Company: AOS
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000091142-25-000075
Chunk: 18

Company: SMITH A O CORP
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 18
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5 and 2024, respectively, based on the price of the Company’s Common Stock at the date of grant. The performance stock units are recognized as compensation expense ratably over the three-year vesting period. Stock based compensation expense attributable to performance stock units of $0.5 million and $0.3 million was recognized in the three months ended March 31, 2025 and 2024, respectively. Certain non-U.S.-based executives receive the cash value of the share price at the vesting date in lieu of shares. Unvested cash-settled awards are remeasured at each reporting period.A summary of performance stock unit activity under the Incentive Plan is as follows for the three months ended March 31, 2025:Number of UnitsWeighted-AverageGrant Date ValueIssued and unvested at January 1, 202574,398 $75.40 Granted35,365 65.51 Issued and unvested at March 31, 2025109,763 72.21 

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9. Segment Results

The Company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. Three Months Ended March 31, 2025(dollars in millions)North AmericaRest of WorldInter-segment EliminationTotal SegmentsLess: Corporate ExpensesTotalSales from external customers$743.4 $220.5 $— $963.9 $— $963.9 Inter-segment sales5.3 6.2 — 11.5 — 11.5 748.7 226.7 — 975.4 — 975.4 Elimination of Inter-segment sales(5.3)(6.2)— (11.5)— (11.5)Net Sales743.4 220.5 — 963.9 — 963.9 Cost of products sold445.7 142.8 — 588.5 — 588.5 Gross Profit297.7 77.7 — 375.4 — 375.4 Inter-segment Profit— — — —