Aarons 2015 Annual Report Download - page 69
Download and view the complete annual report
Please find page 69 of the 2015 Aarons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59 -
60 -
61 -
62 -
63 -
64 -
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
 |
 |
Acquisition Accounting
The following table presents the summary of the preliminary estimated fair value of the assets acquired and liabilities assumed in the Progressive acquisition
as of the April 14, 2014 acquisition date, as well as adjustments made during the year ended December 31, 2015 (referred to as the "measurement period
adjustments"):
1
2
Purchase Price $ 705,810
$ —
$ 705,810
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash and Cash Equivalents 5,810
—
5,810
Receivables2, 3 27,581
(4,245)
23,336
Lease Merchandise2141,185
110
141,295
Property, Plant and Equipment 4,010
—
4,010
Other Intangibles4325,000
—
325,000
Prepaid Expenses and Other Assets 893
—
893
Total Identifiable Assets Acquired 504,479
(4,135) 500,344
Accounts Payable and Accrued Expenses2(29,104)
3,049
(26,055)
Deferred Income Taxes Payable2(48,749)
(335)
(49,084)
Customer Deposits and Advance Payments (10,000)
—
(10,000)
Total Liabilities Assumed (87,853)
2,714
(85,139)
Goodwill5289,184
1,421
290,605
Net Assets Acquired $ 705,810 $ — $ 705,810
1 As previously reported in the notes to consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended
December 31, 2014, which includes the effects of certain measurement period adjustments recognized in 2014.
2 The measurement period adjustments recognized in 2015 related to the resolution of income tax uncertainties and sales tax exposures, which also impacted
the fair value estimates of receivables and lease merchandise related to the secondary escrow amount, subsequent to the acquisition date.
3 Receivables include $13.4 million related to the secondary escrow amount, which the Company expects to recover prior to termination of the escrow
agreement 36 months from the April 14, 2014 closing date. The gross amount due under customer-related receivables acquired was $22.7 million, of which
$10.9 million was expected to be uncollectible.
4 Identifiable intangible assets are further disaggregated in the following table.
5 The total goodwill recognized in conjunction with the Progressive acquisition has been assigned to the Progressive operating segment. Of the goodwill
recognized as part of this acquisition, $247.0 million is expected to be deductible for tax purposes. The primary reasons the purchase price of the acquisition
exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, is related to synergistic value created from the combination
of Progressive’s virtual customer payment capabilities with the Company’s leading traditional lease-to-own model. Goodwill also includes certain other
intangible assets that do not qualify for separate recognition, such as an assembled workforce.
68