Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-39628 | ||
Entity Registrant Name | PROG HOLDINGS, INC. | ||
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 | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 923,341,852 | ||
Entity Common Stock, Shares Outstanding | 43,688,712 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2024 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. | ||
Entity Central Index Key | 0001808834 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Salt Lake City, Utah |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS: | ||
Cash and Cash Equivalents | $ 155,416 | $ 131,880 |
Accounts Receivable (net of allowances of $64,180 in 2023 and $69,264 in 2022) | 67,879 | 64,521 |
Lease Merchandise (net of accumulated depreciation and allowances of $423,466 in 2023 and $467,355 in 2022) | 633,427 | 648,043 |
Loans Receivable (net of allowances and unamortized fees of $50,022 in 2023 and $53,635 in 2022) | 126,823 | 130,966 |
Property and Equipment, Net | 24,104 | 23,852 |
Operating Lease Right-of-Use Assets | 9,271 | 11,875 |
Goodwill | 296,061 | 296,061 |
Other Intangibles, Net | 91,664 | 114,411 |
Income Tax Receivable | 32,918 | 18,864 |
Deferred Income Tax Assets | 2,981 | 2,955 |
Prepaid Expenses and Other Assets | 50,711 | 48,481 |
Total Assets | 1,491,255 | 1,491,909 |
LIABILITIES & SHAREHOLDERS' EQUITY: | ||
Accounts Payable and Accrued Expenses | 151,259 | 135,025 |
Deferred Income Tax Liabilities | 104,838 | 137,261 |
Customer Deposits and Advance Payments | 35,713 | 37,074 |
Operating Lease Liabilities | 15,849 | 21,122 |
Debt | 592,265 | 590,966 |
Total Liabilities | 899,924 | 921,448 |
Commitments and Contingencies (Note 10) | ||
Shareholders' Equity: | ||
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at December 31, 2023 and 2022; Shares Issued: 82,078,654 at December 31, 2023 and 2022 | 41,039 | 41,039 |
Additional Paid-in Capital | 352,421 | 338,814 |
Retained Earnings | 1,293,073 | 1,154,235 |
Total Stockholders' Equity before Treasury Stock | 1,686,533 | 1,534,088 |
Less: Treasury Shares at Cost | ||
Common Stock: 38,404,527 Shares at December 31, 2023 and 34,044,102 at December 31, 2022 | (1,095,202) | (963,627) |
Total Shareholders' Equity | 591,331 | 570,461 |
Total Liabilities & Shareholders' Equity | $ 1,491,255 | $ 1,491,909 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 64,180 | $ 69,264 |
Lease merchandise, accumulated depreciation | 423,466 | 467,355 |
Loans receivable, allowances | $ 50,022 | $ 53,635 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 225,000,000 | 225,000,000 |
Common stock, shares issued (in shares) | 82,078,654 | 82,078,654 |
Treasury stock, shares (in shares) | 38,404,527 | 34,044,102 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES: | |||
Revenues | $ 2,408,264 | $ 2,597,826 | $ 2,677,920 |
COSTS AND EXPENSES: | |||
Depreciation of Lease Merchandise | 1,576,303 | 1,757,730 | 1,820,010 |
Provision for Lease Merchandise Write-offs | 155,250 | 193,926 | 126,984 |
Operating Expenses | 451,084 | 450,374 | 397,399 |
Impairment of Goodwill | 0 | 10,151 | 0 |
Costs and Expenses | 2,182,637 | 2,412,181 | 2,344,393 |
OPERATING PROFIT | 225,627 | 185,645 | 333,527 |
Interest Expense, Net | (29,406) | (37,401) | (5,323) |
Earnings Before Income Tax Expense: | 196,221 | 148,244 | 328,204 |
INCOME TAX EXPENSE | 57,383 | 49,535 | 84,647 |
NET EARNINGS | $ 138,838 | $ 98,709 | $ 243,557 |
EARNINGS PER SHARE | |||
Basic (in dollars per share) | $ 3.02 | $ 1.90 | $ 3.69 |
Assuming Dilution (in dollars per share) | $ 2.98 | $ 1.90 | $ 3.67 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic ( in shares) | 46,034 | 51,921 | 66,026 |
Assuming Dilution (in shares) | 46,550 | 52,075 | 66,416 |
Lease Revenues and Fees | |||
REVENUES: | |||
Revenues | $ 2,333,588 | $ 2,523,785 | $ 2,619,005 |
Interest and Fees on Loans Receivable | |||
REVENUES: | |||
Revenues | $ 74,676 | $ 74,041 | $ 58,915 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Treasury Stock | Common Stock | Additional Paid-in Capital | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2020 | (23,029,000) | ||||
Beginning Balance at Dec. 31, 2020 | $ 986,136 | $ (613,881) | $ 45,376 | $ 318,263 | $ 1,236,378 |
Beginning Balance (in shares) at Dec. 31, 2020 | 90,752,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-Based Compensation | 21,349 | 21,349 | |||
Reissued Shares (in shares) | 329,000 | ||||
Reissued Shares | (530) | $ 6,838 | (7,368) | ||
Repurchased Shares (in shares) | (2,938,000) | ||||
Repurchased Shares | (142,358) | $ (142,358) | |||
Tender Offer Shares Repurchased and Retired (in shares) | (8,673,000) | ||||
Tender Offer Shares Repurchased and Retired | (428,746) | $ (4,337) | (424,409) | ||
Net Earnings | 243,557 | 243,557 | |||
Ending Balance (in shares) at Dec. 31, 2021 | (25,638,000) | ||||
Ending Balance at Dec. 31, 2021 | 679,408 | $ (749,401) | $ 41,039 | 332,244 | 1,055,526 |
Ending Balance (in shares) at Dec. 31, 2021 | 82,079,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-Based Compensation | 17,694 | 17,694 | |||
Reissued Shares (in shares) | 314,000 | ||||
Reissued Shares | (1,752) | $ 9,372 | (11,124) | ||
Repurchased Shares (in shares) | (8,720,000) | ||||
Repurchased Shares | (223,598) | $ (223,598) | |||
Net Earnings | $ 98,709 | 98,709 | |||
Ending Balance (in shares) at Dec. 31, 2022 | (34,044,102) | (34,044,000) | |||
Ending Balance at Dec. 31, 2022 | $ 570,461 | $ (963,627) | $ 41,039 | 338,814 | 1,154,235 |
Ending Balance (in shares) at Dec. 31, 2022 | 82,079,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-Based Compensation | 25,152 | 25,152 | |||
Reissued Shares (in shares) | 330,000 | ||||
Reissued Shares | (2,265) | $ 9,280 | (11,545) | ||
Repurchased Shares (in shares) | (4,691,000) | ||||
Repurchased Shares | (140,855) | $ (140,855) | |||
Net Earnings | $ 138,838 | 138,838 | |||
Ending Balance (in shares) at Dec. 31, 2023 | (38,404,527) | (38,405,000) | |||
Ending Balance at Dec. 31, 2023 | $ 591,331 | $ (1,095,202) | $ 41,039 | $ 352,421 | $ 1,293,073 |
Ending Balance (in shares) at Dec. 31, 2023 | 82,079,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES: | |||
Net Earnings | $ 138,838 | $ 98,709 | $ 243,557 |
Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities: | |||
Depreciation of Lease Merchandise | 1,576,303 | 1,757,730 | 1,820,010 |
Other Depreciation and Amortization | 32,032 | 33,851 | 33,258 |
Provisions for Accounts Receivable and Loan Losses | 345,383 | 417,496 | 242,412 |
Stock-Based Compensation | 24,920 | 17,521 | 21,349 |
Deferred Income Taxes | (32,449) | (9,199) | 15,729 |
Impairment of Goodwill | 0 | 10,151 | 0 |
Non-Cash Lease Expense | (2,669) | (1,674) | 974 |
Other Changes, Net | (5,992) | (7,164) | (7,561) |
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions: | |||
Additions to Lease Merchandise | (1,721,117) | (1,889,207) | (2,054,467) |
Book Value of Lease Merchandise Sold or Disposed | 159,430 | 197,489 | 130,665 |
Accounts Receivable | (307,984) | (374,515) | (229,703) |
Prepaid Expenses and Other Assets | (2,110) | 68 | (7,879) |
Income Tax Receivable and Payable | (14,188) | (6,007) | (29,753) |
Operating Lease Right-of-Use Assets and Liabilities | 0 | 2,999 | (1,955) |
Accounts Payable and Accrued Expenses | 15,200 | 2,227 | 70,820 |
Customer Deposits and Advance Payments | (1,361) | (7,996) | (1,495) |
Cash Provided by Operating Activities | 204,236 | 242,479 | 245,961 |
INVESTING ACTIVITIES: | |||
Investments in Loans Receivable | (214,686) | (203,600) | (182,204) |
Proceeds from Loans Receivable | 185,056 | 159,707 | 132,281 |
Outflows on Purchases of Property and Equipment | (9,616) | (9,674) | (9,555) |
Proceeds from Property and Equipment | 48 | 27 | 78 |
Proceeds (Outflows) from Acquisitions of Businesses and Customer Agreements | 365 | 6 | (22,766) |
Cash Used in Investing Activities | (38,833) | (53,534) | (82,166) |
FINANCING ACTIVITIES: | |||
Repayments on Revolving Facility, Net | 0 | 0 | (50,000) |
Proceeds from Debt | 0 | 0 | 591,750 |
Acquisition of Treasury Stock | (139,573) | (223,598) | (142,358) |
Tender Offer Stock Repurchased and Retired | 0 | (274) | (428,551) |
Issuance of Stock Under Stock Option and Employee Purchase Plans | 1,357 | 1,150 | 4,592 |
Shares Withheld for Tax Payments | (3,622) | (2,902) | (5,123) |
Debt Issuance Costs | (29) | (1,600) | (591) |
Cash Used In Financing Activities | (141,867) | (227,224) | (30,281) |
Increase (Decrease) in Cash and Cash Equivalents | 23,536 | (38,279) | 133,514 |
Cash and Cash Equivalents at Beginning of Year | 131,880 | 170,159 | 36,645 |
Cash and Cash Equivalents at End of Year | 155,416 | 131,880 | 170,159 |
Net Cash Paid During the Year: | |||
Interest | 36,991 | 35,712 | 1,452 |
Income Taxes | $ 100,433 | $ 62,172 | $ 53,602 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business PROG Holdings, Inc. ("we," "our," "us," the "Company," or "PROG Holdings") is a financial technology holding company that provides transparent and competitive payment options to consumers. PROG Holdings has two reportable segments: (i) Progressive Leasing, an in-store, app-based, and e-commerce point-of-sale lease-to-own solutions provider; and (ii) Vive Financial ("Vive"), an omnichannel provider of second-look revolving credit products. Our Progressive Leasing segment provides consumers with lease-purchase solutions through its point-of-sale partner locations and e-commerce website partners in the United States and Puerto Rico (collectively, "POS partners"). 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 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 POS partner locations and e-commerce websites includes furniture, mattresses, home exercise equipment, and home improvement retailers, as well as medical and dental service providers. On June 25, 2021, the Company completed the acquisition of Four Technologies, Inc. ("Four"), an innovative Buy Now, Pay Later ("BNPL") company that allows shoppers to pay for merchandise through four interest-free installments. Shoppers use Four to purchase furniture, clothing, electronics, health and beauty products, footwear, jewelry, and other consumer goods from retailers across the United States. Four is not a reportable segment for the years ended December 31, 2023, 2022 and 2021 as its financial results are not material to the Company's consolidated financial results. See Note 2 for further discussion on the acquisition. 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. Management does not believe these estimates or assumptions will change significantly in the future absent unidentified and unforeseen events, such as the possible direct or indirect impacts associated with elevated inflation, increasing unemployment rates, the resumption of student loan repayments in October 2023, and/or the possibility of a recession in the United States. 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, mattresses, automobile electronics and accessories, and a variety of other products, to its customers for lease under 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. All of Progressive Leasing's customer 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 lease payments made by the customer upon lease execution are recognized as deferred revenue and are amortized as lease revenue over the estimated lease term on a straight-line basis. Initial lease payments and other payments collected in advance of being due or earned are recognized as deferred revenue within customer deposits and advance payments in the accompanying consolidated balance sheets. All other customer lease billings 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, semi-monthly 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. Lease revenues are recorded net of a provision for uncollectible renewal payments. 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 is primarily generated from our Vive segment. Vive extends or declines credit to an applicant through its bank partners based upon the applicant's credit rating and other factors. Qualifying applicants are approved for a specified maximum revolving credit card line 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 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 in 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 fees on loans receivable in the consolidated statements of earnings on a straight-line basis over the initial 24-month period. If the loan receivable is paid off or charged off during the 24-month period, the remaining net merchant fee discount is recognized as interest and fees on loans receivable at that time. 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. 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, Vive also may assess fees 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 fees on loans receivable in the consolidated statements of earnings. Lease Merchandise Progressive Leasing's merchandise consists primarily of furniture, appliances, electronics, jewelry, mobile phones and accessories, mattresses, automobile electronics and accessories, 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 using the allowance method. The allowance method 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, such as current and forecasted customer payment trends, are considered in estimating the allowance. Given the significant uncertainty regarding the impacts of inflation, elevated interest rates, the resumption of student loan repayments, and/or unemployment rates on our business, a high level of estimation was involved in determining the allowance as of December 31, 2023. Actual lease merchandise write-offs may differ materially from the allowance as of December 31, 2023. For customer lease agreements that are past due, the Company's policy is to write off lease merchandise after 120 days. 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) 2023 2022 2021 Beginning Balance $ 47,118 $ 54,367 $ 45,992 Net Book Value of Merchandise Written off (165,153) (210,160) (128,031) Recoveries 6,965 8,985 9,422 Provision for Write-offs 155,250 193,926 126,984 Ending Balance $ 44,180 $ 47,118 $ 54,367 Vendor Incentives and Rebates Provided to POS Partners Progressive Leasing 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 the POS partners for marketing or other development initiatives to promote additional lease originations through these POS partners. Payments made to POS partners as consideration for them providing exclusivity to Progressive Leasing 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 origination 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. Progressive Leasing expensed $28.5 million, $27.7 million, and $18.0 million for such additional consideration to POS partners, for the years ended December 31, 2023, 2022 and 2021, respectively. Expenses related to additional consideration provided to POS partners are classified within operating expenses in the consolidated statements of earnings. Advertising The Company expenses advertising costs as incurred. Total advertising costs amounted to $17.2 million, $15.8 million and $17.5 million for the years ended December 31, 2023, 2022 and 2021, 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 13 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 13 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) 2023 2022 2021 Weighted Average Shares Outstanding 46,034 51,921 66,026 Dilutive Effect of Share-Based Awards 516 154 390 Weighted Average Shares Outstanding Assuming Dilution 46,550 52,075 66,416 Approximately 833,000, 1,410,000 and 423,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the years ended December 31, 2023, 2022 and 2021, 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 $67.9 million and $64.5 million, net of allowances, as of December 31, 2023 and 2022, 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 uncollectible renewal payments based on historical collection experience. Other qualitative factors, such as current and forecasted business trends, are considered in estimating the allowance. Given the significant uncertainty regarding the impacts of inflation, elevated interest rates, the resumption of student loan repayments, and/or unemployment rates on our business, a high level of estimation was involved in determining the allowance as of December 31, 2023. Therefore, actual future accounts receivable write-offs may differ materially from the allowance. The provision for uncollectible renewal payments is recorded as a reduction of lease revenues and fees within the consolidated statements of earnings. For customer lease agreements that are past due, the Company's policy is to write off lease receivables after 120 days. Vive's allowance for uncollectible merchant accounts receivable, which primarily relates to cardholder returns and refunds, and is an immaterial amount related to Vive's bad debt expense, is recorded within operating expenses in the consolidated statements of earnings. See below for a 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) 2023 2022 2021 Beginning Balance $ 69,264 $ 71,233 $ 56,364 Net Book Value of Accounts Written Off (348,729) (415,344) (247,789) Recoveries 39,019 37,111 37,914 Accounts Receivable Provision 304,626 376,264 224,744 Ending Balance $ 64,180 $ 69,264 $ 71,233 Loans Receivable, Net Gross loans receivable primarily 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. Loans receivable, net, also includes $13.9 million and $5.3 million of outstanding receivables from customers of Four as of December 31, 2023 and 2022, respectively. 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. Expected lifetime losses on loans receivable are recognized upon loan acquisition, which requires the Company to make its best estimate of probable lifetime losses at the time of acquisition. Vive's 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 Fair Isaac and Company ("FICO") score and by delinquency status and evaluates loans receivable collectively for impairment when similar risk characteristics exist. The Company calculates Vive's allowance for loan losses based on internal historical loss information and incorporates observable and forecasted macroeconomic data over a six-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 inflation and unemployment rates. Subsequent to the six-month reasonable and supportable forecast period described above, the Company reverts to using historical loss information on a straight-line basis over a three-month period. For the remaining life of the portfolio, the Company utilizes historical loss information. 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, 2023, management considered qualitative factors such as the tightening of Vive's loan decisioning in mid-2022 and macroeconomic conditions associated with the impacts from increased inflation, unemployment rates, and/or the possibility of a recession in the United States. 