CompUSA 2015 Annual Report Download - page 59

Table of Contents
AreconciliationofpretaxlossofDiscontinuedOperationstotheNetLossofDiscontinuedOperationsisasfollows:
  Year Ended December 31, 
  2015   2014   2013 
Netsales  $ 1,053.4  $ 1,338.6  $ 1,376.9
Costofsales   997.1   1,222.6   1,254.7
Grossprofit   56.3   116.0   122.2
Selling,generalandadministrativeexpenses   109.9   119.7   126.0
Specialcharges,net   1.6   8.5   6.0
Foreigncurrencyexchange(gain)loss   (0.5)   0.1   (0.4)
Interestandotherincome,net   0.1   0.2   -
Lossofdiscontinuedoperationsbeforeincometaxes   (54.8)   (12.5)   (9.4)
Benefitforincometax   (3.3)   (7.0)   (8.6)
Netlossfromdiscontinuedoperations   (51.5)   (5.5)   (0.8)
3. ACQUISITIONS
On January 30, 2015, IPG acquired all of the outstanding equity interests of the Plant Equipment Group (“PEG”) from TAKKT America, a business-to-
businessdirectmarketerofmaintenance,repairandoperations(“MRO”)productswithoperationsinNorthAmericaforapproximately$25.9millionincash,
$1.9millionofwhichwasplacedintoanescrowaccountforoneyeartosecurethesellers’indemnificationobligationsunderthepurchaseagreement.This
acquisitionexpandedtheIPGsegmentpresenceintheMROmarketinNorthAmerica.Theacquisitionisconsideredanassetacquisitionfortaxpurposesand
assuch,thegoodwillresultingfromthis acquisition is tax deductible. The totalassociated transactioncostsoftheacquisitionwere$0.4million and were
recordedinselling,generalandadministrativeexpense.Theacquisitionwasaccountedforusingtheacquisitionmethodofaccounting,whichrequires,among
otherthings,theassetsacquiredandtheliabilitiesassumedberecognizedattheirfairvaluesasoftheacquisitiondate.
Thefollowingtablesummarizesthefairvalueoftheassetsacquiredandliabilitiesassumed(inmillions):
Purchaseprice  $ 25.9
Less:   
Cash   1.1
Accountsreceivable   10.0
Inventory   11.8
Fixedassets   1.2
Prepaidexpenses   0.6
Leases,net   0.8
Clientlists   2.1
Trademarks   4.1
Accountspayable   (7.5)
Accruedexpenses   (3.7)
Otherliabilities   (0.2)
Goodwill  $ 5.6
TheamountallocatedtogoodwillreflectsthebenefitstheCompanyexpectstorealizefromthegrowthoftheacquisition’soperations.
ForthetwelvemonthsendedDecember31,2015PEGgeneratedapproximately$89.1millioninrevenueandapproximately$1.1millionofpretaxincome.
TheCompany’sunauditedproformarevenueandnetlossfortheyearsendedDecember31,2015and2014belowhavebeenpreparedasifPEGhadbeen
purchasedonJanuary1,2014(inmillions).
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