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Acquisitions
 15 Months Ended
Dec. 31, 2011
Acquisitions [Abstract]  
Acquisitions

Note B: Acquisitions

The following table provides information related to the acquisitions of domestic and foreign retail and financial services locations during the fiscal quarters ended December 31, 2011 and 2010:

 

                 
    Three Months Ended December 31,  
    2011     2010  

Number of asset purchase acquisitions

     5       3  

Number of stock purchase acquisitions

     1       1  
     

U.S. stores acquired

     24       4  

Foreign stores acquired

     1       —    
   

 

 

    

 

 

  

Total stores acquired

     25       4  

 

                 
    Three Months Ended December 31,  
    2011     2010  
    (In thousands)  

Consideration:

                

Cash

   $ 49,644     $ 13,736  

Equity instruments

     1,122       —    
   

 

 

    

 

 

  

Fair value of total consideration transferred

     50,766       13,736  

Cash acquired

     (245 )      (36 ) 
   

 

 

    

 

 

  

Total purchase price

   $ 50,521     $ 13,700  
     

Current assets:

                

Pawn loans

   $ 5,036     $ 1,542  

Service charges and fees receivable

     645       312  

Inventory

     4,307       847  

Deferred tax asset

     45       53  

Prepaid expenses and other assets

     39       2  
   

 

 

    

 

 

  

Total current assets

     10,072       2,756  
     

Property and equipment

     1,725       273  

Goodwill

     39,642       10,708  

Other assets

     1,007       115  
   

 

 

    

 

 

  

Total assets

   $ 52,446     $ 13,852  
     

Current liabilities:

                

Accounts payable and other accrued expenses

   $ 998     $ 27  

Customer layaway deposits

     682       72  

Other current liabilities

     226       —    
   

 

 

    

 

 

  

Total current liabilities

     1,906       99  
     

Deferred tax liability

     19       53  
   

 

 

    

 

 

  

Total liabilities

     1,925       152  
   

 

 

    

 

 

  

Net assets acquired

   $ 50,521     $ 13,700  
   

 

 

    

 

 

  

Goodwill deductible for tax purposes

   $ 6,864     $ 6,061  

Goodwill recorded in U.S. Pawn Segment

     39,610       10,708  

Goodwill recorded in EZMONEY segment

     32       —    
     

Definite lived intangible assets acquired:

                

Favorable lease asset

   $ 230     $ —    

Non-compete agreements

   $ 180     $ 115  

Contractual relationship

   $ 450     $ —    

All stores were acquired as part of our continuing strategy to acquire domestic and foreign pawn stores to enhance and diversify our earnings. Transaction related expenses were not material and were expensed as incurred. The results of all acquired stores have been consolidated with our results since their acquisition. The purchase price allocation of assets acquired in the most recent twelve months is preliminary as we continue to receive information regarding the acquired assets. Pro forma results of operations have not been presented because it is impracticable to do so, as historical audited financial statements are not readily available.

 

The amounts above include the acquisition, from a related party, of a decision science model for the underwriting of consumer loans, a contractual relationship with an income tax return preparer to facilitate refund anticipation loans and an online lending business in the U.K., for an aggregate purchase price of $1.2 million, which was paid in cash. Pursuant to our Policy for Review and Evaluation of Related Party Transactions, the Audit Committee reviewed and evaluated the terms of the transaction and concluded that the transaction was fair to, and in the best interest of, the company and its stockholders.