Acquisitions

9 Months Ended

Sep. 30, 2016

Acquisitions [Abstract]

Acquisitions

Note 2 - Acquisitions

On November 3, 2015, Accuride subscribed to a controlling seventy percent (70%) ownership interest in Gianetti, an Italian manufacturer of steel wheels for heavy- and medium-duty commercial vehicles and motorcycles, in exchange for a commitment to invest €19.75 million ($21.8 million) in Gianetti. The remaining 30 percent ownership interest in Gianetti was retained by MW Italia S.r.l., a subsidiary of Coils Lamiere Nastri - C.L.N. S.p.A.  Accuride contributed €3.75 million ($4.1 million) to Gianetti after closing and has agreed to invest the remaining commitments no later than as follows:  €5.4 million ($5.9 million) in 2016, €9.1 million ($10.1 million) in 2017, and the remainder in 2018.  Accuride will finance its remaining investment in Gianetti through general working capital and availability under its existing credit agreements.  Gianetti's principle manufacturing and engineering facility is located in Ceriano Laghetto, near Milan, Italy. The Company acquired the controlling interest to expand into the European market under its "Grow" strategy. The results of operations have been included in the consolidated financial statements since the date of acquisition.

The following summarizes the allocation of the purchase price (in thousands) to the fair value of the assets and liabilities acquired including noncontrolling interest:

Accounts receivable	$	11,063
Inventory		6,571
Other current assets		41
Property, plant and equipment		21,124
Accounts payable		(9,911	)
Short-term debt		(8,406	)
Other current liabilities		(3,364	)
Severance indemnity		(2,772	)
Long-term debt		(66	)
Noncontrolling interest		(14,280	)
Total consideration	$	—

The pro forma revenue and losses of the combined entity had the acquisition occurred on January 1, 2015 are as follows:

	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
(In thousands)	Revenue			Net Income			Revenue			Net Income
Supplemental pro forma financial information		$	155,623		$	990		$	482,445		$	3,515

Pro forma financial information includes an adjustment for depreciation based on the step up value of property, plant and equipment.