Business Combinations (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Recognized Identified Assets Acquired In Business Combination

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed in the Hudson acquisition, including the post-closing adjustments:



	December 31, 2018			Adjustments			As Previously Reported December 31, 2017
Net assets acquired:
Goodwill	$	233.0		$	(5.3	)	$	238.3
Identifiable intangible assets	211.0			—			211.0
Accounts receivable	34.6			—			34.6
Property, plant and equipment	29.4			—			29.4
Inventories	26.5			—			26.5
Other current assets ⁽¹⁾	8.1			—			8.1
Unbilled contract revenue	4.9			—			4.9
Other assets	2.7			(0.2		)	2.9
Prepaid expenses	0.9			—			0.9
Deferred tax liabilities	(80.0		)	7.6			(87.6		)
Accounts payable	(21.2		)	—			(21.2		)
Customer advances and billings in excess of contract revenue	(17.4		)	—			(17.4		)
Accrued salaries, wages and benefits	(4.4		)	—			(4.4		)
Other current liabilities	(4.4		)	(0.6		)	(3.8		)
Other long-term liabilities	(3.4		)	(1.5		)	(1.9		)
Current portion of warranty reserve	(0.8		)	—			(0.8		)
Net assets acquired	$	419.5		$	—		$	419.5

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⁽¹⁾

Pursuant to the provisions of the Merger Agreement, Hudson deposited $2.3 into a Rabbi Trust which represents amounts payable to eligible parties under Long-Term Incentive Agreements. This balance was treated as restricted cash and restricted cash equivalents in the December 31, 2017 consolidated balance sheets and was classified as other current assets. During 2018, the Rabbi Trust deposits were released to the eligible parties.

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed in the VRV acquisition as of the acquisition date:



Net assets acquired:
Identifiable intangible assets	$	66.6
Property, plant and equipment	70.5
Goodwill	63.2
Other net assets	17.9
Debt	(4.9		)
Net assets acquired	$	213.3

Inf

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

Information regarding identifiable intangible assets acquired in the Hudson acquisition is presented below:



	Weighted-average Estimated Useful Life	Preliminary Estimated Asset Fair Value
Finite-lived intangible assets:
Customer relationships	13 years	$	122.1
Unpatented technology	10 years	18.3
Customer backlog ⁽¹⁾	2 years	1.3
Total finite-lived intangible assets acquired	12 years	141.7
Indefinite-lived intangible assets:
Trademarks and trade names		69.3
Total identifiable intangible assets acquired		$	211.0

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⁽¹⁾	Customer backlog acquired is included in “Patents and other” in Note 8, “Goodwill and Intangible Assets.”

Information regarding preliminary identifiable intangible assets acquired in the VRV acquisition is presented below:



	Weighted-average Estimated Useful Life	Preliminary Estimated Asset Fair Value
Finite-lived intangible assets:
Customer relationships	12.0 years	$	28.1
Unpatented technology	12.0 years	15.9
Other identifiable intangible assets ⁽¹⁾	4.0 years	11.8
Trademarks and trade names	14.0 years	10.8
Total finite-lived intangible assets acquired	9.0 years	$	66.6

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⁽¹⁾	Other identifiable intangible assets is included in “Patents and other” in Note 8, “Goodwill and Intangible Assets.”

Pro Forma Disclosures

The following table presents pro forma sales, net income attributable to the Company, and net income attributable to the Company per common share data assuming Hudson was acquired at the beginning of the 2016 fiscal year, and assuming a 35% effective tax rate in both years:



	Year Ended December 31,
	2017		2016
Pro forma sales	$	984.1	$	891.8
Pro forma net income attributable to Chart Industries, Inc.	15.0		5.9

Pro forma net income attributable to Chart Industries, Inc. per common share, basic	$	0.49	$	0.19
Pro forma net income attributable to Chart Industries, Inc. per common share, diluted	$	0.48	$	0.19