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Acquisitions
 6 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
The Company acquired seven businesses during the six months ended June 30, 2026. Each of the acquired businesses is generally engaged in the distribution of plumbing, HVAC, wastewater or infrastructure related products or solutions and was acquired to support growth. In each acquisition, the Company obtained control of an integrated set of activities and assets that met the definition of a business under FASB Accounting Standards Codification (ASC) 805, Business Combinations. Accordingly, the acquisitions were accounted for as business combinations in accordance with ASC 805.
The following table summarizes the preliminary purchase price allocation for the assets acquired and liabilities assumed in regard to the Company's acquisitions:
(In millions)
Cash and cash equivalents$38 
Trade and other receivables57 
Inventories55 
Property, plant and equipment7 
Right of use assets17 
Trade names and brands21 
Customer relationships288 
Other intangible assets20 
Trade and other payables(56)
Lease liabilities(17)
Deferred tax(43)
Total387 
Goodwill251 
Consideration$638 
Satisfied by:
Cash$621 
Deferred & other consideration17 
Total consideration$638 
The fair values of the net assets acquired are considered preliminary and are based on management’s best estimates. Further adjustments may be necessary in connection with acquisitions completed in a prior period when additional information becomes available about events that existed at the date of acquisition. Amendments to fair value estimates may be made to these figures during the measurement period following the date of acquisition. There were no material adjustments in the current year that related to the closing of the measurement period of acquisitions made in the prior year. As of the date of this Quarterly Report, the Company has made all known material adjustments related to acquisitions in 2026.
The fair value estimates of intangible assets are considered non-recurring, Level 3 measurements within the fair value hierarchy and are estimated as of each respective acquisition date.
The goodwill on these acquisitions is attributable to the anticipated profitability of the new markets and product ranges to which the Company has gained access and additional profitability, operating efficiencies and other synergies available in connection with existing markets. All of the goodwill acquired during the six months ended June 30, 2026 was attributed to the United States, with $99 million expected to be deductible for tax purposes.
Deferred consideration represents the expected payout due to certain sellers of acquired businesses that is subject to either 1) a contractual settle-up period or 2) a contingency related to contractually defined performance metrics. If the deferred consideration is contingent on achieving performance metrics, the liability is estimated using assumptions regarding the expectations of an acquiree’s ability to achieve such performance metrics over a period of time that typically spans one to three years. When ultimately paid, deferred consideration is reported as a cash outflow from financing activities.
The businesses acquired during the year-to-date period of 2026 contributed $58 million to net sales and $15 million in losses to the Company’s income before income tax, including transaction and integration costs of $19 million, as well as related acquired intangible asset amortization for the period between the applicable date of acquisition and June 30, 2026. Acquisition costs are expensed as incurred and included in selling, general and administrative expenses in the Company’s consolidated statements of earnings.
The net outflow of cash related to business acquisitions is as follows:  
Six months ended
(In millions)June 30, 2026
Purchase consideration$621 
Cash, cash equivalents and bank overdrafts acquired(38)
Cash consideration paid, net of cash acquired583 
Deferred and contingent consideration(1)
7 
Net cash outflow in respect of the purchase of businesses$590 
(1) Included in other financing activities in the Condensed Consolidated Statements of Cash Flows.
Pro forma disclosures
If each acquisition had been completed on the first day of the prior year, the Company’s unaudited pro forma net sales would have been:
Three months endedSix months ended
June 30,June 30,
(In millions)2026202520262025
Pro forma net sales$8,788 $8,458 $16,354 $15,767 
The impact on income before income tax, including additional amortization, transaction costs and integration costs would not be material in the three and six months ended June 30, 2026 and 2025.
These unaudited pro forma results do not necessarily represent financial results that would have been achieved had the acquisition actually occurred at the beginning of the prior year.