Acquisitions (Tables)
3 Months Ended
Oct. 31, 2020
Business Combinations [Abstract]  
Schedule of purchase price allocated to the assets acquired and assumed liabilities based on estimated fair values
The following table presents our purchase price allocation of our material acquisition (which was accounted for as a business combination in accordance with ASC Topic 805 “Business Combinations”):
2020
Purchase Price Allocation
Hu-Friedy(1)(2)
(Final)
Purchase Price:
Cash paid$662,151 
Fair value of contingent consideration38,371 
Common stock issued54,391 
Total$754,913 
Allocation:
Property and equipment38,613 
Intangible assets:
Customer relationships225,000 
Technology32,000 
Brand names112,000 
Goodwill276,744 
Deferred income taxes(222)
Inventories63,680 
Other working capital7,098 
Total$754,913 
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(1)During the second quarter of fiscal 2020, we paid $25,000 to settle a portion of the contingent consideration, and during the third quarter of fiscal 2020, we paid $35,000 to repurchase a portion of the common stock issued, both of which were included in Acquisitions, net of cash acquired in the Condensed Consolidated Statement of Cash Flows. See Note 9, “Fair Value Measurements” for additional information.
(2)The excess purchase price over net assets acquired was assigned to goodwill, all of which is deductible for income tax purposes.
Schedule of pro forma summary of operations The following pro forma summary of operations presents our operations as if the Hu-Friedy acquisition had occurred as of the beginning of fiscal 2019. In addition to including the results of operations of this acquisition, the pro forma information gives effect to amortization of the step-up in inventory, depreciation of the step-up in property and equipment, the interest on additional borrowings, the amortization of intangible assets and the issuance of shares of common stock. On an actual basis, the
Hu-Friedy acquisition contributed $60,806 and $18,725 to our consolidated net sales for the three months ended October 31, 2020 and 2019 respectively.
Pro Forma Summary of OperationsThree Months Ended
October 31, 2019
Net sales$296,454 
Net income$952 
Earnings per common share:
Basic$0.02 
Diluted$0.02