ACQUISITIONS: On June 20, 2012, Nucor completed the acquisition of the entire equity interest in Skyline Steel LLC (“Skyline”) and its subsidiaries for the cash purchase price of approximately $683.5 million, including our most recent estimate of working capital adjustments. No cash was received nor was any debt incurred as a result of the acquisition. Skyline’s financial results have been included in the Company’s condensed consolidated financial statements from the acquisition date and did not significantly impact the Company’s consolidated financial results for the three and six month periods ended June 30, 2012. Skyline’s financial results are included as part of the steel mills segment (see Note 17).

Skyline is a steel foundation distributor serving the U.S., Canada, Mexico and the Caribbean. Skyline distributes products to service challenging applications including marine construction, bridge and highway construction, heavy civil construction, storm protection, underground commercial parking, and environment containment projects in the infrastructure and construction industries. Skyline is a significant consumer of H-piling and sheet piling from Nucor-Yamato Steel, and it will become a larger downstream consumer of Nucor’s coiled plate and sheet products.

We have preliminarily allocated the purchase price for Skyline to its individual assets acquired and liabilities assumed. Our valuations are subject to adjustment as additional information is obtained; however, these adjustments are not expected to be material. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed of Skyline as of the date of acquisition (in thousands):


Accounts Receivable	$	128,004
Inventory		260,473
Other current assets		4,410
Property, plant and equipment		70,100
Goodwill		143,190
Other intangible assets		219,100

Total assets acquired		825,277


Current liabilities		139,433
Deferred credits and other liabilities		2,299

Total liabilities assumed		141,732


Net assets acquired	$	683,545

The preliminary purchase price allocation to the identifiable intangible assets is as follows (in thousands, except years):


			Weighted - Average Life
Customer relationships	$	188,000	17 years
Trademarks and trade names		29,500	20 years
Other		1,600	5 years

	$	219,100

The goodwill of $143.2 million is primarily attributed to the synergies expected to arise after the acquisition and has been allocated to the steel mills segment (see Note 6). Approximately $126.4 million of the goodwill recognized is expected to be deductible for tax purposes.

Our second quarter 2012 results were negatively impacted by non-cash charges of $8.5 million associated with the Skyline acquisition. These charges include the impact of purchase accounting adjustments and the elimination of profit associated with our steel mills’ sales to Skyline post-acquisition.