Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 10, 2014 | Jun. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'AAN | ' | ' |
Entity Registrant Name | 'AARON'S INC | ' | ' |
Entity Central Index Key | '0000706688 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 71,977,000 | ' |
Entity Public Float | ' | ' | $2,114,241,463 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS: | ' | ' |
Cash and Cash Equivalents | $231,091 | $129,534 |
Investments | 112,391 | 85,861 |
Accounts Receivable (net of allowances of $7,172 in 2013 and $6,001 in 2012) | 68,684 | 74,157 |
Lease Merchandise (net of accumulated depreciation of $594,436 in 2013 and $575,527 in 2012) | 869,725 | 964,067 |
Property, Plant and Equipment, Net | 231,293 | 230,598 |
Goodwill | 239,181 | 234,195 |
Other Intangibles, Net | 3,535 | 6,026 |
Prepaid Expenses and Other Assets | 55,436 | 77,387 |
Assets Held for Sale | 15,840 | 11,104 |
Total Assets | 1,827,176 | 1,812,929 |
LIABILITIES & SHAREHOLDERS’ EQUITY: | ' | ' |
Accounts Payable and Accrued Expenses | 243,910 | 225,532 |
Accrued Regulatory Expense | 28,400 | 0 |
Deferred Income Taxes Payable | 226,958 | 263,721 |
Customer Deposits and Advance Payments | 45,241 | 46,022 |
Credit Facilities | 142,704 | 141,528 |
Total Liabilities | 687,213 | 676,803 |
Commitments and Contingencies (Note 8) | ' | ' |
Shareholders’ Equity: | ' | ' |
Common Stock: Par Value $.50 Per Share; Authorized: 225,000,000; Shares Issued: 90,752,123 at December 31, 2013 and December 31, 2012, respectively | 45,376 | 45,376 |
Additional Paid-in Capital | 198,182 | 220,362 |
Retained Earnings | 1,202,219 | 1,087,032 |
Accumulated Other Comprehensive Loss | -64 | -69 |
Stockholders' Equity before Treasury Stock, Total | 1,445,713 | 1,352,701 |
Common Stock: 17,795,293 Shares at December 31, 2013 and 15,031,741 Shares at December 31, 2012 | -305,750 | -216,575 |
Total Shareholders’ Equity | 1,139,963 | 1,136,126 |
Total Liabilities & Shareholders’ Equity | $1,827,176 | $1,812,929 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts Receivable, allowances | $7,172 | $6,001 |
Accumulated Depreciation on Lease Merchandise | $594,436 | $575,527 |
Common Stock, Par Value | $0.50 | $0.50 |
Common Stock, Shares Authorized | 225,000,000 | 225,000,000 |
Common Stock, Shares Issued | 90,752,123 | 90,752,123 |
Treasury Shares | 17,795,293 | 15,031,741 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUES: | ' | ' | ' |
Lease Revenues and Fees | $1,748,699 | $1,676,391 | $1,516,508 |
Retail Sales | 40,876 | 38,455 | 38,557 |
Non-Retail Sales | 371,292 | 425,915 | 388,960 |
Franchise Royalties and Fees | 68,575 | 66,655 | 63,255 |
Other | 5,189 | 5,411 | 5,298 |
Revenues | 2,234,631 | 2,212,827 | 2,012,578 |
COSTS AND EXPENSES: | ' | ' | ' |
Retail Cost of Sales | 24,318 | 21,608 | 22,619 |
Non-Retail Cost of Sales | 337,581 | 387,362 | 351,887 |
Operating Expenses | 1,022,684 | 952,617 | 866,600 |
Legal and Regulatory Expense/(Income) | 28,400 | -35,500 | 36,500 |
Retirement and Vacation Charges | 4,917 | 10,394 | 3,532 |
Depreciation of Lease Merchandise | 628,089 | 601,552 | 547,839 |
Other Operating Expense (Income), Net | 1,584 | -2,235 | -3,550 |
Costs and Expenses, Total | 2,047,573 | 1,935,798 | 1,825,427 |
OPERATING PROFIT | 187,058 | 277,029 | 187,151 |
Interest Income | 2,998 | 3,541 | 1,718 |
Interest Expense | -5,613 | -6,392 | -4,709 |
Other Non-Operating Income (Expense), Net | 517 | 2,677 | -783 |
EARNINGS BEFORE INCOME TAXES | 184,960 | 276,855 | 183,377 |
INCOME TAXES | 64,294 | 103,812 | 69,610 |
NET EARNINGS | $120,666 | $173,043 | $113,767 |
EARNINGS PER SHARE | $1.59 | $2.28 | $1.46 |
EARNINGS PER SHARE ASSUMING DILUTION | $1.58 | $2.25 | $1.43 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' |
Net Earnings | $120,666 | $173,043 | $113,767 |
Foreign Currency Translation: | ' | ' | ' |
Foreign Currency Translation Adjustment | 5 | -343 | -648 |
Less: Reclassification Adjustments for Net Gains Included in Net Earnings | 0 | 373 | 0 |
Net Change | 5 | 30 | -648 |
Available-for-Sale Investments: | ' | ' | ' |
Change in Net Unrealized Losses on Available-for-Sale Investments | 0 | 0 | 88 |
Less: Reclassification Adjustment for Net Losses Included in Net Earnings | 0 | 0 | -88 |
Net Change | 0 | 0 | 0 |
Cash Flow Hedges: | ' | ' | ' |
Change in Net Unrealized Gains on Derivatives Designated as Cash Flow Hedges | 0 | 0 | -12 |
Less: Reclassification Adjustment for Net Gains Included in Net Earnings | 0 | 0 | 12 |
Net Change | 0 | 0 | 0 |
Total Other Comprehensive Income (Loss) | 5 | 30 | -648 |
Comprehensive Income | $120,671 | $173,073 | $113,119 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Treasury Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income Foreign Currency Translation | Accumulated Other Comprehensive (Loss) Income Available-for-Sale Investments | Accumulated Other Comprehensive (Loss) Income Cash Flow Hedges |
In Thousands | ||||||||
Beginning Balance at Dec. 31, 2010 | ' | ($77,641) | $45,376 | $201,752 | $809,084 | $922 | ($88) | $12 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | -10,665 | ' | ' | ' | ' | ' | ' |
Dividends, $.062, $.054 and $.049 per share in 2013, 2012 and 2011, respectively | ' | ' | ' | ' | -4,152 | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | 8,385 | ' | ' | ' | ' |
Reissued Shares (in shares) | ' | 737 | ' | ' | ' | ' | ' | ' |
Reissued Shares | ' | 7,493 | ' | 2,174 | ' | ' | ' | ' |
Repurchased Shares (in shares) | ' | -5,184 | ' | ' | ' | ' | ' | ' |
Repurchased Shares | ' | -129,958 | ' | ' | ' | ' | ' | ' |
Net Earnings | 113,767 | ' | ' | ' | 113,767 | ' | ' | ' |
Foreign Currency Translation Adjustment | -648 | ' | ' | ' | ' | -648 | ' | ' |
Change in Net Unrealized Losses on Available-for-Sale Investments | 0 | ' | ' | ' | ' | ' | 88 | ' |
Change in Net Unrealized Gains on Derivatives Designated as Cash Flow Hedges | -12 | ' | ' | ' | ' | ' | ' | -12 |
Ending Balance at Dec. 31, 2011 | ' | -200,106 | 45,376 | 212,311 | 918,699 | 274 | 0 | 0 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | -15,112 | ' | ' | ' | ' | ' | ' |
Dividends, $.062, $.054 and $.049 per share in 2013, 2012 and 2011, respectively | ' | ' | ' | ' | -4,710 | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | 6,374 | ' | ' | ' | ' |
Reissued Shares (in shares) | ' | 1,317 | ' | ' | ' | ' | ' | ' |
Reissued Shares | ' | 17,662 | ' | 1,677 | ' | ' | ' | ' |
Repurchased Shares (in shares) | ' | -1,237 | ' | ' | ' | ' | ' | ' |
Repurchased Shares | ' | -34,131 | ' | ' | ' | ' | ' | ' |
Net Earnings | 173,043 | ' | ' | ' | 173,043 | ' | ' | ' |
Foreign Currency Translation Adjustment | 30 | ' | ' | ' | ' | -343 | ' | ' |
Change in Net Unrealized Losses on Available-for-Sale Investments | 0 | ' | ' | ' | ' | ' | ' | ' |
Change in Net Unrealized Gains on Derivatives Designated as Cash Flow Hedges | 0 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | 1,136,126 | -216,575 | 45,376 | 220,362 | 1,087,032 | -69 | 0 | 0 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | -15,032 | ' | ' | ' | ' | ' | ' |
Dividends, $.062, $.054 and $.049 per share in 2013, 2012 and 2011, respectively | ' | ' | ' | ' | -5,479 | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | 2,250 | ' | ' | ' | ' |
Reissued Shares (in shares) | ' | 739 | ' | ' | ' | ' | ' | ' |
Reissued Shares | ' | 10,825 | ' | 570 | ' | ' | ' | ' |
Repurchased Shares (in shares) | ' | -3,502 | ' | ' | ' | ' | ' | ' |
Repurchased Shares | ' | -100,000 | ' | -25,000 | ' | ' | ' | ' |
Net Earnings | 120,666 | ' | ' | ' | 120,666 | ' | ' | ' |
Foreign Currency Translation Adjustment | 5 | ' | ' | ' | ' | 5 | ' | ' |
Change in Net Unrealized Losses on Available-for-Sale Investments | 0 | ' | ' | ' | ' | ' | ' | ' |
Change in Net Unrealized Gains on Derivatives Designated as Cash Flow Hedges | 0 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | $1,139,963 | ($305,750) | $45,376 | $198,182 | $1,202,219 | ($64) | $0 | $0 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | -17,795 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (Retained Earnings, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Retained Earnings | ' | ' | ' |
