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Acquisitions | 3 Months Ended
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Mar. 31, 2025
Business Combinations [Abstract] |
Acquisitions | NOTE 5: ACQUISITIONS Aero Turbine, Inc. On August 23, 2024, the Company acquired 100% of the shares of Aero Turbine, Inc. (“Aero Turbine”) for a purchase price of approximately $132.0 million, subject to post-closing adjustments, comprised of an initial cash purchase price of $116.8 million and $15.2 million representing the estimated fair value of additional consideration contingently payable based upon the achievement of gross profit in excess of certain gross profit targets for the period from January 1, 2024, to December 31, 2026. The maximum contingent consideration payable from the Company to the seller is $21.0 million. The current portion of the contingent consideration liability is recorded in Accrued and other current liabilities and the non-current portion is recorded in Other non-current liabilities. Aero Turbine is a provider of engine component repair, overhaul services and other engineering services for U.S. and foreign military customers. The results of operations of Aero Turbine have been included in the consolidated financial statements of the Company from August 23, 2024, the closing date of the acquisition. Aero Turbine is reported within the Component Repair Services segment. The Company has provisionally allocated the purchase price based on the fair values of the assets acquired and liabilities assumed at the Aero Turbine acquisition date as follows:
|  | August 23, 2024 |
|  | (in thousands) |
Cash |  | $ | 2,765 |
Accounts receivable |  |  | 4,066 |
Contract assets |  |  | 12,419 |
Inventories |  |  | 10,213 |
Prepaid expenses and other current assets |  |  | 2,518 |
Property, plant and equipment |  |  | 5,868 |
Operating lease right of use asset |  |  | 999 |
Customer relationships |  |  | 75,000 |
Goodwill |  |  | 52,672 |
Total assets acquired |  |  | 166,520 |
Accounts payable |  |  | 5,353 |
Accrued and other current liabilities |  |  | 7,131 |
Contract liabilities |  |  | 1,205 |
Current portion operating lease liabilities |  |  | 111 |
Income taxes payable |  |  | 4,901 |
Long-term portion operating lease liabilities |  |  | 899 |
Deferred income tax liabilities |  |  | 14,932 |
Total liabilities assumed |  |  | 34,532 |
Net assets acquired |  |  | 131,988 |
Cash acquired |  |  | 2,765 |
Purchase price, net of cash acquired |  | $ | 129,223 |
The fair value s presented were estimated by management. During the three months ended March 31, 2025, the Company recorded measurement period adjustments related to estimate refinement of a $0.8 million decrease in accrued and other current liabilities, resulting in a corresponding decrease in goodwill. The fair value of the assets acquired includes accounts receivable of $4.1 million, of which all is expected to be collectible. The excess of the cost of acquisition over the fair value of the net tangible assets acquired of $127.7 million has been allocated as $75.0 million of customer relationships and $52.7 million of goodwill. The goodwill recognized is attributable to Aero Turbine’s workforce, market position, quality, customized repairs and reliable turnaround times. Goodwill will not be amortized but will be reviewed annually for impairment. None of the goodwill is expected to be deductible for income tax purposes. Customer relationships are expected to be amortized over 15 years. The consideration paid and final valuation and related allocation of the purchase price is subject to change as additional information is received and will be completed no later than 12 months after the closing date. Acquisition related costs of $1.4 million were incurred for the year ended December 31, 2024. These costs are reported in the Consolidated Statements of Operations as “Acquisition costs”. Such expenses include professional fees and other third-party costs.

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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://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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