Aarons 2014 Annual Report Download - page 73

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63
NOTE 3: GOODWILL AND INTANGIBLE ASSETS
Indefinite-Lived Intangible Assets
The following table summarizes information related to indefinite-lived intangible assets at December 31:
(In Thousands) 2014 2013
Trade Names and Trademarks $ 53,000 $ —
Goodwill 530,670 239,181
Indefinite-lived Intangible Assets $ 583,670 $ 239,181
The increase in goodwill and trade name-related intangible assets in 2014 is primarily due to the acquisition of Progressive as
described in Note 2 to these consolidated financial statements.
The following table provides information related to the carrying value of goodwill by operating segment:
(In Thousands)
Sales and Lease
Ownership Progressive HomeSmart Total
Balance at January 1, 2013 $ 219,547 $ — $ 14,648 $ 234,195
Acquisitions 5,429 — — 5,429
Disposals (499) — — (499)
Purchase Price Adjustments 46 — 10 56
Balance at December 31, 2013 224,523 — 14,658 239,181
Acquisitions 3,629 277,958 — 281,587
Disposals (1,321) — — (1,321)
Purchase Price Adjustments (3) 11,226 — 11,223
Balance at December 31, 2014 $ 226,828 $ 289,184 $ 14,658 $ 530,670
Definite-Lived Intangible Assets
The following table summarizes information related to definite-lived intangible assets at December 31:
2014 2013
(In Thousands) Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
Customer Relationships $ 1,064 $ (554) $ 510 $ 2,282 $ (1,463) $ 819
Non-Compete Agreements 1,906 (1,261) 645 3,265 (2,001) 1,264
Acquired Franchise Development Rights 2,751 (1,624) 1,127 3,529 (2,077) 1,452
Internal Use Software 14,000 (3,331) 10,669 — — —
Technology 66,000 (4,712) 61,288 — — —
Customer Lease Contracts 11,000 (11,000) — — — —
Merchant Relationships 181,000 (10,768) 170,232 — — —
Total $ 277,721 $ (33,250) $ 244,471 $ 9,076 $ (5,541) $ 3,535
The increase in definite-lived intangible assets in 2014 is primarily due to the acquisition of Progressive as described in Note 2
to these consolidated financial statements.