Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2024 | Oct. 18, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2024 | |
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, $0.50 Par Value | |
Trading Symbol | PRG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 41,543,406 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001808834 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
ASSETS: | ||
Cash and Cash Equivalents | $ 221,726 | $ 155,416 |
Accounts Receivable (net of allowances of $73,192 in 2024 and $64,180 in 2023) | 67,214 | 67,879 |
Lease Merchandise (net of accumulated depreciation and allowances of $455,691 in 2024 and $423,466 in 2023) | 554,425 | 633,427 |
Loans Receivable (net of allowances and unamortized fees of $52,155 in 2024 and $50,022 in 2023) | 121,568 | 126,823 |
Property and Equipment, Net | 21,404 | 24,104 |
Operating Lease Right-of-Use Assets | 3,753 | 9,271 |
Goodwill | 296,061 | 296,061 |
Other Intangibles, Net | 77,775 | 91,664 |
Income Tax Receivable | 10,921 | 32,918 |
Deferred Income Tax Assets | 2,368 | 2,981 |
Prepaid Expenses and Other Assets | 69,125 | 50,711 |
Total Assets | 1,446,340 | 1,491,255 |
LIABILITIES & SHAREHOLDERS’ EQUITY: | ||
Accounts Payable and Accrued Expenses | 95,138 | 151,259 |
Deferred Income Tax Liabilities | 81,716 | 104,838 |
Customer Deposits and Advance Payments | 33,200 | 35,713 |
Operating Lease Liabilities | 12,241 | 15,849 |
Debt | 593,238 | 592,265 |
Total Liabilities | 815,533 | 899,924 |
Commitments and Contingencies (Note 4) | ||
SHAREHOLDERS' EQUITY: | ||
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at September 30, 2024 and December 31, 2023; Shares Issued: 82,078,654 at September 30, 2024 and December 31, 2023 | 41,039 | 41,039 |
Additional Paid-in Capital | 354,141 | 352,421 |
Retained Earnings | 1,416,961 | 1,293,073 |
Shareholders' Equity, before treasury shares at cost | 1,812,141 | 1,686,533 |
Less: Treasury Shares at Cost | ||
Common Stock: 40,535,248 Shares at September 30, 2024 and 38,404,527 at December 31, 2023 | (1,181,334) | (1,095,202) |
Total Shareholders’ Equity | 630,807 | 591,331 |
Total Liabilities & Shareholders’ Equity | $ 1,446,340 | $ 1,491,255 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 73,192 | $ 64,180 |
Lease merchandise, accumulated depreciation and allowances | 455,691 | 423,466 |
Loans receivable, allowances and unamortized fees | $ 52,155 | $ 50,022 |
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) | 40,535,248 | 38,404,527 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
REVENUES: | ||||
Revenues | $ 606,145 | $ 582,877 | $ 1,840,176 | $ 1,830,863 |
COSTS AND EXPENSES: | ||||
Depreciation of Lease Merchandise | 401,070 | 381,844 | 1,217,440 | 1,202,157 |
Provision for Lease Merchandise Write-offs | 44,736 | 36,966 | 131,660 | 116,295 |
Operating Expenses | 111,108 | 109,183 | 346,350 | 322,152 |
Costs and expenses | 556,914 | 527,993 | 1,695,450 | 1,640,604 |
OPERATING PROFIT | 49,231 | 54,884 | 144,726 | 190,259 |
Interest Expense, Net | (7,384) | (6,775) | (22,973) | (22,549) |
EARNINGS BEFORE INCOME TAX (BENEFIT) EXPENSE | 41,847 | 48,109 | 121,753 | 167,710 |
INCOME TAX (BENEFIT) EXPENSE | (42,115) | 13,097 | (17,949) | 47,447 |
NET EARNINGS | $ 83,962 | $ 35,012 | $ 139,702 | $ 120,263 |
EARNINGS PER SHARE | ||||
Basic (in dollars per share) | $ 1.99 | $ 0.77 | $ 3.25 | $ 2.58 |
Assuming dilution (in dollars per share) | 1.94 | 0.76 | 3.19 | 2.56 |
CASH DIVIDENDS DECLARED PER SHARE: | ||||
Common Stock (in dollars per share) | $ 0.12 | $ 0 | $ 0.36 | $ 0 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic (in shares) | 42,264 | 45,515 | 42,969 | 46,606 |
Assuming dilution (in shares) | 43,169 | 46,133 | 43,804 | 47,048 |
Lease Revenues and Fees | ||||
REVENUES: | ||||
Revenues | $ 582,551 | $ 564,183 | $ 1,773,617 | $ 1,776,104 |
Interest and Fees on Loans Receivable | ||||
REVENUES: | ||||
Revenues | $ 23,594 | $ 18,694 | $ 66,559 | $ 54,759 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
OPERATING ACTIVITIES: | ||
Net Earnings | $ 139,702 | $ 120,263 |
Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities: | ||
Depreciation of Lease Merchandise | 1,217,440 | 1,202,157 |
Other Depreciation and Amortization | 20,780 | 23,876 |
Provisions for Accounts Receivable and Loan Losses | 279,291 | 253,217 |
Stock-Based Compensation | 21,588 | 19,081 |
Deferred Income Taxes | (24,530) | (32,337) |
Impairment of Assets | 6,018 | 0 |
Income Tax Benefit from Reversal of Uncertain Tax Position Liabilities | (51,443) | 0 |
Non-Cash Lease Expense | (2,605) | (2,065) |
Other Changes, Net | (1,255) | (4,397) |
Changes in Operating Assets and Liabilities: | ||
Additions to Lease Merchandise | (1,273,535) | (1,195,051) |
Book Value of Lease Merchandise Sold or Disposed | 135,096 | 119,711 |
Accounts Receivable | (240,409) | (216,469) |
Prepaid Expenses and Other Assets | (18,865) | 2,304 |
Income Tax Receivable and Payable | 26,251 | (21) |
Accounts Payable and Accrued Expenses | (7,998) | 8,735 |
Customer Deposits and Advance Payments | (2,513) | (6,463) |
Cash Provided by Operating Activities | 223,013 | 292,541 |
INVESTING ACTIVITIES: | ||
Investments in Loans Receivable | (282,039) | (138,922) |
Proceeds from Loans Receivable | 252,268 | 127,079 |
Outflows on Purchases of Property and Equipment | (6,037) | (6,952) |
Proceeds from Property and Equipment | 119 | 30 |
Other Proceeds | 41 | 0 |
Cash Used in Investing Activities | (35,648) | (18,765) |
FINANCING ACTIVITIES: | ||
Dividends Paid | (15,423) | 0 |
Acquisition of Treasury Stock | (98,187) | (108,276) |
Issuance of Stock Under Stock Option and Employee Purchase Plans | 855 | 695 |
Cash Paid for Shares Withheld for Employee Taxes | (8,300) | (3,260) |
Debt Issuance Costs | 0 | (29) |
Cash Used in Financing Activities | (121,055) | (110,870) |
Increase in Cash and Cash Equivalents | 66,310 | 162,906 |
Cash and Cash Equivalents at Beginning of Period | 155,416 | 131,880 |
Cash and Cash Equivalents at End of Period | 221,726 | 294,786 |
Net Cash Paid During the Period: | ||
Interest | 18,695 | 18,768 |
Income Taxes | $ 31,809 | $ 76,817 |
BASIS AND SUMMARY OF SIGNIFICAN
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS 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. PROG Holdings’ ecosystem of financial technology offerings also includes Four Technologies, Inc. ("Four"), a 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 three and nine month periods ended September 30, 2024 as its financial results are not significant to the Company's condensed consolidated financial results. Basis of Presentation The preparation of the Company's condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information requires management to make estimates and assumptions that affect the amounts reported in these condensed 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, and/or the possibility of a recession in the United States. The accompanying unaudited condensed consolidated financial statements do not include all information required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report") filed with the United States Securities and Exchange Commission on February 21, 2024. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of operating results for the full year. Principles of Consolidation The condensed 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. Accounting Policies and Estimates See Note 1 to the consolidated financial statements in the 2023 Annual Report for an expanded discussion of accounting policies and estimates. 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, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), performance share units ("PSUs") and awards issuable under the Company's employee stock purchase plan ("ESPP") (collectively, "share-based awards") as determined under the treasury stock method. The following table shows the calculation of dilutive share-based awards: Three Months Ended September 30, Nine Months Ended September 30, (Shares In Thousands) 2024 2023 2024 2023 Weighted Average Shares Outstanding 42,264 45,515 42,969 46,606 Dilutive Effect of Share-Based Awards 905 618 835 442 Weighted Average Shares Outstanding Assuming Dilution 43,169 46,133 43,804 47,048 Approximately 273,000 and 522,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the three and nine months ended September 30, 2024, respectively, as the awards would have been anti-dilutive for the periods presented. Approximately 614,000 and 880,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the three and nine months ended September 30, 2023, respectively, as the awards would have been anti-dilutive for the periods presented. 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 condensed 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 condensed 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 condensed 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 condensed 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 condensed 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 condensed consolidated statements of earnings. Accounts Receivable Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and amounted to $67.2 million and $67.9 million, net of allowances, as of September 30, 2024 and December 31, 2023, respectively. The Company maintains an accounts receivable allowance, which primarily relates to its Progressive Leasing operations. 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, and/or unemployment rates on our business, a high level of estimation was involved in determining the allowance as of September 30, 2024. 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 condensed 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. The following table shows the components of the accounts receivable allowance: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Beginning Balance $ 64,682 $ 65,544 $ 64,180 $ 69,264 Net Book Value of Accounts Written Off (89,050) (87,622) (260,885) (256,820) Recoveries 8,224 8,654 28,823 30,400 Accounts Receivable Provision 89,336 81,459 241,074 225,191 Ending Balance $ 73,192 $ 68,035 $ 73,192 $ 68,035 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, and/or unemployment rates on our business, a high level of estimation was involved in determining the allowance as of September 30, 2024. Actual lease merchandise write-offs may differ materially from the allowance as of September 30, 2024. 