MERGER AND OTHER ACQUISITION EXPENSES

The Company incurred significant expenses in fiscal 2018, 2017 and 2016 in connection with merger and acquisition activity. These expenses are predominantly incremental costs directly associated with merger and acquisition activity, including, but not limited to, 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. 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,
	2018		2017		2016
Merger and other acquisition expenses:
Transaction ⁽¹⁾	$	6,658	$	—	$	18,702
Severance and retention ⁽²⁾	137		3,897		15,229
Other ⁽³⁾	848		5,165		2,739
Total merger and other acquisition expenses	$	7,643	$	9,062	$	36,670


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

⁽²⁾

For the year ended December 31, 2018, 2017 and 2016, the Company made severance and retention payments of $1.4 million, $7.4 million and $10.4 million, respectively, and as of December 31, 2018, 2017 and 2016, had $0.0 million, $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.