Acquisitions and Divestitures (Tables)

12 Months Ended

Dec. 31, 2022

The following table provides the 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)	$	25,255
Prepaid expenses and other assets	700
Rental merchandise
On rent	340,575
Property assets	171,455
Operating lease right-of-use assets	9,136
Deferred income taxes	28,559
Goodwill	219,530
Other intangible assets	520,000
Total assets acquired	$	1,315,210
LIABILITIES ASSUMED
Accounts payable - trade	16,023
Accrued liabilities	11,716
Operating lease liabilities	9,689
Deferred income taxes	(116,410)
Total liabilities assumed	(78,982)
Total equity value	$	1,394,192

(1) Includes gross contractual receivables of $61.6 million related to merchandise lease contracts, of which $34.7 million were estimated to be uncollectible.

Acquisitions [Table Text Block]

The following table provides information concerning other store acquisitions completed during the years ended December 31, 2022, 2021 and 2020.


	Year Ended December 31,
(Dollar amounts in thousands)	2022		2021		2020
Number of stores acquired remaining open	1		1		—
Number of stores acquired that were merged with existing stores	4		—		2
Number of transactions	5		1		2
Total purchase price	$	995	$	278	$	700
Amounts allocated to:
Goodwill	$	—	$	—	$	—

Customer relationships	141		30		177
Rental merchandise	854		248		523

Finite-Lived and Indefinite-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 values were determined based on an independent valuation of the net assets acquired, including

$340.6 million of rental merchandise and $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

The unaudited pro forma financial information is as follows:


	Year Ended December 31,
(in thousands)		2021		2020
		(unaudited)		(unaudited)
Pro Forma total revenues		$	4,778,055	$	4,071,990
Pro Forma net earnings(1)		178,103		66,352

(1) Total pro forma adjustments to net earnings represented an increase of $16.0 million and a decrease of $356.8 million for the twelve months ended December 31, 2021 and 2020, respectively.

The amounts of revenue and earnings of Acima Holdings included in our Consolidated Statements of Operations as of December 31, 2021 from the acquisition date of February 17th 2021 are as follows:


(in thousands)	February 17, 2021 - December 31, 2021
	audited
Total revenues	$	1,495,746
Net earnings(1)	119,183

(1) Net Earnings includes amortization of intangible assets acquired upon closing of the Acima Holdings acquisition.