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Acquisitions | 9 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Acquisitions | Acquisitions Alpha On December 7, 2018, the Company completed the acquisition of all of the issued and outstanding common stock of Alpha Technologies Services, Inc. (“ATS”) and Alpha Technologies Ltd. (“ATL”), resulting in ATS and ATL becoming wholly-owned subsidiaries of the Company (the “ Alpha share purchase”). Additionally, the Company acquired substantially all of the assets of Alpha Technologies Inc. and certain assets of Altair Advanced Industries, Inc. and other affiliates of ATS and ATL (all such sellers, together with ATS and ATL, “Alpha”), in each case in accordance with the terms and conditions of certain restructuring agreements (collectively, the “Alpha asset acquisition” and together with the Alpha share purchase, the “Alpha acquisition”). Based in Bellingham, Washington, Alpha is a global industry leader in comprehensive commercial-grade energy solutions for broadband, telecom, renewable, industrial and traffic customers around the world. The initial purchase consideration for the Alpha acquisition was $750,000, of which $650,000 was paid in cash and the balance was settled by issuing 1,177,630 shares of EnerSys common stock. These shares were issued out of the Company's treasury stock and were valued at $84.92 per share, which was based on the thirty-day volume weighted average stock price of the Company’s common stock at closing, in accordance with the purchase agreement. The 1,177,630 shares had a closing date fair value of $93,268, based upon the December 7, 2018 closing date spot rate of $79.20. The total purchase consideration, consisting of cash paid of $650,000, shares valued at $93,268 and an adjustment for working capital (due post - closing from seller of $766), was $742,502. The Company funded the cash portion of the Alpha acquisition with borrowings from the Amended Credit Facility as defined in Note 12. See Note 12 for additional information. The Alpha acquisition expands the Company's footprint in broadband and telecom markets. The goodwill recognized in connection with this transaction reflects the benefits the Company expects to realize from being able to provide a one-stop, fully integrated power solutions offering to its customers, as well as the benefit of cost synergies from alignment of the Alpha group within its own organizational structure. The results of operations of Alpha have been included in the Company’s Americas segment. During the current quarter, the Company finalized the measurement of all provisional amounts recognized for the Alpha business combination. The final amounts recognized in connection with the Alpha business combination are in the table below. The purchase accounting adjustments resulted in a decrease to goodwill during the current quarter, by $1,390 as a result of finalizing deferred taxes.
Accounts receivable |  | $ | 115,467 |
Inventories |  | 84,297 |
Other current assets |  | 6,822 |
Other intangible assets |  | 332,000 |
Property, plant and equipment |  | 20,987 |
Other assets |  | 9,005 |
Total assets acquired |  | $ | 568,578 |
Accounts payable |  | 35,803 |
Accrued liabilities |  | 41,918 |
Deferred income taxes |  | 54,941 |
Other liabilities |  | 12,642 |
Total liabilities assumed |  | $ | 145,304 |
Net assets acquired |  | $ | 423,274 |
Purchase price: |  |
Cash paid for net assets acquired |  | $ | 650,000 |
Fair value of shares issued for net assets acquired |  | 93,268 |
Working capital adjustment |  | (766 | )
Total purchase consideration |  | 742,502 |
Less: Fair value of acquired identifiable assets and liabilities |  | 423,274 |
Goodwill |  | $ | 319,228 |
The following table summarizes the fair value of Alpha's identifiable intangible assets and their respective lives:
|  | Type |  | Life in Years |  | Fair Value
Trademarks |  | Indefinite-lived |  | Indefinite |  | $ | 56,000 |
Customer relationships |  | Finite-lived |  | 14 |  | 221,000 |
Technology |  | Finite-lived |  | 10 |  | 55,000 |
Total identifiable intangible assets |  |  |  |  |  | $ | 332,000 |
Goodwill deductible for tax purposes is $41,852. The following unaudited summary information is presented on a consolidated pro forma basis as if the Alpha acquisition had occurred on April 1, 2017:
| Quarter ended | Nine Months Ended
|  | December 30, 2018 |  | December 30, 2018
Net sales |  | $ | 800,118 |  |  | $ | 2,453,729 |
Net earnings attributable to EnerSys stockholders |  | 47,343 |  |  | 163,327 |
Net earnings per share attributable to EnerSys stockholders - basic |  | 1.10 |  |  | 3.78 |
