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Intangible Assets and Acquisitions
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Acquisitions [Text Block]
Intangible Assets and Acquisitions
Goodwill Impairment Charge
In the fourth quarter of 2018, we completed a qualitative assessment for impairment of goodwill as of October 1, 2018, concluding it was not more likely than not that the carrying value of our reporting unit's net assets exceeded the reporting unit's fair value and therefore no impairment of goodwill existed as of December 31. 2018.
During 2016, we recorded a goodwill impairment charge of $151.3 million in our Core U.S. segment.
Intangible Assets
Amortizable intangible assets consist of the following:
 
 
 
December 31, 2018
 
December 31, 2017
 (Dollar amounts in thousands)
Avg.
Life
(years)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Customer relationships
2
 
$
79,942

 
$
79,695

 
$
79,670

 
$
79,274

Vendor relationships
11
 
860

 
860

 
860

 
860

Non-compete agreements
3
 
6,745

 
6,493

 
6,748

 
6,262

Total other intangible assets
 
 
$
87,547

 
$
87,048

 
$
87,278

 
$
86,396


Aggregate amortization expense (in thousands):
Year Ended December 31, 2018
$
671

Year Ended December 31, 2017 (1)
$
4,908

Year Ended December 31, 2016
$
2,176


(1) Includes impairment charge of $3.9 million to our intangible assets, related to a vendor relationship, in the ANOW segment during the first quarter of 2017.
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
2019
$
451

2020
48

Thereafter

Total amortization expense
$
499


At December 31, 2018, the amount of goodwill attributable to the Core U.S. and Acceptance Now segments was approximately $1.5 million and $55.3 million, respectively. At December 31, 2017, the amount of goodwill allocated to the Core U.S. and Acceptance Now segment was approximately $1.3 million and $55.3 million, respectively.
A summary of the changes in recorded goodwill follows:
 
Year Ended December 31,
 (In thousands)
2018
 
2017
Beginning goodwill balance
$
56,614

 
$
55,308

Additions from acquisitions
169

 
1,217

Post purchase price allocation adjustments
62

 
89

Ending goodwill balance
$
56,845

 
$
56,614

Acquisitions
The following table provides information concerning the acquisitions made during the years ended December 31, 2018, 2017 and 2016.
 
Year Ended December 31,
(Dollar amounts in thousands)
2018
 
2017
 
2016
Number of stores acquired remaining open
1

 

 

Number of stores acquired that were merged with existing stores
6

 
8

 
3

Number of transactions
7

 
4

 
3

Total purchase price
$
2,048

 
$
2,547

 
$
2,302

Amounts allocated to:
 
 
 
 
 
Goodwill
$
169

 
$
1,217

 
$
1,442

Non-compete agreements

 

 

Customer relationships
289

 
550

 
181

Rental merchandise
1,590

 
780

 
679

 
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. Operating results of the acquired stores and accounts have been included in the financial statements since their date of acquisition.
The weighted average amortization period was approximately 21 months for intangible assets added during the year ended December 31, 2018. Additions to goodwill due to acquisitions in 2018 were tax deductible.