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Acquisitions and Divestitures (Notes) | 3 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Business Combination Disclosure [Text Block] | Business Combinations Acquisition of Krausz On December 3, 2018, we completed our acquisition of Krausz, a manufacturer of pipe couplings, grips and clamps with operations in the United States and Israel, for $140.7 million, net of cash acquired, including the assumption and simultaneous repayment of certain debt of $13.2 million. The acquisition of Krausz was financed with cash on hand. We have recognized the assets acquired and liabilities assumed at their estimated acquisition date fair values, with the excess of the purchase price over the estimated fair values of the identifiable net assets acquired recorded as goodwill. The accounting for the business combination is considered final. During the quarter, we reduced property, plant and equipment by $0.3 million, which resulted in an increase in goodwill of $0.3 million. The following is a summary of the fair values of the net assets acquired (in millions):
Assets, net of cash: |
Receivables | $ | 6.9 |
Inventories | 17.0 |
Other current assets | 0.2 |
Property, plant and equipment | 8.1 |
Identified intangible assets: |
Patents | 32.1 |
Customer relationships | 8.7 |
Tradenames | 4.6 |
Favorable leasehold interests | 2.3 |
Goodwill | 74.7 |
Liabilities: |
Accounts payable | (5.5) |
Other current liabilities | (2.9) |
Deferred income taxes | (5.5) |
Fair value of assets acquired, net of liabilities assumed | 140.7 |
Repayment of Krausz debt | (13.2) |
Consideration paid to seller | $ | 127.5 |
The goodwill above is attributable to the strategic opportunities and synergies that we expect to arise from the acquisition of Krausz and the value of its workforce. The goodwill is nondeductible for income tax purposes. The intangible assets of $47.7 million consist of indefinite-lived tradenames and patents, customer relationships and favorable leasehold interests with an estimated weighted average useful life of approximately 12 years. We determined the values of the intangible assets using discounted cash flow methods.

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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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