Acquisition Activity

Pacific Instruments, Inc.

On April 6, 2016, the Company completed the acquisition of Pacific Instruments, Inc. ("Pacific") for an aggregate purchase price of $10.6 million. Pacific is a designer and manufacturer of high-performance data acquisition systems and has extensive experience integrating these systems. Pacific sells primarily to the aerospace, commercial aviation and defense markets in the United States. Pacific provides installation, facility integration, training, and on-going technical support for their manufactured products. Pacific products expanded the offerings of our Foil Technology Products reporting segment, which already offered data acquisition systems, primarily instruments in the field of strain measurement. The following table summarizes the fair values assigned to the assets and liabilities of Pacific as of April 6, 2016 (in thousands):



Working capital ^(a)	$	921
Property and equipment	26
Long-term deferred income tax liability	(1,903		)
Intangible assets:
Patents and acquired technology	1,300
Non-competition agreements	40
Customer relationships	3,500
Trade names	700
Total intangible assets	5,540
Fair value of acquired identifiable assets and liabilities	4,584
Purchase price	$	10,626
Goodwill	$	6,042


(a)	Working capital accounts include accounts receivable, inventory, prepaid expenses and other current assets, trade accounts payable, accrued payroll, income taxes payable, and other accrued expenses.

The weighted average useful lives for the patents and acquired technology, non-competition agreements, and customer relationships are 20 years, 6.5 years, and 15 years, respectively. None of the goodwill associated with this transaction is deductible for income tax purposes.

The Company recorded acquisition costs associated with this transaction in its consolidated statements of operation as follows (in thousands):



	Year ended December 31, 2016
Accounting and legal fees	$	369
Appraisal fees	41
Other	21
	$	431

Stress-Tek, Inc.

On December 30, 2015, the Company completed the acquisition of Stress-Tek, Inc. ("Stress-Tek"), based in Kent, Washington, for an aggregate purchase price of $20.1 million. Stress-Tek is a designer and manufacturer of state-of-the-art, rugged and reliable strain gage-based load cells and force measurement systems primarily servicing the North American market. Their sensors and display systems are used in a wide range of industries, predominantly in transportation and trucking, for timber, refuse, aggregate, mining, and general trucking applications. Stress-Tek adds new products to the Company's Weighing and Control Systems reporting segment which enhances and broadens the Company's on-board weighing offerings with products that are recognized for high quality in their markets.

The following table summarizes the fair values assigned to the assets and liabilities as of the December 30, 2015 acquisition date (in thousands):



Working capital ^(a)	$	2,564
Property and equipment	6,338
Intangible assets:
Patents and acquired technology	1,600
Non-competition agreements	60
Customer relationships	2,500
Trade names	700
Total intangible assets	4,860
Fair value of acquired identifiable assets	13,762
Purchase price	$	20,073
Goodwill	$	6,311


(a)	Working capital accounts include cash, accounts receivable, inventory, prepaid expenses and other current assets, trade accounts payable, accrued payroll, and other accrued expenses.

The weighted average useful lives for the patents and acquired technology, non-competition agreements, and customer relationships are 20, 5, and 15 years, respectively. Most of the goodwill associated with this transaction will be deductible for income tax purposes.

The Company recorded acquisition costs associated with this transaction in its consolidated statements of operations as follows (in thousands):



	Year ended December 31,
	2016
Accounting and legal fees	$	51
Appraisal fees	12
Other	—
	$	63