CMG Acquisition (Tables)

9 Months Ended

Jun. 30, 2020

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The Company has accounted for the CMG Acquisition using the acquisition method. The components of the final CMG purchase price allocations are as follows:


Assets acquired:
Cash	$	0.3
Accounts receivable	10.2
Prepaid expenses and other current assets	1.1
Property, plant and equipment	613.6
Investment in Pennant	88.0
Intangible assets (a)	250.0
Total assets acquired	$	963.2

Liabilities assumed:
Accounts payable	$	3.3
Other noncurrent liabilities	0.1
Total liabilities assumed	3.4
Goodwill	324.6
Net consideration transferred (including working capital adjustments)	$	1,284.4

(a)Represents customer relationships having an average amortization period of 35 years.

We allocated the purchase price of the acquisition to identifiable intangible assets and property, plant and equipment based on estimated fair values as follows:

•Customer relationships were valued using a multi-period, excess earnings method. Key assumptions used in this method include discount rates, growth rates and cash flow projections. These assumptions are most sensitive and susceptible to change as they require significant management judgment; and

•Property, plant and equipment were valued based on estimated fair values primarily using depreciated replacement cost and market value methods.