Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Indefinite-Lived Intangible Assets

The following table summarizes information related to indefinite-lived intangible assets at December 31:



	December 31,
(In Thousands)	2017		2016
Trade Name	$	53,000	$	53,000
Goodwill	622,948		526,723
Indefinite-lived Intangible Assets	$	675,948	$	579,723

The following table provides information related to the carrying amount of goodwill by operating segment:



(In Thousands)	Progressive Leasing			Aaron’s Business			DAMI			Total
Balance at January 1, 2016	$	290,605		$	248,580		$	290		$	539,475
Acquisitions	—			4,345			—			4,345
Disposals, Currency Translation and Other Adjustments	(1,804		)	(15,173		)	—			(16,977		)
Acquisition Accounting Adjustments	—			170			(290		)	(120		)
Balance at December 31, 2016	288,801			237,922			—			526,723
Acquisitions	—			97,460			—			97,460
Disposals, Currency Translation and Other Adjustments	—			(1,271		)	—			(1,271		)
Acquisition Accounting Adjustments	—			36			—			36
Balance at December 31, 2017	$	288,801		$	334,147		$	—		$	622,948

Definite-Lived Intangible Assets

The following table summarizes information related to definite-lived intangible assets at December 31:



	2017							2016
(In Thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Acquired Internal Use Software	$	14,000	$	(14,000	)	$	—	$	14,000	$	(12,665	)	$	1,335
Technology	68,550		(25,639		)	42,911		68,550		(18,529		)	50,021
Merchant Relationships	181,000		(56,018		)	124,982		181,000		(40,934		)	140,066
Other Intangibles¹	19,558		(4,900		)	14,658		6,581		(3,331		)	3,250
Total	$	283,108	$	(100,557	)	$	182,551	$	270,131	$	(75,459	)	$	194,672

¹Other intangibles primarily include favorable operating leases, customer relationships, customer lease contracts, non-compete agreements and reacquired franchise rights.

Total amortization expense of definite-lived intangible assets, which includes rent expense on favorable operating leases, included in operating expenses in the accompanying consolidated statements of earnings, was $27.7 million, $28.8 million and $28.2 million during the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows:



(In Thousands)
2018	$	28,018
2019	25,317
2020	24,037
2021	22,684
2022	22,547

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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