XML 56 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Business Combinations (Notes)
3 Months Ended
Sep. 30, 2014
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
Business Combinations
Acquisition of FotoKnudsen
On July 1, 2014, we acquired 100% of the outstanding shares of FotoKnudsen AS, a Norwegian photo product company focused primarily on the Norwegian markets. At closing, we paid €14,045 ($19,224 based on the exchange rate as of the date of acquisition) in cash, subject to certain post-acquisition escrow adjustments. We utilized proceeds from our credit facility to finance the acquisition. In connection with the acquisition, we incurred transaction costs related to investment banking, legal, financial, and other professional services of $394 which were recorded during the year ended June 30, 2014 in general and administrative expenses. No additional transaction costs were recorded during the three months ended September 30, 2014.
The excess of the purchase price paid over the fair value of FotoKnudsen’s net assets was recorded as goodwill, which is primarily attributable to cost synergies expected from manufacturing efficiency opportunities and the value of the workforce of FotoKnudsen. Goodwill is not expected to be deductible for tax purposes, and has been attributed to our Albumprinter reporting unit that is part of the All Other Business Units reportable segment. The revenue and earnings included in our consolidated financial statements since the acquisition date are not material. Pro forma results of the operations have not been presented because the effects are not material to the consolidated financial statements. 
The purchase price allocation is considered provisional as the valuation and tax accounting are preliminary. The preliminary fair value of the assets acquired and liabilities assumed was:
 
 
 
Weighted Average
 
Amount
 
Useful Life in Years
Tangible assets acquired and liabilities assumed, net:
$
(1,496
)
 
n/a
Identifiable intangible assets:
 
 
 
Customer relationships
5,615

 
6
Trade name
2,869

 
6
Developed technology
734

 
2
Goodwill
11,502

 
n/a
Total purchase price
$
19,224