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Acquisitions | 9 Months Ended
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Sep. 30, 2018
Business Combinations [Abstract] |
Acquisitions | Note 8 - Acquisitions ARI Acquisition On October 10, 2017, the Company completed the Acquisition of ARI. At closing, the Company paid net cash consideration of approximately $209 million, which included preliminary post-closing adjustments relating to: (i) changes in the net working capital of ARI as of the closing relative to a net working capital target, (ii) the actual amount of specified types of R-22 refrigerant inventory on hand at closing relative to a target amount thereof, and (iii) other consideration pursuant to the Stock Purchase Agreement. The fair values of the assets that we acquired and the liabilities that we assumed are now final. Any future changes to the acquired assets and liabilities will be recorded in the Company’s Consolidated Statement of Operations. The Company is currently engaged with Airgas with respect to finalizing the post-closing adjustment, as defined in the Stock Purchase Agreement. The following table summarizes the Company’s preliminary estimates of the fair values of the assets acquired and the liabilities assumed on the date the Company completed the Acquisition of ARI, as previously reported as of year-end 2017 and September 30, 2018:
|  | Amortization life (in months) |  |  | As previously reported |  |  | Adjustments ‎ (1) |  |  | As Adjusted (in thousands) |
Accounts receivable |  |  |  |  |  | $ | 14,668 |  |  | $ |  |  |  | $ | 14,668 |
Other assets |  |  |  |  |  |  | 734 |  |  |  |  |  |  |  | 734 |
Inventories |  |  |  |  |  |  | 103,876 |  |  |  | 1,661 |  |  |  | 105,537 |
Property and equipment |  |  |  |  |  |  | 24,179 |  |  |  |  |  |  |  | 24,179 |
Customer relationships |  |  | 144 |  |  |  | 29,660 |  |  |  |  |  |  |  | 29,660 |
Above-market leases |  |  | 153 |  |  |  | 567 |  |  |  |  |  |  |  | 567 |
Goodwill |  |  |  |  |  |  | 48,609 |  |  |  | (1,661 | ) |  |  | 46,948 |
Total assets acquired |  |  |  |  |  | $ | 222,293 |  |  | $ | - |  |  | $ | 222,293 |
Accounts payable and accrued expenses |  |  |  |  |  | $ | 3,210 |  |  | $ |  |  |  | $ | 3,210 |
Other current liabilities |  |  |  |  |  |  | 10,114 |  |  |  |  |  |  |  | 10,114 |
Total liabilities assumed |  |  |  |  |  | $ | 13,324 |  |  | $ | - |  |  | $ | 13,324 |
Total purchase price |  |  |  |  |  | $ | 208,969 |  |  | $ | - |  |  | $ | 208,969 |
(1) The Company obtained further information regarding the fair value of acquired inventory based on information that existed as of the acquisition date. The fair values of the acquired intangibles were determined using discounted cash flow models that include a discount factor based on an estimated risk-adjusted weighted average cost of capital. The customer relationships were valued using the multi-period excess-earnings method, a form of the income approach. The above-market leases were valued using the differential cash flow method of the income approach. The acquisition resulted in the recognition of $46.9 million of goodwill, which should be deductible for tax purposes. Goodwill largely consists of expected growth in revenue from new customer acquisitions over time. The cash consideration paid by the Company at closing was financed with available cash balances, plus $80 million of borrowings under the PNC Facility and a new term loan of $105 million from the Term Loan Facility.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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