MERGER AND OTHER ACQUISITION EXPENSES

The Company incurred significant expenses in 2017 and 2016 in connection with the Merger and integration with Cash America. The Merger related expenses are predominantly incremental costs directly associated with the Merger and integration of Cash America, including professional fees, legal expenses, severance, retention and other employee-related costs, accelerated vesting of certain equity compensation awards, contract breakage costs and costs related to consolidation of technology systems and corporate facilities. In addition, the Company incurred transaction and integration costs in connection with the Company’s other acquisitions in 2016 and 2015. The Company presents Merger and other acquisition expenses separately in the consolidated statements of income to identify these activities apart from the expenses incurred to operate the business. The table below summarizes the major components of Merger and other acquisition expenses (in thousands):



	Year Ended December 31,
	2017		2016		2015
Merger related expenses:
Transaction ⁽¹⁾	$	—	$	18,252	$	—
Severance and retention ⁽²⁾	3,897		15,229		—
Other ⁽³⁾	5,165		2,739		—
Total Merger related expenses	9,062		36,220		—

Other acquisition expenses:
Transaction and integration	—		450		2,875
Total other acquisition expenses	—		450		2,875
Total Merger and other acquisition expenses	$	9,062	$	36,670	$	2,875


⁽¹⁾	For the year ended December 31, 2016, the Company recognized an income tax benefit of $3.9 million, respectively, related to the Merger transaction expenses; a significant portion of these expenses were not deductible for income tax purposes.


⁽²⁾	For the year ended December 31, 2017 and 2016, the Company made severance and retention payments of $7.4 million and $10.4 million, respectively, and as of December 31, 2017 and 2016, had $1.3 million and $4.8 million, respectively, accrued for future payments. Accrued severance and retention is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets.


⁽³⁾	Represents accelerated share-based compensation expense related to restricted stock awards for certain First Cash employees which vested as a result of the Merger and other integration expenses.