Cincinnati Sub-Zero Acquisition (Tables)

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Summary of Preliminary Allocation

The purchase price allocation is expected to be finalized by December 31, 2016.  The preliminary allocation as of April 1, 2016 was as follows:

Accounts receivable	$	10,790
Inventory		16,284
Prepaid expenses and other assets		1,143
Property and equipment		12,919
Customer relationships		11,700
Technology		3,200
Trade name		6,370
Goodwill		24,422	a
Assumed liabilities		(13,235	)
Net assets acquired		73,593
Cash acquired		985
Purchase price	$	74,578

(a) The preliminary amount recorded to goodwill includes an estimate of consideration owed to the seller for a tax gross up.

Supplemental Pro Forma Information

The unaudited pro forma combined historical results including the amounts of CSZ’s revenue and earnings that would have been included in the Company’s consolidated condensed statements of income had the acquisition date been January 1, 2016 or January 1, 2015 are as follows:

	Three Months Ended September 30,		Nine Months EndedSeptember 30,
	2015		2016		2015
Product revenues	$	237,690	$	696,964	$	687,327
Net income	$	25,182	$	50,955	$	65,054
Basic earnings per share	$	0.70	$	1.40	$	1.81
Diluted earnings per share	$	0.69	$	1.39	$	1.79

Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following:

	September 30, 2016
	Gross Value		AccumulatedAmortization		Net Value		Useful Life
Customer relationships	$	11,700	$	390	$	11,310	15 yrs
Technology		3,200		260		2,940	5 -7 yrs
Trade name		6,370		—		6,370	Indefinite
Total	$	21,270	$	650	$	20,620

Summary of Amortization Expense

Amortization expense of $327 and $650 for the three and nine months ended September 30, 2016 was recorded as follows:

	Three Months EndedSeptember 30, 2016		Nine Months EndedSeptember 30, 2016
Product revenues	$	197	$	390
Selling, general and administrative expense		130		260

Estimate of Total Intangible Asset Amortization

Amortization expense for the prospective five years is estimated to be as follows:

October 1, 2016 through December 31, 2016	$	325
2017	$	1,300
2018	$	1,300
2019	$	1,300
2020	$	1,300
2021	$	1,135

Summary of Property and Equipment

Property and equipment consist of the following:

Asset category	Useful life	Amount
Land	Indefinite	$	1,630
Buildings	20 yrs		6,024
Machinery and equipment	5-7 yrs		3,718
Computer hardware and software	3-5 yrs		586
Assets under construction			961
		$	12,919