Acquisitions

3 Months Ended

Mar. 31, 2016

Acquisitions [Abstract]

Acquisitions

(4)Acquisitions

On February 12, 2016, the Company purchased Challenger Overseas LLC (Challenger), a New Jersey based Non-Vessel Operating Common Carrier (NVOCC), for approximately $10.8 million,  $3.0 million of which is based on the future performance of Challenger.  Expected future payments of $2.0 million and $1.0 million are recorded in Other long-term liabilities and Accrued expenses and other current liabilities, respectively, in the Company’s consolidated balance sheet at March 31, 2016.

The acquisition was recorded during the first quarter of 2016 using the purchase method of accounting as prescribed under ASC 805, Business Combinations. Accordingly, assets acquired and liabilities assumed were recorded at their fair value estimated by management as of February 12, 2016. The purchase price for the acquisition has been allocated to the assets acquired and liabilities assumed as follows (in thousands):

Cash	$	1,163
Accounts receivable		698
Property and equipment		2
Goodwill		6,089
Intangible assets		3,673
Total assets		11,625
Accounts payable		571
Other liabilities		211
Total liabilities		782
Purchase price	$	10,843

Adjustments to record the assets acquired and liabilities assumed at fair value include the recognition of $3.7 million of intangible assets as follows:

	Amount		Estimated Life
Tradename	$	494		5 years
Customer relationships		3,179		8 years

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The Company’s results for the three months ended March 31, 2016 include the results of Challenger for the period since the date of acquisition. Pro forma financial statements are not presented as they are not material to the Company’s overall financial statements.