Note 3. Acquisitions: We periodically complete business combinations that align with our business strategy. Acquisitions are accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at fair value as of the acquisition date and the results of operations of each acquired business are included in our consolidated statements of comprehensive income from their respective dates of acquisition. Acquisition costs are recorded in selling, general and administrative expenses as incurred. Space Import-Export, Srl On July 1, 2016 Bio-Techne acquired all the outstanding stock of Space Import-Export, Srl (Space) of Milan, Italy for the equivalent of approximately $9 million. $6.7 million was paid on the acquisition date and the remaining $2.3 million will be paid on July 1, 2017. Space was a long-time distribution partner of Bio-Techne in the Italian market. The acquisition resulted in goodwill as we expect strategic benefits of revenue growth from increased market penetration . The goodwill is not deductible for income tax purposes. The business became part of the Companys Biotechnology reportable segment in the first quarter of 2017. Certain estimated fair values are not yet finalized and are subject to change, which could be significant. The Company expects to finalize these by the filing of the 2017 Form 10 -K when our valuation models for acquired intangible assets are completed, including the determination of related estimated useful lives. Amounts for intangible assets, and related deferred tax liabilities, and goodwill remain subject to change. The preliminary estimated fair values of the assets acquired and liabilities assumed in each acquisition, pending final valuation of intangible assets, are as follows (in thousands): Space Current assets, net of cash $ 2,127 Equipment 159 Intangible assets: Customer relationships 6,769 Goodwill 3,100 Total assets acquired 12,155 Liabilities 1,444 Deferred income taxes, net 1,708 Net