ACQUISITIONS

Our growth strategy includes the execution of our Strategic Acquisition Model. We assess the strategic positioning of acquisition candidates based on the demographics, strength of brand, competitive standing, market size, market share, barriers to entry and volume and price trends. The value of the acquisition candidates is based on local market competitive dynamic which allows for appropriate and differentiating enterprise valuations and flexibility to customize the transactions.

During 2014, we acquired six businesses from SCI which included four businesses in New Orleans, Louisiana, consisting of four funeral homes, one of which was a combination funeral home and cemetery, and two funeral businesses in Alexandria, Virginia for $54.9 million (collectively the “SCI Acquisition”).

The following table summarizes the fair value of the assets acquired and liabilities assumed in our SCI Acquisition and the subsequent adjustments made based on the final valuations and additional information which became available prior to December 31, 2014 (in thousands):



	Initial Purchase Price Allocation			Adjustments			Final Purchase Price Allocation
Current assets	$	1,998		$	128		$	2,126
Property, plant & equipment	16,457			2			16,459
Preneed cemetery trust investments	3,632			—			3,632
Preneed funeral trust investments	45			—			45
Goodwill	33,826			3,827			37,653
Deferred charges and other non-current assets	6,208			(3,918		)	2,290
Cemetery perpetual care investments	7,491			—			7,491
Obligations under capital leases	(1,960		)	—			(1,960		)
Deferred preneed cemetery revenue	(1,679		)	(39		)	(1,718		)
Deferred preneed cemetery receipts held in trust	(3,632		)	—			(3,632		)
Deferred preneed funeral receipts held in trust	(45		)	—			(45		)
Care trusts' corpus	(7,491		)	—			(7,491		)
Cash paid	$	54,850		$	—		$	54,850

The adjustments consisted primarily of a $3.9 million reclass between tradenames and goodwill based on our final valuations. We adjusted current assets by $0.1 million related to minor adjustments to our acquired accounts receivable and inventory. As of December 31, 2014, our accounting for the SCI Acquisition is complete. Additionally, during 2014 we acquired real estate for approximately $3.0 million for funeral home expansion projects.

We completed one acquisition in the fourth quarter of 2013 consisting of two funeral homes, one in Tennessee and one in Georgia. The consideration paid for this business was approximately $13.7 million. Additionally, we purchased land for $6.0 million in 2013 for funeral home expansion projects.

For the acquisitions, we acquired substantially all the assets and assumed certain operating liabilities including obligations associated with existing preneed contracts. The pro forma impact of this acquisition on prior periods is not presented as the impact is not material to our reported results. The results of the acquired businesses are included in our results of operations from the date of acquisition.