Aarons 2014 Annual Report Download - page 74

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Total amortization expense of definite-lived intangible assets, included in operating expenses in the accompanying consolidated
statements of earnings, was $31.9 million, $3.7 million and $3.7 million during the years ended December 31, 2014, 2013 and
2012, respectively. As of December 31, 2014, estimated future amortization expense for the next five years related to definite-
lived intangible assets is as follows:
(In Thousands)
2015 $ 27,496
2016 26,978
2017 23,311
2018 21,800
2019 21,734
NOTE 4: FAIR VALUE MEASUREMENT
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table summarizes financial liabilities measured at fair value on a recurring basis:
December 31, 2014 December 31, 2013
(In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Deferred Compensation Liability $ — $ (12,677) $ — $ — $ (12,557) $ —
The Company maintains a deferred compensation plan as described in Note 15 to these consolidated financial statements. 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 “mirror” funds. As such, the Company has classified the deferred compensation
liability as a Level 2 liability.
Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The following table summarizes non-financial assets measured at fair value on a nonrecurring basis:
December 31, 2014 December 31, 2013
(In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets Held for Sale $ — $ 6,356 $ — $ — $ 15,840 $ —
Assets held for sale includes real estate properties that consist mostly of parcels of land and commercial buildings, as well as
the net assets of the former RIMCO operating segment, principally consisting of lease merchandise, office furniture and
leasehold improvements, which have been included in the Other segment assets as of December 31, 2013. 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 or use these properties. In accordance with ASC Topic 360, Property, Plant and Equipment, assets
held for sale are written down to fair value less cost to sell, and the adjustment is recorded in other operating (income) expense,
net. The Company estimated the fair values of real estate properties using the market values for similar properties and estimated
the fair value of the RIMCO disposal group based upon expectations of a sale price.
In January 2014, the Company sold the 27 Company-operated RIMCO stores and the rights to five franchised RIMCO stores,
which leased automobile tires, wheels and rims under sales and lease ownership agreements. The Company received total cash
consideration of $10.0 million from a third party. During the year ended December 2013, the Company recognized impairment
charges of $766,000 related to the write-down of the net assets of the RIMCO disposal group to fair value less cost to sell.
During the year ended December 31, 2014, the Company recognized a net loss on the sale of the RIMCO disposal group of
$762,000, which has been included in other operating (income) expense, net in the Company's results of operations. The
Company expects any additional charges associated with the disposal of the former RIMCO segment to be immaterial to future
results of operations.