Cover Page
Cover Page - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Feb. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-39628 | |
Entity Registrant Name | PROG HOLDINGS, INC. | |
Entity Central Index Key | 0001808834 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 85-2484385 | |
Entity Address, Address Line One | 256 W. Data Drive | |
Entity Address, City or Town | Draper, | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84020-2315 | |
City Area Code | 385 | |
Local Phone Number | 351-1369 | |
Title of 12(b) Security | Common Stock, $0.50 Par Value | |
Trading Symbol | PRG | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Public Float | $ 1,919,460,479 | |
Entity Common Stock, Shares Outstanding (in shares) | 67,727,278 | |
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the 2021 annual meeting of shareholders, to be filed subsequently with the Securities and Exchange Commission, or SEC, pursuant to Regulation 14A, are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS: | ||
Cash and Cash Equivalents | $ 36,645 | $ 57,755 |
Accounts Receivable (net of allowances of $56,364 in 2020 and $65,573 in 2019) | 61,254 | 67,080 |
Lease Merchandise (net of accumulated depreciation and allowances of $409,307 in 2020 and $428,288 in 2019) | 610,263 | 651,820 |
Loans Receivable (net of allowances and unamortized fees of $52,274 in 2020 and $21,134 in 2019) | 79,148 | 75,253 |
Property, Plant and Equipment, Net | 26,705 | 30,365 |
Operating Lease Right-of-Use Assets | 20,613 | 24,279 |
Goodwill | 288,801 | 288,801 |
Other Intangibles, Net | 154,421 | 176,562 |
Income Tax Receivable | 0 | 17,607 |
Prepaid Expenses and Other Assets | 39,554 | 27,456 |
Assets of Discontinued Operations | 0 | 1,880,822 |
Total Assets | 1,317,404 | 3,297,800 |
LIABILITIES & SHAREHOLDERS’ EQUITY: | ||
Accounts Payable and Accrued Expenses | 78,249 | 58,622 |
Accrued Regulatory Expense | 0 | 175,000 |
Deferred Income Tax Liability | 126,938 | 100,292 |
Customer Deposits and Advance Payments | 46,565 | 44,222 |
Operating Lease Liabilities | 29,516 | 33,904 |
Debt | 50,000 | 0 |
Liabilities of Discontinued Operations | 0 | 1,148,501 |
Total Liabilities | 331,268 | 1,560,541 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at December 31, 2020 and 2019; Shares Issued: 90,752,123 at December 31, 2020 and 2019 | 45,376 | 45,376 |
Additional Paid-in Capital | 318,263 | 290,229 |
Retained Earnings | 1,236,378 | 2,029,613 |
Accumulated Other Comprehensive Loss | 0 | (19) |
Total Stockholders' Equity before Treasury Stock | 1,600,017 | 2,365,199 |
Less: Treasury Shares at Cost | ||
Common Stock: 23,029,434 Shares at December 31, 2020 and 24,034,053 at December 31, 2019 | (613,881) | (627,940) |
Total Shareholders’ Equity | 986,136 | 1,737,259 |
Total Liabilities & Shareholders’ Equity | $ 1,317,404 | $ 3,297,800 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowances | $ 56,364 | $ 65,573 |
Lease Merchandise, accumulated depreciation | 409,307 | 428,288 |
Loans Receivable, allowances | $ 52,274 | $ 21,134 |
Common Stock, Par Value (in dollars per share) | $ 0.50 | $ 0.50 |
Common Stock, Authorized (in shares) | 225,000,000 | 225,000,000 |
Common Stock, Issued (in shares) | 90,752,123 | 90,752,123 |
Treasury Shares (in shares) | 23,029,434 | 24,034,053 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUES: | |||
Revenues | $ 2,484,595 | $ 2,163,179 | $ 2,036,299 |
Interest and Fee Income, Loans and Leases | 41,190 | 35,046 | 37,318 |
COSTS AND EXPENSES: | |||
Depreciation of Lease Merchandise | 1,690,922 | 1,445,027 | 1,219,034 |
Provision for Lease Merchandise Write-offs | 131,332 | 153,516 | 123,347 |
Operating Expenses | 373,460 | 357,762 | 537,119 |
Legal and Regulatory (Income) Expense, Net of Insurance Recoveries | (835) | 179,261 | 0 |
Separation Related Charges | 17,953 | 0 | 0 |
Costs and Expenses | 2,212,832 | 2,135,566 | 1,879,500 |
OPERATING PROFIT | 271,763 | 27,613 | 156,799 |
Interest Expense | (187) | 0 | 0 |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE | 271,576 | 27,613 | 156,799 |
INCOME TAX EXPENSE | 37,949 | 52,228 | 31,496 |
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS | 233,627 | (24,615) | 125,303 |
Earnings from Discontinued Operations, Net of Tax | (295,092) | 56,087 | 70,907 |
Net (Loss) Earnings | $ (61,465) | $ 31,472 | $ 196,210 |
BASIC EARNINGS (LOSS) PER SHARE: | |||
Continuing Operations (in dollars per share) | $ 3.47 | $ (0.37) | $ 1.81 |
Discontinued Operations (in dollars per share) | (4.39) | 0.83 | 1.03 |
Earnings Per Share (in dollars per share) | (0.91) | 0.47 | 2.84 |
DILUTED EARNINGS (LOSS) PER SHARE: | |||
Continuing Operations (in dollars per share) | 3.43 | (0.37) | 1.77 |
Discontinued Operations (in dollars per share) | (4.34) | 0.83 | 1.01 |
Earnings Per Share Assuming Dilution (in dollars per share) | $ (0.90) | $ 0.47 | $ 2.78 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic ( in shares) | 67,261 | 67,322 | 69,128 |
Assuming Dilution (in shares) | 68,022 | 67,322 | 70,597 |
Lease Revenues and Fees | |||
REVENUES: | |||
Revenues | $ 2,443,405 | $ 2,128,133 | $ 1,998,981 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (Loss) Earnings | $ (61,465) | $ 31,472 | $ 196,210 |
Other Comprehensive (Loss) Income: | |||
Foreign Currency Translation Adjustment | (959) | 1,068 | (1,861) |
Total Other Comprehensive (Loss) Income | (959) | 1,068 | (1,861) |
Comprehensive (Loss) Income | $ (62,424) | $ 32,540 | $ 194,349 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Dec. 31, 2017 | (20,733) | |||||||
Beginning Balance at Dec. 31, 2017 | $ 1,728,004 | $ (1,729) | $ (407,713) | $ 45,376 | $ 270,043 | $ 1,819,524 | $ (1,729) | $ 774 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends | (8,661) | (8,661) | ||||||
Stock-Based Compensation | 26,852 | 26,852 | ||||||
Reissued Shares (in shares) | 915 | |||||||
Reissued Shares | (9,372) | $ 8,601 | (17,973) | |||||
Repurchased Shares (in shares) | (3,750) | |||||||
Repurchased Shares | (168,735) | $ (168,735) | ||||||
Net (Loss) Earnings | 196,210 | 196,210 | ||||||
Foreign Currency Translation Adjustment | (1,861) | (1,861) | ||||||
Ending Balance (in shares) at Dec. 31, 2018 | (23,568) | |||||||
Ending Balance at Dec. 31, 2018 | 1,760,708 | 2,592 | $ (567,847) | 45,376 | 278,922 | 2,005,344 | 2,592 | (1,087) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends | (9,795) | (9,795) | ||||||
Stock-Based Compensation | 25,758 | 25,758 | ||||||
Reissued Shares (in shares) | 690 | |||||||
Reissued Shares | (5,289) | $ 9,162 | (14,451) | |||||
Repurchased Shares (in shares) | (1,156) | |||||||
Repurchased Shares | (69,255) | $ (69,255) | ||||||
Net (Loss) Earnings | 31,472 | 31,472 | ||||||
Foreign Currency Translation Adjustment | 1,068 | 1,068 | ||||||
Ending Balance (in shares) at Dec. 31, 2019 | (24,034) | |||||||
Ending Balance at Dec. 31, 2019 | 1,737,259 | $ (6,715) | $ (627,940) | 45,376 | 290,229 | 2,029,613 | $ (6,715) | (19) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends | (11,194) | (11,194) | ||||||
Stock-Based Compensation | 41,465 | 41,465 | ||||||
Distribution to The Aaron's Company | (712,883) | (713,861) | 978 | |||||
Reissued Shares (in shares) | 1,005 | |||||||
Reissued Shares | 628 | $ 14,059 | (13,431) | |||||
Net (Loss) Earnings | (61,465) | (61,465) | ||||||
Foreign Currency Translation Adjustment | (959) | (959) | ||||||
Ending Balance (in shares) at Dec. 31, 2020 | (23,029) | |||||||
Ending Balance at Dec. 31, 2020 | $ 986,136 | $ (613,881) | $ 45,376 | $ 318,263 | $ 1,236,378 | $ 0 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends, per share (in dollars per share) | $ 0.165 | $ 0.145 | $ 0.125 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201409Member |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES: | |||
Net (Loss) Earnings | $ (61,465) | $ 31,472 | $ 196,210 |
Adjustments to Reconcile Net (Loss) Earnings to Net Cash Provided by Operating Activities: | |||
Depreciation of Lease Merchandise | 2,163,443 | 1,972,358 | 1,727,904 |
Other Depreciation and Amortization | 93,814 | 105,061 | 94,150 |
Accounts Receivable Provision | 254,168 | 322,963 | 268,088 |
Provision for Credit Losses on Loans Receivable | 34,038 | 21,667 | 21,063 |
Stock-Based Compensation | 41,218 | 26,548 | 28,182 |
Deferred Income Taxes | (141,407) | 49,967 | 48,359 |
Impairment of Goodwill | 446,893 | 0 | 0 |
Impairment of Assets | 23,788 | 30,344 | 20,098 |
Non-Cash Lease Expense | 92,277 | 114,934 | 0 |
Other Changes, Net | 9,172 | (9,886) | (2,198) |
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions: | |||
Additions to Lease Merchandise | (2,351,064) | (2,484,755) | (2,234,646) |
Book Value of Lease Merchandise Sold or Disposed | 317,763 | 401,960 | 398,748 |
Accounts Receivable | (250,159) | (331,636) | (270,888) |
Prepaid Expenses and Other Assets | 7,753 | (25,860) | 5,903 |
Income Tax Receivable | 17,066 | 10,458 | 70,875 |
Operating Lease Right-of-Use Assets and Liabilities | (109,356) | (124,384) | 0 |
Accounts Payable and Accrued Expenses | 39,660 | 20,183 | (20,367) |
Accrued Regulatory Expense | (175,000) | 175,000 | 0 |
Customer Deposits and Advance Payments | 3,362 | 10,791 | 5,017 |
Cash Provided by Operating Activities | 455,964 | 317,185 | 356,498 |
INVESTING ACTIVITIES: | |||
Investments in Loans Receivable | (112,596) | (70,313) | (64,914) |
Proceeds from Loans Receivable | 69,358 | 53,170 | 57,328 |
Proceeds from Investments | 0 | 1,212 | 3,066 |
Outflows on Purchases of Property, Plant & Equipment | (64,345) | (92,963) | (78,845) |
Proceeds from Property, Plant, and Equipment | 7,482 | 14,090 | 9,191 |
Outflows on Acquisitions of Businesses and Customer Agreements, Net of Cash Acquired | (14,793) | (14,285) | (189,901) |
Proceeds from Dispositions of Businesses and Customer Agreements, Net of Cash Disposed | 359 | 2,813 | 942 |
Cash Used in Investing Activities | (114,535) | (106,276) | (263,133) |
FINANCING ACTIVITIES: | |||
Borrowings (Repayments) on Revolving Facility, Net | (16,000) | ||
Borrowings (Repayments) on Revolving Facility, Net | 50,000 | 16,000 | |
Proceeds from Debt | 5,625 | 0 | 137,500 |
Repayments on Debt | (347,646) | (68,531) | (97,583) |
Acquisition of Treasury Stock | 0 | (69,255) | (168,735) |
Dividends Paid | (13,778) | (9,437) | (6,243) |
Issuance of Stock Under Stock Option Plans | 12,362 | 7,749 | 7,975 |
Shares Withheld for Tax Payments | (11,734) | (13,038) | (17,347) |
Debt Issuance Costs | (3,233) | (40) | (535) |
Transfer of Cash to The Aaron's Company | (54,150) | 0 | 0 |
Cash Used in Financing Activities | (362,554) | (168,552) | (128,968) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 15 | 120 | (156) |
(Decrease) Increase in Cash and Cash Equivalents | (21,110) | 42,477 | (35,759) |
Cash and Cash Equivalents at Beginning of Year | 57,755 | 15,278 | 51,037 |
Cash and Cash Equivalents at End of Year | 36,645 | 57,755 | 15,278 |
Net Cash Paid (Received) During the Year: | |||
Interest | 10,447 | 16,460 | 16,243 |
Income Taxes | $ 29,000 | $ (726) | $ (63,829) |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As described elsewhere in this Annual Report on Form 10-K, the Coronavirus Disease ("COVID-19") pandemic has led to significant market disruption and has impacted many aspects of our operations, directly and indirectly. Throughout these notes to the consolidated financial statements, the impacts of the COVID-19 pandemic on the financial results for the year ended December 31, 2020 have been identified under the respective sections. Additionally, there are significant uncertainties regarding the future scope and nature of these impacts, which continue to evolve. For a discussion of operational measures taken, as well as trends and uncertainties that have affected our business, as a result of the COVID-19 pandemic see Part II, Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations", including the "Recent Developments and Operational Measures Taken by Us in Response to the COVID-19 Pandemic , " "Results of Operations", "Liquidity and Capital Resources", and Part 1, Item 1A "Risk Factors". Description of Business PROG Holdings, Inc. ("we," "our," "us," the "Company", or "PROG Holdings") is a financial technology holding company with two operating and reportable segments: (i) Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers,through point-of-sale and e-commerce retail partners, via in-store, mobile and online solutions; and (ii) Vive Financial ("Vive"), which provides customers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products, through private label and Vive-branded cards. On November 30, 2020, PROG Holdings, Inc. (previously Aaron's Holdings Company, Inc.) completed the separation of its Aaron's Business segment from its Progressive Leasing and Vive segments. The separation was effected through a tax-free distribution of all outstanding shares of common stock of The Aaron's Company, Inc. ("The Aaron's Company") to the PROG Holdings shareholders of record as of the close of business on November 27, 2020 (referred to as the "separation and distribution transaction"). Through that distribution, shareholders of PROG Holdings received one share of The Aaron's Company for every two shares of PROG Holdings common stock. Upon completion of the separation and distribution transaction on November 30, 2020, The Aaron's Company became an independent, publicly traded company under the symbol "AAN" on the New York Stock Exchange, while PROG Holdings continued to be listed on the New York Stock Exchange under the new symbol "PRG". Our Progressive Leasing segment provides consumers with lease-purchase solutions through approximately 25,000 third-party point-of-sale partner locations ("POS partners") and e-commerce websites in 45 states and the District of Columbia. It does so by purchasing merchandise from the POS partners desired by customers and, in turn, leasing that merchandise to the customers through a cancellable lease-to-own transaction. Progressive Leasing consequently has no stores of its own, but rather offers lease-purchase solutions to the customers of traditional and e-commerce retailers. Our Vive segment primarily serves customers that may not qualify for traditional prime lending offers who desire to purchase goods and services from participating merchants. Vive offers customized programs, with services that include revolving loans through private label and Vive-branded credit cards. Vive's current network of over 3,000 POS partner locations and e-commerce websites includes furniture, mattresses, fitness equipment, and home improvement retailers, as well as medical and dental service providers. Basis of Presentation The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Generally, actual experience has been consistent with management’s prior estimates and assumptions. Management does not believe these estimates or assumptions will change significantly in the future absent unidentified and unforeseen events, such as higher forecasted unemployment rates and the observed significant market volatility associated with the COVID-19 pandemic. Principles of Consolidation The consolidated financial statements include the accounts of PROG Holdings, Inc. and its subsidiaries, each of which is wholly-owned. Intercompany balances and transactions between consolidated entities have been eliminated. Revenue Recognition Lease Revenues and Fees Progressive Leasing provides merchandise, consisting primarily of furniture, appliances, electronics, jewelry, mobile phones and accessories, bedding, and a variety of other products, to its customers for lease under certain terms agreed to by the customer. Progressive Leasing offers customers of traditional and e-commerce retailers a lease-purchase solution through leases with payment terms that can generally be renewed up to 12 months. Progressive Leasing does not require deposits upon inception of customer agreements. The customer has the right to acquire ownership either through early buyout options or through payment of all required lease payments. The agreements are cancellable at any time by either party without penalty. Progressive Leasing lease revenues are earned prior to the lease payment due date and are recorded net of related sales taxes as earned. Payment due date terms include weekly, bi-weekly, and monthly frequencies. Revenue recorded prior to the payment due date results in unbilled receivables recognized in accounts receivable, net of allowances in the accompanying consolidated balance sheets. Beginning January 1, 2019, Progressive Leasing lease revenues are recorded net of a provision for returns and uncollectible renewal payments. For periods prior to 2019, Progressive Leasing's provision for returns and uncollectible renewal payments were recorded within operating expenses in the consolidated statements of earnings. All of the Company’s customer lease agreements are considered operating leases. The Company maintains ownership of the lease merchandise until all payment obligations are satisfied under the lease ownership agreements. Initial direct costs related to lease purchase agreements are capitalized as incurred and amortized as operating expense over the estimated lease term. The capitalized costs have been classified within prepaid expenses and other assets in the accompanying consolidated balance sheets. Interest and Fees on Loans Receivable Vive extends or declines credit to an applicant through its bank partners based upon the applicant’s credit rating and other factors. Qualifying applicants receive a credit card to finance their initial purchase and to use in subsequent purchases at the merchant or other participating merchants for an initial 24-month period, which Vive may renew if the cardholder remains in good standing. Vive acquires the loan receivable from merchants through its third-party bank partners at a discount from the face value of the loan. The discount is comprised of a merchant fee discount and a promotional fee discount, if applicable. The merchant fee discount represents a pre-negotiated, nonrefundable discount that generally ranges from 3% to 25% of the loan face value. The discount is designed to cover the risk of loss related to the portfolio of cardholder charges and Vive’s direct origination costs. The merchant fee discount and origination costs are presented net on the consolidated balance sheets in loans receivable. Cardholders generally have an initial 24-month period that the card is active. The merchant fee discount, net of the origination costs, is amortized on a net basis and is recorded as interest and fee revenue on loans receivable in the consolidated statements of earnings on a straight-line basis over the initial 24-month period. The discount from the face value of the loan on the acquisition of the loan receivable from the merchant through the third-party bank partners may also include a promotional fee discount, which generally ranges from 1% to 8%. The promotional fee discount is intended to compensate the holder of the loan receivable (i.e., Vive) for deferred or reduced interest rates that are offered to the cardholder for a specified period on the outstanding loan balance (generally for six six The customer is typically required to make monthly minimum payments of at least 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 27% to 35.99%, are compounded daily for cards that do not qualify for deferred or reduced interest promotional periods. Interest income, which is recognized based upon the amount of the loans outstanding, is recognized as interest and fees on loans receivable when earned if collectibility is reasonably assured. For credit cards that provide deferred interest, if the balance is not paid off during the promotional period or if the cardholder defaults, interest is billed to the customers at standard rates and the cumulative amount owed is charged to the cardholder account in the month that the promotional period expires. For credit cards that provide reduced interest, if the balance is not paid off during the promotional period, interest is billed to the cardholder at standard rates in the month that the promotional period expires or when the cardholder defaults. The Company recognizes interest revenue during the promotional period based on its historical experience related to cardholders that fail to pay off balances during the promotional period if collectibility is reasonably assured. Annual fees are charged to cardholders at the commencement of the loan and on each subsequent anniversary date. Annual fees are deferred and recognized into revenue on a straight-line basis over a one-year period. Under the provisions of the credit card agreements, the Company also may assess fees for service calls or for missed or late payments, which are recognized as revenue in the billing period in which they are assessed if collectibility is reasonably assured. Annual fees and other fees are recognized as interest and fee revenue on loans receivable in the consolidated statements of earnings. Lease Merchandise Progressive Leasing merchandise consists primarily of furniture, appliances, electronics, jewelry, mobile phones and accessories, bedding, and a variety of other products and is recorded at the lower of depreciated cost or net realizable value. Progressive Leasing depreciates lease merchandise to a 0% salvage value generally over 12 months. Depreciation is accelerated upon early buyout. All of Progressive Leasing's merchandise, net of accumulated depreciation and allowances, represents on-lease merchandise. The Company records a provision for write-offs on the allowance method. The allowance for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based on historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends including, but not limited to, the potential unfavorable impacts of the COVID-19 pandemic on our business. Given the significant uncertainty regarding the impacts of the COVID-19 pandemic on our business, a high level of estimation was involved in determining the allowance as of December 31, 2020; therefore, actual lease merchandise write-offs could differ materially from the allowance. The following table shows the components of the allowance for lease merchandise write-offs, which is included within lease merchandise, net in the consolidated balance sheets: Year Ended December 31, (In Thousands) 2020 2019 2018 Beginning Balance $ 47,362 $ 35,784 $ 26,642 Merchandise Written off, net of Recoveries (132,702) (141,938) (114,205) Provision for Write-offs 131,332 153,516 123,347 Ending Balance $ 45,992 $ 47,362 $ 35,784 Vendor Incentives and Rebates Provided to POS Partners The Company has agreements with some of its POS partners that require additional consideration to be paid to the POS partner, including payments for exclusivity, rebates based on lease volume originations generated through the POS partners, and payments to assist the POS partners with marketing or other development initiatives. Payments made to POS partners that provide for exclusivity to the Company for lease-to-own transactions with customers of the POS partner are expensed on a straight-line basis over the exclusivity term. Rebates are accrued over the period the POS partner is earning the rebate, which is typically based on quarterly or annual lease originations volumes. Payments made to POS partners for marketing or development initiatives are expensed on a straight-line basis over the period the POS partner is earning the funds or the specified marketing term. The Company expensed $13.0 million, $14.0 million, and $7.5 million, for the years ended December 31, 2020, 2019, and 2018, respectively, related to additional consideration provided to POS partners, which is classified within operating expenses in the consolidated statements of earnings. Advertising The Company expenses advertising costs as incurred. Total advertising costs amounted to $6.6 million, $7.0 million and $4.4 million for the years ended December 31, 2020, 2019 and 2018, respectively, and are classified within operating expenses in the consolidated statements of earnings. Stock-Based Compensation The Company has stock-based employee compensation plans, which are more fully described in Note 12 to these consolidated financial statements. The Company estimates the fair value for the options granted on the grant date using a Black-Scholes-Merton option-pricing model. The fair value of each share of restricted stock units ("RSUs"), restricted stock awards ("RSAs") and performance share units ("PSUs") awarded is equal to the market value of a share of the Company’s common stock on the grant date. The Company estimates the fair value of awards issued under the Company's employee stock purchase plan ("ESPP") using a series of Black-Scholes pricing models that consider the components of the "lookback" feature of the plan, including the underlying stock, call option and put option. The design of awards issued under the Company's ESPP is described in more detail in Note 12 to these consolidated financial statements. Deferred Income Taxes Deferred income taxes represent primarily temporary differences between the amounts of assets and liabilities for financial and tax reporting purposes. The Company’s largest temporary differences arise principally from the use of accelerated depreciation methods on lease merchandise for tax purposes. Earnings Per Share Earnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. The computation of earnings per share assuming dilution includes the dilutive effect of stock options, RSUs, RSAs, PSUs and awards issuable under the Company's ESPP (collectively, "share-based awards") as determined under the treasury stock method. The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2020 2019 2018 Weighted Average Shares Outstanding 67,261 67,322 69,128 Dilutive Effect of Share-Based Awards 761 — 1,469 Weighted Average Shares Outstanding Assuming Dilution 68,022 67,322 70,597 Approximately 747,000, 1,726,000 and 347,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the years ended December 31, 2020, 2019 and 2018, respectively, as the awards would have been antidilutive for the periods presented. Cash and Cash Equivalents The Company classifies highly liquid investments with maturity dates of three months or less when purchased as cash equivalents. The Company maintains its cash and cash equivalents in a limited number of banks. Bank balances typically exceed coverage provided by the Federal Deposit Insurance Corporation. However, due to the size and strength of the banks in which the balances are held, any exposure to loss is believed to be minimal. Accounts Receivable Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and amounted to $61.2 million and $67.1 million, net of allowances, as of December 31, 2020 and December 31, 2019, respectively. The Company maintains an accounts receivable allowance, which primarily relates to its Progressive Leasing operations and, to a lesser extent, receivables from Vive's POS partners. The Company’s policy is to record an allowance for returns and uncollectible renewal payments based on historical collection experience. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends including, but not limited to, the potential unfavorable impacts of the COVID-19 pandemic on our businesses. During 2019, the Company adopted ASC 842, which resulted in the Progressive Leasing provision for returns and uncollectible renewal payments being recorded as a reduction of lease revenue and fees within the consolidated statements of earnings beginning January 1, 2019. The provision for returns and uncollectible renewal payments for periods prior to 2019 are reported herein as bad debt expense within operating expenses in the consolidated statements of earnings. The Progressive Leasing segment writes off lease receivables that are 120 days or more contractually past due. Vive's allowance for uncollectible merchant accounts receivable, which primarily related to cardholder returns and refunds, is recorded as bad debt expense within operating expenses in the consolidated statements of earnings. See below for discussion of Vive's loans receivable and related allowance for loan losses. The following table shows the components of the accounts receivable allowance: Year Ended December 31, (In Thousands) 2020 2019 2018 Beginning Balance $ 65,573 $ 53,159 $ 39,954 Accounts Written Off, net of Recoveries (232,566) (263,828) (214,755) Accounts Receivable Provision 223,357 276,242 227,960 Ending Balance $ 56,364 $ 65,573 $ 53,159 The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the fiscal years presented: Year Ended December 31, (In Thousands) 2020 2019 2018 Bad Debt Expense 1 $ 86 $ 1,337 $ 227,960 Provision for Returns and Uncollected Renewal Payments 2 223,271 274,905 — Accounts Receivable Provision $ 223,357 $ 276,242 $ 227,960 1 Bad debt expense is recorded within operating expenses in the consolidated financial statements. 2 In accordance with the adoption of ASC 842, Progressive Leasing provision for returns and uncollectible renewal payments are recorded as a reduction to lease revenues and fees within the consolidated financial statements beginning January 1, 2019. Prior to January 1, 2019, Progressive Leasing provision for returns and uncollectible renewal payments were recorded as bad debt expense within operating expenses in the consolidated financial statements. Loans Receivable, Net Gross loans receivable represents the principal balances of credit card charges at Vive's participating merchants that remain due from cardholders, plus unpaid interest and fees due from cardholders. The allowance and unamortized fees represent uncollectible amounts; merchant fee discounts, net of capitalized origination costs; promotional fee discounts; and deferred annual card fees. Economic conditions and loan performance trends are closely monitored to manage and evaluate exposure to credit risk. Trends in delinquency rates are an indicator of credit risk within the loans receivable portfolio, including the migration of loans between delinquency categories over time. Charge-off rates represent another indicator of the potential for future credit losses. The risk in the loans receivable portfolio is correlated with broad economic trends, such as current and projected unemployment rates, stock market volatility, and changes in medium and long-term risk-free rates, which are considered in determining the allowance for loan losses and can have a material effect on credit performance. Effective January 1, 2020 with the adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments ("CECL"), as discussed within "Recent Accounting Pronouncements" below, expected lifetime losses on loans receivable are recognized upon loan origination, which requires the Company to make its best estimate of probable lifetime losses at the time of origination. Our credit card loans do not have contractually stated maturity dates, which requires the Company to estimate an average life of loan by analyzing historical payment trends to determine an expected remaining life of the loan balance. The Company segments its loans receivable portfolio into homogenous pools by FICO score and by delinquency status and evaluates loans receivable collectively for impairment when similar risk characteristics exist. The Company calculates the allowance for loan losses based on internal historical loss information and incorporates observable and forecasted macroeconomic data over a twelve-month reasonable and supportable forecast period. Incorporating macroeconomic data could have a material impact on the measurement of the allowance to the extent that forecasted data changes significantly, such as higher forecasted unemployment rates and the observed significant market volatility associated with the COVID-19 pandemic. For any periods beyond the twelve-month reasonable and supportable forecast period described above, the Company reverts to using historical loss information on a straight-line basis over a period of six months and utilizes historical loss information for the remaining life of the portfolio. The Company may also consider other qualitative factors in estimating the allowance, as necessary. For the purposes of determining the allowance as of December 31, 2020, management considered other qualitative factors such as the beneficial impact of government stimulus measures to our customer base that were not fully factored into the macroeconomic forecasted data. We believe those stimulus measures may have contributed to the recent favorable cardholder payment trends we are experiencing at Vive, and we believe that additional government stimulus measures enacted in December 2020 could positively influence future cardholder payment trends as well. We also considered the uncertain nature and extent of any future government stimulus programs and the potential impact, if any, these programs may have on the ability of Vive's cardholders to make payments as they come due. The allowance for loan losses is maintained at a level considered appropriate to cover expected future losses of principal, interest and fees on active loans in the loans receivable portfolio. The appropriateness of the allowance is evaluated at each period end. To the extent that actual results differ from estimates of uncollectible loans receivable, including the significant uncertainties caused by the COVID-19 pandemic, the Company's results of operations and liquidity could be materially affected. Delinquent loans receivable includes those that are 30 days or more past due based on their contractual billing dates. In response to the COVID-19 pandemic, the Company has granted affected customers payment deferrals while allowing them to maintain their delinquency status for an additional 30 days per deferral. The Company places loans receivable on nonaccrual status when they are greater than 90 days past due or upon notification of cardholder bankruptcy, death or fraud. The Company discontinues accruing interest and fees and amortizing merchant fee discounts and promotional fee discounts for loans receivable in nonaccrual status. Loans receivable are removed from nonaccrual status when cardholder payments resume, the loan becomes 90 days or less past due and collection of the remaining amounts outstanding is deemed probable. Payments received on nonaccrual loans are allocated according to the same payment hierarchy methodology applied to loans that are accruing interest. Loans receivable are charged off no later than the end of the following month after the billing cycle in which the loans receivable become 120 days past due. Vive extends or declines credit to an applicant through its bank partners based upon the applicant’s credit rating and other factors. Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2020 and 2019 by FICO score as determined at the time of loan origination: December 31, FICO Score Category 2020 2019 600 or Less 7.5 % 6.7 % Between 600 and 700 79.3 % 80.1 % 700 or Greater 13.2 % 13.2 % Property, Plant and Equipment The Company records property, plant and equipment at cost. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the respective assets, which range from three one Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software, which ranges from five Gains and losses related to dispositions and retirements are recognized as incurred. Maintenance and repairs are also expensed as incurred, and leasehold improvements are capitalized and amortized over the lesser of the lease term or the asset's useful life. Depreciation expense for property, plant and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $9.7 million, $9.1 million and $7.1 million during the years ended December 31, 2020, 2019 and 2018, respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property, plant and equipment, was $3.4 million, $2.9 million and $0.6 million during the years ended December 31, 2020, 2019 and 2018, respectively. The Company assesses its long-lived assets other than goodwill and other indefinite-lived intangible assets for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. If it is determined that the carrying amount of an asset is not recoverable, the Company compares the carrying amount of the asset to its fair value as estimated using discounted expected future cash flows, market values or replacement values for similar assets. The amount by which the carrying amount exceeds the fair value of the asset, if any, is recognized as an impairment loss. Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: December 31, (In Thousands) 2020 2019 Prepaid Expenses $ 23,030 $ 17,545 Unamortized Initial Direct Costs on Lease Agreement Originations 4,986 5,623 Prepaid Insurance 3,639 — Other Assets 7,899 4,288 $ 39,554 $ 27,456 Goodwill Goodwill represents the excess of the purchase price paid over the fair value of the identifiable net tangible and intangible assets acquired in connection with business acquisitions. Progressive Leasing is the only reporting unit with goodwill. Impairment occurs when the carrying amount of goodwill is not recoverable from future cash flows. The Company’s goodwill is not amortized but is subject to an impairment test at the reporting unit level annually as of October 1 and more frequently if events or circumstances indicate that impairment may have occurred. Factors which could necessitate an interim impairment assessment include a sustained decline in the Company’s stock price, prolonged negative industry or economic trends and significant underperformance relative to historical results, projected future operating results, or the Company fails to successfully execute on one or more elements of Progressive Leasing's strategic plans. The Company completed its annual goodwill impairment test as of October 1, 2020 and determined that no impairment had occurred. The Company determined that there were no events that occurred or circumstances that changed in the fourth quarter of 2020 that would more likely than not reduce the fair value of Progressive Leasing below its carrying amount. Other Intangibles Other intangibles represent identifiable intangible assets acquired as a result of the Progressive Leasing and Vive acquisitions, which the Company recorded at the estimated fair value as of the respective acquisition dates. The Company amortized the definite-lived intangible assets acquired as a result of the Vive acquisition on a straight-line basis over five years. The Company amortizes the definite-lived intangible assets acquired as a result of the Progressive Leasing acquisition on a straight-line basis over periods ranging ten Indefinite-lived intangible assets represent the value of trade names and trade marks acquired as part of the Progressive Leasing acquisition. At the date of acquisition, the Company determined that no legal, regulatory, contractual, competitive, economic or other factors limit the useful life of the trade name intangible asset and, therefore, the useful life is considered indefinite. The Company reassesses this conclusion quarterly and continues to believe the useful life of this asset is indefinite. Indefinite-lived intangible assets are not amortized but are subject to an impairment test annually and when events or circumstances indicate that impairment may have occurred. The Company performs the impairment test for its indefinite-lived intangible assets on October 1 in conjunction with its annual goodwill impairment test. The Company completed its indefinite-lived intangible asset impairment test as of October 1, 2020 and determined that no impairment had occurred. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: December 31, (In Thousands) 2020 2019 Accounts Payable $ 8,630 $ 12,497 Accrued Salaries and Benefits 18,120 12,598 Accrued Sales and Personal Property Taxes 12,933 11,633 Income Taxes Payable 18,183 — Other Accrued Expenses and Liabilities 20,383 21,894 $ 78,249 $ 58,622 Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company measures a liability related to its non-qualified deferred compensation plan, which represents benefits accrued for plan participants and is valued at the quoted market prices of the participants’ investment elections, at fair value on a recurring basis. The Company maintains certain financial assets and liabilities that are not measured at fair value but for which fair value is disclosed. The fair values of the Company’s other current financial assets and liabilities, including cash and cash equivalents, accounts receivable and accounts payable, approximate their carrying values due to their short-term nature. The fair value of any revolving credit borrowings also approximate their carrying amounts. Recent Accounting Pronouncements Adopted Leases . In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases ("ASC 842"), which requires lessees to recognize assets and liabilities for most leases and changes certain aspects of lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginnin |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Separation and Distribution of the Aaron’s Business Segment On November 30, 2020, PROG Holdings completed the separation of its Aaron's Business segment from its Progressive Leasing and Vive segments. See Note 1 to these consolidated financial statements for further details. Prior to the separation and distribution transaction, the results of The Aaron's Company were reported within the Company’s Aaron’s Business segment. All direct revenues and expenses of the Aaron's Business operations have been classified within discontinued operations, net of income tax, within our consolidated statements of earnings for all periods through the separation and distribution date of November 30, 2020. Corporate overhead costs previously reported as expenses of the Aaron’s Business segment did not qualify for classification within discontinued operations and have been classified as expenses within continuing operations for all periods presented through the separation and distribution date of November 30, 2020. Results from continuing operations during the year ended December 31, 2020 include $18.0 million of pre-tax stock-based compensation expense associated with the modification of outstanding equity awards and executive retirement charges related to the separation and distribution transaction, which are classified as separation related charges within our consolidated statements of earnings. An additional $36.5 million of pre-tax separation and distribution transaction expenses are recognized within discontinued operations during the year ended December 31, 2020. In connection with the completion of the separation and distribution transaction, the Company repaid the remaining $285.0 million of outstanding borrowings under its previous revolving credit and term loan agreement and senior unsecured notes. The Company incurred a pre-tax loss on extinguishment of $4.1 million in connection with the repayment of the outstanding borrowings, which is classified within discontinued operations in the consolidated statements of earnings. As repayment of the prior revolving credit and term loan borrowings and senior unsecured notes was required under the terms of the loan agreements in the event of a fundamental change to the Company and the legal obligor of the debt was a legal entity of The Aaron's Company, we have classified the loss on extinguishment and the related historical interest expense of $9.9 million, $17.0 million, and $16.4 million during the years ended December 31, 2020, 2019 and 2018, respectively within discontinued operations in the consolidated statements of earnings. The corresponding debt balance of $341.0 million outstanding as of December 31, 2019 has been classified within liabilities of discontinued operations within the consolidated balance sheet. In order to facilitate an effective separation and distribution, the Company entered into several agreements with The Aaron's Company, which governs the nature of the relationship between and responsibilities of the two companies following the separation. These agreements include a Separation Agreement, a Transition Services Agreement, an Employee Matters Agreement, a Tax Matters Agreement, and an Assignment Agreement. Under the Transition Services Agreement, PROG Holdings and The Aaron's Company agreed to provide each other with certain transitional services including, but not limited to, employee benefits administration, information technology, accounting, tax, internal audit, and finance services for transitional periods that generally do not exceed twelve months. Payments and expense reimbursements for transition services were not material during the year ended December 31, 2020 and are not expected to be material in future periods. Summarized Historical Financial Information of Discontinued Operations The following table summarizes the major classes of line items constituting (loss) earnings of The Aaron's Company, which are included within the (loss) income from discontinued operations, net of income tax, in the consolidated statements of earnings and the operating and investing cash flows of the discontinued operations. 11 Months Ended November 30, Year Ended December 31, (In Thousands) 2020 2019 2018 Total Revenues $ 1,591,217 $ 1,784,477 $ 1,792,624 Operating (Loss) Profit (381,244) 78,261 132,810 (Loss) Earnings before Income Taxes from Discontinued Operations 1 (393,415) 65,175 95,405 Income Tax (Benefit) Expense from Discontinued Operations (98,323) 9,088 24,498 (Loss) Earnings from Discontinued Operations, Net of Income Tax $ (295,092) $ 56,087 $ 70,907 Cash Flows: Cash Provided by Operating Activities from Discontinued Operations $ 193,319 $ 172,314 $ 199,539 Cash Used in Investing Activities from Discontinued Operations $ (64,508) $ (76,187) $ (246,002) 1 (Loss) Earnings before Income Taxes from Discontinued Operations during the year ended December 31, 2020 reflects a $446.9 million goodwill impairment loss related to the Aaron's Business segment, $36.5 million of third-party transaction costs related to the separation and distribution transaction, $14.7 million related to a sales and marketing early termination fee, and a $4.1 million loss on debt extinguishment. The following table summarizes the assets and liabilities of discontinued operations at December 31, 2019: (In Thousands) December 31, 2019 ASSETS: Cash and Cash Equivalents $ — Accounts Receivable, Net 37,079 Lease Merchandise, Net 781,598 Property, Plant and Equipment, Net 207,301 Operating Lease Right-of-Use Assets 304,932 Goodwill 447,780 Other Intangibles, Net 14,234 Income Tax Receivable 1,083 Prepaid Expenses and Other Assets 86,815 Total Assets of Discontinued Operations $ 1,880,822 LIABILITIES: Accounts Payable and Accrued Expenses $ 214,194 Deferred Income Tax Liability 210,103 Customer Deposits and Advance Payments 47,692 Operating Lease Liabilities 335,482 Debt 341,030 Total Liabilities of Discontinued Operations $ 1,148,501 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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) 2020 2019 Trade Names and Trademarks $ 53,000 $ 53,000 Goodwill 288,801 288,801 Indefinite-lived Intangible Assets $ 341,801 $ 341,801 Definite-Lived Intangible Assets The following table summarizes information related to definite-lived intangible assets at December 31: 2020 2019 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal-Use Software $ 14,000 $ (14,000) $ — $ 14,000 $ (14,000) $ — Technology 68,550 (46,861) 21,689 68,550 (39,859) 28,691 Merchant Relationships 181,000 (101,268) 79,732 181,000 (86,184) 94,816 Other Intangibles 1 — — — 350 (295) 55 Total $ 263,550 $ (162,129) $ 101,421 $ 263,900 $ (140,338) $ 123,562 1 Other intangibles include non-compete agreements that ended during 2020 and were fully amortized at December 31, 2020. Total amortization expense of definite-lived intangible assets included in operating expenses in the accompanying consolidated statements of earnings was $22.1 million, $22.3 million and $22.3 million during the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2021 $ 21,683 2022 21,683 2023 21,684 2024 16,972 2025 15,083 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes financial liabilities measured at fair value on a recurring basis: December 31, 2020 December 31, 2019 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ 1,740 $ — $ — $ 1,467 $ — The Company maintains the PROG Holdings, Inc. Deferred Compensation Plan as described in Note 15 to these consolidated financial statements. The liability is recorded in accounts payable and accrued expenses in the consolidated balance sheets. The liability represents benefits accrued for plan participants and is valued at the quoted market prices of the participants’ investment elections, which consist of equity and debt "mirror" funds. As such, the Company has classified the deferred compensation liability as a Level 2 liability. Financial Assets and Liabilities Not Measured at Fair Value, But for Which Fair Value is Disclosed Vive's loans receivable are measured at amortized cost, net of an allowance for loan losses on the consolidated balance sheets. In estimating fair value for Vive's loans receivable, the Company utilized a discounted cash flow methodology. The Company used various unobservable inputs reflecting its own assumptions, such as contractual future principal and interest cash flows, future loss rates, and discount rates (which consider current interest rates and are adjusted for credit risk, among other factors). The following table summarizes the fair value for Vive's loans receivable: December 31, 2020 December 31, 2019 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Loans Receivable, Net $ — $ — $ 119,895 $ — $ — $ 89,790 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT The following is a summary of the Company’s property, plant, and equipment: December 31, (In Thousands) 2020 2019 Leasehold Improvements $ 12,117 $ 11,364 Fixtures, Equipment and Vehicles 32,271 29,517 Internal-Use Software 17,400 14,001 Internal-Use Software - In Development 1,595 3,071 63,383 57,953 Less: Accumulated Depreciation and Amortization 1 (36,678) (27,588) $ 26,705 $ 30,365 1 Accumulated amortization of internal-use software development costs amounted to $7.5 million and $4.2 million as of December 31, 2020 and 2019, respectively. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans Receivables | LOANS RECEIVABLE The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2020 2019 Loans Receivable, Gross $ 131,422 $ 96,387 Unamortized Fees (10,147) (6,223) Loans Receivable, Amortized Cost 121,275 90,164 Allowance for Loan Losses (42,127) (14,911) Loans Receivable, Net of Allowances and Unamortized Fees $ 79,148 $ 75,253 The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: (In Thousands) As of December 31, 2020 2020 2019 2018 2017 2016 Prior Total FICO Score Category: 600 or Less $ 7,125 $ 1,792 $ 535 $ 80 $ 54 $ 6 $ 9,592 Between 600 and 700 64,809 17,529 6,818 4,005 2,417 363 95,941 700 or Greater 11,478 1,795 1,053 695 638 83 15,742 Total Amortized Cost $ 83,412 $ 21,116 $ 8,406 $ 4,780 $ 3,109 $ 452 $ 121,275 Included in the table below is an aging of the loans receivable, gross balance: (Dollar Amounts in Thousands) December 31, Aging Category 1 2020 2019 30-59 Days Past Due 5.7 % 6.9 % 60-89 Days Past Due 2.6 % 3.6 % 90 or more Days Past Due 3.1 % 5.0 % Past Due Loans Receivable 11.4 % 15.5 % Current Loans Receivable 88.6 % 84.5 % Balance of Loans Receivable on Nonaccrual Status $ 1,962 $ 2,284 Balance of Loans Receivable Greater Than 90 Days Past Due and Still Accruing Interest and Fees $ — $ — 1 Customers that were granted a payment deferral due to factors caused by the COVID-19 pandemic maintained their delinquency status for an additional 30 days. This did not materially impact the aging disclosed above. The table below presents the components of the allowance for loan losses: Year Ended December 31, (In Thousands) 2020 2019 Beginning Balance $ 14,911 $ 12,970 CECL Transition Adjustment 1 9,463 — Provision for Loan Losses 34,038 21,667 Charge-offs (19,504) (22,204) Recoveries 3,219 2,478 Ending Balance $ 42,127 $ 14,911 1 Upon the January 1, 2020 adoption of CECL as further described in Note 1 to these consolidated financial statements, the Company increased its allowance for loan losses by $9.5 million. The increase was recorded as a cumulative-effect non-cash adjustment of $6.7 million, net of tax, to the opening balance of the Company's 2020 retained earnings. