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Business Acquisitions, Investments and Redeemable Noncontrolling Interests | 12 Months Ended
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Nov. 28, 2015
Business Acquisitions, Investments and Redeemable Noncontrolling Interests [Abstract] |
Business Acquisitions, Investments and Redeemable Noncontrolling Interests | BUSINESS ACQUISITIONS, INVESTMENTS AND REDEEMABLE NONCONTROLLING INTERESTS Business Acquisitions Filter Resources On December 17, 2014, the Company acquired 100% of the outstanding shares of Filter Resources, Inc., Filtration, Inc. and Fabrication Specialties, Inc. (collectively, "Filter Resources"). The purchase price for Filter Resources was approximately $21,861, which the Company funded with borrowings under the Company's revolving credit facility. The Company assumed long-term debt of the business of $1,250, which was immediately repaid in connection with the closing. Filter Resources has operating facilities located in the Texas gulf coast and Louisiana region, with approximately 75 total employees. The business is engaged in the manufacture and distribution of filtration products for petrochemical, refinery, pipeline and other industrial applications. The operations of Filter Resources have been merged into the Company's PECOFacet group of companies, headquartered in Mineral Wells, Texas. Its results are included as a part of the Company's Industrial/Environmental Filtration segment from the date of acquisition. A contingent liability for a potential earn-out payment to the former owners, based on adjusted earnings from certain capital projects, was initially recorded at its acquisition-date estimated fair value of $1,154 and is being accreted to its face value of $1,350 ratably through the conclusion of the earn-out period in 2016. The resulting contingent liability of $1,285 is included in Accrued liabilities in the Consolidated Balance Sheet at November 30, 2015, with $131 of accretion recorded as Interest expense in the Consolidated Statement of Earnings for the year ended November 30, 2015. An allocation of the purchase price to the assets acquired and liabilities assumed was made based on available information and incorporating management's best estimates. Assets acquired and liabilities assumed in the transaction were recorded at their estimated acquisition-date fair values, while transaction costs associated with the acquisition were expensed as incurred. The allocation of the purchase price to assets acquired and liabilities assumed was finalized as of November 30, 2015. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition of Filter Resources:
Accounts receivable | $ | 3,180 |
Inventories | 2,042 |
Other current assets | 118 |
Property, plant and equipment | 574 |
Goodwill | 11,938 |
Intangible assets | 10,880 |
| Total assets acquired | 28,732 |
Current liabilities | 2,670 |
Noncurrent liabilities | 4,201 |
| Net assets acquired | $ | 21,861 |
Filter Resources was acquired primarily to expand the Company's access to petrochemical and refinery customers, particularly in the U.S. gulf coast region. Goodwill of $11,938 recorded in connection with the acquisition, which is not deductible for tax purposes, represents the estimated value of such future opportunities. A summary of the intangible assets acquired is shown in the following table:
| Estimated | Weighted average | Amortization
Identifiable intangible assets | Value | Useful life | Method
Customer relationships | $ | 10,800 |  | 15 years | Straight-line
Trademarks | 80 |  | 1 year | Straight-line
| $ | 10,880 |  |  |
Net sales and operating profit attributable to Filter Resources from December 17, 2014 (the date of the closing of the acquisition) through November 30, 2015 were $19,666 and $1,898, respectively. CLARCOR Engine Mobile Solutions On May 1, 2014, the Company acquired Stanadyne Corporation's diesel fuel filtration business (the “Stanadyne Business”) through the acquisition of the stock of Stanadyne Holdings, Inc. The business, which now operates as “CLARCOR Engine Mobile Solutions,” is a leading supplier of original equipment and replacement fuel filtration products, primarily for heavy-duty diesel engines used in off-road, agricultural and construction applications. CLARCOR Engine Mobile Solutions has approximately 200 employees and is headquartered in Windsor, Connecticut, with manufacturing operations in Washington, North Carolina. Its results are included as part of the Company’s Engine/Mobile Filtration segment from the date of acquisition. The purchase price paid was approximately $327,719 in cash (cash to Stanadyne Corporation of $327,719, net of $0 cash acquired), which the Company funded with cash on hand, a $315,000 term loan and $10,000 borrowed under the Company’s revolving credit facility (see Note J). An allocation of the purchase price to the assets acquired and liabilities assumed was made based on available information and incorporating management’s best estimates. Assets acquired and liabilities assumed in the transaction were recorded at their estimated acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred. During the quarter ended May 30, 2015, the Company completed the allocation of the purchase price to the assets acquired and liabilities assumed and, as a result, retrospectively adjusted the valuation of certain assets and liabilities with a corresponding adjustment to goodwill as of the acquisition date. The retrospective adjustments were approximately $7,378 in aggregate and primarily related to updated deferred tax attributes based on the completion of the pre-acquisition tax return filings of the Stanadyne Business. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition of CLARCOR Engine Mobile Solutions:
Accounts receivable | $ | 19,098 |
Inventories | 7,257 |
Deferred income taxes | 4,445 |
Property, plant and equipment | 10,176 |
Goodwill | 187,611 |
Intangible assets | 146,430 |
| Total assets acquired | 375,017 |
Current liabilities | 9,105 |
Other noncurrent liabilities | 2,000 |
Deferred income taxes | 36,193 |
| Net assets acquired | $ | 327,719 |
The Stanadyne Business was acquired to significantly increase CLARCOR’s presence in the design, manufacture and supply of original equipment diesel fuel filtration products and the related original equipment services aftermarket, while also providing enhanced scale and market presence to support growth for CLARCOR’s other Engine/Mobile Filtration businesses — including the heavy-duty fuel, oil, hydraulic and air filtration products manufactured and marketed by Baldwin Filters — through original equipment customers and services channels. Goodwill of $187,611 recorded in connection with the acquisition, which is not deductible for tax purposes, represents the estimated value of such future opportunities. A summary of the intangible assets acquired is shown in the following table:
| Estimated | Weighted average | Amortization
Identifiable intangible assets | Value | Useful life | Method
Customer relationships | $ | 135,250 |  | 13 years | Straight-line
Developed technology | 11,000 |  | 10 years | Straight-line
Trademarks | 180 |  | Indefinite | Not amortized
| $ | 146,430 |  |  |
Net sales and operating profit attributable to CLARCOR Engine Mobile Solutions for the years ended November 30, 2015 and November 30, 2014 (which, in the case of the year ended November 30, 2014, includes the period from May 1, 2014, the date of the closing of the acquisition, to November 30, 2014) were as follows:
| 2015 | 2014
Net sales | $ | 88,255 |  | $ | 65,701 |
Operating profit | 17,659 |  | 11,604 |
CLARCOR Industrial Air On December 16, 2013, the Company acquired the Air Filtration business of General Electric Company’s (“GE”) Power and Water division through the acquisition of certain assets and the assumption of certain liabilities, as well as the acquisition of the stock of a subsidiary of GE. The business, which now operates as “CLARCOR Industrial Air”, was acquired to significantly increase the Company’s presence in air inlet filtration products for natural gas turbines and to expand the Company’s product offerings, technologies and customer base in industrial air filtration. CLARCOR Industrial Air is headquartered in Overland Park, Kansas, with manufacturing operations in Missouri and the United Kingdom. Its results are included as part of the Company’s Industrial/Environmental Filtration segment from the date of acquisition. The purchase price paid was approximately $260,312 in cash (cash to GE of $263,758, net of $3,446 cash acquired), which the Company funded with cash on hand, a $100,000 term loan and $50,000 of cash borrowed under the Company’s revolving credit facility (see Note J). CLARCOR Industrial Air operates primarily in three markets — gas turbine filtration, industrial air filtration, and specialty membranes. In gas turbine filtration, CLARCOR Industrial Air designs and manufactures high performance inlet filter houses and replacement filter elements for gas turbines used in a wide range of applications, including on-shore power generation plants, on-shore and off-shore oil and gas platforms and pipelines, distributed power generation and commercial and military marine applications. In industrial air filtration, CLARCOR Industrial Air designs and manufactures high performance filter elements for use in a variety of industries, sold to a wide range of customers under various trade names. The specialty membrane business designs and manufactures high performance membranes for apparel and microfiltration. An allocation of the purchase price to the assets acquired and liabilities assumed was made based on available information and incorporating management’s best estimates. Assets acquired and liabilities assumed in the transaction were recorded at their estimated acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred. The allocation of the purchase price to the assets acquired and liabilities assumed was finalized as of February 28, 2015. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition of CLARCOR Industrial Air:
