|6 Months Ended|
Jun. 30, 2022
13. BUSINESS COMBINATIONS
Acquiring businesses is a key part of our ongoing strategy to grow our company and expand our market share. Each acquisition has been accounted for as a business combination under ASC 805, “Business Combinations.” Acquisition related costs for the six months ended June 30, 2022 and 2021 were $1.3 million and $0.7 million, respectively. Acquisition related costs are included in selling, general, and administrative expense in our condensed consolidated statements of operations.
The table below provides a summary as of June 30, 2022 for the businesses acquired during the six months ended June 30, 2022:
The table below provides a summary as of June 30, 2022 for the businesses acquired during the six months ended June 30, 2021:
As third-party or internal valuations are finalized, certain tax aspects of the foregoing transactions are completed, and customer post-closing reviews are concluded, adjustments may be made to the fair value of assets acquired, and in some cases total purchase price, through the end of each measurement period, generally one year following the applicable acquisition date. To that note, during the six months ended June 30, 2022, DI’s goodwill increased by $8.9 million primarily as a result of purchase price adjustments to acquisition date sales and use tax liabilities, net working capital adjustments, and true-ups to supplier rebate receivables.
Primarily all of the $7.5 million and $80.0 million of goodwill recorded from acquisitions completed in the six months ended June 30, 2022 and 2021, respectively, is expected to be deductible for income tax purposes.
The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef