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Acquisitions and Divestitures (Tables)
6 Months Ended
Jun. 30, 2021
Business Combinations [Abstract]  
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 agreements120,929 
Total Purchase price$1,394,192 
ASSETS ACQUIRED
Receivables, net(1)
$30,465 
Prepaid expenses and other assets699 
Rental merchandise
On rent325,073 
Property assets171,455 
Operating lease right-of-use assets9,136 
Goodwill273,793 
Other intangible assets520,000 
Total assets acquired$1,330,621 
LIABILITIES ASSUMED
Accounts payable - trade16,023 
Accrued liabilities23,677 
Operating lease liabilities9,689 
Deferred income taxes(112,960)
Total liabilities assumed(63,571)
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 ClassEstimated Fair Value
(in thousands)
Estimated Remaining Useful Life (in years)
Merchant relationships$380,000 10
Relationship with existing lessees60,000 1
Trade name40,000 7
Non-compete agreements40,000 3
Pro Forma combined results [Table Text Block] The unaudited pro forma financial information is as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2021202020212020
(unaudited)(unaudited)(unaudited)(unaudited)
Pro Forma total revenues$1,193,975 $982,266 $2,425,361 $1,969,013 
Pro Forma net earnings(1)
65,448 16,122 121,861 (843)
(1)Total pro forma adjustments to net earnings represented an increase of $4.1 million for the three months ended June 30, 2021, a decrease of $106.2 million for the six months ended June 30, 2021, and $71.7 million and $177.9 million for the three and six months ended June 30, 2020, 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 -
June 30, 2021
February 17, 2020 -
June 30, 2020
(unaudited)(unaudited)
Total revenues$615,646 $441,959 
Net earnings(1)
68,986 70,380 
(1)Net Earnings for the period February 17, 2021 - June 30, 2021 includes amortization of intangible assets acquired upon closing of the Acima Holdings acquisition