BUSINESS COMBINATION (Tables)

6 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Summary of components of total consideration

See below for a summary of the different components that comprise the total consideration.

	Amount
Total cash consideration paid for KMG outstanding common stock and equity awards	$	900,756
Cash provided to payoff KMG debt	304,648
Total cash consideration paid	1,205,404
Fair value of Cabot Microelectronics common stock issued for KMG outstanding common stock and equity awards	331,048
Total consideration transferred	$	1,536,452

Summary of preliminary allocation of fair values of assets acquired and liabilities assumed

The following table summarizes the allocation of fair values of assets acquired and liabilities assumed as of the Acquisition Date.

	Amount
Cash	$	23,217
Accounts receivable	63,950
Inventories	68,087
Prepaid expenses and other current assets	14,694
Property, plant and equipment	147,170
Intangible assets	844,800
Other long-term assets	5,805
Accounts payable	(28,835)
Accrued expenses and other current liabilities	(44,216)
Deferred income taxes liabilities	(156,474)
Other long-term liabilities	(15,080)
Total identifiable net assets acquired	923,118
Goodwill	613,334
Total consideration transferred	$	1,536,452

Components of identifiable intangible asset acquired and their estimated useful lives

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the Acquisition Date:

	Fair Value		Estimated Useful Life (years)
Customer relationships - Flowchem	$	315,000	20
Customer relationships - Electronic chemicals	280,000		19
Customer relationships - all other	109,000		15-16
Technology and know-how	85,500		9-11
Trade name - Flowchem	46,000		Indefinite
Trade name - all other	7,000		1-15
EPA product registration rights	2,300		15
Total intangible assets	$	844,800

Summary of pro forma information

The following unaudited supplemental pro forma information summarizes the combined results of operations for Cabot Microelectronics and KMG as if the Acquisition had occurred on October 1, 2017.

	Three Months Ended March 31, 2019		Six Months Ended March 31, 2019
Revenue	$	265,391	$	549,147
Net income	26,871		64,473
Earnings per share - basic	0.93		2.23
Earnings per share - diluted	0.91		2.19