2019 BBNC Annual Report | Page 57

RECOGNIZED AMOUNTS OF IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED: Accounts receivable $ Property, plant, and equipment 1,398 398 Intangible assets: Customer relationships (amortized over 10 years) 4,581 Noncompete agreements (amortized over 6 years) 861 Trade name (amortized over 15 years) 1,148 Total identifiable net assets assumed 8,386 Goodwill 132 $ TOTAL 8,518 Goodwill consists of an assembled workforce and synergies and those cost reductions. Goodwill from this acquisition is tax deductible. The Corporation incurred insignificant acquisition related costs. Panhandle Power Solutions, LLC’s operating results from the date of acquisition are included in the consolidated statement of operations in the Construction line of business. (B) ENVIRONMENTAL RESOURCE SOLUTIONS, INC. In November 2018, the Corporation acquired 100% of Environmental Resource Solutions, Inc., a construction company. The following table summarizes the consideration paid for Environmental Resource Solutions, Inc. and the amounts of estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): CONSIDERATION: Cash $ Holdback payable 1,457 420 Contingent consideration arrangement 1,120 2,997 FAIR VALUE OF TOTAL CONSIDERATION TRANSFERRED RECOGNIZED AMOUNTS OF IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED: Accounts receivable $ Property, plant, and equipment 583 171 Intangible assets: Customer relationships (amortized over 10 years) 1,272 Accounts payable (149) Total identifiable net assets assumed 1,877 Goodwill 1,120 TOTAL $ 2,997 Goodwill consists of an assembled workforce and synergies and those cost reductions. Goodwill from this acquisition is tax deductible. The Corporation incurred insignificant acquisition related costs. Environmental Resource Solutions, Inc.’s operating results from the date of acquisition are included in the consolidated statement of operations in the Construction line of business. M anagement ' s D iscussion and A nalysis 55