| Business and Summary of Significant Accounting Policies | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As described elsewhere in this Annual Report, the lingering effects of the global pandemic, continued inflationary pressures, general macroeconomic conditions and rising interest rates have led to significant market disruption and has impacted various aspects of our operations, directly and indirectly. Throughout these notes to the consolidated financial statements, the impacts of these items on the financial results for the year ended December 31, 2023 and comparable prior periods have been identified to the best of our ability under the respective sections. For a discussion of trends that we believe have affected our business as a result of these items, see Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations", including the "Highlights," "Consolidated Results of Operations" and "Liquidity and Capital Resources", and Part I, Item 1A "Risk Factors", above. BrandsMart U.S.A. Acquisition On April 1, 2022, the Company completed the previously announced transaction to acquire a 100% ownership of Interbond Corporation of America, doing business as BrandsMart U.S.A. The Company paid total consideration of $230 million in cash under the terms of the agreement and additional amounts for working capital adjustments and transaction related fees. Refer to Note 2 to these consolidated financial statements for additional information regarding the acquisition. Management believes that the BrandsMart U.S.A. acquisition will strengthen the Company's ability to deliver on its mission of enhancing people’s lives by providing easy access to high quality furniture, appliances, electronics, and other home goods through affordable lease-to-own and retail purchase options. Management also believes that value creation opportunities include leveraging the Company's lease-to-own expertise to provide BrandsMart U.S.A.'s customers enhanced payment options and offering a wider selection of products to millions of Aaron's customers, as well as generating procurement savings and other cost synergies. Business Overview Description of Business The Company is a leading, technology-enabled, omni-channel provider of lease-to-own ("LTO") and retail purchase solutions of furniture, electronics, appliances, and other home goods across its brands: Aaron's, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven Furniture Industries ("Woodhaven"). As of December 31, 2023, the Company's operating and reportable segments are the Aaron's Business and BrandsMart, each as described below. The Aaron's Business segment is comprised of (i) Aaron's branded Company-operated and franchise operated stores; (ii) aarons.com e-commerce platform ("aarons.com"); (iii) Woodhaven; and (iv) BrandsMart Leasing (collectively, the "Aaron’s Business"). The operations of BrandsMart U.S.A. (excluding BrandsMart Leasing) comprise the BrandsMart segment (collectively, "BrandsMart"). Aaron's Business Segment Since its founding in 1955, Aaron's has been committed to serving the overlooked and underserved customer with a dedication to inclusion and improving the communities in which it operates. Through a portfolio of approximately 1,240 stores and its aarons.com e-commerce platform, Aaron's, together with its franchisees, provide consumers with LTO and retail purchase solutions for the products they need and want, with a focus on providing its customers with unparalleled customer service, high approval rates, lease plan flexibility, and an attractive value proposition, including competitive monthly payments and total cost of ownership, as compared to other LTO providers. Woodhaven manufactures and supplies a significant portion of the upholstered furniture leased and sold in Company-operated and franchised Aaron's stores. Launched in 2022, BrandsMart Leasing offers LTO purchase solutions to customers of BrandsMart U.S.A. BrandsMart Segment Founded in 1977, BrandsMart U.S.A. is one of the leading appliance and consumer electronics retailers in the southeast United States and one of the largest appliance retailers in the country with 11 stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The operations of BrandsMart U.S.A. (other than BrandsMart Leasing) comprise the BrandsMart segment. Basis of Presentation The accompanying consolidated financial statements of the Company and its wholly-owned subsidiaries for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 reflect the historical results of operations, financial position and cash flows of the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Intercompany balances and transactions between consolidated entities have been eliminated and reflect the historical results of operations, financial position and cash flows of the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Generally, actual experience has been consistent with management's prior estimates and assumptions. In many cases, management's estimates and assumptions are dependent on estimates of such future developments and may change in the future. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying consolidated financial statements. Reclassifications The following reclassifications have been made to the prior periods to conform to the current period presentation. For all previously reported periods prior to April 1, 2022, the Company presented all revenues derived from lease agreements and the related fees, as well as the retail sale of both new and returned lease merchandise from our Company-operated Aaron's stores and fees from our Aaron's Club program within one line in the consolidated statements of earnings, presented as lease and retail revenues. Effective April 1, 2022, the Company revised its presentation to separately present revenues derived from lease agreements at our Company-operated Aaron's stores and e-commerce platform and fees from our Aaron's Club program as lease revenues and fees in the consolidated statements of earnings, with the sale of both new and returned lease merchandise from our Company-operated Aaron's stores being classified as retail sales. This revised presentation does not have an impact on total revenues presented in prior periods. Similarly, for all previously reported periods prior to April 1, 2022, the Company presented the depreciation expense associated with lease merchandise as well as the depreciated costs of merchandise sold within one line in the consolidated statements of earnings, presented as the cost of lease and retail revenues. Effective April 1, 2022, the Company revised its presentation to separately present the depreciation expense associated with lease merchandise in the consolidated statements of earnings, with the costs associated with merchandise sold through our Company-operated Aaron's stores presented as retail cost of sales. This revised presentation does not have an impact on total costs of revenues presented in prior periods. Significant Accounting Policies Segment Reporting As of December 31, 2023, the Company has two operating and reportable segments: Aaron's Business and BrandsMart. During the year ended December 31, 2022, the Company changed its composition of reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes separate segments for the Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs. The Company has retroactively adjusted, for all periods presented, its segment disclosures to align with the current composition of reportable segments. The Aaron's Business segment provides consumers with LTO and retail purchase solutions through the Company's Aaron's stores in the United States and Canada and the aarons.com e-commerce platform. This operating segment also supports franchisees of its Aaron's stores. In addition, the Aaron's Business segment includes the operations of BrandsMart Leasing, which offers lease-to-own solutions to BrandsMart U.S.A. customers, and Woodhaven, which manufactures and supplies a significant portion of the upholstered furniture leased and sold in Company-operated and franchised Aaron's stores. The BrandsMart segment is comprised of the operations of BrandsMart U.S.A. (excluding BrandsMart Leasing), which is one of the leading appliance and consumer electronics retailers in the southeast United States and one of the largest appliance retailers in the country with 11 stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. Revenue Recognition The Company provides lease and retail merchandise, consisting of appliances, electronics, furniture, and other home goods to its customers for lease under certain terms agreed to by the customer and through retail sales. The Company's Aaron's stores, aarons.com e-commerce platform, and BrandsMart Leasing components of the Aaron's Business segment offer leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months. The Aaron's Business segment also earns revenue from the sale of merchandise to customers and Aaron's franchisees, and earns ongoing revenue from Aaron's franchisees in the form of royalties and through advertising efforts that benefit the franchisees. The Company's BrandsMart U.S.A. stores and related brandsmartusa.com e-commerce platform offer the sale of merchandise directly to its customers via retail sales. See Note 6 to these consolidated financial statements for further information regarding the Company's revenue recognition policies and disclosures. Earnings (Loss) Per Share Earnings per share is computed by dividing net earnings (loss) by the weighted average number of shares of common stock outstanding during the period. The computation of earnings (loss) per share assuming dilution includes the dilutive effect of stock options, RSUs, RSAs, PSUs and other awards issuable under the Company's ESPP (collectively, "share-based awards") as determined under the treasury stock method, unless the inclusion of such awards would be anti-dilutive. The following table shows the calculation of weighted-average shares outstanding assuming dilution: Year Ended December 31, (Shares In Thousands) 2023 2022 2021 Weighted Average Shares Outstanding 30,778 30,881 32,992 Dilutive Effect of Share-Based Awards 1 327 — 730 Weighted Average Shares Outstanding Assuming Dilution 31,105 30,881 33,722 1 There was no dilutive effect to the loss per common share for the year ended December 31, 2022 due to the net loss incurred in the period. For the years ended December 31, 2023 and December 31, 2021, 1.3 million and 0.1 million weighted-average share based awards were excluded from the computation of earnings per share assuming dilution, respectively, as the awards would have been anti-dilutive for the period. Lease Merchandise The Company’s lease merchandise is recorded at the lower of depreciated cost, including overhead costs from our distribution centers, or net realizable value. The cost of merchandise manufactured by our Woodhaven operations is recorded at cost and includes overhead from production facilities, shipping costs and warehousing costs. The Company begins depreciating furniture and appliances at the earlier of the lease date or 24 months and one day from its purchase, while all other lease merchandise begins depreciating at the earlier of the lease date or 12 months and one day from its purchase. Lease merchandise fully depreciates over the lease agreement period when on lease, generally 12 to 24 months, and generally 36 months when not on lease. Depreciation is accelerated upon early payout. The following is a summary of lease merchandise, net of accumulated depreciation and allowances: December 31, (In Thousands) 2023 2022 Merchandise on Lease, net of Accumulated Depreciation and Allowances $ 419,531 $ 446,923 Merchandise Not on Lease, net of Accumulated Depreciation and Allowances 1 202,731 246,872 Lease Merchandise, net of Accumulated Depreciation and Allowances 2 $ 622,262 $ 693,795 1 Includes Woodhaven's inventory, which is primarily comprised of raw materials, that has been classified within lease merchandise in the consolidated balance sheets of $8.7 million and $12.9 million as of December 31, 2023 and 2022, respectively. 2 General and administrative overhead costs capitalized into the cost of lease merchandise were $54.0 million, $55.7 million, and $55.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Capitalized overhead costs remaining in lease merchandise were $55.9 million and $55.1 million as of December 31, 2023 and 2022, respectively. The Aaron's store-based operations' policies require weekly merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. Monthly cycle counting procedures are performed at both the Aaron's distribution centers and Woodhaven manufacturing facilities. Physical inventories are also taken at the manufacturing facilities annually. The Company also monitors merchandise levels and mix by division, store, and distribution center, as well as the average age of merchandise on hand. If obsolete merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off. Generally, all merchandise not on lease is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off and is included as a component of the provision for lease merchandise write-offs in the accompanying consolidated statements of earnings. The Company records a provision for write-offs using the allowance method, which is included within lease merchandise, net within the consolidated balance sheets. 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 primarily on historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as seasonality and the impacts of uncertainty surrounding inflationary and other economic pressures in the current macroeconomic environment. Therefore, actual lease merchandise write-offs could differ from the allowance. The provision for write-offs is included in provision for lease merchandise write-offs in the accompanying consolidated statements of earnings. The Company writes off lease merchandise on lease agreements that are 60 days or more past due on pre-determined dates twice monthly. The Company writes off lease merchandise on lease agreements for its BrandsMart Leasing operations that are 90 days or more past due on pre-determined dates twice monthly. The following table shows the components of the allowance for lease merchandise write-offs: Year Ended December 31, (In Thousands) 2023 2022 2021 Beginning Balance $ 13,894 $ 12,339 $ 11,599 Merchandise Written off, net of Recoveries (82,477) (96,009) (67,148) Provision for Write-offs 81,495 97,564 67,888 Ending Balance $ 12,912 $ 13,894 $ 12,339 Merchandise Inventories The Company’s merchandise inventories are stated at the lower of weighted average cost or net realizable value, and consist entirely of merchandise held for sale by the BrandsMart segment. In-bound freight-related costs from vendors, net of allowances and vendor rebates, are included as part of the net cost of merchandise inventories. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within retail cost of sales in the consolidated statements of earnings. During the year ended December 31, 2022, the Company recognized a one-time non-cash charge for a fair value adjustment to the acquired BrandsMart merchandise inventories of $23.1 million, which was included within retail cost of sales in the consolidated statements of earnings. The Company periodically evaluates aged and distressed inventory and establishes an inventory markdown which represents the excess of the carrying value over the amount the Company expects to realize from the ultimate sale of the inventory. Markdowns establish a new cost basis for the inventory and are recorded within retail cost of sales within the consolidated statements of earnings. The write-offs of merchandise inventories associated with the Company's cycle and physical inventory count processes are also included within retail cost of sales in the consolidated statements of earnings. The Company records an inventory reserve for the anticipated loss associated with selling inventories below cost. This reserve is based on management’s current knowledge with respect to inventory levels, sales trends, and historical experience selling or disposing of aged or obsolete inventory. The following is a summary of merchandise inventories, net of allowances: (In Thousands) December 31, 2023 December 31, 2022 Merchandise Inventories, gross $ 91,093 $ 96,945 Reserve for Merchandise Inventories (921) (981) Merchandise Inventories, net $ 90,172 $ 95,964 The following table shows the components of the reserve for merchandise inventories: Year Ended (In Thousands) December 31, 2023 December 31, 2022 Beginning Balance $ 981 $ — Merchandise Written off (618) — Provision for Write-offs 558 981 Ending Balance $ 921 $ 981 Retail and Non-Retail Cost of Sales Included in retail cost of sales, as well as non-retail cost of sales, is the net book value of merchandise sold via retail and non-retail sales, primarily using specific identification. The components of cost of sales are further described below. Depreciation of Lease Merchandise and Other Lease Revenue Costs The primary items classified under the expense category "Depreciation of Lease Merchandise and Other Lease Revenue Costs" are: • Depreciation of the capitalized costs (recorded at the lower of depreciated costs or net realizable value) of available and on rent lease merchandise at the Aaron’s Business segment. Capitalized costs include: ◦ Landed Inventory Costs ◦ Overhead Costs incurred at our internal distribution centers, including transportation costs incurred to transfer inventory from the Company's fulfillment centers to Company Operated stores ◦ Freight expenses associated with receiving the inventory from our vendors ◦ Costs of manufactured inventory at our Woodhaven operations including overhead from production facilities, shipping costs and warehousing costs • Accelerated depreciation associated with early payout transactions • Amortization of Aaron's Business cooperative advertising consideration, received from vendors, that are not specifically identifiable incremental costs incurred in selling those vendor's products • Amortization of rebate credits associated with the leasing of lease merchandise at the Aaron's Business • External service provider fees associated with hosting the Aaron's Club program Retail Cost of Sales - Aaron's Business The primary items classified under the expense category "Retail Cost of Sales" for the Aaron's Business segment are: • Costs of the NBV of lease merchandise (recorded at the lower of depreciated costs or net realizable value) at the Aaron's Business segment including: ◦ Landed Inventory Costs ◦ Overhead Costs incurred at our internal distribution centers, including transportation costs incurred to transfer inventory from the Company's fulfillment centers to Company Operated stores ◦ Freight expenses associated with receiving the inventory from our vendors ◦ Costs of manufactured inventory at our Woodhaven operations including overhead from production facilities, shipping costs and warehousing costs • Amortization of Aaron's Business cooperative advertising consideration, received from vendors, that are not specifically identifiable incremental costs incurred in selling those vendor's products • Amortization of rebate credits associated with the retail sale of lease merchandise at the Aaron's Business Retail Cost of Sales - BrandsMart The primary items classified under the expense category "Retail Cost of Sales" for the BrandsMart Business segment are: • Weighed average costs of landed inventory invoice costs (recorded at the lower of weighted average costs or net realizable value) • Overhead Costs incurred at our internal distribution centers • Freight expenses associated with receiving the inventory from our vendors • Transportation costs incurred to transfer inventory from the Company's fulfillment centers to stores • Cooperative advertising consideration, received from vendors, that are not specifically identifiable incremental costs incurred in selling those vendor's products • Vendor rebate credits associated with the retail sale of merchandise inventories • Subsequent markdowns of merchandise inventories • Third party transportation and internal vehicle charges associated with customer shipping and handling • Charges/Provisions for shrink and obsolescence • Cost of services provided including personnel related costs, replacement costs, and freight expenses Non-Retail Cost of Sales - Aaron's Business The primary items classified under the expense category "Non-Retail Cost of Sales" for the Aaron's Business segment are: • Cost of the NBV of lease merchandise (recorded at the lower of depreciated costs or net realizable value) sold to Aaron's Business franchisees or wholesale customers of our Woodhaven operations which includes: ◦ Landed Inventory Costs ◦ Overhead Costs incurred at our internal distribution centers ◦ Freight expenses associated with receiving the inventory from our vendors ◦ Costs of manufactured inventory at our Woodhaven operations including overhead from production facilities, shipping costs and warehousing costs ◦ Transportation costs incurred to transfer inventory from the Company's fulfillment centers to franchisees and non-retail customers • Amortization of Aaron's Business cooperative advertising consideration, received from vendors, that are not specifically identifiable incremental costs incurred in selling those vendor's products Shipping and Handling Costs Shipping and handling costs are primarily classified within other operating expenses, net in the accompanying consolidated statements of earnings and to a lesser extent, capitalized into the cost of lease merchandise and subsequently depreciated or recognized as cost of retail sales. Shipping and handling costs classified within other operating expenses, net were $64.1 million, $70.1 million and $60.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. Shipping and handling costs capitalized into the cost of lease merchandise were $23.3 million, $27.4 million and $25.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. Advertising The Company expenses advertising costs as incurred. Advertising production costs are initially recognized as a prepaid advertising asset and are expensed when an advertisement appears for the first time. The prepaid advertising asset was $0.1 million and $4.6 million at December 31, 2023 and December 31, 2022, respectively, and is reported within prepaid expenses and other assets on the consolidated balance sheets. Total advertising costs are classified within other operating expenses, net in the consolidated statements of earnings. These advertising costs are presented net of cooperative advertising considerations received from vendors, which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products, and are recorded as a reduction of advertising costs. The following table shows total advertising costs, net of cooperative advertising consideration: Year Ended December 31, (In Thousands) 2023 2022 2021 Advertising Costs, Gross $ 75,153 $ 74,864 $ 80,602 Less: Cooperative Advertising Considerations (33,792) (35,743) (26,951) Advertising Costs, Net $ 41,361 $ 39,121 $ 53,651 Stock-Based Compensation The Company has stock-based employee compensation plans, which are more fully described in Note 13 to these consolidated financial statements. The Company estimates the fair value for the options granted on the grant date using a Black-Scholes-Merton option-pricing model. The fair value of each share of restricted stock units ("RSUs"), restricted stock awards ("RSAs") and performance share units ("PSUs") with Company-specific performance criteria is equal to the market value of a share of the Company's common stock on the grant date. For PSUs that are granted with a total shareholder return ("TSR") component, management estimates the fair value using a Monte Carlo simulation valuation model, as these awards are subject to a market condition. For all stock award types, the Company considers whether any material nonpublic information is known to the Company at the time the awards are granted that could impact the determined grant date fair value. No adjustments to fair value were deemed necessary for the years ended December 31, 2023, 2022 or 2021 based on these considerations. The Company estimates the fair value of awards issued under the Company's employee stock purchase plan ("A&R ESPP") using a series of Black-Scholes-Merton pricing models that consider the components of the "lookback" feature of the plan, including the underlying stock, call option, and put option. The design of awards issued under the A&R ESPP is more fully described in Note 13 to these consolidated financial statements. Separation Costs Separation costs include actual expenses after November 30, 2020 associated with the separation and distribution from PROG Holdings, Inc. (referred to herein as "PROG Holdings"), including personnel-related costs and incremental stock-based compensation expense associated with the conversion and modification of unvested and unexercised equity awards related to Company employees, as well as an allocation of similar expenses related to PROG Holdings' corporate and shared function employees. See Note 13 to these consolidated financial statements for additional information regarding the modification of awards that were converted concurrent with the separation and