Business Combinations (Tables)

9 Months Ended

Aug. 02, 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	$	16,341
Receivables	65,674
Inventories	242,594
Prepaid expenses and other current assets	9,218
Property, plant and equipment	142,405
Goodwill	154,040
Other intangible assets	227,280
Other long-term assets	7,971
Accounts payable	(36,655		)
Accrued liabilities	(46,866		)
Deferred income tax liabilities	(79,628		)
Other long-term liabilities	(6,709		)
Total fair value of net assets acquired	695,665
Less: cash and cash equivalents acquired	(16,341		)
Total purchase price	$	679,324

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 August 2, 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	18.2	$	105,700	$	(2,180	)	$	103,520
Developed technology	7.7	19,300		(1,064		)	18,236
Trade names	20.0	5,300		(88		)	5,212
Backlog	0.5	6,580		(4,387		)	2,193
Total amortizable	15.9	136,880		(7,719		)	129,161
Non-amortizable - trade names		90,400		—			90,400
Total other intangible assets, net		$	227,280	$	(7,719	)	$	219,561

Business Acquisition, Pro Forma Information

The following table presents the unaudited pro forma financial information:



	Three Months Ended				Nine Months Ended
(Dollars in thousands, except per share data)	August 2, 2019		August 3, 2018		August 2, 2019		August 3, 2018
Net sales	$	838,713	$	854,314	$	2,702,956	$	2,603,850
Net earnings¹	87,180		85,647		320,740		237,935
Basic net earnings per share of common stock	0.81		0.81		3.01		2.23
Diluted net earnings per share of common stock¹	$	0.81	$	0.79	$	2.97	$	2.18

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 nine month period ended August 2, 2019. The impact on diluted net earnings per share of common stock for the nine month period ended August 2, 2019 was $0.42 per diluted share of common stock.