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Acquisitions | 3 Months Ended
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Mar. 31, 2019
Business Combinations [Abstract] |
Acquisitions | ACQUISITIONS Franchisee Acquisitions - 2018 During 2018, the Company acquired 152 Aaron's-branded franchised stores operated by franchisees for an aggregated purchase price of $189.8 million, exclusive of the settlement of pre-existing receivables and post-closing working capital settlements. The acquired operations generated revenues of $48.9 million and $1.3 million and earnings before income taxes of $3.0 million and $0.1 million during the three months ended March 31, 2019 and 2018, respectively which are included in our condensed consolidated statements of earnings. The results of the acquired operations were negatively impacted by acquisition-related transaction and transition costs and amortization expense of the various intangible assets recorded from the acquisitions. The revenues and earnings before income taxes of the acquired operations discussed above have not been adjusted for estimated non-retail sales and franchise royalties and fees and related expenses that the Company could have generated as revenue and expenses to the Company from the franchisees during the three months ended March 31, 2019 and 2018 had the transaction not been completed. Acquisition Accounting The 2018 acquisitions are benefiting the Company's omnichannel platform through added scale, strengthening its presence in certain geographic markets, and enhancing operational control, including compliance, and enabling the Company to execute its business transformation initiatives on a broader scale. The following table presents summaries of the preliminary fair value of the assets acquired and liabilities assumed in the franchisee acquisitions as of the respective acquisition dates:
(In Thousands) | Amounts Recognized as of Acquisition Dates (as of December 31, 2018)1 | Acquisition Accounting Adjustments | Amounts Recognized as of Acquisition Dates (as of March 31, 2019)
Purchase Price | $ | 189,826 |  | $ | — |  | $ | 189,826 |
Add: Settlement of Pre-existing Relationship | 5,405 |  | — |  | 5,405 |
Less: Working Capital Adjustments | 155 |  | — |  | 155 |
Aggregated Consideration Transferred | 195,386 |  | — |  | 195,386 |
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed |  |  |
Cash and Cash Equivalents | 43 |  | 7 |  | 50 |
Lease Merchandise | 59,616 |  | — |  | 59,616 |
Property, Plant and Equipment | 5,568 |  | — |  | 5,568 |
Other Intangibles 2 | 24,530 |  | (32 | ) | 24,498 |
Prepaid Expenses and Other Assets | 1,168 |  | 38 |  | 1,206 |
Total Identifiable Assets Acquired | 90,925 |  | 13 |  | 90,938 |
Accounts Payable and Accrued Expenses | (852 | ) | (58 | ) | (910 | )
Customer Deposits and Advance Payments | (5,156 | ) | — |  | (5,156 | )
Total Liabilities Assumed | (6,008 | ) | (58 | ) | (6,066 | )
Goodwill 3 | 110,469 |  | 45 |  | 110,514 |
Net Assets Acquired | $ | 84,917 |  | $ | (45 | ) | $ | 84,872 |
1 As previously reported in Note 2 to the consolidated financial statements in the 2018 Annual Report. 2 Identifiable intangible assets are further disaggregated in the table set forth below. 3 The total goodwill recognized in conjunction with the franchisee acquisitions, all of which is expected to be deductible for tax purposes, has been assigned to the Aaron’s Business reporting unit. The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, primarily due to synergies created from the expected future benefits to the Company’s omnichannel platform, implementation of the Company’s operational capabilities, expected inventory supply chain synergies between the Aaron’s Business and Progressive Leasing, and control of the Company’s brand name in new geographic markets. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. The preliminary acquisition accounting presented above is subject to refinement. The Company is still finalizing the valuation of assumed favorable and unfavorable real estate operating leases based on comparable market terms of similar leases at the acquisition dates and obtaining additional information regarding other assets. The Company expects these items to be finalized prior to the one-year anniversary date of the acquisitions. The estimated intangible assets attributable to the franchisee acquisitions are comprised of the following:
| Fair Value (in thousands) |  | Weighted Average Life (in years)
Non-compete Agreements | $ | 1,872 |  |  | 3.0
Customer Lease Contracts | 7,876 |  |  | 1.0
Customer Relationships | 10,087 |  |  | 3.0
Reacquired Franchise Rights | 4,663 |  |  | 3.9
Total Acquired Intangible Assets 1 | $ | 24,498 |  |  |
1 Acquired definite-lived intangible assets have a total weighted average life of 2.5 years. The Company incurred $1.4 million of acquisition-related costs in connection with the franchisee acquisitions, substantially all of which were incurred during 2018. These costs were included in operating expenses in the condensed consolidated statements of earnings. Other Acquisitions In addition to the acquisitions discussed above, the Company acquired the store operations of two franchisees during the three months ended March 31, 2019. Net cash outflows related to the acquisitions of other Aaron's franchisees, other rent-to-own store businesses, and customer contracts aggregated to $3.5 million and $4.8 million during the three months ended March 31, 2019 and 2018, respectively. The effect of these acquisitions on the condensed consolidated financial statements for the three months ended March 31, 2019 and 2018 was not significant.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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