Nautilus 2015 Annual Report Download - page 46
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Please find page 46 of the 2015 Nautilus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Total acquisition costs incurred through December 31, 2015 were $0.6 million and were expensed in general and administrative costs.
Purchase Price Allocation
Acquired assets and liabilities were recorded at estimated fair value as of the acquisition date. The excess of the purchase price over the estimated fair value of
identifiable net assets resulted in the recognition of goodwill of $58.4 million , all of which was assigned to the Retail segment, and is attributed primarily to
Octane's intellectual property base, benefits of access to different markets and customers, and employee workforce. The goodwill is not expected to be deductible
for income tax purposes.
The goodwill was determined on the basis of the provisional fair values of the assets and liabilities identified as of the acquisition date. It may be adjusted, within a
period of no more than 12 months from the acquisition date, if the provisional fair values change as a result of circumstances existing at the acquisition date. Such
fair value adjustments may arise in respect to intangible assets, inventories, and property, plant and equipment, upon completion of the necessary valuations and
physical verifications of such assets. The amount of deferred taxes may also be adjusted during the measurement period.
As of December 31, 2015, the fair values of the assets acquired and liabilities assumed for the acquisition of Octane are provisional because final appraisals and/or
valuations have not yet been completed. The following table summarizes the preliminary fair values of the net assets acquired and liabilities assumed, net of any
working capital and other adjustments, as of December 31, 2015 (in thousands):
Preliminary Valuation at
December 31, 2015
Cash $ 7,759
Accounts receivable 12,507
Inventories 12,168
Prepaid expenses 1,028
Deferred tax assets 1,287
Property, plant and equipment 3,240
Intangible assets 63,100
Total assets acquired $ 101,089
Accounts payable 6,215
Accrued liabilities 1,614
Warranty obligations 5,550
Deferred tax liabilities, non-current 20,914
Other non-current liabilities 519
Total liabilities assumed $ 34,812
Net identifiable assets acquired $ 66,277
Goodwill 58,357
Net assets acquired $ 124,634
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