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Acquisitions
 3 Months Ended
Mar. 31, 2013
Acquisitions

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:

 

(In Thousands, except for store data)    2013     2012  

Number of stores acquired, net

      1        4   

Aggregate purchase price (primarily cash consideration)

    $ 1,295      $ 5,913   

Purchase price allocation:

     

Lease Merchandise

      608        2,056   

Property, Plant and Equipment

      66        151   

Other Current Assets and Current Liabilities

      (15 )      (4 ) 

Identifiable Intangible Assets 1:

     

Customer Relationships

      82        394   

Non-Compete Agreements

      59        240   

Acquired Franchise Development Rights

      24        126   

Goodwill2

      471        2,950   
 
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 2013 and 2012 acquisitions is expected to be deductible for tax purposes.and 2012 acquisitions is expected to be deductible for tax purposes. During the three months ended March 31, 2013, goodwill of approximately $471,000 was assigned to the Company’s Sales and Lease Ownership operating segment. During the three months ended March 31, 2012, goodwill of approximately $2.7 million and $216,000 was assigned to the Company’s Sales and Lease Ownership and HomeSmart operating segments, respectively.

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, 2013 and 2012 was not significant. The purchase price allocations related to current year acquisitions are tentative and preliminary; the Company anticipates finalizing them prior to December 31, 2013.