Note

Carousel:

On Carousel Acquisition, LLC, a wholly-owned subsidiary of the Company, acquired substantially all of the assets of Carousel Designs, LLC (“OLDCO”), a privately held manufacturer and online retailer of premium infant and toddler bedding and nursery décor based in Douglasville, Georgia. On Carousel Acquisition, LLC changed its name to Carousel Designs, LLC (“Carousel”), OLDCO having relinquished its rights to that name as part of the terms of the acquisition transaction (the “Carousel Acquisition”).

, including administrative and capital efficiencies, be achieved as a result of the Company’s control of the combined assets and that the Company will benefit from the direct-to-consumer opportunities that will result from the Carousel Acquisition. Carousel paid an acquisition cost of million from cash on hand and assumed certain specified liabilities relating to the business. Carousel also recognized as expense and of costs associated with the acquisition during the and -month periods ended respectively, which is included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of income.

SB ASC Topic The Company is currently determining the allocation of the acquisition cost with the assistance of an independent party. The identifiable assets acquired were recorded at their estimated fair value, which has been preliminarily determined based on available information and the use of multiple valuation approaches. The estimated useful lives of the identifiable intangible assets acquired was determined based upon the remaining time that these assets are expected to directly or indirectly contribute to the future cash flow of the Company. Certain data necessary to complete the acquisition cost allocation is yet available, including, but limited to, the valuation of pre-acquisition contingencies and the final appraisals and valuations of assets acquired and liabilities assumed.

following table represents the Company’s preliminary allocation of the acquisition cost (in thousands) to the identifiable assets acquired and the liabilities assumed based on their respective estimated fair values as of the acquisition date. The excess of the acquisition cost over the estimated fair value of the identifiable net assets acquired is reflected as goodwill.

12

acquisition date, during which time the values of the assets acquired and liabilities assumed, including the goodwill, need to be revised as appropriate.

$845,000

$5.4

$1.

million and million of infant and toddler bedding, blankets and accessories during the -month period ended and during the period from the acquisition date through respectively. Carousel recorded amortization expense associated with the acquired amortizable intangible assets in the amount of and during the -month period ended and during the period from the acquisition date through respectively, which is included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of income. Amortization is computed for the acquired amortizable intangible assets using the straight-line method over the estimated useful lives of the assets, which are years for the Tradename, years for the Developed technology, years for the Non-compete agreements and years on a weighted-average basis for the grouping taken together.

S

On Hamco, Inc. (“Hamco”), a wholly-owned subsidiary of the Company, acquired certain assets associated with the Sassy®-branded developmental toy, feeding and baby care product line from Sassy LLC and assumed certain related liabilities (the “Sassy Acquisition”).

may

’s acquisition of the Sassy product line and that the Company will benefit from the added diversity to the Company’s portfolio of products. The Company further anticipates that the Sassy Acquisition will strengthen the Company’s overall position in the infant and juvenile products market. Hamco paid an acquisition cost of million from a combination of cash on hand and the revolving line of credit. Hamco also recognized as expense of costs associated with the acquisition during each of the and -month periods ended which is included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of income.

Sassy Acquisition has been accounted for as a business combination in accordance with FA

SB ASC Topic With the assistance of an independent party, the Company has used preliminary inputs to prepare an allocation of the acquisition cost. The identifiable assets acquired were recorded at their estimated fair value, which has been preliminarily determined based on available information and the use of multiple valuation approaches. Certain data necessary to complete the acquisition cost allocation is yet available, including, but limited to, the valuation of pre-acquisition contingencies and the final appraisals and valuations of assets acquired and liabilities assumed.

’s preliminary allocation of the acquisition cost (in thousands) to the identifiable assets acquired and the liabilities assumed based on their respective estimated fair values as of the acquisition date. The excess of the acquisition cost over the estimated fair value of the identifiable net assets acquired is reflected as goodwill.

-month period following the acquisition date, during which time the values of the assets acquired and liabilities assumed, including the goodwill, need to be revised as appropriate.

of goodwill, the entirety of which has been assigned to the reporting unit of the Company that produces and markets infant and toddler bibs, developmental toys, bath care and disposable products, and the entirety of which is expected to be deductible for income tax purposes. The Sassy Acquisition resulted in net sales of of

developmental toy, feeding and baby care products

during the period from the acquisition date through