Acquisition of Mophie Inc. (Tables)

12 Months Ended

Dec. 31, 2017

The following summarizes the components of the purchase consideration as of March 3, 2016:



	Preliminary Allocation March 3, 2016			Adjustments to Working Capital and Fair Value			Final Allocation March 3, 2016
Cash consideration	$	100,000		$	—		$	100,000
Negative working capital at Acquisition Date	(23,478		)	—			(23,478		)
Additional negative working capital deficit	—			(26,317		)	(26,317		)
Contingent payments	11,283			856			12,139
Total purchase price	$	87,805		$	(25,461	)	$	62,344

Schedule of identifiable assets acquired and liabilities assumed

The following table summarizes the final fair values of the identifiable assets acquired and liabilities assumed as of the Acquisition Date:



Cash and cash equivalents	$	1,779
Trade receivables (gross contractual receivables of $12,914)	12,823
Inventories	24,911
Prepaid expenses and other assets	1,073
Income tax receivable	11,814
Deferred tax assets	16,168
Property and equipment	10,191
Land held for sale	325
Amortizable identifiable intangible assets	43,812
Goodwill	12,272
Accounts payable	(37,359		)
Income tax payable	(196		)
Accrued liabilities	(5,163		)
Deferred revenue	(9		)
Sales returns liability	(29,584		)
Other noncurrent liabilities	(513		)
Total	$	62,344

Summary of assets acquired and liabilities assumed purchase price allocation

The following table summarizes the purchase price allocation as of March 3, 2016:



	Preliminary Purchase Price Allocation March 3, 2016			Adjustments to Working Capital and Fair Value			Final Purchase Price Allocation March 3, 2016
Cash and cash equivalents	$	1,779		$	—		$	1,779
Trade receivables	13,483			(660		)	12,823
Inventories	32,335			(10,010		)	22,325
Inventory step-up	6,937			(4,351		)	2,586
Prepaid expenses	485			215			700
Other assets	200			173			373
Income tax receivable	10,958			856			11,814
Deferred tax assets	24,925			(8,757		)	16,168
Property and equipment	10,191			—			10,191
Land held for sale	325			—			325
Amortizable identifiable intangible assets	45,463			(1,651		)	43,812
Goodwill	14,092			(1,820		)	12,272
Accounts payable	(34,228		)	(3,131		)	(37,359		)
Income tax payable	(196		)	—			(196		)
Accrued liabilities	(5,185		)	22			(5,163		)
Deferred revenue	(800		)	791			(9		)
Sales returns liability	(14,468		)	(15,116		)	(29,584		)
Deferred tax liabilities	(17,978		)	17,978			—
Other noncurrent liabilities	(513		)	—			(513		)
Total	$	87,805		$	(25,461	)	$	62,344

Summary of intangible asset class and related preliminary weighted average amortization periods

The amounts assigned to each class of intangible asset and the related weighted average amortization periods are as follows:



	Intangible asset class		Weighted-average amortization period

Tradenames	$	18,348	10.0 years
Patents and technology	15,225		7.5 years
Customer relationships	8,200		5.0 years
Non-compete agreements	1,796		5.0 years
Backlog	243		0.3 years
Total	$	43,812

Summary of unaudited pro-forma results of operations

The following unaudited pro-forma results of operations for the 12 months ended December 31, 2016 and 2015 give pro forma effect as if the acquisition and borrowings used to finance the acquisition had occurred on January 1, 2015, after giving effect to certain adjustments including the amortization of intangible assets, interest expense, tax adjustments, specific transaction related expenses incurred prior to the execution date, and assumes the purchase price was allocated to the assets purchased and liabilities assumed based on their fair market values at the date of purchase.



	12 Months Ended
	December 31, 2016			December 31, 2015
Net sales	$	419,183		$	455,165
Net loss	$	(17,487	)	$	(5,393	)
Basic loss per share	$	(0.62	)	$	(0.19	)
Diluted loss per share	$	(0.62	)	$	(0.19	)