Business Acquisition (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of the net assets acquired and liabilities assumed and measurement period adjustments since December 31, 2015, the acquisition date (in thousands):



	Preliminary valuation at December 31, 2015		Measurement period adjustments			Adjusted preliminary valuation at June 30, 2016
Cash	$	7,759	$	—		$	7,759
Accounts receivable	12,507		—			12,507
Inventories	12,168		1,515			13,683
Prepaid expenses	1,028		(144		)	884
Deferred tax assets	1,287		(571		)	716
Property, plant and equipment	3,240		—			3,240
Intangible assets	63,100		—			63,100
Total assets acquired	101,089		800			101,889

Accounts payable	6,215		—			6,215
Accrued liabilities	1,614		—			1,614
Warranty obligations	5,550		—			5,550
Deferred tax liabilities, non-current	20,914		—			20,914
Other non-current liabilities	519		—			519
Total liabilities assumed	34,812		—			34,812

Net identifiable assets acquired	66,277		800			67,077
Goodwill	58,357		(138		)	58,219
Net assets acquired	$	124,634	$	662		$	125,296

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The following table sets forth the components of identifiable intangible assets and their estimated fair values and useful lives as of December 31, 2015, the acquisition date (dollars in thousands):



	Estimated fair value		Estimated useful life (years)	Weighted-average amortization period (years)
Trade name - Octane Fitness	$	23,000	Indefinite	N/A

Trade name - others	2,600		10 - 15	12.5
Patents	12,800		11 - 24	18
Customer relationships	24,700		10 - 15	13
Definite-lived intangible assets	40,100
Total intangible assets	$	63,100

Business Acquisition, Pro Forma Information

The following table reflects the unaudited pro forma consolidated results of operations for the periods presented, as though the acquisition of Octane had occurred on January 1, 2015 (in thousands, except per share amounts):



		(unaudited)
		Three Months Ended June 30,				Six Months Ended June 30,
		2016		2015		2016		2015
Net sales		$	78,529	$	73,361	$	199,457	$	184,491
Net income		3,907		2,220		15,867		12,596
Net income per share:
	Basic	$	0.13	$	0.07	$	0.51	$	0.40
	Diluted	0.12		0.07		0.51		0.40