XML 27 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquisitions
 9 Months Ended
Sep. 30, 2013
Acquisitions
NOTE 2.
ACQUISITIONS
The following table summarizes the Company’s acquisitions of lease contracts, merchandise and the related assets of sales and lease ownership stores, none of which was individually material to the Company’s consolidated financial statements, during the nine months ended September 30, 2013 and 2012:
 
(In Thousands, except for store data)
2013
 
2012
Number of stores acquired, net
9

 
20

Aggregate purchase price (primarily cash consideration)
$
10,469

 
$
28,375

Purchase price allocation:
 
 
 
Lease Merchandise
3,687

 
10,717

Property, Plant and Equipment
710

 
739

Other Current Assets and Current Liabilities
(212
)
 
5

Identifiable Intangible Assets1
 
 
 
Customer Relationships
506

 
1,543

Non-Compete Agreements
389

 
1,079

Acquired Franchise Development Rights
232

 
708

Goodwill2
5,157

 
13,584


1
The Company amortizes customer relationship intangible assets on a straight-line basis over a two-year estimated useful life. The Company amortizes non-compete intangible assets on a straight-line basis over a three-year estimated useful life. The Company amortizes acquired franchise development rights on a straight-line basis over the unexpired life of the franchisee’s ten year area development agreement.

2  
Goodwill recognized from acquisitions primarily relates to the future strategic benefits expected to be realized upon integrating the businesses. All goodwill resulting from the Company’s 2013 and 2012 acquisitions is expected to be deductible for tax purposes. During the nine months ended September 30, 2013, goodwill of approximately $5.2 million was assigned to the Company’s Sales and Lease Ownership operating segment. During the nine months ended September 30, 2012, goodwill of approximately $12.8 million and $687,000 was assigned to the Company’s Sales and Lease Ownership and HomeSmart operating segments, respectively.
Acquisitions have been accounted for as business combinations, and the results of operations of the acquired businesses are included in the Company’s results of operations from their dates of acquisition. The effect of these acquisitions on the consolidated financial statements for the nine months ended September 30, 2013 and 2012 was not significant. The purchase price allocations related to current year acquisitions are tentative and preliminary. The Company anticipates finalizing the purchase price allocations prior to December 31, 2013.