Aarons 2015 Annual Report Download - page 67

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
During the years ended December 31, 2015 and 2014, net cash payments related to the acquisitions of businesses, including contracts, were $73.3 million
and $700.5 million, respectively. Cash payments made during the year ended December 31, 2015 principally relate to the October 15, 2015 DAMI
acquisition as described below. Cash payments made during the year ended December 31, 2014 principally related to the April 2014 Progressive acquisition
as described below.
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 results of DAMI and Progressive have been presented as reportable segments from their October 15,
2015 and April 14, 2014 acquisition dates, respectively. Refer to Note 13 for more information on their revenues and earnings before income taxes since their
respective acquisition dates. The effect of the Company’s other acquisitions on the consolidated financial statements for the years ended December 31, 2015
and 2014 was not significant.
DAMI Acquisition
On October 15, 2015, Progressive acquired a 100% ownership interest in DAMI for a total purchase price of $54.9 million, inclusive of cash acquired of $4.2
million. The DAMI subsidiary is expected to enable Progressive to drive long-term incremental revenue and earnings growth, and in turn will benefit from
Progressive's proprietary technology, infrastructure, and financial capacity. It offers retail partners, along with Progressive's technology-based application and
approval process, one source for financing and leasing transactions with below-prime customers.
Preliminary Acquisition Accounting
The following table presents the summary of the preliminary estimated fair value of the assets acquired and liabilities assumed in the DAMI acquisition as of
the October 15, 2015 acquisition date:

Purchase Price $ 54,900
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash and Cash Equivalents 4,185
Loans Receivable189,186
Receivables 45
Property, Plant and Equipment 2,754
Other Intangibles23,400
Income Tax Receivable 728
Prepaid Expenses and Other Assets 671
Deferred Income Tax Assets 375
Total Identifiable Assets Acquired 101,344
Accounts Payable and Accrued Expenses (1,709)
Debt (45,025)
Total Liabilities Assumed (46,734)
Goodwill 290
Net Assets Acquired $ 54,900
1 Contractually required amounts due at the acquisition date were $94.2 million.
2 Identifiable intangible assets are further disaggregated in the table below.
The preliminary acquisition accounting presented above is subject to refinement. The Company is still finalizing certain working capital adjustments with
the sellers and gathering information on certain contingencies and other income tax-related matters that existed at the acquisition date. Estimates for these
items have been included in the acquisition accounting and are expected to be finalized prior to the one year anniversary date of the acquisition.
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