Business Acquisition

6 Months Ended

Feb. 28, 2014

Business Combinations [Abstract]

Business Acquisition

14. Business Acquisition

On July 1, 2013, the Company completed its acquisition of Nypro Inc. (“Nypro”) by acquiring 100% of the issued and outstanding common shares of Nypro for net aggregate consideration of $679.5 million, which was funded from available cash. Nypro is a provider of manufactured precision plastic products for customers in the healthcare, packaging and consumer electronics industries. Nypro has advanced capabilities in product design, tooling, injection molding, surface decoration and complete product manufacturing.

The acquisition of Nypro has been accounted for as a business combination using the acquisition method of accounting. The following table (in thousands) summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. The allocation of the purchase price is considered preliminary pending final valuation by the Company for intangible assets, noncontrolling interests and tax adjustments.

	As reported at August 31, 2013			Adjustments			February 28, 2014
Cash	$	77,384		$	(12	) (a)	$	77,372
Other current assets		343,446			(648	) (a)		342,798
Property, plant and equipment		282,599			(4,579	) (b)		278,020
Intangible assets		196,800			7,800	(b)		204,600
Goodwill		335,871			21,559	(c)		357,430
Other assets		28,304			(1,745	) (a)		26,559
Current liabilities		(322,397	)		(361	) (a)		(322,758	)
Long-term deferred tax liability		(153,030	)		(15,810	) (a)		(168,840	)
Other liabilities		(72,906	)		3,495	(a)		(69,411	)
Noncontrolling interests		(36,548	)		(9,699	) (b)		(46,247	)
Net assets acquired	$	679,523		$	—		$	679,523

^(a)  Adjustment related to the fair value of identifiable assets and liabilities

^(b)  Adjustment based on final valuation results

^(c)  Adjustment based on provisional amounts in (a) and (b)

The $204.6 million of acquired intangible assets includes $81.0 million assigned to customer relationships with an assigned useful life of up to 15 years, $51.2 million assigned to intellectual property with an assigned useful life of up to 8 years and $72.4 million assigned to an indefinite-lived trade name.

The excess of the purchase price over the fair value of the acquired assets and assumed liabilities of $357.4 million was recorded to goodwill and was assigned fully to the DMS reportable segment. The goodwill is not expected to be deductible for tax purposes.