distribution. Separation costs also include one-time expenses incurred by the Company in order to begin operating as an independent, standalone public entity after the completion of the separation and distribution. These costs will be fully expensed in the first quarter of 2024. Acquisition-Related Costs Acquisition-related costs of $3.6 million and $14.6 million were incurred during the years ended December 31, 2023 and 2022, respectively, and primarily represent third-party consulting in 2023, while in 2022 it included third-party consulting as well as banking and legal expenses associated with the acquisition of BrandsMart U.S.A completed April 1, 2022. Income Taxes The Company and its subsidiaries file U.S. federal consolidated income tax returns in the United States, and separate legal entities file in various state and foreign jurisdictions. In all periods presented, the income tax provision has been computed for the entities comprising the Company on a standalone, separate return basis as if the Company were a separate taxpayer. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Income taxes as presented attribute deferred income taxes of the Company's standalone consolidated financial statements in a manner that is systematic, rational and consistent with the asset and liability method. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. The Company's largest temporary differences arise principally from the use of accelerated depreciation methods on lease merchandise for tax purposes. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes uncertain tax positions in the consolidated financial statements when it is more likely than not that the tax position will be sustained upon examination. Uncertain tax positions are measured based on the probabilities that the uncertain tax position will be realized upon final settlement. See further details on income taxes within Note 9 to these consolidated financial statements. Sales Taxes The Company applies the net basis for sales taxes imposed on goods and services in the consolidated statements of earnings. The Company is required by the applicable governmental authorities to collect and remit sales taxes. Accordingly, such amounts are charged to the customer, collected, and remitted directly to the appropriate jurisdictional entity. Cash and Cash Equivalents The Company classifies as cash equivalents any highly liquid investments that have maturity dates of three months or less at the time they are purchased. The Company maintains its cash and cash equivalents at various banks. Bank balances may exceed coverage provided by the Federal Deposit Insurance Corporation ("FDIC"). However, due to the size and strength of the banks in which balances that exceed the FDIC coverage are held, any exposure to loss is believed to be minimal. Cash and cash equivalents also includes amounts in transit due from financial institutions related to credit card and debit card transactions, which generally settle within three business days from the original transaction. Supplemental Cash Flow Information The following table shows supplemental cash flow information: Year Ended December 31, (In Thousands) 2023 2022 2021 Net Cash Paid During the Year: Interest $ 15,973 $ 6,618 $ 991 Income Taxes $ 11,680 $ 5,498 $ 9,654 Accounts Receivable Accounts receivable consist primarily of receivables due from customers on lease agreements, corporate receivables incurred during the normal course of business (primarily for vendor consideration and third-party warranty providers) and franchisee obligations. Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2023 2022 Customers $ 8,737 $ 9,721 Corporate 23,660 20,597 Franchisee 7,385 7,873 $ 39,782 $ 38,191 The Company maintains an accounts receivable allowance for the Aaron's Business customer lease agreements, under which its policy is to record a provision for returns and uncollectible contractually due renewal payments based on historical payments experience, which is recognized as a reduction of lease revenues and fees within the consolidated statements of earnings. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends. The Company writes off customer lease receivables for its Aaron's Business operations that are 60 days or more past due on pre-determined dates twice monthly. The Company writes off customer lease receivables for its BrandsMart Leasing operations that are 90 days or more past due on pre-determined dates twice monthly. The Company also maintains an allowance for outstanding franchisee accounts receivable. The Company's policy is to estimate future losses related to certain franchisees that are deemed to have a higher risk of non-payment and record an allowance for these estimated losses. The estimated allowance on franchisee accounts receivable includes consideration of the financial position of each franchisee and qualitative consideration of potential losses associated with uncertainties impacting the franchisee's ability to satisfy their obligations. Uncertainties include inflationary and other economic pressures in the c |
