Business Combinations (Tables)

6 Months Ended

May 03, 2019

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the allocation of the preliminary purchase price to the values assigned to the CMW assets acquired and liabilities assumed. These values are based on internal company and independent external third-party valuations and are subject to change as certain asset and liability valuations are finalized:



(Dollars in thousands)	April 1, 2019
Cash and cash equivalents	$	16,036
Receivables	65,618
Inventories	243,721
Prepaid expenses and other current assets	8,209
Property, plant and equipment	142,700
Goodwill	145,538
Other intangible assets	232,980
Other long-term assets	12,956
Accounts payable	(36,644		)
Accrued liabilities	(44,260		)
Deferred income tax liabilities	(83,254		)
Other long-term liabilities	(7,985		)
Total fair value of net assets acquired	695,615
Less: cash and cash equivalents acquired	(16,036		)
Total purchase price	$	679,579

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The preliminary fair values of the other intangible assets acquired on the closing date, related accumulated amortization from the closing date through May 3, 2019, and preliminary weighted-average useful lives were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Customer-related	18.1	$	111,400	$	(576	)	$	110,824
Developed technology	7.7	19,300		(266		)	19,034
Trade names	20.0	5,300		(22		)	5,278
Backlog	0.5	6,580		(1,097		)	5,483
Total amortizable	16.0	142,580		(1,961		)	140,619
Non-amortizable - trade names		90,400		—			90,400
Total other intangible assets, net		$	232,980	$	(1,961	)	$	231,019

Business Acquisition, Pro Forma Information

The following table presents the unaudited pro forma financial information:



	Three Months Ended				Six Months Ended
(Dollars in thousands)	May 3, 2019		May 4, 2018		May 3, 2019		May 4, 2018
Net sales	$	1,086,708	$	1,046,932	$	1,864,243	$	1,749,535
Net earnings¹	176,481		131,022		233,404		152,102
Basic net earnings per share of common stock	1.65		1.23		2.19		1.42
Diluted net earnings per share of common stock¹	$	1.63	$	1.20	$	2.16	$	1.39

On January 1, 2019, CMW amended its retiree medical plans so that no employee hired, or rehired, after that date would be eligible for such retiree medical plans. CMW further amended its retiree medical plans on February 14, 2019 so that no employee who terminates employment after February 14, 2019 is eligible to participate in the retiree medical plans and to terminate its retiree medical plans effective December 31, 2019. The amendments and resulting termination of CMW's retiree medical plans resulted in a gain of approximately $45.8 million. This gain is reflected within net earnings

in the unaudited pro forma financial information for the three and six month periods ended May 3, 2019. The impact on diluted net earnings per share of common stock for the three and six month periods ended May 3, 2019 was $0.42 per diluted share of common stock.