Company: QXO-PB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050298
Chunk: 66

Company: QXO, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 purchase price allocation, the Company recorded certain measurement period adjustments based on updated valuations and the related deferred taxes, having a net impact of decreasing goodwill by $69.7 million.(in millions)PreliminaryAllocationAssets:Accounts receivable$1,338.2 Inventories1,826.1 Vendor rebates receivable240.2 Income tax receivable20.1 Prepaid expenses and other current assets82.3 Property and equipment688.3 Goodwill5,068.9 Intangibles4,130.6 Operating lease right-of-use assets704.3 Other non-current assets18.7 Liabilities:Accounts payable(1,163.6)Accrued expenses(490.1)Deferred incomes taxes(940.3)Other long-term liabilities(27.6)Operating lease liabilities(670.6)Finance lease liabilities(181.5)Preliminary aggregate acquisition consideration$10,644.0 The following table presents a summary of intangible assets acquired and the weighted average useful life of these assets:(in millions, except weighted average useful life)Preliminary Fair ValueWeighted Average Useful Life in YearsCustomer relationships$3,900.6 10.0Trade names230.0 3.0Total intangible assets acquired$4,130.6 9.6The preliminary fair value estimate of the customer relationships intangible asset was determined using the multi-period excess earnings method. The excess earnings methodology is an income approach methodology that estimates the projected cash flows of the business attributable to the customer relationships intangible asset, net of charges for the use of other identifiable assets of the business including working capital, fixed assets and other intangible assets. The preliminary fair value estimate of the trade names intangible asset was determined using the relief-from-royalty method, which presumes the owner of the asset avoids hypothetical royalty payments that would need to be made for the use of the asset if the asset was not owned. Key inputs used in the discounted cash flow analyses and other areas of judgment include projected financial information, discount rates used to present value future cash flows, attrition rates, royalty rates, economic useful life of assets and tax rates, as relevant, that market participants would consider when estimating fair values.The Company incurred transaction costs of approximately $74.8 million related to the Beacon Acquisition. These costs were associated with legal and professional services and were recognized in selling, general and administrative expenses on the condensed consolidated statement of operations. 

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