Company: KEQU
Filing Date: 2025-07-02
Form Type: 10-K
Source: 0000055529-25-000026
Chunk: 244

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-07-02
Form: 10-K
Item: Item 8
Chunk 244
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angible assets18,600 — 18,600 Goodwill14,150 (1,663)12,487 Right of use assets7,376 — 7,376 Other assets7 — 7 Total assets acquired73,973 115 74,088 Liabilities assumed:Current portion of operating lease liabilities(965)— (965)Accounts payable(4,318)— (4,318)Employee compensation and amounts withheld(2,642)— (2,642)Deferred revenue(935)— (935)Other accrued expenses(1,591)— (1,591)Long-term portion of operating lease liabilities(5,167)— (5,167)Deferred income taxes(5,375)(115)(5,490)Total liabilities assumed(20,993)(115)(21,108)Preliminary aggregate acquisition consideration$52,980 $— $52,980 During the year ended April 30, 2025, the Company recorded a $1.8 million measurement period adjustment to increase inventory as a result of revised capitalized variances related to work-in-progress as of the acquisition date, with a corresponding decrease to Goodwill, net of the tax impact. The net effect of these adjustments would have resulted in an insignificant decrease in cost of products sold recorded during the year ended April 30, 2025. The measurement period adjustments were recorded in our consolidated financial statements as of and for the year ended April 30, 2025.The above fair values of assets acquired and liabilities assumed are preliminary and are based on the information that was available as of the reporting date. The fair values of the assets acquired and liabilities assumed were preliminarily determined using the income and cost approaches. In many cases, the determination of the fair values required estimates about discount rates, future expected cash flows and other future events that are judgmental and subject to change. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in ASC 820, Fair Value Measurements. Intangible assets consisting of customer relationships, trade names and trademarks, and developed technology were valued using the MEEM method, or the RFR method, both are income-based approaches. A cost approach was applied for property, plant, and equipment.•Customer relationship intangible assets were valued using the MEEM method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue