Intangible Assets and Acquisitions

9 Months Ended

Sep. 30, 2014

Intangible Assets and Acquisitions [Abstract]

Intangible Assets and Acquisitions.

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



		September 30, 2014				December 31, 2013
	Avg. Life (years)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Non-compete agreements	3	$	5,586	$	5,415	$	6,337	$	6,102
Customer relationships	2	75,445		73,602		74,799		71,899
Vendor relationships	11	7,538		2,130		7,538		1,704
Total		$	88,569	$	81,147	$	88,674	$	79,705

The weighted average amortization period was approximately 21 months for intangible assets added during the nine-month period ended September 30, 2014. Estimated remaining 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	$	675
2015	1,871
2016	747
2017	568
2018	445
Thereafter	3,116
Total	$	7,422

At September 30, 2014, the amount of goodwill allocated to the Core U.S. and Acceptance Now segments was approximately $1,312.0 million and $54.4 million, respectively. 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.

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



	Nine Months Ended			Year Ended
	September 30, 2014			December 31, 2013
Balance as of January 1,	$	1,364,549		$	1,344,665
Additions from acquisitions	4,400			28,282
Goodwill impairments and write-offs related to stores sold or closed	(1,971		)	(9,038		)
Post purchase price allocation adjustments	(610		)	640
Balance as of the end of the period	$	1,366,368		$	1,364,549

Additions to goodwill due to acquisitions in the first nine months of 2014 were tax deductible.

We perform an assessment of goodwill for impairment at the reporting unit level annually, or when events or circumstances indicate that impairment may have occurred. Factors which could necessitate an interim impairment assessment include a sustained decline in our stock price, prolonged negative industry or economic trends and significant underperformance relative to expected historical or projected future operating results. During the three months ended September 30, 2014, the Company changed its annual impairment testing date from December 31 to October 1. The Company believes this new date is preferable because it allows for more timely completion of the annual goodwill impairment test prior to the end of our annual financial reporting period. This change in accounting principle does not delay, accelerate or avoid an impairment charge. The Company has determined that it will be impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of each October 1 of prior reporting periods without the use of hindsight. As such, the Company will apply the change in annual goodwill impairment testing date prospectively beginning October 1, 2014.

- 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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