Quarterly report pursuant to Section 13 or 15(d)

BUSINESS COMBINATIONS

v3.5.0.2
BUSINESS COMBINATIONS
 6 Months Ended
Jun. 30, 2016
Business Combinations [Abstract]  
BUSINESS COMBINATIONS
NOTE 8.    BUSINESS COMBINATIONS

 

The Company made twenty-one acquisitions during the six month period ended June 30, 2016, and twelve acquisitions for the year ended December 31, 2015, respectively, as disclosed on various press releases and related Form 8-Ks.

 

Total cash purchase price for the Company’s acquisitions for the six months ended June 30, 2016 was $35.0 million net of cash acquired.

 

The preliminary values of major classes of assets acquired and liabilities assumed recorded at the date of acquisition, as adjusted during the valuation period, are included in the reconciliation of the total consideration as follows (in thousands):

 

    June 30,
    2016
Accounts receivable   $ 2,030  
Materials and supplies     250  
Equipment and property     3,393  
Goodwill     2,304  
Customer contracts     35,571  
Other intangible assets     589  
Current liabilities     (4,319 )
Other assets and liabilities, net     (2,035 )
Total consideration paid   $ 37,783  
Less:  Contingent consideration liability     (2,745 )
Total cash purchase price   $ 35,038  

 

Goodwill from acquisitions represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill was $254.0 million and $249.9 million at June 30, 2016 and December 31, 2015, respectively. Goodwill generally changes due to the timing of acquisitions, finalization of allocation of purchase prices of previous acquisitions and foreign currency translations. The carrying amount of goodwill in foreign countries was $41.0 million at June 30, 2016 and $36.9 million at December 31, 2015.

 

The Company completed its most recent annual impairment analyses as of September 30, 2015. Based upon the results of these analyses, the Company has concluded that no impairment of its goodwill or other intangible assets was indicated.

 

The carrying amount of customer contracts and other intangible assets was $118.8 million and $45.8 million, respectively, at June 30, 2016, and $92.8 million and $46.1 million, respectively, at December 31, 2015. The carrying amount of customer contracts and other intangible assets in foreign countries was $31.0 million and $4.5 million, respectively, at June 30, 2016, and $14.9 million and $4.2 million, respectively, at December 31, 2015.

 

Customer contracts and other amortizable intangible assets are amortized on a straight-line basis over their economic useful lives. The following table sets forth the components of intangible assets as of June 30, 2016 (in thousands):

 

    Carrying   Useful Life
Intangible Asset   Value   in Years
Customer contracts   $ 118,822      3 - 12.5
Trademarks and tradenames     32,574      0 - 20
Non-compete agreements     5,573      3 - 20
Patents     3,359      3 - 15
Other assets     2,049     10
Internet domains     2,227      n/a
Total customer contracts and other intangible assets   $ 164,604