ACQUISITIONS

9 Months Ended

Jul. 31, 2011

ACQUISITIONS

ACQUISITIONS

(20) In December 2010, the Company acquired the remaining 64 percent ownership interest in A&I Products, Inc., a manufacturer and wholesale distributor of replacement parts, for approximately $48 million.  The preliminary fair values assigned to the total assets and liabilities related to the acquired entity were approximately $8 million of receivables, $52 million of inventories, $22 million of property and equipment, $18 million of identifiable intangible assets, $3 million of other assets, $8 million of accounts payable and accrued expenses, $4 million of short-term borrowings, $9 million of deferred tax liabilities and $11 million of long-term borrowings.  The goodwill generated in the transaction was not significant.  The identifiable intangibles were primarily related to customer lists and relationships, which have amortization periods with a weighted average of six years.  The fair value at acquisition date of the original equity interest was $23 million.  The gain recognized as a result of remeasuring the equity interest from the previous carrying value to fair value was not significant.  The entity was consolidated and the results of these operations have been included in the Company’s consolidated financial statements in the agriculture and turf segment since the date of the acquisition.  The pro forma results of operations as if the acquisition had occurred at the beginning of the current or comparative fiscal year would not differ significantly from the reported results.