Acquisitions

3 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Acquisitions

Acquisitions

The table below reflects the activity related to the acquisitions and dispositions of our animal hospitals during the three months ended March 31, 2017 and 2016, respectively. There were no laboratory acquisitions or dispositions during the three months ended March 31, 2017 and 2016, respectively.

	Three Months Ended March 31,
	2017	2016
Animal Hospitals:
Acquisitions	15	24
Acquisitions, merged	—	(1	)
Sold, closed or merged	—	(2	)
Net increase	15	21

Animal Hospital Acquisitions

The purchase price allocations for some of the 2017 animal hospital acquisitions included in the table below are preliminary; however, adjustments, if any, are not expected to be material. The measurement periods for purchase price allocations do not exceed 12 months from the acquisition date. The following table summarizes the aggregate consideration and the allocation of the purchase price for our independent animal hospitals acquired during the three months ended March 31, 2017 and 2016, respectively (in thousands):

	Three Months Ended March 31,
	2017		2016
Consideration:
Cash, net of cash acquired	$	81,721	$	157,325
Assumed debt	8,374		1,361
Holdbacks	1,600		3,508
Earn-outs	—		3,437
Fair value of total consideration transferred	$	91,695	$	165,631
Allocation of the Purchase Price:
Tangible assets	$	5,395	$	17,541
Identifiable intangible assets (1)	10,303		18,844
Goodwill (2)	75,884		129,246
Other liabilities assumed	113		—
Fair value of assets acquired and liabilities assumed	$	91,695	$	165,631

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⁽¹⁾  Identifiable intangible assets include customer relationships, trademarks and covenants-not-to-compete. The weighted-average amortization period for the total identifiable intangible assets is approximately five years. The weighted-average amortization period for customer relationships, trademarks and covenants-not-to-compete is approximately five, two and five years, respectively.

⁽²⁾   We expect that $75.9 million and $129.2 million of the goodwill recorded for these acquisitions, as of March 31, 2017 and 2016, respectively, will be fully deductible for income tax purposes.