Aarons 2013 Annual Report Download - page 61

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51
NOTE 2: ACQUISITIONS AND DISPOSITIONS
Acquisitions
The following table summarizes the Company’s acquisitions of lease contracts, merchandise and the related assets of sales and
lease ownership stores, none of which was individually material to the Company’s consolidated financial statements, during the
years ended December 31:
(In Thousands, except for store data) 2013 2012 2011
Number of stores acquired, net 10 22 52
Aggregate purchase price (primarily cash consideration) $ 10,898 $ 31,617 $ 41,425
Purchase price allocation:
Lease Merchandise 4,016 11,936 13,385
Property, Plant and Equipment 467 739 500
Other Current Assets and Current Liabilities (228) 38 34
Identifiable Intangible Assets1:
Customer Relationships 557 1,725 2,675
Non-Compete Agreements 405 1,201 1,688
Acquired Franchise Development Rights 252 764 255
Goodwill25,429 15,214 22,888
1 The weighted-average amortization period for the Company’s acquired intangible assets was 2.9 years, 3.1 years and 2.6 years
in 2013, 2012 and 2011, respectively. The weighted-average amortization period by major intangible asset class for
acquisitions completed during 2013, 2012 and 2011 was 2 years for customer relationships, 3 years for non-compete
agreements and a range of 4.9 years to 6.9 years for acquired franchise development rights.
2 Goodwill recognized from acquisitions primarily relates to the future strategic benefits expected to be realized upon
integrating the business. All goodwill resulting from the Company’s 2013, 2012 and 2011 acquisitions is expected to be
deductible for tax purposes.
Acquisitions have been accounted for as business combinations, and the results of operations of the acquired businesses are
included in the Company’s results of operations from their dates of acquisition. The effect of these acquisitions on the 2013,
2012 and 2011 consolidated financial statements was not significant. The purchase price allocations related to current year
acquisitions are tentative and preliminary.
Dispositions
The Company periodically sells sales and lease ownership stores to franchisees and third-party operators. The Company sold
two, three and 25 of its Aaron’s Sales and Lease Ownership stores in 2013, 2012 and 2011, respectively. The effect of these
sales on the consolidated financial statements was not significant.
The Company began ceasing the operations of the Aaron’s Office Furniture division in June of 2010. The Company closed 14
of its Aaron’s Office Furniture stores during 2010 and sold the remaining store in August 2012. There were no significant
charges related to the closure of this division in 2013, 2012 or 2011.