Acquisitions (Tables)

3 Months Ended

Aug. 31, 2017

Schedule of Acquisition of Intangible Assets

In connection with the acquisition, we identified and valued the following identifiable intangible assets:

(in thousands)	Amount		Useful Life (Years)
Category
Customer relationships	$	90,800		14-17
Trade names		62,200		Indefinite
Technology		13,000		15-16
Total acquired identifiable intangible assets	$	166,000

Schedule of Consideration Transferred for the Assets of Amtrol and the Preliminary Fair Value Assigned to Assets Acquired And Liabilities Assumed

The following table summarizes the consideration transferred for the assets of Amtrol and the preliminary fair value assigned to the assets acquired and liabilities assumed at the acquisition date:

(in thousands)
Cash	$	6,893
Accounts receivable		40,212
Inventories		37,249
Prepaid expenses		981
Other assets		2,550
Intangible assets		166,000
Property, plant and equipment		52,870
Total assets		306,755
Accounts payable		25,945
Accrued liabilities		21,016
Long-term debt including current maturities		2,287
Other accrued items		3,993
Deferred income taxes, net		64,495
Net identifiable assets		189,019
Goodwill		102,902
Purchase price	$	291,921
Less: excess working capital		(523	)
Cash paid at closing	$	291,398

Summary of Unaudited Pro forma Results

The following table presents the unaudited pro forma results for the three months ended August 31, 2017 and 2016 as if the acquisition had occurred June 1, 2016. The pro forma results include adjustments for the step-up of inventories to fair value, amortization and depreciation of the identified intangible assets and property, plant and equipment, and certain acquisition-related costs and the related tax effects. Proforma net earnings for the three months ended August 31, 2017, have also been adjusted for severance costs accrued to restructuring expense for headcount reductions at Amtrol initiated in the current period, as discussed in “NOTE C – Restructuring and Other Expense.” The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at such time.

	Three months ended August 31,
(in thousands, except per share amounts)	2017		2016
Net sales	$	848,237	$	795,544
Net earnings attributable to controlling interest	$	49,471	$	70,357
Diluted earnings per share attributable to controlling interest	$	0.77	$	1.09