Dividends, per share | $0.07 | $0.06 | $0.05 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES: | ' | ' | ' |
Net Earnings | $120,666 | $173,043 | $113,767 |
Adjustments to Reconcile Net Earnings to Net Cash From Operating Activities: | ' | ' | ' |
Depreciation of Lease Merchandise | 628,089 | 601,552 | 547,839 |
Other Depreciation and Amortization | 57,016 | 56,783 | 52,832 |
Bad Debt Expense | 35,894 | 31,842 | 25,402 |
Stock-Based Compensation | 2,342 | 6,454 | 8,385 |
Loss (Gain) on Sale of Property, Plant, and Equipment and Assets Held for Sale | 613 | -397 | 1,172 |
Gain on Asset Dispositions | -705 | -265 | -3,045 |
Deferred Income Taxes | -36,763 | -23,241 | 59,449 |
Excess Tax Benefits From Stock-Based Compensation | -1,381 | -5,967 | -1,264 |
Other Changes, Net | 5,469 | 7,830 | -1,693 |
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions: | ' | ' | ' |
Additions to Lease Merchandise | -964,072 | -1,162,703 | -1,024,602 |
Book Value of Lease Merchandise Sold or Disposed | 425,673 | 469,897 | 433,433 |
Accounts Receivable | -30,419 | -18,528 | -43,211 |
Prepaid Expenses and Other Assets | -1,349 | -9,263 | -4,317 |
Income Tax Receivable | 22,688 | -22,379 | 79,762 |
Accounts Payable and Accrued Expenses | 16,893 | -4,635 | 18,885 |
Accrued Litigation Expense | 28,400 | -41,720 | 40,043 |
Customer Deposits and Advance Payments | -617 | 1,451 | 4,358 |
Cash Provided by Operating Activities | 308,437 | 59,754 | 307,195 |
INVESTING ACTIVITIES: | ' | ' | ' |
Purchase of Investments | -74,845 | -91,000 | -100,513 |
Proceeds from Maturities and Calls of Investments | 47,930 | 102,118 | 1,063 |
Additions to Property, Plant and Equipment | -58,145 | -65,073 | -78,211 |
Acquisitions of Businesses and Contracts | -10,898 | -30,799 | -32,176 |
Proceeds from Dispositions of Businesses and Contracts | 2,163 | 1,999 | 7,282 |
Proceeds from Sale of Property, Plant, and Equipment | 6,841 | 6,790 | 11,481 |
Cash Used by Investing Activities | -86,954 | -75,965 | -191,074 |
FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from Credit Facilities | 2,598 | 16,258 | 129,150 |
Repayments on Credit Facilities | -4,954 | -28,519 | -17,151 |
Acquisition of Treasury Stock | -125,000 | -34,131 | -127,193 |
Dividends Paid | -3,875 | -5,843 | -4,073 |
Excess Tax Benefits From Stock-Based Compensation | 1,381 | 5,967 | 1,264 |
Issuance of Stock Under Stock Option Plans | 9,924 | 15,756 | 6,117 |
Cash Used by Financing Activities | -119,926 | -30,512 | -11,886 |
Increase (Decrease) in Cash and Cash Equivalents | 101,557 | -46,723 | 104,235 |
Cash and Cash Equivalents at Beginning of Year | 129,534 | 176,257 | 72,022 |
Cash and Cash Equivalents at End of Year | 231,091 | 129,534 | 176,257 |
Cash Paid During the Year: | ' | ' | ' |
Interest | 5,614 | 6,498 | 3,983 |
Income Taxes | $54,027 | $145,370 | $10,991 |
Business_And_Summary_Of_Signif
Business And Summary Of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Text Block [Abstract] | ' | |||||||||||
Business And Summary Of Significant Accounting Policies | ' | |||||||||||
NOTE 1: BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Description of Business | ||||||||||||
Aaron’s, Inc. (the “Company” or “Aaron’s”) is a leading specialty retailer engaged in the business of leasing and selling consumer electronics, computers, furniture, appliances and household accessories throughout the United States and Canada. The Company’s major operating divisions are the Sales & Lease Ownership division (established as a monthly payment concept), the HomeSmart division (established as a weekly payment concept) and the Woodhaven Furniture Industries division, which manufactures upholstered furniture and bedding predominantly for use by Company-operated and franchised stores. The Company’s Sales & Lease Ownership division includes the Company’s RIMCO stores, which lease automobile tires, wheels and rims under sales and lease ownership agreements. In January of 2014, we sold our 27 Company-operated RIMCO stores and the rights to five franchised RIMCO stores. | ||||||||||||
The following table presents store count by ownership type: | ||||||||||||
Stores at December 31 (Unaudited) | 2013 | 2012 | 2011 | |||||||||
Company-operated stores | ||||||||||||
Sales and Lease Ownership | 1,262 | 1,227 | 1,144 | |||||||||
HomeSmart | 81 | 78 | 71 | |||||||||
RIMCO | 27 | 19 | 16 | |||||||||
Aaron’s Office Furniture | — | — | 1 | |||||||||
Total Company-operated stores | 1,370 | 1,324 | 1,232 | |||||||||
Franchised stores1 | 781 | 749 | 713 | |||||||||
Systemwide stores | 2,151 | 2,073 | 1,945 | |||||||||
1 As of December 31, 2013, 2012 and 2011, 940, 929 and 943 franchises had been awarded, respectively. | ||||||||||||
Basis of Presentation | ||||||||||||
The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Generally, actual experience has been consistent with management’s prior estimates and assumptions. Management does not believe these estimates or assumptions will change significantly in the future absent unsurfaced and unforeseen events. | ||||||||||||
Certain reclassifications have been made to the prior periods to conform to the current period presentation. In all periods presented, the Company's RIMCO operations have been reclassified from the Sales and Lease Ownership segment to the RIMCO segment in Note 11 to the consolidated financial statements. | ||||||||||||
Principles of Consolidation and Variable Interest Entities | ||||||||||||
The consolidated financial statements include the accounts of Aaron’s, Inc. and its wholly owned subsidiaries. Intercompany balances and transactions between consolidated entities have been eliminated. | ||||||||||||
On October 14, 2011, the Company purchased 11.5% of newly issued shares of common stock of Perfect Home Holdings Limited (“Perfect Home”), a privately-held rent-to-own company that is primarily financed by share capital and subordinated debt. Perfect Home is based in the U.K. and operated 64 retail stores as of December 31, 2013. As part of the transaction, the Company also received notes and an option to acquire the remaining interest in Perfect Home at any time through December 31, 2013. The Company did not exercise this purchase option but is in discussions with the owners of Perfect Home to extend the notes through June 2015. The Company’s investment is denominated in British Pounds. | ||||||||||||
Perfect Home is a variable interest entity (“VIE”) as it does not have sufficient equity at risk; however, the Company is not the primary beneficiary and lacks the power through voting or similar rights to direct the activities of Perfect Home that most significantly affect its economic performance. As such, the VIE is not consolidated by the Company. | ||||||||||||
Because the Company is not able to exercise significant influence over the operating and financial decisions of Perfect Home, the equity portion of the investment in Perfect Home, totaling less than a thousand dollars at December 31, 2013 and 2012, respectively, is accounted for as a cost method investment and is included in prepaid expenses and other assets in the consolidated balance sheets. The notes purchased from Perfect Home totaling £12.5 million ($20.7 million) and £11.4 million ($18.4 million) at December 31, 2013 and 2012, respectively, are accounted for as held-to-maturity securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Debt and Equity Securities, and are included in investments in the consolidated balance sheets. The increase in the Company’s British pound-denominated notes during the year ended December 31, 2013 relates to accretion of the original discount on the notes with a face value of £10.0 million. Utilizing a Black-Scholes model, the options to buy the remaining interest in Perfect Home and to sell the Company’s interest in Perfect Home were determined to have only nominal values. | ||||||||||||
