Acquisition (Notes)

6 Months Ended

Jun. 30, 2019

During second quarter 2019, our wholly owned subsidiary, Boise Cascade Building Materials Distribution, L.L.C., completed the acquisition of a wholesale building material distribution location in Birmingham, Alabama (the "Acquisition"). The purchase price of the Acquisition was $15.7 million, subject to post-closing adjustments based upon working capital targets. We funded the Acquisition with cash on hand. The distribution location adds to our existing distribution business and strengthens our nationwide presence. In addition, we believe we will be able to broaden our product and service offerings within this market following the Acquisition.

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 Acquisition are 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 purchase price allocations of the Acquisition are preliminary and subject to post-closing working capital adjustments. The following table summarizes the allocations of the purchase price to the assets acquired and liabilities assumed, based on our estimates of the fair value at the acquisition date:



	Acquisition Date Fair Value
	(thousands)
Accounts receivable	$	5,600
Inventories	3,398
Other assets	12
Property and equipment	3,487
Lease right-of-use assets	359
Intangible assets:
Customer relationships	2,100
Goodwill	1,183
Assets acquired	16,139

Accounts payable	105
Lease liabilities	359
Liabilities assumed	464

Net assets acquired	$	15,675