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES Lessor Information Refer to Note 1 to these consolidated financial statements for further information about the Company's revenue generating activities as a lessor. All of Progressive Leasing's customer agreements are considered operating leases, and the Company currently does not have any sales-type or direct financing leases. Lessee Information As a lessee, the Company leases call center, management and information technology space for corporate functions under operating leases expiring at various times through 2027. To the extent that a leased property is vacated prior to the termination of the lease, the Company may sublease these spaces to third parties. The Company also leases space for its hub facilities, some of its vehicles, and information technology equipment under operating leases. For all of its leases in which the Company is a lessee, the Company has elected to include both the lease and non-lease components as a single component and account for it as a lease. The Company did not have any obligations under finance leases for any of the periods presented within the consolidated financial statements. Operating lease costs are recorded on a straight-line basis within operating expenses in the consolidated statements of earnings. The Company’s total operating lease cost is comprised of the following: Year Ended December 31, (In Thousands) 2020 2019 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 $ 4,481 $ 4,253 Sublease Receipts 2 — — Total Operating Lease cost: $ 4,481 $ 4,253 1 Short-term and variable lease expenses were not significant during the years ended December 31, 2020 and 2019. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. The Company also incurred $4.7 million of rental expense during the year ended December 31, 2018 under ASC 840, Leases . 2 The Company did not have any subleases in which it remained as the primary obligor during 2020 or 2019, and currently does not anticipate receiving any future sublease receipts. Additional information regarding the Company’s leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2020 2019 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 5,252 $ 4,497 Total Cash paid for amounts included in measurement of Lease Liabilities 5,252 4,497 Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities $ — $ 4,379 Supplemental balance sheet information related to leases is as follows: December 31, (In Thousands) Balance Sheet Classification 2020 2019 Assets Total Lease Assets Operating Lease Right-of-Use Assets $ 20,613 $ 24,279 Liabilities Total Lease Liabilities Operating Lease Liabilities $ 29,516 $ 33,904 Many of the Company’s real estate leases contain renewal options for additional periods ranging from three to five years. The Company currently does not have any real estate leases in which it considers the renewal options to be reasonably certain of exercise, as the Company's leases contain contractual renewal rental rates that are considered to be in line with market rental rates and there are not significant economic penalties or business disruptions incurred by not exercising any renewal options. The Company uses its incremental borrowing rate as the discount rate for its leases, as the implicit rate in the lease is not readily determinable. Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company’s operating leases: December 31, 2020 2019 Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Operating Leases 3.4 % 5.7 3.4 % 6.4 1 Upon adoption of ASC 842, discount rates for existing operating leases were established as of January 1, 2019. Under the short-term lease exception provided within ASC 842, the Company does not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement. Below is a summary of undiscounted operating lease liabilities that have initial terms in excess of one year as of December 31, 2020. The table also includes a reconciliation of the future undiscounted cash flows to the present value of operating lease liabilities included in the consolidated balance sheets. (In Thousands) Total 2021 $ 5,702 2022 5,767 2023 5,373 2024 5,197 2025 4,160 Thereafter 6,584 Total Undiscounted Cash Flows 32,783 Less: Interest (3,267) Present Value of Lease Liabilities $ 29,516 |
Leases | LEASES Lessor Information Refer to Note 1 to these consolidated financial statements for further information about the Company's revenue generating activities as a lessor. All of Progressive Leasing's customer agreements are considered operating leases, and the Company currently does not have any sales-type or direct financing leases. Lessee Information As a lessee, the Company leases call center, management and information technology space for corporate functions under operating leases expiring at various times through 2027. To the extent that a leased property is vacated prior to the termination of the lease, the Company may sublease these spaces to third parties. The Company also leases space for its hub facilities, some of its vehicles, and information technology equipment under operating leases. For all of its leases in which the Company is a lessee, the Company has elected to include both the lease and non-lease components as a single component and account for it as a lease. The Company did not have any obligations under finance leases for any of the periods presented within the consolidated financial statements. Operating lease costs are recorded on a straight-line basis within operating expenses in the consolidated statements of earnings. The Company’s total operating lease cost is comprised of the following: Year Ended December 31, (In Thousands) 2020 2019 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 $ 4,481 $ 4,253 Sublease Receipts 2 — — Total Operating Lease cost: $ 4,481 $ 4,253 1 Short-term and variable lease expenses were not significant during the years ended December 31, 2020 and 2019. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. The Company also incurred $4.7 million of rental expense during the year ended December 31, 2018 under ASC 840, Leases . 2 The Company did not have any subleases in which it remained as the primary obligor during 2020 or 2019, and currently does not anticipate receiving any future sublease receipts. Additional information regarding the Company’s leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2020 2019 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 5,252 $ 4,497 Total Cash paid for amounts included in measurement of Lease Liabilities 5,252 4,497 Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities $ — $ 4,379 Supplemental balance sheet information related to leases is as follows: December 31, (In Thousands) Balance Sheet Classification 2020 2019 Assets Total Lease Assets Operating Lease Right-of-Use Assets $ 20,613 $ 24,279 Liabilities Total Lease Liabilities Operating Lease Liabilities $ 29,516 $ 33,904 Many of the Company’s real estate leases contain renewal options for additional periods ranging from three to five years. The Company currently does not have any real estate leases in which it considers the renewal options to be reasonably certain of exercise, as the Company's leases contain contractual renewal rental rates that are considered to be in line with market rental rates and there are not significant economic penalties or business disruptions incurred by not exercising any renewal options. The Company uses its incremental borrowing rate as the discount rate for its leases, as the implicit rate in the lease is not readily determinable. Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company’s operating leases: December 31, 2020 2019 Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Operating Leases 3.4 % 5.7 3.4 % 6.4 1 Upon adoption of ASC 842, discount rates for existing operating leases were established as of January 1, 2019. Under the short-term lease exception provided within ASC 842, the Company does not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement. Below is a summary of undiscounted operating lease liabilities that have initial terms in excess of one year as of December 31, 2020. The table also includes a reconciliation of the future undiscounted cash flows to the present value of operating lease liabilities included in the consolidated balance sheets. (In Thousands) Total 2021 $ 5,702 2022 5,767 2023 5,373 2024 5,197 2025 4,160 Thereafter 6,584 Total Undiscounted Cash Flows 32,783 Less: Interest (3,267) Present Value of Lease Liabilities $ 29,516 |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Indebtedness | INDEBTEDNESS On November 24, 2020, the Company entered into a credit agreement with a consortium of lenders providing for a $350.0 million senior unsecured revolving credit facility (the “Revolving Facility”), under which revolving borrowings became available at the completion of the separation and distribution transaction, and under which all borrowings and commitments will mature or terminate on November 24, 2025. The Company expects that the Revolving Facility will be used to provide for working capital and capital expenditures, to finance future permitted acquisitions, and for other general corporate purposes. The Company had $50.0 million of outstanding borrowings under the Revolving Facility as of December 31, 2020. The Company incurred $2.2 million of lender and legal fees related to the Revolving Facility, which were recorded within prepaid expenses and other assets in the consolidated balance sheets and will be deferred and amortized through the maturity date. In conjunction with the separation and distribution, the Company repaid in full the outstanding principal and accrued interest amounts due under its previous debt agreements, including (i) $225.4 million paid on November 30, 2020 for outstanding principal and accrued interest due under the revolving credit and term loan facility scheduled to mature in January 2025; and (ii) $61.3 million paid on November 27, 2020 to repay outstanding principal, accrued interest, and an early prepayment fee for the senior unsecured notes scheduled to mature in April 2021. The Company recorded a $4.1 million loss on extinguishment of the debt within (loss) earnings from discontinued operations in the consolidated statements of earnings. We have classified the historical debt balances related to our prior revolving credit and term loan agreement, senior unsecured notes, and finance leases that were directly related to the operations of The Aaron's Company, Inc. within liabilities of discontinued operations on the consolidated balance sheets, as repayment of the prior debt facilities was required under the terms of the loan agreements in the event of a fundamental change to the Company and the legal obligor of these agreements was a legal entity of The Aaron's Company. Revolving Facility The Company is a guarantor of the Revolving Facility with Progressive Finance Holdings, LLC, a wholly-owned subsidiary of the Company, as borrower. The Revolving Facility includes (i) a $20.0 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $25.0 million sublimit for swingline loans on customary terms. We will have the right from time to time to request to increase the size of the Revolving Facility or add certain incremental revolving or term loan facilities (the “Incremental Facilities”) in minimum amounts to be agreed upon. The aggregate principal amount of all such Incremental Facilities may not exceed $300.0 million. Borrowings under the Revolving Facility bear interest at a rate per annum equal to, at our option, (i) the LIBO rate plus a margin within the range of 1.5% to 2.5% for revolving loans, based on total leverage, or (ii) the base rate plus the applicable margin, which will be 1.00% lower than the applicable margin for LIBO rate loans. The interest rate of the Revolving Facility at December 31, 2020 was 1.94%. The Company pays a commitment fee on unused balances, which ranges from 0.20% to 0.35% as determined by the Company's ratio of total net debt to EBITDA. As of December 31, 2020, the amount available under the Revolving Facility was $300.0 million. Financial Covenants The Revolving Facility discussed above contains financial covenants, which include requirements that the Company maintain ratios of (i) total net debt to EBITDA of no more than 2.50:1.00 and (ii) consolidated interest coverage of no less than 3.00:1.00. The Company will be in default under the Revolving Facility agreement if it fails to comply with these covenants, and all borrowings outstanding could become due immediately. Under the Revolving Facility, the Company may pay cash dividends in any year so long as, after giving pro forma effect to the dividend payment, the Company maintains compliance with its financial covenants and no event of default has occurred or would result from the payment. At December 31, 2020, the Company was in compliance with all financial covenants related to its outstanding debt. Below is a summary of future principal maturities due under the Revolving Facility as of December 31, 2020. For purposes of the below table, we have assumed that the $50.0 million of outstanding borrowings at December 31, 2020 will remain outstanding until November 24, 2025, the maturity date of the Revolving Facility. However, all borrowings under the Revolving Facility may be repaid at any time by the Company without penalty. (In Thousands) 2021 $ — 2022 — 2023 — 2024 — 2025 50,000 Thereafter — Total $ 50,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following is a summary of the Company’s income tax expense from continuing operations: Year Ended December 31, (In Thousands) 2020 2019 2018 Current Income Tax Expense: Federal $ (15,895) $ 4,453 $ (5,435) State 16,219 11,206 9,575 324 15,659 4,140 Deferred Income Tax Expense: Federal 37,132 38,353 30,314 State 493 (1,784) (2,958) 37,625 36,569 27,356 Income Tax Expense $ 37,949 $ 52,228 $ 31,496 Significant components of the Company’s deferred income tax liabilities and assets from continuing operations are as follows: December 31, (In Thousands) 2020 2019 Deferred Tax Liabilities: Lease Merchandise and Property, Plant and Equipment $ 179 $ 336 Goodwill and Other Intangibles — 119 Investment in Partnership 150,988 165,042 Operating Lease Right-of-Use Assets 447 681 Other, Net — — Total Deferred Tax Liabilities 151,614 166,178 Deferred Tax Assets: Accrued Liabilities 10,699 5,137 Advance Payments — — Operating Lease Liabilities 472 710 Other, Net 17,539 60,039 Total Deferred Tax Assets 28,710 65,886 Less Valuation Allowance (4,034) — Net Deferred Tax Liabilities $ 126,938 $ 100,292 The Company’s effective tax rate from continuing operations differs from the statutory United States Federal income tax rate as follows: Year Ended December 31, 2020 2019 2018 Statutory Rate 21.0 % 21.0 % 21.0 % Increases (Decreases) in United States Federal Taxes Resulting From: State Income Taxes, net of Federal Income Tax Benefit 4.6 26.9 3.4 Permanent difference for loss on Progressive FTC matter — 133.1 — NOL Carryback under CARES Act (13.1) — — Other Permanent Differences (1.0) (7.4) (1.5) Deferred Tax Adjustments 1.1 5.8 (0.4) Current FIN 48 Expense (0.3) 7.2 (0.1) Other, net 1.7 2.5 (2.3) Effective Tax Rate 14.0 % 189.1 % 20.1 % The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. As a result of the CARES Act legislation, the Company elected to carryback its 2018 net operating losses of $242.2 million to 2013, thus generating a refund of $84.4 million, which was received in July 2020, and an income tax benefit of $34.2 million which was reported within continuing operations in 2020. Vive filed a separate federal return from the Company and has also elected to carryback its 2018 and 2019 net operating losses of $5.4 million and $5.2 million respectively, to 2013 and 2014, thus generating a refund of $1.8 million in 2020, and an estimated refund of $1.8 million in 2021 and an income tax benefit of $1.4 million which was reported within continuing operations in 2020. The tax benefit related to the carryback of the net operating losses is the result of the federal income tax rate differential between the current statutory rate of 21% and the 35% rate applicable to 2013 and 2014. The Company is estimating taxable income in 2020. As stated above, the net operating loss earned during 2018 was carried back to prior years and is no longer available to offset estimated taxable income in the current year. At December 31, 2020, the Company had $1.8 million of tax-effected state net operating loss carryforwards and $7.3 million of state tax credit carryforwards, which will both begin to expire in 2023. The Company files a federal consolidated income tax return in the United States, and the separate legal entities file in various states. With few exceptions, the Company is no longer subject to federal, state and local tax examinations by tax authorities for years before 2017. In connection with our separation and distribution of The Aaron's Company, we entered into various agreements that govern the relationship between the parties going forward, including a tax matters agreement. Under the tax matters agreement, the Company is generally responsible for all additional taxes (and will be entitled to all related refunds of taxes) imposed on The Aaron's Company and its subsidiaries arising after the separation date with respect to the taxable periods ended on or prior to November 30, 2020. The following table summarizes the activity related to the Company’s uncertain tax positions: Year Ended December 31, (In Thousands) 2020 2019 2018 Balance at January 1, $ 3,699 $ 1,896 $ 1,701 Additions Based on Tax Positions Related to the Current Year 26 103 128 Additions for Tax Positions of Prior Years 220 1,957 595 Prior Year Reductions (108) (32) (85) Statute Expirations (1,053) (225) (160) Settlements (36) — (283) Balance at December 31, $ 2,748 $ 3,699 $ 1,896 As of December 31, 2020 and 2019, the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $2.6 million and $3.6 million, respectively, including interest and penalties. During the years ended December 31, 2020, 2019 and 2018 the Company recognized a net benefit of $0.1 million, and net expense of $0.2 million and $0.1 million, respectively related to penalties and interest. The Company had $0.2 million and $0.4 million of accrued interest and penalties at December 31, 2020 and 2019, respectively. The Company recognizes potential interest and penalties related to uncertain tax benefits as a component of income tax expense (benefit). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company is party to various legal and regulatory proceedings arising in the ordinary course of business. Some of the proceedings to which the Company is currently a party are described below. The Company believes it has meritorious defenses to all of the claims described below, and intends to vigorously defend against the claims. However, these proceedings are still developing and due to the inherent uncertainty in litigation, regulatory and similar adversarial proceedings, there can be no guarantee that the Company will ultimately be successful in these proceedings, or in others to which it is currently a party. Substantial losses from these proceedings or the costs of defending them could have a material adverse impact upon the Company’s business, financial position and results of operations. The Company establishes an accrued liability for legal and regulatory proceedings when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. The Company continually monitors its litigation and regulatory exposure and reviews the adequacy of its legal and regulatory reserves on a quarterly basis. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. At December 31, 2020 and 2019, the Company had accrued $0.1 million and $175.2 million, respectively, for pending legal and regulatory matters for which it believes losses are probable and is the Company’s best estimate of its exposure to loss. The December 31, 2019 accrual includes a $175.0 million settlement with the Federal Trade Commission (the "FTC") discussed in more detail below, which was recorded in accrued regulatory expenses in the consolidated balance sheet. The Company records all other liabilities related to legal matters in accounts payable and accrued expenses in the consolidated balance sheet. The Company estimates that the aggregate range of reasonably possible loss in excess of accrued liabilities for such probable loss contingencies is between zero and $0.2 million. At December 31, 2020, the Company estimated that the aggregate range of loss for all material pending legal and regulatory proceedings for which a loss is reasonably possible, but less likely than probable (i.e., excluding the contingencies described in the preceding paragraph), is immaterial. Those matters for which a reasonable estimate is not possible are not included within estimated ranges and, therefore, the estimated ranges do not represent the Company’s maximum loss exposure. The Company’s estimates for legal and regulatory accruals, aggregate probable loss amounts and reasonably possible loss amounts, are all subject to the uncertainties and variables described above. Regulatory Inquiries In July 2018, the Company received civil investigative demands ("CIDs") from the FTC regarding disclosures related to lease-to-own and other financial products offered by the Company through the Aaron's Business and Progressive Leasing and whether such disclosures violate the Federal Trade Commission Act (the "FTC Act"). Although we believe such disclosures were in compliance with the FTC Act and have not admitted to any wrongdoing, in December 2019, Progressive Leasing reached an agreement in principle with the staff of the FTC with respect to a tentative settlement to resolve the FTC inquiry, pursuant to which Progressive would pay $175.0 million to the FTC. Because Progressive reached a tentative agreement with respect to the financial terms of the settlement in December 2019, the Company recognized a charge of $179.3 million, including $4.3 million of incurred legal fees. In January 2020, Progressive and the FTC staff agreed in principle on the terms of a related consent order which, among other matters, requires Progressive to undertake certain compliance-related activities, including monitoring, disclosure and reporting requirements. The proposed consent order was approved by the FTC on April 17, 2020 and approved by the United States District Court for the Northern District of Georgia on April 22, 2020. The Company paid the $175.0 million settlement amount to the FTC on April 27, 2020. The Company recognized $0.8 million of insurance recoveries during the year ended December 31, 2020 associated with certain legal fees incurred in connection with the FTC matter. In late January 2021, the Company, along with other other lease-to-own companies, received a subpoena from the California Department of Financial Protection and Innovation (the “DFPI”) requesting the production of documents regarding the Company’s compliance with state consumer protection laws, including new legislation that went into effect on January 1, 2021. Although the Company believes it is in compliance with all applicable consumer financial laws and regulations in California, this inquiry could lead to an enforcement action and/or a consent order, and substantial costs, including legal fees, fines, penalties, and remediation expenses. While the Company intends to preserve defenses surrounding the jurisdiction of DFPI in this matter, it anticipates cooperating with the DFPI in responding to its inquiry. Litigation Matters In Stein v. Aaron's, Inc., et. al., filed in the United States District Court for the Southern District of New York on February 28, 2020, the plaintiffs allege that from March 2, 2018 through February 19, 2020, the Company made certain misleading public statements about the Company's business, operations, and prospects. The allegations underlying the lawsuit principally relate to the FTC's inquiry into disclosures related to lease-to-own and other financial products offered by the Company through its historical Aaron's Business and Progressive Leasing segments. The Company believes the claims are without merit and intends to vigorously defend against this lawsuit. The case has been transferred to the United States District Court for the Northern District of Georgia, where the Company has filed a motion to dismiss the case and a final briefing on that motion was filed on November 17, 2020. No ruling has been made on the motion to dismiss. Other Contingencies At December 31, 2020, the Company had non-cancelable commitments primarily related to certain consulting and information technology services agreements, software licenses, hardware and software maintenance, and minimum contractually required customer loan amounts to be originated through and acquired from Vive's third-party federally insured banks of $12.3 million. Payments under these commitments are scheduled to be $9.2 million in 2021, $1.9 million in 2022, $0.6 million in 2023, $0.3 million in 2024, and $0.3 million in 2025, with no amounts committed thereafter. Management regularly assesses the Company’s insurance deductibles, monitors the Company’s litigation and regulatory exposure with the Company’s attorneys and evaluates its loss experience. The Company also enters into various contracts in the normal course of business that may subject it to risk of financial loss if counterparties fail to perform their contractual obligations. Off-Balance Sheet Risk The Company, through its Vive segment, had unfunded lending commitments totaling $287.3 million and $225.0 million as of December 31, 2020 and 2019, respectively, that do not give rise to revenues and cash flows. These unfunded commitments arise in the ordinary course of business from credit card agreements with individual cardholders that give them the ability to borrow, against unused amounts, up to the maximum credit limit assigned to their account. While these unfunded amounts represent the total available unused lines of credit, the Company does not anticipate that all cardholders will utilize their entire available line at any given point in time. Commitments to extend unsecured credit are agreements to lend to a cardholder so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Prior to the January 1, 2020 adoption of CECL as discussed further in Note 1, the Company recorded a reserve for losses on unfunded loan commitments, which was approximately $0.4 million as of December 31, 2019 and was included in accounts payable and accrued expenses in the consolidated balance sheet. Upon the adoption of CECL, the Company reversed the aforementioned reserve for losses on unfunded loan commitments and recorded a corresponding pre-tax increase of $0.4 million to its January 1, 2020 retained earnings balance. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY At December 31, 2020, the Company held 23,029,434 shares in its treasury and had the authority to purchase additional shares up to its remaining authorization limit of $262.0 million. On February 22, 2021, the Company's Board of Directors terminated the share repurchase program that was in effect as of December 31, 2020 and replaced it with a new repurchase program that will permit the Company to repurchase up to $300.0 million of the Company's outstanding common stock. The holders of common stock are entitled to receive dividends and other distributions in cash or stock of the Company as and when declared by the Company's Board of Directors out of legally available funds. Certain unvested time-based restricted stock awards entitle participants to vote and accrue dividends during the vesting period. As of December 31, 2020, the Company had issued approximately 351,000 unvested restricted stock awards that contain voting rights but are not presented as outstanding on the consolidated balance sheets. The Company did not repurchase any shares of its common stock in 2020. In 2019, the Company repurchased 1,156,184 shares of its common stock for $69.3 million. In 2018, the Company repurchased 3,749,493 shares of its common stock for $168.7 million. The Company has 1,000,000 shares of preferred stock authorized. The shares are issuable in series with terms for each series fixed by, and such issuance subject to approval by, the Board of Directors. As of December 31, 2020, no preferred shares have been issued. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION Description of Plans The Company grants stock options, RSUs, RSAs and PSUs to certain employees and directors of the Company under the 2015 Equity and Incentive Award Plan, and previously did so under the 2001 Stock Option and Incentive Award Plan (the "2015 Plan" and "2001 Plan"). The 2001 Plan was originally approved by the Company’s shareholders in May 2001 and was amended and restated with shareholder approval in May 2009 and discontinued with the approval of the 2015 Plan on May 6, 2015. The 2015 Plan was subsequently amended and restated with shareholder approval in February 2019. Beginning in 2015, as part of the Company’s long-term incentive compensation program ("LTIP Plan") and pursuant to the Company’s 2001 Plan and 2015 Plan, the Company granted a mix of stock options, time-based restricted stock and performance share units to key executives and managers and also granted time-based restricted stock units to directors of the Company. As of December 31, 2020, the aggregate number of shares of common stock that may be issued or transferred under the 2015 Plan is 3,570,891. Conversion at Separation and Distribution of The Aaron's Company In accordance with the terms of the Separation and the Employee Matters Agreement between The Aaron's Company and PROG Holdings, all unexercised, unissued and/or unvested share-based awards previously granted to Aaron's Holdings Company, Inc. employees and directors under the Aaron's, Inc. equity plans through the separation and distribution date of November 30, 2020 were converted at the time of distribution to replacement stock options, RSUs, PSUs and RSAs. The replacement awards were converted using formulas designed to preserve the intrinsic economic value of the awards after taking into consideration the distribution. Aaron's Holdings Company, Inc. employees who held unvested PSUs, and/or RSAs of Aaron's Holdings Company, Inc. on the record date of November 27, 2020 generally had the option to elect one of two conversion methods for determining the replacement awards: i. to receive replacement awards of both PROG Holdings and The Aaron's Company for the number of whole units, rounded down to the nearest whole unit, of PROG Holdings and The Aaron's Company common stock that they would have received as a shareholder of Aaron's Holdings Company, Inc. at the date of separation, which is one share of The Aaron's Company for every two shares of PROG Holdings (i.e., "the shareholder method"); or ii. to receive replacement awards only of the respective employer's common stock for an amount determined by a conversion ratio determined by calculating the product of the pre-distribution share price of Aaron's Holdings Company, Inc. and the pre-distribution number of awards to be cancelled and replaced pursuant to this conversion, then dividing the product by the post-distribution volume weighted adjusted three-day average share price of the respective employer's common stock, rounded down to the nearest whole share (i.e., "the employee method"). In accordance with the Employee Matters Agreement, the conversion of certain awards, including substantially all unvested and unexercised vested stock options, was required to be determined following the employee method. The conversion of RSUs held by the board of directors was required to be determined following the shareholder method. Under both the shareholder method and the employee method, the terms and conditions of the converted awards were replicated, and, as necessary, adjusted to ensure that the vesting schedules were unchanged and the awards were converted in accordance with the Employee Matters Agreement. The impact of the conversion of the unexercised and unvested equity awards on the separation date is reflected in the respective tables below as the "Separation of The Aaron's Company, Inc. on November 30, 2020" and "Granted in Equity Conversion on November 30, 2020". In connection with the conversion, certain equity awards of PROG Holdings employees and directors were converted into equity awards of The Aaron's Company and are therefore not reflected in the ending awards outstanding in the tables below; however, these awards will result in stock based compensation expense of PROG Holdings as the awards continue to vest in the future. In connection with the conversion, certain employees and directors of The Aaron's Company have outstanding RSUs, PSUs, RSAs, and stock options in PROG Holdings, which are reflected in the ending awards outstanding in the tables below; however, these awards will not result in stock based compensation expense of PROG Holdings for periods subsequent to the separation and distribution date. Equity award activity that occurred prior to the separation and distribution has not been segregated between continuing and discontinued operations in the tables below. The Company accounted for the conversion of the awards as award modifications in accordance with ASC 718, Compensation - Stock Compensation ("ASC 718"). The Company compared the fair value of the outstanding awards immediately prior to the conversion with the fair value of the outstanding awards immediately after the conversion, and determined that the conversion of equity awards held by PROG Holdings employees, corporate employees of Aaron's Holding Company, Inc., the Company's directors, and The Aaron's Company directors resulted in incremental compensation expense of $5.2 million related to outstanding vested awards. The incremental expense is classified as continuing operations and is included as a component of separation related charges in the accompanying consolidated statements of earnings for the year ended December 31, 2020. The incremental expense related to outstanding unvested awards held by PROG Holdings employees was immaterial. Retirement-related Modifications In connection with the separation and distribution on November 30, 2020, PROG Holdings and The Aaron's Company entered into a Transition Agreement with the former Chief Executive Officer of Aaron's Holdings Company, Inc., pursuant to which the former CEO would retire and transition to the non-employee Chairman of the Board of Directors of The Aaron's Company, effective November 30, 2020. The Transition Agreement provided that all unvested stock options, RSAs and PSUs granted to the former CEO in prior periods would become fully vested as promptly as practicable following the completion of the separation and distribution. These awards also followed the conversion methodology outlined in the "Conversion at Separation" section above, pursuant to the terms of the Employee Matters Agreement. The terms of the Transition Agreement resulted in award modifications under ASC 718 as both the fair value and vesting conditions of the awards had been changed. The modifications resulted in incremental compensation expense of $4.5 million associated with the conversion and an additional incremental expense of $8.7 million related to the accelerated vesting of the equity awards. The total incremental expense was due to (i) increased fair value of the awards immediately after the modification as compared to immediately prior to the modifications and (ii) the accelerated vesting of all awards following the completion of the separation and distribution, which resulted in the recognition of a total $13.2 million expense during the fourth quarter of 2020. The incremental compensation expense associated with the modification of the former CEO's awards is included in continuing operations as a component of separation related charges in the accompanying consolidated statements of earnings for the year ended December 31, 2020. Stock-based Compensation Expense The Company has elected a policy to estimate forfeitures in determining the amount of stock compensation expense. Total stock-based compensation expense for both continuing and discontinued operations, which includes the incremental compensation expense discussed above, was $41.2 million, $26.5 million and $28.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. The total stock-based compensation expense classified within continuing operations in the consolidated statements of earnings was $35.8 million, $21.2 million and $21.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. The stock-based compensation expense classified within continuing operations is included as a component of operating expenses in the consolidated statements of earnings, with the exception of the incremental compensation expense associated with the modifications described above, which were included as a component of separation related charges. The total income tax benefit recognized in the consolidated statements of earnings for stock-based compensation arrangements was $10.1 million, $6.6 million and $6.9 million in the years ended December 31, 2020, 2019 and 2018, respectively. Benefits of tax deductions in excess of recognized compensation cost, which are included in operating cash flows, were $2.6 million, $4.8 million and $5.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $13.5 million of total unrecognized compensation expense related to non-vested stock-based compensation of directors and employees of PROG Holdings, which is expected to be recognized over an average period of 1.34 years. Stock Options Under the Company’s 2001 Plan, options granted become exercisable after a period of one one The Company determines the fair value of stock options on the grant date using a Black-Scholes-Merton option pricing model that incorporates expected volatility, expected option life, risk-free interest rates and expected dividend yields. The expected volatility is based on implied volatilities from traded options on the Company’s stock and the historical volatility of the Company’s common stock over the most recent period generally commensurate with the expected estimated life of each respective grant. The expected lives of options are based on the Company’s historical option exercise experience. The Company believes that the historical experience method is the best estimate of future exercise patterns. The risk-free interest rates are determined using the implied yield available for zero-coupon United States government issues with a remaining term equal to the expected life of the grant. The expected dividend yields are based on the approved annual dividend rate in effect and market price of the underlying common stock at the time of grant. No assumption for a future dividend rate increase has been included unless there is an approved plan to increase the dividend in the near term. The Company granted 400,000, 293,000 and 361,000 stock options during the years ended December 31, 2020, 2019 and 2018, respectively. The weighted-average fair value of options granted and the weighted-average assumptions used in the Black-Scholes-Merton option pricing model for such grants were as follows: 2020 2019 2018 Dividend Yield 0.4 % 0.3 % 0.3 % Expected Volatility 39.4 % 36.5 % 34.8 % Risk-free Interest Rate 0.9 % 2.5 % 2.6 % Expected Term (in years) 5.3 5.3 5.3 Weighted-average Fair Value of Stock Options Granted $ 13.48 $ 19.59 $ 16.54 The following table summarizes information about stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Number Outstanding Weighted Average Remaining Contractual Weighted Average Number Exercisable Weighted Average $20.00-30.00 200,926 5.19 $ 24.11 200,926 $ 24.11 30.01-40.00 201,776 8.86 36.33 — — 40.01-50.00 320,126 7.49 46.52 147,533 45.34 20.00-50.00 722,828 7.23 37.45 348,459 33.10 The table below summarizes option activity for the year ended December 31, 2020: Options Weighted Average Weighted Average Aggregate Weighted Outstanding at January 1, 2020 1,730 $ 34.71 Granted - pre-spin 400 38.44 Forfeited/expired - pre-spin (99) 44.53 Exercised - pre-spin (920) 26.87 Separation of The Aaron's Company, Inc. on November 30, 2020 (1,111) 41.67 Granted in Equity Conversion on November 30, 2020 723 37.45 Outstanding at December 31, 2020 723 37.45 7.2 $ 11,873 $ 12.96 Expected to Vest 366 41.60 8.4 4,491 14.76 Exercisable at December 31, 2020 348 33.10 6.1 7,237 11.06 The aggregate intrinsic value amounts in the table above represent the closing price of the Company’s common stock on December 31, 2020 in excess of the exercise price, multiplied by the number of in-the-money stock options as of that same date. Options outstanding that are expected to vest are net of estimated future option forfeitures. The aggregate intrinsic value of options exercised, which represents the value of the Company’s common stock at the time of exercise in excess of the exercise price, was $24.9 million, $6.5 million and $6.6 million during the years ended December 31, 2020, 2019 and 2018, respectively. The total grant-date fair value of options exercised during the year ended December 31, 2020, 2019 and 2018 was $7.8 million, $4.6 million and $3.5 million, respectively. Restricted Stock Restricted stock units or restricted stock awards (collectively, "restricted stock") may be granted to employees and directors under the 2015 Plan and typically vest over approximately one one The fair value of restricted stock is generally based on the fair market value of the Company’s common stock on the date of grant. During 2015, 2016 and 2017, the Company granted performance-based restricted stock to certain executive officers that vest over a three-year service period and with the achievement of specific performance criteria. The compensation expense associated with these awards is recognized on an accelerated basis over the respective vesting periods based on the Company's projected assessment of the level of performance that will be achieved and earned. As of December 31, 2020, there are no performance-based restricted shares still subject to performance conditions. The Company granted 375,000, 225,000 and 248,000 shares of restricted stock at weighted-average fair values of $41.45, $54.28 and $46.01 in the years ended December 31, 2020, 2019 and 2018, respectively. The following table summarizes information about restricted stock activity during 2020: Restricted Stock Weighted Average Non-vested at January 1, 2020 494 $ 44.33 Granted - pre-spin 375 41.45 Forfeited - pre-spin (65) 44.89 Vested - pre-spin (209) 41.33 Separation of The Aaron's Company, Inc. on November 30, 2020 (595) 43.50 Granted in Equity Conversion on November 30, 2020 487 37.35 Forfeited - post-spin (2) 40.88 Vested - post-spin (25) 34.44 Non-vested at December 31, 2020 460 37.49 The total vest-date fair value of restricted stock described above that vested during the year was $10.5 million, $14.6 million and $24.8 million in the years ended December 31, 2020, 2019 and 2018, respectively. Performance Share Units For performance share units, which are gener`ally settled in stock, the number of shares earned is determined at the end of the one-year performance period based upon achievement of various performance criteria, which have included adjusted EBITDA, revenue and invoice volume levels of the respective segments and return on capital for PROG Holdings, Inc. Beginning in 2016, the Company added adjusted pre-tax profit and production volume levels as additional performance criteria for certain segments. When the performance criteria are met, the award is earned and one-third of the award vests. Another one-third of the earned award is subject to an additional one-year service period and the remaining one-third of the earned award is subject to an additional two-year service period. Shares are issued from the Company’s treasury shares upon vesting. The number of performance-based shares which could potentially be issued ranges from zero to 200% of the target award. The fair value of performance share units is based on the fair market value of the Company’s common stock on the date of grant. The compensation expense associated with these awards is amortized on an accelerated basis over the vesting period based on the Company’s projected assessment of the level of performance that will be achieved and earned. In the event the Company determines it is no longer probable that the minimum performance criteria specified in the plan will be achieved, all previously recognized compensation expense is reversed in the period such a determination is made. The following table summarizes information about performance share unit activity during 2020: Performance Share Units Weighted Average Non-vested at January 1, 2020 582 $ 43.93 Granted - pre-spin 248 36.05 Forfeited/unearned - pre-spin (62) 45.55 Vested - pre-spin (325) 37.78 Separation of The Aaron's Company, Inc. on November 30, 2020 (443) 44.11 Granted in Equity Conversion on November 30, 2020 346 39.10 Forfeited/unearned - post-spin (3) 38.90 Vested - post-spin (47) 34.33 Non-vested at December 31, 2020 296 39.85 The total vest-date fair value of performance share units described above that vested during the period was $18.4 million, $22.1 million and $22.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Employee Stock Purchase Plan Effective May 9, 2018, the Company's Board of Directors and shareholders approved the Employee Stock Purchase Plan ("ESPP"), which is a tax-qualified plan under Section 423 of the Internal Revenue Code. The purpose of the Company's ESPP is to encourage ownership of the Company's common stock by eligible employees of PROG Holdings, Inc. and certain subsidiaries. Under the ESPP, eligible employees are allowed to purchase common stock of the Company during six-month offering periods at the lower of: (i) 85% of the closing trading price per share of the common stock on the first trading date of an offering period in which a participant is enrolled; or (ii) 85% of the closing trading price per share of the common stock on the last day of an offering period. Employees participating in the ESPP can contribute up to an amount not exceeding 10% of their base salary and wages up to an annual maximum of $25,000 in total fair market value of the common stock. The final offering period for the year ended December 31, 2020 was modified to accelerate the purchase date to be prior to the completion of the spin-off. The Company concluded that the acceleration of the purchase date should be considered an award modification under ASC 718, as the fair value of the award had been changed. The Company performed a comparison of fair value immediately before and after modification, noting the post-modification fair value was lower than the pre-modification fair value, resulting in no incremental compensation expense. The compensation cost related to the ESPP is measured on the grant date based on eligible employees' expected withholdings and is recognized over each six-month offering period. Total compensation cost recognized in connection with the ESPP was $0.6 million, $0.5 million and $0.2 million for years ended December 31, 2020, 2019 and 2018, respectively. These costs were included as a component of operating expenses in the consolidated statements of earnings. The compensation cost related to the ESPP that was classified within continuing operations in the consolidated statements of earnings was $0.3 million, $0.2 million and $0.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. During the year ended December 31, 2020, the Company issued 52,107 shares under the ESPP at a weighted average purchase price of $38.55. During the year ended December 31, 2019, the Company issued 46,642 shares at a weighted average purchase price of $42.07. During the year ended December 31, 2018, the Company issued 25,239 shares at a purchase price of $35.74. As of December 31, 2020, the aggregate number of shares of common stock that may be issued under the ESPP was 75,314. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS Description of Products and Services of Reportable Segments As of December 31, 2020, the Company has two operating and reportable segments: Progressive Leasing and Vive. As discussed in Note 1 and Note 2 above, the Company spun-off its Aaron's Business segment effective November 30, 2020 through the tax-free distribution of all outstanding common stock of The Aaron's Company, Inc. to the PROG Holdings shareholders. All direct revenues and expenses of the Aaron's Business operations have been classified within discontinued operations, net of income tax, within our consolidated statements of earnings for all periods through the November 30, 2020 separation and distribution date. Progressive Leasing partners with traditional and e-commerce retailers, primarily in the furniture and appliance, jewelry, mobile phones and accessories, mattress, and automobile electronics and accessories industries to offer a lease-purchase solution for customers who may not have access to traditional credit-based financing options. It does so by offering leases with monthly, semi-monthly, bi-weekly and weekly payment models. Vive offers a variety of second-look financing programs originated through third-party federally insured banks to customers of participating merchants and, together with Progressive Leasing, allows the Company to provide retail partners with below-prime customers one source for financing and leasing transactions. Factors Used by Management to Identify the Reportable Segments The Company’s reportable segments are based on the operations of the Company that the chief operating decision maker regularly reviews to analyze performance and allocate resources among business units of the Company. Disaggregated Revenue The following table presents revenue by source and by segment for the year ended December 31, 2020: Year Ended December 31, 2020 (In Thousands) Progressive Leasing Vive Total Lease Revenues and Fees 1 $ 2,443,405 $ — $ 2,443,405 Interest and Fees on Loans Receivable 2 — 41,190 41,190 Total $ 2,443,405 $ 41,190 $ 2,484,595 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Credit Card Interest & Fees . The following table presents revenue by source and by segment for the year ended December 31, 2019: Year Ended December 31, 2019 (In Thousands) Progressive Leasing Vive Total Lease Revenues and Fees 1 $ 2,128,133 $ — $ 2,128,133 Interest and Fees on Loans Receivable 2 — 35,046 35,046 Total $ 2,128,133 $ 35,046 $ 2,163,179 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Credit Card Interest & Fees. The following table presents revenue by source and by segment for the year ended December 31, 2018: Year Ended December 31, 2018 (In Thousands) Progressive Leasing Vive Total Lease Revenues and Fees 1 $ 1,998,981 $ — $ 1,998,981 Interest and Fees on Loans Receivable 2 — 37,318 37,318 Total $ 1,998,981 $ 37,318 $ 2,036,299 1 Revenue within the scope of ASC 840, Leases . 