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Acquisitions | 12 Months Ended
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Dec. 31, 2020
Business Combinations [Abstract] |
Acquisitions | Acquisitions Acquisition of the Assets and Operations of American Stainless Tubing, Inc. On January 1, 2019, ASTI completed the American Stainless Tubing, Inc. ("American Stainless") acquisition. The purchase price for the all-cash acquisition was $21.9 million, subject to a post-closing working capital adjustment. The Company funded the acquisition with a new five-year $20 million term note and a draw against asset-based line of credit (see Note 6). The transaction is accounted for using the acquisition method of accounting for business combinations. Under this method, the total consideration transferred to consummate the acquisition is allocated to the identifiable tangible and intangible assets acquired and liabilities assumed based on their respective fair values as of the closing date of the acquisition. The acquisition method of accounting requires extensive use of estimates and judgments to allocate the consideration transferred to the identifiable tangible and intangible assets acquired and liabilities assumed. During the third quarter of 2019, the Company finalized the purchase price allocation for the American Stainless acquisition. The excess of the consideration transferred over the fair value of the net tangible and identifiable intangible assets is reflected as goodwill. Goodwill consists of manufacturing cost synergies expected from combining American Stainless' production capabilities with the Metals Segment current operations. All of the goodwill recognized was assigned to the Company's Metals Segment. During the second quarter of 2019, management identified circumstances that existed on the date of acquisition and as a result, revised the purchase price allocation of certain acquired assets and liabilities as allowable during the measurement period. The following table shows the initial estimate of value and revisions made during 2019:
(in thousands) | Initial estimate |  | Revisions |  | Final
Inventories | $ | 5,564 |  |  | $ | — |  |  | $ | 5,564 |
Accounts receivable | 3,534 |  |  | — |  |  | 3,534 |
Other current assets - production and maintenance supplies | 605 |  |  | — |  |  | 605 |
Property, plant and equipment | 2,793 |  |  | — |  |  | 2,793 |
Customer list intangible | 10,000 |  |  | (496) |  |  | 9,504 |
Goodwill | 7,044 |  |  | 714 |  |  | 7,758 |
Contingent consideration (earn-out liability) | (6,148) |  |  | (218) |  |  | (6,366) |
Accounts payable | (1,400) |  |  | — |  |  | (1,400) |
Other liabilities | (97) |  |  | — |  |  | (97) |
| $ | 21,895 |  |  | $ | — |  |  | $ | 21,895 |
For the year ended December 31, 2019, cost of sales included $1.1 million representing the fair value above predecessor cost associated with acquired inventory that was sold during the year ended December 31, 2019.

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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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