Acquisitions - Acquisitions (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the summary of the assets acquired and liabilities assumed as of the acquisition date, as well as the acquisition accounting adjustments. The final acquisition accounting adjustments did not have a significant effect on the consolidated statements of earnings.

(In Thousands)	Amounts Recognized as of Acquisition Date1			Acquisition Accounting Adjustments2			Amounts Recognized as of Acquisition Date (as adjusted)
Purchase Price	$	54,900		$	—		$	54,900
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash and Cash Equivalents	4,185			—			4,185
Loans Receivable3	89,186			(60		)	89,126
Receivables	45			—			45
Property, Plant and Equipment	2,754			—			2,754
Other Intangibles4	3,400			(500		)	2,900
Income Tax Receivable	728			—			728
Prepaid Expenses and Other Assets	671			—			671
Deferred Income Tax Assets	375			2,115			2,490
Total Identifiable Assets Acquired	101,344			1,555			102,899
Accounts Payable and Accrued Expenses	(1,709		)	(1,265		)	(2,974		)
Debt	(45,025		)	—			(45,025		)
Total Liabilities Assumed	(46,734		)	(1,265		)	(47,999		)
Goodwill	290			(290		)	—
Net Assets Acquired	$	54,900		$	—		$	54,900

¹ As previously reported in the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

² The acquisition accounting adjustments primarily relate to the resolution of certain income tax-related matters and contingencies that existed as of the acquisition date.

³ Contractually required amounts due at the acquisition date were $94.2 million.

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

The following table presents the summary of the preliminary estimated fair value of the assets acquired and liabilities assumed in the SEI acquisition as of the July 27, 2017 acquisition date:

(In Thousands)	Amounts Recognized as of Acquisition Date1			Acquisition Accounting Adjustments2			Amounts Recognized as of Acquisition Date (as adjusted)
Purchase Price	$	140,000		$	—		$	140,000
Settlement of Pre-existing Accounts Receivable SEI owed Aaron's, Inc.	3,452			—			3,452
Reimbursement for Insurance Costs	(100		)	—			(100		)
Working Capital Adjustment	—			188			188
Consideration Transferred	143,352			188			143,540
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash and Cash Equivalents	34			—			34
Receivables	1,448			—			1,448
Lease Merchandise	40,941			—			40,941
Property, Plant and Equipment	8,279			553			8,832
Other Intangibles3	16,472			(2,894		)	13,578
Prepaid Expenses and Other Assets	440			—			440
Total Identifiable Assets Acquired	67,614			(2,341		)	65,273
Accounts Payable and Accrued Expenses	(5,470		)	(1,064		)	(6,534		)
Customer Deposits and Advance Payments	(2,500		)	—			(2,500		)
Capital Leases	(4,630		)	116			(4,514		)
Total Liabilities Assumed	(12,600		)	(948		)	(13,548		)
Goodwill4	88,338			3,477			91,815
Net Assets Acquired	$	55,014		$	(3,289	)	$	51,725

¹ As previously reported in the notes to the condensed consolidated financial statements as of September 30, 2017.

² The acquisition accounting adjustments relate to finalizing information that existed as of the acquisition date regarding the fair value of vehicles under capital leases. Additionally, the Company obtained further information regarding the fair value of assumed favorable and unfavorable property operating leases based on comparable market terms of similar leases based on information that existed as of the acquisition date, which the Company expects to complete prior to the one year anniversary date of the acquisition.

³ Identifiable intangible assets are further disaggregated in the table set forth below.

⁴ The total goodwill recognized in conjunction with the SEI acquisition, all of which is expected to be deductible for tax purposes, has been assigned to the Aaron’s Business operating segment. The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, primarily due to synergies created from the expected future benefits to the Company’s omnichannel platform, implementation of the Company’s operational capabilities, expected inventory supply chain synergies between the Aaron’s Business and Progressive Leasing, and control of the Company’s brand name in new geographic markets. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce.

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

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

	Fair Value (in thousands)		Weighted Average Life (in years)
Non-compete Agreements	$	1,244	5.0
Customer Lease Contracts	2,130		1.0
Customer Relationships	3,176		2.0
Reacquired Franchise Rights	3,640		4.1
Favorable Operating Leases	3,388		8.5
Total Acquired Intangible Assets1	$	13,578

¹ Acquired definite-lived intangible assets have a total weighted average life of 4.3 years.

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

	Fair Value (in thousands)		Weighted Average Life (in years)
Technology	$	2,550	5.0
Non-compete Agreements	350		5.0
Total Acquired Intangible Assets	$	2,900