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, due to the volatility of inflation, forecasted higher unemployment rates, housing costs, the resumption of student loan repayments in October 2023, and/or changes to other macroeconomic factors used to calculate the allowance, the Company's results of operations and liquidity may be materially affected. Vive's delinquent loans receivable includes those that are 30 days or more past due based on their contractual billing dates. Vive's loans receivable are placed 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 Vive's 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, 2023 and 2022 by FICO score as determined at the time of loan origination: December 31, FICO Score Category 2023 2022 600 or Less 6.5 % 6.9 % Between 600 and 700 73.5 % 75.4 % 700 or Greater 11.2 % 13.4 % No Score Identified 8.8 % 4.3 % Property and Equipment The Company records property 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 one 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 and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $9.3 million, $11.0 million and $11.0 million during the years ended December 31, 2023, 2022 and 2021, respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property and equipment, was $5.4 million, $5.5 million and $4.9 million during the years ended December 31, 2023, 2022 and 2021, 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) 2023 2022 Prepaid Expenses $ 17,768 $ 18,845 Prepaid Lease Merchandise 9,944 10,134 Prepaid Software Expenses 8,624 7,022 Unamortized Initial Direct Costs on Lease Agreement Originations 7,192 6,016 Other Assets 7,183 6,464 Prepaid Expenses and Other Assets $ 50,711 $ 48,481 The Company incurs costs to implement cloud computing arrangements ("CCA") that are hosted by third-party vendors. Implementation costs associated with CCA are capitalized when incurred during the application development phase and are recorded within prepaid software expenses above. Amortization is calculated on a straight-line basis over the contractual term of the arrangement and is included within computer software expense as a component of operating expenses in the consolidated statements of earnings. 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 and Four are the only reporting units with goodwill. Impairment occurs when the reporting unit's carrying value exceeds its fair value. 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 an 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 failing to successfully execute on one or more elements of Progressive Leasing and/or Four's strategic plans. During the third quarter of 2022, the Company engaged the assistance of a third-party valuation firm to perform the interim goodwill impairment test for the Four reporting unit. This included an assessment of the Four reporting unit's fair value relative to the carrying value that was derived using a market approach. The market approach, which includes the guideline public company method, utilized pricing multiples derived from an analysis of other publicly traded companies that operate in the BNPL industry. We believe the comparable companies we evaluate as marketplace participants serve as an appropriate reference when calculating fair value because those companies have similar risks, participate in similar markets, provide similar products and services for their customers and compete with Four directly. The Company determined the Four goodwill was partially impaired and recorded a $10.2 million impairment of goodwill during the third quarter of 2022. The remaining carrying value of the Four reporting unit was $7.3 million, which approximated its fair value as of October 1, 2022. Additional goodwill impairment charges may occur in future periods if the Company fails to execute on one or more elements of Four's strategic plan, Four's actual or projected results are unfavorable compared to the current forecasted operating results, and/or there are further declines in the BNPL peer market multiples. The Company completed qualitative assessments for its annual goodwill impairment test for both Progressive Leasing and Four as of October 1, 2023. The qualitative assessments did not present any indicators of impairment and the Company concluded that no impairment had occurred. The Company determined that there were no events that occurred or circumstances that changed during the fourth quarter of 2023 that would more likely than not reduce the fair value of Progressive Leasing or Four below their carrying amounts. Other Intangibles Other intangibles represent identifiable intangible assets acquired as a result of the Progressive Leasing, Vive and Four 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 and Four acquisitions on a straight-line basis over periods ranging from two Indefinite-lived intangible assets represent the value of the trade name 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, 2023 and concluded that no impairment had occurred. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: December 31, (In Thousands) 2023 2022 Accounts Payable $ 20,237 $ 14,386 Accrued Salaries and Benefits 27,256 21,366 Accrued Sales and Personal Property Taxes 11,684 13,517 Income Taxes Payable 1,153 1,287 Uncertain Tax Positions 1 54,995 51,110 Accrued Vendor Rebates 11,446 9,320 Other Accrued Expenses and Liabilities 24,488 24,039 Accounts Payable and Accrued Expenses $ 151,259 $ 135,025 1 The uncertain tax positions as of December 31, 2023 and 2022 are primarily related to the Company's tax treatment of the $175.0 million settlement payment made in 2020 to the FTC as discussed in Note 9. Cybersecurity Incident As previously disclosed by the Company on September 21, 2023, Progressive Leasing experienced a cybersecurity incident affecting certain data and IT systems of Progressive Leasing. Promptly after detecting the incident, the Company engaged third-party cybersecurity experts and took immediate steps to respond to, remediate and investigate the incident. Law enforcement was also notified. Based on the Company's investigation, the Company determined that the data involved in the incident contained a substantial amount of personally identifiable information, including social security numbers, of Progressive Leasing's customers and other individuals. With the assistance of our cybersecurity experts, the Company located the Progressive Leasing customers and other individuals whose information was impacted and notified them, consistent with state and federal requirements. The Company also took a number of additional measures to demonstrate its continued support and commitment to data privacy and protection. The investigation is nearly complete and the Company believes it has a full view of the compromised data. During the year ended December 31, 2023, the Company incurred $2.8 million for actual and anticipated costs related to the cybersecurity incident. These costs related primarily to third-party legal and consulting services and credit monitoring services for Progressive Leasing's customers and employees that were impacted and are included within professional services expense as a component of operating expenses in the consolidated statements of earnings. At December 31, 2023, the Company had $0.9 million accrued for costs related to the cybersecurity incident, which are included in accounts payable and accrued expenses in the consolidated balance sheets. 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 m |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | ACQUISITION On June 25, 2021, the Company acquired 100% of the capital stock of Four for a purchase price of $22.7 million in cash, inclusive of cash acquired. Four is an innovative BNPL company that allows shoppers to pay for merchandise through four interest-free installments. Four's proprietary platform capabilities and its base of customers and retailers expand PROG Holdings' ecosystem of financial technology offerings by introducing a payment solution that further diversifies the Company's consumer financial technology offerings. Shoppers use Four to purchase furniture, clothing, electronics, health and beauty, footwear, jewelry, and other consumer goods from retailers across the United States. The amounts of revenue and loss before income taxes of Four are included in the Company's consolidated statements of earnings from the date of acquisition. Four generated revenues of $5.7 million and losses before income taxes of $14.4 million during the year ended December 31, 2023, and revenues of $3.1 million and losses before income taxes of $24.4 million during the year ended December 31, 2022. Four's results of operations were not material to the Company's 2021 consolidated financial results. The following table provides the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date: (In Thousands) Final Amounts Recognized as of Acquisition Aggregate Purchase Price $ 22,694 Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 334 Loans Receivable 609 Property, Plant and Equipment 198 Other Intangibles 5,173 Prepaid Expenses and Other Assets 39 Total Identifiable Assets Acquired 6,353 Accounts Payable and Accrued Expenses (232) Deferred Income Tax Liability (838) Total Liabilities Assumed (1,070) Goodwill 17,411 Net Assets Acquired $ 22,694 The intangible assets attributable to the acquisition are comprised of the following: Fair Value Weighted Average Life Acquired Technology $ 4,000 5.0 Trade Name 587 5.0 Merchant Relationships 586 2.0 Total Acquired Intangibles Assets 1 $ 5,173 1 Acquired definite-lived intangible assets have a total weighted average life of 4.7 years. The fair value measurements for acquired intangible assets were based on significant unobservable inputs (level 3) developed using company-specific information. Goodwill consists of the excess of the estimated purchase price over the fair value of the net assets acquired and represents the Company's ability to provide a BNPL product to PROG Holdings' existing base of retailers, merchants and customers. The value of goodwill is not tax deductible. The Company incurred $0.6 million of acquisition-related costs in connection with the acquisition during the year ended December 31, 2021. These costs were included in operating expenses in the consolidated statements of earnings. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 Trade Name $ 53,000 $ 53,000 Goodwill 296,061 296,061 Indefinite-lived Intangible Assets $ 349,061 $ 349,061 The following table provides information related to the carrying amount of the Company's goodwill by reporting unit: (In Thousands) Progressive Leasing Four Total Balance at January 1, 2022 $ 288,801 $ 17,411 $ 306,212 Impairment of Goodwill 1 — (10,151) (10,151) Balance at December 31, 2022 288,801 7,260 296,061 Changes to Goodwill — — — Balance at December 31, 2023 $ 288,801 $ 7,260 $ 296,061 1 As of September 30, 2022, the Company determined the Four goodwill was partially impaired and recorded an impairment of goodwill of $10.2 million during the third quarter of 2022. For further details regarding the impairment, see Note 1. Definite-Lived Intangible Assets The following table summarizes information related to definite-lived intangible assets at December 31: 2023 2022 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal-Use Software $ 14,000 $ (14,000) $ — $ 14,000 $ (14,000) $ — Technology 72,550 (68,662) 3,888 72,550 (61,262) 11,288 Merchant Relationships 181,586 (147,104) 34,482 181,586 (131,874) 49,712 Other Intangibles 1 587 (293) 294 587 (176) 411 Total $ 268,723 $ (230,059) $ 38,664 $ 268,723 $ (207,312) $ 61,411 1 Other intangibles consists of the Four trade name. Total amortization expense of definite-lived intangible assets included in operating expenses in the accompanying consolidated statements of earnings was $22.7 million, $22.9 million and $22.3 million during the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2024 $ 17,889 2025 16,001 2026 4,774 2027 — 2028 — |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ 2,487 $ — $ — $ 2,185 $ — The Company maintains the PROG Holdings, Inc. Deferred Compensation Plan as described in Note 15 to these consolidated financial statements, which is an unfunded, nonqualified deferred compensation plan for a select group of management, highly compensated employees and non-employee directors. 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 for Which Fair Value is Disclosed Vive's loans receivable are measured at amortized cost, net of an allowance for loan losses and unamortized fees in 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). Four's loans receivable, net of an allowance for loan losses and unamortized fees, are included within loans receivable, net in the consolidated balance sheets and approximated fair value based on a discounted cash flow methodology. On November 26, 2021, the Company entered into an indenture in connection with its offering of $600 million aggregate principal amount of its Senior Notes due 2029. The Senior Notes are carried at amortized cost in the consolidated balance sheets and are measured at fair value for disclosure purposes. The fair value of the Senior Notes was estimated based on quoted market prices in less active markets and has been classified as Level 2 in the fair value hierarchy. The following table summarizes the fair value of the Company's debt and the loans receivable held by Vive and Four: December 31, 2023 December 31, 2022 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Senior Notes $ — $ 559,500 $ — $ — $ 481,320 $ — Loans Receivable, Net $ — $ — $ 148,466 $ — $ — $ 165,690 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The following is a summary of the Company's property and equipment: December 31, (In Thousands) 2023 2022 Leasehold Improvements $ 10,910 $ 10,910 Fixtures, Equipment and Vehicles 33,771 32,722 Internal-Use Software 39,792 31,163 Internal-Use Software - In Development 1,057 1,868 Property and Equipment, Gross 85,530 76,663 Less: Accumulated Depreciation and Amortization 1 (61,426) (52,811) Property and Equipment, Net $ 24,104 $ 23,852 1 Accumulated amortization of internal-use software development costs amounted to $23.1 million and $17.8 million as of December 31, 2023 and 2022, respectively. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | LOANS RECEIVABLE The following is a summary of the Company's loans receivable, net: December 31, (In Thousands) 2023 2022 Loans Receivable, Gross $ 176,845 $ 184,601 Unamortized Fees (9,402) (11,207) Loans Receivable, Amortized Cost 167,443 173,394 Allowance for Loan Losses (40,620) (42,428) Loans Receivable, Net of Allowances and Unamortized Fees 1 $ 126,823 $ 130,966 1 Loans Receivable, Net of Allowances and Unamortized Fees attributable to Four was $13.9 million and $5.3 million as of December 31, 2023 and 2022, respectively. The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: As of December 31, 2023 (In Thousands) 2023 2022 and Prior Revolving Loans Total FICO Score Category: 600 or Less $ — $ — $ 10,909 $ 10,909 Between 600 and 700 — — 120,860 120,860 700 or Greater — — 17,919 17,919 No Score Identified 17,755 — — 17,755 Total Amortized Cost $ 17,755 $ — $ 149,688 $ 167,443 Gross Charge-offs by Origination Year for the Year Ended December 31, 2023 $ 2,188 $ 2,449 $ 43,569 $ 48,206 Included in the table below is an aging of the loans receivable, gross balance: (Dollar Amounts in Thousands) December 31, Aging Category 2023 2022 30-59 Days Past Due 7.3 % 6.6 % 60-89 Days Past Due 3.8 % 3.5 % 90 or More Days Past Due 5.4 % 5.1 % Past Due Loans Receivable 16.5 % 15.2 % Current Loans Receivable 83.5 % 84.8 % Balance of Credit Card Loans on Nonaccrual Status $ 4,482 $ 4,436 Balance of Loans Receivable 90 or More Days Past Due and Still Accruing Interest and Fees $ — $ — The table below presents the components of the allowance for loan losses: Year Ended December 31, (In Thousands) 2023 2022 Beginning Balance $ 42,428 $ 40,789 Provision for Loan Losses 40,757 41,232 Charge-offs (48,206) (43,979) Recoveries 5,641 4,386 Ending Balance $ 40,620 $ 42,428 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
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 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 and information technology equipment under operating leases. During 2022, the Company also had operating leases for some of its vehicles. 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 did not have any subleases in which it remained as the primary obligor during 2023 or 2022 and currently does not anticipate receiving any future sublease receipts. The Company's total operating lease cost is comprised of the following: Year Ended December 31, (In Thousands) 2023 2022 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 $ 3,178 $ 4,239 Total Operating Lease cost: $ 3,178 $ 4,239 1 Short-term and variable lease expenses were not significant during the years ended December 31, 2023 and 2022. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. Additional information regarding the Company's leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2023 2022 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 5,847 $ 5,913 Total Cash paid for amounts included in measurement of Lease Liabilities 5,847 5,913 Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities — 711 Supplemental balance sheet information related to leases is as follows: December 31, (In Thousands) Balance Sheet Classification 2023 2022 Assets Total Lease Assets 1 Operating Lease Right-of-Use Assets $ 9,271 $ 11,875 Liabilities Total Lease Liabilities Operating Lease Liabilities $ 15,849 $ 21,122 1 Operating lease right-of-use assets as of December 31, 2022 reflects impairment charges of $2.9 million that were recorded as part of the restructuring activities initiated during 2022. For further details related to the restructuring activities, see Note 11 . Many of the Company's real estate leases contain renewal options for additional periods ranging from three 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. In January 2024, the Company announced that it had taken several restructuring actions, including the planned reduction of its office space in Utah and Arizona. During the first quarter of 2024, the Company will reduce its office space in Utah by 50% and completely vacate the office space in Arizona. 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, 2023 2022 Weighted Average Discount Rate Weighted Average Remaining Lease Term (in years) Weighted Average Discount Rate Weighted Average Remaining Lease Term (in years) Operating Leases 3.5 % 3.1 3.4 % 3.9 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, 2023. 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 2024 $ 5,675 2025 4,513 2026 3,911 2027 2,672 2028 — Thereafter — Total Undiscounted Cash Flows 16,771 Less: Interest (922) Present Value of Lease Liabilities $ 15,849 |
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 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 and information technology equipment under operating leases. During 2022, the Company also had operating leases for some of its vehicles. 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 did not have any subleases in which it remained as the primary obligor during 2023 or 2022 and currently does not anticipate receiving any future sublease receipts. The Company's total operating lease cost is comprised of the following: Year Ended December 31, (In Thousands) 2023 2022 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 $ 3,178 $ 4,239 Total Operating Lease cost: $ 3,178 $ 4,239 1 Short-term and variable lease expenses were not significant during the years ended December 31, 2023 and 2022. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. Additional information regarding the Company's leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2023 2022 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 5,847 $ 5,913 Total Cash paid for amounts included in measurement of Lease Liabilities 5,847 5,913 Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities — 711 Supplemental balance sheet information related to leases is as follows: December 31, (In Thousands) Balance Sheet Classification 2023 2022 Assets Total Lease Assets 1 Operating Lease Right-of-Use Assets $ 9,271 $ 11,875 Liabilities Total Lease Liabilities Operating Lease Liabilities $ 15,849 $ 21,122 1 Operating lease right-of-use assets as of December 31, 2022 reflects impairment charges of $2.9 million that were recorded as part of the restructuring activities initiated during 2022. For further details related to the restructuring activities, see Note 11 . Many of the Company's real estate leases contain renewal options for additional periods ranging from three 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. In January 2024, the Company announced that it had taken several restructuring actions, including the planned reduction of its office space in Utah and Arizona. During the first quarter of 2024, the Company will reduce its office space in Utah by 50% and completely vacate the office space in Arizona. 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, 2023 2022 Weighted Average Discount Rate Weighted Average Remaining Lease Term (in years) Weighted Average Discount Rate Weighted Average Remaining Lease Term (in years) Operating Leases 3.5 % 3.1 3.4 % 3.9 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, 2023. 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 2024 $ 5,675 2025 4,513 2026 3,911 2027 2,672 2028 — Thereafter — Total Undiscounted Cash Flows 16,771 Less: Interest (922) Present Value of Lease Liabilities $ 15,849 |
