Acquisitions

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

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 three months ended March 31, 2014 and 2013:

(In Thousands, except for store data)	2014			2013
Number of stores acquired, net	1			1
Aggregate purchase price (primarily cash consideration)	$	960		$	1,295
Purchase price allocation:
Lease Merchandise	431			608
Property, Plant and Equipment	102			66
Other Current Assets and Current Liabilities	(8		)	(15		)
Identifiable Intangible Assets1
Customer Relationships	53			82
Non-Compete Agreements	44			59
Acquired Franchise Development Rights	6			24
Goodwill2	332			471

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 2014 and 2013 acquisitions is expected to be deductible for tax purposes. During the three months ended March 31, 2014, goodwill of approximately $332,000 was assigned to the Company’s Sales and Lease Ownership operating segment. During the three months ended March 31, 2013, goodwill of approximately $471,000 was assigned to the Company’s Sales and Lease Ownership.

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 three months ended March 31, 2014 and 2013:

(In Thousands, except for store data)	2014			2013
Number of stores acquired, net	1			1
Aggregate purchase price (primarily cash consideration)	$	960		$	1,295
Purchase price allocation:
Lease Merchandise	431			608
Property, Plant and Equipment	102			66
Other Current Assets and Current Liabilities	(8		)	(15		)
Identifiable Intangible Assets1
Customer Relationships	53			82
Non-Compete Agreements	44			59
Acquired Franchise Development Rights	6			24
Goodwill2	332			471

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 2014 and 2013 acquisitions is expected to be deductible for tax purposes. During the three months ended March 31, 2014, goodwill of approximately $332,000 was assigned to the Company’s Sales and Lease Ownership operating segment. During the three months ended March 31, 2013, goodwill of approximately $471,000 was assigned to the Company’s Sales and Lease Ownership.

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 three months ended March 31, 2014 and 2013 was not significant. The valuation and acquisition accounting related to current year transactions is tentative and preliminary. The Company anticipates finalizing the valuation and acquisition accounting prior to December 31, 2014.

In addition, the Company completed a material acquisition after the end of the first quarter 2014. See Note 8 to these consolidated financial statements.