Net earnings per share attributable to EnerSys stockholders - assuming dilution |  | 1.08 |  |  | 3.72 |
The pro forma amounts include additional interest expense on the debt issued to finance the purchases, amortization and depreciation expense based on the estimated fair value and useful lives of intangible assets and plant assets, and related tax effects. The pro forma results are not necessarily indicative of the combined results had the Alpha acquisition been completed on April 1, 2017, nor are they indicative of future combined results. The remeasurement of Alpha's deferred taxes due to the Tax Act are being excluded in arriving at these pro forma results. Contra Equity - Indemnification Receivable The Company recorded an unrecognized tax benefit and related indemnification receivable in connection with the Alpha acquisition. The indemnification receivable represents the Seller’s obligation to indemnify the Company for the outcome of potential contingent liabilities, including those associated with uncertain tax positions which have various statutes of limitations that are expected to expire by fiscal 2027. As of December 29, 2019 and March 31, 2019, the balance was $6,607 and $7,840, respectively. The expiration of certain statutes of limitations and the finalization of purchase accounting resulted in a net decrease in the indemnification receivable during the third quarter and nine months of fiscal 2020. NorthStar On September 30, 2019, the Company completed the acquisition of NorthStar, headquartered in Stockholm, Sweden, for $77,777 in cash consideration and the assumption of $107,018 in debt, which was funded using existing cash and credit facilities. NorthStar, through its direct and indirect subsidiaries, manufactures and distributes thin plate pure lead (TPPL) batteries and battery enclosures. The Company acquired tangible and intangible assets, including trademarks, technology, customer relationships and goodwill. Based on preliminary valuations performed, trademarks were valued at $13,937, technology at $13,689, customer relationships at $55,003, and goodwill was recorded at $23,242. The useful lives of technology were estimated at 10 years, customer relationships were estimated at 14 years and trademarks were estimated at 3 years. The Company is in the process of evaluating whether or not it will make a tax election which determines if the Company will have tax deductible goodwill. The results of the NorthStar acquisition have been included in the Company’s results of operations from the date of acquisition. Pro forma earnings and earnings per share computations have not been presented as this acquisition is not considered material. The North American and European results of operations of NorthStar have been included in the Company’s Americas segment and EMEA segment, respectively. Other Intangible Assets Information regarding the Company’s other intangible assets are as follows:
|  | Balance as of
|  | December 29, 2019 |  | March 31, 2019
|  | Gross Amount |  | Accumulated Amortization |  | Net Amount |  | Gross Amount |  | Accumulated Amortization |  | Net Amount
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  | $ | 152,465 |  |  | $ | (953 | ) |  | $ | 151,512 |  |  | $ | 152,484 |  |  | $ | (953 | ) |  | $ | 151,531 |
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 343,110 |  |  | (60,181 | ) |  | 282,929 |  |  | 286,664 |  |  | (42,704 | ) |  | 243,960 |
Non-compete |  | 3,142 |  |  | (2,811 | ) |  | 331 |  |  | 3,025 |  |  | (2,807 | ) |  | 218 |
Technology |  | 91,844 |  |  | (17,940 | ) |  | 73,904 |  |  | 77,779 |  |  | (12,229 | ) |  | 65,550 |
Trademarks |  | 16,151 |  |  | (2,471 | ) |  | 13,680 |  |  | 2,003 |  |  | (1,236 | ) |  | 767 |
Licenses |  | 1,196 |  |  | (1,196 | ) |  | — |  |  | 1,477 |  |  | (1,187 | ) |  | 290 |
Total |  | $ | 607,908 |  |  | $ | (85,552 | ) |  | $ | 522,356 |  |  | $ | 523,432 |  |  | $ | (61,116 | ) |  | $ | 462,316 |
The Company’s amortization expense related to finite-lived intangible assets was $9,843 and $24,468, for the third quarter and nine months of fiscal 2020, respectively, compared to $3,105 and $7,220 for the third quarter and nine months of fiscal 2019, respectively. The expected amortization expense based on the finite-lived intangible assets as of December 29, 2019, is $10,055 for the remainder of fiscal 2020, $39,336 in fiscal 2021, $39,092 in fiscal 2022, $35,434 in fiscal 2023 and $29,668 in fiscal 2024.

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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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