Business Combinations (Tables)

6 Months Ended

Jun. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

The following table shows the purchase price in accordance with ASC 805:


Description
Cash consideration to seller	$	2,788.3
Howden's debt settled at close	1,529.0
Settlement of seller transaction costs	67.2
Funds held in escrow	20.4
Working capital adjustment	(17.5)
Total ASC 805 purchase price	$	4,387.4

Schedule of Fair Values of the Assets Acquired and Liabilities Assumed

The following table summarizes the fair values of the assets acquired and liabilities assumed in the Howden Acquisition as of the acquisition date:


	Fair Value
Net assets acquired:
Cash and cash equivalents	$	62.5
Restricted cash	2.6
Accounts receivable	422.7
Inventories	256.8
Unbilled contract revenue	167.8
Prepaid expenses	51.9
Other current assets	101.4
Assets held for sale	225.7
Property, plant and equipment	325.1
Identifiable intangible assets	2,434.5
Equity method investments	12.0
Other assets	117.3
Accounts payable	(385.7)
Customer advances and billings in excess of contract revenue	(233.2)
Accrued salaries, wages and benefits	(103.3)
Accrued income taxes	(34.0)
Current portion of warranty reserve	(38.5)
Current portion of long-term debt	(1.4)
Other current liabilities	(158.8)
Liabilities held for sale	(43.9)
Long-term deferred tax liabilities	(663.6)
Operating lease liabilities	(52.3)
Finance lease liabilities	(8.1)
Accrued pension liabilities	(6.0)
Other long-term liabilities	(45.7)
Total identifiable net assets assumed	2,405.8
Noncontrolling interest (1)	(146.3)
Goodwill (2)	2,127.9
Net assets acquired	$	4,387.4

Assets acquired net of cash, cash equivalents and restricted cash	$	4,322.3

_______________

(1)As part of the Howden Acquisition, we acquired 82% of Howden Hua Engineering Co., Ltd, an entity based in China. The noncontrolling interest was valued at $146.0.

(2)Includes $102.2 and $49.7 allocated to the Roots and American Fan divestitures, respectively.

Schedule of Identifiable Intangible Assets Acquired

The following table summarizes information regarding identifiable intangible assets acquired in the Howden Acquisition:


	Estimated Useful Lives	Fair Value
Finite-lived intangible assets acquired:
Customer relationships	18 years	$	1,533.0
Backlog	3 years	135.0
Technology	5 to 14 years	296.0
Total finite-lived intangible assets acquired		1,964.0
Indefinite-lived intangible assets acquired:
Trade names		470.5
Total intangible assets acquired		$	2,434.5