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Acquisitions (Tables) (Presort Meisel Xpo And Edgar Online Acquisitions)
6 Months Ended
Jun. 30, 2013
Presort Meisel Xpo And Edgar Online Acquisitions
 
Schedule of Purchase Price Allocation for Acquisitions

Based on the valuations, the final purchase price allocations for these acquisitions were as follows:

 

Accounts receivable             

$

  18.3

  

Inventories             

 

  2.0

  

 

 

 

 

Prepaid expenses and other current assets             

 

  4.3

  

 

 

 

 

Property, plant and equipment             

 

  10.4

  

 

 

 

 

Amortizable other intangible assets             

 

  37.5

  

Other noncurrent assets             

 

  15.1

  

 

 

 

 

Goodwill             

 

  55.8

  

Accounts payable and accrued liabilities             

 

(21.5

)

Other noncurrent liabilities             

 

(0.1

)

Deferred taxes-net             

 

  10.4

  

Total purchase price-net of cash acquired             

 

  132.2

  

 

 

 

 

Less: debt assumed             

 

  1.4

  

Less: fair value of contingent consideration             

 

  3.5

  

 

 

 

 

Net cash paid             

$

  127.3

  

 

Fair Value, Valuation Techniques and Related Unobservable Inputs of Level Three

The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements:

 

 

Fair Value

 

 

Valuation Technique

 

Unobservable Input

 

Range

Customer relationships

$

  31.4

  

  

Excess earnings, with and without method

  

Discount rate

Attrition rate

  

16.0% - 17.0%

7.0% - 20.0%

 

 

 

 

  

 

  

 

  

 

Technology

 

  14.5

  

  

Excess earnings, relief-from-royalty method, cost approach

  

Discount rate

Obsolescence factor

Royalty rate (after-tax)

  

16.0% - 17.0%

10.0% - 20.0%

4.5%

 

 

 

 

  

 

  

 

  

 

Trade names

 

  3.5

  

  

Relief-from-royalty method

  

Discount rate

Royalty rate (after-tax)

  

15.5% - 17.0%

0.3% - 1.2%

 

 

 

 

  

 

  

 

  

 

Non-compete agreements

 

  2.6

  

  

Excess earnings, with and without method

  

Discount rate

  

16.0% - 17.0%

 

 

 

 

  

 

  

 

  

 

Contingent consideration

 

  3.5

  

  

Probability weighted discounted future cash flows

  

Discount rate

  

  4.5

%