Company: AOS
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000091142-25-000075
Chunk: 15

Company: SMITH A O CORP
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 15
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 liabilities assumed at the date of acquisition. Of the $57.4 million of acquired identifiable intangible assets, $48.9 million was assigned to trademarks that are not subject to amortization, $3.9 million was assigned to patents which are amortized over 15 years, and the remaining $4.6 million was assigned to customer relationships which are amortized over two to three years. The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill. The following table summarizes the estimated fair values of Pureit's assets acquired and liabilities assumed at the date of acquisition:November 1, 2024 (dollars in millions)Current assets$5.6 Property, plant and equipment0.6 Intangible assets57.4 Goodwill62.9 Total assets acquired126.5 Current liabilities(1.9)Net assets acquired$124.6 During the first quarter of 2024, the Company acquired a privately-held water treatment company. The Company paid an aggregate cash purchase price of $21.3 million, net of cash acquired. The Company also agreed to make contingent payments based on the amount by which sales of products increase over the next three years. The addition of the acquired company expanded the Company's water treatment footprint in North America. The acquired company is included in the North America segment.

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Table of Contents

4. Inventories

The following table presents the components of the Company’s inventory balances:(dollars in millions)March 31,2025December 31, 2024Finished products$189.8 $196.1 Work in process43.7 42.4 Raw materials342.7 343.0 Inventories, at FIFO cost576.2 581.5 LIFO reserve(43.6)(49.4)Inventories, at LIFO cost$532.6 $532.1 

5. Product Warranties

The Company offers warranties on the sales of certain of its products with terms that are consistent with the market and records an accrual for the estimated future claims. The following table presents the Company’s warranty liability activity:(dollars in millions)Three Months EndedMarch 31,20252024Balance at January 1,$190.4 $188.1 Expense19.4 19.7 Acquired obligations(1)1.1 — Claims settled(16