Business Combinations

9 Months Ended

Sep. 30, 2022

NOTE 17 — BUSINESS COMBINATIONS

The following table summarizes the net assets acquired from the 2022 acquisition (amounts in millions):


	YIT
Cash	$	2.3
Accounts receivable, net of allowances		9.5
Inventories, net		7.5
Prepaid expenses and other current assets		0.1
Rental fleet, net		21.3
Property and equipment, net		2.0
Operating lease right-of-use assets, net		2.2
Goodwill		2.3
Total Assets	$	47.2

Accounts payable	$	(1.5	)
Accrued expenses		(1.5	)
Current operating lease liabilities		(0.8	)
Current portion of deferred revenue		(1.1	)
Other current liabilities		(1.4	)
Total liabilities	$	(6.3	)

Net Assets Acquired	$	40.9

Assets acquired net of cash	$	38.6

On July 29, 2022 the Company acquired the stock of Yale Industrial Trucks Inc. ("YIT"), a privately held Canadian equipment distributor with locations in Ontario and Quebec, for a total purchase price of $40.9 million.

The estimated fair values of assets acquired, and liabilities assumed are provisional and are based on the information that was available as of the balance sheet date. The Company expects to finalize the valuation and complete the purchase price allocation as soon as practical but no later than one year from the acquisition date. Costs and expenses related to the acquisition have been expensed as incurred in operating expenses.

The following table summarizes the net assets acquired by segment from the 2021 acquisitions (amounts in millions):


	Material Handling			Construction			Total
Cash	$	0.5		$	1.2		$	1.7
Accounts receivable, net of allowances		0.9			8.1			9.0
Inventories, net		0.6			27.5			28.1
Prepaid expenses and other current assets		0.4			—			0.4
Rental fleet, net		—			13.1			13.1
Property and equipment, net		0.6			3.3			3.9
Operating lease right-of-use assets, net		2.3			6.6			8.9
Other intangible assets, net		0.9			12.6			13.5
Goodwill		1.5			27.3			28.8
Total Assets	$	7.7		$	99.7		$	107.4

Floor plan payable	$	—		$	(17.1	)	$	(17.1	)
Accounts payable		(0.3	)		(4.7	)		(5.0	)
Accrued expenses		(0.1	)		(2.7	)		(2.8	)
Customer deposits		(0.6	)		(1.4	)		(2.0	)
Current operating lease liabilities		(0.2	)		(0.4	)		(0.6	)
Current portion of deferred revenue		—			—			—
Other current liabilities		(0.9	)		—			(0.9	)
Deferred tax liability		—			(3.7	)		(3.7	)
Long-term operating lease liabilities		(2.1	)		(6.2	)		(8.3	)
Other liabilities		—			(0.8	)		(0.8	)
Total liabilities	$	(4.2	)	$	(37.0	)	$	(41.2	)

Net Assets Acquired	$	3.5		$	62.7		$	66.2

Assets acquired net of cash	$	3.0		$	61.5		$	64.5

During 2022, we have had purchase price accounting adjustments related to 2021 acquisitions which were not significant individually or in the aggregate. See the Condensed Consolidated Statements of Cash Flows for the total cash outflow in "Expenditures for acquisitions, net of cash acquired." We describe our 2021 acquisitions in more detail in Note 20 of the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021.