INDEBTEDNESS
INDEBTEDNESS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS Below is a summary of the Company's debt, net of applicable unamortized debt issuance costs: December 31, (In Thousands) 2023 2022 Senior Unsecured Notes, 6.000%, due November 2029 $ 600,000 $ 600,000 Revolving Facility Outstanding 1 — — Less: Unamortized Debt Issuance Costs (7,735) (9,034) Total Debt, Net of Unamortized Debt Issuance Costs $ 592,265 $ 590,966 1 Unamortized debt issuance costs related to the Revolving Facility were $0.9 million and $1.3 million as of December 31, 2023 and 2022, respectively. These amounts were included within prepaid expenses in the consolidated balance sheets. Senior Unsecured Notes On November 26, 2021, the Company entered into an indenture with the guarantors party thereto and U.S. Bank National Association, as trustee, in connection with the Company's offering of $600 million aggregate principal amount of its 6.00% senior unsecured notes due 2029. The Senior Notes were issued at 100.0% of their par value. The Senior Notes are general unsecured obligations of the Company and are guaranteed by certain of the Company's existing and future domestic subsidiaries. The Senior Notes bear an annual interest rate of 6.00% and interest payments are payable semi-annually on May 15 and November 15 of each year, which commenced on May 15, 2022. The Senior Notes will mature on November 15, 2029. The net proceeds from the Senior Notes were used to fund the purchase price, and related fees and expenses, of the Company's tender offer to purchase $425 million of the Company's common stock in 2021 as discussed in Note 12. The remaining proceeds were used for additional share repurchases during the year ended December 31, 2022. The Senior Notes will also be redeemable, in whole or in part, at any time or from time to time on or after November 15, 2024, at the redemption prices specified in the indenture, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. At any time and from time to time prior to November 15, 2024, the Senior Notes may be redeemed, in whole or in part, at a redemption price of 100% of the principal amount thereof, plus a "make-whole premium" specified in the indenture and accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, the Company may redeem up to 40% of the Senior Notes at any time or from time to time before November 15, 2024, with the proceeds from certain equity offerings at a redemption price equal to 106% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Upon the occurrence of a Change of Control (as defined in the indenture), each holder has the right to require the Company to offer to repurchase all or any part of such holder's Senior Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The Company is not required to make mandatory sinking fund payments with respect to the Senior Notes. Revolving Facility On November 24, 2020, the Company entered into a credit agreement with a consortium of lenders providing for a $350 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 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. The Company had no outstanding borrowings under the Revolving Facility as of December 31, 2023. 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. The Company 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. During 2023, the Company amended the Revolving Facility agreement to change the reference rate from LIBOR to SOFR. There were no other changes to key terms of the Revolving Facility agreement and the legal expenses incurred in connection with the amendment were immaterial. Borrowings under the Revolving Facility bear interest at a rate per annum equal to, at our option, (i) SOFR plus a margin within the range of 1.50% to 2.50% 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 SOFR loans. 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 defined by the Revolving Facility. As of December 31, 2023, the amount available under the Revolving Facility was $350 million. Financial Covenants The indenture discussed above contains various other covenants and obligations to which the Company and its subsidiaries are subject to while the Senior Notes are outstanding. The covenants in the indenture may limit the extent to which, or the ability of the Company and its subsidiaries to, among other things: (i) incur additional debt and guarantee debt; (ii) pay dividends or make other distributions or repurchase or redeem capital stock; (iii) prepay, redeem or repurchase certain debt; (iv) issue certain preferred stock or similar equity securities; (v) make loans and investments; (vi) sell assets; (vii) incur liens; (viii) enter into transactions with affiliates; (ix) enter into agreements restricting the ability of the Company's subsidiaries to pay dividends; and (x) consolidate, merge or sell all or substantially all of the Company's assets. The indenture also contains customary events of default for transactions of this type and amount. The Revolving Facility discussed above contains financial covenants, which include requirements that the Company maintain ratios of (i) total net debt to EBITDA as defined by the Revolving Facility 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 may become due immediately. Additionally, under the Revolving Facility agreement, if the total net debt to EBITDA as defined by the Revolving Facility agreement exceeds 1.25, the revolver becomes fully secured for the remaining duration of the Revolving Facility term. During 2022, the Company exceeded the 1.25 total net debt to EBITDA ratio and the Revolving Facility became fully secured. 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, 2023, the Company was in compliance with all covenants related to its debt. Below is a summary of future principal maturities due as of December 31, 2023: (In Thousands) 2024 $ — 2025 — 2026 — 2027 — 2028 — Thereafter 600,000 Total $ 600,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following is a summary of the Company's income tax expense: Year Ended December 31, (In Thousands) 2023 2022 2021 Current Income Tax Expense: Federal $ 77,412 $ 46,579 $ 50,240 State 12,420 12,155 18,678 89,832 58,734 68,918 Deferred Income Tax (Benefit) Expense: Federal (32,612) (10,696) 16,852 State 163 1,497 (1,123) (32,449) (9,199) 15,729 Income Tax Expense $ 57,383 $ 49,535 $ 84,647 Significant components of the Company's deferred income tax liabilities and assets are as follows: December 31, (In Thousands) 2023 2022 Deferred Income Tax Liabilities: Property and Equipment $ 103 $ 232 Goodwill and Other Intangibles 657 949 Investment in Partnership 131,002 161,499 Operating Lease Right-of-Use Assets 173 271 Total Deferred Income Tax Liabilities 131,935 162,951 Deferred Income Tax Assets: Accrued Liabilities 9,769 10,420 Advance Payments 38 33 Operating Lease Liabilities 191 382 Other, Net 25,795 23,598 Total Deferred Income Tax Assets 35,793 34,433 Less: Valuation Allowance (5,715) (5,788) Net Deferred Income Tax Liabilities $ 101,857 $ 134,306 The Company's effective tax rate differs from the statutory United States Federal income tax rate as follows: Year Ended December 31, 2023 2022 2021 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 4.9 5.0 3.8 Non-deductible Goodwill Impairment — 1.4 — Other Permanent Differences 0.3 0.6 — Deferred Tax Adjustments 1.1 0.7 — Valuation Allowance — 2.2 — Current Uncertain Tax Position Expense 1.9 2.2 0.7 Shortfall in Stock-based Compensation 0.4 1.0 — Other, Net (0.4) (0.7) 0.3 Effective Tax Rate 29.2 % 33.4 % 25.8 % At December 31, 2023, the Company had $1.9 million of tax-effected state net operating loss carryforwards and $3.5 million of state tax credit carryforwards, which will both begin to expire in 2024 and 2025, respectively. 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 2020. Uncertain Tax Positions The following table summarizes the activity related to the Company's uncertain tax positions: Year Ended December 31, (In Thousands) 2023 2022 2021 Balance at January 1, $ 46,407 $ 46,750 $ 2,748 Additions Based on Tax Positions Related to the Current Year 81 850 44,816 Additions for Tax Positions of Prior Years — — 21 Prior Year Reductions — — (1) Statute Expirations (288) (607) (692) Settlements — (586) (142) Balance at December 31, $ 46,200 $ 46,407 $ 46,750 As of December 31, 2023 and 2022, uncertain tax positions (inclusive of accrued interest) were $55.0 million and $51.1 million, respectively, and are included within accounts payable and accrued expenses in the consolidated balance sheets. The increase is primarily driven by the Company's tax treatment of its settlement with the Federal Trade Commission ("FTC"). 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 received by the Company in July 2018, under which Progressive Leasing agreed to pay $175.0 million. At the time of the agreement, the Company treated the tentative settlement as a non-deductible regulatory charge for tax purposes and recognized tax expense. The $175.0 million settlement was finalized and paid to the FTC in 2020. Prior to filing the Company's 2020 income tax return, it was determined there is a reasonable basis for deducting the settlement amount on the return. However, the tax position does not meet the more-likely-than-not recognition standard and no tax benefit has been recognized in the current period. As a result, the Company has reclassified $44.7 million from taxes payable, previously recognized in December 2019, to an uncertain tax position as of September 30, 2021. Additionally, the Company has recognized the accrued interest related to the uncertain tax position as a component of income tax expense in accordance with the Company's accounting policy. As of December 31, 2023 and 2022, the amount of accrued interest related to the FTC settlement was $8.6 million and $4.5 million, respectively. The Company believes, due to the statute of limitations expiration, it is reasonably possible the uncertain tax position related to the FTC settlement, including the accrued interest, could be released within the next 12 months. As of December 31, 2023 and 2022, the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $51.2 million and $48.1 million, respectively, including interest and penalties. During the years ended December 31, 2023, 2022 and 2021 the Company recognized a net expense of $4.1 million, $3.0 million, and $1.5 million respectively, related to penalties and interest. The Company had $8.8 million and $4.7 million of accrued interest and penalties at December 31, 2023 and 2022, respectively. The Company recognizes potential interest and penalties related to uncertain tax benefits as a component of income tax expense. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, the Company had accrued $1.2 million and $0.6 million, respectively for pending legal and regulatory matters for which it believes losses are probable and the amount of the loss can be reasonably estimated. The Company records its best estimate of the loss to legal and regulatory liabilities in accounts payable and accrued expenses in the consolidated balance sheets. The Company estimates the aggregate range of reasonably possible loss in excess of accrued liabilities for such probable loss contingencies is immaterial. Those matters for which a probable loss cannot be reasonably estimated are not included within the estimated ranges. At December 31, 2023, 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 January 2021, the Company, along with 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 may 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 has fully cooperated, and anticipates continuing to cooperate, with the DFPI in responding to its inquiry. Litigation Matters On August 25, 2022, the Pennsylvania Attorney General filed a complaint against Progressive Leasing in the Philadelphia County Court of Common Pleas alleging, among other things, that Progressive Leasing was operating in the Commonwealth of Pennsylvania in violation of the Pennsylvania Rental Purchase Agreement Act by failing to disclose certain terms and conditions of rent-to-own ("RTO") transactions on "hang tags" physically attached to RTO merchandise. Although Progressive Leasing believed the Pennsylvania Attorney General's claims were without merit, it entered into a settlement agreement with the Attorney General in January 2024, pursuant to which the Attorney General agreed to release its claims against Progressive Leasing. The court where that lawsuit was pending approved the settlement on January 26, 2024 resulting in a $1.0 million settlement. At December 31, 2023, the Company had accrued $1.0 million for the lawsuit within accounts payable and accrued expenses in the consolidated balance sheet. As previously disclosed by the Company on September 21, 2023, Progressive Leasing experienced a cybersecurity incident affecting certain data and IT systems of Progressive Leasing. Promptly after detecting the incident, the Company engaged third-party cybersecurity experts and took immediate steps to respond to, remediate and investigate the incident. Law enforcement was also notified. Based on the Company's investigation, the Company determined that the data involved in the incident contained a substantial amount of personally identifiable information, including social security numbers, of Progressive Leasing's customers and other individuals. With the assistance of our cybersecurity experts, the Company located the Progressive Leasing customers and other individuals whose information was impacted and notified them, consistent with state and federal requirements. The Company also took a number of additional measures to demonstrate its continued support and commitment to data privacy and protection. The investigation is nearly complete and the Company believes it has a full view of the compromised data. As a result of the cybersecurity incident, Progressive Leasing has become subject to multiple lawsuits which allege, among other things, the incurrence of various types of damages arising out of the incident. As of the date of this Form 10-K, all but one of these lawsuits have been consolidated into a single action in the United States District Court for the District of Utah (the "District Court"). We believe the remaining unconsolidated lawsuit will be consolidated soon, and a consolidated complaint is expected to be filed against Progressive Leasing in the District Court in March or April of 2024. Progressive Leasing believes the allegations made in this lawsuit are without merit and intends to vigorously defend itself against the lawsuit; however, at this time, the Company is unable to determine or predict the outcome of this lawsuit or reasonably provide an estimate or range of the possible losses, if any. The Company also maintains cybersecurity insurance coverage, subject to a $1.0 million retention, to limit the exposure to losses such as those related to the cybersecurity incident and lawsuits stemming therefrom; however, there can be no assurance that such insurance coverage will be adequate to cover all of the losses, costs and expenses related thereto or that the insurers will agree to cover such losses, costs and expenses. Other Contingencies At December 31, 2023, 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 that were originated through and to be acquired from Vive's third-party federally insured banks of $36.2 million. Payments under these commitments are scheduled to be $20.0 million in 2024, $10.3 million in 2025, $3.1 million in 2026, $1.8 million in 2027, and $1.0 million in 2028, 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 unconditionally cancellable unfunded lending commitments totaling $523.9 million and $513.7 million as of December 31, 2023 and 2022, 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. |
RESTRUCTURING EXPENSES
RESTRUCTURING EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING EXPENSES | RESTRUCTURING EXPENSES During 2022, the Company initiated restructuring activities intended to reduce expenses, consolidate certain segment corporate headquarters, and align the cost structure of the business with the Company's near-term revenue outlook. The Company continued such activities during 2023 and recorded restructuring expenses of $12.5 million for the year ended December 31, 2023, resulting in aggregate expenses of $21.5 million since the inception of the restructuring activities in 2022. These costs were primarily comprised of early contract termination costs related to certain independent sales agreements, employee severance within Progressive Leasing, and operating lease right-of-use asset impairment charges related to the relocation of the Vive corporate headquarters to the Company's corporate office building and a reduction of management and information technology office space. The following tables summarize restructuring charges recorded within operating expenses in the consolidated statements of earnings for the years ended ended December 31, 2023 and 2022: Year Ended December 31, 2023 Year Ended December 31, 2022 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Severance $ 2,958 $ — $ — $ 2,958 $ 5,611 $ — $ — $ 5,611 Right-of-Use Asset Impairment — — — — 2,285 655 — 2,940 Property and Equipment Impairment — — — — 309 3 — 312 Other Restructuring Activities 1 9,575 — — 9,575 138 — — 138 Total Restructuring Expenses $ 12,533 $ — $ — $ 12,533 $ 8,343 $ 658 $ — $ 9,001 1 Other Restructuring Activities for the year ended December 31, 2023 are primarily early contract termination costs related to certain independent sales agreements. The following table summarizes the accrual and payment activity related to the restructuring program for the years ended December 31, 2023 and 2022: (In Thousands) Severance Other Restructuring Activities Total Balance at December 31, 2021 $ — $ — $ — Charges 5,611 138 5,749 Cash Payments (2,550) (96) (2,646) Balance at December 31, 2022 3,061 42 3,103 Charges 2,958 9,575 12,533 Cash Payments (3,344) (7,117) (10,461) Balance at December 31, 2023 $ 2,675 $ 2,500 $ 5,175 On January 25, 2024, the Company announced that it had taken several restructuring actions that are expected to result in annual pre-tax savings. In connection with these actions, the Company estimates that it will incur approximately $18 to $21 million of restructuring charges, substantially all of which are expected to be incurred by the end of the first quarter of 2024. These estimated charges consist primarily of costs related to the early termination of an independent sales agent agreement, office space reduction and consolidation, and one-time severance payments and other termination benefits involving a reduction in Progressive Leasing's workforce. In connection with the cost reduction initiatives, the Company expects that substantially all charges will be cash expenditures. The estimated charges that the Company expects to incur are subject to a number of assumptions, and actual amounts may differ materially from such estimates. The Company may also incur additional charges not currently contemplated due to unanticipated events that may occur, including potential costs incurred in connection with the implementation of the cost reduction initiatives. The Company will continue to monitor the impacts of changes in macroeconomic conditions on its businesses and may take additional steps to further adjust the Company's cost structure based on unfavorable changes in these conditions, which may result in further restructuring charges in future periods. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY At December 31, 2023, the Company held 38,404,527 shares in its treasury and had the authority to purchase additional shares up to its remaining authorization limit of $197.7 million. On February 21, 2024, the Company's Board of Directors reauthorized the repurchase of Company common stock at an aggregate purchase price of up to $500 million under the Company's existing share repurchase program, with such reauthorized share repurchase program to be extended for a period of three years from February 21, 2024, or until the $500 million aggregate purchase price of Company common stock purchased pursuant to the reauthorized share repurchase program has been met, whichever occurs first. In 2023, the Company repurchased 4,691,274 shares of its common stock for $139.6 million. That amount does not include any excise tax that may be assessed on those repurchases. During 2022, the Company repurchased 8,720,223 shares of its common stock for $223.6 million. On February 21, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.12 per share of outstanding Company common stock, payable on March 28, 2024 to shareholders of record at the close of business on March 14, 2024. The future declaration and payment of dividends to holders of our common stock may be limited by the provisions of Georgia law, among other considerations. The future payment of dividends, if permitted, will be at the sole discretion of our Board of Directors and will depend on many factors, including our earnings, financial condition, and other considerations that our Board of Directors deems relevant. 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, 2023, the Company had issued approximately 63,000 unvested restricted stock awards that contain voting rights but are not presented as outstanding in the consolidated balance sheets. On November 4, 2021, the Company commenced a tender offer to purchase for cash up to $425 million in value of the Company's common stock at a price of not less than $44.00 per share and not more than $50.00 per share, less any applicable withholding taxes and without interest. The tender offer expired at the end of the day on December 3, 2021, and the Company subsequently accepted for payment, at a purchase price of $49.00 per share, a total of 8,673,469 shares for an aggregate cost of $425 million, excluding $3.7 million in fees and expenses relating to the tender offer. The shares repurchased through the tender offer were retired by the Company. In addition to the shares repurchased through the tender offer, the Company repurchased 2,937,709 shares of its common stock during 2021 for $142.4 million, totaling 11,611,178 shares of common stock for $567.4 million during the year ended December 31, 2021. 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, 2023, no preferred shares have been issued. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
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. In May 2021, the 2015 Plan was amended, with shareholder approval, to increase the number of shares of common stock authorized for issuance under the 2015 Plan from 8,000,000 shares to 10,980,000 shares. 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, 2023, the aggregate number of common stock shares that may be issued or transferred under the 2015 Plan is 4,039,103. 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 was $24.9 million, $17.5 million and $21.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. The total income tax benefit recognized in the consolidated statements of earnings for stock-based compensation arrangements was $6.2 million, $5.9 million and $5.5 million in the years ended December 31, 2023, 2022 and 2021, respectively. Deficits of recognized compensation costs in excess of tax deductions were $0.4 million and $1.7 million for the years ended December 31, 2023 and 2022, respectively. Benefits of tax deductions in excess of recognized compensation cost was $0.2 million for the year ended December 31, 2021. Deficits and benefits related to tax deductions for compensation cost are included in operating cash flows and as a component of income tax expense in the consolidated statements of earnings. As of December 31, 2023, there was $24.0 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 1.26 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 subsequent to the separation and distribution of The Aaron's Company in combination with the volatility of the Company's comparable peer group prior to the separation and distribution for 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 the market price of the underlying common stock at the time of grant. Beginning in 2021, the annual dividend rate is assumed to be zero, and no assumption for a future dividend rate has been included, as the Company did not anticipate paying any dividends at the time of grant. The Company granted 208,000, 264,000 and 150,000 stock options during the years ended December 31, 2023, 2022 and 2021, 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: 2023 2022 2021 Dividend Yield — % — % — % Expected Volatility 51.6 % 43.0 % 44.0 % Risk-free Interest Rate 4.3 % 1.5 % 0.6 % Expected Term (in years) 4.5 4.5 4.4 Weighted-average Fair Value of Stock Options Granted $ 11.66 $ 10.89 $ 17.26 The following table summarizes information about stock options outstanding at December 31, 2023: Options Outstanding Options Exercisable Range of Exercise Number Outstanding December 31, 2023 Weighted Average Remaining Contractual Weighted Average Number Exercisable December 31, 2023 Weighted Average $20.00-30.00 551,340 7.06 $ 26.31 207,140 $ 25.84 30.01-40.00 94,100 5.94 35.06 94,100 35.06 40.01-50.00 263,366 5.64 46.71 224,156 46.66 50.01-60.00 5,304 7.35 53.55 3,536 53.55 20.00-60.00 914,110 6.54 33.25 528,932 36.49 The table below summarizes option activity for the year ended December 31, 2023: Options Weighted Average Weighted Average Aggregate Weighted Outstanding at January 1, 2023 727 $ 35.55 Granted 208 24.70 Forfeited/Expired (18) 28.16 Exercised (3) 29.16 Outstanding at December 31, 2023 914 33.25 6.54 $ 2,536 $ 12.45 Expected to Vest 375 28.88 8.57 1,429 11.98 Exercisable at December 31, 2023 529 36.49 5.05 1,050 12.81 The aggregate intrinsic value amounts in the table above represent the closing price of the Company's common stock on December 31, 2023 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 $0.1 million and $1.0 million during the years ended December 31, 2023 and 2021, respectively. The total grant-date fair value of options exercised was $0.1 million and $1.0 million during the years ended December 31, 2023 and 2021, respectively. There were no options exercised during 2022. 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 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. The Company granted 574,000, 630,000 and 521,000 shares of restricted stock at weighted-average fair values of $25.69, $26.05 and $44.44 in the years ended December 31, 2023, 2022 and 2021, respectively. The following table summarizes information about restricted stock activity during 2023: Restricted Stock Weighted Average Non-vested at January 1, 2023 1,028 $ 33.84 Granted 574 25.69 Forfeited (115) 26.30 Vested (307) 30.53 Non-vested at December 31, 2023 1,180 31.47 The total vest-date fair value of restricted stock described above that vested during the year was $8.4 million, $3.9 million and $7.8 million in the years ended December 31, 2023, 2022 and 2021, respectively. Performance Share Units For performance share units, which are settled in stock, the number of shares earned is determined at the end of the one 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 2023: Performance Share Units Weighted Average Non-vested at January 1, 2023 741 $ 39.86 Granted 358 25.57 Forfeited (50) 26.57 Vested (82) 40.86 Performance Factor Adjustment (217) 30.19 Non-vested at December 31, 2023 750 36.38 The total vest-date fair value of performance share units described above that vested during the period was $2.2 million, $4.1 million and $7.1 million for the years ended December 31, 2023, 2022 and 2021, 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 (determined at the time the ability to purchase shares of common stock is granted) and may not purchase more than 500 shares in each offering period. 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 $0.4 million, $0.4 million and $0.4 million for years ended December 31, 2023, 2022 and 2021, respectively. The Company issued 67,720, 81,784 and 38,044 shares under the ESPP at weighted average purchase prices of $18.72, $14.06 and $39.62 during the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, the aggregate number of shares of common stock that may be issued under the ESPP was 387,766. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS Description of Products and Services of Reportable Segments As of December 31, 2023, the Company has two reportable segments: Progressive Leasing and Vive. Progressive Leasing partners with traditional and e-commerce retailers, primarily in the consumer residential electronics, furniture and appliance, jewelry, mobile phones and accessories, mattresses, and automobile electronics and accessories industries to offer a lease-purchase solution primarily 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 frequencies. 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 POS partners with near-prime and below-prime customers one source for financing and leasing transactions. As discussed in Note 2 above, on June 25, 2021, the Company completed the acquisition of Four, an innovative BNPL company that allows shoppers to pay for merchandise through four interest-free installments. Four is not a reportable segment for the year ended December 31, 2023 as its financial results are not material to the Company's consolidated financial results. The revenues, loss before income taxes, and assets within Other below are primarily comprised of the operating activities of Four. 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, 2023: Year Ended December 31, 2023 (In Thousands) Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 2,333,588 $ — $ — $ 2,333,588 Interest and Fees on Loans Receivable 2 — 68,912 5,764 74,676 Total $ 2,333,588 $ 68,912 $ 5,764 $ 2,408,264 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables . The following table presents revenue by source and by segment for the year ended December 31, 2022: Year Ended December 31, 2022 (In Thousands) Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 2,523,785 $ — $ — $ 2,523,785 Interest and Fees on Loans Receivable 2 — 70,911 3,130 74,041 Total $ 2,523,785 $ 70,911 $ 3,130 $ 2,597,826 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables. The following table presents revenue by source and by segment for the year ended December 31, 2021: Year Ended December 31, 2021 (In Thousands) Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 2,619,005 $ — $ — $ 2,619,005 Interest and Fees on Loans Receivable 2 — 58,462 453 58,915 Total $ 2,619,005 $ 58,462 $ 453 $ 2,677,920 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables. Measurement of Segment Profit or Loss and Segment Assets The Company evaluates performance and allocates resources based on revenues and earnings (loss) before income tax expense. The Company determines earnings (loss) before income tax expense for all reportable segments in accordance with U.S. GAAP. A portion of interest expense is allocated from the Progressive Leasing segment to the Vive segment based on the balance of outstanding intercompany debt. 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, 2023, 2022, and 2021. Corporate overhead expenses incurred are primarily reflected as expenses of the Progressive Leasing segment and an immaterial amount was allocated to the Vive segment and Other. The allocation of corporate overhead costs to Progressive Leasing, Vive and Other is consistent with how the chief operating decision maker analyzed performance and allocated resources among the segments of the Company during the years ended December 31, 2023, 2022, and 2021. The following is a summary of earnings before income tax expense by segment: Year Ended December 31, (In Thousands) 2023 2022 2021 Earnings Before Income Tax Expense: Progressive Leasing $ 216,271 $ 174,143 $ 319,125 Vive 4,545 9,195 20,225 Other 1 (24,595) (35,094) (11,146) Total Earnings Before Income Tax Expense $ 196,221 $ 148,244 $ 328,204 1 Earnings before income tax expense attributable to Other for the year ended December 31, 2022 includes a $10.2 million goodwill impairment loss related to the partial impairment of Four's goodwill as discussed in Note 1 and Note 3. The following is a summary of total assets by segment: December 31, (In Thousands) 2023 2022 Assets: Progressive Leasing $ 1,286,587 $ 1,309,487 Vive 141,028 155,846 Other 63,640 26,576 Total Assets $ 1,491,255 $ 1,491,909 Year Ended December 31, (In Thousands) 2023 2022 2021 Depreciation and Amortization: Progressive Leasing $ 29,165 $ 31,374 $ 31,762 Vive 745 795 849 Other 2,122 1,682 647 Total Depreciation and Amortization 1 $ 32,032 $ 33,851 $ 33,258 Depreciation of Lease Merchandise: Progressive Leasing $ 1,576,303 $ 1,757,730 $ 1,820,010 Vive — — — Other — — — Total Depreciation of Lease Merchandise $ 1,576,303 $ 1,757,730 $ 1,820,010 Interest Expense, Net: Interest Expense: Progressive Leasing $ 38,859 $ 38,675 $ 5,590 Vive 593 398 472 Other — — — Intercompany Elimination (758) (398) (472) Interest Income: Progressive Leasing $ (9,881) $ (1,672) $ (739) Vive — — — Other (165) — Intercompany Elimination 758 398 472 Total Interest Expense, Net $ 29,406 $ 37,401 $ 5,323 Capital Expenditures 2 : Progressive Leasing $ 6,160 $ 5,835 $ 8,101 Vive 601 926 819 Other 2,855 2,913 635 Total Capital Expenditures $ 9,616 $ 9,674 $ 9,555 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. 2 Capital expenditures primarily consists of internal-use software, as well as computer hardware and furniture and equipment. In 2023, the results of the Company's operating segments were impacted by the following items: • Progressive Leasing earnings before income tax expense were impacted by $12.5 million related primarily to early contract termination costs and employee severance costs associated with the Company's restructuring activities. • Progressive Leasing earnings before income tax expense were impacted by $2.8 million related to actual and anticipated costs related to the cybersecurity incident that occurred during the third quarter of 2023. In 2022, the results of the Company's operating segments were impacted by the following items: • Progressive Leasing earnings before income tax expense were impacted by $8.3 million related primarily to severance costs and lease asset impairment associated with the Company's restructuring activities. • Vive earnings before income tax expense were impacted by $0.7 million related primarily to lease asset impairment associated with the Company's restructuring activities. • Other earnings before income tax expense were impacted by the $10.2 million impairment loss associated with the partial impairment of Four's goodwill. In 2021, the results of the Company's operating segments were not impacted by any significant unusual items. |
COMPENSATION ARRANGEMENTS
COMPENSATION ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
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. 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 $2.5 million and $2.2 million as of December 31, 2023 and 2022, 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 cash and money market funds. The value of the assets within the rabbi trust was $2.6 million and $1.9 million as of December 31, 2023 and 2022, respectively, and is included in prepaid expenses and other assets in the consolidated balance sheets. Benefits paid to employees of the Company were not material during the years ended December 31, 2023, 2022 and 2021. 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 for an individual employee is not to exceed $13,200, $12,200, and $11,600 in 2023, 2022, and 2021, respectively, and is subject to a three-year cliff vesting schedule. The deferred compensation expense related to the Company's matching contributions was not material for the years ended December 31, 2023, 2022, and 2021. 401(k) Defined Contribution Plan The Company maintains a 401(k) savings plan for all its employees. 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. The Company's expense related to the plan was $3.2 million in 2023, $3.2 million in 2022 and $2.5 million in 2021. Employee Stock Purchase Plan See Note 13 to these consolidated financial statements for more information regarding the Company's compensatory ESPP. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Earnings | $ 138,838 | $ 98,709 | $ 243,557 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 that provides transparent and competitive payment options to consumers. PROG Holdings has two reportable segments: (i) Progressive Leasing, an in-store, app-based, and e-commerce point-of-sale lease-to-own solutions provider; and (ii) Vive Financial ("Vive"), an omnichannel provider of second-look revolving credit products. Our Progressive Leasing segment provides consumers with lease-purchase solutions through its point-of-sale partner locations and e-commerce website partners in the United States and Puerto Rico (collectively, "POS partners"). 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 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 POS partner locations and e-commerce websites includes furniture, mattresses, home exercise equipment, and home improvement retailers, as well as medical and dental service providers. On June 25, 2021, the Company completed the acquisition of Four Technologies, Inc. ("Four"), an innovative Buy Now, Pay Later ("BNPL") company that allows shoppers to pay for merchandise through four interest-free installments. Shoppers use Four to purchase furniture, clothing, electronics, health and beauty products, footwear, jewelry, and other consumer goods from retailers across the United States. Four is not a reportable segment for the years ended December 31, 2023, 2022 and 2021 as its financial results are not material to the Company's consolidated financial results. See Note 2 for further discussion on the acquisition. |
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. Management does not believe these estimates or assumptions will change significantly in the future absent unidentified and unforeseen events, such as the possible direct or indirect impacts associated with elevated inflation, increasing unemployment rates, the resumption of student loan repayments in October 2023, and/or the possibility of a recession in the United States. |
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, mattresses, automobile electronics and accessories, and a variety of other products, to its customers for lease under 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. All of Progressive Leasing's customer 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 lease payments made by the customer upon lease execution are recognized as deferred revenue and are amortized as lease revenue over the estimated lease term on a straight-line basis. Initial lease payments and other payments collected in advance of being due or earned are recognized as deferred revenue within customer deposits and advance payments in the accompanying consolidated balance sheets. All other customer lease billings 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, semi-monthly 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. Lease revenues are recorded net of a provision for uncollectible renewal payments. 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 Interest and fees on loans receivable is primarily generated from our Vive segment. Vive extends or declines credit to an applicant through its bank partners based upon the applicant's credit rating and other factors. Qualifying applicants are approved for a specified maximum revolving credit card line 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 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 in 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 fees on loans receivable in the consolidated statements of earnings on a straight-line basis over the initial 24-month period. If the loan receivable is paid off or charged off during the 24-month period, the remaining net merchant fee discount is recognized as interest and fees on loans receivable at that time. 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. 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, Vive also may assess fees 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 fees on loans receivable in the consolidated statements of earnings. |
