3. Acquisitions Allied Building Products Corp. On January 2, 2018 (the Closing Date), the Company completed its acquisition of all the outstanding capital stock of Allied (the Allied Acquisition), pursuant to a certain stock purchase agreement dated August 24, 2017 (the Stock Purchase Agreement), among the Company, Oldcastle, Inc., as parent, and Oldcastle Distribution, Inc., as seller, for approximately $2.625 billion in cash, subject to a working capital and certain other adjustments as set forth in the Stock Purchase Agreement (the Purchase Price). As of September 30, 2019 , the adjusted Purchase Price for Allied was $2.88 billion , including increases of (i) $ 164.0 million related to the impact of the Section 338(h)(10) election under the current U.S. tax code and (ii) $ 88.1 million from a recorded net working capital adjustment. In connection with the Allied Acquisition, on the Closing Date the Company entered into (i) a new term loan agreement with Citibank, N.A., providing for a term loan B facility with an initial commitment of $970.0 million and (ii) an amended and restated credit agreement with Wells Fargo Bank, N.A., providing for a senior secured asset-based revolving credit facility with an initial commitment of $1.30 billion. Base borrowing rates on these facilities are at LIBOR plus 1.25% and LIBOR plus 2.25%, respectively. In connection with the Allied Acquisition, on the Closing Date, the Company completed the sale of 400,000 shares of Series A Cumulative Convertible Participating Preferred Stock, par value $0.01 per share (the Preferred Stock), with an aggregate liquidation preference of $400.0 million, at a purchase price of $1,000 per share, to CD&amp;R Boulder Holdings, L.P., pursuant to an investment agreement, dated as of August 24, 2017, with CD&amp;R Boulder Holdings, L.P. and Clayton, Dubilier &amp; Rice Fund IX, L.P. (solely for the purpose of limited provisions therein) (the Convertible Preferred Stock Purchase). The $400.0 million in proceeds from the Convertible Preferred Stock Purchase were used to finance, in part, the Purchase Price. The Preferred Stock is convertible perpetual participating preferred stock of the Company, and conversion of the Preferred Stock into $0.01 par value shares of the Companys common stock will be at a conversion price of $41.26 per share. The Preferred Stock accumulates dividends at a rate of 6.0% per annum (payable in cash or in-kind, subject to certain conditions). The Preferred Stock is not mandatorily redeemable; therefore, it is classified as mezzanine equity on the Companys consolidated balance sheets and has a balance of $399.2 million (the $400.0 million proceeds received on the Closing Date, net of $0.8 million of unamortized issuance costs) as of September 30, 2019. Allieds results of operations have been included with Companys consolidated results beginning January 2, 2018. Allied distributed products in 208 locations across 31 states as of the date of the close. The Allied Acquisition has been accounted for as a business combination in accordance with the requirements of ASC 805,  Business Combinations . The acquisition price has been allocated among assets acquired and liabilities assumed at fair value based on information currently available, with the excess recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies from the Allied assembled workforce operating the branches as part of a larger network and the value stemming from the addition of both new customers and an established new line of business (interiors). As of March 31, 2019, the Company had finalized the purchase accounting entries for the Allied Acquisition, detailed as follows (in thousands): January 2, 2018 January 2, 2018 (as reported at March 31, 2018) Adjustments (as adjusted at March 31, 2019) Cash $ 19,322 $ (19,153 ) $ 169 Accounts receivable 315,485 22,064 337,549 Inventory 322,705 (7,920 ) 314,785 Prepaid and other current assets 59,279 16,161 75,440 Property, plant, and equipment 139,528 (168 ) 139,360 Goodwill 1,130,635 102,145 1,232,780 Intangible assets 1,037,000 - 1,037,000 Current liabilities (271,252 ) 11,963 (259,289 ) Non-current liabilities (6,820 ) 6,097 (723 ) Total purchase price $ 2,745,882 $ 131,189 $ 2,877,071 The purchase accounting entries above include the impact of the Section 338(h)(10) election under the current U.S. tax code. The Company made this election on October 15, 2018 and has reflected the $164.0 million impact of this election in the purchase price and its fiscal year 2018 tax provision accordingly. The Company determined that $1.10 billion of goodwill related to the acquisition of Allied remains deductible for tax purposes as of September 30, 2019. All of the Companys goodwill and indefinite-lived trade name are tested for impairment annually, and all acquired goodwill and intangible assets are subject to review for impairment should future indicators of impairment develop. There were no material contingencies assumed as part of the Allied Acquisition. Additional Acquisitions  Fiscal Year 2018 During fiscal year 2018, the Company acquired 7 branches from the following two acquisitions:  On May 1, 2018, the Company acquired Tri-State Builders Supply, a wholesale supplier of roofing, siding, windows, doors and related building products with 1 branch located in Duluth, Minnesota and annual sales of approximately $6 million. The Company has finalized the acquisition accounting entries for this transaction.  On July 16, 2018, the Company acquired Atlas Supply, Inc., the Pacific Northwests leading distributor of sealants, coatings, adhesives and related waterproofing products, with 6 branches operating in Seattle, Tacoma, Spokane, and Mountlake Terrace in Washington, as well as locations in Portland, Oregon and Boise, Idaho, and annual sales of approximately $37 million. The Company has finalized the acquisition accounting entries for this transaction. The Company has recorded purchase accounting entries for these transactions that recognized the acquired assets and liabilities at their estimated fair values as of the respective acquisition dates. These transactions resulted in goodwill of $7.6 million ($7.0 million of which remains deductible for tax purposes as of September 30, 2019) and $11.4 million in intangible assets. Additional Acquisitions  Fiscal Year 2017 During fiscal year 2017, the Company acquired 23 branches from the following five acquisitions:  On December 16, 2016, the Company purchased certain assets of BJ Supply Company, a distributor of roofing and related building products with 1 branch serving Pennsylvania and New Jersey and annual sales of approximately $4 million. The Company has finalized the acquisition accounting entries for this transaction.  On January 3, 2017, the Company acquired American Building &amp; Roofing, Inc., a distributor of mainly residential roofing and related building products with 7 branches around Washington State and annual sales of approximately $36 million. The Company has finalized the acquisition accounting entries for this transaction.  On January 9, 2017, the Company acquired Eco Insulation Supply, a distributor of insulation and related accessories with 1 branch serving Connecticut, Southern New England and the New York City metropolitan area and annual sales of approximately $8 million. The Company has finalized the acquisition accounting entries for this transaction.  On March 1, 2017, the Company acquired Acme Building Materials, Inc., a distributor of residential roofing and related building products with 3 branches in Eastern Michigan and annual sales of approximately $13 million. The Company has finalized the acquisition accounting entries for this transaction.  On May 1, 2017, the Company purchased certain assets of Lowrys Inc., a distributor of waterproofing and concrete restoration materials with 11 branches operating in California, Arizona, Utah and Hawaii and annual sales of approximately $76 million. The Company has finalized the acquisition accounting entries for this transaction. The Company has recorded purchase accounting entries for these transactions that recognized the acquired assets and liabilities at their estimated fair values as of the respective acquisition dates. These transactions resulted goodwill of $53.0 million (all of which is deductible for tax purposes) and $47.4 million in intangible assets.