Acquisition (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Preliminary Purchase Price Allocation, Including Measurement Period Adjustments with Corresponding Changes to Goodwill

The following table presents the preliminary purchase price allocation, including adjustments made during the quarter (measurement period adjustments) with corresponding changes to goodwill (dollars in millions):


	As of January 1, 2026 (as previously reported)		Measurement Period Adjustments (a)			As of January 1, 2026 (as adjusted)
Assets acquired:
Current Assets
Cash and cash equivalents	$	101		-		$	101
Accounts receivable		362		-			362
Inventories		577		-			577
Other current assets		115		-			115
Total Current Assets		1,155		-			1,155
Property, plant and equipment		843		24			867
Intangible assets		930		(54	)		876
Goodwill		763		(8	)		755
Other non-current assets		96		36			132
Total Assets Acquired		3,787		(2	)		3,785
Liabilities Assumed:
Current Liabilities
Accounts payable		415		-			415
Product warranty liability		38		-			38
Current portion of long-term debt		3		-			3
Deferred revenue		31		-			31
Other current liabilities		185		-			185
Total Current Liabilities		672		-			672
Deferred income taxes		300		(2	)		298
Finance lease liabilities		34		-			34
Other non-current liabilities		153		-			153
Total Liabilities	$	1,159		(2	)	$	1,157
Total purchase price consideration		2,628		-			2,628

(a)

The changes in the estimated fair values are primarily to better reflect market participant assumptions about facts and circumstances existing as of the acquisition date. The measurement period adjustments resulted in an $8 million net decrease to goodwill and did not have a material impact on the Company's earnings. The measurement period adjustments did not result from intervening events subsequent to the acquisition date.

Schedule of Estimated Fair Values of Identifiable Intangible Assets Acquired

The estimated fair values of the identifiable intangible assets acquired (all considered Level 3 measurements), their weighted-average useful lives, the related valuation methodology and key assumptions are as follows (dollars in millions):


	Fair Value		Weighted-average estimated useful life (in years)	Valuation Methodology	Key Assumptions
Customer relationships	$	513	19 years	Multi-period excess earnings	Revenue growth rates, estimated earnings, discount rate, customer attrition rates
Trade names		128	8 years	Relief-from-royalty	Revenue growth rates, royalty rates, discount rate
Developed technology		235	6 years	Relief-from-royalty	Revenue growth rates, royalty rates, discount rate, obsolescence factors
Total identified intangible assets acquired	$	876

Schedule of Supplemental Pro-Forma Information

The following table presents supplemental pro-forma information for the three and six months ended June 30, 2026


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net sales	$	1,566	$	1,475	$	2,972	$	2,842
Net income	$	189	$	194	$	371	$	283