Acquisitions

12 Months Ended

Dec. 31, 2015

Acquisitions

Acquisitions

Note 3—Acquisitions

        In October 2015, the Company completed the acquisition of Jordan Valley Semiconductors, Ltd. ("Jordan Valley"), a company headquartered in Israel that provides X-ray metrology and defect-detection equipment for semiconductor process control. The acquisition of Jordan Valley was accounted for under the acquisition method. The components and fair value allocation of the consideration transferred in connection with the acquisition of Jordan Valley were as follows (in millions):

Consideration Transferred:
Cash paid	$	35.4
Cash acquired		(6.8	)
Contingent consideration		4.1
Total consideration transferred	$	32.7
Allocation of Consideration Transferred:
Accounts receivable	$	3.8
Inventories		10.5
Other current assets		2.2
Property, plant and equipment		1.6
Intangible assets:
Customer relationships		6.8
Existing technology		6.0
Trade name		1.5
Goodwill		6.3
Liabilities assumed		(6.0	)
Total consideration transferred	$	32.7

        The fair value allocation included contingent consideration in the amount of $4.1 million, which represented the estimated fair value of future payments to the former shareholders of Jordan Valley based on achieving annual revenue and gross margin targets for the years 2016-2017. The maximum potential future payments related to the contingent consideration is $15 million. The Company completed the fair value allocation in the fourth quarter of 2015. The amortization period for intangible assets acquired in connection with Jordan Valley is 7 years for customer relationships, existing technology and trade name.

        The results of Jordan Valley, including the amount allocated to goodwill which is attributable to expected synergies and not expected to be deductible for tax purposes, have been included in the BSI Segment from the date of acquisition. Pro forma financial information reflecting the acquisition of Jordan Valley has not been presented because the impact on revenues, net income and total assets is not material.