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Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
Schedule of Business Acquisitions
The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the acquisition date:
(in millions)
 
Purchase price, inclusive of working capital adjustment (a)
$
96.6

Estimated fair value of additional consideration (b)
10.3

Settlement of pre-existing contractual relationship (c)
11.4

Total consideration
118.3

 
 
Accounts receivable
12.2

Inventories
28.8

Prepaid expenses and other current assets
0.8

Rental equipment
75.9

Properties and equipment
2.0

Intangible assets (d)
8.4

Capital lease obligations
(0.5
)
Accounts payable (c)
(11.5
)
Customer deposits
(0.8
)
Accrued liabilities
(2.0
)
Net assets acquired
113.3

 
 
Goodwill (e)
$
5.0

(a)
The initial purchase price was funded with existing cash on hand and borrowings under the Company’s revolving credit facility.
(b)
Includes estimated fair value of contingent earn-out payment ($4.9 million) and the deferred payment ($5.4 million) as of the acquisition date. Included as a component of Other long-term liabilities on the Condensed Consolidated Balance Sheet. See Note 14 – Fair Value Measurements for discussion of the methodology used to determine the fair value of the contingent earn-out payment.
(c)
Represents the non-cash settlement of accounts receivable due from JJE to the Company as of the acquisition date. Corresponding amount payable by JJE to the Company is not included in accounts payable assumed in the table above, and the amount was settled at fair value with no impact on the Condensed Consolidated Statement of Operations.
(d)
Represents the preliminary fair value assigned to the JJE trade name, which is considered to be an indefinite-lived intangible asset.
(e)
The majority of goodwill is expected to be deductible for tax purposes.