Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2013

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Acquisitions and Dispositions

NOTE 2: ACQUISITIONS AND DISPOSITIONS

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 years ended December 31:

(In Thousands, except for store data)	2013			2012		2011
Number of stores acquired, net	10			22		52
Aggregate purchase price (primarily cash consideration)	$	10,898		$	31,617	$	41,425
Purchase price allocation:
Lease Merchandise	4,016			11,936		13,385
Property, Plant and Equipment	467			739		500
Other Current Assets and Current Liabilities	(228		)	38		34
Identifiable Intangible Assets1:
Customer Relationships	557			1,725		2,675
Non-Compete Agreements	405			1,201		1,688
Acquired Franchise Development Rights	252			764		255
Goodwill2	5,429			15,214		22,888

¹ The weighted-average amortization period for the Company’s acquired intangible assets was 2.9 years, 3.1 years and 2.6 years in 2013, 2012 and 2011, respectively. The weighted-average amortization period by major intangible asset class for acquisitions completed during 2013, 2012 and 2011 was 2 years for customer relationships, 3 years for non-compete agreements and a range of 4.9 years to 6.9 years for acquired franchise development rights.

² Goodwill recognized from acquisitions primarily relates to the future strategic benefits expected to be realized upon integrating the business. All goodwill resulting from the Company’s 2013, 2012 and 2011 acquisitions is expected to be deductible for tax purposes.

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 2013, 2012 and 2011 consolidated financial statements was not significant. The purchase price allocations related to current year acquisitions are tentative and preliminary.

Dispositions

The Company periodically sells sales and lease ownership stores to franchisees and third-party operators. The Company sold two, three and 25 of its Aaron’s Sales and Lease Ownership stores in 2013, 2012 and 2011, respectively. The effect of these sales on the consolidated financial statements was not significant.

The Company began ceasing the operations of the Aaron’s Office Furniture division in June of 2010. The Company closed 14 of its Aaron’s Office Furniture stores during 2010 and sold the remaining store in August 2012. There were no significant charges related to the closure of this division in 2013, 2012 or 2011.