Business Combinations

9 Months Ended

Sep. 30, 2011

Business Combinations

Note 3.                  Business Combinations

During 2010, the Company completed two acquisitions for an aggregate purchase price of approximately $469.  During the first half of 2011, the Company completed two insignificant acquisitions for a net aggregate purchase price of approximately $20.  These acquisitions were accounted for as purchases under FASB ASC 805, Business Combinations (“ASC 805”).  The assets purchased and liabilities assumed for these acquisitions have been reflected in the accompanying consolidated balance sheet as of September 30, 2011 and the results of operations for the acquisitions are included in the accompanying consolidated statement of earnings from the respective dates of acquisition.

TSI

On October 26, 2010, the Company acquired the TSI Group (“TSI”), a privately-held company, for a net purchase price of approximately $307 in cash.  TSI designs, engineers and manufactures customized, fully integrated, thermal management and interconnect solutions that address complex power management requirements of a broad range of customers in the aerospace and defense industries.  The Company completed its evaluation and allocation of the purchase price for the TSI acquisition during the period ended September 30, 2011 which resulted in a $17.9 increase in non-amortizing identifiable intangible assets and a $17.9 decrease in goodwill.  The excess of the purchase price over the fair value of the identifiable net tangible assets acquired approximated $282.0 of which $72.6 has been allocated to identified intangible assets and $209.4 is included in goodwill.

Satair

On October 27, 2010, the Company acquired the aerospace fastener distribution business of Satair A/S (“Satair”), for approximately $162 in cash.  Satair is a distributor of consumables to European and Asia Pacific aerospace manufacturers and their suppliers.  The Company completed its evaluation and allocation of the purchase price for the Satair acquisition during the period ended September 30, 2011.  The excess of the purchase price over the fair value of identifiable net tangible assets acquired approximated $92.8 of which $16.1 has been allocated to identified intangible assets and $76.7 is included in goodwill.

Essentially all of the goodwill and other intangibles related to these acquisitions are not expected to be deductible for tax purposes.

Consolidated unaudited pro forma revenues, net earnings, and diluted net earnings per share for the three and nine month periods ended September 30, 2010 giving effect to the TSI and Satair acquisitions as if they had occurred on January 1, 2010 were $556.0, $43.1 and $0.43, respectively, and $1,617.4, $114.2 and $1.13, respectively.