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Acquisitions | 9 Months Ended
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Oct. 28, 2023
Business Combination and Asset Acquisition [Abstract] |
Acquisitions | Acquisitions On August 18, 2023, the Company acquired Bigham Cable Construction, Inc. ("Bigham"), for $131.2 million ($127.0 million purchase price, plus cash acquired of $8.3 million, less indebtedness of $4.1 million.) Bigham provides construction and maintenance services for telecommunications providers in the southeastern United States. This acquisition expands the Company’s geographic presence within its existing customer base. Purchase Price Allocation The purchase price allocation of Bigham is preliminary and will be completed when valuations for intangible assets and other amounts are finalized within the 12-month measurement period from the date of acquisition. The following table summarizes the aggregate consideration paid (dollars in millions):
Assets |
Cash and equivalents | $ | 8.3 |
Accounts receivable | 47.6 |
Other current assets | 0.1 |
Property and equipment, net | 9.9 |
Goodwill | 37.4 |
Intangible assets, net | 42.2 |
Other assets | 0.8 |
Total assets | 146.3 |
Liabilities |
Accounts payable | 8.2 |
Other accrued liabilities | 2.8 |
Income taxes payable | 4.1 |
Total liabilities | 15.1 |
Net Assets Acquired | $ | 131.2 |
The excess purchase price over the estimated fair value of the net assets acquired was recognized as goodwill and totaled $37.4 million. Goodwill and intangible assets total $79.6 million and are deductible for tax purposes. Accounts receivable and current liabilities were stated at their historical carrying value, which approximates fair value given the short-term nature of these assets and liabilities. The estimate of fair value for fixed assets was based on an assessment of acquired assets’ condition as well as an evaluation of the current market value of such assets. The Company recorded intangible assets based on its preliminary estimate of fair value which consisted of the following (dollars in millions):
| Estimated Useful Life (in years) |  | Intangible Assets Acquired
Customer relationships | 12.0 |  | $ | 26.8 |
Backlog intangibles | 3.0 |  | 11.6 |
Trade names | 10.0 |  | 3.8 |
Total intangible assets acquired |  |  | $ | 42.2 |
The valuation of intangible assets was determined using the income approach methodology. More specifically, the fair values of the customer relationships and the backlog intangibles were estimated using the multi-period excess earnings method, while the trade name was estimated using the relief-from-royalty method. Key assumptions used in estimating future cash flows included projected revenue growth rates, profit margins, discount rates, customer attrition rates and royalty rates among others. The projected future cash flows are discounted to present value using an appropriate discount rate. Results of the business acquired are included in the condensed consolidated financial statements from the date of acquisition. The results from the business acquired during fiscal 2024 were not considered material to the Company’s condensed consolidated financial statements.

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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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