Acquisition

3 Months Ended

Mar. 25, 2017

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note M – Acquisition

During the three months ended March 25, 2017, the Company acquired certain assets and liabilities through two acquisitions. These acquisitions, individually and in aggregate, were not and would not have been material to the Company’s net sales, results of operations or total assets during the three months ended March 25, 2017. Accordingly, our consolidated results from operations do not differ materially from historical performance as a result of these acquisitions, and therefore, pro-forma results are not presented.

Total consideration paid for the acquisitions was $1.5 million, of which $1.4 million was paid in cash and a note payable was recorded for the remaining $0.1 million. The consideration paid by the company for these acquisitions was allocated to the assets acquired, net of the liabilities assumed, based upon their estimated fair values as of the date of the acquisition.

ASC 805 requires that when fair value of the net assets acquired exceeds the purchase price, resulting in a bargain purchase, the acquirer must reassess the reasonableness of the values assigned to all of the net assets acquired, liabilities assumed and consideration transferred. The Company has performed such assessment and has concluded that the values assigned appear to be reasonable. The following table summarizes the allocation of the purchase price for the acquisition that resulted in a bargain purchase:

In thousands
Accounts receivable, net	$	852
Inventories, net		737
Other assets		64
Intangible assets		413
Total fair value of assets acquired		2,066
Total liabilities assumed		(563)
Net assets acquired		1,503
Total consideration paid		(1,101)
Gain before deferred income tax liability		402
Income tax liability – deferred		(146)
Gain on bargain purchase	$	256

The Company has not yet finalized the purchase price or its final evaluation of the fair value of certain assets acquired. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of inventory, intangible assets, deferred income taxes and residual gain on bargain purchase. Any changes during the measurement period may have an impact on the allocation of the purchase price presented in the table above.