Quarterly report pursuant to Section 13 or 15(d)

BUSINESS COMBINATIONS

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BUSINESS COMBINATIONS
 3 Months Ended
Mar. 31, 2016
Business Combinations [Abstract]  
BUSINESS COMBINATIONS

NOTE 8. BUSINESS COMBINATIONS

 

The Company made eight and twelve acquisitions during the three month period ended March 31, 2016, and for the year ended December 31, 2015, respectively, as disclosed on various press releases and related Form 8-Ks.

 

Total cash purchase price for the Company’s acquisitions for the three months ended March 31, 2016 was $21.1 million net of cash acquired.

 

The preliminary values of major classes of assets acquired and liabilities assumed recorded at the date of acquisition, as adjusted during the valuation period, are included in the reconciliation of the total consideration as follows (in thousands):

 

    March 31,
    2016
Accounts receivable   $ 764  
Materials and supplies     95  
Equipment and property     2,077  
Customer contracts     21,203  
Other intangible assets     375  
Current liabilities     (2,149 )
Other assets and liabilities, net     (1,256 )
Total cash purchase price   $ 21,109  

 

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 $252.6 million and $249.9 million at March 31, 2016 and December 31, 2015, 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 $39.6 million at March 31, 2016 and $36.9 million at December 31, 2015.

 

The Company completed its most recent annual impairment analyses as of September 30, 2015. 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 $111.2 million and $46.4 million, respectively, at March 31, 2016, and $92.8 million and $46.1 million, respectively, at December 31, 2015. The carrying amount of customer contracts and other intangible assets in foreign countries was $24.4 million and $4.6 million, respectively, at March 31, 2016, and $14.9 million and $4.2 million, respectively, at December 31, 2015.

 

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 March 31, 2016 (in thousands):

 

    Carrying   Useful Life
Intangible Asset   Value   in Years
Customer contracts   $ 111,157      3 - 12.5
Trademarks and tradenames     32,764      0 - 20
Non-compete agreements     5,716      3 - 20
Patents     3,495      3 - 15
Other assets     2,184     10
Internet domains     2,227      n/a
Total customer contracts and other intangible assets   $ 157,543