|6 Months Ended|
Jun. 30, 2014
|Business Combinations [Abstract]|
NOTE 8. BUSINESS COMBINATIONS
The Company made nine acquisitions during the six month period ended June 30, 2014.
Business combinations completed in fiscal 2014
Acquisition of Allpest WA (Allpest) The Company completed the acquisition of Allpest on February 17, 2014. This is the Companys first acquisition outside of North America and places the Company as the number one pest control provider in Western Australia. A valuation of the acquired assets is currently being performed and an estimate of the valuation has been recorded in the Companys financial statements. The effect of any adjustments to these estimates for Allpest is not expected to have a material effect on the Companys financial statements as the net total adjustment will effect a combination of goodwill, customer contracts, and other intangible assets at the end of the measurement period. The Company plans to complete the valuation of Allpests intangible assets prior to its year-end 2014.
Preliminary Purchase Price Allocation
The total cash purchase price for the Companys nine acquisitions in 2014 was $59.7 million.
The fair values of major classes of assets acquired and liabilities assumed along with the contingent consideration liability recorded at the date of acquisition is included in the reconciliation of the total consideration as follows (in thousands):
Goodwill from acquisitions represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill was $255.5 million and $211.8 million at June 30, 2014 and December 31, 2013, respectively. Goodwill generally changes due to the timing of acquisitions, finalization of allocation of purchase prices of previous acquisitions and foreign currency translations. The carrying amount of goodwill in foreign countries was $52.9 million at June 30, 2014 and $9.2 million at December 31, 2013.
The Company completed its most recent annual impairment analyses as of September 30, 2013. Based upon the results of these analyses, the Company has concluded that no impairment of its goodwill or other intangible assets was indicated.
The carrying amount of customer contracts and other intangible assets was $108.9 million and $30.3 million, respectively, at June 30, 2014 and $101.5 million and $27.1 million, respectively at December 31, 2013. The carrying amount of customer contracts and other intangible assets in foreign countries was $19.0 million and $4.9 million, respectively, at June 30, 2014 and $6.3 million and $0.4 million, respectively, at December 31, 2013.
Customer contracts and other amortizable intangible assets are amortized on a straight-line basis over their economic useful lives. The following table sets forth the components of intangible assets as of June 30, 2014 (in thousands):
The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).
Reference 1: http://www.xbrl.org/2003/role/presentationRef