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Acquisitions | 6 Months Ended
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Jan. 31, 2023
Business Combinations [Abstract] |
Acquisitions | Acquisitions Airxcel On September 1, 2021, the Company acquired Wichita, Kansas-based AirX Intermediate, Inc. (“Airxcel”). Airxcel manufactures a comprehensive line of high-quality component products which are sold primarily to original equipment RV manufacturers as well as consumers via aftermarket sales through dealers and retailers. Airxcel provides industry-leading products in recreational vehicle heating, cooling, ventilation, cooking, window coverings, sidewalls and roofing materials, among others. The total cash consideration paid was subject to the final determination of the actual acquired net working capital as of the close of business on September 1, 2021, which was finalized in the second quarter of fiscal 2022. The final cash consideration was $745,279, net of cash acquired. In conjunction with the Airxcel acquisition, the Company expanded its existing asset-based credit facility (“ABL”) from $750,000 to $1,000,000, favorably amended certain terms of the agreement and extended the term of the ABL. The Company acquired Airxcel as part of its long-term, strategic growth plan and the acquisition is expected to provide numerous benefits, including strengthening the RV supply chain, diversifying its revenue sources and expanding Airxcel's supply chain business in North America and Europe. Airxcel operates as an independent operation in the same manner as the Company's other subsidiaries. Subsequent to the acquisition date, the Company made immaterial measurement period adjustments to better reflect the facts and circumstances that existed at the acquisition date. The following table summarizes the final fair values of the Airxcel net assets acquired on the acquisition date.
Cash |  | $ | 23,404 |
Inventory |  | 71,150 |
Other assets |  | 62,657 |
Property, plant and equipment |  | 40,518 |
Amortizable intangible assets: |  |
Customer relationships |  | 284,000 |
Trademarks |  | 56,900 |
Design technology assets |  | 60,600 |
Backlog |  | 700 |
Goodwill |  | 372,608 |
Current liabilities |  | (115,535) |
Deferred income tax liabilities |  | (77,086) |
Other liabilities |  | (10,494) |
Non-controlling interest |  | (739) |
Total fair value of net assets acquired |  | 768,683 |
Less cash acquired |  | (23,404) |
Total cash consideration for acquisition, less cash acquired |  | $ | 745,279 |
On the acquisition date, amortizable intangible assets had a weighted-average useful life of 18.3 years. The customer relationships were valued based on the Discounted Cash Flow Method and are being amortized on an accelerated basis over 20 years. The trademarks were valued on the Relief from Royalty Method and are being amortized on a straight-line basis over 20 years. The design technology assets were valued on the Relief from Royalty Method and are being amortized on a straight-line basis over 10 years. Backlog was valued based on the Discounted Cash Flow Method and was amortized on a straight-line basis over 2 months. The majority of the goodwill recognized as a result of this transaction is not deductible for tax purposes. The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2022 acquisition of Airxcel had occurred at the beginning of fiscal 2021. These pro forma results may not be indicative of the actual results that would have occurred under the ownership and management of the Company.
| Three Months Ended January 31,
| 2022
Net sales | $ | 3,875,018 |
Net income attributable to THOR Industries, Inc. | $ | 266,568 |
Basic earnings per common share | $ | 4.80 |
Diluted earnings per common share | $ | 4.79 |
|  | Six Months Ended January 31,
|  | 2022
Net sales |  | $ | 7,880,700 |
Net income attributable to THOR Industries, Inc. |  | $ | 515,623 |
Basic earnings per common share |  | $ | 9.30 |
Diluted earnings per common share |  | $ | 9.25 |

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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 https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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- References No definition available. + Details
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