Acquisitions (Tables)

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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 (as of March 31, 2019)1			Acquisition Accounting Adjustments			Amounts Recognized as of Acquisition Dates (as of June 30, 2019)
Purchase Price	$	189,826		$	341		$	190,167
Add: Settlement of Pre-existing Relationship	5,405			—			5,405
Less: Working Capital Adjustments	155			—			155
Aggregate Consideration Transferred	195,386			341			195,727
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash and Cash Equivalents	50			—			50
Lease Merchandise	59,616			—			59,616
Property, Plant and Equipment	5,568			—			5,568
Operating Lease Right-of-Use Assets	—			—			—
Other Intangibles2	24,498			—			24,498
Prepaid Expenses and Other Assets	1,206			—			1,206
Total Identifiable Assets Acquired	90,938			—			90,938
Accounts Payable and Accrued Expenses	(910		)	(67		)	(977		)
Customer Deposits and Advance Payments	(5,156		)	—			(5,156		)
Total Liabilities Assumed	(6,066		)	(67		)	(6,133		)
Goodwill3	110,514			408			110,922
Net Assets Acquired	$	84,872		$	(67	)	$	84,805

¹ As previously reported in Note 2 to the condensed consolidated financial statements as of March 31, 2019.

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 reporting unit. 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.

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

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

	Fair Value (In Thousands)		Weighted Average Life (In Years)
Non-compete Agreements	$	1,872	3.0
Customer Lease Contracts	7,876		1.0
Customer Relationships	10,087		3.0
Reacquired Franchise Rights	4,663		3.9
Total Acquired Intangible Assets1	$	24,498

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