Aarons 2012 Annual Report Download - page 67

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57
Total amortization expense of intangible assets, included in operating expenses in the accompanying consolidated
statements of earnings, was $3.7 million, $2.3 million and $3.1 million during the years ended December 31, 2012,
2011 and 2010, respectively. As of December 31, 2012, estimated future amortization expense for the next five
years related to identifiable intangible assets is as follows:
(In Thousands)
2013
$
3,509
2014
1,598
2015
466
2016
232
2017
177
NOTE 4: FAIR VALUE MEASUREMENT
Financial Assets Measured at Fair Value on a Recurring Basis
The following table summarizes financial assets and liabilities measured at fair value on a recurring basis:
December 31, 2012
December 31, 2011
(In Thousands)
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Deferred Compensation Liability
$
-
$
(9,518)
$
-
$
-
$
(6,291)
$
-
The Company maintains a deferred compensation plan that allows for certain management, highly compensated
employees and non-employee directors to defer the receipt of base compensation, incentive pay compensation and
director fees until a later date based on the terms of the plans. The liability representing benefits accrued for plan
participants is valued at the quoted market prices of the participants’ investment elections, which consist of equity
and debt funds. As such, the Company has classified the deferred compensation liability as a Level 2 liability. Refer
to Note 15 for additional information regarding the deferred compensation plan.
Non-Financial Assets Measured at Fair Value on a Nonrecurring Basis
The following table summarizes assets measured at fair value on a nonrecurring basis:
December 31, 2012
December 31, 2011
(In Thousands)
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Assets Held for Sale
$
-
$
11,104
$
-
$
-
$
9,885
$
-
Assets held for sale primarily represents real estate properties that consist mostly of parcels of land. The highest and
best use of these assets is as real estate land parcels for development or real estate properties for use or lease;
however, the Company has chosen not to develop these properties. In accordance with ASC Topic 360, Property,
Plant and Equipment, assets held for sale are written down to fair value, and the adjustment is recorded in operating
expenses. The Company estimated the fair values of these properties using the market values for similar properties.
Certain Financial Assets and Liabilities Not Measured at Fair Value
The following table summarizes the fair value of assets (liabilities) that are not measured at fair value in the
consolidated balance sheets, but for which the fair value is disclosed:
December 31, 2012
December 31, 2011
(In Thousands)
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Corporate Bonds
1
$
-
$
67,470
$
-
$
-
$
81,594
$
-
Perfect Home Bonds
2
-
-
18,449
-
-
15,889
Fixed-Rate Long Term Debt
3
-
(127,261)
-
-
(135,031)
-