Company: AOS
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000091142-25-000075
Chunk: 14

Company: SMITH A O CORP
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 14
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 a combination of replacement of existing products and new construction.Water treatment products The Company’s water treatment products range from point-of-entry water softeners, solutions for problem well water, and whole-home water filtration products to on-the-go filtration bottles, point-of-use carbon, and reverse osmosis products. Typical applications for the Company’s water treatment products include residences, restaurants, hotels and offices. The Company sells water treatment products through its retail and wholesale distribution channels, similar to water heaters. The Company’s water treatment products are also sold through independent water quality dealers as well as directly to consumers including through e-commerce sales channels. A portion of the Company’s sales of water treatment products in the North America segment is comprised of replacement filters.

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Table of Contents2. Revenue Recognition (continued)

The following table disaggregates the Company’s net sales by segment. As described above, the Company’s North America segment sales are further disaggregated by major product line. In addition, the Company’s Rest of World segment sales are disaggregated by China and all other Rest of World:(dollars in millions)Three Months EndedMarch 31,20252024North AmericaWater heaters and related parts$624.6 $648.3 Boilers and related parts64.4 58.7 Water treatment products and related parts59.7 59.3 Total North America748.7 766.3 Rest of WorldChina$187.2 $200.6 All other Rest of World39.5 26.3 Total Rest of World226.7 226.9 Inter-segment sales(11.5)(14.4)Total Net Sales$963.9 $978.8 

3. Acquisitions 

During the fourth quarter of 2024, the Company acquired Pureit, a residential water purification business in South Asia, from Unilever for an aggregate purchase price of $124.6 million. The acquired company is included in the Rest of World segment. The purchase 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