2 Revenue within the scope of ASC 310, Credit Card Interest & Fees. Measurement of Segment Profit or Loss and Segment Assets The Company evaluates performance and allocates resources based on revenues and pre-tax profit or loss from operations. The Company incurred various corporate overhead expenses for certain executive management, finance, treasury, tax, audit, legal, risk management, and other overhead functions during the years ended December 31, 2020, 2019, and 2018. The Company has allocated a predetermined portion of these corporate overhead costs to the Progressive and Vive segments, which are reflected as expenses of these segments in calculating the earnings (loss) before income taxes for all periods presented. The remaining unallocated corporate expenses represent corporate overhead costs that were previously assigned to the Aaron's Business segment and are in addition to the overhead costs allocated to the Progressive Leasing and Vive segments for these periods. These unallocated corporate overhead expenses have been classified as continuing operations for all previous periods through November 30, 2020 since the costs were not directly attributable to the discontinued operations of the Aaron's Business. These costs are reflected below as unallocated corporate expenses. The allocation of corporate overhead costs to the Progressive Leasing and Vive segments is consistent with how the chief operating decision maker analyzed performance and allocated resources among the segments of the Company. Year Ended December 31, (In Thousands) 2020 2019 2018 Earnings (Loss) From Continuing Operations Before Income Tax Expense: Progressive Leasing $ 320,636 $ 64,283 $ 191,303 Vive (11,180) (6,127) (4,398) Unallocated Corporate Expenses (37,880) (30,543) (30,106) Total Earnings From Continuing Operations Before Income Tax Expense $ 271,576 $ 27,613 $ 156,799 December 31, (In Thousands) 2020 2019 Assets: Progressive Leasing $ 1,209,650 $ 1,331,153 Vive 107,754 85,825 Total Assets $ 1,317,404 $ 1,416,978 Year Ended December 31, (In Thousands) 2020 2019 2018 Depreciation and Amortization 1 : Progressive Leasing $ 30,547 $ 29,967 $ 27,974 Vive 1,273 1,385 1,432 Total Depreciation and Amortization $ 31,820 $ 31,352 $ 29,406 Depreciation of Lease Merchandise: Progressive Leasing $ 1,690,922 $ 1,445,027 $ 1,219,034 Vive — — — Total Depreciation of Lease Merchandise $ 1,690,922 $ 1,445,027 $ 1,219,034 Interest Expense 2 : Progressive Leasing $ 187 $ — $ — Vive — — — Total Interest Expense $ 187 $ — $ — Capital Expenditures: Progressive Leasing $ 6,403 $ 12,608 $ 10,711 Vive 405 424 1,035 Total Capital Expenditures $ 6,808 $ 13,032 $ 11,746 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. 2 The Company incurred a pre-tax loss on extinguishment of $4.1 million in connection with the repayment of the outstanding borrowings, which is classified within discontinued operations in the consolidated statements of earnings. As repayment of the prior revolving credit and term loan borrowings and senior unsecured notes was required under the terms of the loan agreements in the event of a fundamental change to the Company, we have classified the loss on extinguishment and the related historical interest expense of $9.9 million, $17.0 million, and $16.4 million during the years ended December 31, 2020, 2019, and 2018, respectively within (loss) earnings from discontinued operations, net in the consolidated statements of earnings. In 2020, the results of the Company's operating segments were impacted by the following items: • Progressive Leasing earnings before taxes were impacted by $2.4 million related primarily to stock-based compensation expense associated with the modification of outstanding equity awards and executive retirement charges related to the separation and distribution transaction for employees directly associated with Progressive Leasing. • Unallocated corporate expenses before taxes were impacted by $15.6 million related primarily to stock-based compensation expense associated with the modification of outstanding equity awards and executive retirement charges related to the separation and distribution transaction. In 2019, the results of the Company’s operating segments were impacted by the following items: |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (In Thousands, Except Per Share Data) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Year Ended December 31, 2020 Revenues $ 668,442 $ 599,164 $ 611,337 $ 605,652 $ 2,484,595 Net Earnings from Continuing Operations 57,682 58,997 74,643 42,305 233,627 (Loss) Earnings from Discontinued Operations, Net of Tax (337,687) 9,380 34,702 (1,487) (295,092) Net (Loss) Earnings (280,005) 68,377 109,345 40,818 (61,465) Basic Earnings (Loss) Per Share: Continuing Operations 0.86 0.88 1.11 0.62 3.47 Discontinued Operations (5.05) 0.14 0.51 (0.02) (4.39) Total Basic (Loss) Earnings per Share (4.19) 1.02 1.62 0.60 (0.91) Diluted Earnings (Loss) Per Share: Continuing Operations 0.85 0.87 1.10 0.62 3.43 Discontinued Operations (4.98) 0.14 0.51 (0.02) (4.34) Total Diluted (Loss) Earnings per Share (4.13) 1.01 1.61 0.60 (0.90) Year Ended December 31, 2019 Revenues $ 532,047 $ 524,944 $ 537,536 $ 568,652 $ 2,163,179 Net Earnings (Loss) from Continuing Operations 38,788 39,112 35,611 (138,126) (24,615) Earnings from Discontinued Operations, Net of Tax 17,290 3,538 4,190 31,069 56,087 Net Earnings (Loss) 56,078 42,650 39,801 (107,057) 31,472 Basic Earnings (Loss) Per Share: Continuing Operations 0.58 0.58 0.53 (2.06) (0.37) Discontinued Operations 0.26 0.05 0.06 0.46 0.83 Total Basic Earnings (Loss) per Share 0.84 0.63 0.59 (1.60) 0.47 Diluted Earnings (Loss) Per Share: Continuing Operations 0.56 0.57 0.52 (2.06) (0.37) Discontinued Operations 0.25 0.05 0.06 0.46 0.83 Total Diluted Earnings (Loss) per Share 0.81 0.62 0.58 (1.60) 0.47 Note: The sum of quarterly earnings per share may differ from the full year amounts due to rounding, or in the case of diluted earnings per share, because certain securities that are antidilutive in certain quarters may not be antidilutive on a full-year basis. The comparability of the Company’s quarterly pre-tax financial results during 2020 and 2019 was impacted by certain events, as described below: • The fourth quarter of 2019 included $179.3 million in regulatory charges and legal expenses, including a $175.0 million settlement charge, incurred related to Progressive Leasing's settlement of the FTC matter discussed in more detail in Note 10. • The third quarter and fourth quarters of 2020 included $2.4 million and $15.6 million, respectively, in stock-based compensation associated with equity award modification charges and retirement charges related to the spin-off of The Aaron's Company, Inc. • The first quarter of 2020 included a $446.9 million goodwill impairment loss related to the Aaron's Business segment, which is classified within discontinued operations. • The second, third, and fourth quarters of 2020 included $2.5 million, $5.8 million, and $28.2 million, respectively, of third-party transaction costs related to the spin-off of The Aaron's Company, Inc. which is classified within discontinued operations. |
Compensation Arrangements
Compensation Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Compensation Arrangements | COMPENSATION ARRANGEMENTS Deferred Compensation The Company maintains a Deferred Compensation Plan, which is an unfunded, nonqualified deferred compensation plan for a select group of management, highly compensated employees and non-employee directors. On a pre-tax basis, eligible employees can defer receipt of up to 75% of their base compensation and up to 75% of their incentive pay compensation, and eligible non-employee directors can defer receipt of up to 100% of their cash director fees. In connection with the separation and distribution, The Aaron's Company established a separate deferred compensation plan for its employees and assumed all assets and liabilities related to its employees from the PROG Holdings deferred compensation plan, which are included within discontinued operations in the consolidated balance sheets. Compensation deferred under the plan is recorded as a deferred compensation liability, which is recorded in accounts payable and accrued expenses in the consolidated balance sheets. The deferred compensation plan liability was $1.7 million and $1.5 million as of December 31, 2020 and 2019, respectively. Liabilities under the plan are recorded at amounts due to participants, based on the fair value of participants’ selected investments, which consist of equity and debt "mirror" funds. The obligations are unsecured general obligations of the Company and the participants have no right, interest or claim in the assets of the Company, except as unsecured general creditors. The Company has established a rabbi trust to fund obligations under the plan, primarily with Company-owned life insurance ("COLI") policies in prior years. All of the previously existing COLI policies were transferred to The Aaron's Company as part of the separation and distribution transaction and the remaining assets in the rabbi trust include cash and money market funds. The value of the assets within the rabbi trust was $2.0 million and $1.5 million as of December 31, 2020 and 2019, respectively, and is included in prepaid expenses and other assets in the consolidated balance sheets. Gains and losses related to changes in the cash surrender value of the COLI policies were recorded within (loss) earnings from discontinued operations in the consolidated statements of earnings through the separation and distribution date, as plan participants and the related assets and liabilities primarily were attributable to employees of The Aaron's Company. Benefits paid to employees of the Company were not material during the years ended December 31, 2020, 2019 and 2018. Effective January 1, 2018 the Company implemented a discretionary match within the nonqualified Deferred Compensation Plan. The match allows eligible employees to receive 100% matching by the Company on the first 3% of contributions and 50% on the next 2% of contributions for a total of a 4% match. The annual match is not to exceed $11,000, $11,200, and $11,400 for an individual employee for 2018, 2019, and 2020, respectively, and is subject to a three-year cliff vesting schedule. Deferred compensation expense related to the Company’s matching contributions was not significant during the years ended December 31, 2020, December 31, 2019, and 2018. 401(k) Defined Contribution Plan The Company maintains a 401(k) savings plan for all its full-time employees who meet certain eligibility requirements. Effective January 1, 2015, the 401(k) savings plan was amended to allow employees to contribute up to 75% of their annual compensation in accordance with federal contribution limits with 100% matching by the Company on the first 3% of compensation and 50% on the next 2% of compensation for a total of a 4% match. Employer contributions attributable to employees of The Aaron's Company through the separation and distribution date are included within (loss) earnings from discontinued operations in the consolidated statements of earnings. The Company’s expense related to the plan was $2.5 million in 2020, $2.2 million in 2019 and $1.9 million in 2018. Employee Stock Purchase Plan |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business PROG Holdings, Inc. ("we," "our," "us," the "Company", or "PROG Holdings") is a financial technology holding company with two operating and reportable segments: (i) Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers,through point-of-sale and e-commerce retail partners, via in-store, mobile and online solutions; and (ii) Vive Financial ("Vive"), which provides customers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products, through private label and Vive-branded cards. On November 30, 2020, PROG Holdings, Inc. (previously Aaron's Holdings Company, Inc.) completed the separation of its Aaron's Business segment from its Progressive Leasing and Vive segments. The separation was effected through a tax-free distribution of all outstanding shares of common stock of The Aaron's Company, Inc. ("The Aaron's Company") to the PROG Holdings shareholders of record as of the close of business on November 27, 2020 (referred to as the "separation and distribution transaction"). Through that distribution, shareholders of PROG Holdings received one share of The Aaron's Company for every two shares of PROG Holdings common stock. Upon completion of the separation and distribution transaction on November 30, 2020, The Aaron's Company became an independent, publicly traded company under the symbol "AAN" on the New York Stock Exchange, while PROG Holdings continued to be listed on the New York Stock Exchange under the new symbol "PRG". Our Progressive Leasing segment provides consumers with lease-purchase solutions through approximately 25,000 third-party point-of-sale partner locations ("POS partners") and e-commerce websites in 45 states and the District of Columbia. It does so by purchasing merchandise from the POS partners desired by customers and, in turn, leasing that merchandise to the customers through a cancellable lease-to-own transaction. Progressive Leasing consequently has no stores of its own, but rather offers lease-purchase solutions to the customers of traditional and e-commerce retailers. Our Vive segment primarily serves customers that may not qualify for traditional prime lending offers who desire to purchase goods and services from participating merchants. Vive offers customized programs, with services that include revolving loans through private label and Vive-branded credit cards. Vive's current network of over 3,000 POS partner locations and e-commerce websites includes furniture, mattresses, fitness equipment, and home improvement retailers, as well as medical and dental service providers. |
Basis of Presentation | Basis of Presentation The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Generally, actual experience has been consistent with management’s prior estimates and assumptions. Management does not believe these estimates or assumptions will change significantly in the future absent unidentified and unforeseen events, such as higher forecasted unemployment rates and the observed significant market volatility associated with the COVID-19 pandemic. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of PROG Holdings, Inc. and its subsidiaries, each of which is wholly-owned. Intercompany balances and transactions between consolidated entities have been eliminated. |
Revenue Recognition | Revenue Recognition Lease Revenues and Fees Progressive Leasing provides merchandise, consisting primarily of furniture, appliances, electronics, jewelry, mobile phones and accessories, bedding, and a variety of other products, to its customers for lease under certain terms agreed to by the customer. Progressive Leasing offers customers of traditional and e-commerce retailers a lease-purchase solution through leases with payment terms that can generally be renewed up to 12 months. Progressive Leasing does not require deposits upon inception of customer agreements. The customer has the right to acquire ownership either through early buyout options or through payment of all required lease payments. The agreements are cancellable at any time by either party without penalty. Progressive Leasing lease revenues are earned prior to the lease payment due date and are recorded net of related sales taxes as earned. Payment due date terms include weekly, bi-weekly, and monthly frequencies. Revenue recorded prior to the payment due date results in unbilled receivables recognized in accounts receivable, net of allowances in the accompanying consolidated balance sheets. Beginning January 1, 2019, Progressive Leasing lease revenues are recorded net of a provision for returns and uncollectible renewal payments. For periods prior to 2019, Progressive Leasing's provision for returns and uncollectible renewal payments were recorded within operating expenses in the consolidated statements of earnings. All of the Company’s customer lease agreements are considered operating leases. The Company maintains ownership of the lease merchandise until all payment obligations are satisfied under the lease ownership agreements. Initial direct costs related to lease purchase agreements are capitalized as incurred and amortized as operating expense over the estimated lease term. The capitalized costs have been classified within prepaid expenses and other assets in the accompanying consolidated balance sheets. |
Interest and Fees on Loans Receivable | Interest and Fees on Loans Receivable Vive extends or declines credit to an applicant through its bank partners based upon the applicant’s credit rating and other factors. Qualifying applicants receive a credit card to finance their initial purchase and to use in subsequent purchases at the merchant or other participating merchants for an initial 24-month period, which Vive may renew if the cardholder remains in good standing. Vive acquires the loan receivable from merchants through its third-party bank partners at a discount from the face value of the loan. The discount is comprised of a merchant fee discount and a promotional fee discount, if applicable. The merchant fee discount represents a pre-negotiated, nonrefundable discount that generally ranges from 3% to 25% of the loan face value. The discount is designed to cover the risk of loss related to the portfolio of cardholder charges and Vive’s direct origination costs. The merchant fee discount and origination costs are presented net on the consolidated balance sheets in loans receivable. Cardholders generally have an initial 24-month period that the card is active. The merchant fee discount, net of the origination costs, is amortized on a net basis and is recorded as interest and fee revenue on loans receivable in the consolidated statements of earnings on a straight-line basis over the initial 24-month period. The discount from the face value of the loan on the acquisition of the loan receivable from the merchant through the third-party bank partners may also include a promotional fee discount, which generally ranges from 1% to 8%. The promotional fee discount is intended to compensate the holder of the loan receivable (i.e., Vive) for deferred or reduced interest rates that are offered to the cardholder for a specified period on the outstanding loan balance (generally for six six The customer is typically required to make monthly minimum payments of at least 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 27% to 35.99%, are compounded daily for cards that do not qualify for deferred or reduced interest promotional periods. Interest income, which is recognized based upon the amount of the loans outstanding, is recognized as interest and fees on loans receivable when earned if collectibility is reasonably assured. For credit cards that provide deferred interest, if the balance is not paid off during the promotional period or if the cardholder defaults, interest is billed to the customers at standard rates and the cumulative amount owed is charged to the cardholder account in the month that the promotional period expires. For credit cards that provide reduced interest, if the balance is not paid off during the promotional period, interest is billed to the cardholder at standard rates in the month that the promotional period expires or when the cardholder defaults. The Company recognizes interest revenue during the promotional period based on its historical experience related to cardholders that fail to pay off balances during the promotional period if collectibility is reasonably assured. |
Lease Merchandise | Lease Merchandise Progressive Leasing merchandise consists primarily of furniture, appliances, electronics, jewelry, mobile phones and accessories, bedding, and a variety of other products and is recorded at the lower of depreciated cost or net realizable value. Progressive Leasing depreciates lease merchandise to a 0% salvage value generally over 12 months. Depreciation is accelerated upon early buyout. All of Progressive Leasing's merchandise, net of accumulated depreciation and allowances, represents on-lease merchandise. The Company records a provision for write-offs on the allowance method. The allowance for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based on historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends including, but not limited to, the potential unfavorable impacts of the COVID-19 pandemic on our business. Given the significant uncertainty regarding the impacts of the COVID-19 pandemic on our business, a high level of estimation was involved in determining the allowance as of December 31, 2020; therefore, actual lease merchandise write-offs could differ materially from the allowance. |
Advertising | Advertising The Company expenses advertising costs as incurred. Total advertising costs amounted to $6.6 million, $7.0 million and $4.4 million for the years ended December 31, 2020, 2019 and 2018, respectively, and are classified within operating expenses in the consolidated statements of earnings. |
Stock-Based Compensation | Stock-Based CompensationThe Company has stock-based employee compensation plans, which are more fully described in Note 12 to these consolidated financial statements. The Company estimates the fair value for the options granted on the grant date using a Black-Scholes-Merton option-pricing model. The fair value of each share of restricted stock units ("RSUs"), restricted stock awards ("RSAs") and performance share units ("PSUs") awarded is equal to the market value of a share of the Company’s common stock on the grant date. The Company estimates the fair value of awards issued under the Company's employee stock purchase plan ("ESPP") using a series of Black-Scholes pricing models that consider the components of the "lookback" feature of the plan, including the underlying stock, call option and put option. The design of awards issued under the Company's ESPP is described in more detail in Note 12 to these consolidated financial statements. |
Deferred Income Taxes | Deferred Income Taxes Deferred income taxes represent primarily temporary differences between the amounts of assets and liabilities for financial and tax reporting purposes. The Company’s largest temporary differences arise principally from the use of accelerated depreciation methods on lease merchandise for tax purposes. |
Earnings Per Share | Earnings Per ShareEarnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. The computation of earnings per share assuming dilution includes the dilutive effect of stock options, RSUs, RSAs, PSUs and awards issuable under the Company's ESPP (collectively, "share-based awards") as determined under the treasury stock method. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company classifies highly liquid investments with maturity dates of three months or less when purchased as cash equivalents. The Company maintains its cash and cash equivalents in a limited number of banks. Bank balances typically exceed coverage provided by the Federal Deposit Insurance Corporation. However, due to the size and strength of the banks in which the balances are held, any exposure to loss is believed to be minimal. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and amounted to $61.2 million and $67.1 million, net of allowances, as of December 31, 2020 and December 31, 2019, respectively. |
Loans Receivable | Loans Receivable, Net Gross loans receivable represents the principal balances of credit card charges at Vive's participating merchants that remain due from cardholders, plus unpaid interest and fees due from cardholders. The allowance and unamortized fees represent uncollectible amounts; merchant fee discounts, net of capitalized origination costs; promotional fee discounts; and deferred annual card fees. Economic conditions and loan performance trends are closely monitored to manage and evaluate exposure to credit risk. Trends in delinquency rates are an indicator of credit risk within the loans receivable portfolio, including the migration of loans between delinquency categories over time. Charge-off rates represent another indicator of the potential for future credit losses. The risk in the loans receivable portfolio is correlated with broad economic trends, such as current and projected unemployment rates, stock market volatility, and changes in medium and long-term risk-free rates, which are considered in determining the allowance for loan losses and can have a material effect on credit performance. Effective January 1, 2020 with the adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments ("CECL"), as discussed within "Recent Accounting Pronouncements" below, expected lifetime losses on loans receivable are recognized upon loan origination, which requires the Company to make its best estimate of probable lifetime losses at the time of origination. Our credit card loans do not have contractually stated maturity dates, which requires the Company to estimate an average life of loan by analyzing historical payment trends to determine an expected remaining life of the loan balance. The Company segments its loans receivable portfolio into homogenous pools by FICO score and by delinquency status and evaluates loans receivable collectively for impairment when similar risk characteristics exist. The Company calculates the allowance for loan losses based on internal historical loss information and incorporates observable and forecasted macroeconomic data over a twelve-month reasonable and supportable forecast period. Incorporating macroeconomic data could have a material impact on the measurement of the allowance to the extent that forecasted data changes significantly, such as higher forecasted unemployment rates and the observed significant market volatility associated with the COVID-19 pandemic. For any periods beyond the twelve-month reasonable and supportable forecast period described above, the Company reverts to using historical loss information on a straight-line basis over a period of six months and utilizes historical loss information for the remaining life of the portfolio. The Company may also consider other qualitative factors in estimating the allowance, as necessary. For the purposes of determining the allowance as of December 31, 2020, management considered other qualitative factors such as the beneficial impact of government stimulus measures to our customer base that were not fully factored into the macroeconomic forecasted data. We believe those stimulus measures may have contributed to the recent favorable cardholder payment trends we are experiencing at Vive, and we believe that additional government stimulus measures enacted in December 2020 could positively influence future cardholder payment trends as well. We also considered the uncertain nature and extent of any future government stimulus programs and the potential impact, if any, these programs may have on the ability of Vive's cardholders to make payments as they come due. The allowance for loan losses is maintained at a level considered appropriate to cover expected future losses of principal, interest and fees on active loans in the loans receivable portfolio. The appropriateness of the allowance is evaluated at each period end. To the extent that actual results differ from estimates of uncollectible loans receivable, including the significant uncertainties caused by the COVID-19 pandemic, the Company's results of operations and liquidity could be materially affected. Delinquent loans receivable includes those that are 30 days or more past due based on their contractual billing dates. In response to the COVID-19 pandemic, the Company has granted affected customers payment deferrals while allowing them to maintain their delinquency status for an additional 30 days per deferral. The Company places loans receivable on nonaccrual status when they are greater than 90 days past due or upon notification of cardholder bankruptcy, death or fraud. The Company discontinues accruing interest and fees and amortizing merchant fee discounts and promotional fee discounts for loans |
Property, Plant and Equipment | Property, Plant and Equipment The Company records property, plant and equipment at cost. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the respective assets, which range from three one Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software, which ranges from five Gains and losses related to dispositions and retirements are recognized as incurred. Maintenance and repairs are also expensed as incurred, and leasehold improvements are capitalized and amortized over the lesser of the lease term or the asset's useful life. Depreciation expense for property, plant and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $9.7 million, $9.1 million and $7.1 million during the years ended December 31, 2020, 2019 and 2018, respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property, plant and equipment, was $3.4 million, $2.9 million and $0.6 million during the years ended December 31, 2020, 2019 and 2018, respectively. The Company assesses its long-lived assets other than goodwill and other indefinite-lived intangible assets for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. If it is determined that the carrying amount of an asset is not recoverable, the Company compares the carrying amount of the asset to its fair value as estimated using discounted expected future cash flows, market values or replacement values for similar assets. The amount by which the carrying amount exceeds the fair value of the asset, if any, is recognized as an impairment loss. |
Goodwill | GoodwillGoodwill represents the excess of the purchase price paid over the fair value of the identifiable net tangible and intangible assets acquired in connection with business acquisitions. Progressive Leasing is the only reporting unit with goodwill. Impairment occurs when the carrying amount of goodwill is not recoverable from future cash flows. The Company’s goodwill is not amortized but is subject to an impairment test at the reporting unit level annually as of October 1 and more frequently if events or circumstances indicate that impairment may have occurred. Factors which could necessitate an interim impairment assessment include a sustained decline in the Company’s stock price, prolonged negative industry or economic trends and significant underperformance relative to historical results, projected future operating results, or the Company fails to successfully execute on one or more elements of Progressive Leasing's strategic plans. |
Other Intangibles | Other Intangibles Other intangibles represent identifiable intangible assets acquired as a result of the Progressive Leasing and Vive acquisitions, which the Company recorded at the estimated fair value as of the respective acquisition dates. The Company amortized the definite-lived intangible assets acquired as a result of the Vive acquisition on a straight-line basis over five years. The Company amortizes the definite-lived intangible assets acquired as a result of the Progressive Leasing acquisition on a straight-line basis over periods ranging ten Indefinite-lived intangible assets represent the value of trade names and trade marks acquired as part of the Progressive Leasing acquisition. At the date of acquisition, the Company determined that no legal, regulatory, contractual, competitive, economic or other factors limit the useful life of the trade name intangible asset and, therefore, the useful life is considered indefinite. The Company reassesses this conclusion quarterly and continues to believe the useful life of this asset is indefinite. Indefinite-lived intangible assets are not amortized but are subject to an impairment test annually and when events or circumstances indicate that impairment may have occurred. The Company performs the impairment test for its indefinite-lived intangible assets on October 1 in conjunction with its annual goodwill impairment test. The Company completed its indefinite-lived intangible asset impairment test as of October 1, 2020 and determined that no impairment had occurred. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company measures a liability related to its non-qualified deferred compensation plan, which represents benefits accrued for plan participants and is valued at the quoted market prices of the participants’ investment elections, at fair value on a recurring basis. The Company maintains certain financial assets and liabilities that are not measured at fair value but for which fair value is disclosed. The fair values of the Company’s other current financial assets and liabilities, including cash and cash equivalents, accounts receivable and accounts payable, approximate their carrying values due to their short-term nature. The fair value of any revolving credit borrowings also approximate their carrying amounts. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Leases . In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases ("ASC 842"), which requires lessees to recognize assets and liabilities for most leases and changes certain aspects of lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Companies must use a modified retrospective approach to adopt ASC 842; however, the Company adopted an optional transition method in which entities are permitted to not apply the requirements of ASC 842 in the comparative periods presented within the financial statements in the year of adoption, with recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The application of this optional transition method resulted in a cumulative-effect adjustment of $2.6 million representing an increase to the Company’s January 1, 2019 retained earnings balance, net of tax, due primarily to the recognition of deferred gains recorded under previous sale and operating leaseback transactions. The ASC 842 transition guidance requires companies to recognize any deferred gains not resulting from off-market terms as a cumulative adjustment to retained earnings upon adoption of ASC 842. As a lessor, a majority of the Company’s revenue generating activities are within the scope of ASC 842. The new standard did not materially impact the timing of revenue recognition. Effective January 1, 2019, ASC 842 resulted in the Company classifying the Progressive Leasing provision for returns and uncollectible renewal payments as a reduction of lease revenue and fees within the consolidated statements of earnings. For periods reported herein prior to January 1, 2019, the Progressive Leasing provision for returns and uncollectible renewal payments was recorded as bad debt expense within operating expenses in the consolidated statements of earnings. The Company has customer lease agreements with lease and non-lease components that fall within the scope of ASU 2014-09, Revenue from Contracts with Customers ("ASC 606") and has elected to aggregate these components into a single component for all classes of underlying assets as the lease and non-lease components generally have the same timing and pattern of transfer. The new standard also impacts the Company as a lessee by requiring substantially all of its operating leases to be recognized on the balance sheet as operating lease right-of-use assets and operating lease liabilities. See Note 7 to these consolidated financial statements for further details regarding the Company’s leasing activities as a lessee. The Company elected to adopt a package of practical expedients offered by the FASB which removes the requirement to reassess whether expired or existing contracts contain leases and removes the requirement to reassess the lease classification for any existing leases prior to the adoption date of January 1, 2019. Additionally, the Company has elected the practical expedient to include both lease and non-lease components as a single component and account for it as a lease. Financial Instruments - Credit Losses . In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments ("CECL"). The main objective of the update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by companies at each reporting date. For trade and other receivables, held to maturity debt securities and other instruments, companies will be required to use a new forward-looking "expected losses" model that generally will result in the recognition of allowances for losses earlier than under the historical accounting guidance. The Company's operating lease activities within Progressive Leasing are not impacted by ASU 2016-13, as operating lease receivables are not in the scope of the CECL standard. The Company was impacted by ASU 2016-13 within its Vive segment because the standard requires earlier recognition of estimated credit losses in the consolidated statements of earnings. Although the CECL standard requires the estimated credit losses to be recognized at the time of loan origination, the related merchant fee discount continues to be amortized as interest and fee revenue on a straight-line basis over the initial 24-month period that the card is active. Therefore, on a loan-by-loan basis, the CECL standard results in higher losses recognized upon loan origination for the estimated credit losses, generally followed by higher net earnings as the related merchant fee discount is amortized to interest and fee revenue, and as interest revenue is accrued and earned on the outstanding loan. Although the CECL standard results in earlier recognition of credit losses in the statements of earnings, there are no changes related to the loan cash flows or the fundamental economics of the business. The Company adopted ASU 2016-13 on a modified retrospective basis during the first quarter of 2020, resulting in a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The application of this transition method resulted in a cumulative-effect non-cash adjustment of $6.7 million, representing a decrease to the Company's January 1, 2020 retained earnings, net of tax. This adjustment was primarily due to the recognition of a $9.5 million increase to the allowance for loan losses as a result of adopting the new CECL standard. The Company has finalized its internal controls and accounting policies related to the CECL standard, which were in place as of January 1, 2020. Pending Adoption In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The standard provides temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the discontinuation of the London Interbank Overnight ("LIBO") rate, which is currently expected to occur on December 31, 2021. The Company's Revolving Facility debt agreement currently references the LIBO rate for determining interest payable on outstanding borrowings. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts referencing the LIBO rate. The new guidance provides an expedient which simplifies accounting analyses under current GAAP for contract modifications if the change is directly related to a change from the LIBO rate to a new interest rate index. The Company is continuing to evaluate the provisions of ASU 2020–04 and the impacts of transitioning to an alternative rate; however, we do not expect it to have a material impact to the Company's consolidated financial statements or to any key terms of our revolving facility other than the discontinuation of the LIBO rate. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Allowance for Lease Merchandise | The following table shows the components of the allowance for lease merchandise write-offs, which is included within lease merchandise, net in the consolidated balance sheets: Year Ended December 31, (In Thousands) 2020 2019 2018 Beginning Balance $ 47,362 $ 35,784 $ 26,642 Merchandise Written off, net of Recoveries (132,702) (141,938) (114,205) Provision for Write-offs 131,332 153,516 123,347 Ending Balance $ 45,992 $ 47,362 $ 35,784 |
Calculation of Dilutive Stock Awards | The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2020 2019 2018 Weighted Average Shares Outstanding 67,261 67,322 69,128 Dilutive Effect of Share-Based Awards 761 — 1,469 Weighted Average Shares Outstanding Assuming Dilution 68,022 67,322 70,597 |
Allowance for Doubtful Accounts | The following table shows the components of the accounts receivable allowance: Year Ended December 31, (In Thousands) 2020 2019 2018 Beginning Balance $ 65,573 $ 53,159 $ 39,954 Accounts Written Off, net of Recoveries (232,566) (263,828) (214,755) Accounts Receivable Provision 223,357 276,242 227,960 Ending Balance $ 56,364 $ 65,573 $ 53,159 The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the fiscal years presented: Year Ended December 31, (In Thousands) 2020 2019 2018 Bad Debt Expense 1 $ 86 $ 1,337 $ 227,960 Provision for Returns and Uncollected Renewal Payments 2 223,271 274,905 — Accounts Receivable Provision $ 223,357 $ 276,242 $ 227,960 1 Bad debt expense is recorded within operating expenses in the consolidated financial statements. 2 |
Loan Portfolio Credit Quality Indicators | Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2020 and 2019 by FICO score as determined at the time of loan origination: December 31, FICO Score Category 2020 2019 600 or Less 7.5 % 6.7 % Between 600 and 700 79.3 % 80.1 % 700 or Greater 13.2 % 13.2 % The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: (In Thousands) As of December 31, 2020 2020 2019 2018 2017 2016 Prior Total FICO Score Category: 600 or Less $ 7,125 $ 1,792 $ 535 $ 80 $ 54 $ 6 $ 9,592 Between 600 and 700 64,809 17,529 6,818 4,005 2,417 363 95,941 700 or Greater 11,478 1,795 1,053 695 638 83 15,742 Total Amortized Cost $ 83,412 $ 21,116 $ 8,406 $ 4,780 $ 3,109 $ 452 $ 121,275 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following: December 31, (In Thousands) 2020 2019 Prepaid Expenses $ 23,030 $ 17,545 Unamortized Initial Direct Costs on Lease Agreement Originations 4,986 5,623 Prepaid Insurance 3,639 — Other Assets 7,899 4,288 $ 39,554 $ 27,456 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: December 31, (In Thousands) 2020 2019 Accounts Payable $ 8,630 $ 12,497 Accrued Salaries and Benefits 18,120 12,598 Accrued Sales and Personal Property Taxes 12,933 11,633 Income Taxes Payable 18,183 — Other Accrued Expenses and Liabilities 20,383 21,894 $ 78,249 $ 58,622 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the major classes of line items constituting (loss) earnings of The Aaron's Company, which are included within the (loss) income from discontinued operations, net of income tax, in the consolidated statements of earnings and the operating and investing cash flows of the discontinued operations. 11 Months Ended November 30, Year Ended December 31, (In Thousands) 2020 2019 2018 Total Revenues $ 1,591,217 $ 1,784,477 $ 1,792,624 Operating (Loss) Profit (381,244) 78,261 132,810 (Loss) Earnings before Income Taxes from Discontinued Operations 1 (393,415) 65,175 95,405 Income Tax (Benefit) Expense from Discontinued Operations (98,323) 9,088 24,498 (Loss) Earnings from Discontinued Operations, Net of Income Tax $ (295,092) $ 56,087 $ 70,907 Cash Flows: Cash Provided by Operating Activities from Discontinued Operations $ 193,319 $ 172,314 $ 199,539 Cash Used in Investing Activities from Discontinued Operations $ (64,508) $ (76,187) $ (246,002) 1 (Loss) Earnings before Income Taxes from Discontinued Operations during the year ended December 31, 2020 reflects a $446.9 million goodwill impairment loss related to the Aaron's Business segment, $36.5 million of third-party transaction costs related to the separation and distribution transaction, $14.7 million related to a sales and marketing early termination fee, and a $4.1 million loss on debt extinguishment. The following table summarizes the assets and liabilities of discontinued operations at December 31, 2019: (In Thousands) December 31, 2019 ASSETS: Cash and Cash Equivalents $ — Accounts Receivable, Net 37,079 Lease Merchandise, Net 781,598 Property, Plant and Equipment, Net 207,301 Operating Lease Right-of-Use Assets 304,932 Goodwill 447,780 Other Intangibles, Net 14,234 Income Tax Receivable 1,083 Prepaid Expenses and Other Assets 86,815 Total Assets of Discontinued Operations $ 1,880,822 LIABILITIES: Accounts Payable and Accrued Expenses $ 214,194 Deferred Income Tax Liability 210,103 Customer Deposits and Advance Payments 47,692 Operating Lease Liabilities 335,482 Debt 341,030 Total Liabilities of Discontinued Operations $ 1,148,501 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table summarizes information related to indefinite-lived intangible assets at December 31: December 31, (In Thousands) 2020 2019 Trade Names and Trademarks $ 53,000 $ 53,000 Goodwill 288,801 288,801 Indefinite-lived Intangible Assets $ 341,801 $ 341,801 |
Summary of Identifiable Intangible Assets | The following table summarizes information related to definite-lived intangible assets at December 31: 2020 2019 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal-Use Software $ 14,000 $ (14,000) $ — $ 14,000 $ (14,000) $ — Technology 68,550 (46,861) 21,689 68,550 (39,859) 28,691 Merchant Relationships 181,000 (101,268) 79,732 181,000 (86,184) 94,816 Other Intangibles 1 — — — 350 (295) 55 Total $ 263,550 $ (162,129) $ 101,421 $ 263,900 $ (140,338) $ 123,562 1 Other intangibles include non-compete agreements that ended during 2020 and were fully amortized at December 31, 2020. |
Estimated Future Amortization Expense | As of December 31, 2020, estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2021 $ 21,683 2022 21,683 2023 21,684 2024 16,972 2025 15,083 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes financial liabilities measured at fair value on a recurring basis: December 31, 2020 December 31, 2019 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ 1,740 $ — $ — $ 1,467 $ — |
Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the fair value for Vive's loans receivable: December 31, 2020 December 31, 2019 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Loans Receivable, Net $ — $ — $ 119,895 $ — $ — $ 89,790 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following is a summary of the Company’s property, plant, and equipment: December 31, (In Thousands) 2020 2019 Leasehold Improvements $ 12,117 $ 11,364 Fixtures, Equipment and Vehicles 32,271 29,517 Internal-Use Software 17,400 14,001 Internal-Use Software - In Development 1,595 3,071 63,383 57,953 Less: Accumulated Depreciation and Amortization 1 (36,678) (27,588) $ 26,705 $ 30,365 1 Accumulated amortization of internal-use software development costs amounted to $7.5 million and $4.2 million as of December 31, 2020 and 2019, respectively. |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of the Components of Loans Receivable, Net | The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2020 2019 Loans Receivable, Gross $ 131,422 $ 96,387 Unamortized Fees (10,147) (6,223) Loans Receivable, Amortized Cost 121,275 90,164 Allowance for Loan Losses (42,127) (14,911) Loans Receivable, Net of Allowances and Unamortized Fees $ 79,148 $ 75,253 |
Loan Portfolio Credit Quality Indicators | Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2020 and 2019 by FICO score as determined at the time of loan origination: December 31, FICO Score Category 2020 2019 600 or Less 7.5 % 6.7 % Between 600 and 700 79.3 % 80.1 % 700 or Greater 13.2 % 13.2 % The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: (In Thousands) As of December 31, 2020 2020 2019 2018 2017 2016 Prior Total FICO Score Category: 600 or Less $ 7,125 $ 1,792 $ 535 $ 80 $ 54 $ 6 $ 9,592 Between 600 and 700 64,809 17,529 6,818 4,005 2,417 363 95,941 700 or Greater 11,478 1,795 1,053 695 638 83 15,742 Total Amortized Cost $ 83,412 $ 21,116 $ 8,406 $ 4,780 $ 3,109 $ 452 $ 121,275 |
Aging of the Loans Receivable Balance | Included in the table below is an aging of the loans receivable, gross balance: (Dollar Amounts in Thousands) December 31, Aging Category 1 2020 2019 30-59 Days Past Due 5.7 % 6.9 % 60-89 Days Past Due 2.6 % 3.6 % 90 or more Days Past Due 3.1 % 5.0 % Past Due Loans Receivable 11.4 % 15.5 % Current Loans Receivable 88.6 % 84.5 % Balance of Loans Receivable on Nonaccrual Status $ 1,962 $ 2,284 Balance of Loans Receivable Greater Than 90 Days Past Due and Still Accruing Interest and Fees $ — $ — 1 Customers that were granted a payment deferral due to factors caused by the COVID-19 pandemic maintained their delinquency status for an additional 30 days. This did not materially impact the aging disclosed above. |
Allowance for Loan Losses | The table below presents the components of the allowance for loan losses: Year Ended December 31, (In Thousands) 2020 2019 Beginning Balance $ 14,911 $ 12,970 CECL Transition Adjustment 1 9,463 — Provision for Loan Losses 34,038 21,667 Charge-offs (19,504) (22,204) Recoveries 3,219 2,478 Ending Balance $ 42,127 $ 14,911 1 Upon the January 1, 2020 adoption of CECL as further described in Note 1 to these consolidated financial statements, the Company increased its allowance for loan losses by $9.5 million. The increase was recorded as a cumulative-effect non-cash adjustment of $6.7 million, net of tax, to the opening balance of the Company's 2020 retained earnings. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The Company’s total operating lease cost is comprised of the following: Year Ended December 31, (In Thousands) 2020 2019 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 $ 4,481 $ 4,253 Sublease Receipts 2 — — Total Operating Lease cost: $ 4,481 $ 4,253 1 Short-term and variable lease expenses were not significant during the years ended December 31, 2020 and 2019. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. The Company also incurred $4.7 million of rental expense during the year ended December 31, 2018 under ASC 840, Leases . 2 The Company did not have any subleases in which it remained as the primary obligor during 2020 or 2019, and currently does not anticipate receiving any future sublease receipts. |
Supplemental Cash Flow Information | Additional information regarding the Company’s leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2020 2019 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 5,252 $ 4,497 Total Cash paid for amounts included in measurement of Lease Liabilities 5,252 4,497 Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities $ — $ 4,379 |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to leases is as follows: December 31, (In Thousands) Balance Sheet Classification 2020 2019 Assets Total Lease Assets Operating Lease Right-of-Use Assets $ 20,613 $ 24,279 Liabilities Total Lease Liabilities Operating Lease Liabilities $ 29,516 $ 33,904 |
Schedule of Weighted-Average Discount Rate and Weighted-Average Remaining Lease Term | December 31, 2020 2019 Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Operating Leases 3.4 % 5.7 3.4 % 6.4 1 Upon adoption of ASC 842, discount rates for existing operating leases were established as of January 1, 2019. |
Operating Lease, Liability, Maturity | The table also includes a reconciliation of the future undiscounted cash flows to the present value of operating lease liabilities included in the consolidated balance sheets. (In Thousands) Total 2021 $ 5,702 2022 5,767 2023 5,373 2024 5,197 2025 4,160 Thereafter 6,584 Total Undiscounted Cash Flows 32,783 Less: Interest (3,267) Present Value of Lease Liabilities $ 29,516 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Future Maturities of Long Term Debt and Capital Lease Obligations | Below is a summary of future principal maturities due under the Revolving Facility as of December 31, 2020. For purposes of the below table, we have assumed that the $50.0 million of outstanding borrowings at December 31, 2020 will remain outstanding until November 24, 2025, the maturity date of the Revolving Facility. However, all borrowings under the Revolving Facility may be repaid at any time by the Company without penalty. (In Thousands) 2021 $ — 2022 — 2023 — 2024 — 2025 50,000 Thereafter — Total $ 50,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | ollowing is a summary of the Company’s income tax expense from continuing operations: Year Ended December 31, (In Thousands) 2020 2019 2018 Current Income Tax Expense: Federal $ (15,895) $ 4,453 $ (5,435) State 16,219 11,206 9,575 324 15,659 4,140 Deferred Income Tax Expense: Federal 37,132 38,353 30,314 State 493 (1,784) (2,958) 37,625 36,569 27,356 Income Tax Expense $ 37,949 $ 52,228 $ 31,496 |
Components of Deferred Income Tax Liabilities and Assets | Significant components of the Company’s deferred income tax liabilities and assets from continuing operations are as follows: December 31, (In Thousands) 2020 2019 Deferred Tax Liabilities: Lease Merchandise and Property, Plant and Equipment $ 179 $ 336 Goodwill and Other Intangibles — 119 Investment in Partnership 150,988 165,042 Operating Lease Right-of-Use Assets 447 681 Other, Net — — Total Deferred Tax Liabilities 151,614 166,178 Deferred Tax Assets: Accrued Liabilities 10,699 5,137 Advance Payments — — Operating Lease Liabilities 472 710 Other, Net 17,539 60,039 Total Deferred Tax Assets 28,710 65,886 Less Valuation Allowance (4,034) — Net Deferred Tax Liabilities $ 126,938 $ 100,292 |
