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Cincinnati Sub-Zero Acquisition (Tables)

12 Months Ended

Dec. 31, 2016

The purchase price allocation was finalized during the fourth quarter of 2016. The 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		24,622	^a
Assumed liabilities		(13,435	)

Net assets acquired		73,593
Cash acquired		985

Purchase price	$	74,578

(a)

The amount of recorded goodwill includes $2,000 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 statements of income had the acquisition date been January 1, 2016 or January 1, 2015 are as follows:

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2015		2016		2015
Product revenues	$	232,324	$	933,505	$	919,651
Net income	$	27,272	$	74,485	$	94,833
Basic earnings per share	$	0.75	$	2.04	$	2.63
Diluted earnings per share	$	0.75	$	2.04	$	2.60

Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following:

	December 31, 2016
	Gross Value		Accumulated Amortization		Net Value		Useful Life
Customer relationships	$	11,700	$	585	$	11,115	15 yrs
Technology		3,200		390		2,810	5 -7 yrs
Trade name		6,370		—		6,370	Indefinite
Total	$	21,270	$	975	$	20,295

Summary of Amortization Expense

Amortization expense of $325 and $975 for the three and twelve months ended December 31, 2016 was recorded as follows:

	Three Months Ended December 31, 2016		Twelve Months Ended December 31, 2016
Product revenues	$	195	$	585
Research and development expenses		130		390

Estimate of Total Intangible Asset Amortization

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

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