Acquisitions

9 Months Ended

Sep. 30, 2020

ACQUISITIONS

On January 3, 2020, we acquired one funeral home and cemetery combination business in Lafayette, California for $33.0 million in cash, of which $5.0 million was deposited in escrow in 2019 and $28.0 million was paid at closing in 2020. We acquired substantially all of the assets and assumed certain operating liabilities of these businesses.

The pro forma impact of this acquisition on prior periods is not presented, as the impact is not significant to our reported results. The results of the acquired business is reflected in our Consolidated Statements of Operations from the date of acquisition.

Subsequent to our initial purchase price allocation for this acquisition made during the first quarter of 2020, we have adjusted our purchase price allocation based on additional information which became available prior to September 30, 2020. The following table summarizes the breakdown of the purchase price allocation for these businesses (in thousands):


	Initial Purchase Price Allocation		Adjustments		Adjusted Purchase Price Allocation
Current assets	$	2,662	$	(107)	$	2,555
Preneed trust assets	9,089		—		9,089
Property, plant & equipment	1,720		—		1,720
Cemetery property	14,753		82		14,835
Goodwill	12,916		656		13,572
Intangible and other non-current assets	2,506		(628)		1,878
Assumed liabilities	(489)		—		(489)
Deferred tax liability	(527)		(3)		(530)
Preneed trust liabilities	(9,089)		—		(9,089)
Deferred revenue	(541)		—		(541)
Purchase price	$	33,000	$	—	$	33,000

The current assets primarily relate to preneed cemetery receivables. The intangible and other non-current assets relate to the fair value of tradenames. The assumed liabilities primarily relate to the obligations associated with delivered preneed

merchandise that was not paid for prior to acquisition. As of September 30, 2020, our accounting for cemetery receivables, cemetery property, deferred revenue and deferred tax liabilities for this acquisition has not been finalized.

During the nine months ended September 30, 2020, we also recorded adjustments to the purchase price allocation for three acquisitions closed in the fourth quarter of 2019. The following table summarizes the breakdown of the purchase price allocation for these businesses and the subsequent adjustments made based on additional information which became available prior to September 30, 2020 (in thousands):


	Initial Purchase Price Allocation		Adjustments		Adjusted Purchase Price Allocation
Current assets	$	1,482	$	204	$	1,686
Preneed trust assets	15,891		—		15,891
Property, plant & equipment	21,680		—		21,680
Cemetery property	11,994		(45)		11,949
Goodwill	99,344		638		99,982
Intangible and other non-current assets	8,269		(1,480)		6,789
Assumed liabilities	(657)		(145)		(802)
Preneed trust liabilities	(15,463)		—		(15,463)
Deferred revenue	(1,633)		992		(641)
Purchase price	$	140,907	$	164	$	141,071

During the nine months ended September 30, 2020, we paid an additional $164,000 for our acquisition of the cemetery business in Fairfax, Virginia to reimburse the sellers for certain incremental taxes resulting from the 338(h)(10) election under the Internal Revenue Code. We also received $153,000 in cash, recorded in Current assets, related to the closing of all operating bank accounts in place prior to the acquisition. As of September 30, 2020, our accounting for our 2019 acquisitions is complete.