Company: AOS
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000091142-25-000150
Chunk: 15

Company: SMITH A O CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 15
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 price consisted of an initial cash payment of $117.9 million upon the closing of the transaction and a separate payment of $6.7 million for inventory made under a transitional supply agreement with Unilever. The Company incurred acquisition costs of approximately $1.4 million.  The purchase price allocation remains preliminary and subject to final valuation adjustments that will be completed within the one-year period following the acquisition date.  The following table summarizes the preliminary allocation of the fair value of the assets acquired and liabilities assumed at the date of acquisition. Of the $56.5 million of acquired identifiable intangible assets, $48.5 million was assigned to trademarks that are not subject to amortization, $3.8 million was assigned to patents which are amortized over 15 years, and the remaining $4.2 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 allocation of the purchase price to goodwill decreased by $0.9 million in the second quarter of 2025 due to valuation adjustments related to identifiable intangible assets. (dollars in millions)Current assets$5.6 Property, plant and equipment0.6 Intangible assets56.5 Goodwill63.8 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)September 30,2025December 31, 2024Finished products$187.4 $196.1 Work in process46.1 42.4 Raw materials320.7 343.0 Inventories, at FIFO cost554.2 581.5 LIFO reserve(46.9)(49.4)Inventories, at LIFO cost$507.3 $532.