Acquired Intangible Assets. The preliminary identified intangible assets comprise of customer relationship, technology and brand name intangible assets with preliminary acquisition date fair values of $39.2 million, $400 thousand, and $300 thousand, respectively. The customer relationship intangible assets have preliminary useful lives of 14 years. The brand name and technology intangible assets have preliminary useful lives of 2 to 3 years.
Acquired Intangible Assets. The acquired intangible assets and related amortization expense is based on Products Corporation’s preliminary estimate of the fair values of Xxxxxxxxx Xxxxx’x identifiable intangible assets, which are as follows: ($ in millions) For the three months ended For the year ended Acquired Intangible Assets Fair Value Estimated Useful Life March 31, 2016 March 31, 2015 December 31, 2015 Trade names, indefinite-lived $ 135.0 Indefinite $ — $ — $ — Trade names, finite-lived 14.0 15 0.2 0.2 0.9 Technology 2.5 10 0.1 0.1 0.3 Customer relationships - licensed and distributed brands 36.0 16 0.6 0.6 2.3 License agreements 18.0 20 0.2 0.2 0.9 Distribution rights 20.0 16 0.3 0.3 1.2 Total acquired intangible assets $ 319.5 Total amortization expense $ 2.9 $ 2.9 $ 11.5 Deferred Tax Liability A non-current deferred tax liability of $64.6 million was recorded against the $319.5 million estimated fair value of Xxxxxxxxx Xxxxx’x acquired intangible assets outlined in the above table. The deferred tax liabilities represent the tax effect of the difference between the estimated assigned fair value of the finite-lived intangible assets ($184.5 million) and the tax basis ($0) of such assets. The estimated amount of $64.6 million was determined by multiplying the difference of $184.5 million by Products Corporation’s statutory federal income tax rate of 35.0%. The unaudited pro forma condensed combined balance sheet as of March 31, 2016 also includes a pro forma adjustment of ($36.3 million) to deferred income taxes-noncurrent within long-term liabilities to eliminate Xxxxxxxxx Xxxxx’x deferred tax liability on its historical intangible assets.
Acquired Intangible Assets. Estimated Fair Value Estimated Useful Life Estimated Amortization Expense Customer relationships- 15 year $ 88,000 15 $ 5,867 Customer relationships- 12 year 51,200 12 4,267 Technology 4,500 10 450 Other 100 5 20 Total finite-lived acquired intangible assets 143,800 Total amortization expense $ 10,604 Indefinite -lived intangible assets 57,200 Total identified intangible assets 201,000 Goodwill 79,107 Historical intangible assets (217,870 ) Historical amortization expense (10,449 ) Pro forma intangible adjustment $ 62,237 Pro forma amortization adjustment $ 155 The detailed valuation studies necessary to arrive at the required estimates of the fair values for these assets and useful lives are not yet complete. Changes to the fair values of these assets could have a material impact on the accompanying unaudited pro forma financial statements and will also result in changes to goodwill and deferred tax liabilities.
