Note 16: Acquisitions and Divestitures

BUSINESS ACQUISITIONS

Through the three months ended March 31, 2017, we purchased the following for $185,067,000 of cash consideration:

California — ready-mixed concrete facilities, a marine aggregates distribution yard and building materials yards

Tennessee — an aggregates facility, asphalt mix operations, an asphalt paving business and a rail-served aggregates operation

The 2017 acquisitions listed above are reported in our condensed consolidated financial statements as of their respective acquisition dates. None of these acquisitions were material to our results of operations or financial position either individually or collectively.

The fair value of consideration transferred for these acquisitions and the preliminary amounts of assets acquired and liabilities assumed (based on their estimated fair values at their acquisition dates), are summarized below:



	March 31
in thousands	2017
Fair Value of Purchase Consideration
Cash	$ 185,067
Total fair value of purchase consideration	$ 185,067
Identifiable Assets Acquired and Liabilities Assumed
Inventories	4,057
Other current assets	90
Property, plant & equipment, net	111,619
Other intangible assets
Contractual rights in place	62,824
Other intangibles	61
Liabilities assumed	(1)
Net identifiable assets acquired	$ 178,650
Goodwill	$ 6,417

Estimated fair values of assets acquired and liabilities assumed are preliminary pending appraisals of contractual rights in place and property, plant & equipment.

As a result of these acquisitions, we recognized $62,885,000 of amortizable intangible assets (primarily contractual rights in place). The contractual rights in place noted above will be amortized against earnings ($62,824,000 – straight-line over a weighted-average 18.8 years) and deductible for income tax purposes over 15 years. The goodwill noted above will be deductible for income tax purposes over 15 years.

For the full year 2016, we purchased the following for total consideration of $33,287,000 ($32,537,000 cash and $750,000 payable):

Georgia — a distribution business to complement our aggregates logistics and distribution activities

New Mexico — an asphalt mix operation

Texas — an aggregates facility

None of the 2016 acquisitions listed above were material to our results of operations or financial position either individually or collectively. As a result of these 2016 acquisitions, we recognized $16,670,000 of amortizable intangible assets ($15,213,000 contractual rights in place and $1,457,000 noncompetition agreement). The contractual rights in place are amortized against earnings ($6,798,000 – straight-line over 20 years and $8,415,000 units of production over an estimated 20 years) and deductible for income tax purposes over 15 years.

DIVESTITURES AND PENDING DIVESTITURES

No assets met the criteria for held for sale at March 31, 2017, December 31, 2016 or March 31, 2016.