The Company’s maximum exposure to any potential losses associated with this VIE is equal to its total recorded investment which was $20.7 million at December 31, 2013. | ||||||||||||
Revenue Recognition | ||||||||||||
Lease Revenues and Fees | ||||||||||||
The Company provides merchandise, consisting of consumer electronics, computers, furniture, appliances, and household accessories, to its customers for lease under certain terms agreed to by the customer. Two primary lease models are offered to customers: one through the Company’s Sales & Lease Ownership division (established as a monthly model) and the other through its HomeSmart division (established as a weekly model). The typical monthly lease model is 12, 18 or 24 months, while the typical weekly lease model is 60, 90 or 120 weeks. The Company does not require deposits upon inception of customer agreements. | ||||||||||||
In a number of states, the Company utilizes a consumer lease form as an alternative to a typical lease purchase agreement. The consumer lease differs from our state lease agreement in that it has an initial lease term in excess of four months. Generally, state laws that govern the rent-to-own industry only apply to lease agreements with an initial term of four months or less. Following satisfaction of the initial term contained in the consumer or state lease, as applicable, the customer has the right to acquire title either through a purchase option or through payment of all required lease payments. | ||||||||||||
All of the Company’s customer agreements are considered operating leases under the provisions of ASC 840, Leases. As such, lease revenues are recognized as revenue in the month they are due. Lease payments received prior to the month due are recorded as deferred lease revenue, which is included in customer deposits and advance payments in the accompanying consolidated balance sheets. Until all payment obligations are satisfied under sales and lease ownership agreements, the Company maintains ownership of the lease merchandise. Initial direct costs related to the Company’s customer agreements are expensed as incurred and have been classified as operating expenses in the Company’s consolidated statements of earnings. | ||||||||||||
Retail and Non-Retail Sales | ||||||||||||
Revenues from the sale of merchandise to franchisees are recognized at the time of receipt of the merchandise by the franchisee based on the electronic receipt of merchandise by the franchisee within the Company’s fulfillment system. Additionally, revenues from the sale of merchandise to other customers are recognized at the time of shipment, at which time title and risk of ownership are transferred to the customer. | ||||||||||||
Substantially all of the amounts reported as non-retail sales and non-retail cost of sales in the accompanying consolidated statements of earnings relate to the sale of lease merchandise to franchisees. The Company classifies the sale of merchandise to other customers as retail sales in the consolidated statements of earnings. The Company presents sales net of sales taxes. | ||||||||||||
Franchise Royalties and Fees | ||||||||||||
The Company franchises its Aaron's Sales & Lease Ownership and HomeSmart stores in markets where the Company has no immediate plans to enter. Franchisees typically pay a non-refundable initial franchise fee from $15,000 to $50,000 depending upon market size and an ongoing royalty of either 5% or 6% of gross revenues. Franchise fees and area development fees are generated from the sale of rights to develop, own and operate sales and lease ownership stores. These fees are recognized as income when substantially all of the Company’s obligations per location are satisfied, generally at the date of the store opening. Franchise fees and area development fees are received before the substantial completion of the Company’s obligations and are deferred. The Company guarantees certain debt obligations of some of the franchisees and receives guarantee fees based on the outstanding debt obligations of such franchisees. The Company recognizes finance fee revenue as the guarantee obligation is satisfied. Refer to Note 8 for additional discussion of the Company’s franchise-related guarantee obligation. | ||||||||||||
Franchise agreement fee revenue was $1.7 million, $2.4 million and $2.6 million; royalty revenue was $59.1 million, $56.5 million and $52.0 million; and finance fee revenue was $5.1 million, $4.9 million and $5.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. Deferred franchise and area development agreement fees, included in accounts payable and accrued expenses in the accompanying consolidated balance sheets, were $3.4 million and $3.8 million at December 31, 2013 and 2012, respectively. | ||||||||||||
Retail and Non-Retail Cost of Sales | ||||||||||||
Included in cost of sales is the net book value of merchandise sold, primarily using specific identification. It is not practicable to allocate operating expenses between selling and lease operations. | ||||||||||||
Shipping and Handling Costs | ||||||||||||
The Company classifies shipping and handling costs as operating expenses in the accompanying consolidated statements of earnings, and these costs totaled $78.6 million, $74.9 million and $68.1 million in 2013, 2012 and 2011, respectively. | ||||||||||||
Advertising | ||||||||||||
The Company expenses advertising costs as incurred. Advertising production costs are expensed when an advertisement appears for the first time. Such advertising costs amounted to $43.0 million, $36.5 million and $38.9 million in 2013, 2012 and 2011, respectively. These advertising expenses are shown net of cooperative advertising considerations received from vendors, substantially all of which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products. The amount of cooperative advertising consideration netted against advertising expense was $25.0 million, $31.1 million and $25.4 million in 2013, 2012 and 2011, respectively. The prepaid advertising asset was $2.4 million and $3.2 million at December 31, 2013 and 2012, respectively. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company has stock-based employee compensation plans, which are more fully described in Note 10. The Company estimates the fair value for the options granted on the grant date using a Black-Scholes option-pricing model and accounts for stock-based compensation under the fair value recognition provisions codified in ASC Topic 718, Stock Compensation. The fair value of each share of restricted stock awarded is equal to the market value of a share of the Company’s common stock on the grant date. | ||||||||||||
Deferred Income Taxes | ||||||||||||
Deferred income taxes represent primarily temporary differences between the amounts of assets and liabilities for financial and tax reporting purposes. The Company’s largest temporary differences arise principally from the use of accelerated depreciation methods on lease merchandise for tax purposes. | ||||||||||||
Earnings per Share | ||||||||||||
Earnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. The computation of earnings per share assuming dilution includes the dilutive effect of stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) as determined under the treasury stock method. The following table shows the calculation of dilutive stock awards for the years ended December 31 (shares in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average shares outstanding | 75,747 | 75,820 | 78,101 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options | 421 | 789 | 998 | |||||||||
RSUs | 206 | 210 | 237 | |||||||||
RSAs | 16 | 7 | 3 | |||||||||
Weighted average shares outstanding assuming dilution | 76,390 | 76,826 | 79,339 | |||||||||
