Acquisitions - Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents a summary of the fair value of the assets acquired and liabilities assumed in the SEI franchisee acquisition:

(In Thousands)	Final Amounts Recognized as of Acquisition Date
Purchase Price	$	140,000
Settlement of Pre-existing Accounts Receivable SEI owed Aaron's, Inc.	3,452
Reimbursement for Insurance Costs	(100		)
Working Capital Adjustment	188
Consideration Transferred	143,540
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash and Cash Equivalents	34
Receivables	1,345
Lease Merchandise	40,941
Property, Plant and Equipment	8,832
Other Intangibles1	13,779
Prepaid Expenses and Other Assets	440
Total Identifiable Assets Acquired	65,371
Accounts Payable and Accrued Expenses	(6,698		)
Customer Deposits and Advance Payments	(2,500		)
Capital Leases	(4,514		)
Total Liabilities Assumed	(13,712		)
Goodwill2	91,881
Net Assets Acquired	$	51,659

¹ Identifiable intangible assets are further disaggregated in the table set forth below.

² 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.

The following table presents summaries of the preliminary fair value of the assets acquired and liabilities assumed in the franchisee acquisitions as of the respective acquisition dates:

(in Thousands)	Amounts Recognized as of Acquisition Dates			Measurement Period Adjustments1			Amounts Recognized as of Acquisition Date (as adjusted)
Purchase Price	$	189,826		$	—		$	189,826
Add: Settlement of Pre-existing Relationship	5,405			—			5,405
Less: Working Capital Adjustments	241			(86		)	155
Aggregated Consideration Transferred	195,472			(86		)	195,386
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash and Cash Equivalents	43			—			43
Lease Merchandise	59,587			29			59,616
Property, Plant and Equipment	5,493			75			5,568
Other Intangibles2	25,069			(539		)	24,530
Prepaid Expenses and Other Assets	1,060			108			1,168
Total Identifiable Assets Acquired	91,252			(327		)	90,925
Accounts Payable and Accrued Expenses	(826		)	(26		)	(852		)
Customer Deposits and Advance Payments	(5,156		)	—			(5,156		)
Total Liabilities Assumed	(5,982		)	(26		)	(6,008		)
Goodwill3	110,202			267			110,469
Net Assets Acquired (before Goodwill)	$	85,270		$	(353	)	$	84,917

¹ The acquisition accounting adjustments relate to finalizing information that existed as of the acquisition date regarding the valuation of certain intangible assets and lease merchandise and obtaining additional information regarding acquired other assets.

² Identifiable intangible assets are further disaggregated in the table set forth below.

³ The total goodwill recognized in conjunction with the franchisee acquisitions, 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	2,154		1.0
Customer Relationships	3,215		2.0
Reacquired Franchise Rights	3,640		4.1
Favorable Operating Leases	3,526		11.3
Total Acquired Intangible Assets1	$	13,779

¹ Acquired definite-lived intangible assets have a total weighted average life of 5.1 years.

The estimated intangible assets attributable to the franchisee acquisitions are comprised of the following:

	Fair Value (in thousands)		Weighted Average Useful Life (in years)
Non-compete Agreements	$	1,872	3.0
Customer Contracts	7,864		1.0
Customer Relationships	10,131		3.0
Reacquired Franchise Rights	4,663		3.9
Total Acquired Intangible Assets1	$	24,530

¹ Acquired definite-lived intangible assets have a total weighted average life of 2.5 years.