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Acquisitions | 6 Months Ended
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Jun. 30, 2016
Acquisitions |
Acquisitions | Note 11—Acquisitions On January 8, 2016, the Company acquired all of the share capital of FCI Asia Pte Ltd (“FCI”) for a purchase price of approximately $1,178.6 (subject to closing adjustments), net of cash acquired. The acquisition was funded by cash, cash equivalents and short-term investments that were held outside of the United States. In the first quarter of 2016, the Company incurred approximately $30.3 ($27.3 after-tax) of acquisition-related expenses related to the acquisition of FCI, which are separately presented in the accompanying Condensed Consolidated Statements of Income, primarily related to external transaction costs, amortization related to the value associated with acquired backlog and post-closing restructuring charges. In addition, during the second quarter of 2015, the Company incurred approximately $5.7 ($5.7 after-tax) of acquisition-related expenses related to professional fees and other external expenses primarily related to the FCI acquisition. The accompanying Condensed Consolidated Statements of Income include the results of FCI for the period from the acquisition date through June 30, 2016. Excluding the impact of acquisitions as well as the negative impact of foreign exchange of approximately $9.0 and $28.4 for the three and six months ended June 30, 2016, respectively, compared to the same prior year periods, the Company’s n et sales increased approximately 4% and 1% in the three and six months ended June 30, 2016, respectively, compared to the same prior year periods. Headquartered in Singapore, FCI, a global leader in interconnect solutions for the information technology and data communications, industrial, mobile networks, automotive and mobile devices markets, is reported as part of the Company’s Interconnect Products and Assemblies segment. FCI is a leading supplier of high-speed backplane and mezzanine connectors, power interconnect solutions and a wide variety of board-mounted interconnects. Allocation of Purchase Price The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed of FCI based upon their estimated fair values. The excess purchase price over the fair value of the underlying net assets acquired was allocated to goodwill, which primarily represents the value of the assembled workforce along with anticipated cost savings and efficiencies associated with the integration of FCI and other intangible assets acquired that do not qualify for separate recognition. The Company is in the process of completing its analysis of the fair value of the net assets acquired through the use of independent valuations and management’s estimates. Since the following information is based on preliminary assessments made by management, the acquisition accounting for FCI is subject to final adjustment and it is possible that the final assessment of values may differ from this preliminary assessment. The following table summarizes the preliminary assessment of the estimated fair values of the identifiable assets acquired and liabilities assumed, net of cash acquired, as of the date of acquisition of January 8, 2016.
Accounts receivable |  | $ | 97.1 |
Inventories |  | 65.8 |
Other current assets |  | 13.4 |
Land and depreciable assets |  | 78.2 |
Goodwill |  | 933.1 |
Intangible assets |  | 252.0 |
Other long-term assets |  | 13.0 |
Assets acquired |  | 1,452.6 |
Accounts payable |  | 61.6 |
Other current liabilities |  | 55.0 |
Accrued pension benefit obligations and other long-term liabilities |  | 157.4 |
Liabilities assumed |  | 274.0 |
Net assets acquired |  | $ | 1,178.6 |
Of the $252.0 of acquired intangible assets, $133.8 was assigned to indefinite-lived trade names which are not subject to amortization. The remaining $118.2 of finite-lived acquired intangible assets is comprised of $53.2, $57.0 and $8.0 assigned to proprietary technology, customer relationships and backlog, respectively, all of which are subject to amortization. The finite-lived acquired intangible assets have a total weighted average useful life of approximately 10 years. The proprietary technology, customer relationships and backlog have a weighted average useful life of 9 years, 12 years and 0.25 years, respectively. These finite-lived intangible assets will be amortized based upon the underlying pattern of economic benefit as reflected by the future net cash inflows. The entire amount of goodwill was assigned to the Interconnect Products and Assemblies segment, of which approximately $91.9 is expected to be deductible for tax purposes. Pro Forma Financial Information The following table summarizes the unaudited pro forma combined financial information assuming that the FCI acquisition had occurred on January 1, 2015, and its results had been included in our financial results for the full three and six months ended June 30, 2016 and 2015. The pro forma amounts are based upon available information and reflect a reasonable estimate of the effects of the FCI acquisition for the periods presented on the basis set forth herein. The following unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what the financial position or results of operations would have been had the FCI acquisition in fact occurred on the date assumed, nor is it necessarily indicative of the results that may be expected in future periods.
|  | Three months ended June 30, |  | Six months ended June 30, |
Pro forma: |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Net sales |  | $ | 1,548.2 |  | $ | 1,495.2 |  | $ | 3,009.1 |  | $ | 2,963.7 |
Net income attributable to Amphenol Corporation |  | 206.5 |  | 191.9 |  | 390.7 |  | 380.1 |
Net income per common share - Diluted |  | 0.65 |  | 0.61 |  | 1.24 |  | 1.20 |
The unaudited pro forma Net income attributable to Amphenol Corporation has been calculated using actual historical information and is adjusted for certain pro forma adjustments based on the assumption that the FCI acquisition and the application of fair value adjustments to intangible assets occurred on January 1, 2015. For the three and six months ended June 30, 2016, the pro forma financial information excluded acquisition-related expenses, net of tax, of nil and $27.3, respectively, which are included in the reported results, but excluded from the pro forma amounts above due to their nonrecurring nature. For the three and six months ended June 30, 2015, the pro forma financial information reflects the following adjustments, net of tax: (a) acquisition-related expenses of $5.7 for both periods in 2015, which were included in the reported results, but excluded from the pro forma amounts above due to their nonrecurring nature, (b) amortization expense related to the acquired intangible assets of $2.2 and $4.4, respectively, that was not reflected in the historical results, but has been included in the pro forma amounts, (c) interest income of approximately $2.9 and $5.8, respectively, earned on the cash, cash equivalents and short-term investments used to fund the FCI acquisition that was included in the historical results, but excluded from the pro forma amounts, and (d) other expense (income) of $2.1 and $(1.7), respectively, that was included in the historical results of FCI, but excluded from the pro forma amounts due to its nonrecurring nature. Other Acquisitions The Company has completed its analysis of fair value of the assets acquired and liabilities assumed related to its 2015 acquisitions and the final assessment of values did not differ materially from the preliminary assessment. The 2015 acquisitions were not material to the Company either individually or in the aggregate.

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