Lease Merchandise | Lease Merchandise Progressive Leasing's merchandise consists primarily of furniture, appliances, electronics, jewelry, mobile phones and accessories, mattresses, automobile electronics and accessories, 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. |
Advertising | Advertising The Company expenses advertising costs as incurred. Total advertising costs amounted to $17.2 million, $15.8 million and $17.5 million for the years ended December 31, 2023, 2022 and 2021, respectively, and are classified within operating expenses in the consolidated statements of earnings. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based employee compensation plans, which are more fully described in Note 13 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 13 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 Share |
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 $67.9 million and $64.5 million, net of allowances, as of December 31, 2023 and 2022, 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 uncollectible renewal payments based on historical collection experience. Other qualitative factors, such as current and forecasted business trends, are considered in estimating the allowance. Given the significant uncertainty regarding the impacts of inflation, elevated interest rates, the resumption of student loan repayments, and/or unemployment rates on our business, a high level of estimation was involved in determining the allowance as of December 31, 2023. Therefore, actual future accounts receivable write-offs may differ materially from the allowance. The provision for uncollectible renewal payments is recorded as a reduction of lease revenues and fees within the consolidated statements of earnings. For customer lease agreements that are past due, the Company's policy is to write off lease receivables after 120 days. Vive's allowance for uncollectible merchant accounts receivable, which primarily relates to cardholder returns and refunds, and is an immaterial amount related to Vive's bad debt expense, is recorded within operating expenses in the consolidated statements of earnings. See below for a discussion of Vive's loans receivable and related allowance for loan losses. |
Loans Receivable, Net | Loans Receivable, Net Gross loans receivable primarily 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. Loans receivable, net, also includes $13.9 million and $5.3 million of outstanding receivables from customers of Four as of December 31, 2023 and 2022, respectively. 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. Expected lifetime losses on loans receivable are recognized upon loan acquisition, which requires the Company to make its best estimate of probable lifetime losses at the time of acquisition. Vive's 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 Fair Isaac and Company ("FICO") score and by delinquency status and evaluates loans receivable collectively for impairment when similar risk characteristics exist. The Company calculates Vive's allowance for loan losses based on internal historical loss information and incorporates observable and forecasted macroeconomic data over a six-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 inflation and unemployment rates. Subsequent to the six-month reasonable and supportable forecast period described above, the Company reverts to using historical loss information on a straight-line basis over a three-month period. For the remaining life of the portfolio, the Company utilizes historical loss information. 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, 2023, management considered qualitative factors such as the tightening of Vive's loan decisioning in mid-2022 and macroeconomic conditions associated with the impacts from increased inflation, unemployment rates, and/or the possibility of a recession in the United States. 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, due to the volatility of inflation, forecasted higher unemployment rates, housing costs, the resumption of student loan repayments in October 2023, and/or changes to other macroeconomic factors used to calculate the allowance, the Company's results of operations and liquidity may be materially affected. Vive's delinquent loans receivable includes those that are 30 days or more past due based on their contractual billing dates. Vive's loans receivable are placed 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 Vive's 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. |
Property and Equipment | Property and Equipment The Company records property 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 one 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 and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $9.3 million, $11.0 million and $11.0 million during the years ended December 31, 2023, 2022 and 2021, respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property and equipment, was $5.4 million, $5.5 million and $4.9 million during the years ended December 31, 2023, 2022 and 2021, 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 | 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 and Four are the only reporting units with goodwill. Impairment occurs when the reporting unit's carrying value exceeds its fair value. 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 an 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 failing to successfully execute on one or more elements of Progressive Leasing and/or Four's strategic plans. During the third quarter of 2022, the Company engaged the assistance of a third-party valuation firm to perform the interim goodwill impairment test for the Four reporting unit. This included an assessment of the Four reporting unit's fair value relative to the carrying value that was derived using a market approach. The market approach, which includes the guideline public company method, utilized pricing multiples derived from an analysis of other publicly traded companies that operate in the BNPL industry. We believe the comparable companies we evaluate as marketplace participants serve as an appropriate reference when calculating fair value because those companies have similar risks, participate in similar markets, provide similar products and services for their customers and compete with Four directly. The Company determined the Four goodwill was partially impaired and recorded a $10.2 million impairment of goodwill during the third quarter of 2022. The remaining carrying value of the Four reporting unit was $7.3 million, which approximated its fair value as of October 1, 2022. Additional goodwill impairment charges may occur in future periods if the Company fails to execute on one or more elements of Four's strategic plan, Four's actual or projected results are unfavorable compared to the current forecasted operating results, and/or there are further declines in the BNPL peer market multiples. The Company completed qualitative assessments for its annual goodwill impairment test for both Progressive Leasing and Four as of October 1, 2023. The qualitative assessments did not present any indicators of impairment and the Company concluded that no impairment had occurred. The Company determined that there were no events that occurred or circumstances that changed during the fourth quarter of 2023 that would more likely than not reduce the fair value of Progressive Leasing or Four below their carrying amounts. |
Other Intangibles | Other Intangibles Other intangibles represent identifiable intangible assets acquired as a result of the Progressive Leasing, Vive and Four 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 and Four acquisitions on a straight-line basis over periods ranging from two Indefinite-lived intangible assets represent the value of the trade name 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, 2023 and concluded that no impairment had occurred. |
Cybersecurity Incident | Cybersecurity Incident As previously disclosed by the Company on September 21, 2023, Progressive Leasing experienced a cybersecurity incident affecting certain data and IT systems of Progressive Leasing. Promptly after detecting the incident, the Company engaged third-party cybersecurity experts and took immediate steps to respond to, remediate and investigate the incident. Law enforcement was also notified. Based on the Company's investigation, the Company determined that the data involved in the incident contained a substantial amount of personally identifiable information, including social security numbers, of Progressive Leasing's customers and other individuals. With the assistance of our cybersecurity experts, the Company located the Progressive Leasing customers and other individuals whose information was impacted and notified them, consistent with state and federal requirements. The Company also took a number of additional measures to demonstrate its continued support and commitment to data privacy and protection. The investigation is nearly complete and the Company believes it has a full view of the compromised data. During the year ended December 31, 2023, the Company incurred $2.8 million for actual and anticipated costs related to the cybersecurity incident. These costs related primarily to third-party legal and consulting services and credit monitoring services for Progressive Leasing's customers and employees that were impacted and are included within professional services expense as a component of operating expenses in the consolidated statements of earnings. At December 31, 2023, the Company had $0.9 million accrued for costs related to the cybersecurity incident, which are included in accounts payable and accrued expenses in the consolidated balance sheets. |
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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses, Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-04 eliminates the accounting guidance for troubled debt restructurings by creditors while enhancing disclosure requirements for certain restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs for financing receivables by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for entities. The Company has elected to early adopt this standard for the year ended December 31, 2022. The adoption of this update did not have a material impact to the financial statements; however, the Company enhanced its vintage disclosure to include the current period gross write-offs by year of origination within Note 6. 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 Rate ("LIBOR") or another reference rate expected to be discontinued. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made. The provisions of this update have been extended to December 31, 2024, when the reference rate replacement activity is expected to have been completed. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts referencing LIBOR. The new guidance provides an expedient which simplifies accounting analyses under current U.S. GAAP for contract modifications if the change is directly related to a change from LIBOR to a new interest rate index. The Company amended the Revolving Facility agreement to change the reference rate from LIBOR to the Secured Overnight Financing Rate ("SOFR") during 2023. There were no other changes to key terms of the Revolving Facility agreement and the legal expenses incurred in connection with the amendment were immaterial. |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of 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) 2023 2022 2021 Beginning Balance $ 47,118 $ 54,367 $ 45,992 Net Book Value of Merchandise Written off (165,153) (210,160) (128,031) Recoveries 6,965 8,985 9,422 Provision for Write-offs 155,250 193,926 126,984 Ending Balance $ 44,180 $ 47,118 $ 54,367 |
Schedule of Calculation of Dilutive Stock Awards | The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2023 2022 2021 Weighted Average Shares Outstanding 46,034 51,921 66,026 Dilutive Effect of Share-Based Awards 516 154 390 Weighted Average Shares Outstanding Assuming Dilution 46,550 52,075 66,416 |
Schedule of Allowance for Doubtful Accounts | The following table shows the components of the accounts receivable allowance: Year Ended December 31, (In Thousands) 2023 2022 2021 Beginning Balance $ 69,264 $ 71,233 $ 56,364 Net Book Value of Accounts Written Off (348,729) (415,344) (247,789) Recoveries 39,019 37,111 37,914 Accounts Receivable Provision 304,626 376,264 224,744 Ending Balance $ 64,180 $ 69,264 $ 71,233 |
Schedule of Loan Portfolio Credit Quality Indicators | Below is a summary of the credit quality of the Company's loan portfolio as of December 31, 2023 and 2022 by FICO score as determined at the time of loan origination: December 31, FICO Score Category 2023 2022 600 or Less 6.5 % 6.9 % Between 600 and 700 73.5 % 75.4 % 700 or Greater 11.2 % 13.4 % No Score Identified 8.8 % 4.3 % The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: As of December 31, 2023 (In Thousands) 2023 2022 and Prior Revolving Loans Total FICO Score Category: 600 or Less $ — $ — $ 10,909 $ 10,909 Between 600 and 700 — — 120,860 120,860 700 or Greater — — 17,919 17,919 No Score Identified 17,755 — — 17,755 Total Amortized Cost $ 17,755 $ — $ 149,688 $ 167,443 Gross Charge-offs by Origination Year for the Year Ended December 31, 2023 $ 2,188 $ 2,449 $ 43,569 $ 48,206 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following: December 31, (In Thousands) 2023 2022 Prepaid Expenses $ 17,768 $ 18,845 Prepaid Lease Merchandise 9,944 10,134 Prepaid Software Expenses 8,624 7,022 Unamortized Initial Direct Costs on Lease Agreement Originations 7,192 6,016 Other Assets 7,183 6,464 Prepaid Expenses and Other Assets $ 50,711 $ 48,481 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: December 31, (In Thousands) 2023 2022 Accounts Payable $ 20,237 $ 14,386 Accrued Salaries and Benefits 27,256 21,366 Accrued Sales and Personal Property Taxes 11,684 13,517 Income Taxes Payable 1,153 1,287 Uncertain Tax Positions 1 54,995 51,110 Accrued Vendor Rebates 11,446 9,320 Other Accrued Expenses and Liabilities 24,488 24,039 Accounts Payable and Accrued Expenses $ 151,259 $ 135,025 1 The uncertain tax positions as of December 31, 2023 and 2022 are primarily related to the Company's tax treatment of the $175.0 million settlement payment made in 2020 to the FTC as discussed in Note 9. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table provides the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date: (In Thousands) Final Amounts Recognized as of Acquisition Aggregate Purchase Price $ 22,694 Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 334 Loans Receivable 609 Property, Plant and Equipment 198 Other Intangibles 5,173 Prepaid Expenses and Other Assets 39 Total Identifiable Assets Acquired 6,353 Accounts Payable and Accrued Expenses (232) Deferred Income Tax Liability (838) Total Liabilities Assumed (1,070) Goodwill 17,411 Net Assets Acquired $ 22,694 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The intangible assets attributable to the acquisition are comprised of the following: Fair Value Weighted Average Life Acquired Technology $ 4,000 5.0 Trade Name 587 5.0 Merchant Relationships 586 2.0 Total Acquired Intangibles Assets 1 $ 5,173 1 Acquired definite-lived intangible assets have a total weighted average life of 4.7 years. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 Trade Name $ 53,000 $ 53,000 Goodwill 296,061 296,061 Indefinite-lived Intangible Assets $ 349,061 $ 349,061 |
Schedule of Carrying Value of Goodwill by Reporting Segment | The following table provides information related to the carrying amount of the Company's goodwill by reporting unit: (In Thousands) Progressive Leasing Four Total Balance at January 1, 2022 $ 288,801 $ 17,411 $ 306,212 Impairment of Goodwill 1 — (10,151) (10,151) Balance at December 31, 2022 288,801 7,260 296,061 Changes to Goodwill — — — Balance at December 31, 2023 $ 288,801 $ 7,260 $ 296,061 1 As of September 30, 2022, the Company determined the Four goodwill was partially impaired and recorded an impairment of goodwill of $10.2 million during the third quarter of 2022. For further details regarding the impairment, see Note 1. |
Schedule of Identifiable Intangible Assets | The following table summarizes information related to definite-lived intangible assets at December 31: 2023 2022 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal-Use Software $ 14,000 $ (14,000) $ — $ 14,000 $ (14,000) $ — Technology 72,550 (68,662) 3,888 72,550 (61,262) 11,288 Merchant Relationships 181,586 (147,104) 34,482 181,586 (131,874) 49,712 Other Intangibles 1 587 (293) 294 587 (176) 411 Total $ 268,723 $ (230,059) $ 38,664 $ 268,723 $ (207,312) $ 61,411 1 Other intangibles consists of the Four trade name. |
Schedule of Estimated Future Amortization Expense | As of December 31, 2023, estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2024 $ 17,889 2025 16,001 2026 4,774 2027 — 2028 — |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule 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, 2023 December 31, 2022 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ 2,487 $ — $ — $ 2,185 $ — |
Schedule of Fair Value for Loan Receivable | The following table summarizes the fair value of the Company's debt and the loans receivable held by Vive and Four: December 31, 2023 December 31, 2022 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Senior Notes $ — $ 559,500 $ — $ — $ 481,320 $ — Loans Receivable, Net $ — $ — $ 148,466 $ — $ — $ 165,690 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The following is a summary of the Company's property and equipment: December 31, (In Thousands) 2023 2022 Leasehold Improvements $ 10,910 $ 10,910 Fixtures, Equipment and Vehicles 33,771 32,722 Internal-Use Software 39,792 31,163 Internal-Use Software - In Development 1,057 1,868 Property and Equipment, Gross 85,530 76,663 Less: Accumulated Depreciation and Amortization 1 (61,426) (52,811) Property and Equipment, Net $ 24,104 $ 23,852 1 Accumulated amortization of internal-use software development costs amounted to $23.1 million and $17.8 million as of December 31, 2023 and 2022, respectively. |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 Loans Receivable, Gross $ 176,845 $ 184,601 Unamortized Fees (9,402) (11,207) Loans Receivable, Amortized Cost 167,443 173,394 Allowance for Loan Losses (40,620) (42,428) Loans Receivable, Net of Allowances and Unamortized Fees 1 $ 126,823 $ 130,966 1 Loans Receivable, Net of Allowances and Unamortized Fees attributable to Four was $13.9 million and $5.3 million as of December 31, 2023 and 2022, respectively. |
Schedule of Loan Portfolio Credit Quality Indicators | Below is a summary of the credit quality of the Company's loan portfolio as of December 31, 2023 and 2022 by FICO score as determined at the time of loan origination: December 31, FICO Score Category 2023 2022 600 or Less 6.5 % 6.9 % Between 600 and 700 73.5 % 75.4 % 700 or Greater 11.2 % 13.4 % No Score Identified 8.8 % 4.3 % The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: As of December 31, 2023 (In Thousands) 2023 2022 and Prior Revolving Loans Total FICO Score Category: 600 or Less $ — $ — $ 10,909 $ 10,909 Between 600 and 700 — — 120,860 120,860 700 or Greater — — 17,919 17,919 No Score Identified 17,755 — — 17,755 Total Amortized Cost $ 17,755 $ — $ 149,688 $ 167,443 Gross Charge-offs by Origination Year for the Year Ended December 31, 2023 $ 2,188 $ 2,449 $ 43,569 $ 48,206 |
Schedule of 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 2023 2022 30-59 Days Past Due 7.3 % 6.6 % 60-89 Days Past Due 3.8 % 3.5 % 90 or More Days Past Due 5.4 % 5.1 % Past Due Loans Receivable 16.5 % 15.2 % Current Loans Receivable 83.5 % 84.8 % Balance of Credit Card Loans on Nonaccrual Status $ 4,482 $ 4,436 Balance of Loans Receivable 90 or More Days Past Due and Still Accruing Interest and Fees $ — $ — |
Schedule of Allowance for Loan Losses | The table below presents the components of the allowance for loan losses: Year Ended December 31, (In Thousands) 2023 2022 Beginning Balance $ 42,428 $ 40,789 Provision for Loan Losses 40,757 41,232 Charge-offs (48,206) (43,979) Recoveries 5,641 4,386 Ending Balance $ 40,620 $ 42,428 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Total Lease Expense | The Company's total operating lease cost is comprised of the following: Year Ended December 31, (In Thousands) 2023 2022 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 $ 3,178 $ 4,239 Total Operating Lease cost: $ 3,178 $ 4,239 1 Short-term and variable lease expenses were not significant during the years ended December 31, 2023 and 2022. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. |
Schedule of Supplemental Cash Flow Information | Additional information regarding the Company's leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2023 2022 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 5,847 $ 5,913 Total Cash paid for amounts included in measurement of Lease Liabilities 5,847 5,913 Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities — 711 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: December 31, (In Thousands) Balance Sheet Classification 2023 2022 Assets Total Lease Assets 1 Operating Lease Right-of-Use Assets $ 9,271 $ 11,875 Liabilities Total Lease Liabilities Operating Lease Liabilities $ 15,849 $ 21,122 1 Operating lease right-of-use assets as of December 31, 2022 reflects impairment charges of $2.9 million that were recorded as part of the restructuring activities initiated during 2022. For further details related to the restructuring activities, see Note 11 . |
Schedule of Weighted-Average Discount Rate and Weighted-Average Remaining Lease Term | Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company's operating leases: December 31, 2023 2022 Weighted Average Discount Rate Weighted Average Remaining Lease Term (in years) Weighted Average Discount Rate Weighted Average Remaining Lease Term (in years) Operating Leases 3.5 % 3.1 3.4 % 3.9 |
Schedule of 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 2024 $ 5,675 2025 4,513 2026 3,911 2027 2,672 2028 — Thereafter — Total Undiscounted Cash Flows 16,771 Less: Interest (922) Present Value of Lease Liabilities $ 15,849 |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Credit Facilities | Below is a summary of the Company's debt, net of applicable unamortized debt issuance costs: December 31, (In Thousands) 2023 2022 Senior Unsecured Notes, 6.000%, due November 2029 $ 600,000 $ 600,000 Revolving Facility Outstanding 1 — — Less: Unamortized Debt Issuance Costs (7,735) (9,034) Total Debt, Net of Unamortized Debt Issuance Costs $ 592,265 $ 590,966 1 Unamortized debt issuance costs related to the Revolving Facility were $0.9 million and $1.3 million as of December 31, 2023 and 2022, respectively. These amounts were included within prepaid expenses in the consolidated balance sheets. |
Schedule of Future Maturities of Long Term Debt and Capital Lease Obligations | Below is a summary of future principal maturities due as of December 31, 2023: (In Thousands) 2024 $ — 2025 — 2026 — 2027 — 2028 — Thereafter 600,000 Total $ 600,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The following is a summary of the Company's income tax expense: Year Ended December 31, (In Thousands) 2023 2022 2021 Current Income Tax Expense: Federal $ 77,412 $ 46,579 $ 50,240 State 12,420 12,155 18,678 89,832 58,734 68,918 Deferred Income Tax (Benefit) Expense: Federal (32,612) (10,696) 16,852 State 163 1,497 (1,123) (32,449) (9,199) 15,729 Income Tax Expense $ 57,383 $ 49,535 $ 84,647 |
Schedule of Components of Deferred Income Tax Liabilities and Assets | Significant components of the Company's deferred income tax liabilities and assets are as follows: December 31, (In Thousands) 2023 2022 Deferred Income Tax Liabilities: Property and Equipment $ 103 $ 232 Goodwill and Other Intangibles 657 949 Investment in Partnership 131,002 161,499 Operating Lease Right-of-Use Assets 173 271 Total Deferred Income Tax Liabilities 131,935 162,951 Deferred Income Tax Assets: Accrued Liabilities 9,769 10,420 Advance Payments 38 33 Operating Lease Liabilities 191 382 Other, Net 25,795 23,598 Total Deferred Income Tax Assets 35,793 34,433 Less: Valuation Allowance (5,715) (5,788) Net Deferred Income Tax Liabilities $ 101,857 $ 134,306 |
Schedule of Effective Tax Rate Differs from Statutory United States Federal Income Tax Rate | The Company's effective tax rate differs from the statutory United States Federal income tax rate as follows: Year Ended December 31, 2023 2022 2021 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 4.9 5.0 3.8 Non-deductible Goodwill Impairment — 1.4 — Other Permanent Differences 0.3 0.6 — Deferred Tax Adjustments 1.1 0.7 — Valuation Allowance — 2.2 — Current Uncertain Tax Position Expense 1.9 2.2 0.7 Shortfall in Stock-based Compensation 0.4 1.0 — Other, Net (0.4) (0.7) 0.3 Effective Tax Rate 29.2 % 33.4 % 25.8 % |
Schedule 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) 2023 2022 2021 Balance at January 1, $ 46,407 $ 46,750 $ 2,748 Additions Based on Tax Positions Related to the Current Year 81 850 44,816 Additions for Tax Positions of Prior Years — — 21 Prior Year Reductions — — (1) Statute Expirations (288) (607) (692) Settlements — (586) (142) Balance at December 31, $ 46,200 $ 46,407 $ 46,750 |
RESTRUCTURING EXPENSES (Tables)
RESTRUCTURING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following tables summarize restructuring charges recorded within operating expenses in the consolidated statements of earnings for the years ended ended December 31, 2023 and 2022: Year Ended December 31, 2023 Year Ended December 31, 2022 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Severance $ 2,958 $ — $ — $ 2,958 $ 5,611 $ — $ — $ 5,611 Right-of-Use Asset Impairment — — — — 2,285 655 — 2,940 Property and Equipment Impairment — — — — 309 3 — 312 Other Restructuring Activities 1 9,575 — — 9,575 138 — — 138 Total Restructuring Expenses $ 12,533 $ — $ — $ 12,533 $ 8,343 $ 658 $ — $ 9,001 1 Other Restructuring Activities for the year ended December 31, 2023 are primarily early contract termination costs related to certain independent sales agreements. |
Schedule of Restructuring Reserve | The following table summarizes the accrual and payment activity related to the restructuring program for the years ended December 31, 2023 and 2022: (In Thousands) Severance Other Restructuring Activities Total Balance at December 31, 2021 $ — $ — $ — Charges 5,611 138 5,749 Cash Payments (2,550) (96) (2,646) Balance at December 31, 2022 3,061 42 3,103 Charges 2,958 9,575 12,533 Cash Payments (3,344) (7,117) (10,461) Balance at December 31, 2023 $ 2,675 $ 2,500 $ 5,175 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of 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: 2023 2022 2021 Dividend Yield — % — % — % Expected Volatility 51.6 % 43.0 % 44.0 % Risk-free Interest Rate 4.3 % 1.5 % 0.6 % Expected Term (in years) 4.5 4.5 4.4 Weighted-average Fair Value of Stock Options Granted $ 11.66 $ 10.89 $ 17.26 |
Schedule of Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2023: Options Outstanding Options Exercisable Range of Exercise Number Outstanding December 31, 2023 Weighted Average Remaining Contractual Weighted Average Number Exercisable December 31, 2023 Weighted Average $20.00-30.00 551,340 7.06 $ 26.31 207,140 $ 25.84 30.01-40.00 94,100 5.94 35.06 94,100 35.06 40.01-50.00 263,366 5.64 46.71 224,156 46.66 50.01-60.00 5,304 7.35 53.55 3,536 53.55 20.00-60.00 914,110 6.54 33.25 528,932 36.49 |
Schedule of Stock Option Activity | The table below summarizes option activity for the year ended December 31, 2023: Options Weighted Average Weighted Average Aggregate Weighted Outstanding at January 1, 2023 727 $ 35.55 Granted 208 24.70 Forfeited/Expired (18) 28.16 Exercised (3) 29.16 Outstanding at December 31, 2023 914 33.25 6.54 $ 2,536 $ 12.45 Expected to Vest 375 28.88 8.57 1,429 11.98 Exercisable at December 31, 2023 529 36.49 5.05 1,050 12.81 |
Schedule of Restricted Stock Activity | The following table summarizes information about restricted stock activity during 2023: Restricted Stock Weighted Average Non-vested at January 1, 2023 1,028 $ 33.84 Granted 574 25.69 Forfeited (115) 26.30 Vested (307) 30.53 Non-vested at December 31, 2023 1,180 31.47 |
Schedule of Performance Share Units | The following table summarizes information about performance share unit activity during 2023: Performance Share Units Weighted Average Non-vested at January 1, 2023 741 $ 39.86 Granted 358 25.57 Forfeited (50) 26.57 Vested (82) 40.86 Performance Factor Adjustment (217) 30.19 Non-vested at December 31, 2023 750 36.38 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of 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, 2023: Year Ended December 31, 2023 (In Thousands) Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 2,333,588 $ — $ — $ 2,333,588 Interest and Fees on Loans Receivable 2 — 68,912 5,764 74,676 Total $ 2,333,588 $ 68,912 $ 5,764 $ 2,408,264 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables . The following table presents revenue by source and by segment for the year ended December 31, 2022: Year Ended December 31, 2022 (In Thousands) Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 2,523,785 $ — $ — $ 2,523,785 Interest and Fees on Loans Receivable 2 — 70,911 3,130 74,041 Total $ 2,523,785 $ 70,911 $ 3,130 $ 2,597,826 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables. The following table presents revenue by source and by segment for the year ended December 31, 2021: Year Ended December 31, 2021 (In Thousands) Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 2,619,005 $ — $ — $ 2,619,005 Interest and Fees on Loans Receivable 2 — 58,462 453 58,915 Total $ 2,619,005 $ 58,462 $ 453 $ 2,677,920 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables. Year Ended December 31, (In Thousands) 2023 2022 2021 Earnings Before Income Tax Expense: Progressive Leasing $ 216,271 $ 174,143 $ 319,125 Vive 4,545 9,195 20,225 Other 1 (24,595) (35,094) (11,146) Total Earnings Before Income Tax Expense $ 196,221 $ 148,244 $ 328,204 1 Earnings before income tax expense attributable to Other for the year ended December 31, 2022 includes a $10.2 million goodwill impairment loss related to the partial impairment of Four's goodwill as discussed in Note 1 and Note 3. The following is a summary of total assets by segment: December 31, (In Thousands) 2023 2022 Assets: Progressive Leasing $ 1,286,587 $ 1,309,487 Vive 141,028 155,846 Other 63,640 26,576 Total Assets $ 1,491,255 $ 1,491,909 Year Ended December 31, (In Thousands) 2023 2022 2021 Depreciation and Amortization: Progressive Leasing $ 29,165 $ 31,374 $ 31,762 Vive 745 795 849 Other 2,122 1,682 647 Total Depreciation and Amortization 1 $ 32,032 $ 33,851 $ 33,258 Depreciation of Lease Merchandise: Progressive Leasing $ 1,576,303 $ 1,757,730 $ 1,820,010 Vive — — — Other — — — Total Depreciation of Lease Merchandise $ 1,576,303 $ 1,757,730 $ 1,820,010 Interest Expense, Net: Interest Expense: Progressive Leasing $ 38,859 $ 38,675 $ 5,590 Vive 593 398 472 Other — — — Intercompany Elimination (758) (398) (472) Interest Income: Progressive Leasing $ (9,881) $ (1,672) $ (739) Vive — — — Other (165) — Intercompany Elimination 758 398 472 Total Interest Expense, Net $ 29,406 $ 37,401 $ 5,323 Capital Expenditures 2 : Progressive Leasing $ 6,160 $ 5,835 $ 8,101 Vive 601 926 819 Other 2,855 2,913 635 Total Capital Expenditures $ 9,616 $ 9,674 $ 9,555 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. 2 Capital expenditures primarily consists of internal-use software, as well as computer hardware and furniture and equipment. |
BUSINESS AND SUMMARY OF SIGNI_4
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) shares in Thousands | 12 Months Ended | ||||
Oct. 01, 2022 USD ($) | Jun. 25, 2021 paymentInstallment | Dec. 31, 2023 USD ($) segment shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Advertising costs | $ 17,200,000 | $ 15,800,000 | $ 17,500,000 | ||
Accounts receivable, after allowance for credit loss | 67,879,000 | 64,521,000 | |||
Loans receivable, net | 126,823,000 | 130,966,000 | |||
Depreciation expense for property and equipment | 9,300,000 | 11,000,000 | 11,000,000 | ||
Amortization expense | 22,700,000 | 22,900,000 | 22,300,000 | ||
Goodwill impairment | 0 | 10,151,000 | 0 | ||
Goodwill | 296,061,000 | 296,061,000 | 306,212,000 | ||
Impairment of indefinite-lived intangibles | $ 0 | ||||
Four Technologies, Inc. | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Goodwill | 7,300,000 | ||||
Computer Software, Intangible Asset | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amortization expense | $ 5,400,000 | $ 5,500,000 | $ 4,900,000 | ||
Minimum | Building and Building Improvements | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, useful life | 3 years | ||||
Minimum | Other depreciable property and equipment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, useful life | 1 year | ||||
Minimum | Computer Software, Intangible Asset | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, useful life | 5 years | ||||
Minimum | Software updates | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, useful life | 1 month | ||||
Maximum | Building and Building Improvements | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, useful life | 12 years | ||||
Maximum | Other depreciable property and equipment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, useful life | 7 years | ||||
Maximum | Computer Software, Intangible Asset | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, useful life | 10 years | ||||
Maximum | Software updates | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, useful life | 6 months | ||||
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 (in shares) | shares | 833 | 1,410 | 423 | ||
Progressive Leasing | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounts receivable, after allowance for credit loss | $ 67,900,000 | $ 64,500,000 | |||
Goodwill impairment | 0 | ||||
Goodwill | $ 288,801,000 | 288,801,000 | $ 288,801,000 | ||
Agreement One | Progressive Leasing | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease agreement period | 12 months | ||||
Four Technologies, Inc. | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of interest-free installments | paymentInstallment | 4 | ||||
Loans receivable, net | $ 13,900,000 | $ 5,300,000 | |||
Goodwill | $ 17,411,000 | ||||
DAMI | Technology | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful lives of intangibles (in years) | 5 years | ||||
Progressive Finance Holdings, LLC | Technology | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful lives of intangibles (in years) | 2 years | ||||
Progressive Finance Holdings, LLC | Merchant Relationships | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful lives of intangibles (in years) | 12 years |
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, 2023 | |
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 (in months) | 24 months |
Credit terms, minimum payment required, percentage of outstanding loan balance (in percentage) | 3.50% |
Credit Card Loans | Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Merchant fee (in percentage) | 3% |
Financing receivable promotional fees percent (in percentage) | 1% |
Credit terms, interest rate, fixed and variable (in percentage) | 27% |
Credit Card Loans | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Merchant fee (in percentage) | 25% |
Financing receivable promotional fees percent (in percentage) | 8% |
Credit terms, interest rate, fixed and variable (in percentage) | 35.99% |
BUSINESS AND SUMMARY OF SIGNI_6
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Lease Merchandise (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of the allowance of leases merchandise write-offs: | |||
Beginning Balance | $ 47,118 | $ 54,367 | $ 45,992 |
Net Book Value of Merchandise Written off | (165,153) | (210,160) | (128,031) |
Recoveries | 6,965 | 8,985 | 9,422 |
Provision for Write-offs | 155,250 | 193,926 | 126,984 |
Ending Balance | $ 44,180 | $ 47,118 | $ 54,367 |
Progressive Leasing | |||
Significant Accounting Policies [Line Items] | |||
Lease merchandise salvage value percentage | 0% | ||
Lease agreement, lease period used as asset useful life | 12 months |
BUSINESS AND SUMMARY OF SIGNI_7
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vendor Incentives and Rebates Provided to POS Partners (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
POS Partners | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Marketing expense | $ 28.5 | $ 27.7 | $ 18 |
BUSINESS AND SUMMARY OF SIGNI_8
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Calculation of Dilutive Stock Awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Weighted Average Outstanding Basic ( in shares) | 46,034 | 51,921 | 66,026 |
Dilutive Effect of Share-Based Awards (in shares) | 516 | 154 | 390 |
Weighted Average Shares Outstanding Assuming Dilution (in shares) | 46,550 | 52,075 | 66,416 |
BUSINESS AND SUMMARY OF SIGNI_9
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 69,264 | $ 71,233 | $ 56,364 |
Net Book Value of Accounts Written Off | (348,729) | (415,344) | (247,789) |
Recoveries | 39,019 | 37,111 | 37,914 |
Accounts Receivable Provision | 304,626 | 376,264 | 224,744 |
Ending Balance | $ 64,180 | $ 69,264 | $ 71,233 |
BUSINESS AND SUMMARY OF SIGN_10
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Loan Portfolio Credit Quality Indicators (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
600 or Less | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score (in percentage) | 6.50% | 6.90% |
Between 600 and 700 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score (in percentage) | 73.50% | 75.40% |
700 or Greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score (in percentage) | 11.20% | 13.40% |
No Score Identified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score (in percentage) | 8.80% | 4.30% |
BUSINESS AND SUMMARY OF SIGN_11
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Prepaid Expenses | $ 17,768 | $ 18,845 |
Prepaid Lease Merchandise | 9,944 | 10,134 |
Prepaid Software Expenses | 8,624 | 7,022 |
Unamortized Initial Direct Costs on Lease Agreement Originations | 7,192 | 6,016 |
Other Assets | 7,183 | 6,464 |
Prepaid Expenses and Other Assets | $ 50,711 | $ 48,481 |
BUSINESS AND SUMMARY OF SIGN_12
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | |||
Accounts Payable | $ 20,237 | $ 14,386 | |
Accrued Salaries and Benefits | 27,256 | 21,366 | |
Accrued Sales and Personal Property Taxes | 11,684 | 13,517 | |
Income Taxes Payable | 1,153 | 1,287 | |
Uncertain Tax Position | 54,995 | 51,110 | |
Accrued Vendor Rebates | 11,446 | 9,320 | |
Other Accrued Expenses and Liabilities | 24,488 | 24,039 | |
Accounts Payable and Accrued Expenses | $ 151,259 | $ 135,025 | |
Federal Trade Commission Inquiry | |||
Income Tax Contingency [Line Items] | |||
Payments for legal settlements | $ 175,000 |
BUSINESS AND SUMMARY OF SIGN_13
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cybersecurity Incident (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Unusual or Infrequent Item, or Both [Line Items] | ||
Accrued costs | $ 1.2 | $ 0.6 |
Cybersecurity Incident | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Amounts incurred for actual and anticipated costs | 2.8 | |
Accrued costs | $ 0.9 |
BUSINESS AND SUMMARY OF SIGN_14
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to stockholders' equity | $ 591,331 | $ 570,461 | $ 679,408 | $ 986,136 |
Financing receivable, allowance for credit loss | 40,620 | 42,428 | 40,789 | |
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to stockholders' equity | $ 1,293,073 | $ 1,154,235 | $ 1,055,526 | $ 1,236,378 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - Four Technologies, Inc. $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 25, 2021 paymentInstallment | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||
Business acquisition, percentage of voting interests acquired (in percentage) | 100% | ||||
Cash purchase price paid | $ 22.7 | ||||
Number of interest-free installments | paymentInstallment | 4 | ||||
Revenues | $ 5.7 | $ 3.1 | |||
Losses before income taxes | $ 14.4 | $ 24.4 | |||
Business acquisition-related costs | $ 0.6 |
ACQUISITION - Schedule of Recog
ACQUISITION - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 306,212 | $ 296,061 | $ 296,061 |
Four Technologies, Inc. | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Aggregate Purchase Price | 22,694 | ||
Cash and Cash Equivalents | 334 | ||
Loans Receivable | 609 | ||
Property, Plant and Equipment | 198 | ||
Other Intangibles | 5,173 | ||
Prepaid Expenses and Other Assets | 39 | ||
Total Identifiable Assets Acquired | 6,353 | ||
Accounts Payable and Accrued Expenses | (232) | ||
Deferred Income Tax Liability | (838) | ||
Total Liabilities Assumed | (1,070) | ||
Goodwill | 17,411 | ||
Net Assets Acquired | $ 22,694 |
ACQUISITION - Schedule of Finit
ACQUISITION - Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - Four Technologies, Inc. $ in Thousands | Jun. 25, 2021 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 5,173 |
Estimated useful lives of definite-lived intangibles (in years) | 4 years 8 months 12 days |
Acquired Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 4,000 |
Estimated useful lives of definite-lived intangibles (in years) | 5 years |
Trade Name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 587 |
Estimated useful lives of definite-lived intangibles (in years) | 5 years |
Merchant Relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 586 |
Estimated useful lives of definite-lived intangibles (in years) | 2 years |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Indefinite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 296,061 | $ 296,061 | $ 306,212 |
Trade Names and Trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Trade Name | 53,000 | 53,000 | |
Goodwill | 296,061 | 296,061 | |
Indefinite-lived Intangible Assets | $ 349,061 | $ 349,061 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Carrying Value of Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 296,061 | $ 306,212 | ||
Impairment of Goodwill | 0 | 10,151 | $ 0 | |
Changes to Goodwill | 0 | |||
Ending Balance | 296,061 | 296,061 | 306,212 | |
Progressive Leasing | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 288,801 | 288,801 | ||
Impairment of Goodwill | 0 | |||
Changes to Goodwill | 0 | |||
Ending Balance | 288,801 | 288,801 | 288,801 | |
Four Technologies, Inc. | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 7,260 | 17,411 | ||
Impairment of Goodwill | $ 10,200 | 10,151 | ||
Changes to Goodwill | 0 | |||
Ending Balance | $ 7,260 | $ 7,260 | $ 17,411 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 268,723 | $ 268,723 |
Accumulated Amortization | (230,059) | (207,312) |
Net | 38,664 | 61,411 |
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 | 72,550 | 72,550 |
Accumulated Amortization | (68,662) | (61,262) |
Net | 3,888 | 11,288 |
Merchant Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 181,586 | 181,586 |
Accumulated Amortization | (147,104) | (131,874) |
Net | 34,482 | 49,712 |
Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 587 | 587 |
Accumulated Amortization | (293) | (176) |
Net | $ 294 | $ 411 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 22.7 | $ 22.9 | $ 22.3 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 17,889 |
2025 | 16,001 |
2026 | 4,774 |
2027 | 0 |
2028 | $ 0 |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
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 | 2,487 | 2,185 |
Level 3 | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Deferred Compensation Liability | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) $ in Millions | Nov. 26, 2021 USD ($) |
Unsecured Debt | Senior Notes | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |
Aggregate principal amount | $ 600 |
FAIR VALUE MEASUREMENT - Sche_2
FAIR VALUE MEASUREMENT - Schedule of Fair Value for Loan Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 0 | $ 0 |
Loans Receivable, Net | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 559,500 | 481,320 |
Loans Receivable, Net | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Loans Receivable, Net | $ 148,466 | $ 165,690 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 85,530 | $ 76,663 |
Less: Accumulated Depreciation and Amortization | (61,426) | (52,811) |
Property and Equipment, Net | 24,104 | 23,852 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 10,910 | 10,910 |
Fixtures, Equipment and Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 33,771 | 32,722 |
Internal-Use Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 39,792 | 31,163 |
Internal-Use Software - In Development | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 1,057 | $ 1,868 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Internal-use software development cost, accumulated amortization | $ 23.1 | $ 17.8 |
LOANS RECEIVABLE - Schedule of
LOANS RECEIVABLE - Schedule of the Components of Loans Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Receivable, Gross | $ 176,845 | $ 184,601 | |
Unamortized Fees | (9,402) | (11,207) | |
Loans Receivable, Amortized Cost | 167,443 | 173,394 | |
Allowance for Loan Losses | (40,620) | (42,428) | $ (40,789) |
Loans Receivable, Net of Allowances and Unamortized Fees | 126,823 | 130,966 | |
Four Technologies, Inc. | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Receivable, Net of Allowances and Unamortized Fees | $ 13,900 | $ 5,300 |
LOANS RECEIVABLE - Schedule o_2
LOANS RECEIVABLE - Schedule of Loan Portfolio Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 17,755 | |
2022 and Prior | 0 | |
Revolving Loans | 149,688 | |
Loans Receivable, Amortized Cost | 167,443 | $ 173,394 |
2023 | 2,188 | |
2022 and Prior | 2,449 | |
Financing Receivable, Charge-offs, Revolving | 43,569 | |
Notes Receivable Gross Charge-offs | 48,206 | |
600 or Less | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 and Prior | 0 | |
Revolving Loans | 10,909 | |
Loans Receivable, Amortized Cost | 10,909 | |
Between 600 and 700 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 and Prior | 0 | |
Revolving Loans | 120,860 | |
Loans Receivable, Amortized Cost | 120,860 | |
700 or Greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 and Prior | 0 | |
Revolving Loans | 17,919 | |
Loans Receivable, Amortized Cost | 17,919 | |
No Score Identified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 17,755 | |
2022 and Prior | 0 | |
Revolving Loans | 0 | |
Loans Receivable, Amortized Cost | $ 17,755 |
LOANS RECEIVABLE - Schedule o_3
LOANS RECEIVABLE - Schedule of Aging of the Loans Receivable Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans Receivable | 16.50% | 15.20% |
Current Loans Receivable | 83.50% | 84.80% |
Balance of Credit Card Loans on Nonaccrual Status | $ 4,482 | $ 4,436 |
Balance of Loans Receivable 90 or More Days Past Due and Still Accruing Interest and Fees | $ 0 | $ 0 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans Receivable | 7.30% | 6.60% |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans Receivable | 3.80% | 3.50% |
90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans Receivable | 5.40% | 5.10% |
LOANS RECEIVABLE - Schedule o_4
LOANS RECEIVABLE - Schedule of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | $ 42,428 | $ 40,789 |
Provision for Loan Losses | 40,757 | 41,232 |
Charge-offs | (48,206) | (43,979) |
Recoveries | 5,641 | 4,386 |
Ending Balance | $ 40,620 | $ 42,428 |
LEASES - Schedule of Total Leas
LEASES - Schedule of Total Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Total Operating Lease cost: | $ 3,178 | $ 4,239 |
Operating Lease Cost Classified within Operating Expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease cost classified within Operating Expenses | $ 3,178 | $ 4,239 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating Cash Flows for Operating Leases | $ 5,847 | $ 5,913 |
Total Cash paid for amounts included in measurement of Lease Liabilities | 5,847 | 5,913 |
Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities | $ 0 | $ 711 |
LEASES - Schedule of Suppleme_2
LEASES - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Leases [Abstract] | ||
Total Lease Assets | $ 11,875 | $ 9,271 |
Total Lease Liabilities | 21,122 | $ 15,849 |
Operating lease impairment | $ 2,900 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Dec. 31, 2023 |
Utah office | |
Lessee, Lease, Description [Line Items] | |
Expected reduction in office space (percent) | 50% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 5 years |
LEASES - Schedule of Weighted-A
LEASES - Schedule of Weighted-Average Discount Rate and Weighted-Average Remaining Lease Term (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted Average Discount Rate | ||
Operating Leases | 3.50% | 3.40% |
Weighted Average Remaining Lease Term (in years) | ||
Operating Leases | 3 years 1 month 6 days | 3 years 10 months 24 days |
LEASES - Schedule of Operating
LEASES - Schedule of Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2024 | $ 5,675 | |
2025 | 4,513 | |
2026 | 3,911 | |
2027 | 2,672 | |
2028 | 0 | |
Thereafter | 0 | |
Total Undiscounted Cash Flows | 16,771 | |
Less: Interest | (922) | |
Present Value of Lease Liabilities | $ 15,849 | $ 21,122 |
INDEBTEDNESS - Schedule of Comp
INDEBTEDNESS - Schedule of Company's Credit Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 26, 2021 |
Extinguishment of Debt [Line Items] | |||
Long-term debt, gross | $ 600,000 | ||
Less: Unamortized Debt Issuance Costs | (7,735) | $ (9,034) | |
Total | 592,265 | 590,966 | |
Revolving Credit Facility | |||
Extinguishment of Debt [Line Items] | |||
Unamortized debt issuance costs | 900 | 1,300 | |
Secured Debt | Notes | |||
Extinguishment of Debt [Line Items] | |||
Debt interest rate (in percentage) | 6% | ||
Unsecured Debt | |||
Extinguishment of Debt [Line Items] | |||
Long-term debt, gross | 600,000 | 600,000 | $ 600,000 |
Line of Credit | |||
Extinguishment of Debt [Line Items] | |||
Long-term debt, gross | $ 0 | $ 0 |
INDEBTEDNESS - Narrative (Detai
INDEBTEDNESS - Narrative (Details) | 12 Months Ended | |||||
Nov. 26, 2021 USD ($) | Nov. 04, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 24, 2020 USD ($) | |
Extinguishment of Debt [Line Items] | ||||||
Long-term debt, gross | $ 600,000,000 | |||||
Stock repurchased and retired during period, value | $ 428,746,000 | |||||
Debt covenant, adjusted EBITDA plus lease expense to fixed charges (no greater than) | 2.50 | |||||
Debt instrument, covenant, net debt to EBITDA ratio, exceeds | 1.25 | 1.25 | ||||
Unsecured Debt | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term debt, gross | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 | |||
Secured Debt | Debt Instrument, Redemption, Period Three | ||||||
Extinguishment of Debt [Line Items] | ||||||
Debt instrument, redemption price (in percentage) | 101% | |||||
Line of Credit | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term debt, gross | $ 0 | $ 0 | ||||
Line of Credit | Base Rate | ||||||
Extinguishment of Debt [Line Items] | ||||||
Interest rate, basis spread, percentage of Base Rate lower than LIBOR | 1% | |||||
Line of Credit | Minimum | SOFR | ||||||
Extinguishment of Debt [Line Items] | ||||||
Interest rate basis spread (in percentage) | 1.50% | |||||
Line of Credit | Maximum | SOFR | ||||||
Extinguishment of Debt [Line Items] | ||||||
Interest rate basis spread (in percentage) | 2.50% | |||||
Revolving Credit Facility | Line of Credit | ||||||
Extinguishment of Debt [Line Items] | ||||||
Maximum borrowing capacity | $ 350,000,000 | |||||
Debt instrument, fee amount | $ 2,200,000 | |||||
Long-term line of credit | 0 | |||||
Amount available under Revolving Facility | 350,000,000 | |||||
Letters of Credit | Subsidiaries | ||||||
Extinguishment of Debt [Line Items] | ||||||
Maximum borrowing capacity | 20,000,000 | |||||
Common Stock | ||||||
Extinguishment of Debt [Line Items] | ||||||
Stock repurchased and retired during period, value | $ 425,000,000 | $ 4,337,000 | ||||
Notes | Secured Debt | ||||||
Extinguishment of Debt [Line Items] | ||||||
Debt interest rate (in percentage) | 6% | |||||
Notes | Secured Debt | Debt Instrument, Redemption, Period One | ||||||
Extinguishment of Debt [Line Items] | ||||||
Debt instrument, redemption price (in percentage) | 100% | |||||
Debt instrument, issuance, percentage of par value (in percentage) | 100% | |||||
Notes | Secured Debt | Debt Instrument, Redemption, Period Two | ||||||
Extinguishment of Debt [Line Items] | ||||||
Debt instrument, redemption price (in percentage) | 106% | |||||
Debt instrument, redemption price, percentage of principal amount redeemed (in percentage) | 40% | |||||
Swingline Loans on Customary Terms | Subsidiaries | ||||||
Extinguishment of Debt [Line Items] | ||||||
Maximum borrowing capacity | 25,000,000 | |||||
Incremental Facilities | ||||||
Extinguishment of Debt [Line Items] | ||||||
Maximum borrowing capacity | $ 300,000,000 | |||||
Credit Facility, 2014 | ||||||
Extinguishment of Debt [Line Items] | ||||||
Debt covenant, total debt to adjusted EBITDA (no greater than) | 3 | |||||
Credit Facility, 2014 | Revolving Credit Facility | Line of Credit | Minimum | ||||||
Extinguishment of Debt [Line Items] | ||||||
Commitment fee for unused balance amount (in percentage) | 0.20% | |||||
Credit Facility, 2014 | Revolving Credit Facility | Line of Credit | Maximum | ||||||
Extinguishment of Debt [Line Items] | ||||||
Commitment fee for unused balance amount (in percentage) | 0.35% |
INDEBTEDNESS - Schedule of Futu
INDEBTEDNESS - Schedule of Future Maturities of Long Term Debt and Capital Lease Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Maturities of Long-term Debt [Abstract] | |
2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 600,000 |
Total | $ 600,000 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current Income Tax Expense: | |||
Federal | $ 77,412 | $ 46,579 | $ 50,240 |
State | 12,420 | 12,155 | 18,678 |
Current income tax (benefit) expense | 89,832 | 58,734 | 68,918 |
Deferred Income Tax (Benefit) Expense: | |||
Federal | (32,612) | (10,696) | 16,852 |
State | 163 | 1,497 | (1,123) |
Deferred income tax (benefit) expense | (32,449) | (9,199) | 15,729 |
Income Tax Expense | $ 57,383 | $ 49,535 | $ 84,647 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Deferred Income Tax Liabilities and Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Income Tax Liabilities: | ||
Property and Equipment | $ 103 | $ 232 |
Goodwill and Other Intangibles | 657 | 949 |
Investment in Partnership | 131,002 | 161,499 |
Operating Lease Right-of-Use Assets | 173 | 271 |
Total Deferred Income Tax Liabilities | 131,935 | 162,951 |
Deferred Income Tax Assets: | ||
Accrued Liabilities | 9,769 | 10,420 |
Advance Payments | 38 | 33 |
Operating Lease Liabilities | 191 | 382 |
Other, Net | 25,795 | 23,598 |
Total Deferred Income Tax Assets | 35,793 | 34,433 |
Less: Valuation Allowance | (5,715) | (5,788) |
Net Deferred Income Tax Liabilities | $ 101,857 | $ 134,306 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Tax Rate Differs from Statutory United States Federal Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory Rate | 21% | 21% | 21% |
Increases (Decreases) in United States Federal Taxes | |||
State Income Taxes, Net of Federal Income Tax Benefit | 4.90% | 5% | 3.80% |
Non-deductible Goodwill Impairment | 0% | 1.40% | 0% |
Other Permanent Differences | 0.30% | 0.60% | 0% |
Deferred Tax Adjustments | 1.10% | 0.70% | 0% |
Valuation Allowance | 0% | 2.20% | 0% |
Current Uncertain Tax Position Expense | 1.90% | 2.20% | 0.70% |
Shortfall in Stock-based Compensation | 0.40% | 1% | 0% |
Other, Net | (0.40%) | (0.70%) | 0.30% |
Effective Tax Rate | 29.20% | 33.40% | 25.80% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax receivable | $ 32,918 | $ 18,864 | |||
Unrecognized tax benefits | 55,000 | 51,100 | |||
Income tax examination, estimate of possible loss | $ 175,000 | ||||
Additions for tax positions of prior years | $ 44,700 | 81 | 850 | $ 44,816 | |
Unrecognized tax benefits, interest on income taxes expense | 8,600 | 4,500 | |||
Uncertain tax benefits that, if recognized, would affect effective tax rate | 51,200 | 48,100 | |||
Recognized interest and penalties expense related to unrecognized tax benefits | 4,100 | 3,000 | $ 1,500 | ||
Accrued interest and penalties | 8,800 | $ 4,700 | |||
Federal Trade Commission Inquiry | |||||
Operating Loss Carryforwards [Line Items] | |||||
Payments for legal settlements | $ 175,000 | ||||
State Tax | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | 3,500 | ||||
Tax credit carryforward | $ 1,900 |
INCOME TAXES - Schedule of Acti
INCOME TAXES - Schedule of Activity Related to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of activity related to uncertain tax positions: | ||||
Beginning Balance | $ 46,407 | $ 46,750 | $ 2,748 | |
Additions Based on Tax Positions Related to the Current Year | $ 44,700 | 81 | 850 | 44,816 |
Additions for Tax Positions of Prior Years | 0 | 0 | 21 | |
Prior Year Reductions | 0 | 0 | (1) | |
Statute Expirations | (288) | (607) | (692) | |
Settlements | 0 | (586) | (142) | |
Ending Balance | $ 46,200 | $ 46,407 | $ 46,750 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 26, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Accrued legal expense | $ 1.2 | $ 0.6 | |
Non-cancelable commitments | 36.2 | ||
Non-cancelable commitments due in 2024 | 20 | ||
Non-cancelable commitments due in 2025 | 10.3 | ||
Non-cancelable commitments due in 2026 | 3.1 | ||
Non-cancelable commitments due in 2027 | 1.8 | ||
Non-cancelable commitments due in 2028 | 1 | ||
Cybersecurity Insurance | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Retainage deposit | $ 1 | ||
Restricted Stock | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Forfeited/Unearned (in Shares) | (115) | ||
Forfeited/Unearned (in dollars per share) | $ 26.30 | ||
Pennsylvania Attorney General Complaint | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Accrued legal expense | $ 1 | ||
Pennsylvania Attorney General Complaint | Subsequent Event | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Litigation settlement, amount awarded to other party | $ 1 | ||
Unfunded loan commitments | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Remaining credit available | $ 523.9 | $ 513.7 |
RESTRUCTURING EXPENSES - Narrat
RESTRUCTURING EXPENSES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Jan. 25, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring expenses | $ 12,533 | $ 9,001 | $ 21,500 | |
Minimum | Subsequent Event | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs expected to be incurred | $ 18,000 | |||
Maximum | Subsequent Event | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs expected to be incurred | $ 21,000 |
RESTRUCTURING EXPENSES - Schedu
RESTRUCTURING EXPENSES - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | $ 12,533 | $ 9,001 | $ 21,500 |
Progressive Leasing | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 12,533 | 8,343 | |
Vive | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 658 | |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 0 | |
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 2,958 | 5,611 | |
Severance | Progressive Leasing | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 2,958 | 5,611 | |
Severance | Vive | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 0 | |
Severance | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 0 | |
Right-of-Use Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 2,940 | |
Right-of-Use Asset Impairment | Progressive Leasing | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 2,285 | |
Right-of-Use Asset Impairment | Vive | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 655 | |
Right-of-Use Asset Impairment | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 0 | |
Property and Equipment Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 312 | |
Property and Equipment Impairment | Progressive Leasing | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 309 | |
Property and Equipment Impairment | Vive | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 3 | |
Property and Equipment Impairment | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 0 | |
Other Restructuring Activities1 | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 9,575 | 138 | |
Other Restructuring Activities1 | Progressive Leasing | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 9,575 | 138 | |
Other Restructuring Activities1 | Vive | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | 0 | 0 | |
Other Restructuring Activities1 | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expenses | $ 0 | $ 0 |
RESTRUCTURING EXPENSES - Sche_2
RESTRUCTURING EXPENSES - Schedule of Restructuring Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 3,103 | $ 0 |
Charges | 12,533 | 5,749 |
Cash Payments | (10,461) | (2,646) |
Restructuring reserve, ending balance | 5,175 | 3,103 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 3,061 | 0 |
Charges | 2,958 | 5,611 |
Cash Payments | (3,344) | (2,550) |
Restructuring reserve, ending balance | 2,675 | 3,061 |
Other Restructuring Activities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 42 | 0 |
Charges | 9,575 | 138 |
Cash Payments | (7,117) | (96) |
Restructuring reserve, ending balance | $ 2,500 | $ 42 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Feb. 19, 2024 | Nov. 04, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 03, 2021 | |
Class of Stock [Line Items] | ||||||
Treasury stock, shares (in shares) | 38,404,527 | 34,044,102 | ||||
Remaining authorized stock repurchase program, amount | $ 197,700 | |||||
Stock repurchased | $ 140,855 | $ 223,598 | $ 142,358 | |||
Stock repurchased and retired during period, value | $ 428,746 | |||||
Preferred stock, authorized (in shares) | 1,000,000 | |||||
Preferred stock, issued (in shares) | 0 | |||||
Restricted Stock | ||||||
Class of Stock [Line Items] | ||||||
Unvested restricted stock units | 63,000 | |||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Authorized stock repurchase program, amount | $ 500,000 | |||||
Cash dividends declared (in usd per share) | $ 0.12 | |||||
Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Treasury stock, shares (in shares) | 38,404,527 | |||||
Common stock repurchased (in shares) | 4,691,274 | 8,720,223 | 2,937,709 | |||
Stock repurchased | $ 139,600 | $ 223,600 | $ 142,400 | |||
November 2021 Tender Offer | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchased and retired during period, value | $ 425,000 | |||||
Sale of stock, price per share (in dollars per share) | $ 49 | |||||
Common stock repurchased (in shares) | 8,673,469 | |||||
Expenses relating to tender offer | $ 3,700 | |||||
November 2021 Tender Offer | Minimum | ||||||
Class of Stock [Line Items] | ||||||
Sale of stock, price per share (in dollars per share) | $ 44 | |||||
November 2021 Tender Offer | Maximum | ||||||
Class of Stock [Line Items] | ||||||
Sale of stock, price per share (in dollars per share) | $ 50 | |||||
November 2021 Tender Offer And Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Common stock repurchased (in shares) | 11,611,178 | |||||
Stock repurchased and retired during period, value | $ 567,400 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2021 | Apr. 30, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Aggregate number of shares of common stock authorized for issuance under the incentive stock awards plan (in shares) | 10,980,000 | 8,000,000 | |||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 4,039,103 | ||||
Stock-based compensation expense | $ 24.9 | $ 17.5 | $ 21.3 | ||
Tax benefit from exercise of stock options | 6.2 | 5.9 | 5.5 | ||
(Deficit) benefit of income tax expense | $ (0.4) | $ (1.7) | $ 0.2 | ||
Stock options granted (in shares) | 208,000 | 264,000 | 150,000 | ||
Aggregate intrinsic value of options exercised | $ 0.1 | $ 0 | $ 1 | ||
Exercised (in Shares) | (3,000) | ||||
Fair value of options exercised | $ 0.1 | $ 0 | $ 1 | ||
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) | 387,766 | ||||
Unrecognized compensation expense related to non-vested award | $ 24 | ||||
Unrecognized compensation expense related to non-vested award, recognition period (in years) | 1 year 3 months 3 days | ||||
Weighted average grant date fair value (in dollars per share) | $ 18.72 | $ 14.06 | $ 39.62 | ||
Stock options | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Dividend Yield | 0% | 0% | 0% | ||
Restricted Stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock granted (in shares) | 574,000 | 630,000 | 521,000 | ||
Weighted average grant date fair value (in dollars per share) | $ 25.69 | $ 26.05 | $ 44.44 | ||
Total fair value of shares vesting | $ 8.4 | $ 3.9 | $ 7.8 | ||
Performance Share Units | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total fair value of shares vesting | $ 2.2 | $ 4.1 | $ 7.1 | ||
Minimum | Performance Share Units | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Performance percentage | 0% | ||||
Minimum | Performance Share Units | One-year service period | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
Maximum | Performance Share Units | One-year service period | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Maximum | Performance Share Units | Terms and conditions scenario 1 | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Performance percentage | 100% | ||||
Maximum | Performance Share Units | Terms and conditions scenario 2 | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Performance percentage | 200% | ||||
Maximum | Performance Share Units | Terms and conditions scenario 3 | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Performance percentage | 260% | ||||
Maximum | Performance Share Units | Terms and conditions scenario 4 | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Performance percentage | 400% | ||||
2001 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 | Minimum | Employee Stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
2001 Incentive Award Plan | Maximum | Employee Stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Vesting period (in years) | 5 years | ||||
2015 Incentive Award Plan | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Unexercised options lapse period (in years) | 10 years | ||||
2015 Incentive Award Plan | Minimum | Employee Stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
2015 Incentive Award Plan | Minimum | Restricted Stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
2015 Incentive Award Plan | Maximum | Employee Stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
2015 Incentive Award Plan | Maximum | Restricted Stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Vesting period (in years) | 3 years |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Stock Options, Valuation Assumptions (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend Yield | 0% | 0% | 0% |
Expected Volatility | 51.60% | 43% | 44% |
Risk-free Interest Rate | 4.30% | 1.50% | 0.60% |
Expected Term (in years) | 4 years 6 months | 4 years 6 months | 4 years 4 months 24 days |
Weighted-average Fair Value of Stock Options Granted (in dollars per share) | $ 11.66 | $ 10.89 | $ 17.26 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Information about Stock Options Outstanding (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 33.25 | $ 35.55 |
$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 (in shares) | 551,340 | |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 21 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 26.31 | |
Options Exercisable (in shares) | 207,140 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 25.84 | |
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 (in shares) | 94,100 | |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 11 months 8 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 35.06 | |
Options Exercisable (in shares) | 94,100 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 35.06 | |
40.01-50.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 40.01 | |
Exercise price, upper range limit (in dollars per share) | $ 50 | |
Options Outstanding (in shares) | 263,366 | |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 7 months 20 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 46.71 | |
Options Exercisable (in shares) | 224,156 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 46.66 | |
50.01-60.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 50.01 | |
Exercise price, upper range limit (in dollars per share) | $ 60 | |
Options Outstanding (in shares) | 5,304 | |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 4 months 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 53.55 | |
Options Exercisable (in shares) | 3,536 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 53.55 | |
20.00-60.00 | ||
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) | $ 60 | |
Options Outstanding (in shares) | 914,110 | |
Options outstanding, weighted average remaining contractual life (in years) | 6 years 6 months 14 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 33.25 | |
Options Exercisable (in shares) | 528,932 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 36.49 |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Options | |
Beginning Balance (in Shares) | shares | 727 |
Granted - pre-spin (in Shares) | shares | 208 |
Forfeited/Expired (in Shares) | shares | (18) |
Exercised (in Shares) | shares | (3) |
Ending Balance (in Shares) | shares | 914 |
Expected to Vest (in Shares) | shares | 375 |
Exercisable (in Shares) | shares | 529 |
Weighted Average Exercise Price | |
Beginning Balance (in dollars per share) | $ 35.55 |
Granted - pre-spin (in dollars per share) | 24.70 |
Forfeited/Expired (in dollars per share) | 28.16 |
Exercised (in dollars per share) | 29.16 |
Ending Balance (in dollars per share) | 33.25 |
Expected to Vest (in dollars per share) | 28.88 |
Exercisable (in dollars per share) | $ 36.49 |
Weighted Average Remaining Contractual Term (in Years) | |
Outstanding | 6 years 6 months 14 days |
Expected to Vest | 8 years 6 months 25 days |
Exercisable | 5 years 18 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 2,536 |
Expected | $ | 1,429 |
Exercisable | $ | $ 1,050 |
Weighted Average Fair Value | |
Outstanding (in dollars per share) | $ 12.45 |
Expected to Vest (in dollars per share) | 11.98 |
Exercisable (in dollars per share) | $ 12.81 |
STOCK-BASED COMPENSATION - Sc_4
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Activity and Performance Share Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 8.4 | $ 3.9 | $ 7.8 |
Restricted Stock | |||
Beginning Balance (in Shares) | 1,028 | ||
Granted (in Shares) | 574 | ||
Vested (in Shares) | (307) | ||
Ending Balance (in Shares) | 1,180 | 1,028 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 33.84 | ||
Granted (in dollars per share) | 25.69 | ||
Vested (in dollars per share) | 30.53 | ||
Ending Balance (in dollars per share) | $ 31.47 | $ 33.84 | |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 2.2 | $ 4.1 | $ 7.1 |
Restricted Stock | |||
Beginning Balance (in Shares) | 741 | ||
Granted (in Shares) | 358 | ||
Forfeited (in Shares) | (50) | ||
Vested (in Shares) | (82) | ||
Performance Factor Adjustment (in shares) | (217) | ||
Ending Balance (in Shares) | 750 | 741 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 39.86 | ||
Granted (in dollars per share) | 25.57 | ||
Forfeited (in dollars per share) | 26.57 | ||
Vested (in dollars per share) | 40.86 | ||
Performance Factor Adjustment (in dollars per share) | 30.19 | ||
Ending Balance (in dollars per share) | $ 36.38 | $ 39.86 |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
May 09, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, maximum purchases per subscription period, shares (in shares) | 500 | |||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 4,039,103 | |||
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 (in percentage) | 85% | |||
Fixed contribution rate (in percentage) | 10% | |||
Maximum contribution amount | $ 25 | |||
Compensation cost for ESPP | $ 400 | $ 400 | $ 400 | |
Number of shares issued under the ESPP | 67,720 | 81,784 | 38,044 | |
Weighted average grant date fair value (in dollars per share) | $ 18.72 | $ 14.06 | $ 39.62 | |
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 387,766 |
SEGMENTS - Narrative (Details)
SEGMENTS - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 25, 2021 paymentInstallment | Dec. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Operating lease impairment | $ 2,900 | |||||
Goodwill impairment | $ 0 | 10,151 | $ 0 | |||
Progressive Leasing | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill impairment | 0 | |||||
Four Technologies, Inc. | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill impairment | $ 10,200 | 10,151 | ||||
Restructuring Related Activities | Progressive Leasing | ||||||
Segment Reporting Information [Line Items] | ||||||
Severance costs | $ 12,500 | 8,300 | ||||
Amounts incurred for actual and anticipated costs | $ 2,800 | |||||
Restructuring Related Activities | Vive | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating lease impairment | $ 700 | |||||
Four Technologies, Inc. | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of interest-free installments | paymentInstallment | 4 |
SEGMENTS - Schedule of Disaggre
SEGMENTS - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,408,264 | $ 2,597,826 | $ 2,677,920 |
Progressive Leasing | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,333,588 | 2,523,785 | 2,619,005 |
Vive | |||
Segment Reporting Information [Line Items] | |||
Revenues | 68,912 | 70,911 | 58,462 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,764 | 3,130 | 453 |
Lease Revenues and Fees | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,333,588 | 2,523,785 | 2,619,005 |
Lease Revenues and Fees | Progressive Leasing | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,333,588 | 2,523,785 | 2,619,005 |
Lease Revenues and Fees | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Interest and Fees on Loans Receivable | |||
Segment Reporting Information [Line Items] | |||
Revenues | 74,676 | 74,041 | 58,915 |
Interest and Fees on Loans Receivable | Vive | |||
Segment Reporting Information [Line Items] | |||
Revenues | 68,912 | 70,911 | 58,462 |
Interest and Fees on Loans Receivable | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,764 | $ 3,130 | $ 453 |
SEGMENTS - Schedule of Informat
SEGMENTS - Schedule of Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Earnings Before Income Tax Expense: | $ 196,221 | $ 148,244 | $ 328,204 |
Assets: | 1,491,255 | 1,491,909 | |
Depreciation of Lease Merchandise: | 1,576,303 | 1,757,730 | 1,820,010 |
Total Interest Expense, Net | 29,406 | 37,401 | 5,323 |
Progressive Leasing | |||
Segment Reporting Information [Line Items] | |||
Earnings Before Income Tax Expense: | 216,271 | 174,143 | 319,125 |
Vive | |||
Segment Reporting Information [Line Items] | |||
Earnings Before Income Tax Expense: | 4,545 | 9,195 | 20,225 |
Other | |||
Segment Reporting Information [Line Items] | |||
Earnings Before Income Tax Expense: | (24,595) | (35,094) | (11,146) |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets: | 1,491,255 | 1,491,909 | |
Depreciation and Amortization: | 32,032 | 33,851 | 33,258 |
Depreciation of Lease Merchandise: | 1,576,303 | 1,757,730 | 1,820,010 |
Total Interest Expense, Net | 29,406 | 37,401 | 5,323 |
Capital Expenditures | 9,616 | 9,674 | 9,555 |
Operating Segments | Progressive Leasing | |||
Segment Reporting Information [Line Items] | |||
Assets: | 1,286,587 | 1,309,487 | |
Depreciation and Amortization: | 29,165 | 31,374 | 31,762 |
Depreciation of Lease Merchandise: | 1,576,303 | 1,757,730 | 1,820,010 |
Interest Expense: | 38,859 | 38,675 | 5,590 |
Interest Income: | (9,881) | (1,672) | (739) |
Capital Expenditures | 6,160 | 5,835 | 8,101 |
Operating Segments | Vive | |||
Segment Reporting Information [Line Items] | |||
Assets: | 141,028 | 155,846 | |
Depreciation and Amortization: | 745 | 795 | 849 |
Depreciation of Lease Merchandise: | 0 | 0 | 0 |
Interest Expense: | 593 | 398 | 472 |
Interest Income: | 0 | 0 | 0 |
Capital Expenditures | 601 | 926 | 819 |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Assets: | 63,640 | 26,576 | |
Depreciation and Amortization: | 2,122 | 1,682 | 647 |
Depreciation of Lease Merchandise: | 0 | 0 | 0 |
Interest Expense: | 0 | 0 | 0 |
Interest Income: | (165) | 0 | |
Capital Expenditures | 2,855 | 2,913 | 635 |
Intercompany Elimination | |||
Segment Reporting Information [Line Items] | |||
Interest Expense: | (758) | (398) | (472) |
Interest Income: | $ 758 | $ 398 | $ 472 |
COMPENSATION ARRANGEMENTS - Def
COMPENSATION ARRANGEMENTS - Deferred Compensation (Details) - Deferred Compensation Plan - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Deferred compensation plan liability | $ 2,500 | $ 2,200 | ||
Cash surrender value of the policies | $ 2,600 | 1,900 | ||
Employee | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Percentage of receipt of base compensation (up to) | 75% | |||
Employee | Nonqualified Plan | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Maximum contribution per employee (in percentage) | 4% | |||
Maximum annual contributions per employee | $ 13,200 | $ 12,200 | $ 11,600 | |
Vesting period | 3 years | |||
Employee | Nonqualified Plan | First contribution | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Employer matching contribution, maximum (in percentage) | 100% | |||
Maximum contribution per employee (in percentage) | 3% | |||
Employee | Nonqualified Plan | Second contribution | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Employer matching contribution, maximum (in percentage) | 50% | |||
Maximum contribution per employee (in percentage) | 2% | |||
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% |
COMPENSATION ARRANGEMENTS - 401
COMPENSATION ARRANGEMENTS - 401(k) Defined Contribution Plan (Details) - 401(k) Defined Contribution Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution (in percentage) | 75% | ||
Employer matching contribution, maximum (in percentage) | 100% | ||
Employer 401 (k) matching contribution to employee, 50% Maximum | 50% | ||
Initial employer 401(k) matching contribution to employee (in percentage) | 4% | ||
Compensation expense related to 401(k) savings plan | $ 3.2 | $ 3.2 | $ 2.5 |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial employer 401(k) matching contribution to employee (in percentage) | 3% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial employer 401(k) matching contribution to employee (in percentage) | 2% |