v3.26.3
Business Acquisitions
 9 Months Ended
Sep. 26, 2026
Business Acquisitions [Abstract]  
Business Acquisitions
Note 5
–
Business Acquisitions
Our acquisition strategy is focused on investments in companies, including
high growth high margin businesses
aligned with our BOLD+1 strategy, that add new customers and sales teams, increase our geographic footprint
(whether entering a new country, such as emerging markets, or building scale where we have already invested in
businesses), and finally, those that enable us to access new products and technologies.
2026 Acquisitions
During the nine months ended September 26, 2026, we acquired companies
within the Global Distribution and
Value
-Added Services and Global Specialty Products segments.
Our acquired ownership interest in these
companies ranged from
90
% to
100
%.
The following table aggregates the preliminary estimated fair value, as of
the date of the acquisition, of
consideration paid and net assets acquired for acquisitions during the nine months
ended September 26, 2026:
Preliminary
Allocation as of
September 26, 2026
Acquisition consideration:
Cash
$
26
Deferred consideration
5
Subsidiary common equity issued to sellers
23
Fair value of previously held equity method investments
32
Redeemable noncontrolling interests
7
Total consideration
$
93
Identifiable assets acquired and liabilities assumed:
Current assets
$
10
Intangible assets
35
Other noncurrent assets
3
Current liabilities
(10)
Deferred income taxes
(6)
Other noncurrent liabilities
(1)
Total identifiable
net assets
31
Goodwill
62
Total net assets acquired
$
93
The accounting for acquisitions in the nine months ended September 26, 2026
has not been completed in several
areas, including, but not limited to, pending assessment of certain
assets and certain liabilities.
Goodwill is a result of the synergies and cross-selling opportunities that these acquisitions
are expected to provide
for us, as well as the expected growth potential.
The majority of the acquired goodwill is not deductible
for tax
purposes.
The following table summarizes the intangible assets acquired during the nine
months ended September 26, 2026:
Weighted Average
2026
Useful Lives (in years)
Customer relationships and lists
$
31
7
Trademarks / Tradenames
4
5
Total
$
35
During the nine months ended September 26, 2026,
in connection with acquisitions
of controlling interests of
affiliates, we recognized a gain of approximately $
11
million related to the remeasurement to fair value of our
previously held equity investment,
recognized during the first quarter.
Such gain was calculated using a discounted
cash flow model based on Level 3 inputs, as defined in
which was recorded in
selling, general and administrative
in the condensed consolidated statements of income.
The impact of these acquisitions, individually and in the aggregate, was
not considered material to our condensed
consolidated financial statements.
Pro forma financial information since the acquisition date has not been presented
because the impact of these
acquisitions, individually and in the aggregate, was immaterial to our
condensed consolidated financial statements.
2025 Acquisitions
During the year ended December 27, 2025, we acquired companies within
the Global Distribution and Value-
Added Services,
Global Specialty Products and Global Technology segments.
Our acquired ownership interest in
these companies range from
60
% to
100
%.
The following table aggregates the final fair value, as of the date of the acquisition,
of consideration paid and net
assets acquired for acquisitions during the year ended December 27, 2025:
Final
Allocation
Acquisition consideration:
Cash
$
194
Deferred consideration
3
Estimated fair value of contingent consideration payable
19
Fair value of previously held equity method investments
89
Redeemable noncontrolling interest
85
Total consideration
$
390
Identifiable assets acquired and liabilities assumed:
Current assets
$
57
Intangible assets
146
Other noncurrent assets
50
Current liabilities
(25)
Long-term debt
(2)
Deferred income taxes
(21)
Other noncurrent liabilities
(6)
Total identifiable
net assets
199
Goodwill
191
Total net assets acquired
$
390
During the nine months ended September 26, 2026, we completed the accounting
for all acquisitions that occurred
in the year ended December 27, 2025.
Measurement period adjustments recorded through September 26,
2026
were immaterial and primarily related to certain intangible assets.
Goodwill is a result of the synergies and cross-selling opportunities that these acquisitions
are expected to provide
for us, as well as the expected growth potential.
The majority of the acquired goodwill is not deductible
for tax
purposes.
During the three and nine months ended September 27, 2025, in connection
with acquisitions of controlling
interests of affiliates, we recognized gains of approximately $
28
million and $
32
million, respectively, related to the
remeasurement to fair value of our previously held equity investments.
Such gains were calculated using a
discounted cash flow model based on Level 3 inputs,
which was
recorded in selling, general and administrative in the condensed consolidated
statements of income.
The following table summarizes the intangible assets acquired during the year
ended December 27, 2025:
Weighted Average
2025
Useful Lives (in years)
Customer relationships and lists
$
87
10
Trademarks / Tradenames
40
7
Product development
18
10
Non-compete agreements
1
5
Total
$
146
Pro forma financial information for our 2025 acquisitions has not been
presented because the impact of these
acquisitions, individually and in the aggregate, was immaterial to our
condensed consolidated financial statements.
Acquisition Costs
During the three and nine months ended September 26, 2026, we incurred
$
0
million and $
3
million in acquisition
costs, respectively.
During the three and nine months ended September 27, 2025,
we incurred $
1
million and $
4
million in acquisition costs, respectively.
These costs are included in selling, general and administrative
in our
condensed consolidated statements of income.