Summary of Measurement Period Adjustments Made to Preliminary Purchase Price Allocation

During the fiscal quarter ended October 31, 2017, measurement period adjustments were made to the preliminary purchase price allocation recorded in the consolidated financial statements for the fiscal year ended July 31, 2017. The acquired intangible assets, deferred tax liabilities and goodwill were adjusted as a result of additional analyses performed on the estimates used in the calculation of the fair value of the assets acquired and liabilities assumed. The measurement period adjustments to the amortizable intangible assets resulted in an immaterial reduction in the amortization expense recognized in the Company’s condensed consolidated statements of income for the three months ended October 31, 2017, and a reduction in the estimated amortization expense going forward.

	October 31, 2017		Measurement Period Adjustment			July 31, 2017
Customer relationships	$	205,467	$	(9,415	)	$	214,882
Trade names and trademark		32,353		3,402			28,951
Proprietary manufacturing process		39,323		78			39,245
Deferred tax liability		24,484		(562	)		25,046
Goodwill		204,717		5,371			199,346

Summary of Acquired Assets and Assumed Liabilities and Preliminary/Final Acquisition Accounting for Fair Value of Assets and Liabilities Recognized

The Company has accounted for the purchase using the acquisition method of accounting for business combinations. Accordingly, the purchase price has been allocated to the underlying assets and liabilities in proportion to their respective fair values. The following table summarizes the acquired assets and assumed liabilities and the preliminary acquisition accounting for the fair value of the assets and liabilities recognized in the condensed consolidated balance sheet at January 31, 2018 (in thousands):

Cash	$	11,445
Accounts receivable		11,280
Inventory		9,310
Other assets		499
Property, plant and equipment, net		19,665
Intangible assets
Customer relationships		205,467
Trade names and trademark		32,353
Proprietary manufacturing process		39,323
Total assets	$	329,342
Current liabilities		3,132
Deferred tax liability		24,484
Net identifiable assets acquired		301,726
Goodwill		204,717
Fair value of net assets acquired	$	506,443

Summary of Acquired Assets and Assumed Liabilities and Preliminary/Final Acquisition Accounting for Fair Value of Assets and Liabilities Recognized

The following table summarizes the acquired assets and assumed liabilities and the final acquisition accounting for the fair value of the assets and liabilities recognized in the condensed consolidated balance sheet at January 31, 2018 (in thousands):

Cash	$	69
Accounts receivable		2,937
Inventory		2,350
Other assets		38
Property, plant and equipment, net		4,192
Intangible assets		—
Trade name/trademark		2,185
Non-compete agreements		2,254
Customer relationships		2,348
Total assets acquired	$	16,373
Current liabilities		1,272
Deferred taxes		681
Net identifiable assets acquired		14,420
Goodwill		2,771
Fair value of net assets acquired	$	17,191