Approximately 53,000 stock-based awards were excluded from the computations of earnings per share assuming dilution in 2012 because the awards would have been anti-dilutive for the year presented. No stock options, RSUs or RSAs were anti-dilutive during 2013 or 2011. In addition, under the terms of the Company’s performance-based RSUs, approximately 175,000 RSUs may be earned based on the achievement of revenue and pre-tax profit margin targets applicable to performance periods beginning subsequent to December 31, 2013. Refer to Note 10 for additional information regarding the Company’s restricted stock arrangements. | ||||||||||||
Lease Merchandise | ||||||||||||
The Company’s lease merchandise consists primarily of consumer electronics, computers, furniture, appliances, and household accessories and is recorded at cost, which includes overhead from production facilities, shipping costs and warehousing costs. The sales and lease ownership stores depreciate merchandise over the lease agreement period, generally 12 to 24 months (monthly agreements) or 60 to 120 weeks (weekly agreements) when on lease and 36 months when not on lease, to a 0% salvage value. The Company’s policies require weekly lease merchandise counts at the store, which include write-offs for unsalable, damaged, or missing merchandise inventories. Full physical inventories are generally taken at the fulfillment and manufacturing facilities two to four times a year, and appropriate provisions are made for missing, damaged and unsalable merchandise. In addition, the Company monitors lease merchandise levels and mix by division, store, and fulfillment center, as well as the average age of merchandise on hand. If unsalable lease merchandise cannot be returned to vendors, it is adjusted to its net realizable value or written off. | ||||||||||||
All lease merchandise is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off. The Company records lease merchandise adjustments on the allowance method. Lease merchandise write-offs totaled $58.0 million, $54.9 million and $46.2 million during the years ended December 31, 2013, 2012 and 2011, respectively, and are included in operating expenses in the accompanying consolidated statements of earnings. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
The Company classifies highly liquid investments with maturity dates of less than three months when purchased as cash equivalents. The Company maintains its cash and cash equivalents in a limited number of banks. Bank balances typically exceed coverage provided by the Federal Deposit Insurance Corporation. However, due to the size and strength of the banks where the balances are held, such exposure to loss is considered minimal. | ||||||||||||
Investments | ||||||||||||
The Company maintains investments in various corporate debt securities, or bonds. The Company has the positive intent and ability to hold its investments in debt securities to maturity. Accordingly, the Company classifies its investments in debt securities, which mature at various dates from 2014 to 2015, as held-to-maturity securities and carries the investments at amortized cost in the consolidated balance sheets. | ||||||||||||
The Company evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. | ||||||||||||
Accounts Receivable | ||||||||||||
Accounts receivable consist primarily of receivables due from customers of Company-operated stores, corporate receivables incurred during the normal course of business (primarily related to vendor consideration, real estate leasing activities and in-transit credit card transactions) and franchisee obligations. Accounts receivable, net of allowances, consists of the following as of December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | ||||||||||
Customers | $ | 8,275 | $ | 7,840 | ||||||||
Corporate | 16,730 | 17,215 | ||||||||||
Franchisee | 43,679 | 49,102 | ||||||||||
$ | 68,684 | $ | 74,157 | |||||||||
The Company maintains an allowance for doubtful accounts. The reserve for returns is calculated based on the historical collection experience associated with lease receivables. The Company’s policy is to write off lease receivables that are 60 days or more past due on pre-determined dates occurring twice monthly. The following is a summary of the Company’s allowance for doubtful accounts as of December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
Beginning Balance | $ | 6,001 | $ | 4,768 | $ | 4,544 | ||||||
Accounts written off | (34,723 | ) | (30,609 | ) | (25,178 | ) | ||||||
Bad debt expense | 35,894 | 31,842 | 25,402 | |||||||||
Ending Balance | $ | 7,172 | $ | 6,001 | $ | 4,768 | ||||||
Property, Plant and Equipment | ||||||||||||
The Company records property, plant and equipment at cost. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the respective assets, which range from five to 40 years for buildings and improvements and from one to fifteen years for other depreciable property and equipment. Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software, which ranges from five to 10 years. | ||||||||||||
Gains and losses related to dispositions and retirements are recognized as incurred. Maintenance and repairs are also expensed as incurred; renewals and betterments are capitalized. Depreciation expense for property, plant and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $53.3 million, $53.1 million and $45.2 million during the years ended December 31, 2013, 2012 and 2011, respectively. Amortization of previously capitalized software development costs, which is a component of depreciation expense for property, plant and equipment, was $3.3 million, $2.6 million and $1.5 million during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
The Company assesses its long-lived assets other than goodwill for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. When it is determined that the carrying values of the assets are not recoverable, the Company compares the carrying values of the assets to their fair values as estimated using discounted expected future cash flows, market values or replacement values for similar assets. The amount by which the carrying value exceeds the fair value of the asset, if any, is recognized as an impairment loss. | ||||||||||||
Assets Held for Sale | ||||||||||||
Certain properties, primarily consisting of parcels of land and commercial buildings, met the held for sale classification criteria at December 31, 2013 and 2012. After adjustment to fair value, the $15.8 million and $11.1 million carrying value of these properties has been classified as assets held for sale in the consolidated balance sheets as of December 31, 2013 and 2012, respectively. The Company estimated the fair values of these properties using market values for similar properties and these properties are considered Level 2 assets as defined in ASC Topic 820, Fair Value Measurements. | ||||||||||||
The Company recorded impairment charges of $3.8 million, $1.1 million and $453,000 in 2013, 2012 and 2011, respectively. Such impairment charges related primarily to the impairment of various land outparcels and buildings included in the Sales and Lease Ownership segment that the Company decided not to utilize for future expansion and are generally included in other operating expense (income), net within the consolidated statements of earnings. Impairment charges for the year ended December 31, 2013 included a $766,000 write-down of the net assets of the RIMCO operating segment in connection with the Company's decision to sell the 27 Company-operated RIMCO stores and has been included in the results of the Other segment. Gains and losses on the disposal of assets held for sale amounted to net gains of $1,247,000 in 2012 and were not significant in 2013 and 2011. | ||||||||||||
As of December 31, 2013, $9.7 million of assets held for sale are included in the RIMCO segment (principally consisting of $7.2 million of lease merchandise and $2.5 million of property, plant and equipment) and $6.2 million of assets held for sale are included in the Other segment. | ||||||||||||
