Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 31, 2021

Acquisition assets acquired and liabilities assumed [Table Text Block]

Assets acquired and liabilities assumed in connection with the acquisition have been recorded at their fair values. The following table provides the preliminary estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date:


(in thousands)	February 17, 2021
Aggregate cash consideration	$	1,273,263
Aggregate stock consideration, subject to lockup agreements	120,929
Total Purchase price	$	1,394,192
ASSETS ACQUIRED
Receivables, net(1)	$	30,465
Prepaid expenses and other assets	699
Rental merchandise
On rent	357,692
Property assets	171,455
Operating lease right-of-use assets	9,136
Goodwill	241,774
Other intangible assets	520,000
Total assets acquired	$	1,331,221
LIABILITIES ASSUMED
Accounts payable - trade	16,023
Accrued liabilities	24,277
Operating lease liabilities	9,689
Deferred income taxes	(112,960)
Total liabilities assumed	(62,971)
Total equity value	$	1,394,192

(1) Includes gross contractual receivables of $65.2 million related to merchandise lease contracts, of which we have estimated $35.5 million are uncollectible.

Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The fair value measurements for acquired intangible assets and developed technology were primarily based on significant unobservable inputs (level 3) developed using company-specific information. Certain fair value estimates were determined based on an independent valuation of the net assets acquired, including $520 million of identifiable intangible assets with an estimated weighted average useful life of 8 years, as follows:


Asset Class	Estimated Fair Value (in thousands)		Estimated Remaining Useful Life (in years)
Merchant relationships	$	380,000	10
Relationship with existing lessees	60,000		1
Trade name	40,000		7
Non-compete agreements	40,000		3

Pro Forma combined results [Table Text Block]

The unaudited pro forma financial information is as follows:


(in thousands)	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
	(unaudited)		(unaudited)
Pro Forma total revenues	$	1,231,386	$	986,747
Pro Forma net earnings(1)	56,413		(16,966)

(1)Total pro forma adjustments to net earnings for the three months ended March 31, 2021 and March 31, 2020 were decreases of $13.2 million and $106.2 million, respectively.

The amounts of revenue and earnings of Acima Holdings included in our Condensed Consolidated Statements of Operations from the acquisition date of February 17, 2021 are as follows:


(in thousands)	February 17, 2021 - March 31, 2021		February 17, 2020 - March 31, 2020
	(unaudited)		(unaudited)
Total revenues	$	210,569	$	143,439
Net earnings(1)	19,006		21,025

(1)Net Earnings for the period February 17, 2021 - March 31, 2021 includes amortization of intangible assets acquired upon closing of the Acima Holdings acquisition