Intangible Assets and Acquisitions

6 Months Ended

Jun. 30, 2012

Intangible Assets and Acquisitions [Abstract]

2. Intangible Assets and Acquisitions.

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

			June 30, 2012				December 31, 2011
		Avg.	Gross				Gross
		Life	Carrying		Accumulated		Carrying		Accumulated
		(years)	Amount		Amortization		Amount		Amortization

Non-compete agreements …		3	$	6,104	$	6,095	$	6,104	$	6,091
Customer relationships ……		2		70,738		68,285		70,648		65,901
Vendor relationships……….		11		7,538		852		7,538		568
	Total …………………		$	84,380	$	75,232	$	84,290	$	72,560

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
2012……………………………………………………………………………………		$	1,884
2013……………………………………………………………………………………			1,425
2014……………………………………………………………………………………			573
2015……………………………………………………………………………………			568
2016……………………………………………………………………………………			568
Thereafter………………………………………………………………………………			4,130
Total……………………………………………………………………………………		$	9,148

At June 30, 2012, the amount of goodwill allocated to the Core U.S., RAC Acceptance and International segments was approximately $1,282.7 million, $54.4 million, and $2.1 million, respectively. At December 31, 2011, the amount of goodwill allocated to the Core U.S., RAC Acceptance and International segments was approximately $1,282.6 million, $54.4 million, and $2.1 million, respectively. A summary of the changes in recorded goodwill, all of which were recorded in the Core U.S. segment, follows (in thousands):

			June 30, 2012		December 31, 2011

Balance as of January 1, ………………………………			$	1,339,125	$	1,320,467
	Additions from acquisitions …………………………			240		18,755
	Goodwill related to stores sold or closed…………….			(376)		(390)
	Post purchase price allocation adjustments …………			245		293
		Balance as of the end of the period ……………….	$	1,339,234	$	1,339,125

Additions to goodwill due to acquisitions in the first six months of 2012 were tax deductible.

- 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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