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. Impairment occurs when the carrying value of goodwill is not recoverable from future cash flows. The Company performs an assessment of goodwill for impairment at the reporting unit level annually as of September 30 and when events or circumstances indicate that impairment may have occurred. Factors which could necessitate an interim impairment assessment include a sustained decline in the Company’s stock price, prolonged negative industry or economic trends and significant underperformance relative to historical or projected future operating results. | ||||||||||||
The Company has deemed its operating segments to be reporting units due to the fact that operations (stores) included in each operating segment have similar economic characteristics. As of December 31, 2013, the Company had five operating segments and reporting units: Sales and Lease Ownership, HomeSmart, RIMCO, Franchise and Manufacturing. As of December 31, 2013, the Company’s Sales and Lease Ownership and HomeSmart reporting units were the only reporting units with assigned goodwill balances. The following is a summary of the Company’s goodwill by reporting unit at December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | ||||||||||
Sales and Lease Ownership | $ | 224,523 | $ | 219,547 | ||||||||
HomeSmart | 14,658 | 14,648 | ||||||||||
Total | $ | 239,181 | $ | 234,195 | ||||||||
The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of the reporting unit to its carrying value, including goodwill. The Company uses a combination of valuation techniques to determine the fair value of its reporting units, including a multiple of gross revenue approach and discounted cash flow models that use assumptions consistent with those we believe hypothetical marketplace participants would use. The results of the market multiple and discounted cash flow models are evenly weighted in determining reporting unit fair value. | ||||||||||||
If the carrying value of the reporting unit exceeds the fair value, a second step is performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. | ||||||||||||
During the performance of the annual assessment of goodwill for impairment in the 2013, 2012 and 2011 fiscal years, the Company did not identify any reporting units that were not substantially in excess of their carrying values, other than the HomeSmart division for which locations were recently acquired. While no impairment was noted in our impairment test as of September 30, 2013, if profitability is delayed as a result of the significant start-up expenses associated with the HomeSmart stores, there could be a change in the valuation of the HomeSmart reporting unit that may result in the recognition of an impairment loss in future periods. | ||||||||||||
No new indications of impairment existed during the fourth quarter of 2013. As a result, no impairment testing was updated as of December 31, 2013. | ||||||||||||
Other Intangibles | ||||||||||||
Other intangibles represent the value of customer relationships, non-compete agreements and franchise development rights acquired in connection with business acquisitions and are recorded at fair value as determined by the Company. The customer relationship intangible asset is amortized on a straight-line basis over a two-year estimated useful life. The non-compete intangible asset is amortized on a straight-line basis over a three-year useful life. Acquired franchise development rights are amortized on a straight-line basis over the unexpired life of the franchisee’s ten year area development agreement. | ||||||||||||
Insurance Reserves | ||||||||||||
Estimated insurance reserves are accrued primarily for group health, general liability, automobile liability and workers compensation benefits provided to the Company’s employees. Estimates for these insurance reserves are made based on actual reported but unpaid claims and actuarial analyses of the projected claims run off for both reported and incurred but not reported claims. | ||||||||||||
Asset Retirement Obligations | ||||||||||||
The Company accrues for asset retirement obligations, which relate to expected costs to remove exterior signage, in the period in which the obligations are incurred. These costs are accrued at estimated fair value. When the related liability is initially recorded, the Company capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its settlement value and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company recognizes a gain or loss for any differences between the settlement amount and the liability recorded. Asset retirement obligations amounted to approximately $2.4 million and $2.3 million as of December 31, 2013 and 2012, respectively. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
The Company utilizes derivative financial instruments, from time to time, to mitigate its exposure to certain market risks associated with its ongoing operations for a portion of the year. The primary risk it seeks to manage through the use of derivative financial instruments is commodity price risk, including the risk of increases in the market price of diesel fuel used in the Company’s delivery vehicles. All derivative financial instruments are recorded at fair value on the consolidated balance sheets. The Company does not use derivative financial instruments for trading or speculative purposes. The Company is exposed to counterparty credit risk on all its derivative financial instruments. The counterparties to these contracts are high credit quality commercial banks, which the Company believes largely minimizes the risk of counterparty default. The Company did not hold any derivative financial instruments as of December 31, 2013 or 2012. | ||||||||||||
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 our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | ||||||||||||
The Company measures assets held for sale at fair value on a nonrecurring basis and records impairment charges when they are deemed to be impaired. The Company maintains certain financial assets and liabilities, including investments and fixed-rate long term debt, 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. | ||||||||||||
Foreign Currency | ||||||||||||
The financial statements of international subsidiaries are translated to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenues, costs and expenses. Translation gains and losses of international subsidiaries are recorded in accumulated other comprehensive income as a component of shareholders’ equity. Foreign currency transaction gains and losses are recorded as a component of other non-operating income (expense), net in the consolidated statements of earnings and amounted to losses of approximately $1.0 million and $465,000 during 2013 and 2011, respectively, and gains of $2.0 million during 2012. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
In February 2013, the FASB issued Accounting Standards Update 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-2”). ASU 2013-2 requires preparers to report, in one place, information about reclassifications out of accumulated other comprehensive income (“AOCI”). ASU 2013-2 also requires companies to report changes in AOCI balances. For significant items reclassified out of AOCI to net income in their entirety in the same reporting period, reporting (either on the face of the statement where net income is presented or in the notes) is required about the effect of the reclassifications on the respective line items in the statement where net income is presented. For items that are not reclassified to net income in their entirety in the same reporting period, a cross reference to other disclosures currently required under US GAAP is required in the notes. The above information must be presented in one place (parenthetically on the face of the financial statements by income statement line item or in a note). ASU 2013-2 was effective for the Company beginning in 2013. The adoption of ASU 2013-2 did not have a material effect on the Company's consolidated financial statements. |
