690 for other countries. Use the following passcode: 5499533. Please dial in 10 minutes prior to the start of the call.
Both the presentation materials and a replay of the call will be available on the Investor Relations section of the Rockwell Automation website through December 2, 2022.
This news release 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:
