Columbia Sportswear 2014 Annual Report Download - page 59

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
55
PrAna contributed net sales of $53,715,000 and net loss of $2,434,000 to the Company from May 31, 2014 to December
31, 2014, including amortization of acquired assets of $7,326,000. In addition, the Company incurred transaction costs of
$3,387,000 during the year ended December 31, 2014. These acquisition and integration costs are included in SG&A
expenses in the Consolidated Statements of Operations for the year ended December 31, 2014.
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 $54,156,000,
all of which was assigned to the United States segment, and is attributable to future growth opportunities and any intangible
assets that did not qualify for separate recognition. The goodwill is expected to be deductible for tax purposes.
The following table summarizes the fair value of the net assets acquired and liabilities assumed and measurement
period adjustments since May 30, 2014, the acquisition date (in thousands). Measurement period adjustments since the
May 30, 2014 acquisition date were not significant.
Valuation at
December 31,
2014
Cash $ 4,946
Accounts receivable 10,021
Inventories 9,641
Other current assets 2,531
Property, plant and equipment 5,192
Acquired intangible assets 114,500
Other non-current assets 258
Total assets acquired 147,089
Accounts payable 2,803
Other current liabilities 5,029
Total liabilities assumed 7,832
Net identifiable assets acquired 139,257
Goodwill 54,156
Net assets acquired $ 193,413
The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of
May 30, 2014, the acquisition date (in thousands, except for estimated useful lives, in years):
Estimated fair value Estimated useful life,
in years
Trade name $ 88,000 Indefinite
Customer relationships 23,000 3-10 years
Order backlog 3,500 Less than 1 year
Total $ 114,500
The order backlog was fully amortized during the year ending December 31, 2014.