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Text Block [Abstract] | ' | |||||||||||
Acquisitions and Dispositions | ' | |||||||||||
NOTE 2: ACQUISITIONS AND DISPOSITIONS | ||||||||||||
Acquisitions | ||||||||||||
The following table summarizes the Company’s acquisitions of lease contracts, merchandise and the related assets of sales and lease ownership stores, none of which was individually material to the Company’s consolidated financial statements, during the years ended December 31: | ||||||||||||
(In Thousands, except for store data) | 2013 | 2012 | 2011 | |||||||||
Number of stores acquired, net | 10 | 22 | 52 | |||||||||
Aggregate purchase price (primarily cash consideration) | $ | 10,898 | $ | 31,617 | $ | 41,425 | ||||||
Purchase price allocation: | ||||||||||||
Lease Merchandise | 4,016 | 11,936 | 13,385 | |||||||||
Property, Plant and Equipment | 467 | 739 | 500 | |||||||||
Other Current Assets and Current Liabilities | (228 | ) | 38 | 34 | ||||||||
Identifiable Intangible Assets1: | ||||||||||||
Customer Relationships | 557 | 1,725 | 2,675 | |||||||||
Non-Compete Agreements | 405 | 1,201 | 1,688 | |||||||||
Acquired Franchise Development Rights | 252 | 764 | 255 | |||||||||
Goodwill2 | 5,429 | 15,214 | 22,888 | |||||||||
1 The weighted-average amortization period for the Company’s acquired intangible assets was 2.9 years, 3.1 years and 2.6 years in 2013, 2012 and 2011, respectively. The weighted-average amortization period by major intangible asset class for acquisitions completed during 2013, 2012 and 2011 was 2 years for customer relationships, 3 years for non-compete agreements and a range of 4.9 years to 6.9 years for acquired franchise development rights. | ||||||||||||
2 Goodwill recognized from acquisitions primarily relates to the future strategic benefits expected to be realized upon integrating the business. All goodwill resulting from the Company’s 2013, 2012 and 2011 acquisitions is expected to be deductible for tax purposes. | ||||||||||||
Acquisitions have been accounted for as business combinations, and the results of operations of the acquired businesses are included in the Company’s results of operations from their dates of acquisition. The effect of these acquisitions on the 2013, 2012 and 2011 consolidated financial statements was not significant. The purchase price allocations related to current year acquisitions are tentative and preliminary. | ||||||||||||
Dispositions | ||||||||||||
The Company periodically sells sales and lease ownership stores to franchisees and third-party operators. The Company sold two, three and 25 of its Aaron’s Sales and Lease Ownership stores in 2013, 2012 and 2011, respectively. The effect of these sales on the consolidated financial statements was not significant. | ||||||||||||
The Company began ceasing the operations of the Aaron’s Office Furniture division in June of 2010. The Company closed 14 of its Aaron’s Office Furniture stores during 2010 and sold the remaining store in August 2012. There were no significant charges related to the closure of this division in 2013, 2012 or 2011. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||
Goodwill And Intangible Assets | ' | |||||||||||||||||||||||
NOTE 3: GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The following table provides information related to the carrying value of the Company’s goodwill by operating segment: | ||||||||||||||||||||||||
(In Thousands) | Sales and Lease | HomeSmart | Total | |||||||||||||||||||||
Ownership | ||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 205,509 | $ | 13,833 | $ | 219,342 | ||||||||||||||||||
Additions | 14,399 | 815 | 15,214 | |||||||||||||||||||||
Disposals | (361 | ) | — | (361 | ) | |||||||||||||||||||
Balance at December 31, 2012 | 219,547 | 14,648 | 234,195 | |||||||||||||||||||||
Additions | 5,429 | — | 5,429 | |||||||||||||||||||||
Disposals | (499 | ) | — | (499 | ) | |||||||||||||||||||
Purchase Price Adjustments | 46 | 10 | 56 | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 224,523 | $ | 14,658 | $ | 239,181 | ||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
The following is a summary of the Company’s identifiable intangible assets by category at December 31: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(In Thousands) | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Customer Relationships | $ | 2,282 | $ | (1,463 | ) | $ | 819 | $ | 4,377 | $ | (2,170 | ) | $ | 2,207 | ||||||||||
Non-Compete Agreements | 3,265 | (2,001 | ) | 1,264 | 3,408 | (1,471 | ) | 1,937 | ||||||||||||||||
Acquired Franchise Development Rights | 3,529 | (2,077 | ) | 1,452 | 4,566 | (2,684 | ) | 1,882 | ||||||||||||||||
Total | $ | 9,076 | $ | (5,541 | ) | $ | 3,535 | $ | 12,351 | $ | (6,325 | ) | $ | 6,026 | ||||||||||
Total amortization expense of intangible assets, included in operating expenses in the accompanying consolidated statements of earnings, was $3.7 million, $3.7 million and $2.3 million during the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, estimated future amortization expense for the next five years related to identifiable intangible assets is as follows: | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
2014 | $ | 1,983 | ||||||||||||||||||||||
2015 | 793 | |||||||||||||||||||||||
2016 | 367 | |||||||||||||||||||||||
2017 | 201 | |||||||||||||||||||||||
2018 | 98 | |||||||||||||||||||||||
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||
Fair Value Measurement | ' | |||||||||||||||||||||||
NOTE 4: 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: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Deferred Compensation Liability | $ | — | $ | (12,557 | ) | $ | — | $ | — | $ | (9,518 | ) | $ | — | ||||||||||
The Company maintains a deferred compensation plan as described in Note 14 to these consolidated financial statements. The liability representing benefits accrued for plan participants 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. | ||||||||||||||||||||||||
Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||
The following table summarizes non-financial assets measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets Held for Sale | $ | — | $ | 15,840 | $ | — | $ | — | $ | 11,104 | $ | — | ||||||||||||
Assets held for sale includes real estate properties that consist mostly of parcels of land and commercial buildings, as well as the net assets of the RIMCO operating segment (principally consisting of lease merchandise, office furniture and leasehold improvements) in connection with the Company's decision to sell the 27 Company-operated RIMCO stores. The highest and best use of these assets is as real estate land parcels for development or real estate properties for use or lease; however, the Company has chosen not to develop or use these properties. In accordance with ASC Topic 360, Property, Plant and Equipment, assets held for sale are written down to fair value, and the adjustment is recorded in other operating expense (income), net. The Company estimated the fair values of real estate properties using the market values for similar properties. The impairment loss recorded for the RIMCO disposal group was based on our expectations of a sale price as compared to our estimation of the net assets to be sold at closing. | ||||||||||||||||||||||||
Certain Financial Assets and Liabilities Not Measured at Fair Value | ||||||||||||||||||||||||
The following table summarizes the fair value of assets (liabilities) that are not measured at fair value in the consolidated balance sheets, but for which the fair value is disclosed: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Corporate Bonds 1 | $ | — | $ | 91,785 | $ | — | $ | — | $ | 67,470 | $ | — | ||||||||||||
Perfect Home Notes 2 | — | — | 20,661 | — | — | 18,449 | ||||||||||||||||||
Fixed-Rate Long Term Debt 3 | — | (130,687 | ) | — | — | (127,261 | ) | — | ||||||||||||||||
