Acquisition of Business and Other Assets

9 Months Ended

Sep. 30, 2013

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]

Business Combination Disclosure [Text Block]

Note 4.      ACQUISITION OF BUSINESS AND OTHER ASSETS

During the three months ended September 30, 2013, we paid an aggregate of $10.1 million in cash to acquire all outstanding shares of a distributor of our bovine and dairy test products, as well as other food safety testing products, in Brazil. We recorded provisional amounts for all of the assets acquired and the liabilities assumed based upon their estimated fair values at the date of the business acquisition. These provisional amounts are subject to revision as valuation work and other analyses are still being conducted.We may adjust our recorded provisional amounts as necessary, up to one year after the acquisition closing date, as we obtain more information regarding asset values and liabilities assumed as a result of the business acquisition.

As part of this business acquisition, we recorded$4.8 million in amortizable intangible assets other than goodwill and$6.2 million in goodwill. The amortizable assets acquired consisted of a customer list, non-compete agreement and a trademark, which were assigned useful lives of 10,  5, and 15 years, respectively. Additionally, we have recorded $2.0 million in working capital, $0.4 million of fixed assets and $2.6 million of other liabilities. The weighted average useful life of all recognized amortizable intangible assets was 9.9 years. Goodwill is calculated as the consideration in excess of net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill and amortizable intangible assets recorded from this business acquisition are not deductible for income tax purposes. All assets acquired in connection with this business acquisition were assigned to our Livestock, Poultry and Dairy segment. Pro forma information has not been presented for this business acquisition because such information is not material to the financial statements.

We acquired a customer list in February 2013 for a purchase price of $1.0 million, which was recorded entirely to intangible assets other than goodwill. The asset acquired was assigned to our Companion Animal Group segment.