Business Combinations (Tables)

12 Months Ended

Oct. 31, 2019

Business Combinations [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

The following table summarizes the allocation of the purchase price to the fair values assigned to the CMW assets acquired and liabilities assumed. These fair values are based on internal company and independent external third-party valuations (in thousands):

	April 1, 2019
Cash and cash equivalents	$	16,341
Receivables	65,674
Inventories	241,429
Prepaid expenses and other current assets	9,218
Property, plant and equipment	142,779
Goodwill	135,521
Other intangible assets	264,190
Other long-term assets	7,971
Accounts payable	(36,655		)
Accrued liabilities	(52,258		)
Deferred income tax liabilities	(86,231		)
Other long-term liabilities	(6,665		)
Total fair value of net assets acquired	701,314
Less: cash and cash equivalents acquired	(16,341		)
Total purchase price	$	684,973

Finite-lived and indefinite-lived intangible assets acquired as part of business combination

The fair values of the other intangible assets acquired on the closing date, related accumulated amortization from the closing date through October 31, 2019, and weighted-average useful lives were as follows (in thousands, except weighted-average useful life):

	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Customer-related	18.3	$	130,800	$	(4,981	)	$	125,819
Developed technology	7.8	20,900		(2,019		)	18,881
Trade names	20.0	5,200		(152		)	5,048
Backlog	0.5	3,590		(3,590		)	—
Total amortizable	16.6	160,490		(10,742		)	149,748
Non-amortizable - trade names		103,700		—			103,700
Total other intangible assets, net		$	264,190	$	(10,742	)	$	253,448

Business acquisition, pro forma information

The following table presents unaudited pro forma financial information for fiscal 2019 and 2018 (in thousands, except per share data):

	October 31, 2019		October 31, 2018
Net sales	$	3,437,335	$	3,332,636
Net earnings1	363,452		276,722
Basic net earnings per share of common stock	3.40		2.60
Diluted net earnings per share of common stock1	$	3.36	$	2.55

¹ 

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 fiscal year ended October 31, 2019. The impact on diluted net earnings per share of common stock for the fiscal year ended October 31, 2019 was $0.42 per diluted share of common stock.