1 The fair value of corporate bonds is determined through the use of model-based valuation techniques for which all significant assumptions are observable in the market. | ||||||||||||||||||||||||
2 The Perfect Home notes were initially valued at cost. The Company periodically reviews the valuation utilizing company-specific transactions or changes in Perfect Home's financial performance to determine if fair value adjustments are necessary. | ||||||||||||||||||||||||
3 The fair value of fixed-rate long term debt is estimated using the present value of underlying cash flows discounted at a current market yield for similar instruments. The carrying value of fixed-rate long term debt was $125.0 million at December 31, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Held-to-Maturity Securities | ||||||||||||||||||||||||
The Company classifies its investments in debt securities as held-to-maturity securities based on its intent and ability to hold these securities to maturity. Accordingly, the debt securities, which mature at various dates during 2014 to 2015, are recorded at amortized cost in the consolidated balance sheets. At December 31, 2013 and 2012, investments classified as held-to-maturity securities consisted of the following: | ||||||||||||||||||||||||
Gross Unrealized | ||||||||||||||||||||||||
(In Thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Corporate Bonds | $ | 91,730 | $ | 98 | $ | (43 | ) | $ | 91,785 | |||||||||||||||
Perfect Home Notes | 20,661 | — | — | 20,661 | ||||||||||||||||||||
Total | $ | 112,391 | $ | 98 | $ | (43 | ) | $ | 112,446 | |||||||||||||||
2012 | ||||||||||||||||||||||||
Corporate Bonds | $ | 67,412 | $ | 99 | $ | (41 | ) | $ | 67,470 | |||||||||||||||
Perfect Home Notes | 18,449 | — | — | 18,449 | ||||||||||||||||||||
Total | $ | 85,861 | $ | 99 | $ | (41 | ) | $ | 85,919 | |||||||||||||||
The amortized cost and fair value of held-to-maturity securities by contractual maturity as of December 31, 2013 are as follows: | ||||||||||||||||||||||||
(In Thousands) | Amortized Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | 55,250 | $ | 55,284 | ||||||||||||||||||||
Due in years one through two | 57,141 | 57,162 | ||||||||||||||||||||||
Total | $ | 112,391 | $ | 112,446 | ||||||||||||||||||||
Information pertaining to held-to-maturity securities with gross unrealized losses is as follows. | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
(In Thousands) | Fair Value | Gross Unrealized | Fair Value | Gross Unrealized | ||||||||||||||||||||
Losses | Losses | |||||||||||||||||||||||
Corporate Bonds | $ | 31,453 | $ | (43 | ) | $ | 22,785 | $ | (41 | ) | ||||||||||||||
The unrealized losses relate principally to the increases in short-term market interest rates that occurred since the securities were purchased. As of December 31, 2013, 18 of the 48 securities are in an unrealized loss position and at December 31, 2012, 16 of the 38 securities were in an unrealized loss position. The fair value is expected to recover as the securities approach their maturities or if market yields for such investments decline. In analyzing an issuer’s financial condition, management considers whether downgrades by bond rating agencies have occurred. The Company has the intent and ability to hold the investments until their amortized cost basis is recovered on the maturity date. As a result of management’s analysis and review, no declines are deemed to be other than temporary. | ||||||||||||||||||||||||
The Company has estimated that the carrying value of its Perfect Home notes approximates fair value and, therefore, no impairment is considered to have occurred as of December 31, 2013. While no impairment was noted during 2013, if profitability is delayed as a result of the significant start-up expenses associated with Perfect Home, there could be a change in the valuation of the Perfect Home notes that may result in the recognition of an impairment loss in future periods. |
Property_Plant_And_Equipment
Property, Plant And Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Text Block [Abstract] | ' | |||||||
Property, Plant And Equipment | ' | |||||||
NOTE 5: PROPERTY, PLANT AND EQUIPMENT | ||||||||
Following is a summary of the Company’s property, plant, and equipment at December 31: | ||||||||
(In Thousands) | 2013 | 2012 | ||||||
Land | $ | 26,021 | $ | 25,285 | ||||
Buildings and Improvements | 84,520 | 81,773 | ||||||
Leasehold Improvements and Signs | 120,702 | 120,883 | ||||||
Fixtures and Equipment1 | 172,483 | 152,436 | ||||||
Assets Under Capital Leases: | ||||||||
with Related Parties | 10,574 | 8,158 | ||||||
with Unrelated Parties | 10,550 | 10,564 | ||||||
Construction in Progress | 4,347 | 5,414 | ||||||
429,197 | 404,513 | |||||||
Less: Accumulated Depreciation and Amortization | (197,904 | ) | (173,915 | ) | ||||
$ | 231,293 | $ | 230,598 | |||||
1 | Includes internal-use software development costs of $36.3 million and $22.6 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of internal-use software development costs amounted to $9.5 million and $6.6 million as of December 31, 2013 and 2012, respectively. | |||||||
Amortization expense on assets recorded under capital leases is included in operating expenses and was $1.7 million, $1.2 million and $1.2 million in 2013, 2012 and 2011, respectively. Capital leases consist of buildings and improvements. Assets under capital leases with related parties included $5.8 million and $4.8 million in accumulated depreciation and amortization as of December 31, 2013 and 2012, respectively. Assets under capital leases with unrelated parties included $5.1 million and $4.4 million in accumulated depreciation and amortization as of December 31, 2013 and 2012, respectively. |
Credit_Facilities
Credit Facilities | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Text Block [Abstract] | ' | |||||
Credit Facilities | ' | |||||
NOTE 6: CREDIT FACILITIES | ||||||
Following is a summary of the Company’s credit facilities at December 31: | ||||||
(In Thousands) | 2013 | 2012 | ||||
Senior Unsecured Notes | $125,000 | $125,000 | ||||
Capital Lease Obligation: | ||||||
with Related Parties | 7,412 | 6,122 | ||||
with Unrelated Parties | 7,042 | 7,156 | ||||
Other Debt | 3,250 | 3,250 | ||||
$142,704 | $141,528 | |||||
Bank Debt | ||||||
On October 8, 2013, the Company entered into the fifth amendment to its revolving credit agreement dated May 23, 2008, as previously amended. The amendment changes the “Restricted Payments” negative covenant, which imposes certain restrictions on the amount of payments that can be made in respect of dividends, distributions, redemptions and stock repurchases paid in cash, to make such covenant less restrictive. | ||||||
The Company’s revolving credit agreement, which expires December 13, 2017, is with several banks and provides for unsecured borrowings up to $140 million (including a letter of credit and swingline loan subfacility). Amounts borrowed bear interest at the lower of the lender’s prime rate or one-month LIBOR plus a margin ranging from 1.0% to 1.5% as determined by the Company’s ratio of total debt to EBITDA. At December 31, 2013 and 2012, there was a zero balance under the Company’s revolving credit agreement. The Company pays a commitment fee on unused balances, which ranges from 0.15% to 0.30% as determined by the Company’s ratio of total debt to EBITDA. | ||||||
The revolving credit agreement, senior unsecured notes discussed below and franchise loan program discussed in Note 8 contain financial covenants which, among other things, prohibit the Company from exceeding certain debt to EBITDA levels and require the maintenance of minimum fixed charge coverage ratios. If the Company fails to comply with these covenants, the Company will be in default under these agreements, and all amounts would become due immediately. Under the Company’s revolving credit agreement, senior unsecured notes and franchise loan program, the Company may pay cash dividends in any year so long as, after giving pro forma effect to the dividend payment, the Company maintains compliance with its financial covenants and no event of default has occurred or would result from the payment. | ||||||
