Aarons 2012 Annual Report Download - page 65

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statements prepared in accordance with U.S. Generally Accepted Accounting Principles and International Financial
Reporting Standards. The amendments are of two types: (i) those that clarify the FASB’s intent about the application
of existing fair value measurement and disclosure requirements and (ii) those that change a particular principle or
requirement for measuring fair value or for disclosing information about fair value measurements. ASU 2011-04 is
effective for annual periods beginning after December 15, 2011 and the Company adopted ASU 2011-04 effective
January 1, 2012. The adoption of ASU 2011-04 did not have a material effect on the Company’s financial
statements.
In May 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income (―ASU 2011-05‖). ASU
2011-05 eliminated the option to report other comprehensive income and its components in the statement of
shareholders’ equity. Instead, an entity has the option to present the total of comprehensive income, the components
of net income, and the components of other comprehensive income either in a single continuous statement of
comprehensive income or in two separate but consecutive statements. ASU 2011-05 also required entities to present
reclassification adjustments out of accumulated other comprehensive income by component in both the statement in
which net income is presented and the statement in which other comprehensive income is presented. The Company
elected to report other comprehensive income and its components in a separate statement of comprehensive income
for the year ended December 31, 2012.
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other
Comprehensive Income (―ASU 2013-02). ASU 2013-02 will require preparers to report, in one place, information
about reclassifications out of accumulated other comprehensive income (―AOCI‖). The ASU also requires
companies to report changes in AOCI balances. For significant items reclassified out of AOCI to net income in their
entirety in the same reporting period, reporting (either on the face of the statement where net income is presented or
in the notes) is required about the effect of the reclassifications on the respective line items in the statement where
net income is presented. For items that are not reclassified to net income in their entirety in the same reporting
period, a cross reference to other disclosures currently required under US GAAP is required in the notes. The above
information must be presented in one place (parenthetically on the face of the financial statements by income
statement line item or in a note). ASU 2013-02 is effective for fiscal years and interim periods within those years
beginning after December 15, 2012. The Company does not believe the adoption of ASU 2013-02 will have a
material effect on the consolidated financial statements.
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)
2012
2011
2010
Number of stores acquired, net
22
52
14
Aggregate purchase price (primarily cash consideration)
$
31,617
$
41,425
$
17,891
Purchase price allocation:
Lease Merchandise
11,936
13,385
6,489
Property, Plant and Equipment
739
500
334
Other Current Assets and Current Liabilities
38
34
43
Identifiable Intangible Assets 1:
Customer Relationships
1,725
2,675
748
Non-Compete Agreements
1,201
1,688
541
Acquired Franchise Development Rights
764
255
496
Goodwill2
15,214
22,888
9,240
1 The weighted-average amortization period for the Company’s acquired intangible assets was 3.1 years, 2.6 years
and 3.5 years in 2012, 2011 and 2010, respectively. The weighted-average amortization period by major