Note 4: Acquisitions

On April 1, 2019, the Company completed the acquisition of certain assets of Cubic, Inc. for a cash purchase price of $2,425, net of $213 cash acquired. Transaction costs related to the purchase were a component of other production, distribution and operating costs in the Consolidated Statements of Operations and totaled $92, of which $63 and $86 were incurred in the three and six months ended June 30, 2019, respectively.

The new entity Cubic Creative, Inc. (“Cubic Creative”) is located in Tulsa, Oklahoma and has approximately 25 employees. This acquisition adds creative strategy services, which will be complementary to service offerings currently available to A. H. Belo clients. The expected benefit from providing these additional services was attributed to goodwill, all of which is expected to be deductible for tax purposes. The acquired operations will be included in the Marketing Services segment.

As of June 30, 2019, the Company was in the process of finalizing the business valuation and its allocation to underlying assets and liabilities. The table below sets forth the preliminary allocation of the purchase price, which is subject to adjustment upon finalization.



		Estimated Fair Value
Working capital, net of acquired cash	$	297
Property, plant and equipment		25
Other intangible assets		510
Goodwill		1,593
Total	$	2,425

Operating results of the business acquired have been included in the Consolidated Statements of Operations from the acquisition date forward. Pro forma results of the Company, assuming the acquisition had occurred at the beginning of each period presented, would not be materially different from the results reported.