ACQUISITIONS

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONSThe following table contains the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions during the periods presented (using inputs as discussed in Note 13). A portion of the goodwill included in the table below is expected to provide an income tax benefit.

	Nine Months Ended September 30,
	2022		2021
Accounts receivable	$	30.4	$	20.7
Inventory	36.5		17.4
Property, plant and equipment	5.8		15.3
Goodwill	35.9		76.9
Other intangible assets:
Customer relationships (15-year life)	39.5		45.5
Technology (8 to 15-year life)	5.0		18.6
Trademarks and trade names (15 to 20-year life)	1.2		6.6
Non-compete agreements and other (1 to 10-year life)	1.2		2.7
Other current and long-term assets	5.8		5.5
Current liabilities	(51.9)		(40.8)
Deferred income taxes	(16.7)		(10.9)
Other long-term liabilities	(2.6)		(4.7)
Fair value of net identifiable assets	90.1		152.8
Less: Additional contingent consideration payable	27.6		.5
Net cash consideration	$	62.5	$	152.3

The following table summarizes acquisitions for the periods presented.

Nine Months Ended	Number of Acquisitions	Segment	Product/Service
September 30, 2022	2	Furniture, Flooring & Textile Products	Converter and distributor of construction fabrics for the furniture and bedding industries;
		Specialized Products	Manufacturer of hydraulic cylinders for heavy construction machinery;
September 30, 2021	3	Bedding Products	Manufacturer of specialty foam for the bedding and furniture industries;
		Furniture, Flooring & Textile Products	Manufacturer of bent metal tubing for furniture used in office, residential, and other settings;
		Specialized Products	Manufacturer of high-pressure and high-temperature ducting, flexible joints and components

We are finalizing all of the information required to complete the purchase price allocations related to the most recent acquisitions and updated information will be reported as a measurement period adjustment in future quarters.

The results of operations of the above acquired companies have been included in the consolidated financial statements since the date of acquisition. The unaudited pro forma consolidated net sales, net earnings and earnings per share as though these acquisitions had occurred on January 1 of each year presented is not materially different from the amounts reflected in the accompanying financial statements.

Certain of our acquisition agreements provide for additional contingent consideration to be paid based upon analysis of the closing balance sheet and if the acquired company's performance exceeds certain targeted levels through December 31, 2025. Such additional consideration will be paid in cash and the liability is recorded at discounted fair value at the acquisition date. The range of the undiscounted amounts we could be required to pay is currently estimated to be between $9.0 and $58.0. Components of the liability are based on estimates and contingent upon future events, therefore, the amounts may fluctuate materially until the payment dates. At September 30, 2022 our liability for these future payments was $27.0 ($11.0 current and $16.0 long-term). Subsequent remeasurement of the estimate will be recorded in "Other expense (income), net" in the Consolidated Condensed Statements of Operations.

A brief description of our acquisition activity during the periods presented is included below.

2022

We acquired two businesses:

•A converter and distributor of construction fabrics and other supply items for the furniture and bedding industries. This acquisition became a part of our Furniture, Flooring & Textile Products segment. The acquisition date was August 22. The purchase price was $2.3, with total goodwill of $.1.

•A leading global manufacturer of hydraulic cylinders for heavy construction machinery. This business has manufacturing locations in Germany and China and a distribution facility in the United States. This acquisition expands the capabilities of our hydraulic cylinder business to grow our presence in engineered industrial components and operates within our Specialized Products segment. The acquisition date was August 26. The purchase price was $87.8, with total goodwill of $35.8.

2021

We acquired three businesses:

•A specialty foam and finished mattress manufacturer serving the United Kingdom (UK) and Irish marketplace with two manufacturing facilities in the Dublin area. This acquisition became a part of our Bedding Products segment. The acquisition date was June 4. Following the recording of measurement period adjustments subsequent to third quarter 2021 shown above, the final purchase price was $119.7, with total goodwill of $58.3.

•A Polish manufacturer of bent metal tubing for furniture used in office, residential, and other settings. This acquisition became a part of our Furniture, Flooring & Textile Products segment. The acquisition date was May 31. Following the recording of measurement period adjustments subsequent to third quarter 2021 shown above, the final purchase price was $5.4, with total goodwill of $4.4.

•A UK manufacturer specializing in metallic ducting systems, flexible joints, and components for space, military, and commercial applications. This acquisition expands the capabilities of our aerospace products business to include flexible joint fabrication and operates within our Specialized Products segment. The acquisition date was January 30. Following the recording of measurement period adjustments subsequent to third quarter 2021 shown above, the final purchase price was $27.7, with total goodwill of $8.5.