BUSINESS COMBINATION (Tables)

3 Months Ended

Dec. 31, 2018

	Amount
Total cash consideration paid for KMG outstanding common stock and equity awards	$	900,756
Cash provided to payoff KMG debt		304,648
Total cash consideration paid		1,205,404
Fair value of Cabot Microelectronics common stock issued for KMG outstanding common stock and equity awards		331,048
Total consideration transferred	$	1,536,452

Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of fair values of assets acquired and liabilities assumed as of Acquisition Date:

Cash	$	23,217
Accounts receivable		74,649
Inventories		68,963
Prepaid expenses and other current assets		4,860
Property, plant and equipment		149,504
Intangible assets		844,800
Other long-term assets		6,208
Accounts payable		(31,761	)
Accrued expenses and other current liabilities		(40,584	)
Deferred income taxes liabilities		(164,778	)
Other long-term liabilities		(3,754	)
Total identifiable net assets acquired		931,324
Goodwill		605,128
Total consideration transferred	$	1,536,452

Identifiable Intangible Assets

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the Acquisition Date:

	Fair Value		Estimated Useful Life (years)
Customer relationships	$	704,000		15-20
Technology and know-how		85,500		9-11
Trade name - Flowchem		46,000	Indefinite
Trade name - all other		7,000		1-15
EPA product registration rights		2,300		15
Total intangible assets	$	844,800

Pro Forma Combined Results of Operations

The following unaudited supplemental pro forma information summarizes the combined results of operations for Cabot Microelectronics and KMG as if the Acquisition had occurred on October 1, 2017.

	Three Months Ended December 31,
	2018		2017
Revenue	$	283,756	$	252,734
Net income		30,604		(56,109	)
Earnings per share - basic (in dollars per share)		1.06		(1.96	)
Earnings per share - diluted (in dollars per share)	$	1.04	$	(1.96	)

The following costs are included in the three months ended December 31, 2017

	Non-recurring transaction costs of $29,326.

	Non-recurring accelerated stock compensation expense of $10,316.

	Non-recurring retention and severance expense of $25,461.