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Intangible Assets and Acquisitions

9 Months Ended

Sep. 30, 2011

Intangible Assets and Acquisitions [Abstract]

2. Intangible Assets and Acquisitions.

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

			September 30, 2011				December 31, 2010
		Avg.	Gross				Gross
		Life	Carrying		Accumulated		Carrying		Accumulated
		(years)	Amount		Amortization		Amount		Amortization

Non-compete agreements …		3	$	6,096	$	6,087	$	6,094	$	6,057
Customer relationships ……		2		68,928		64,784		67,811		62,224
Vendor relationships……….		11		7,538		426		—		—
	Total …………………		$	82,562	$	71,297	$	73,905	$	68,281

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
2011……………………………………………………………………………………		$	1,103
2012……………………………………………………………………………………			3,528
2013……………………………………………………………………………………			800
2014……………………………………………………………………………………			568
2015……………………………………………………………………………………			568
Thereafter………………………………………………………………………………			4,698
Total……………………………………………………………………………………		$	11,265

A summary of the changes in recorded goodwill follows (in thousands):
			September 30,		December 31,
			2011		2010

Balance as of January 1, ………………………………			$	1,320,467	$	1,268,684
	Additions from acquisitions …………………………			3,170		55,922
	Goodwill related to stores sold or closed…………….			(229)		(4,320)	⁽¹⁾
	Post purchase price allocation adjustments …………			1,944		181
		Balance as of the end of the period ……………….	$	1,325,352	$	1,320,467

__________

⁽¹⁾

Includes $1.8 million of goodwill impairment related to the discontinuation of our financial services business.

Additions to goodwill due to acquisitions in the first nine months of 2011 were tax deductible.

The Rental Store, Inc.

On December 20, 2010, we acquired The Rental Store, Inc., a leading provider of consumer lease-purchase transactions through third-party retail furniture and electronics retailers. This acquisition resulted in the addition of 158 kiosks to our RAC Acceptance program as of December 31, 2010. The initial accounting for the acquisition was not finalized as of December 31, 2010 due to the timing of the transaction. In the quarter ending June 30, 2011, we recorded an adjustment of $7.5 million from goodwill to vendor relationships after the analysis of acquired intangible assets was completed. Post purchase price allocation adjustments include the vendor relationship adjustment and various other off-setting adjustments including rental merchandise as discussed in the first quarter 2011.

- 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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