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Acquisition
3 Months Ended
Apr. 03, 2015
Acquisition [Abstract]  
Acquisition

 

7. Acquisition

During the quarter ended March 28, 2014, the Company acquired the U.S., Canada and Uruguay operations of Technolab International Corporation ("Technolab").

Management's purchase consideration was $3.0 million in cash upon closing.  In addition, at closing, the sellers were granted $1.0 million in shares which is being recorded as non-cash compensation over the service vesting period.  The sellers also had the ability to earn an additional $8.0 million in contingent consideration in cash and stock subject to an earn-out based on actual results achieved.  The cash was not subject to vesting, however the stock was subject to service vesting.  The entire cash portion of the earn-out was recorded as compensation expense in 2014 of which $0.9 million was recorded in the first quarter of 2014. The stock portion of the earn-out is being recorded as compensation expense over the service vesting period. 

The purchase accounting resulted in a bargain purchase gain of $3.0 million on the acquisition and intangible assets with definite lives of $7.7 million which will be amortized over periods ranging from 2 years to 5 years.