Annual report pursuant to Section 13 and 15(d)

Acquisition (Tables)

v3.10.0.1
Acquisition (Tables)
12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Purchase Price Allocation
The following table sets forth the calculation and allocation of the purchase price to the net assets acquired of PQ Holdings with respect to the Business Combination, which was complete as of December 31, 2016.
Total consideration, net of cash acquired
$
2,689,941

 
 

Recognized amounts of identifiable assets acquired and liabilities assumed:
 

Receivables
$
161,110

Inventories
254,770

Prepaid and other current assets
19,295

Investments in affiliated companies
472,994

Property, plant and equipment
683,673

Other intangible assets
754,000

Other long-term assets
48,127

Fair value of assets acquired
2,393,969

 
 
Revolver, notes payable & current debt
(2,441
)
Accounts payable
(93,222
)
Accrued liabilities
(98,621
)
Long-term debt
(20,470
)
Deferred income taxes
(327,296
)
Other long-term liabilities
(113,936
)
Noncontrolling interest
(6,569
)
Fair value of net assets acquired
1,731,414

 
 
Goodwill
958,527

 
$
2,689,941

 
 
The following table sets forth the calculation and allocation of the purchase price to the identifiable net assets acquired with respect to the Acquisition, which was complete as of March 31, 2018:
 
 
Provisional Purchase
Price Allocation
 
Adjustments
 
Purchase
Price Allocation
Total consideration, net of cash acquired
 
$
41,572

 
$

 
$
41,572

 
 
 

 
 
 
 
Recognized amounts of identifiable assets acquired and liabilities assumed:
 
 

 
 
 
 
Receivables
 
$
14,305

 
$

 
$
14,305

Inventories
 
7,645

 
1,603

 
9,248

Prepaid and other current assets
 
400

 

 
400

Property, plant and equipment
 
9,020

 
15,960

 
24,980

Other intangible assets
 

 
5,753

 
5,753

Other long-term assets
 
129

 
15,921

 
16,050

Fair value of assets acquired
 
31,499

 
39,237

 
70,736

 
 
 
 
 
 
 
Current debt
 
(6,420
)
 

 
(6,420
)
Accounts payable
 
(10,748
)
 

 
(10,748
)
Long-term debt
 
(10,189
)
 

 
(10,189
)
Deferred income taxes
 

 
(4,426
)
 
(4,426
)
Other long-term liabilities
 
(154
)
 

 
(154
)
 
 
 
 
 
 
 
Fair value of net assets acquired
 
3,988

 
34,811

 
38,799

Goodwill
 
37,584

 
(34,811
)
 
2,773

 
 
 
 
 
 
 
 
 
$
41,572

 
$

 
$
41,572

 
 
 
 
 
 
 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The valuation of the intangible assets acquired and the related weighted-average amortization periods are as follows:
 
 
Amount  
 
Weighted-Average
Expected Useful Life
(in years)  
Intangible assets subject to amortization:
 
 
 
 
Trademarks
 
$
35,400

 
15.0
Technical know-how
 
189,300

 
20.0
Contracts
 
19,800

 
5.3
Customer relationships
 
268,700

 
10.6
In-process research and development
 
6,800

 
 
 
 
 

 
 
Total intangible assets subject to amortization
 
520,000

 
 
Trade names, not subject to amortization
 
151,100

 
Indefinite
Trademarks, not subject to amortization
 
82,900

 
Indefinite
 
 
 

 
 
Total
 
$
754,000

 
 
 
 
 
 
 
The valuation of the intangible assets acquired and the related weighted-average amortization periods are as follows:
 
 
Amount
 
Weighted-Average
Expected Useful Life
(in years)
Intangible assets subject to amortization:
 
 
 
 
Trademarks
 
$
1,767

 
11
Technical know-how
 
1,892

 
11
Total intangible assets subject to amortization
 
3,659

 
 
Trade names, not subject to amortization
 
2,094

 
Indefinite
Total
 
$
5,753

 
 
 
 
 
 
 
Business Acquisition, Pro Forma Information
 
 
Year ended
December 31, 2016
Pro forma sales
 
$
1,403,041

Pro forma net loss
 
(76,994
)
 
 
 
 
 
Years ended
December 31,
 
 
2017
 
2016
Pro forma sales
 
$
1,488,528

 
$
1,105,479

Pro forma net income (loss)
 
58,774

 
(78,234
)
Pro forma net income (loss) attributable to PQ Group Holdings Inc.
 
57,814

 
(78,822
)
Pro forma basic income (loss) per share
 
$
0.52

 
$
(1.01
)
Pro forma diluted income (loss) per share
 
$
0.52

 
$
(1.01
)