Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 66

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 66
---
 of the Beacon Acquisition, with the excess purchase consideration recorded to goodwill. Goodwill reflects the assembled workforce of Beacon as well as operating synergies that are expected to result from the Beacon Acquisition. All preliminary goodwill is not deductible for tax purposes.The purchase price allocation is preliminary and subject to change. The Company is continuing to obtain information to complete its valuation of certain assets and liabilities, in addition to ensuring all other assets and liabilities and contingencies have been identified and recorded. The Company has estimated the preliminary fair value of assets acquired and liabilities assumed based on information currently available and will continue to adjust those estimates as additional information pertaining to events or circumstances present at the Closing Date becomes available during the measurement period. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments occur, and the Company will finalize its accounting for the Beacon Acquisition within one year of the Closing Date. 

16

The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed, and a reconciliation to total consideration transferred:(in millions)PreliminaryApril 29, 2025Assets:Accounts receivable$1,349.3 Inventories1,833.2 Vendor rebates receivable240.1 Income tax receivable20.1 Prepaid expenses and other current assets82.3 Property and equipment695.2 Goodwill5,138.6 Intangibles4,080.6 Operating lease right-of-use assets744.2 Other non-current assets18.7 Liabilities:Accounts payable(1,163.6)Accrued expenses(488.5)Deferred incomes taxes(1,022.8)Other long-term liabilities(31.3)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$3,850.6 10.0Trade names230.03.0Total intangible assets acquired$4,080.6 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