Purchase of Comfortaire (Notes)

6 Months Ended

Jun. 29, 2013

Purchase of Comfortaire [Abstract]

Purchase of Comfortaire [Text Block]

Purchase of Comfortaire

On January 17, 2013, we completed the purchase of the business and assets of Comfortaire Corporation, a manufacturer and marketer of adjustable air-supported sleep systems. We purchased Comfortaire to progress our role as the leader in delivering innovative products as part of an individualized sleep experience, while also strengthening our competitive advantages. The acquisition price was $15.5 million. Comfortaire Corporation was a privately held company with 2012 net sales of $10.5 million. The purchase of Comfortaire's business and assets did not have a significant impact on our consolidated results of operations, cash flows or financial position.

The following table summarizes the preliminary fair value of the net assets acquired as of June 29, 2013 (in thousands):

Accounts receivable	$	365
Inventories	678
Other assets	219
Property and equipment	509
Goodwill	6,157
Intangible assets	8,638
Total assets acquired	16,566
Accounts payable	344
Warranty liabilities	658
Other liabilities	64
Total liabilities acquired	1,066
Net assets acquired	$	15,500

The goodwill and identifiable intangible assets will be deductible for income tax purposes over a 15-year period on a straight-line basis. Purchase accounting is considered preliminary, subject to revision, mainly with respect to certain working capital accounts, taxes and goodwill, as final information was not available as of June 29, 2013.

Identifiable intangible assets and estimated useful lives are as follows (in thousands):

	Estimated
	Useful Life
Developed technologies	10 years	$	4,829
Customer relationships	7 years	2,413
Trade name/trademarks	Indefinite Lived	1,396
		$	8,638