BUSINESS COMBINATIONS

3 Months Ended

Mar. 31, 2026

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

BUSINESS COMBINATIONS

The Company regularly evaluates potential acquisitions that strategically fit with the Company’s existing portfolio or expand the Company’s portfolio into a new and attractive business area. Acquisitions are accounted for as business combinations using the acquisition method of accounting. As such, the Company makes a preliminary allocation of the purchase price to the tangible assets and identifiable intangible assets acquired and liabilities assumed. In the months after closing, as the Company obtains additional information about the acquired assets and liabilities and learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Purchase price is allocated to acquired assets and liabilities assumed based upon their estimated fair values, with limited exceptions as permitted pursuant to GAAP, as determined based on estimates and assumptions deemed reasonable by the Company. The Company engages third-party valuation specialists to assist with preparation of critical assumptions and calculations of the fair value of acquired tangible and intangible assets in connection with significant acquisitions. The excess of the purchase price over the tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. Goodwill is attributable to the workforce of the acquired businesses, the complementary strategic fit and resulting synergies these businesses bring to existing operations, and the opportunities in new markets expected to be achieved from the expanded platform.

2026 Acquisitions

On February 2, 2026, the Company completed the acquisition of CertaSite, LLC ("CertaSite"), an inspection-first provider of fire and life safety services. The results of the CertaSite business are reported within the Company's Safety Services segment from the date of acquisition and were not material. Consideration transferred of $271 for CertaSite included cash paid at closing of $268 and cash deposited in escrow of $3.

During the three months ended March 31, 2026, the Company completed four individually immaterial acquisitions for aggregate consideration transferred of $25, made up of cash paid at closing of $19 and accrued consideration of $6. The results of operations of these acquisitions are included in the Company's condensed consolidated statements of operations from the date of acquisition and were not material.


	CertaSite		Other 2026 Acquisitions
Cash paid at closing	$	268	$	19
Cash deposited into escrow	3		—
Accrued consideration	—		6
Total net consideration	$	271	$	25

Cash and cash equivalents	$	3	$	1
Accounts receivable	18		1
Inventories	6		—
Contract assets	3		—
Other current assets	1		—
Operating lease right-of-use assets	4		—
Property and equipment	7		—
Intangible assets	98		8
Goodwill	156		15
Accounts payable	(3)		—
Other accrued liabilities	(4)		—
Operating and finance lease liabilities	(7)		—
Other noncurrent liabilities	(11)		—
Net assets acquired	$	271	$	25

The Company has not finalized its accounting for any of the acquisitions completed during 2026 and will make appropriate adjustments to the purchase price allocation prior to completion of the measurement periods, as required. Based on preliminary estimates, the total amount of goodwill from acquisitions expected to be deductible for tax purposes is $122. See Note 6 – “Goodwill and Intangibles” for the provisional goodwill assigned to each segment.

2025 Acquisitions

During the year ended December 31, 2025, the Company completed 14 acquisitions for total net consideration transferred of $235, made up of cash paid at closing of $186, cash deposited into escrow of $17, and accrued consideration of $32. The results of operations of these acquisitions are included in the Company's consolidated statements of operations from their respective dates of acquisition and were not material.


	2025 Acquisitions
Cash paid at closing	$	186
Cash deposited into escrow	17
Accrued consideration	32
Total net consideration	$	235

Cash and cash equivalents	$	13
Accounts receivable	24
Contract assets	2
Other current assets	1
Property and equipment	3
Intangible assets	88
Goodwill	135
Accounts payable	(8)
Other accrued liabilities	(13)
Contract liabilities	(7)
Other noncurrent liabilities	(3)
Net assets acquired	$	235

The Company has not finalized its accounting for 13 of the acquisitions completed during 2025 and will make appropriate adjustments to the purchase price allocation prior to completion of the measurement periods, as required. Based on preliminary estimates, the total amount of goodwill from acquisitions expected to be deductible for tax purposes is $118.

Accrued consideration

The Company’s acquisition purchase agreements typically include deferred payment provisions, often to sellers who become employees of the Company or its subsidiaries. The provisions are made up of three general types of arrangements, contingent compensation, contingent consideration (both of which are contingent on the future performance of the acquired entity), and deferred payments related to indemnities. Contingent compensation arrangements are typically contingent on the former owner’s future employment with the Company and the related amounts are recognized over the required employment period, which is typically one to four years. Contingent consideration arrangements are not contingent on employment and are included as part of purchase consideration at the time of the initial acquisition and are paid over a period of one to four years. The liability for deferred payments is recognized at the date of acquisition based on the Company’s best estimate and is typically payable over a period of one to three years. Deferred payments are not contingent on any future performance or employment obligations and can be offset for working capital true-ups and representations and warranty items.

The total contingent compensation arrangement liability was $7 as of March 31, 2026 and December 31, 2025. The maximum payout of these arrangements upon completion of the future performance periods was $15, inclusive of the $7, accrued as of March 31, 2026 and December 31, 2025. The contingent compensation liability is included in contingent consideration and compensation liabilities in the condensed consolidated balance sheets for all periods presented. The Company primarily determines the contingent compensation liability based on forecasted cumulative earnings compared to the cumulative earnings target set forth in the arrangement. Compensation expense associated with these arrangements is recognized ratably over the required employment period.

The contingent consideration obligations are measured at fair value each reporting period and changes in estimates of fair value are recognized in earnings. For additional considerations regarding the fair value of the Company's contingent consideration liabilities, see Note 7 – "Fair Value of Financial Instruments."

The total liability for deferred payments was $44 and $39 as of March 31, 2026 and December 31, 2025, respectively, and is included in contingent consideration and compensation liabilities in the condensed consolidated balance sheets for all periods presented.

- Definition

The entire disclosure for business combination.

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