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Acquisitions | 9 Months Ended
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Sep. 30, 2017
Business Combinations [Abstract] |
Acquisitions | Acquisitions Transamerican Auto Parts On October 11, 2016, the Company entered into a definitive agreement with TAP Automotive Holdings, LLC (“Transamerican Auto Parts” or “TAP”) to acquire the outstanding equity interests in Transamerican Auto Parts, a privately held, vertically integrated manufacturer, distributor, retailer and installer of off-road Jeep® and truck accessories, for an aggregate consideration of $668,348,000, net of cash acquired. TAP’s products and services for customers in the off-road four-wheel-drive market correspond closely to our ORV business. The transaction closed on November 10, 2016. The Company funded the purchase price with borrowings under its existing credit facilities. As of September 30, 2017, the purchase price allocation for the acquisition is preliminary. The following table summarizes the preliminary fair values assigned to the TAP net assets acquired and the determination of final net assets (in thousands):
Cash and cash equivalents | $ | 3,017 |
Trade receivables | 18,214 |
Inventory | 145,612 |
Property, plant and equipment | 32,814 |
Customer relationships | 87,000 |
Trademarks / trade names | 175,500 |
Goodwill | 264,324 |
Other assets | 18,578 |
Deferred revenue | (7,944 | )
Other liabilities assumed | (65,750 | )
Total fair value of net assets acquired | 671,365 |
Less cash acquired | (3,017 | )
Total consideration for acquisition, less cash acquired | $ | 668,348 |
On the acquisition date, amortizable intangible assets had a weighted-average useful life of 8.9 years. The customer relationships were valued based on the Discounted Cash Flow Method and are amortized over 5-10 years, depending on the customer class. The trademarks and trade names were valued on the Relief from Royalty Method and have indefinite remaining useful lives. Goodwill is deductible for tax purposes. The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2016 acquisition of TAP had occurred at the beginning of fiscal 2015 (in thousands, except per share data). These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company.
| Three months ended September 30, 2016 |  | Nine months ended September 30, 2016
Net sales | $ | 1,367,944 |  |  | $ | 3,867,221 |
Net income | $ | 36,603 |  |  | $ | 165,670 |
Basic earnings per share | $ | 0.57 |  |  | $ | 2.56 |
Diluted earnings per share | $ | 0.56 |  |  | $ | 2.53 |

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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