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Acquisition | 3 Months Ended
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Sep. 30, 2018
Business Combinations [Abstract] |
Acquisition |
Note 3. | Acquisition
CoAdna, Inc. In September 2018, the Company acquired CoAdna, Holdings, Inc. (TWSE:4984) (“CoAdna”), a publicly traded company on the Taiwan Stock Exchange and headquartered in Sunnyvale, CA, in a cash transaction valued at approximately $85.0 million, net of cash acquired of approximately $42.2 million at closing. CoAdna is a global leader in wavelength selective switches (WSS) based on its patented liquid crystal platform. CoAdna operates within the Company’s II-VI Photonics operating segment. Due to the timing of the acquisition, the Company is still in the process of measuring the fair value of assets acquired and liabilities assumed, including tangible and intangible assets and related deferred income taxes. The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of CoAdna within one year from the date of acquisition ($000):
Assets |  |  |  |  |
Accounts receivable |  | $ |  | 5,684 |
Inventories |  |  |  | 6,189 |
Prepaid and other assets |  |  |  | 2,866 |
Property, plant & equipment |  |  |  | 3,181 |
Intangible assets |  |  |  | 16,072 |
Goodwill |  |  |  | 24,844 |
Total assets acquired |  | $ |  | 58,836 |
Liabilities |  |  |  |  |
Accounts payable |  | $ |  | 4,006 |
Other accrued liabilities |  |  |  | 2,717 |
Accrued income taxes |  |  |  | 5,791 |
Deferred tax liabilities |  |  |  | 3,506 |
Total liabilities assumed |  |  |  | 16,020 |
Net assets acquired |  | $ |  | 42,816 |
The goodwill of $24.8 million is included in the II-VI Photonics segment and is attributed to the expected synergies and the assembled workforce of CoAdna. None of the goodwill is deductible for income tax purposes. The fair value of accounts receivable acquired was $5.7 million and the gross contractual amount being $5.7 million. The Company expensed transaction costs of $1.9 million for the three months ended September 30, 2018. The amount of revenues of CoAdna included in the Company’s Condensed Consolidated Statement of Earnings for the three months ended September 30, 2018 was $3.0 million. The amount of net earnings of CoAdna included in the Company’s Consolidated Statement of Earnings for the three months ended September 30, 2018 was immaterial.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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