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Note 6 - Acquisition | 12 Months Ended
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Dec. 31, 2012
Notes |
Note 6 - Acquisition | Note 6 – Acquisition On March 18, 2011, UTMD purchased all of the common shares of Femcare Holdings Ltd (Femcare) of the United Kingdom, and its subsidiaries. The acquisition was accretive to financial performance in 2012 and 2011. A one-year measurement period was initially established during which UTMD could make residual adjustments to valuations of assets and liabilities. During 2011, residual adjustments to initial valuations for prepaid expenses, goodwill and accrued expenses were made, but no adjustment was made to the purchase price or the value of identifiable intangibles. The adjustment period has expired. A two-year escrow was set aside from the purchase price to back the warranties and representations of the sellers. No claims against the escrow have been made by UTMD. The March 18, 2011 purchase price was allocated as follows:
Assets Acquired |  |
Accounts receivable | $ | 2,176
Prepaid expenses |  | 773
Inventory |  | 1,319
Property and equipment |  | 606
Identifiable intangibles |  |
Patents |  | 97
Non-compete agreements |  | 162
Trademarks, trade names |  | 11,559
Customer relationships |  | 11,559
Regulatory approvals & product certifications |  | 15,419
Goodwill |  | 8,249
Total assets acquired |  | 51,919
Liabilities Assumed |  |
Accounts payable |  | 1,107
Accrued expenses |  | 644
Deferred tax liability |  | 9,084
Total liabilities assumed |  | 10,835
Net assets acquired | $ | 41,084
Pro forma Information Revenue and net income of the combined entity as though the business combination occurred as of the beginning of the reporting period is:
|  | Year ended December 31, 2012 (as reported) |  |  | Year ended December 31, 2011
Revenue | $ | 41,552 |  | $ | 41,780
Net income |  | 10,169 |  |  | 8,235
Pro forma net income of $8,235 for the year ended December 31, 2011 does not include $341 in UTMD legal costs directly attributable to the acquisition, and $1,765 in Femcare expenses for employee shareholder bonuses, loan redemption premium related to termination of ownership, buy-out of warrants, financial advisory fees and an insurance premium for sellers’ liability which are directly attributable to the acquisition.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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