Effective Tax Rate Differs from Statutory United States Federal Income Tax Rate | The Company’s effective tax rate from continuing operations differs from the statutory United States Federal income tax rate as follows: Year Ended December 31, 2020 2019 2018 Statutory Rate 21.0 % 21.0 % 21.0 % Increases (Decreases) in United States Federal Taxes Resulting From: State Income Taxes, net of Federal Income Tax Benefit 4.6 26.9 3.4 Permanent difference for loss on Progressive FTC matter — 133.1 — NOL Carryback under CARES Act (13.1) — — Other Permanent Differences (1.0) (7.4) (1.5) Deferred Tax Adjustments 1.1 5.8 (0.4) Current FIN 48 Expense (0.3) 7.2 (0.1) Other, net 1.7 2.5 (2.3) Effective Tax Rate 14.0 % 189.1 % 20.1 % |
Summary of Activity Related to Uncertain Tax Positions | The following table summarizes the activity related to the Company’s uncertain tax positions: Year Ended December 31, (In Thousands) 2020 2019 2018 Balance at January 1, $ 3,699 $ 1,896 $ 1,701 Additions Based on Tax Positions Related to the Current Year 26 103 128 Additions for Tax Positions of Prior Years 220 1,957 595 Prior Year Reductions (108) (32) (85) Statute Expirations (1,053) (225) (160) Settlements (36) — (283) Balance at December 31, $ 2,748 $ 3,699 $ 1,896 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options, Valuation Assumptions | The weighted-average fair value of options granted and the weighted-average assumptions used in the Black-Scholes-Merton option pricing model for such grants were as follows: 2020 2019 2018 Dividend Yield 0.4 % 0.3 % 0.3 % Expected Volatility 39.4 % 36.5 % 34.8 % Risk-free Interest Rate 0.9 % 2.5 % 2.6 % Expected Term (in years) 5.3 5.3 5.3 Weighted-average Fair Value of Stock Options Granted $ 13.48 $ 19.59 $ 16.54 |
Summary Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Number Outstanding Weighted Average Remaining Contractual Weighted Average Number Exercisable Weighted Average $20.00-30.00 200,926 5.19 $ 24.11 200,926 $ 24.11 30.01-40.00 201,776 8.86 36.33 — — 40.01-50.00 320,126 7.49 46.52 147,533 45.34 20.00-50.00 722,828 7.23 37.45 348,459 33.10 |
Summary of Stock Option Activity | The table below summarizes option activity for the year ended December 31, 2020: Options Weighted Average Weighted Average Aggregate Weighted Outstanding at January 1, 2020 1,730 $ 34.71 Granted - pre-spin 400 38.44 Forfeited/expired - pre-spin (99) 44.53 Exercised - pre-spin (920) 26.87 Separation of The Aaron's Company, Inc. on November 30, 2020 (1,111) 41.67 Granted in Equity Conversion on November 30, 2020 723 37.45 Outstanding at December 31, 2020 723 37.45 7.2 $ 11,873 $ 12.96 Expected to Vest 366 41.60 8.4 4,491 14.76 Exercisable at December 31, 2020 348 33.10 6.1 7,237 11.06 |
Summary of Restricted Stock Activity | The following table summarizes information about restricted stock activity during 2020: Restricted Stock Weighted Average Non-vested at January 1, 2020 494 $ 44.33 Granted - pre-spin 375 41.45 Forfeited - pre-spin (65) 44.89 Vested - pre-spin (209) 41.33 Separation of The Aaron's Company, Inc. on November 30, 2020 (595) 43.50 Granted in Equity Conversion on November 30, 2020 487 37.35 Forfeited - post-spin (2) 40.88 Vested - post-spin (25) 34.44 Non-vested at December 31, 2020 460 37.49 |
Summary of Performance Share Units | The following table summarizes information about performance share unit activity during 2020: Performance Share Units Weighted Average Non-vested at January 1, 2020 582 $ 43.93 Granted - pre-spin 248 36.05 Forfeited/unearned - pre-spin (62) 45.55 Vested - pre-spin (325) 37.78 Separation of The Aaron's Company, Inc. on November 30, 2020 (443) 44.11 Granted in Equity Conversion on November 30, 2020 346 39.10 Forfeited/unearned - post-spin (3) 38.90 Vested - post-spin (47) 34.33 Non-vested at December 31, 2020 296 39.85 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations | The following table presents revenue by source and by segment for the year ended December 31, 2020: Year Ended December 31, 2020 (In Thousands) Progressive Leasing Vive Total Lease Revenues and Fees 1 $ 2,443,405 $ — $ 2,443,405 Interest and Fees on Loans Receivable 2 — 41,190 41,190 Total $ 2,443,405 $ 41,190 $ 2,484,595 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Credit Card Interest & Fees . The following table presents revenue by source and by segment for the year ended December 31, 2019: Year Ended December 31, 2019 (In Thousands) Progressive Leasing Vive Total Lease Revenues and Fees 1 $ 2,128,133 $ — $ 2,128,133 Interest and Fees on Loans Receivable 2 — 35,046 35,046 Total $ 2,128,133 $ 35,046 $ 2,163,179 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Credit Card Interest & Fees. The following table presents revenue by source and by segment for the year ended December 31, 2018: Year Ended December 31, 2018 (In Thousands) Progressive Leasing Vive Total Lease Revenues and Fees 1 $ 1,998,981 $ — $ 1,998,981 Interest and Fees on Loans Receivable 2 — 37,318 37,318 Total $ 1,998,981 $ 37,318 $ 2,036,299 1 Revenue within the scope of ASC 840, Leases . 2 Revenue within the scope of ASC 310, Credit Card Interest & Fees. Year Ended December 31, (In Thousands) 2020 2019 2018 Earnings (Loss) From Continuing Operations Before Income Tax Expense: Progressive Leasing $ 320,636 $ 64,283 $ 191,303 Vive (11,180) (6,127) (4,398) Unallocated Corporate Expenses (37,880) (30,543) (30,106) Total Earnings From Continuing Operations Before Income Tax Expense $ 271,576 $ 27,613 $ 156,799 December 31, (In Thousands) 2020 2019 Assets: Progressive Leasing $ 1,209,650 $ 1,331,153 Vive 107,754 85,825 Total Assets $ 1,317,404 $ 1,416,978 Year Ended December 31, (In Thousands) 2020 2019 2018 Depreciation and Amortization 1 : Progressive Leasing $ 30,547 $ 29,967 $ 27,974 Vive 1,273 1,385 1,432 Total Depreciation and Amortization $ 31,820 $ 31,352 $ 29,406 Depreciation of Lease Merchandise: Progressive Leasing $ 1,690,922 $ 1,445,027 $ 1,219,034 Vive — — — Total Depreciation of Lease Merchandise $ 1,690,922 $ 1,445,027 $ 1,219,034 Interest Expense 2 : Progressive Leasing $ 187 $ — $ — Vive — — — Total Interest Expense $ 187 $ — $ — Capital Expenditures: Progressive Leasing $ 6,403 $ 12,608 $ 10,711 Vive 405 424 1,035 Total Capital Expenditures $ 6,808 $ 13,032 $ 11,746 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | (In Thousands, Except Per Share Data) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Year Ended December 31, 2020 Revenues $ 668,442 $ 599,164 $ 611,337 $ 605,652 $ 2,484,595 Net Earnings from Continuing Operations 57,682 58,997 74,643 42,305 233,627 (Loss) Earnings from Discontinued Operations, Net of Tax (337,687) 9,380 34,702 (1,487) (295,092) Net (Loss) Earnings (280,005) 68,377 109,345 40,818 (61,465) Basic Earnings (Loss) Per Share: Continuing Operations 0.86 0.88 1.11 0.62 3.47 Discontinued Operations (5.05) 0.14 0.51 (0.02) (4.39) Total Basic (Loss) Earnings per Share (4.19) 1.02 1.62 0.60 (0.91) Diluted Earnings (Loss) Per Share: Continuing Operations 0.85 0.87 1.10 0.62 3.43 Discontinued Operations (4.98) 0.14 0.51 (0.02) (4.34) Total Diluted (Loss) Earnings per Share (4.13) 1.01 1.61 0.60 (0.90) Year Ended December 31, 2019 Revenues $ 532,047 $ 524,944 $ 537,536 $ 568,652 $ 2,163,179 Net Earnings (Loss) from Continuing Operations 38,788 39,112 35,611 (138,126) (24,615) Earnings from Discontinued Operations, Net of Tax 17,290 3,538 4,190 31,069 56,087 Net Earnings (Loss) 56,078 42,650 39,801 (107,057) 31,472 Basic Earnings (Loss) Per Share: Continuing Operations 0.58 0.58 0.53 (2.06) (0.37) Discontinued Operations 0.26 0.05 0.06 0.46 0.83 Total Basic Earnings (Loss) per Share 0.84 0.63 0.59 (1.60) 0.47 Diluted Earnings (Loss) Per Share: Continuing Operations 0.56 0.57 0.52 (2.06) (0.37) Discontinued Operations 0.25 0.05 0.06 0.46 0.83 Total Diluted Earnings (Loss) per Share 0.81 0.62 0.58 (1.60) 0.47 Note: The sum of quarterly earnings per share may differ from the full year amounts due to rounding, or in the case of diluted earnings per share, because certain securities that are antidilutive in certain quarters may not be antidilutive on a full-year basis. |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Narrative (Details) retail_location in Thousands | Oct. 01, 2020USD ($) | Dec. 31, 2020USD ($)state | Dec. 31, 2020USD ($)state | Dec. 31, 2020USD ($)segmentstate | Dec. 31, 2020USD ($)retail_locationstate | Dec. 31, 2020USD ($)stateshares | Dec. 31, 2020USD ($)segmentsstate | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Number of operating segments | 2 | 2 | |||||||
Number of reportable segments | 2 | 2 | |||||||
Number of point-of-sale partner locations | retail_location | 25 | ||||||||
Number of states in which entity operates | state | 45 | 45 | 45 | 45 | 45 | 45 | |||
Vendor incentives and rebates | $ 13,000,000 | $ 14,000,000 | $ 7,500,000 | ||||||
Advertising costs | 6,600,000 | 7,000,000 | 4,400,000 | ||||||
Accounts receivable, after allowance for credit loss | $ 61,254,000 | 61,254,000 | $ 61,254,000 | $ 61,254,000 | $ 61,254,000 | $ 61,254,000 | 67,080,000 | ||
Impairment of indefinite-lived intangibles | $ 0 | ||||||||
Depreciation expense for property, plant and equipment | 9,700,000 | 9,100,000 | 7,100,000 | ||||||
Amortization expense | 22,100,000 | 22,300,000 | 22,300,000 | ||||||
Computer Software, Intangible Asset | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Amortization expense | 3,400,000 | $ 2,900,000 | $ 600,000 | ||||||
Technology | DAMI | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Estimated useful lives of intangibles (in years) | 5 years | ||||||||
Technology | Progressive Leasing | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Estimated useful lives of intangibles (in years) | 10 years | ||||||||
Merchant Relationships | Progressive Leasing | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Estimated useful lives of intangibles (in years) | 12 years | ||||||||
Minimum | Building and Building Improvements | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Property, plant and equipment, useful life | 3 years | ||||||||
Minimum | Other depreciable property and equipment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Property, plant and equipment, useful life | 1 year | ||||||||
Minimum | Computer Software, Intangible Asset | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Maximum | Building and Building Improvements | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Property, plant and equipment, useful life | 12 years | ||||||||
Maximum | Other depreciable property and equipment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Property, plant and equipment, useful life | 7 years | ||||||||
Maximum | Computer Software, Intangible Asset | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Property, plant and equipment, useful life | 10 years | ||||||||
Maximum | Software updates | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Property, plant and equipment, useful life | 1 month | ||||||||
Restricted stock units | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Anti-dilutive Securities excluded from the computation of earnings per share assuming dilution | shares | 747,000 | 1,726,000 | 347,000 | ||||||
Progressive Leasing | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Accounts receivable, after allowance for credit loss | $ 61,200,000 | $ 61,200,000 | $ 61,200,000 | $ 61,200,000 | $ 61,200,000 | $ 61,200,000 | $ 67,100,000 | ||
Threshold period past due for write-off of lease receivable | 120 days | ||||||||
Vive | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Number of point-of-sale partner locations | retail_location | 3 |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Interest and Fees on Loans Receivable (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, merchant fee, percentage, promotional interest period one (in months) | 6 months |
Credit terms, merchant fee, percentage, promotional interest period two (in months) | 12 months |
Credit terms, merchant fee, percentage, promotional interest period three (in months) | 18 months |
Credit Card Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, privilege period | 24 months |
Credit terms, minimum payment required, percentage of outstanding loan balance | 3.50% |
Credit Card Loans | Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Merchant fee | 3.00% |
Financing receivable promotional fees percent | 1.00% |
Credit terms, interest rate, fixed and variable (percentage) | 27.00% |
Credit Card Loans | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Merchant fee | 25.00% |
Financing receivable promotional fees percent | 8.00% |
Credit terms, interest rate, fixed and variable (percentage) | 35.99% |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Lease Merchandise (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | |||
Lease merchandise salvage value percentage | 0.00% | ||
Lease Merchandise, net of Accumulated Depreciation and Allowances | $ 610,263 | $ 651,820 | |
Allowance for Lease Merchandise Write offs: | |||
Beginning Balance | 47,362 | 35,784 | $ 26,642 |
Merchandise Written off, net of Recoveries | (132,702) | (141,938) | (114,205) |
Provision for Write-offs | 131,332 | 153,516 | 123,347 |
Ending Balance | $ 45,992 | $ 47,362 | $ 35,784 |
Agreement One | Progressive Leasing | |||
Significant Accounting Policies [Line Items] | |||
Lease agreement period | 12 months |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Calculation of Dilutive Stock Awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Weighted Average Outstanding Basic ( in shares) | 67,261 | 67,322 | 69,128 |
Dilutive Effect of Share-Based Awards | 761 | 0 | 1,469 |
Weighted Average Shares Outstanding Assuming Dilution | 68,022 | 67,322 | 70,597 |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 65,573 | $ 53,159 | $ 39,954 |
Accounts Written Off, net of Recoveries | (232,566) | (263,828) | (214,755) |
Accounts Receivable Provision | 223,357 | 276,242 | 227,960 |
Ending Balance | $ 56,364 | $ 65,573 | $ 53,159 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Accounts Receivable Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Bad Debt Expense | $ 86 | $ 1,337 | $ 227,960 |
Provision for Returns and Uncollected Renewal Payments | 223,271 | 274,905 | 0 |
Accounts Receivable Provision | $ 223,357 | $ 276,242 | $ 227,960 |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Credit Quality Indicators (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
FICO Score, Less than 600 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 7.50% | 6.70% |
FICO Score, 600 to 699 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 79.30% | 80.10% |
FICO Score, Greater than 700 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 13.20% | 13.20% |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Prepaid Expenses | $ 23,030 | $ 17,545 |
Unamortized Initial Direct Costs on Lease Agreement Originations | 4,986 | 5,623 |
Prepaid Insurance | 3,639 | 0 |
Other Assets | 7,899 | 4,288 |
Prepaid Expense and Other Assets | $ 39,554 | $ 27,456 |
Business and Summary of Sign_12
Business and Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Accounts Payable | $ 8,630 | $ 12,497 |
Accrued Salaries and Benefits | 18,120 | 12,598 |
Accrued Sales and Personal Property Taxes | 12,933 | 11,633 |
Other Accrued Expenses and Liabilities | 20,383 | 21,894 |
Income Taxes Payable | 18,183 | 0 |
Accounts Payable and Accrued Liabilities | $ 78,249 | $ 58,622 |
Business and Summary of Sign_13
Business and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to stockholders' equity | $ 986,136 | $ 1,737,259 | $ 1,760,708 | $ 1,728,004 |
Financing Receivable, Allowance for Credit Loss | 42,127 | 14,911 | 12,970 | |
Revision of Prior Period, Accounting Standards Update, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss | 9,463 | 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to stockholders' equity | (6,715) | 2,592 | (1,729) | |
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to stockholders' equity | $ 1,236,378 | 2,029,613 | 2,005,344 | 1,819,524 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to stockholders' equity | $ (6,715) | $ 2,592 | $ (1,729) |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Interest Expense | $ 187 | $ 0 | $ 0 |
Gain (loss) on extinguishment of debt | 4,100 | ||
Repayments of Debt | 285,000 | ||
Debt | 341,000 | ||
Goodwill impairment | 446,893 | 0 | 0 |
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Interest Expense | 9,900 | 17,000 | $ 16,400 |
Debt | $ 341,030 | ||
Aaron's Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (loss) on extinguishment of debt | 4,100 | ||
Corporate Spin Off, Transaction Costs | 36,500 | ||
Goodwill impairment | 446,900 | ||
Early termination fee | $ 14,700 |
Discontinued Operations - Conso
Discontinued Operations - Consolidated Financial Statements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Total Assets of Discontinued Operations | $ 0 | $ 1,880,822 |
LIABILITIES: | ||
Debt | 341,000 | |
Liabilities of Discontinued Operations | $ 0 | 1,148,501 |
Discontinued Operations | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Cash and Cash Equivalents | 0 | |
Accounts Receivable, Net | 37,079 | |
Lease Merchandise, Net | 781,598 | |
Property, Plant and Equipment, Net | 207,301 | |
Operating Lease Right-of-Use Assets | 304,932 | |
Goodwill | 447,780 | |
Other Intangibles, Net | 14,234 | |
Disposal Group, Including Discontinued Operation, Income Taxes Receivable | 1,083 | |
Prepaid Expenses and Other Assets | 86,815 | |
Total Assets of Discontinued Operations | 1,880,822 | |
LIABILITIES: | ||
Accounts Payable and Accrued Expenses | 214,194 | |
Deferred Income Tax Liability | 210,103 | |
Customer Deposits and Advance Payments | 47,692 | |
Operating Lease Liabilities | 335,482 | |
Debt | 341,030 | |
Liabilities of Discontinued Operations | $ 1,148,501 |
Discontinued Operations - Con_2
Discontinued Operations - Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Nov. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||
Earnings from Discontinued Operations, Net of Tax | $ (1,487) | $ 34,702 | $ 9,380 | $ (337,687) | $ 31,069 | $ 4,190 | $ 3,538 | $ 17,290 | $ (295,092) | $ 56,087 | $ 70,907 | |
Discontinued Operations | ||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||
Total Revenues | $ 1,591,217 | 1,784,477 | 1,792,624 | |||||||||
Operating (Loss) Profit | (381,244) | 78,261 | 132,810 | |||||||||
(Loss) Earnings before Income Taxes from Discontinued Operations | (393,415) | 65,175 | 95,405 | |||||||||
Income Tax (Benefit) Expense from Discontinued Operations | (98,323) | 9,088 | 24,498 | |||||||||
Earnings from Discontinued Operations, Net of Tax | (295,092) | 56,087 | 70,907 | |||||||||
Cash Flows: | ||||||||||||
Cash Provided by Operating Activities from Discontinued Operations | 193,319 | 172,314 | 199,539 | |||||||||
Cash Used in Investing Activities from Discontinued Operations | $ (64,508) | $ (76,187) | $ (246,002) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 288,801 | $ 288,801 |
Indefinite-lived Intangible Assets | 341,801 | 341,801 |
Trade Names and Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trade Names and Trademarks | $ 53,000 | $ 53,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 263,550 | $ 263,900 |
Accumulated Amortization | (162,129) | (140,338) |
Net | 101,421 | 123,562 |
Acquired Internal Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 14,000 | 14,000 |
Accumulated Amortization | (14,000) | (14,000) |
Net | 0 | 0 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 68,550 | 68,550 |
Accumulated Amortization | (46,861) | (39,859) |
Net | 21,689 | 28,691 |
Merchant Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 181,000 | 181,000 |
Accumulated Amortization | (101,268) | (86,184) |
Net | 79,732 | 94,816 |
Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 0 | 350 |
Accumulated Amortization | 0 | (295) |
Net | $ 0 | $ 55 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 22.1 | $ 22.3 | $ 22.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 21,683 |
2022 | 21,683 |
2023 | 21,684 |
2024 | 16,972 |
2025 | $ 15,083 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Level 1 | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Deferred Compensation Liability | $ 0 | $ 0 |
Level 2 | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Deferred Compensation Liability | 1,740 | 1,467 |
Level 3 | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Deferred Compensation Liability | $ 0 | $ 0 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value for Loan Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Net | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Net | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Net | $ 119,895 | $ 89,790 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 63,383 | $ 57,953 |
Less: Accumulated Depreciation and Amortization | (36,678) | (27,588) |
Property, plant, and equipment, net | 26,705 | 30,365 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,117 | 11,364 |
Fixtures, Equipment and Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 32,271 | 29,517 |
Internal-Use Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 17,400 | 14,001 |
Internal-Use Software - In Development | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,595 | $ 3,071 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Internal-use software development cost, accumulated amortization | $ 7.5 | $ 4.2 |
Loans Receivable - Components o
Loans Receivable - Components of Loans Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | |||
Loans Receivable, Gross | $ 131,422 | $ 96,387 | |
Unamortized Fees | (10,147) | (6,223) | |
Loans Receivable, Amortized Cost | 121,275 | 90,164 | |
Allowance for Loan Losses | (42,127) | (14,911) | $ (12,970) |
Loans Receivable, Net of Allowances and Unamortized Fees | $ 79,148 | $ 75,253 |
Loans Receivable - Credit Quali
Loans Receivable - Credit Quality (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 83,412 | |
2019 | 21,116 | |
2018 | 8,406 | |
2017 | 4,780 | |
2016 | 3,109 | |
Prior | 452 | |
Loans Receivable, Amortized Cost | 121,275 | $ 90,164 |
FICO Score, Less than 600 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 7,125 | |
2019 | 1,792 | |
2018 | 535 | |
2017 | 80 | |
2016 | 54 | |
Prior | 6 | |
Loans Receivable, Amortized Cost | 9,592 | |
FICO Score, 600 to 699 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 64,809 | |
2019 | 17,529 | |
2018 | 6,818 | |
2017 | 4,005 | |
2016 | 2,417 | |
Prior | 363 | |
Loans Receivable, Amortized Cost | 95,941 | |
FICO Score, Greater than 700 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 11,478 | |
2019 | 1,795 | |
2018 | 1,053 | |
2017 | 695 | |
2016 | 638 | |
Prior | 83 | |
Loans Receivable, Amortized Cost | $ 15,742 |
Loans Receivable - Aging of the
Loans Receivable - Aging of the Loans Receivable Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 11.40% | 15.50% |
Current loans receivable (percentage) | 88.60% | 84.50% |
Balance of Loans Receivable on Nonaccrual Status | $ 1,962 | $ 2,284 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 5.70% | 6.90% |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 2.60% | 3.60% |
90 or more Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 3.10% | 5.00% |
Balance of Loans Receivable Greater Than 90 Days Past Due and Still Accruing Interest and Fees | $ 0 | $ 0 |
Loans Receivable - Components_2
Loans Receivable - Components of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of the Allowance For Loan Losses: | ||||
Beginning Balance | $ 14,911 | $ 12,970 | ||
Provision for Loan Losses | 34,038 | 21,667 | ||
Charge-offs | (19,504) | (22,204) | ||
Recoveries | 3,219 | 2,478 | ||
Ending Balance | 42,127 | 14,911 | ||
Adjustment to stockholders' equity | $ (986,136) | $ (1,737,259) | $ (1,760,708) | $ (1,728,004) |
Leases - Total Lease Expense (D
Leases - Total Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease Cost | $ 4,481 | $ 4,253 | |
Sublease Receipts | 0 | 0 | |
Operating Lease Cost Classified within Operating Expenses | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease Cost | $ 4,481 | $ 4,253 | $ 4,700 |
Leases - Leasing Activities (De
Leases - Leasing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating Cash Flows for Operating Leases | $ 5,252 | $ 4,497 |
Total Cash paid for amounts included in measurement of Lease Liabilities | 5,252 | 4,497 |
Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities | $ 0 | $ 4,379 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Total Lease Assets | $ 20,613 | $ 24,279 |
Present Value of Lease Liabilities | $ 29,516 | $ 33,904 |
Leases - Summary of the Weighte
Leases - Summary of the Weighted-Average Discount Rate and Weighted-Average Remaining Lease Term (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted Average Discount Rate | ||
Operating Leases | 3.40% | 3.40% |
Weighted Average Remaining Lease Term (in years) | ||
Operating Leases | 5 years 8 months 12 days | 6 years 4 months 24 days |
Leases - Operating and Finance
Leases - Operating and Finance Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 5,702 | |
2022 | 5,767 | |
2023 | 5,373 | |
2024 | 5,197 | |
2025 | 4,160 | |
Thereafter | 6,584 | |
Total Undiscounted Cash Flows | 32,783 | |
Less: Interest | (3,267) | |
Present Value of Lease Liabilities | $ 29,516 | $ 33,904 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) - USD ($) | Nov. 30, 2020 | Nov. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 24, 2020 |
Debt Instruments [Abstract] | ||||||
Borrowings (Repayments) on Revolving Facility, Net | $ 50,000,000 | $ 16,000,000 | ||||
Debt covenant, adjusted EBITDA plus lease expense to fixed charges (no greater than) | 2.50 | |||||
Repayments of Lines of Credit | $ 16,000,000 | |||||
Gain (loss) on extinguishment of debt | $ 4,100,000 | |||||
Letters of Credit | Subsidiaries [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Maximum borrowing capacity | $ 20,000,000 | |||||
DAMI Credit Facility | LIBOR | Revolving Credit Agreement | ||||||
Debt Instruments [Abstract] | ||||||
Interest rate basis spread (percentage) | 1.94% | |||||
Credit Facility, 2014 [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Debt covenant, total debt to Adjusted EBITDA (no greater than) | 3 | |||||
