Acquisitions

During the year ended December 31, 2018, our wholly owned subsidiary, Boise Cascade Building Materials Distribution, L.L.C., completed the acquisition of wholesale building material distribution locations in Nashville, Tennessee, Medford, Oregon, and Cincinnati, Ohio (collectively, the Acquisitions). The purchase price of the Acquisitions was $25.5 million, including a post-closing adjustment of less than $0.1 million based upon a working capital target. The company funded the Acquisitions with cash on hand. These distribution locations add to our existing distribution business and strengthen our nationwide presence. In addition, we believe we will be able to broaden our product and service offerings within these markets following the Acquisitions.

Goodwill represents the excess of the purchase price and related costs over the fair value of the net tangible and intangible assets of businesses acquired. The goodwill and customer relationships recognized from the Acquisitions are not deductible for U.S. income tax purposes. The useful life for customer relationships is 10 years. All of the goodwill and intangible assets were assigned to the Building Materials Distribution segment.

The following table summarizes the final allocations of the purchase price to the assets acquired and liabilities assumed, based on our estimates of the fair value at the acquisition dates:



	Acquisition Date Fair Value
	(thousands)
Accounts receivable	$	7,108
Inventories	10,700
Property and equipment	3,040
Intangible assets:
Customer relationships	2,700
Goodwill	4,976
Assets acquired	28,524

Accounts payable and accrued liabilities	2,045
Deferred income taxes	997
Liabilities assumed	3,042

Net assets acquired	$	25,482