ACQUISITIONS

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

On February 25, 2015, we acquired a funeral home business in Clarksville, Tennessee for approximately $8.8 million. The purchase price consisted of $4.25 million paid in cash at closing and $4.5 million, the net present value of future deferred payments totaling $5.5 million, which is included in Long-term debt, net of current portion on our Consolidated Balance Sheets. The deferred payments are being paid in 20 equal quarterly installments of $0.3 million which commenced on the close date and each January 1, April 1, July 1 and October 1 for the next five years.

On November 17, 2015, we acquired a funeral home business in Wake Forest, North Carolina for approximately $6.2 million. The purchase price consisted of approximately $5.48 million paid in cash at closing and $0.76 million, the net present value of contingent consideration totaling $1.0 million, which is included in Other long-term liabilities on our Consolidated Balance Sheets.The contingent consideration is being paid in five annual installments and the amount is based on the business achieving certain performance metrics.

The following table summarizes the breakdown of the purchase price for the two businesses described above (in thousands):



	Purchase Price
Cash paid	$	9,725
Deferred payments	4,531
Contingent consideration	762
Purchase Price	$	15,018

The following table summarizes the fair value of the assets acquired for these businesses (in thousands):



Acquisition Date	Type of Business	Market	Assets Acquired (Excluding Goodwill)		Goodwill Recorded		Liabilities and Debt Assumed
February 25, 2015	Funeral home	Clarksville, TN	$	4.9	$	3.9	$	—
November 17, 2015	Funeral home	Wakeforest, NC	$	3.1	$	3.1	$	—



	Purchase Price Allocation
Current assets	$	92
Property, plant & equipment	5,966
Goodwill	6,974
Deferred charges and other non-current assets	1,986
Purchase Price	$	15,018

The deferred charges and other non-current assets relate to the fair value of tradenames and agreements not-to-compete we acquired. As of December 31, 2015, our accounting for the Tennessee acquisition is complete.

During 2014, we acquired 6 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”). Additionally, during 2014 we acquired real estate for approximately $3.0 million for funeral home expansion projects. We acquired substantially all the assets and assumed certain operating liabilities including obligations associated with existing preneed contracts.

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 pro forma impact of the SCI 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.