Term Loan | Revolving Credit Agreement | ||||||
Debt Instruments [Abstract] | ||||||
Repayments of Lines of Credit | $ 225,400,000 | |||||
Incremental Facilities | ||||||
Debt Instruments [Abstract] | ||||||
Maximum borrowing capacity | $ 300,000,000 | |||||
Swingline Loans on Customary Terms | Subsidiaries [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Maximum borrowing capacity | 25,000,000 | |||||
Line of Credit | Revolving Credit Agreement | ||||||
Debt Instruments [Abstract] | ||||||
Maximum borrowing capacity | 50,000,000 | $ 350,000,000 | ||||
Debt instrument, fee amount | $ 2,200,000 | |||||
Line of Credit | LIBOR | Minimum | ||||||
Debt Instruments [Abstract] | ||||||
Interest rate basis spread (percentage) | 1.50% | |||||
Line of Credit | LIBOR | Maximum | ||||||
Debt Instruments [Abstract] | ||||||
Interest rate basis spread (percentage) | 2.50% | |||||
Line of Credit | Base Rate | ||||||
Debt Instruments [Abstract] | ||||||
Interest rate, basis spread, percentage of Base Rate lower than LIBOR | 1.00% | |||||
Line of Credit | Credit Facility, 2014 [Member] | Revolving Credit Agreement | ||||||
Debt Instruments [Abstract] | ||||||
Line of credit amount outstanding | $ 300,000,000 | |||||
Line of Credit | Credit Facility, 2014 [Member] | Revolving Credit Agreement | Minimum | ||||||
Debt Instruments [Abstract] | ||||||
Commitment fee for unused balance amount (percentage) | 0.20% | |||||
Line of Credit | Credit Facility, 2014 [Member] | Revolving Credit Agreement | Maximum | ||||||
Debt Instruments [Abstract] | ||||||
Commitment fee for unused balance amount (percentage) | 0.35% | |||||
Unsecured Debt | ||||||
Debt Instruments [Abstract] | ||||||
Repayments of Lines of Credit | $ 61,300,000 |
Indebtedness - Future Maturitie
Indebtedness - Future Maturities of Long Term Debt and Capital Lease Obligations (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Maturities of Long-term Debt [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 50,000 |
Thereafter | 0 |
Total | $ 50,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 242,200 | |||
Income tax receivable | $ 0 | $ 17,607 | 84,400 | |
Uncertain tax benefits that, if recognized, would affect effective tax rate | 2,600 | 3,600 | ||
Recognized interest and penalties expense (benefit) related to unrecognized tax benefits | (100) | 200 | 100 | |
Accrued interest and penalties | 200 | 400 | ||
Income Tax Expense (Benefit), CARES Act | 34,200 | |||
Vive | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 5,200 | $ 5,400 | ||
Income tax receivable | 1,800 | |||
Income Tax Expense (Benefit), CARES Act | 1,400 | |||
Forecast | Vive | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax receivable | $ 1,800 | |||
State Tax | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 7,300 | |||
Tax credit carryforward | $ 1,800 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current Income Tax Expense: | |||
Federal | $ (15,895) | $ 4,453 | $ (5,435) |
State | 16,219 | 11,206 | 9,575 |
Current Income Tax Expense | 324 | 15,659 | 4,140 |
Deferred Income Tax Expense: | |||
Federal | 37,132 | 38,353 | 30,314 |
State | 493 | (1,784) | (2,958) |
Deferred Income Tax Expense (Benefit) | 37,625 | 36,569 | 27,356 |
Income Tax Expense | $ 37,949 | $ 52,228 | $ 31,496 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Liabilities and Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Liabilities: | ||
Lease Merchandise and Property, Plant and Equipment | $ 179 | $ 336 |
Goodwill and Other Intangibles | 0 | 119 |
Investment in Partnership | 150,988 | 165,042 |
Operating Lease Right-of-Use Assets | 447 | 681 |
Other, Net | 0 | 0 |
Total Deferred Tax Liabilities | 151,614 | 166,178 |
Deferred Tax Assets: | ||
Accrued Liabilities | 10,699 | 5,137 |
Advance Payments | 0 | 0 |
Operating Lease Liabilities | 472 | 710 |
Other, Net | 17,539 | 60,039 |
Total Deferred Tax Assets | 28,710 | 65,886 |
Less Valuation Allowance | (4,034) | 0 |
Net Deferred Tax Liabilities | $ 126,938 | $ 100,292 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Differs from Statutory United States Federal Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory Rate | 21.00% | 21.00% | 21.00% |
Increases (Decreases) in United States Federal Taxes | |||
State Income Taxes, net of Federal Income Tax Benefit | 4.60% | 26.90% | 3.40% |
Permanent difference for loss on Progressive FTC matter | 0.00% | 133.10% | 0.00% |
NOL Carryback under CARES Act | (13.10%) | 0.00% | 0.00% |
Other Permanent Differences | (1.00%) | (7.40%) | (1.50%) |
Deferred Tax Adjustments | 1.10% | 5.80% | (0.40%) |
Current FIN 48 Expense | (0.30%) | 7.20% | (0.10%) |
Other, net | 1.70% | 2.50% | (2.30%) |
Effective Tax Rate | 14.00% | 189.10% | 20.10% |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of activity related to uncertain tax positions: | |||
Beginning Balance | $ 3,699 | $ 1,896 | $ 1,701 |
Additions Based on Tax Positions Related to the Current Year | 26 | 103 | 128 |
Additions for Tax Positions of Prior Years | 220 | 1,957 | 595 |
Prior Year Reductions | (108) | (32) | (85) |
Statute Expirations | (1,053) | (225) | (160) |
Settlements | (36) | 0 | (283) |
Ending Balance | $ 2,748 | $ 3,699 | $ 1,896 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Accrued regulatory expense | $ 100,000 | $ 175,200,000 |
Insurance proceeds received, before tax | (800,000) | |
Liability reserve | 400,000 | |
Minimum | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Loss contingency in excess of accrual, range of possible loss | 0 | |
Maximum | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Loss contingency in excess of accrual, range of possible loss | 200,000 | |
Unused Credit Card Lines | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Remaining credit available | 287,300,000 | 225,000,000 |
Marketing and Advertising Expense | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Non-cancelable commitments | 12,300,000 | |
Non-cancelable commitments due in 2021 | 9,200,000 | |
Non-cancelable commitments due in 2022 | 1,900,000 | |
Non-cancelable commitments due in 2023 | 600,000 | |
Non-cancelable commitments due in 2024 | 300,000 | |
Non-cancelable commitments due in 2025 | 300,000 | |
Federal Trade Commission Inquiry | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Accrued regulatory expense | 179,300,000 | |
Accrued professional fees | $ 4,300,000 | |
Litigation settlement, amount awarded to other party | $ 175,000,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Treasury Shares | 23,029,434 | 24,034,053 | |
Remaining authorized stock repurchase program, amount | $ 262,000 | ||
Authorized stock repurchase program, amount | 300,000 | ||
Stock repurchased during period | $ 351 | ||
Repurchased shares, amount | $ 69,255 | $ 168,735 | |
Preferred stock, authorized (in shares) | 1,000,000 | ||
Preferred stock, issued (in shares) | 0 | ||
Treasury Stock | |||
Class of Stock [Line Items] | |||
Repurchased shares, amount | $ 69,255 | $ 168,735 | |
Nonvoting Common Stock | |||
Class of Stock [Line Items] | |||
Common stock repurchased (in shares) | 1,156,184 | 3,749,493 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 3,570,891 | ||
Stock based compensation expense | $ 41.2 | $ 26.5 | $ 28.2 |
Tax benefit from exercise of stock options | 10.1 | 6.6 | 6.9 |
Excess tax benefit from share-based compensation, operating activities | $ 2.6 | $ 4.8 | $ 5.7 |
Stock options granted (in shares) | 400,000 | 293,000 | 361,000 |
Aggregate Intrinsic value of options exercised | $ 24.9 | $ 6.5 | $ 6.6 |
Fair value of options vested | 7.8 | 4.6 | 3.5 |
Continuing Operations | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock based compensation expense | $ 35.8 | $ 21.2 | $ 21.3 |
2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unexercised options lapse period (in years) | 10 years | ||
2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unexercised options lapse period (in years) | 10 years | ||
Employee Matters Agreement | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share Based Compensation Expense, Award Modifications | $ 5.2 | ||
Retirement-Related Modifications | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Converted wards, incremental cost | 4.5 | ||
Converted awards, incremental cost related to accelerated vesting of equity awards | 8.7 | ||
Converted awards, incremental cost recognized | $ 13.2 | ||
Employee Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 75,314 | ||
Unrecognized compensation expense related to non-vested award | $ 13.5 | ||
Unrecognized compensation expense related to non-vested award, recognition period (in years) | 1 year 4 months 2 days | ||
Weighted average grant date fair value (in dollars per share) | $ 38.55 | $ 42.07 | $ 35.74 |
Employee Stock | Minimum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Employee Stock | Minimum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Employee Stock | Maximum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 3 years | ||
Employee Stock | Maximum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 5 years | ||
Restricted Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock granted (in shares) | 375,000 | 225,000 | 248,000 |
Weighted average grant date fair value (in dollars per share) | $ 41.45 | $ 54.28 | $ 46.01 |
Total fair value of shares vesting | $ 10.5 | $ 14.6 | $ 24.8 |
Restricted Stock | Executive Officer Performance Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted Stock | Minimum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Restricted Stock | Minimum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Restricted Stock | Maximum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted Stock | Maximum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 5 years | ||
Performance Share Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total fair value of shares vesting | $ 18.4 | $ 22.1 | $ 22.6 |
Performance Share Units | Minimum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Performance percentage | 0.00% | ||
Performance Share Units | Maximum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Performance percentage | 200.00% | ||
Performance criteria is met | Performance Share Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Award vesting rights (percentage) | 33.33% | ||
One-year service period | Performance Share Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Award vesting rights (percentage) | 33.33% | ||
Award requisite service period (in years) | 1 year | ||
Two-year service period | Performance Share Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Award vesting rights (percentage) | 33.33% | ||
Award requisite service period (in years) | 2 years |
Stock-based Compensation - Weig
Stock-based Compensation - Weighted Average Valuation Assumptions (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend Yield | 0.40% | 0.30% | 0.30% |
Expected Volatility | 39.40% | 36.50% | 34.80% |
Risk-free Interest Rate | 0.90% | 2.50% | 2.60% |
Expected Term (in years) | 5 years 3 months 18 days | 5 years 3 months 18 days | 5 years 3 months 18 days |
Weighted-average Fair Value of Stock Options Granted (in dollars per share) | $ 13.48 | $ 19.59 | $ 16.54 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary Information about Stock Options Outstanding (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 37.45 | $ 34.71 |
$20.00-30.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 20 | |
Exercise price, upper range limit (in dollars per share) | $ 30 | |
Options Outstanding | 200,926 | |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 2 months 8 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 24.11 | |
Options Exercisable | 200,926 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 24.11 | |
30.01-40.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 30.01 | |
Exercise price, upper range limit (in dollars per share) | $ 40 | |
Options Outstanding | 201,776 | |
Options outstanding, weighted average remaining contractual life (in years) | 8 years 10 months 9 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 36.33 | |
Options Exercisable | 0 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0 | |
40.01-50.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 50 | |
Exercise price, upper range limit (in dollars per share) | $ 40.01 | |
Options Outstanding | 320,126 | |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 5 months 26 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 46.52 | |
Options Exercisable | 147,533 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 45.34 | |
20.00-50.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 20 | |
Exercise price, upper range limit (in dollars per share) | $ 50 | |
Options Outstanding | 722,828 | |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 2 months 23 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 37.45 | |
Options Exercisable | 348,459 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 33.10 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Options | |
Beginning Balance (In Shares) | shares | 1,730 |
Granted - pre-spin (In Shares) | shares | 400 |
Forfeited/expired (In Shares) | shares | (99) |
Exercised (In Shares) | shares | (920) |
Separation of The Aaron's Company, Inc. on November 30, 2020 (In shares) | shares | (1,111) |
Granted (In Shares) | shares | 723 |
Ending Balance (In Shares) | shares | 723 |
Expected to Vest (In Shares) | shares | 366 |
Exercisable (In Shares) | shares | 348 |
Weighted Average Exercise Price | |
Beginning Balance (in dollars per share) | $ 34.71 |
Granted - pre-spin (in dollars per share) | 38.44 |
Forfeited/expired (in dollars per share) | 44.53 |
Exercised (in dollars per share) | 26.87 |
Separation of The Aaron's Company, Inc. on November 30, 2020 (in dollars per share) | 41.67 |
Granted (in dollars per share) | 37.45 |
Ending Balance (in dollars per share) | 37.45 |
Expected to Vest (in dollars per share) | 41.60 |
Exercisable (in dollars per share) | $ 33.10 |
Weighted Average Remaining Contractual Term (in Years) | |
Outstanding | 7 years 2 months 12 days |
Expected to Vest | 8 years 4 months 24 days |
Exercisable | 6 years 1 month 6 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 11,873 |
Expected | $ | 4,491 |
Exercisable | $ | $ 7,237 |
Weighted Average Fair Value | |
Outstanding (in dollars per share) | $ 12.96 |
Expected to Vest (in dollars per share) | 14.76 |
Exercisable (in dollars per share) | $ 11.06 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Restricted Stock and Performance Share Units Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 10.5 | $ 14.6 | $ 24.8 |
Restricted Stock | |||
Beginning Balance (In Shares) | 494 | ||
Granted, pre-spin (In Shares) | 375 | ||
Forfeited/unearned - pre-spin (in Shares) | (65) | ||
Vested - pre-spin (In Shares) | (209) | ||
Separation of The Aaron's Company, Inc. on November 30, 2020 (In Shares) | (595) | ||
Granted in Equity Conversion on November 30, 2020 (In Shares) | 487 | ||
Forfeited/unearned - post-spin (In Shares) | (2) | ||
Vested - post-spin (In Shares) | (25) | ||
Ending Balance (In Shares) | 460 | 494 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 44.33 | ||
Granted - pre-spin (in dollars per share) | 41.45 | ||
Forfeited/unearned - pre-spin (in dollars per share) | 44.89 | ||
Vested - pre-spin (in dollars per share) | 41.33 | ||
Separation of The Aaron's Company, Inc. on November 30, 2020 (in dollars per share) | 43.50 | ||
Granted in Equity Conversion (in dollars per share) | 37.35 | ||
Forfeited/unearned - post-spin (in dollars per share) | 40.88 | ||
Vested - post-spin (in dollars per share) | 34.44 | ||
Ending Balance (in dollars per share) | $ 37.49 | $ 44.33 | |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 18.4 | $ 22.1 | $ 22.6 |
Restricted Stock | |||
Beginning Balance (In Shares) | 582 | ||
Granted, pre-spin (In Shares) | 248 | ||
Forfeited/unearned - pre-spin (in Shares) | (62) | ||
Vested - pre-spin (In Shares) | (325) | ||
Separation of The Aaron's Company, Inc. on November 30, 2020 (In Shares) | (443) | ||
Granted in Equity Conversion on November 30, 2020 (In Shares) | 346 | ||
Forfeited/unearned - post-spin (In Shares) | (3) | ||
Vested - post-spin (In Shares) | (47) | ||
Ending Balance (In Shares) | 296 | 582 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 43.93 | ||
Granted - pre-spin (in dollars per share) | 36.05 | ||
Forfeited/unearned - pre-spin (in dollars per share) | 45.55 | ||
Vested - pre-spin (in dollars per share) | 37.78 | ||
Separation of The Aaron's Company, Inc. on November 30, 2020 (in dollars per share) | 44.11 | ||
Granted in equity conversion on November 30, 2020 (in dollars per share) | 39.10 | ||
Forfeited/unearned - post-spin (in dollars per share) | 38.90 | ||
Vested - post-spin (in dollars per share) | 34.33 | ||
Ending Balance (in dollars per share) | $ 39.85 | $ 43.93 |
Stock-based Compensation - Empl
Stock-based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | May 09, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 3,570,891 | |||
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
ESPP purchase price of common stock, percent of market price, on first and last day of trading date | 85.00% | |||
Fixed contribution rate | 10.00% | |||
Maximum contribution amount | $ 25 | |||
Compensation cost for ESPP | $ 600 | $ 500 | $ 200 | |
Number of shares issued under the ESPP | 52,107 | 46,642 | 25,239 | |
Weighted average grant date fair value (in dollars per share) | $ 38.55 | $ 42.07 | $ 35.74 | |
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 75,314 | |||
Employee Stock | Continuing Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost for ESPP | $ 300 | $ 200 | $ 100 |
Segments - Narrative (Details)
Segments - Narrative (Details) - 12 months ended Dec. 31, 2020 | segment | segments |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 2 | 2 |
Number of reportable segments | 2 | 2 |
Segments - Disaggregated Revenu
Segments - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 605,652 | $ 611,337 | $ 599,164 | $ 668,442 | $ 568,652 | $ 537,536 | $ 524,944 | $ 532,047 | $ 2,484,595 | $ 2,163,179 | $ 2,036,299 |
Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,443,405 | 2,128,133 | 1,998,981 | ||||||||
Vive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 41,190 | 35,046 | 37,318 | ||||||||
Lease Revenues and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,443,405 | 2,128,133 | 1,998,981 | ||||||||
Lease Revenues and Fees | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,443,405 | 2,128,133 | 1,998,981 | ||||||||
Lease Revenues and Fees | Vive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Interest and Fees on Loans Receivable | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 41,190 | 35,046 | 37,318 | ||||||||
Interest and Fees on Loans Receivable | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Interest and Fees on Loans Receivable | Vive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 41,190 | $ 35,046 | $ 37,318 |
Segments - Information on Segme
Segments - Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Tax (Benefit) Expense | $ 271,576 | $ 27,613 | $ 156,799 |
Assets | 1,317,404 | 3,297,800 | |
Depreciation of Lease Merchandise | 1,690,922 | 1,445,027 | 1,219,034 |
Interest Expense | 187 | 0 | 0 |
Capital Expenditures | 64,345 | 92,963 | 78,845 |
Legal and Regulatory (Income) Expense, Net of Insurance Recoveries | (835) | 179,261 | 0 |
Discontinued Operations | |||
Segment Reporting Information [Line Items] | |||
Interest Expense | 9,900 | 17,000 | 16,400 |
Federal Trade Commission Inquiry | |||
Segment Reporting Information [Line Items] | |||
Litigation settlement, amount awarded to other party | 175,000 | ||
Progressive Leasing | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Tax (Benefit) Expense | 320,636 | 64,283 | 191,303 |
Progressive Leasing | Retirement-Related Modifications | |||
Segment Reporting Information [Line Items] | |||
Compensation cost for ESPP | 2,400 | ||
Vive | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Tax (Benefit) Expense | (11,180) | (6,127) | (4,398) |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,317,404 | 1,416,978 | |
Depreciation and Amortization | 31,820 | 31,352 | 29,406 |
Depreciation of Lease Merchandise | 1,690,922 | 1,445,027 | 1,219,034 |
Interest Expense | 187 | 0 | 0 |
Capital Expenditures | 6,808 | 13,032 | 11,746 |
Operating Segments | Progressive Leasing | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,209,650 | 1,331,153 | |
Depreciation and Amortization | 30,547 | 29,967 | 27,974 |
Depreciation of Lease Merchandise | 1,690,922 | 1,445,027 | 1,219,034 |
Interest Expense | 187 | 0 | 0 |
Capital Expenditures | 6,403 | 12,608 | 10,711 |
Operating Segments | Vive | |||
Segment Reporting Information [Line Items] | |||
Assets | 107,754 | 85,825 | |
Depreciation and Amortization | 1,273 | 1,385 | 1,432 |
Depreciation of Lease Merchandise | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Capital Expenditures | 405 | 424 | 1,035 |
Unallocated Corporate Expenses | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Tax (Benefit) Expense | (37,880) | $ (30,543) | $ (30,106) |
Unallocated Corporate Expenses | Retirement-Related Modifications | |||
Segment Reporting Information [Line Items] | |||
Compensation cost for ESPP | $ 15,600 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 605,652 | $ 611,337 | $ 599,164 | $ 668,442 | $ 568,652 | $ 537,536 | $ 524,944 | $ 532,047 | $ 2,484,595 | $ 2,163,179 | $ 2,036,299 | |
Net Earnings (Loss) from Continuing Operations | 42,305 | 74,643 | 58,997 | 57,682 | (138,126) | 35,611 | 39,112 | 38,788 | 233,627 | (24,615) | 125,303 | |
Earnings from Discontinued Operations, Net of Tax | (1,487) | 34,702 | 9,380 | (337,687) | 31,069 | 4,190 | 3,538 | 17,290 | (295,092) | 56,087 | 70,907 | |
Net (Loss) Earnings | $ 40,818 | $ 109,345 | $ 68,377 | $ (280,005) | $ (107,057) | $ 39,801 | $ 42,650 | $ 56,078 | $ (61,465) | $ 31,472 | $ 196,210 | |
Continuing Operations (in dollars per share) | $ 0.62 | $ 1.11 | $ 0.88 | $ 0.86 | $ (2.06) | $ 0.53 | $ 0.58 | $ 0.58 | $ 3.47 | $ (0.37) | $ 1.81 | |
Discontinued Operations (in dollars per share) | (0.02) | 0.51 | 0.14 | (5.05) | 0.46 | 0.06 | 0.05 | 0.26 | (4.39) | 0.83 | 1.03 | |
Earnings Per Share (in dollars per share) | 0.60 | 1.62 | 1.02 | (4.19) | (1.60) | 0.59 | 0.63 | 0.84 | (0.91) | 0.47 | 2.84 | |
Continuing Operations (in dollars per share) | 0.62 | 1.10 | 0.87 | 0.85 | (2.06) | 0.52 | 0.57 | 0.56 | 3.43 | (0.37) | 1.77 | |
Discontinued Operations (in dollars per share) | (0.02) | 0.51 | 0.14 | (4.98) | 0.46 | 0.06 | 0.05 | 0.25 | (4.34) | 0.83 | 1.01 | |
Earnings Per Share Assuming Dilution (in dollars per share) | $ 0.60 | $ 1.61 | $ 1.01 | $ (4.13) | $ (1.60) | $ 0.58 | $ 0.62 | $ 0.81 | $ (0.90) | $ 0.47 | $ 2.78 | |
Accounts Receivable, allowances | $ 56,364 | $ 65,573 | $ 56,364 | $ 65,573 | $ 53,159 | $ 39,954 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||||
Accrued regulatory expense | $ 100 | $ 100 | $ 175,200 | |||
Stock based compensation expense | 41,200 | 26,500 | $ 28,200 | |||
Impairment of Goodwill | 446,893 | 0 | $ 0 | |||
Gain (loss) on extinguishment of debt | 4,100 | |||||
Federal Trade Commission Inquiry | ||||||
Business Acquisition [Line Items] | ||||||
Accrued regulatory expense | 179,300 | 179,300 | ||||
Litigation settlement, amount awarded to other party | $ 175,000 | |||||
The Aaron's Company, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Stock based compensation expense | 15,600 | $ 2,400 | ||||
Corporate Spin Off, Transaction Costs | $ 28,200 | $ 5,800 | $ 2,500 | |||
Aaron's Business | ||||||
Business Acquisition [Line Items] | ||||||
Impairment of Goodwill | 446,900 | |||||
Corporate Spin Off, Transaction Costs | 36,500 | |||||
Gain (loss) on extinguishment of debt | $ 4,100 |
Compensation Arrangements - Def
Compensation Arrangements - Deferred Compensation (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Deferred compensation plan liability | $ 1,700,000 | $ 1,500,000 | ||
Cash surrender value of the policies | $ 2,000,000 | 1,500,000 | ||
Employer matching contribution, maximum (percentage) | 100.00% | |||
Compensation expense related to 401(k) savings plan | $ 2,500,000 | 2,200,000 | $ 1,900,000 | |
Deferred compensation expense related to company's matching contributions | $ 0 | 0 | 0 | |
Employee | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Percentage of receipt of base compensation (up to) | 75.00% | |||
Employee | Nonqualified Plan | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Maximum contribution per employee (percentage) | 4.00% | |||
Vesting period | 3 years | |||
Employee | Unfunded Plan | Nonqualified Plan | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Maximum annual contributions per employee | $ 11,400 | $ 11,200 | $ 11,000 | |
Employee | First contribution | Nonqualified Plan | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Employer matching contribution, maximum (percentage) | 100.00% | |||
Maximum contribution per employee (percentage) | 3.00% | |||
Employee | Second contribution | Nonqualified Plan | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Employer matching contribution, maximum (percentage) | 50.00% | |||
Maximum contribution per employee (percentage) | 2.00% | |||
Non Employee Director | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Percentage of receipt of base compensation (up to) | 100.00% |
Compensation Arrangements - 401
Compensation Arrangements - 401(k) Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum 401 (k) plan contribution rates as percentage of employees earnings | 75.00% | ||
Employer matching contribution, maximum (percentage) | 100.00% | ||
Employer 401 (k) matching contribution to employee, 50% Maximum | 50.00% | ||
Initial employer 401(k) matching contribution to employee (percentage) | 4.00% | ||
Compensation expense related to 401(k) savings plan | $ 2.5 | $ 2.2 | $ 1.9 |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial employer 401(k) matching contribution to employee (percentage) | 3.00% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial employer 401(k) matching contribution to employee (percentage) | 2.00% |