2. Business Combination On July 27, 2018, the Company completed the acquisition of 100% of Ameron Water Transmission Group, LLC for a purchase price of $38.1 million in cash. The results of Amerons operations have been included in the consolidated financial statements since that date. Ameron was a major supplier of engineered welded steel pressure pipe and reinforced concrete pipe. In addition to strengthening the Company's position in the water infrastructure market, this acquisition expanded the Companys bar-wrapped concrete cylinder pipe capabilities and added reinforced concrete pipe and T-Lock  a proprietary polyvinyl chloride (PVC) lining for concrete pipe sewer applicationsto the Companys product portfolio. In connection with the acquisition, the Company acquired pipe facilities in Tracy, California and San Luis Rio Colorado, Mexico, as well as protective lining equipment in Brea, California. The following table summarizes the purchase consideration and fair value of the assets acquired and liabilities assumed as of July 27, 2018 (in thousands): Assets Cash and cash equivalents $ 912 Trade and other receivables 8,887 Contract assets 12,018 Inventories 7,937 Prepaid expenses and other 3,777 Property and equipment 34,827 Other assets 320 Total assets acquired 68,678 Liabilities Accounts payable 5,520 Accrued liabilities 1,599 Contract liabilities 123 Deferred income taxes 3,221 Total liabilities assumed 10,463 Bargain purchase gain (20,080 ) Total purchase consideration $ 38,135 The Company recorded no measurement period adjustments during the three and nine months ended September 30, 2019. As a result of additional information obtained about facts and circumstances that existed as of the acquisition date, the Company recorded measurement period adjustments during the fourth quarter of 2018, which resulted in a net decrease of the bargain purchase gain of $1.8 million. The adjustments primarily included reclassifications between balance sheet categories and a $2.0 million reduction in inventories. The excess of the aggregate net fair value of assets acquired and liabilities assumed over the fair value of consideration transferred as the purchase price has been recorded as a bargain purchase gain. When it became apparent there was a potential for a bargain purchase gain, management reviewed the Ameron assets acquired and liabilities assumed as well as the assumptions utilized in estimating their fair values. Upon completion of this reassessment, the Company concluded that recording a bargain purchase gain with respect to Ameron was appropriate and required under U.S. GAAP. The Company believes the seller was motivated to complete the transaction as part of an overall repositioning of its business. The Company incurred costs associated with this acquisition of $1.9 million and $2.0 million during the three and nine months ended September 30, 2018. These costs are included in Selling, general, and administrative expense in the Condensed Consolidated Statements of Operations. The following unaudited pro forma summary presents the consolidated results of the Company as if the acquisition of Ameron had occurred on January 1 of the year prior to the acquisition (in thousands): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Net sales $ 57,250 $ 142,969 Net income (loss) 6,822 (18,059 ) This unaudited pro forma consolidated financial data is included only for the purpose of illustration and does not necessarily indicate what the operating results would have been if the acquisition had occurred on January 1 of the year prior to the acquisition. Moreover, this information is not indicative of what the Companys future operating results will be. The information prior to the acquisition is included based on prior accounting records maintained by Ameron. The pro forma amounts have been calculated after applying the Companys accounting policies and adjusting the results of Ameron to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property and equipment and intangible assets had been applied on January 1 of the year prior to the acquisition, and the consequential tax effects. Aside from revising the 2018 net income for the effect of the bargain purchase gain, there were no material, non-recurring adjustments to this unaudited pro forma information.