Acquisitions (Tables) (Atlas Carpet Mills [Member])

9 Months Ended

Sep. 27, 2014

Atlas Carpet Mills [Member]

Business Acquisition, Cost of Acquired Entity, Description of Purchase Price Components

The purchase price consideration was as follows:



Cash paid	$	16,543
Accrued consideration for holdbacks	923
Accrued consideration for working capital adjustment	1,274
Total purchase price consideration	$	18,740

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The preliminary fair value of the net assets acquired exceeded the purchase price resulting in a bargain purchase. The recorded gain is subject to adjustment because the Company has not yet completed its evaluation and determination of the fair value, or fair value less cost to sell as applicable, of certain assets acquired and liabilities assumed, which will include the final valuation and assessment of (i) property, plant and equipment acquired including assets held for sale and (ii) net working capital acquired. The Company expects these final valuations and assessments to be completed by the end of fiscal 2014. During the second quarter of 2014, based on further information, the Company retroactively applied adjustments to the initial provisional amounts to the first quarter of 2014. Such adjustments are presented in the table below. The most significant adjustments were to assets held for sale and inventories. The amount of assets held for sale were revised based on a pending offer with a buyer and revisions in estimated costs to sell. Inventories were revised for a change in their initial fair value. As a result of the adjustments, previously reported first quarter pre-tax earnings were increased by $1,818 ($1,127 after tax). The adjusted bargain gain recognized in the Consolidated Condensed Statement of Operations is $10,562 ($6,548 after tax).



	Originally						As
	Reported			Adjustments			Adjusted
Cash	$	2,466		$	—		$	2,466
Receivables	4,304			—			4,304
Inventories	11,511			(530		)	10,981
Other current assets	956			(159		)	797
Assets held for sale (1)	3,250			1,902			5,152
Property, plant and equipment	6,929			87			7,016
Finite intangible asset	3,300			—			3,300
Other assets	623			236			859
Accounts payable	(2,286		)	—			(2,286		)
Accrued expenses	(3,036		)	153			(2,883		)
Capital lease obligation	(404		)	—			(404		)
Fair value of net assets acquired	$	27,613		$	1,689		$	29,302
Total consideration	18,869			(129		)	18,740
Gain on purchase of business	$	(8,744	)	$	(1,818	)	$	(10,562	)

(1)

As part of the acquisition of Atlas, the Company announced that the Atlas dyeing operations would be consolidated into the Company's Santa Ana, California operations. All of the dye house equipment was either relocated or disposed of by the end of the Company's third fiscal quarter. The land and building have been classified in the Company's Consolidated Condensed Balance Sheet as assets held for sale at fair value less the costs to sell.