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BUSINESS COMBINATIONS
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Sep. 30, 2014
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| BUSINESS COMBINATIONS | Ìý | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BUSINESS COMBINATIONS |
3. BUSINESS COMBINATIONS ROCKWOOD ACQUISITION ÌýÌýÌýÌýÌýÌýÌýÌýOn OctoberÌý1, 2014, we completed the Rockwood Acquisition and paid $1.04Ìýbillion in cash, subject to certain purchase price adjustments, and assumed certain unfunded pension liabilities in connection with the Rockwood Acquisition. For more information, see "NoteÌý1. Generalâ€�Recent Developmentsâ€�Rockwood Acquisition." The majority of the acquired businesses will be integrated into our Pigments segment. Transaction costs charged to expense related to this acquisition were $10Ìýmillion for the nine months ended SeptemberÌý30, 2014 and were recorded in selling, general and administrative expenses in our condensed consolidated statements of operations (unaudited). ÌýÌýÌýÌýÌýÌýÌýÌýWe have accounted for the Rockwood Acquisition using the acquisition method. As such, we analyzed the fair value of tangible and intangible assets acquired and liabilities assumed. The preliminary allocation of acquisition cost to the assets acquired and liabilities assumed is summarized as follows (dollars in millions):
ÌýÌýÌýÌýÌýÌýÌýÌýThe acquisition cost allocation is preliminary pending final determination of the fair value of assets acquired and liabilities assumed, including final valuation of property, plant and equipment and intangible assets. For purposes of this preliminary allocation of fair value, we have assigned any excess of the acquisition cost of historical carrying values to property, plant and equipment and no amounts have been allocated to goodwill. It is possible that changes to this allocation could occur. The estimated pro forma revenues and earnings information for the three and nine months ended SeptemberÌý30, 2014 and 2013 has not been provided as that information is not yet available. OXID ACQUISITION ÌýÌýÌýÌýÌýÌýÌýÌýOn AugustÌý29, 2013, we completed the acquisition of the chemical business of OxidÌýL.P. (the "Oxid Acquisition"), a privately-held manufacturer and marketer of specialty urethane polyols based in Houston, Texas. The acquisition cost of approximately $76Ìýmillion consists of cash payments of approximately $66Ìýmillion and contingent consideration of $10Ìýmillion. The contingent consideration relates to an earn-out agreement which will be paid over two years if certain conditions are met. Related to this earn-out agreement, $6Ìýmillion was paid during the nine months ended SeptemberÌý30, 2014. The acquired business has been integrated into our Polyurethanes segment. Transaction costs charged to expense related to this acquisition were not significant. ÌýÌýÌýÌýÌýÌýÌýÌýWe have accounted for the Oxid Acquisition using the acquisition method. As such, we analyzed the fair value of tangible and intangible assets acquired and liabilities assumed. The allocation of acquisition cost to the assets acquired and liabilities assumed is summarized as follows (dollars in millions):
ÌýÌýÌýÌýÌýÌýÌýÌýIntangible assets acquired consist primarily of developed technology and customer relationships, both of which will be amortized over 15Ìýyears. If the Oxid Acquisition were to have occurred on JanuaryÌý1, 2013, the following estimated pro forma revenues and net income attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International would have been reported (dollars in millions): ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation
ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International
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