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 condensed consolidated balance sheets: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Beginning Balance $ 48,668 $ 49,479 $ 44,180 $ 47,118 Net Book Value of Merchandise Written off (44,533) (42,138) (130,526) (122,721) Recoveries 2,605 1,788 6,162 5,403 Provision for Write-offs 44,736 36,966 131,660 116,295 Ending Balance $ 51,476 $ 46,095 $ 51,476 $ 46,095 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 $9.0 million and $25.7 million for such additional consideration to POS partners during the three and nine months ended September 30, 2024, respectively, compared to $6.3 million and $20.7 million during the three and nine months ended September 30, 2023. Expenses related to additional consideration provided to POS partners are classified within operating expenses in the condensed consolidated statements of earnings. 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 $11.6 million and $13.9 million of outstanding receivables from customers of Four as of September 30, 2024 and December 31, 2023, 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. The Company may also consider other qualitative factors in estimating the allowance, as necessary. For the purposes of determining the allowance as of September 30, 2024, management considered qualitative factors such as the macroeconomic conditions associated with the impacts of stabilizing inflation and unemployment rates. The allowance for loan losses is maintained at a level considered appropriate to cover expected future losses of outstanding principal, interest and fees associated with 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, 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 primarily upon the applicant's credit rating and other factors. Four extends or declines credit on an individual transaction basis using its proprietary decisioning platform, without using customer credit ratings. Four's credit risk exposure is limited by smaller transaction values and a short loan duration. Below is a summary of credit quality indicators of the Company's loan portfolio as of September 30, 2024 and December 31, 2023 by FICO score as determined at the time of loan origination: FICO Score Category September 30, 2024 December 31, 2023 600 or Less 8.3 % 6.5 % Between 600 and 700 68.8 % 73.5 % 700 or Greater 11.7 % 11.2 % No Score Identified 11.2 % 8.8 % Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: (In Thousands) September 30, 2024 December 31, 2023 Prepaid Expenses $ 38,359 $ 17,768 Prepaid Lease Merchandise 7,892 9,944 Prepaid Software Expenses 9,995 8,624 Unamortized Initial Direct Costs on Lease Agreement Originations 5,945 7,192 Other Assets 6,934 7,183 Prepaid Expenses and Other Assets $ 69,125 $ 50,711 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 condensed consolidated statements of earnings. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: (In Thousands) September 30, 2024 December 31, 2023 Accounts Payable $ 11,842 $ 20,237 Accrued Salaries and Benefits 21,393 27,256 Accrued Sales and Personal Property Taxes 12,726 11,684 Income Taxes Payable 5,407 1,153 Uncertain Tax Positions 1,074 54,995 Accrued Vendor Rebates 7,605 11,446 Other Accrued Expenses and Liabilities 35,091 24,488 Accounts Payable and Accrued Expenses $ 95,138 $ 151,259 Uncertain Tax Positions In December 2019, Progressive Leasing reached an agreement in principle with the staff of the Federal Trade Commission ("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 was a reasonable basis for deducting the settlement amount on the return. However, the tax position did not meet the more-likely-than-not recognition standard and no tax benefit was recognized. As a result, the Company reclassified $44.8 million from taxes payable, previously recognized in December 2019, to an uncertain tax position as of December 31, 2021. The Company's policy is to recognize potential interest and penalties related to uncertain tax positions as a component of income tax (benefit) expense, and recognized accrued interest related to this uncertain tax position accordingly. As of December 31, 2023, the amount of accrued interest related to the FTC settlement was $8.6 million. During September 2024, the statute of limitations for the taxing authority to examine the uncertain tax position relating to the FTC settlement expired. The Company therefore recognized a net income tax benefit of $53.6 million relating to the uncertain tax position reversal during the three months ended September 30, 2024, which included the reversal of the associated accrued interest. As a result, the Company had no accrued interest related to the FTC settlement as of September 30, 2024. The Company recognized a benefit of $8.6 million related to interest associated with the uncertain tax position during the nine months ended September 30, 2024, compared to expense of $3.0 million during the nine months ended September 30, 2023. The following table summarizes the activity related to the Company's uncertain tax positions for the periods presented (does not include accrued interest): Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Beginning Balance $ 45,836 $ 46,407 $ 46,200 $ 46,407 Additions for Tax Positions Related to the Current Year — — — — Additions for Tax Positions Related to Prior Years — — — — Prior Year Reductions — — (3) — Statute of Limitation Expirations (44,816) — (44,816) — Settlements — — (361) — Ending Balance $ 1,020 $ 46,407 $ 1,020 $ 46,407 Debt On November 24, 2020, the Company entered into a credit agreement with a consortium of lenders providing for a $350.0 million senior revolving credit facility (the "Revolving Facility"), under which revolving borrowings became available at the completion of the separation and distribution transaction through which the Company's historical Aaron's Business segment was spun-off into a separate company, 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. If the Company's total net debt to EBITDA ratio as defined by the Revolving Facility exceeds 1.25, the Revolving Facility becomes fully secured for the remaining duration of the Revolving Facility term. As of June 30, 2022, the Company exceeded the 1.25 total net debt to EBITDA ratio and the Revolving Facility became fully secured. The Company had no outstanding borrowings and $350.0 million total available credit under the Revolving Facility as of September 30, 2024 and December 31, 2023. On November 26, 2021, the Company entered into an indenture in connection with an offering of $600 million aggregate principal amount of its 6.00% senior unsecured notes due 2029 (the "Senior Notes"). The Senior Notes were issued at 100% 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 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 as discussed in Note 12 to the consolidated financial statements in the 2023 Annual Report. Any remaining proceeds were used to repurchase additional shares. At September 30, 2024, the Company was in compliance with all covenants related to its outstanding debt. See Note 8 to the consolidated financial statements in the 2023 Annual Report for further information regarding the Company's indebtedness. 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 as of September 30, 2024. 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. 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 or circumstances that occurred during the nine months ended September 30, 2024 that would more likely than not reduce the fair value of Progressive Leasing or Four below their carrying amounts. Stock-Based Compensation During the nine months ended September 30, 2024, the Company issued 629,057 restricted stock units and 338,995 performance share units to certain employees, which vest over one one Stock-based Compensation . Shareholders' Equity Changes in shareholders' equity for the nine months ended September 30, 2024 and 2023 are as follows: Treasury Stock Common Stock Additional Retained Earnings Total Shareholders’ Equity (In Thousands) Shares Amount Shares Amount Balance, December 31, 2023 (38,405) $ (1,095,202) 82,079 $ 41,039 $ 352,421 $ 1,293,073 $ 591,331 Cash Dividends, $0.12 per share — — — — — (5,337) (5,337) Stock-Based Compensation — — — — 6,689 — 6,689 Reissued Shares 281 7,391 — — (12,460) — (5,069) Repurchased Shares (781) (24,490) — — — — (24,490) Net Earnings — — — — — 21,966 21,966 Balance, March 31, 2024 (38,905) $ (1,112,301) 82,079 $ 41,039 $ 346,650 $ 1,309,702 $ 585,090 Cash Dividends, $0.12 per share — — — — — (5,275) (5,275) Stock-Based Compensation — — — — 7,335 — 7,335 Reissued Shares 172 4,438 — — (6,433) — (1,995) Repurchased Shares (1,030) (37,076) — — — — (37,076) Net Earnings — — — — — 33,774 33,774 Balance, June 30, 2024 (39,763) $ (1,144,939) 82,079 $ 41,039 $ 347,552 $ 1,338,201 $ 581,853 Cash Dividends, $0.12 per share — — — — — (5,202) (5,202) Stock-Based Compensation — — — — 7,934 — 7,934 Reissued Shares 38 964 — — (1,345) — (381) Repurchased Shares (810) (37,359) — — — — (37,359) Net Earnings — — — — — 83,962 83,962 Balance, September 30, 2024 (40,535) $ (1,181,334) 82,079 $ 41,039 $ 354,141 $ 1,416,961 $ 630,807 Treasury Stock Common Stock Additional Retained Earnings Total Shareholders’ Equity (In Thousands) Shares Amount Shares Amount Balance, December 31, 2022 (34,044) $ (963,627) 82,079 $ 41,039 $ 338,814 $ 1,154,235 $ 570,461 Stock-Based Compensation — — — — 5,460 — 5,460 Reissued Shares 166 4,778 — — (7,171) — (2,393) Repurchased Shares (1,459) (36,769) — — — — (36,769) Net Earnings — — — — — 48,033 48,033 Balance, March 31, 2023 (35,337) $ (995,618) 82,079 $ 41,039 $ 337,103 $ 1,202,268 $ 584,792 Stock-Based Compensation — — — — 6,886 — 6,886 Reissued Shares 52 1,439 — — (973) — 466 Repurchased Shares (1,083) (35,713) — — — — (35,713) Net Earnings — — — — — 37,218 37,218 Balance, June 30, 2023 (36,368) $ (1,029,892) 82,079 $ 41,039 $ 343,016 $ 1,239,486 $ 593,649 Stock-Based Compensation — — — — 6,889 — 6,889 Reissued Shares 57 1,462 — — (2,099) — (637) Repurchased Shares (1,045) (36,776) — — — — (36,776) Net Earnings — — — — — 35,012 35,012 Balance, September 30, 2023 (37,356) $ (1,065,206) 82,079 $ 41,039 $ 347,806 $ 1,274,498 $ 598,137 Cybersecurity Incident During the third quarter of 2023, Progressive Leasing experienced a cybersecurity incident affecting certain data and IT systems of Progressive Leasing. Promptly after detecting the inc |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2024 | |
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: (In Thousands) September 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ 2,940 $ — $ — $ 2,487 $ — The Company maintains the PROG Holdings, Inc. Deferred Compensation Plan, 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 condensed 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 condensed 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 condensed 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 in 2029. The Senior Notes are carried at amortized cost in the condensed 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: (In Thousands) September 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Senior Notes $ — $ 592,140 $ — $ — $ 559,500 $ — Loans Receivable, Net $ — $ — $ 148,813 $ — $ — $ 148,466 |
LOANS RECEIVABLE
LOANS RECEIVABLE | 9 Months Ended |
Sep. 30, 2024 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | LOANS RECEIVABLE The following is a summary of the Company’s loans receivable, net: (In Thousands) September 30, 2024 December 31, 2023 Loans Receivable, Gross $ 173,723 $ 176,845 Unamortized Fees (8,914) (9,402) Loans Receivable, Amortized Cost 164,809 167,443 Allowance for Loan Losses (43,241) (40,620) Loans Receivable, Net of Allowances and Unamortized Fees 1 $ 121,568 $ 126,823 1 Loans Receivable, Net of Allowances and Unamortized Fees, attributable to Four was $11.6 million and $13.9 million as of September 30, 2024 and December 31, 2023, respectively. The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: As of September 30, 2024 (In Thousands) 2024 2023 2022 and Prior Revolving Loans Total FICO Score Category: 600 or Less $ — $ — $ — $ 13,874 $ 13,874 Between 600 and 700 — — — 113,448 113,448 700 or Greater — — — 18,638 18,638 No Score Identified 18,849 — — — 18,849 Total Amortized Cost $ 18,849 $ — $ — $ 145,960 $ 164,809 Gross Charge-offs by Origination Year for the Nine Months Ended September 30, 2024 $ 6,836 $ 3,018 $ — $ 31,316 $ 41,170 Included in the table below is an aging of the loans receivable, gross balance: (Dollar Amounts in Thousands) Aging Category September 30, 2024 December 31, 2023 30-59 Days Past Due 7.4 % 7.3 % 60-89 Days Past Due 4.1 % 3.8 % 90 or More Days Past Due 5.5 % 5.4 % Past Due Loans Receivable 17.0 % 16.5 % Current Loans Receivable 83.0 % 83.5 % Balance of Credit Card Loans on Nonaccrual Status $ 4,462 $ 4,482 Balance of Loans Receivable Greater than 90 Days Past Due and Still Accruing Interest and Fees $ — $ — The table below presents the components of the allowance for loan losses: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Beginning Balance $ 40,242 $ 38,946 $ 40,620 $ 42,428 Provision for Loan Losses 15,133 10,521 38,217 28,026 Charge-offs (13,992) (10,968) (41,170) (34,588) Recoveries 1,858 1,690 5,574 4,323 Ending Balance $ 43,241 $ 40,189 $ 43,241 $ 40,189 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal and Regulatory 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 September 30, 2024 and December 31, 2023, the Company had accrued $0.1 million and $1.2 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 condensed 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 September 30, 2024, 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. In April 2020, Progressive Leasing entered into a settlement (the "FTC Settlement") with the Federal Trade Commission ("FTC") to resolve allegations by the FTC that certain of Progressive Leasing’s advertising and marketing practices violated the FTC Act. Progressive Leasing did not admit any violations of the FTC Act or any other laws in connection with the FTC Settlement. Under the terms of the FTC Settlement, Progressive Leasing paid $175 million to the FTC and agreed to enhance certain of its compliance-related activities, including augmenting disclosures to its customers and expanding its POS partner monitoring programs. Progressive Leasing further agreed to submit compliance reports or produce other requested documents and information to the FTC upon written request by the FTC. During the third quarter of 2024, Progressive Leasing received a written request from the FTC to evidence Progressive Leasing’s compliance with the FTC Settlement by providing the FTC with information and documents, including those related to customer complaints and advertising and marketing materials. The FTC’s request is not a civil investigative demand. The Company is fully cooperating with the FTC in responding to the FTC’s request for information and documents. Litigation Matters During the third quarter of 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. 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. All of these lawsuits have been consolidated into a single action in the United States District Court for the District of Utah (the "District Court"). The plaintiffs filed a consolidated complaint on April 19, 2024. On June 24, 2024, Progressive Leasing filed a motion to dismiss the complaint. Progressive Leasing 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 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 $498.7 million and $523.9 million as of September 30, 2024 and December 31, 2023, 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 | 9 Months Ended |
Sep. 30, 2024 | |
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 in 2024. Restructuring expenses were immaterial and $20.9 million during the three and nine months ended September 30, 2024, respectively, resulting in aggregate expenses of $42.4 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 and a third party service and marketing agreement, employee severance within Progressive Leasing, and operating lease right-of-use ("ROU") 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 space. 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. The following tables summarize restructuring charges recorded within operating expenses in the condensed consolidated statements of earnings for the three and nine months ended September 30, 2024 and 2023: Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Severance $ — $ — $ — $ — $ 260 $ — $ — $ 260 Other Restructuring Activities 6 — — 6 (22) — — (22) Total Restructuring Expenses $ 6 $ — $ — $ 6 $ 238 $ — $ — $ 238 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Severance $ 4,336 $ — $ 628 $ 4,964 $ 1,983 $ — $ — $ 1,983 Right-of-Use Asset Impairment 1 4,515 — — 4,515 — — — — Property and Equipment Impairment 1,503 — — 1,503 — — — — Early Contract Termination Costs 7,750 — 2,000 9,750 — — — — Other Restructuring Activities 174 — — 174 (25) — — (25) Total Restructuring Expenses $ 18,278 $ — $ 2,628 $ 20,906 $ 1,958 $ — $ — $ 1,958 1 To determine the amount of impairment for vacated office space, the fair value of the ROU asset is calculated based on the present value of the estimated net cash flows related to the ROU asset. The following table summarizes the accrual and payment activity related to the restructuring program for the nine months ended September 30, 2024 and 2023: (In Thousands) Severance Early Contract Termination Costs Other Restructuring Activities Total Balance at December 31, 2023 $ 2,675 $ 2,500 $ — $ 5,175 Charges 4,964 9,750 174 14,888 Cash Payments (6,564) (10,650) (174) (17,388) Balance at September 30, 2024 $ 1,075 $ 1,600 $ — $ 2,675 (In Thousands) Severance Other Restructuring Activities Total Balance at December 31, 2022 $ 3,061 $ 42 $ 3,103 Charges 1,983 (25) 1,958 Cash Payments (2,657) (4) (2,661) Balance at September 30, 2023 $ 2,387 $ 13 $ 2,400 |
SEGMENTS
SEGMENTS | 9 Months Ended |
Sep. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS As of September 30, 2024, 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 weekly, bi-weekly, semi-monthly and monthly 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. Four is an innovative BNPL company that allows shoppers to pay for merchandise through four interest-free installments. Four is not a reportable segment for the three and nine month periods ended September 30, 2024 and 2023 as its financial results are not significant to the Company's condensed consolidated financial results. Disaggregated Revenue The following table presents revenue by source and by segment for the three months ended September 30, 2024 and 2023. The revenues within Other are primarily comprised of the operating activities of Four. Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 582,551 $ — $ — $ 582,551 $ 564,183 $ — $ — $ 564,183 Interest and Fees on Loans Receivable 2 — 16,000 7,594 23,594 — 17,547 1,147 18,694 Total $ 582,551 $ 16,000 $ 7,594 $ 606,145 $ 564,183 $ 17,547 $ 1,147 $ 582,877 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables . Also included within Interest and Fees on Loans Receivable for the three months ended September 30, 2024 is $2.7 million of subscription fee and interchange revenue within the scope of ASC 606, Revenue from Contracts with Customers . The following table presents revenue by source and by segment for the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 1,773,617 $ — $ — $ 1,773,617 $ 1,776,104 $ — $ — $ 1,776,104 Interest and Fees on Loans Receivable 2 — 47,471 19,088 66,559 — 51,887 2,872 54,759 Total $ 1,773,617 $ 47,471 $ 19,088 $ 1,840,176 $ 1,776,104 $ 51,887 $ 2,872 $ 1,830,863 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables . Also included within Interest and Fees on Loans Receivable for the nine months ended September 30, 2024 is $6.4 million of subscription fee and interchange revenue within the scope of ASC 606, Revenue from Contracts with Customers . 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 (benefit) expense. The Company determines earnings (loss) before income tax (benefit) expense for all reportable segments in accordance with U.S. GAAP. The Company incurred various corporate overhead expenses for certain executive management, finance, treasury, tax, audit, legal, risk management, and other overhead functions during the three and nine months ended September 30, 2024 and 2023. 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 three and nine months ended September 30, 2024 and 2023. The following is a summary of earnings before income tax (benefit) expense by segment. The loss before income taxes within Other is primarily comprised of the operating activities of certain other strategic initiatives. Three Months Ended September 30, (In Thousands) 2024 2023 Earnings Before Income Tax (Benefit) Expense: Progressive Leasing $ 47,177 $ 53,941 Vive (1,441) 565 Other (3,889) (6,397) Total Earnings Before Income Tax (Benefit) Expense $ 41,847 $ 48,109 Nine Months Ended September 30, (In Thousands) 2024 2023 Earnings Before Income Tax (Benefit) Expense: Progressive Leasing $ 136,596 $ 180,414 Vive 108 4,486 Other (14,951) (17,190) Total Earnings Before Income Tax (Benefit) Expense $ 121,753 $ 167,710 During the nine months ended September 30, 2024 and 2023, Progressive Leasing recorded $18.3 million and $2.0 million, respectively, of expenses associated with the restructuring activities which reduced earnings before income tax (benefit) expense. These expenses in 2024 were primarily comprised of early contract termination costs, operating lease right-of-use asset and other fixed asset impairment charges related to a reduction of office space, and employee severance costs. Restructuring expenses in 2023 were primarily comprised of employee severance costs. The following is a summary of total assets by segment. The amount within Other is primarily comprised of the assets of Four. (In Thousands) September 30, 2024 December 31, 2023 Assets: Progressive Leasing $ 1,253,717 $ 1,286,587 Vive 137,410 141,028 Other 55,213 63,640 Total Assets $ 1,446,340 $ 1,491,255 The following table presents additional segment profit or loss information for the three and nine months ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Depreciation and Amortization: Progressive Leasing $ 5,390 $ 7,261 $ 18,281 $ 21,803 Vive 155 184 487 534 Other 720 536 2,012 1,539 Total Depreciation and Amortization 1 $ 6,265 $ 7,981 $ 20,780 $ 23,876 Depreciation of Lease Merchandise: Progressive Leasing $ 401,070 $ 381,844 $ 1,217,440 $ 1,202,157 Vive — — — — Other — — — — Total Depreciation of Lease Merchandise $ 401,070 $ 381,844 $ 1,217,440 $ 1,202,157 Interest Expense, Net: Interest Expense: Progressive Leasing $ 9,976 $ 9,745 $ 29,958 $ 29,115 Vive — 112 — 569 Other — — — — Intercompany Elimination (316) (195) (949) (652) Interest Income: Progressive Leasing $ (2,276) $ (2,999) $ (6,036) $ (7,052) Vive — — — — Other (316) (83) (949) (83) Intercompany Elimination 316 195 949 652 Total Interest Expense, Net $ 7,384 $ 6,775 $ 22,973 $ 22,549 Capital Expenditures 2 : Progressive Leasing $ 1,330 $ 1,804 $ 3,985 $ 4,402 Vive 77 127 245 451 Other 631 633 1,807 2,099 Total Capital Expenditures $ 2,038 $ 2,564 $ 6,037 $ 6,952 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Pay vs Performance Disclosure | ||||||||
Net Earnings | $ 83,962 | $ 33,774 | $ 21,966 | $ 35,012 | $ 37,218 | $ 48,033 | $ 139,702 | $ 120,263 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2024 | |
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 |
BASIS AND SUMMARY OF SIGNIFIC_2
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2024 | |
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. PROG Holdings’ ecosystem of financial technology offerings also includes Four Technologies, Inc. ("Four"), a 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 three and nine month periods ended September 30, 2024 as its financial results are not significant to the Company's condensed consolidated financial results. |
Basis of Presentation | Basis of Presentation The preparation of the Company's condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information requires management to make estimates and assumptions that affect the amounts reported in these condensed 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, and/or the possibility of a recession in the United States. The accompanying unaudited condensed consolidated financial statements do not include all information required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report") filed with the United States Securities and Exchange Commission on February 21, 2024. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of operating results for the full year. |
Principles of Consolidation | Principles of Consolidation The condensed 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. |
Earnings Per Share | Earnings Per Share |
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 condensed 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 condensed 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 condensed 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 condensed 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 condensed 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 condensed consolidated statements of earnings. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and amounted to $67.2 million and $67.9 million, net of allowances, as of September 30, 2024 and December 31, 2023, respectively. The Company maintains an accounts receivable allowance, which primarily relates to its Progressive Leasing operations. 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, and/or unemployment rates on our business, a high level of estimation was involved in determining the allowance as of September 30, 2024. 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 condensed 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. |
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. 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, and/or unemployment rates on our business, a high level of estimation was involved in determining the allowance as of September 30, 2024. Actual lease merchandise write-offs may differ materially from the allowance as of September 30, 2024. For customer lease agreements that are past due, the Company's policy is to write off lease merchandise after 120 days. |
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 $11.6 million and $13.9 million of outstanding receivables from customers of Four as of September 30, 2024 and December 31, 2023, 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. The Company may also consider other qualitative factors in estimating the allowance, as necessary. For the purposes of determining the allowance as of September 30, 2024, management considered qualitative factors such as the macroeconomic conditions associated with the impacts of stabilizing inflation and unemployment rates. The allowance for loan losses is maintained at a level considered appropriate to cover expected future losses of outstanding principal, interest and fees associated with 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, 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. |
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 as of September 30, 2024. 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. 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 or circumstances that occurred during the nine months ended September 30, 2024 that would more likely than not reduce the fair value of Progressive Leasing or Four below their carrying amounts. |
Stock-Based Compensation | Stock-Based Compensation During the nine months ended September 30, 2024, the Company issued 629,057 restricted stock units and 338,995 performance share units to certain employees, which vest over one one Stock-based Compensation . |
Cybersecurity Incident | Cybersecurity Incident During the third quarter of 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. During the nine months ended September 30, 2024, the Company incurred $0.3 million for costs related to the cybersecurity incident, net of insurance proceeds, resulting in aggregate expenses of $3.2 million since the incident occurred. 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. Those costs are included within professional services expense as a component of operating expenses in the condensed consolidated statements of earnings. At September 30, 2024, the Company had $0.4 million accrued for costs related to the cybersecurity incident, which are included in accounts payable and accrued expenses in the condensed 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 election, 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 In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2023-07, " Segment Reporting (Topic 280): Improvements to Reporting Segment Disclosures " ("ASU 2023-07"). ASU 2023-07 requires expanded disclosures, including the disclosure of significant segment expenses and other segment items required to reconcile the difference between segment revenue and segment expenses to segment profit or loss on an annual and interim basis. ASU 2023-07 also requires disclosure of the title and position of the chief operating decision maker, and is required to be applied retrospectively. It is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of ASU 2023-07 will not have a material impact on our financial position and/or results of operations. The Company will adopt ASU 2023-07 for the fiscal year ended December 31, 2024 and include the updated segment disclosures in the Company's 2024 Annual Report on Form 10-K. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The amended guidance will improve the transparency of income tax disclosures by requiring specific categories in the effective tax rate reconciliation and the disclosure of income taxes paid disaggregated by jurisdiction, along with other disclosure requirements. It is effective for fiscal years beginning after December 15, 2024, and can be applied on a prospective or retrospective basis. Early adoption is permitted. We plan to adopt this pronouncement for our fiscal year beginning January 1, 2025, and we do not expect it to have a material impact on our consolidated financial statements. |
BASIS AND SUMMARY OF SIGNIFIC_3
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Calculation of Dilutive Share-Based Awards | The following table shows the calculation of dilutive share-based awards: Three Months Ended September 30, Nine Months Ended September 30, (Shares In Thousands) 2024 2023 2024 2023 Weighted Average Shares Outstanding 42,264 45,515 42,969 46,606 Dilutive Effect of Share-Based Awards 905 618 835 442 Weighted Average Shares Outstanding Assuming Dilution 43,169 46,133 43,804 47,048 |
Schedule of Components of Accounts Receivable Allowance | The following table shows the components of the accounts receivable allowance: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Beginning Balance $ 64,682 $ 65,544 $ 64,180 $ 69,264 Net Book Value of Accounts Written Off (89,050) (87,622) (260,885) (256,820) Recoveries 8,224 8,654 28,823 30,400 Accounts Receivable Provision 89,336 81,459 241,074 225,191 Ending Balance $ 73,192 $ 68,035 $ 73,192 $ 68,035 |
Schedule of Allowance for Lease Merchandise Write-Offs | The following table shows the components of the allowance for lease merchandise write-offs, which is included within lease merchandise, net in the condensed consolidated balance sheets: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Beginning Balance $ 48,668 $ 49,479 $ 44,180 $ 47,118 Net Book Value of Merchandise Written off (44,533) (42,138) (130,526) (122,721) Recoveries 2,605 1,788 6,162 5,403 Provision for Write-offs 44,736 36,966 131,660 116,295 Ending Balance $ 51,476 $ 46,095 $ 51,476 $ 46,095 |
Schedule of Credit Quality Indicators of Company's Loan Portfolio | Below is a summary of credit quality indicators of the Company's loan portfolio as of September 30, 2024 and December 31, 2023 by FICO score as determined at the time of loan origination: FICO Score Category September 30, 2024 December 31, 2023 600 or Less 8.3 % 6.5 % Between 600 and 700 68.8 % 73.5 % 700 or Greater 11.7 % 11.2 % No Score Identified 11.2 % 8.8 % The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: As of September 30, 2024 (In Thousands) 2024 2023 2022 and Prior Revolving Loans Total FICO Score Category: 600 or Less $ — $ — $ — $ 13,874 $ 13,874 Between 600 and 700 — — — 113,448 113,448 700 or Greater — — — 18,638 18,638 No Score Identified 18,849 — — — 18,849 Total Amortized Cost $ 18,849 $ — $ — $ 145,960 $ 164,809 Gross Charge-offs by Origination Year for the Nine Months Ended September 30, 2024 $ 6,836 $ 3,018 $ — $ 31,316 $ 41,170 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following: (In Thousands) September 30, 2024 December 31, 2023 Prepaid Expenses $ 38,359 $ 17,768 Prepaid Lease Merchandise 7,892 9,944 Prepaid Software Expenses 9,995 8,624 Unamortized Initial Direct Costs on Lease Agreement Originations 5,945 7,192 Other Assets 6,934 7,183 Prepaid Expenses and Other Assets $ 69,125 $ 50,711 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: (In Thousands) September 30, 2024 December 31, 2023 Accounts Payable $ 11,842 $ 20,237 Accrued Salaries and Benefits 21,393 27,256 Accrued Sales and Personal Property Taxes 12,726 11,684 Income Taxes Payable 5,407 1,153 Uncertain Tax Positions 1,074 54,995 Accrued Vendor Rebates 7,605 11,446 Other Accrued Expenses and Liabilities 35,091 24,488 Accounts Payable and Accrued Expenses $ 95,138 $ 151,259 |
Schedule of Changes in Stockholders Equity | Changes in shareholders' equity for the nine months ended September 30, 2024 and 2023 are as follows: Treasury Stock Common Stock Additional Retained Earnings Total Shareholders’ Equity (In Thousands) Shares Amount Shares Amount Balance, December 31, 2023 (38,405) $ (1,095,202) 82,079 $ 41,039 $ 352,421 $ 1,293,073 $ 591,331 Cash Dividends, $0.12 per share — — — — — (5,337) (5,337) Stock-Based Compensation — — — — 6,689 — 6,689 Reissued Shares 281 7,391 — — (12,460) — (5,069) Repurchased Shares (781) (24,490) — — — — (24,490) Net Earnings — — — — — 21,966 21,966 Balance, March 31, 2024 (38,905) $ (1,112,301) 82,079 $ 41,039 $ 346,650 $ 1,309,702 $ 585,090 Cash Dividends, $0.12 per share — — — — — (5,275) (5,275) Stock-Based Compensation — — — — 7,335 — 7,335 Reissued Shares 172 4,438 — — (6,433) — (1,995) Repurchased Shares (1,030) (37,076) — — — — (37,076) Net Earnings — — — — — 33,774 33,774 Balance, June 30, 2024 (39,763) $ (1,144,939) 82,079 $ 41,039 $ 347,552 $ 1,338,201 $ 581,853 Cash Dividends, $0.12 per share — — — — — (5,202) (5,202) Stock-Based Compensation — — — — 7,934 — 7,934 Reissued Shares 38 964 — — (1,345) — (381) Repurchased Shares (810) (37,359) — — — — (37,359) Net Earnings — — — — — 83,962 83,962 Balance, September 30, 2024 (40,535) $ (1,181,334) 82,079 $ 41,039 $ 354,141 $ 1,416,961 $ 630,807 Treasury Stock Common Stock Additional Retained Earnings Total Shareholders’ Equity (In Thousands) Shares Amount Shares Amount Balance, December 31, 2022 (34,044) $ (963,627) 82,079 $ 41,039 $ 338,814 $ 1,154,235 $ 570,461 Stock-Based Compensation — — — — 5,460 — 5,460 Reissued Shares 166 4,778 — — (7,171) — (2,393) Repurchased Shares (1,459) (36,769) — — — — (36,769) Net Earnings — — — — — 48,033 48,033 Balance, March 31, 2023 (35,337) $ (995,618) 82,079 $ 41,039 $ 337,103 $ 1,202,268 $ 584,792 Stock-Based Compensation — — — — 6,886 — 6,886 Reissued Shares 52 1,439 — — (973) — 466 Repurchased Shares (1,083) (35,713) — — — — (35,713) Net Earnings — — — — — 37,218 37,218 Balance, June 30, 2023 (36,368) $ (1,029,892) 82,079 $ 41,039 $ 343,016 $ 1,239,486 $ 593,649 Stock-Based Compensation — — — — 6,889 — 6,889 Reissued Shares 57 1,462 — — (2,099) — (637) Repurchased Shares (1,045) (36,776) — — — — (36,776) Net Earnings — — — — — 35,012 35,012 Balance, September 30, 2023 (37,356) $ (1,065,206) 82,079 $ 41,039 $ 347,806 $ 1,274,498 $ 598,137 |
Schedule of Uncertain Tax Positions | The following table summarizes the activity related to the Company's uncertain tax positions for the periods presented (does not include accrued interest): Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Beginning Balance $ 45,836 $ 46,407 $ 46,200 $ 46,407 Additions for Tax Positions Related to the Current Year — — — — Additions for Tax Positions Related to Prior Years — — — — Prior Year Reductions — — (3) — Statute of Limitation Expirations (44,816) — (44,816) — Settlements — — (361) — Ending Balance $ 1,020 $ 46,407 $ 1,020 $ 46,407 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes financial liabilities measured at fair value on a recurring basis: (In Thousands) September 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ 2,940 $ — $ — $ 2,487 $ — |
Schedule of Fair Value of Company's Debt and Loans Receivable | The following table summarizes the fair value of the Company's debt and the loans receivable held by Vive and Four: (In Thousands) September 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Senior Notes $ — $ 592,140 $ — $ — $ 559,500 $ — Loans Receivable, Net $ — $ — $ 148,813 $ — $ — $ 148,466 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Company’s Loans Receivable, Net | The following is a summary of the Company’s loans receivable, net: (In Thousands) September 30, 2024 December 31, 2023 Loans Receivable, Gross $ 173,723 $ 176,845 Unamortized Fees (8,914) (9,402) Loans Receivable, Amortized Cost 164,809 167,443 Allowance for Loan Losses (43,241) (40,620) Loans Receivable, Net of Allowances and Unamortized Fees 1 $ 121,568 $ 126,823 1 Loans Receivable, Net of Allowances and Unamortized Fees, attributable to Four was $11.6 million and $13.9 million as of September 30, 2024 and December 31, 2023, respectively. |
Schedule of Credit Quality Indicators of Amortized Cost | Below is a summary of credit quality indicators of the Company's loan portfolio as of September 30, 2024 and December 31, 2023 by FICO score as determined at the time of loan origination: FICO Score Category September 30, 2024 December 31, 2023 600 or Less 8.3 % 6.5 % Between 600 and 700 68.8 % 73.5 % 700 or Greater 11.7 % 11.2 % No Score Identified 11.2 % 8.8 % The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year: As of September 30, 2024 (In Thousands) 2024 2023 2022 and Prior Revolving Loans Total FICO Score Category: 600 or Less $ — $ — $ — $ 13,874 $ 13,874 Between 600 and 700 — — — 113,448 113,448 700 or Greater — — — 18,638 18,638 No Score Identified 18,849 — — — 18,849 Total Amortized Cost $ 18,849 $ — $ — $ 145,960 $ 164,809 Gross Charge-offs by Origination Year for the Nine Months Ended September 30, 2024 $ 6,836 $ 3,018 $ — $ 31,316 $ 41,170 |
Schedule of Aging of the Loans Receivable Gross Balance | Included in the table below is an aging of the loans receivable, gross balance: (Dollar Amounts in Thousands) Aging Category September 30, 2024 December 31, 2023 30-59 Days Past Due 7.4 % 7.3 % 60-89 Days Past Due 4.1 % 3.8 % 90 or More Days Past Due 5.5 % 5.4 % Past Due Loans Receivable 17.0 % 16.5 % Current Loans Receivable 83.0 % 83.5 % Balance of Credit Card Loans on Nonaccrual Status $ 4,462 $ 4,482 Balance of Loans Receivable Greater than 90 Days Past Due and Still Accruing Interest and Fees $ — $ — |
Schedule of Components of Allowance for Loan Losses | The table below presents the components of the allowance for loan losses: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Beginning Balance $ 40,242 $ 38,946 $ 40,620 $ 42,428 Provision for Loan Losses 15,133 10,521 38,217 28,026 Charge-offs (13,992) (10,968) (41,170) (34,588) Recoveries 1,858 1,690 5,574 4,323 Ending Balance $ 43,241 $ 40,189 $ 43,241 $ 40,189 |
RESTRUCTURING EXPENSES (Tables)
RESTRUCTURING EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges Recorded within Operating Expenses | The following tables summarize restructuring charges recorded within operating expenses in the condensed consolidated statements of earnings for the three and nine months ended September 30, 2024 and 2023: Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Severance $ — $ — $ — $ — $ 260 $ — $ — $ 260 Other Restructuring Activities 6 — — 6 (22) — — (22) Total Restructuring Expenses $ 6 $ — $ — $ 6 $ 238 $ — $ — $ 238 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Severance $ 4,336 $ — $ 628 $ 4,964 $ 1,983 $ — $ — $ 1,983 Right-of-Use Asset Impairment 1 4,515 — — 4,515 — — — — Property and Equipment Impairment 1,503 — — 1,503 — — — — Early Contract Termination Costs 7,750 — 2,000 9,750 — — — — Other Restructuring Activities 174 — — 174 (25) — — (25) Total Restructuring Expenses $ 18,278 $ — $ 2,628 $ 20,906 $ 1,958 $ — $ — $ 1,958 1 To determine the amount of impairment for vacated office space, the fair value of the ROU asset is calculated based on the present value of the estimated net cash flows related to the ROU asset. |
Schedule of Accrual and Payment Activity Related to Restructuring Program | The following table summarizes the accrual and payment activity related to the restructuring program for the nine months ended September 30, 2024 and 2023: (In Thousands) Severance Early Contract Termination Costs Other Restructuring Activities Total Balance at December 31, 2023 $ 2,675 $ 2,500 $ — $ 5,175 Charges 4,964 9,750 174 14,888 Cash Payments (6,564) (10,650) (174) (17,388) Balance at September 30, 2024 $ 1,075 $ 1,600 $ — $ 2,675 (In Thousands) Severance Other Restructuring Activities Total Balance at December 31, 2022 $ 3,061 $ 42 $ 3,103 Charges 1,983 (25) 1,958 Cash Payments (2,657) (4) (2,661) Balance at September 30, 2023 $ 2,387 $ 13 $ 2,400 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
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 three months ended September 30, 2024 and 2023. The revenues within Other are primarily comprised of the operating activities of Four. Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 582,551 $ — $ — $ 582,551 $ 564,183 $ — $ — $ 564,183 Interest and Fees on Loans Receivable 2 — 16,000 7,594 23,594 — 17,547 1,147 18,694 Total $ 582,551 $ 16,000 $ 7,594 $ 606,145 $ 564,183 $ 17,547 $ 1,147 $ 582,877 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables . Also included within Interest and Fees on Loans Receivable for the three months ended September 30, 2024 is $2.7 million of subscription fee and interchange revenue within the scope of ASC 606, Revenue from Contracts with Customers . The following table presents revenue by source and by segment for the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 (In Thousands) Progressive Leasing Vive Other Total Progressive Leasing Vive Other Total Lease Revenues and Fees 1 $ 1,773,617 $ — $ — $ 1,773,617 $ 1,776,104 $ — $ — $ 1,776,104 Interest and Fees on Loans Receivable 2 — 47,471 19,088 66,559 — 51,887 2,872 54,759 Total $ 1,773,617 $ 47,471 $ 19,088 $ 1,840,176 $ 1,776,104 $ 51,887 $ 2,872 $ 1,830,863 1 Revenue within the scope of ASC 842, Leases . 2 Revenue within the scope of ASC 310, Receivables . Also included within Interest and Fees on Loans Receivable for the nine months ended September 30, 2024 is $6.4 million of subscription fee and interchange revenue within the scope of ASC 606, Revenue from Contracts with Customers . The following is a summary of earnings before income tax (benefit) expense by segment. The loss before income taxes within Other is primarily comprised of the operating activities of certain other strategic initiatives. Three Months Ended September 30, (In Thousands) 2024 2023 Earnings Before Income Tax (Benefit) Expense: Progressive Leasing $ 47,177 $ 53,941 Vive (1,441) 565 Other (3,889) (6,397) Total Earnings Before Income Tax (Benefit) Expense $ 41,847 $ 48,109 Nine Months Ended September 30, (In Thousands) 2024 2023 Earnings Before Income Tax (Benefit) Expense: Progressive Leasing $ 136,596 $ 180,414 Vive 108 4,486 Other (14,951) (17,190) Total Earnings Before Income Tax (Benefit) Expense $ 121,753 $ 167,710 The following is a summary of total assets by segment. The amount within Other is primarily comprised of the assets of Four. (In Thousands) September 30, 2024 December 31, 2023 Assets: Progressive Leasing $ 1,253,717 $ 1,286,587 Vive 137,410 141,028 Other 55,213 63,640 Total Assets $ 1,446,340 $ 1,491,255 The following table presents additional segment profit or loss information for the three and nine months ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2024 2023 2024 2023 Depreciation and Amortization: Progressive Leasing $ 5,390 $ 7,261 $ 18,281 $ 21,803 Vive 155 184 487 534 Other 720 536 2,012 1,539 Total Depreciation and Amortization 1 $ 6,265 $ 7,981 $ 20,780 $ 23,876 Depreciation of Lease Merchandise: Progressive Leasing $ 401,070 $ 381,844 $ 1,217,440 $ 1,202,157 Vive — — — — Other — — — — Total Depreciation of Lease Merchandise $ 401,070 $ 381,844 $ 1,217,440 $ 1,202,157 Interest Expense, Net: Interest Expense: Progressive Leasing $ 9,976 $ 9,745 $ 29,958 $ 29,115 Vive — 112 — 569 Other — — — — Intercompany Elimination (316) (195) (949) (652) Interest Income: Progressive Leasing $ (2,276) $ (2,999) $ (6,036) $ (7,052) Vive — — — — Other (316) (83) (949) (83) Intercompany Elimination 316 195 949 652 Total Interest Expense, Net $ 7,384 $ 6,775 $ 22,973 $ 22,549 Capital Expenditures 2 : Progressive Leasing $ 1,330 $ 1,804 $ 3,985 $ 4,402 Vive 77 127 245 451 Other 631 633 1,807 2,099 Total Capital Expenditures $ 2,038 $ 2,564 $ 6,037 $ 6,952 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. |
BASIS AND SUMMARY OF SIGNIFIC_4
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) shares in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2023 USD ($) | Sep. 30, 2024 USD ($) shares | Sep. 30, 2023 shares | Sep. 30, 2024 USD ($) segment installment shares | Sep. 30, 2023 shares | Dec. 31, 2023 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Weighted-average share-based awards excluded from the computation of earnings per share assuming dilution (in shares) | shares | 273,000 | 614,000 | 522,000 | 880,000 | ||
Accounts receivable, after allowance for credit loss | $ 67,214,000 | $ 67,214,000 | $ 67,879,000 | |||
Impairment of indefinite-lived intangibles | $ 0 | |||||
Four Technologies, Inc. | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Number of interest-free Installments | installment | 4 | |||||
Progressive Leasing | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounts receivable, after allowance for credit loss | $ 67,200,000 | $ 67,200,000 | $ 67,900,000 | |||
Lease merchandise salvage value percentage | 0% | 0% | ||||
Lease agreement, lease period used as asset useful life (in months) | 12 months | |||||
Agreement One | Progressive Finance Holdings, LLC | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Lease agreement period (in months) | 12 months |
BASIS AND SUMMARY OF SIGNIFIC_5
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Calculation of Dilutive Share-Based Awards (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Weighted average shares outstanding (in shares) | 42,264 | 45,515 | 42,969 | 46,606 |
Dilutive effect of share-based awards (in shares) | 905 | 618 | 835 | 442 |
Weighted average shares outstanding assuming dilution (in shares) | 43,169 | 46,133 | 43,804 | 47,048 |
BASIS AND SUMMARY OF SIGNIFIC_6
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Interest and Fees on Loans Receivable (Details) | 9 Months Ended |
Sep. 30, 2024 | |
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 | 3.50% |
Credit Card Loans | Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Merchant fee (as percent) | 3% |
Financing receivable promotional fees percent | 1% |
Credit terms, interest rate, fixed and variable (as a percent) | 27% |
Credit Card Loans | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Merchant fee (as percent) | 25% |
Financing receivable promotional fees percent | 8% |
Credit terms, interest rate, fixed and variable (as a percent) | 35.99% |
BASIS AND SUMMARY OF SIGNIFIC_7
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Components of Accounts Receivable Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 64,682 | $ 65,544 | $ 64,180 | $ 69,264 |
Net Book Value of Accounts Written Off | (89,050) | (87,622) | (260,885) | (256,820) |
Recoveries | 8,224 | 8,654 | 28,823 | 30,400 |
Accounts Receivable Provision | 89,336 | 81,459 | 241,074 | 225,191 |
Ending balance | $ 73,192 | $ 68,035 | $ 73,192 | $ 68,035 |
BASIS AND SUMMARY OF SIGNIFIC_8
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Lease Merchandise Write-Offs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Components of the allowance of leases merchandise write-offs: | ||||
Beginning balance | $ 48,668 | $ 49,479 | $ 44,180 | $ 47,118 |
Net Book Value of Merchandise Written off | (44,533) | (42,138) | (130,526) | (122,721) |
Recoveries | 2,605 | 1,788 | 6,162 | 5,403 |
Provision for Write-offs | 44,736 | 36,966 | 131,660 | 116,295 |
Ending balance | $ 51,476 | $ 46,095 | $ 51,476 | $ 46,095 |
BASIS AND SUMMARY OF SIGNIFIC_9
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vendor Incentives and Rebates Provided to POS Partners (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
POS Partners | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Progressive Leasing expense | $ 9 | $ 6.3 | $ 25.7 | $ 20.7 |
BASIS AND SUMMARY OF SIGNIFI_10
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable, net | $ 121,568 | $ 126,823 |
Four Technologies, Inc. | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable, net | $ 11,600 | $ 13,900 |
BASIS AND SUMMARY OF SIGNIFI_11
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Credit Quality Indicators of Company's Loan Portfolio (Details) | Sep. 30, 2024 | Dec. 31, 2023 |
600 or Less | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 8.30% | 6.50% |
Between 600 and 700 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 68.80% | 73.50% |
700 or Greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 11.70% | 11.20% |
No Score Identified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 11.20% | 8.80% |
BASIS AND SUMMARY OF SIGNIFI_12
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Prepaid Expenses | $ 38,359 | $ 17,768 |
Prepaid Lease Merchandise | 7,892 | 9,944 |
Prepaid Software Expenses | 9,995 | 8,624 |
Unamortized Initial Direct Costs on Lease Agreement Originations | 5,945 | 7,192 |
Other Assets | 6,934 | 7,183 |
Prepaid Expenses and Other Assets | $ 69,125 | $ 50,711 |
BASIS AND SUMMARY OF SIGNIFI_13
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
Income Tax Contingency [Line Items] | ||
Accounts Payable | $ 11,842 | $ 20,237 |
Accrued Salaries and Benefits | 21,393 | 27,256 |
Accrued Sales and Personal Property Taxes | 12,726 | 11,684 |
Income Taxes Payable | 5,407 | 1,153 |
Uncertain Tax Positions | 1,074 | 54,995 |
Accrued Vendor Rebates | 7,605 | 11,446 |
Other Accrued Expenses and Liabilities | 35,091 | 24,488 |
Accounts Payable and Accrued Expenses | $ 95,138 | $ 151,259 |
BASIS AND SUMMARY OF SIGNIFI_14
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2024 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | |
Operating Loss Carryforwards [Line Items] | |||||||
Uncertain tax positions (benefit) expense | $ (8,600) | $ 3,000 | $ (44,800) | ||||
Unrecognized tax benefits, accrued interest | $ 0 | 0 | $ 8,600 | ||||
Income tax benefit relating to the uncertain tax position | $ 53,600 | $ 51,443 | $ 0 | ||||
FTC Inquiry | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Payments for legal settlements | $ 175,000 | ||||||
Income tax examination, estimate of possible loss | $ 175,000 |
BASIS AND SUMMARY OF SIGNIFI_15
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Unrecognized Tax Benefits [Roll Forward] | ||||
Beginning Balance | $ 45,836 | $ 46,407 | $ 46,200 | $ 46,407 |
Additions for Tax Positions Related to the Current Year | 0 | 0 | 0 | 0 |
Additions for Tax Positions Related to Prior Years | 0 | 0 | 0 | 0 |
Prior Year Reductions | 0 | 0 | (3) | 0 |
Statute of Limitation Expirations | (44,816) | 0 | (44,816) | 0 |
Settlements | 0 | 0 | (361) | 0 |
Ending Balance | $ 1,020 | $ 46,407 | $ 1,020 | $ 46,407 |
BASIS AND SUMMARY OF SIGNIFI_16
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Debt (Details) | Nov. 26, 2021 USD ($) | Sep. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2022 | Nov. 24, 2020 USD ($) |
Common Stock | |||||
Debt Instrument [Line Items] | |||||
Tender offer shares repurchased and retired value | $ 425,000,000 | ||||
Unsecured Debt | Senior Unsecured Notes Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 600,000,000 | ||||
Secured Debt | Senior Unsecured Notes 6.000% Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Debt interest rate (as percent) | 6% | ||||
Secured Debt | Senior Unsecured Notes 6.000% Due 2029 | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage (as percent) | 100% | ||||
Revolving Credit Facility | Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 350,000,000 | ||||
Total net debt to EBITDA | 1.25 | 1.25 | |||
Long-term line of credit | $ 0 | $ 0 | |||
Available credit facility | $ 350,000,000 | $ 350,000,000 |
BASIS AND SUMMARY OF SIGNIFI_17
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-based Compensation (Details) | 9 Months Ended |
Sep. 30, 2024 $ / shares shares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued in period (in shares) | shares | 629,057 |
Weighted average fair value price per share (in dollars per share) | $ / shares | $ 30.29 |
Restricted Stock Units (RSUs) | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 1 year |
Award requisite service period (in years) | 1 year |
Restricted Stock Units (RSUs) | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Award requisite service period (in years) | 3 years |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued in period (in shares) | shares | 338,995 |
Weighted average fair value price per share (in dollars per share) | $ / shares | $ 30.29 |
Performance Shares | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 1 year |
Award requisite service period (in years) | 1 year |
Performance Shares | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Award requisite service period (in years) | 3 years |
TSR Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued in period (in shares) | shares | 125,452 |
Award vesting period (in years) | 3 years |
Weighted average fair value price per share (in dollars per share) | $ / shares | $ 40.23 |
TSR Performance Share Units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award requisite service period (in years) | 1 year |
TSR Performance Share Units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award requisite service period (in years) | 3 years |
BASIS AND SUMMARY OF SIGNIFI_18
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Changes in Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance - Treasury (in shares) | (38,404,527) | (38,404,527) | ||||||
Beginning Balance | $ 581,853 | $ 585,090 | $ 591,331 | $ 593,649 | $ 584,792 | $ 570,461 | $ 591,331 | $ 570,461 |
Cash Dividends, $0.12 per share | (5,202) | (5,275) | (5,337) | |||||
Stock-Based Compensation | 7,934 | 7,335 | 6,689 | 6,889 | 6,886 | 5,460 | ||
Reissued Shares | (381) | (1,995) | (5,069) | (637) | 466 | (2,393) | ||
Repurchased Shares | (37,359) | (37,076) | (24,490) | (36,776) | (35,713) | (36,769) | ||
Net Earnings | $ 83,962 | 33,774 | 21,966 | 35,012 | 37,218 | 48,033 | $ 139,702 | 120,263 |
Ending Balance - Treasury (in shares) | (40,535,248) | (40,535,248) | ||||||
Ending Balance | $ 630,807 | $ 581,853 | $ 585,090 | $ 598,137 | $ 593,649 | $ 584,792 | $ 630,807 | $ 598,137 |
Cash dividends per share (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0 | $ 0.36 | $ 0 | ||
Treasury Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance - Treasury (in shares) | (39,763,000) | (38,905,000) | (38,405,000) | (36,368,000) | (35,337,000) | (34,044,000) | (38,405,000) | (34,044,000) |
Beginning Balance | $ (1,144,939) | $ (1,112,301) | $ (1,095,202) | $ (1,029,892) | $ (995,618) | $ (963,627) | $ (1,095,202) | $ (963,627) |
Reissued Shares (in shares) | 38,000 | 172,000 | 281,000 | 57,000 | 52,000 | 166,000 | ||
Reissued Shares | $ 964 | $ 4,438 | $ 7,391 | $ 1,462 | $ 1,439 | $ 4,778 | ||
Repurchased Shares (in shares) | (810,000) | (1,030,000) | (781,000) | (1,045,000) | (1,083,000) | (1,459,000) | ||
Repurchased Shares | $ (37,359) | $ (37,076) | $ (24,490) | $ (36,776) | $ (35,713) | $ (36,769) | ||
Ending Balance - Treasury (in shares) | (40,535,000) | (39,763,000) | (38,905,000) | (37,356,000) | (36,368,000) | (35,337,000) | (40,535,000) | (37,356,000) |
Ending Balance | $ (1,181,334) | $ (1,144,939) | $ (1,112,301) | $ (1,065,206) | $ (1,029,892) | $ (995,618) | $ (1,181,334) | $ (1,065,206) |
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 |
Beginning Balance - Common (in shares) | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 |
Ending Balance | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 | $ 41,039 |
Ending Balance - Common (in shares) | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 | 82,079,000 |
Additional Paid-in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | $ 347,552 | $ 346,650 | $ 352,421 | $ 343,016 | $ 337,103 | $ 338,814 | $ 352,421 | $ 338,814 |
Stock-Based Compensation | 7,934 | 7,335 | 6,689 | 6,889 | 6,886 | 5,460 | ||
Reissued Shares | (1,345) | (6,433) | (12,460) | (2,099) | (973) | (7,171) | ||
Ending Balance | 354,141 | 347,552 | 346,650 | 347,806 | 343,016 | 337,103 | 354,141 | 347,806 |
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 1,338,201 | 1,309,702 | 1,293,073 | 1,239,486 | 1,202,268 | 1,154,235 | 1,293,073 | 1,154,235 |
Cash Dividends, $0.12 per share | (5,202) | (5,275) | (5,337) | |||||
Net Earnings | 83,962 | 33,774 | 21,966 | 35,012 | 37,218 | 48,033 | ||
Ending Balance | $ 1,416,961 | $ 1,338,201 | $ 1,309,702 | $ 1,274,498 | $ 1,239,486 | $ 1,202,268 | $ 1,416,961 | $ 1,274,498 |
BASIS AND SUMMARY OF SIGNIFI_19
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cybersecurity Incident (Details) - USD ($) $ in Millions | 9 Months Ended | 15 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2024 | Dec. 31, 2023 | |
Unusual or Infrequent Item, or Both [Line Items] | |||
Loss contingency accrual | $ 0.1 | $ 0.1 | $ 1.2 |
Cybersecurity Incident | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Amounts incurred for actual and anticipated costs | 0.3 | 3.2 | |
Loss contingency accrual | $ 0.4 | $ 0.4 |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Liability | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Liability | 2,940 | 2,487 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Liability | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) $ in Millions | Nov. 26, 2021 USD ($) |
Senior Unsecured Notes Due 2029 | Unsecured Debt | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |
Aggregate principal amount | $ 600 |
FAIR VALUE MEASUREMENT - Sche_2
FAIR VALUE MEASUREMENT - Schedule of Fair Value of Company's Debt and Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
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 | 592,140 | 559,500 |
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 | $ 148,813 | $ 148,466 |
LOANS RECEIVABLE - Schedule of
LOANS RECEIVABLE - Schedule of Company’s Loans Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans Receivable, Gross | $ 173,723 | $ 176,845 | ||||
Unamortized Fees | (8,914) | (9,402) | ||||
Loans Receivable, Amortized Cost | 164,809 | 167,443 | ||||
Allowance for Loan Losses | (43,241) | $ (40,242) | (40,620) | $ (40,189) | $ (38,946) | $ (42,428) |
Loans receivable, net of allowances and unamortized fees | 121,568 | 126,823 | ||||
Four Technologies, Inc. | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans receivable, net of allowances and unamortized fees | $ 11,600 | $ 13,900 |
LOANS RECEIVABLE - Schedule o_2
LOANS RECEIVABLE - Schedule of Credit Quality Indicators of Amortized Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | $ 18,849 | $ 18,849 | |||
2023 | 0 | 0 | |||
2022 and Prior | 0 | 0 | |||
Revolving Loans | 145,960 | 145,960 | |||
Loans Receivable, Amortized Cost | 164,809 | 164,809 | $ 167,443 | ||
2024 | 6,836 | ||||
2023 | 3,018 | ||||
2022 and Prior | 0 | ||||
Revolving Loans | 31,316 | ||||
Notes receivable gross charge-off | 13,992 | $ 10,968 | 41,170 | $ 34,588 | |
600 or Less | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 0 | 0 | |||
2023 | 0 | 0 | |||
2022 and Prior | 0 | 0 | |||
Revolving Loans | 13,874 | 13,874 | |||
Loans Receivable, Amortized Cost | 13,874 | 13,874 | |||
Between 600 and 700 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 0 | 0 | |||
2023 | 0 | 0 | |||
2022 and Prior | 0 | 0 | |||
Revolving Loans | 113,448 | 113,448 | |||
Loans Receivable, Amortized Cost | 113,448 | 113,448 | |||
700 or Greater | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 0 | 0 | |||
2023 | 0 | 0 | |||
2022 and Prior | 0 | 0 | |||
Revolving Loans | 18,638 | 18,638 | |||
Loans Receivable, Amortized Cost | 18,638 | 18,638 | |||
No Score Identified | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 18,849 | 18,849 | |||
2023 | 0 | 0 | |||
2022 and Prior | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Loans Receivable, Amortized Cost | $ 18,849 | $ 18,849 |
LOANS RECEIVABLE - Schedule o_3
LOANS RECEIVABLE - Schedule of Aging of the Loans Receivable Gross Balance (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans Receivable | 17% | 16.50% |
Current Loans Receivable | 83% | 83.50% |
Balance of Credit Card Loans on Nonaccrual Status | $ 4,462 | $ 4,482 |
Balance of Loans Receivable Greater than 90 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 | 7.40% | 7.30% |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans Receivable | 4.10% | 3.80% |
90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans Receivable | 5.50% | 5.40% |
LOANS RECEIVABLE - Schedule o_4
LOANS RECEIVABLE - Schedule of Components of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 40,242 | $ 38,946 | $ 40,620 | $ 42,428 |
Provision for Loan Losses | 15,133 | 10,521 | 38,217 | 28,026 |
Charge-offs | (13,992) | (10,968) | (41,170) | (34,588) |
Recoveries | 1,858 | 1,690 | 5,574 | 4,323 |
Ending Balance | $ 43,241 | $ 40,189 | $ 43,241 | $ 40,189 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2024 | Dec. 31, 2023 | |
Other Commitments [Line Items] | ||||
Loss contingency accrual | $ 0.1 | $ 1.2 | ||
Unused Credit Card Lines | ||||
Other Commitments [Line Items] | ||||
Cancellable unfunded lending commitments | 498.7 | $ 523.9 | ||
Cybersecurity Insurance | ||||
Other Commitments [Line Items] | ||||
Retainage deposit | $ 1 | |||
FTC Inquiry | ||||
Other Commitments [Line Items] | ||||
Payments for legal settlements | $ 175 | |||
FTC Inquiry | Progressive Leasing | ||||
Other Commitments [Line Items] | ||||
Payments for legal settlements | $ 175 |
RESTRUCTURING EXPENSES - Narrat
RESTRUCTURING EXPENSES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 33 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |||||
Restructuring expenses | $ 6 | $ 238 | $ 20,906 | $ 1,958 | $ 42,400 |
RESTRUCTURING EXPENSES - Schedu
RESTRUCTURING EXPENSES - Schedule of Restructuring Charges Recorded within Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 33 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | $ 6 | $ 238 | $ 20,906 | $ 1,958 | $ 42,400 |
Progressive Leasing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 6 | 238 | 18,278 | 1,958 | |
Vive | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | 0 | 0 | |
Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | 2,628 | 0 | |
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 260 | 4,964 | 1,983 | |
Severance | Progressive Leasing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 260 | 4,336 | 1,983 | |
Severance | Vive | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | 0 | 0 | |
Severance | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | 628 | 0 | |
Right-of-Use Asset Impairment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 4,515 | 0 | |||
Right-of-Use Asset Impairment | Progressive Leasing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 4,515 | 0 | |||
Right-of-Use Asset Impairment | Vive | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | |||
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 | 1,503 | 0 | |||
Property and Equipment Impairment | Progressive Leasing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 1,503 | 0 | |||
Property and Equipment Impairment | Vive | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | |||
Property and Equipment Impairment | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | |||
Early Contract Termination Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 9,750 | 0 | |||
Early Contract Termination Costs | Progressive Leasing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 7,750 | 0 | |||
Early Contract Termination Costs | Vive | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | |||
Early Contract Termination Costs | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 2,000 | 0 | |||
Other Restructuring Activities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 6 | (22) | 174 | (25) | |
Other Restructuring Activities | Progressive Leasing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 6 | (22) | 174 | (25) | |
Other Restructuring Activities | Vive | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | 0 | 0 | 0 | 0 | |
Other Restructuring Activities | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Restructuring Expenses | $ 0 | $ 0 | $ 0 | $ 0 |
RESTRUCTURING EXPENSES - Sche_2
RESTRUCTURING EXPENSES - Schedule of Accrual and Payment Activity Related to Restructuring Program (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 5,175 | $ 3,103 |
Charges | 14,888 | 1,958 |
Cash Payments | (17,388) | (2,661) |
Restructuring reserve, ending balance | 2,675 | 2,400 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 2,675 | 3,061 |
Charges | 4,964 | 1,983 |
Cash Payments | (6,564) | (2,657) |
Restructuring reserve, ending balance | 1,075 | 2,387 |
Early Contract Termination Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 2,500 | |
Charges | 9,750 | |
Cash Payments | (10,650) | |
Restructuring reserve, ending balance | 1,600 | |
Other Restructuring Activities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0 | 42 |
Charges | 174 | (25) |
Cash Payments | (174) | (4) |
Restructuring reserve, ending balance | $ 0 | $ 13 |
SEGMENTS - Narrative (Details)
SEGMENTS - Narrative (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2024 USD ($) segment installment | Sep. 30, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Restructuring expenses | $ 14,888 | $ 1,958 |
Progressive Leasing | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Restructuring expenses | $ 18,300 | $ 2,000 |
Four Technologies, Inc. | ||
Segment Reporting Information [Line Items] | ||
Number of interest-free Installments | installment | 4 |
SEGMENTS - Schedule of Revenue
SEGMENTS - Schedule of Revenue by Source and by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 606,145 | $ 582,877 | $ 1,840,176 | $ 1,830,863 |
Lease Revenues and Fees | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 582,551 | 564,183 | 1,773,617 | 1,776,104 |
Interest and Fees on Loans Receivable | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 23,594 | 18,694 | 66,559 | 54,759 |
Subscription fee and interchange revenue within scope of ASC 606 | 2,700 | 6,400 | ||
Operating Segments | Progressive Leasing | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 582,551 | 564,183 | 1,773,617 | 1,776,104 |
Operating Segments | Progressive Leasing | Lease Revenues and Fees | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 582,551 | 564,183 | 1,773,617 | 1,776,104 |
Operating Segments | Progressive Leasing | Interest and Fees on Loans Receivable | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Vive | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 16,000 | 17,547 | 47,471 | 51,887 |
Operating Segments | Vive | Lease Revenues and Fees | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Vive | Interest and Fees on Loans Receivable | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 16,000 | 17,547 | 47,471 | 51,887 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,594 | 1,147 | 19,088 | 2,872 |
Other | Lease Revenues and Fees | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Other | Interest and Fees on Loans Receivable | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 7,594 | $ 1,147 | $ 19,088 | $ 2,872 |
SEGMENTS - Schedule of Informat
SEGMENTS - Schedule of Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Total Earnings Before Income Tax (Benefit) Expense | $ 41,847 | $ 48,109 | $ 121,753 | $ 167,710 | |
Total Assets | 1,446,340 | 1,446,340 | $ 1,491,255 | ||
Total Depreciation of Lease Merchandise | 401,070 | 381,844 | 1,217,440 | 1,202,157 | |
Total Interest Expense, Net | 7,384 | 6,775 | 22,973 | 22,549 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and Amortization | 6,265 | 7,981 | 20,780 | 23,876 | |
Total Depreciation of Lease Merchandise | 401,070 | 381,844 | 1,217,440 | 1,202,157 | |
Total Interest Expense, Net | 7,384 | 6,775 | 22,973 | 22,549 | |
Total Capital Expenditures | 2,038 | 2,564 | 6,037 | 6,952 | |
Operating Segments | Progressive Leasing | |||||
Segment Reporting Information [Line Items] | |||||
Total Earnings Before Income Tax (Benefit) Expense | 47,177 | 53,941 | 136,596 | 180,414 | |
Total Assets | 1,253,717 | 1,253,717 | 1,286,587 | ||
Depreciation and Amortization | 5,390 | 7,261 | 18,281 | 21,803 | |
Total Depreciation of Lease Merchandise | 401,070 | 381,844 | 1,217,440 | 1,202,157 | |
Interest Expense: | 9,976 | 9,745 | 29,958 | 29,115 | |
Interest Income: | (2,276) | (2,999) | (6,036) | (7,052) | |
Total Capital Expenditures | 1,330 | 1,804 | 3,985 | 4,402 | |
Operating Segments | Vive | |||||
Segment Reporting Information [Line Items] | |||||
Total Earnings Before Income Tax (Benefit) Expense | (1,441) | 565 | 108 | 4,486 | |
Total Assets | 137,410 | 137,410 | 141,028 | ||
Depreciation and Amortization | 155 | 184 | 487 | 534 | |
Total Depreciation of Lease Merchandise | 0 | 0 | 0 | 0 | |
Interest Expense: | 0 | 112 | 0 | 569 | |
Interest Income: | 0 | 0 | 0 | 0 | |
Total Capital Expenditures | 77 | 127 | 245 | 451 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Total Earnings Before Income Tax (Benefit) Expense | (3,889) | (6,397) | (14,951) | (17,190) | |
Total Assets | 55,213 | 55,213 | $ 63,640 | ||
Depreciation and Amortization | 720 | 536 | 2,012 | 1,539 | |
Total Depreciation of Lease Merchandise | 0 | 0 | 0 | 0 | |
Interest Expense: | 0 | 0 | 0 | 0 | |
Interest Income: | (316) | (83) | (949) | (83) | |
Total Capital Expenditures | 631 | 633 | 1,807 | 2,099 | |
Intercompany Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Interest Expense: | (316) | (195) | (949) | (652) | |
Interest Income: | $ 316 | $ 195 | $ 949 | $ 652 |