Acquisitions (Tables)

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table reconciles the total estimated purchase price of the Company’s acquisition of Progressive:

(In Thousands)
Proceeds from Private Placement Note Issuance	$	300,000
Proceeds from Term Loan	126,250
Proceeds from Revolving Credit Facility	65,000
Cash Consideration	185,454
Deferred Cash Consideration	29,106
Estimated Purchase Price	$	705,810

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

(In Thousands)	Amounts Recognized as of Acquisition Date1			Measurement Period Adjustments2			Amounts Recognized as of Acquisition Date (as adjusted)
Estimated Purchase Price	$	705,810		$	—		$	705,810
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash and Cash Equivalents	5,810			—			5,810
Receivables3	27,581			—			27,581
Lease Merchandise2	138,198			2,987			141,185
Property, Plant and Equipment	4,010			—			4,010
Other Intangibles2, 4	333,000			(8,000		)	325,000
Prepaid Expenses and Other Assets	893			—			893
Total Identifiable Assets Acquired	509,492			(5,013		)	504,479
Accounts Payable and Accrued Expenses2	(23,342		)	(5,762		)	(29,104		)
Deferred Income Taxes Payable2	(48,298		)	(451		)	(48,749		)
Customer Deposits and Advance Payments	(10,000		)	—			(10,000		)
Total Liabilities Assumed	(81,640		)	(6,213		)	(87,853		)
Goodwill5	277,958			11,226			289,184
Net Assets Acquired	$	705,810		$	—		$	705,810

¹ As previously reported in the notes to consolidated financial statements included in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2014.

² The measurement period adjustments primarily related to the resolution of certain sales tax exposures and other tax contingencies subsequent to the acquisition date, which also impacted the fair value estimates of lease merchandise, as well as the finalization of appraisals of intangible assets by the Company’s independent consultants.

³ Receivables include $15.8 million related to the secondary escrow amount, which the Company expects to recover prior to termination of the escrow agreement 36 months from the April 14, 2014 closing date. The gross amount due under customer-related receivables acquired was $22.7 million, of which $10.9 million was expected to be uncollectible.

⁴ Identifiable intangible assets are further disaggregated in the following table.

⁵ The total goodwill recognized in conjunction with the Progressive acquisition has been assigned to the Progressive operating segment. Of the goodwill recognized as part of this acquisition, $245.8 million is expected to be deductible for tax purposes. The primary reasons the purchase price of the acquisition exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, is related to synergistic value created from the combination of Progressive’s virtual customer payment capabilities with the Company’s leading traditional lease-to-own model. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce.

The Company has made certain estimates in its acquisition accounting r

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The estimated intangible assets attributable to the Progressive acquisition are comprised of the following:

	Fair Value (in thousands)		Weighted Average Life (in years)
Internal Use Software	$	14,000	3.0
Technology	66,000		10.0
Trade Names and Trademarks	53,000		Indefinite
Customer Lease Contracts1	11,000		1.0
Merchant Relationships	181,000		12.0
Total Acquired Intangible Assets2	$	325,000

¹ During the fourth quarter of 2014, the Company recorded adjustments to the customer lease contract intangible asset previously recorded based on the finalization of appraisals by the Company’s independent consultants. The measurement period adjustment resulted in a reduction of customer lease contract intangible assets and an increase in goodwill of $8.0 million and did not have a material effect on amortization expense in the consolidated financial statements in any period presented.

² Acquired definite-lived intangible assets have a total weighted average life of 10.6 years.

Business Acquisition, Pro Forma Information

The following table presents unaudited consolidated pro forma information as if the acquisition of Progressive had occurred on January 1, 2013:

	Twelve Months Ended   December 31,
	2014				2013
(In Thousands)	As Reported		Pro Forma		As Reported		Pro Forma
Revenues	$	2,725,239	$	2,894,413	$	2,234,631	$	2,638,582
Net Earnings	78,233		86,038		120,666		105,682