Note 6. Acquisitions RPC Photonics, Inc. Acquisition On October 30, 2018 (RPC Close Date), the Company acquired all of the equity interest of RPC Photonics, Inc. (RPC) for approximately $33.4 million in cash and an additional earn-out of up to $53.0 million in cash based on the achievement of certain gross profit targets over approximately a four year period, subsequent to the RPC Close date. The $33.4 million cash consideration is subject to final cash and net working capital adjustments and includes Escrow payments of $3.5 million , which are reserved for potential breaches of representations and warranties. The acquisition of RPC expands the Companys 3D Sensing offerings. The RPC acquisition meets the definition of a business and the acquisition has been accounted for in accordance with the authoritative guidance on business combination. Accordingly, the tangible and intangible assets acquired, and the liabilities assumed are recorded at fair value on the acquisition date. Acquisition related costs incurred were not material. The fair value of consideration transferred for the RPC acquisition consists of the following (in millions) : Cash consideration paid at closing $ 29.9 Escrow payments 3.5 Fair value of contingent consideration 36.2 Total purchase consideration $ 69.6 The fair value of the earn-out payments at the RPC Close Date was determined by applying a risk-neutral framework using a Monte Carlo Simulation, which includes inputs that are not observable in the market, and therefore represents a Level 3 measurement. The fair value of this earn-out is discussed further in "Note 8. Investment, Forward Contracts and Fair Value Measurements". The preliminary identified tangible and intangible assets acquired, as of the RPC Close Date, were as follows (in millions) : Tangible assets acquired: $ 5.7 Intangible assets acquired: Developed technology 15.7 Customer relationships 14.0 Customer backlog 0.3 Goodwill 33.9 Total consideration transferred $ 69.6 The preliminary allocation of the purchase price to tangible assets, based on the estimated fair values of assets acquired and liabilities assumed on the RPC Close Date, were as follows (in millions) : Cash $ 1.8 Other current assets 1.8 Property and equipment 2.6 Total liabilities (0.5 ) Net tangible assets acquired $ 5.7 The allocation of the purchase price was based upon a preliminary valuation, and our estimates and assumptions are subject to refinement, and final cash and net working capital adjustments within the measurement period (up to one year from the RPC Close Date). Adjustments to the purchase price allocation may require prospective adjustments to goodwill. Acquired intangible assets are classified as Level 3 assets for which fair value is derived from a valuation based on inputs that are unobservable and significant to the overall fair value measurement. The fair values of acquired customer relationships and developed technology were determined based on the excess earnings method and relief from royalty method, respectively, variations of the income approach. The intangible assets are being amortized over their estimated useful lives that range from six to seven years. Customer backlog will be fully amortized within one year. Goodwill arising from this acquisition is primarily attributed to sales of future products and services of RPC. Goodwill has been assigned to the OSP segment and is not deductible for tax purposes. Results of operations of RPC have been included in the Companys Consolidated Financial Statements subsequent to the date of acquisition. Proforma or historical post-acquisition results of operations have not been presented because the effect of the acquisition was not material to prior period financial statements. AvComm and Wireless Test and Measurement Acquisition On March 15, 2018 (  AW Close Date  ), the Company completed the acquisition of the AW Business of Cobham plc. (AW) for $469.8 million in cash, subject to working capital adjustments. The acquisition further strengthens the Companys competitive position in 5G deployment and diversifies the Company into military, public safety and avionics test markets. The acquired business has been integrated into the Company's NE segment. The Company accounted for the transaction in accordance with the authoritative guidance on business combinations; therefore, the tangible and intangible assets acquired and liabilities assumed are recorded at fair value on the acquisition date. Total identified tangible and intangible assets acquired, as of the AW Close Date, were as follows (in millions) : Tangible assets acquired: $ 59.3 Intangible assets acquired: Developed technology 113.5 Customer relationships 75.0 Trade names 28.0 In-process research and development 9.0 Customer Backlog 6.5 Goodwill 178.5 Total consideration transferred $ 469.8 The preliminary allocation of the purchase price to tangible assets, based on the estimated fair values of assets acquired and liabilities assumed on the AW Close Date, were as follows (in millions) : Cash $ 16.1 Accounts receivable 43.0 Inventory 33.5 Property and equipment 33.5 Other assets 7.6 Accounts payable (10.9 ) Other liabilities (29.6 ) Deferred revenue (10.2 ) Deferred tax liabilities (23.7 ) Net tangible assets acquired $ 59.3 The allocation of the purchase price was based upon a preliminary valuation, and our estimates and assumptions are subject to refinement, final cash and working capital adjustments within the measurement period (up to one year from the AW Close Date). Adjustments to the purchase price allocation may require adjustments to goodwill prospectively. Acquired intangible assets are classified as Level 3 assets for which fair value is derived from a valuation based on inputs that are unobservable and significant to the overall fair value measurement. The fair value of acquired developed technology, customer relationships, trade names, acquired in-process research and development ( IPR&amp;D ) and backlog was determined based on an income approach using the discounted cash flow method. The intangible assets, except IPR&amp;D , are being amortized over their estimated useful lives that range from three to six years. Order backlog will be fully amortized within one year. In accordance with authoritative guidance, the Company recognizes IPR&amp;D at fair value as of March 15, 2018. The IPR&amp;D is accounted for as an indefinite-lived intangible asset until completion or abandonment of the R&amp;D efforts and is tested for impairment in each period it is considered an indefinite lived asset. Goodwill arising from this acquisition is primarily attributed to sales of future products and services and the assembled workforce of AW. Goodwill has been assigned to the NE segment and is partially deductible for tax purposes. During the six months ended December 29, 2018 , the Company recorded a measurement period adjustment of $6.3 million for a tax related liability, which resulted in a corresponding increase to acquired goodwill. AW results of operations have been included in the Companys Consolidated Financial Statements subsequent to the date of acquisition.