Accounts receivable | $ | 34,453 |
Inventories | 41,884 |
Other current assets | 837 |
Property, plant and equipment | 22,903 |
Goodwill | 74,324 |
Intangible assets | 133,020 |
| Total assets acquired | 307,421 |
Total liabilities | 47,109 |
| Net assets acquired | $ | 260,312 |
The Company believes the CLARCOR Industrial Air business provides it with a strong platform in the gas turbine filtration market from which to grow, both with respect to first-fit applications as well as the aftermarket, and a broad line of products, in-depth customer knowledge and service capabilities with which to grow in various industrial air filtration markets. Goodwill of $74,324 recorded in connection with the CLARCOR Industrial Air acquisition, which is deductible for tax purposes, represents the estimated value of such future opportunities. A summary of the intangible assets acquired, weighted-average useful lives and amortization methods is shown in the following table:
| Estimated | Weighted average | Amortization
Identifiable intangible assets | Value | Useful life | Method
Trade names | $ | 35,100 |  | Indefinite | Not amortized
Customer relationships | 77,300 |  | 13 years | Straight-line
Developed technology | 19,900 |  | 13 years | Straight-line
GE Transitional Trademark License | 50 |  | Less than 1 Year | Accelerated
Backlog | 670 |  | Less than 1 Year | Accelerated
| $ | 133,020 |  |  |
Net sales and operating profit attributable to CLARCOR Industrial Air for the years ended November 30, 2015 and November 30, 2014 (which, in the case of the year ended November 30, 2014, includes the period from December 16, 2013, the date of the closing of the acquisition, to November 30, 2014) were as follows:
| 2015 | 2014
Net sales | $ | 208,036 |  | $ | 226,709 |
Operating profit | 18,995 |  | 13,984 |
Unaudited Pro Forma Results for CLARCOR giving effect to the acquisitions of CLARCOR Engine Mobile Solutions and CLARCOR Industrial Air The following unaudited pro forma information for the twelve month periods ended November 30, 2014 and November 30, 2013 presents the combined results of operations of CLARCOR, CLARCOR Industrial Air and CLARCOR Engine Mobile Solutions as if both acquisitions had been completed on the first day of fiscal 2013. The pro forma information is presented for informational purposes only and does not purport to be indicative of the results of operations or future results that would have been achieved if the acquisitions and related borrowings had taken place at the beginning of fiscal 2013. The pro forma information combines the historical results of CLARCOR with the historical results of CLARCOR Industrial Air and CLARCOR Engine Mobile Solutions for the periods presented. Prior to acquisition by CLARCOR, the business now operated as CLARCOR Industrial Air was a wholly-owned business of GE’s Power and Water division, and the business now operated as CLARCOR Engine Mobile Solutions was a wholly-owned business of Stanadyne Corporation. As such, neither business was a stand-alone entity for financial reporting purposes. Accordingly, the historical operating results of CLARCOR Industrial Air and CLARCOR Engine Mobile Solutions may not be indicative of the results that might have been achieved, historically or in the future, if CLARCOR Industrial Air and CLARCOR Engine Mobile Solutions had been stand-alone entities. The unaudited pro forma results for the twelve months ended November 30, 2014 and November 30, 2013 include adjustments to amortization charges for acquired intangible assets, depreciation expense, interest expense and transaction costs incurred, as well as adjustments to cost of sales related to the step-up of inventory to estimated acquisition-date fair values, other income and related tax effects. The unaudited pro forma results do not give effect to any synergies, operating efficiencies or cost savings that may result from these acquisitions. These pro forma amounts are based on an allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed. The pro forma amounts include the Company’s determination of purchase accounting adjustments based on available information and certain assumptions that the Company believes are reasonable.
| Twelve Months Ended November 30, 2014 |  | Twelve Months Ended November 30, 2013
| As reported | CLARCOR Engine Mobile Solutions |  | CLARCOR Industrial Air |  | Pro forma |  | As reported | CLARCOR Engine Mobile Solutions |  | CLARCOR Industrial Air |  | Pro forma
Net sales | $ | 1,512,854 |  | $ | 46,837 |  |  | $ | 15,422 |  |  | $ | 1,575,113 |  |  | $ | 1,130,770 |  | $ | 105,744 |  |  | $ | 222,546 |  |  | $ | 1,459,060 |
Operating profit | 210,428 |  | 17,677 |  | (a) | 8,814 |  | (b) | 236,919 |  |  | 174,616 |  | 24,830 |  | (c) | 3,047 |  | (d) | 202,493 |
Net earnings attributable to CLARCOR | 144,084 |  | 10,485 |  |  | 6,551 |  |  | 161,120 |  |  | 118,076 |  | 13,789 |  |  | 1,703 |  |  | 133,568 |
Diluted earnings per share | $ | 2.83 |  | $ | 0.21 |  |  | $ | 0.13 |  |  | $ | 3.17 |  |  | $ | 2.34 |  | $ | 0.27 |  |  | $ | 0.03 |  |  | $ | 2.64 |
(a) | Includes adjustments to remove transaction costs of $3,035 and cost of sales related to the step-up of inventory to its estimated acquisition-date fair value of $1,368, which have been pushed back to the twelve months ended November 30, 2013 for pro forma presentation. Also includes adjustments to intangible asset amortization, depreciation expense and interest expense.
(b) | Includes adjustments to remove transaction costs of $2,089 and cost of sales related to the step-up of inventory to its estimated acquisition-date fair value of $4,342, which have been pushed back to the twelve months ended November 30, 2013 for pro forma presentation. Also includes adjustments to intangible asset amortization, depreciation expense and interest expense.
(c) | Includes adjustments to push back transaction costs of $3,035 and cost of sales related to the step-up of inventory to its estimated acquisition-date fair value of $1,368. Also includes adjustments to intangible asset amortization, depreciation expense and interest expense.
(d) | Includes adjustments to push back transaction costs of $2,089 and cost of sales related to the step-up of inventory to its estimated acquisition-date fair value of $4,342. Also includes adjustments to intangible asset amortization, depreciation expense and interest expense.
Bekaert Business On December 3, 2013, the Company acquired from NV Bekaert SA 100% of the outstanding shares of Bekaert Advanced Filtration SA (Belgium), 100% of the outstanding shares of PT Bekaert Advanced Filtration (Indonesia) and certain other assets in India, China and the U.S. (collectively, the “Bekaert Business”). The purchase price was approximately $7,297 in cash (net of cash acquired), which the Company paid with cash on hand. The Bekaert Business has approximately 170 employees, and manufacturing facilities located in Belgium and Indonesia, as well as sales personnel in North and South America. The business is engaged in the manufacture and supply of engineered metal filters and systems used primarily in the polymer and plastics industry. The Bekaert Business was acquired to expand the Company’s technical capabilities, improve the Company's product offerings and help the Company continue to grow in Europe and in Asia. The business has been merged into the Company’s Purolator Advanced Filtration Group, headquartered in Greensboro, North Carolina. Its results are included as part of the Company’s Industrial/Environmental Filtration segment from the date of acquisition. An allocation of the purchase price to the assets acquired and liabilities assumed was made based on available information and incorporating management’s best estimates. Assets acquired and liabilities assumed in the transaction were recorded at their estimated acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred. The allocation of the purchase price to the assets acquired and liabilities assumed was finalized as of February 28, 2015. Acquired finite-lived intangible assets of $2,057 were recorded in connection with the purchase. The $2,815 excess of the fair value of the identifiable assets acquired and liabilities assumed over the purchase price was recorded as a bargain purchase gain and is included in “Other, net” income in the Consolidated Statements of Earnings. Prior to recording this gain, the Company reassessed its identification of assets acquired and liabilities assumed, including the use of independent valuation experts to assist the Company in appraising the personal property, real property and intangible assets acquired. The Company believes there were several factors that contributed to this transaction resulting in a bargain purchase gain, including the business falling outside of NV Bekaert SA’s core activities and historical losses incurred by the business. Net sales and operating loss attributable to the Bekaert Business for the years ended November 30, 2015 and November 30, 2014 (which, in the case of the year ended November 30, 2014, includes the period from December 3, 2013, the date of the closing of the acquisition, to November 30, 2014) were as follows:
| 2015 | 2014
Net sales | $ | 11,824 |  | $ | 13,926 |
Operating loss | (387 | ) | (21 | )
Investments The Company owns 30.0% of BioProcess H2O LLC (“BPH”), a Rhode Island-based manufacturer of industrial waste water and water reuse filtration systems, with an original cost of $4,000. The Company applies the equity method of accounting for this investment, under which the carrying value is adjusted each period to recognize the Company's share of the earnings or losses of BPH. Such adjustments are determined based on the Company's percentage of ownership, as well as the receipt of any dividends, and are included in Other, net income in the Consolidated Statements of Earnings. During the years ended November 30, 2015, 2014, and 2013 the Company did not make any additional investments in BPH or receive any dividends from BPH. Based on recent operating losses at BPH and other factors, including negative developments with respect to BioProcess Algae LLC as described below, during the three month period ended August 29, 2015 the Company determined that an other than temporary decrease in the value of its investment in BPH had occurred, and recorded an impairment charge of $2,720, included in Other, net in the Consolidated Statement of Earnings, reflecting the expected lack of recoverability of this investment. The investment, with a carrying amount of $0 and $2,918, at November 30, 2015 and 2014, respectively, is included in Other noncurrent assets in the Consolidated Balance Sheets. The Company also owns 14.6% of BioProcess Algae LLC (“Algae”), a Delaware-based company developing technology to grow and harvest algae which can be used to consume carbon dioxide and also be used as a renewable energy source. The Company applies the cost method of accounting for this investment, under which the Company recognizes dividends as income when received and reviews the cost basis of the investment for impairment if factors indicate that a decrease in value of the investment may have occurred. During the years ended November 30, 2015, 2014 and 2013, the Company invested an additional $525, $1,073 and $392, respectively, in Algae. The Company did not receive any dividends from Algae during the years ended November 30, 2015, 2014, and 2013. Based on business developments at Algae during the three months ended August 29, 2015, including a significant adverse change in the anticipated effectiveness and commercial scalability of Algae's technology platform, the Company evaluated the carrying value of the investment for impairment. The Company determined that an other than temporary impairment had occurred, and recorded an impairment charge of $3,802, included in Other, net in the Consolidated Statement of Earnings, reflecting the expected lack of recoverability of this investment. The Company also wrote-off $207 of amounts due from Algae. The investment, with a carrying amount of $0 and $3,277, at November 30, 2015 and November 30, 2014, respectively, is included in Other noncurrent assets in the Consolidated Balance Sheets. Redeemable Noncontrolling Interests In March 2007, the Company acquired an 80% ownership share in Sinfa SA ("SINFA"), a manufacturer of automotive and heavy-duty engine filters based in Casablanca, Morocco, which is included in the Engine/Mobile Filtration segment. As part of the purchase agreement, the Company and the noncontrolling owners each had the option to require the purchase of the remaining 20% ownership share by the Company after December 31, 2012. During the three month period ended May 30, 2015, the Company exercised its option and acquired the remaining 20% ownership share for approximately $1,239, following which SINFA became a wholly owned subsidiary. The difference between the amount paid and the carrying value of the noncontrolling interest was recorded to Retained earnings in the Consolidated Balance Sheet.

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- Definition Business Acquisitions Investments And Redeemable Noncontrolling Interests [Abstract] + References No definition available. + Details
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- Definition Includes the following three disclosures: 1) Description of a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations, including leverage buyout transactions (as applicable), 2) Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is and 3) Text disclosure on redeemable non-controlling interest, which is part of temporary equity. + References No definition available. + Details
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