Intangible Assets and Acquisitions

12 Months Ended

Dec. 31, 2013

Intangible Assets and Acquisitions [Abstract]

Note F — Intangible Assets and Acquisitions

Intangible Assets

Amortizable intangible assets consist of the following (in thousands):



		December 31, 2013				December 31, 2012
	Avg. Life (years)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Non-compete agreements	3	$	6,337	$	6,102	$	6,104	$	6,098
Customer relationships	2	74,799		71,899		71,816		70,001
Vendor relationships	11	7,538		1,704		7,538		1,136
Total		$	88,674	$	79,705	$	85,458	$	77,235

Aggregate amortization expense (in thousands):



Year Ended December 31, 2013	$	3,559
Year Ended December 31, 2012	$	4,668
Year Ended December 31, 2011	$	4,285

Estimated amortization expense, assuming current intangible balances and no new acquisitions, for each of the years ending December 31, is as follows (in thousands):



	Estimated Amortization Expense
2014	$	2,704
2015	1,491
2016	644
2017	568
2018	445
Thereafter	3,117
	$	8,969

At December 31, 2013, the amount of goodwill allocated to the Core U.S. and Acceptance Now segments was approximately $1,310.1 million and $54.4 million, respectively. At December 31, 2012, the amount of goodwill allocated to the Core U.S., Acceptance Now and International segments was approximately $1,289.2 million, $54.4 million, and $1.1 million, respectively.

During the years ended December 31, 2013 and 2012, we recorded goodwill impairment charges of $1.1 million and $1.0 million, respectively, in our International segment as a result of the sustained underperformance of certain stores located in Canada. These charges are included in amortization and write-down of intangibles in the consolidated statements of earnings.

A summary of the changes in recorded goodwill follows (in thousands):



	Year Ended December 31,
	2013			2012
Gross balance as of January 1,	$	1,344,665		$	1,339,125
Additions from acquisitions	28,282			6,874
Goodwill impairments and write-offs related to stores sold or closed	(9,038		)	(1,221		)
Post purchase price allocation adjustments	640			(113		)
Balance as of the end of the period	$	1,364,549		$	1,344,665

Acquisitions

The following table provides information concerning the acquisitions made during the years ended December 31, 2013, 2012 and 2011.



	Year Ended December 31,
	2013		2012		2011
	(Dollar amounts in thousands)
Number of stores acquired remaining open	47		6		26
Number of stores acquired that were merged with existing stores	38		31		71
Number of kiosk locations acquired	—		—		5
Number of transactions	47		19		19
Total purchase price	$	41,236	$	13,258	$	26,747
Amounts allocated to:
Goodwill	$	28,282	$	6,874	$	18,755
Non-compete agreements	235		—		10
Customer relationships	2,959		1,160		2,843
Rental merchandise	11,843		4,380		6,023
Property and other assets	910		845		—
Liabilities assumed	—		—		(884		)

Purchase prices are determined by evaluating the average monthly rental income of the acquired stores and applying a multiple to the total for rent-to-own store acquisitions. Acquired customer relationships are amortized utilizing the straight-line method over a 21 month period, non-compete agreements are amortized using the straight-line method over the contractual life of the agreements, vendor relationships are amortized using the straight-line method over a 7 or 15 year period, other intangible assets are amortized using the straight-line method over the life of the asset and goodwill associated with acquisitions is not amortized. The weighted average amortization period was approximately 22 months for intangible assets added during the year ended December 31, 2013. Additions to goodwill due to acquisitions in 2013 were tax deductible.

All acquisitions have been accounted for as asset purchases, and the operating results of the acquired stores and accounts have been included in the financial statements since their date of acquisition.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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