At December 31, 2013, the Company was in compliance with all covenants. | ||||||
Senior Unsecured Notes | ||||||
On October 8, 2013, the Company entered into Amendment No. 2 to a note purchase agreement dated as of July 5, 2011 with several insurance companies. Pursuant to the note purchase agreement, the Company and certain of its subsidiaries as co-obligors, issued $125.0 million in senior unsecured notes to the purchasers in a private placement. The notes bear interest at the rate of 3.75% per year and mature on April 27, 2018. Payments of interest are due quarterly, commencing July 27, 2011, with principal payments of $25.0 million each due annually commencing April 27, 2014. | ||||||
The amendment revises the note purchase agreement to, among other things, (i) remove the “Minimum Consolidated Net Worth” financial covenant which previously required that the Company maintain a certain minimum consolidated net worth and (ii) change the “Restricted Payments” negative covenant, which imposes certain restrictions on the amount of payments that can be made in respect of dividends, distributions, redemptions and stock repurchases paid in cash, to make such covenant less restrictive. The Company remains subject to other financial covenants under the note purchase agreement, including maintaining a minimum ratio of debt to earnings before interest, taxes, depreciation, and amortization and a minimum fixed charge coverage ratio. | ||||||
Capital Leases with Related Parties | ||||||
As of December 31, 2013, the Company had 19 capital leases with a limited liability company (“LLC”) controlled by a group of executives, including the Company's former Chairman. In October and November 2004, the Company sold 11 properties, including leasehold improvements, to the LLC. The LLC obtained borrowings collateralized by the land and buildings totaling $6.8 million. The Company occupies the land and buildings collateralizing the borrowings under a 15-year term lease, with a five-year renewal at the Company’s option, at an aggregate annual rental of $716,000. The transaction has been accounted for as a financing in the accompanying consolidated financial statements. The rate of interest implicit in the leases is approximately 9.7%. Accordingly, the land and buildings, associated depreciation expense and lease obligations are recorded in the Company’s consolidated financial statements. No gain or loss was recognized in this transaction. | ||||||
In December 2002, the Company sold ten properties, including leasehold improvements, to the LLC. The LLC obtained borrowings collateralized by the land and buildings totaling $5.0 million. The Company occupies the land and buildings collateralizing the borrowings under a 15-year term lease at an aggregate annual rental of approximately $1,227,000. The transaction has been accounted for as a financing in the accompanying consolidated financial statements. The rate of interest implicit in the leases is approximately 10.1%. Accordingly, the land and buildings, associated depreciation expense and lease obligations are recorded in the Company’s consolidated financial statements. No gain or loss was recognized in this transaction. | ||||||
Sale-leasebacks | ||||||
The Company finances a portion of store expansion through sale-leaseback transactions. The properties are generally sold at net book value and the resulting leases qualify and are accounted for as operating leases. The Company does not have any retained or contingent interests in the stores nor does the Company provide any guarantees, other than a corporate level guarantee of lease payments, in connection with the sale-leasebacks. | ||||||
Other Debt | ||||||
Other debt at December 31, 2013 and 2012 includes $3.3 million of industrial development corporation revenue bonds. The weighted-average interest rate on the outstanding bonds was .25% and .35% as of December 31, 2013 and 2012, respectively. No principal payments are due on the bonds until maturity in 2015. | ||||||
Future maturities under the Company’s long-term debt and capital lease obligations are as follows: | ||||||
(In Thousands) | ||||||
2014 | $ | 27,529 | ||||
2015 | 31,015 | |||||
2016 | 27,740 | |||||
2017 | 27,659 | |||||
2018 | 26,355 | |||||
Thereafter | 2,406 | |||||
$ | 142,704 | |||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Text Block [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
NOTE 7: INCOME TAXES | ||||||||||||
Following is a summary of the Company’s income tax expense for the years ended December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
Current Income Tax Expense: | ||||||||||||
Federal | $ | 91,664 | $ | 116,234 | $ | — | ||||||
State | 9,393 | 10,819 | 9,797 | |||||||||
101,057 | 127,053 | 9,797 | ||||||||||
Deferred Income Tax Expense (Benefit): | ||||||||||||
Federal | (35,941 | ) | (23,035 | ) | 62,015 | |||||||
State | (822 | ) | (206 | ) | (2,202 | ) | ||||||
(36,763 | ) | (23,241 | ) | 59,813 | ||||||||
$ | 64,294 | $ | 103,812 | $ | 69,610 | |||||||
At December 31, 2011, the Company had a federal net operating loss (“NOL”) carryforward of approximately $31.2 million available to offset future taxable income. The entire NOL carryforward was absorbed during 2012. | ||||||||||||
As a result of the bonus depreciation provisions in the Small Business Jobs Act of 2010 and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Company paid more than anticipated for the 2010 federal tax liability. The 2010 acts provided an estimated tax deferral of approximately $127.0 million. The Company filed for a refund of overpaid federal tax of approximately $80.9 million in January 2011 and received that refund in February 2011. | ||||||||||||
Significant components of the Company’s deferred income tax liabilities and assets at December 31 are as follows: | ||||||||||||
(In Thousands) | 2013 | 2012 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Lease Merchandise and Property, Plant and Equipment | $ | 249,192 | $ | 279,926 | ||||||||
Goodwill & Other Intangibles | 34,512 | 30,754 | ||||||||||
Other, Net | 2,782 | 3,260 | ||||||||||
Total Deferred Tax Liabilities | 286,486 | 313,940 | ||||||||||
Deferred Tax Assets: | ||||||||||||
Accrued Liabilities | 36,778 | 25,365 | ||||||||||
Advance Payments | 15,400 | 15,834 | ||||||||||
Other, Net | 8,032 | 9,677 | ||||||||||
Total Deferred Tax Assets | 60,210 | 50,876 | ||||||||||
Less Valuation Allowance | (682 | ) | (657 | ) | ||||||||
Net Deferred Tax Liabilities | $ | 226,958 | $ | 263,721 | ||||||||
The Company’s effective tax rate differs from the statutory United States Federal income tax rate for the years ended December 31 as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory Rate | 35 | % | 35 | % | 35 | % | ||||||
Increases in United States Federal Taxes | ||||||||||||
Resulting From: | ||||||||||||
State Income Taxes, Net of Federal Income Tax Benefit | 3.1 | 2.5 | 2.7 | |||||||||
Federal Tax Credits | (1.7 | ) | (.1 | ) | (.3 | ) | ||||||
Other, Net | (1.6 | ) | 0.1 | 0.6 | ||||||||
Effective Tax Rate | 34.8 | % | 37.5 | % | 38 | % | ||||||
The Company files a federal consolidated income tax return in the United States and the separate legal entities file in various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state and local tax examinations by tax authorities for years before 2010. | ||||||||||||
The following table summarizes the activity related to the Company’s uncertain tax positions: | ||||||||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
Balance at January 1, | $ | 1,258 | $ | 1,412 | $ | 1,315 | ||||||
Additions based on tax positions related to the current year | 454 | 178 | 178 | |||||||||
Additions for tax positions of prior years | 423 | 83 | 22 | |||||||||
Prior year reductions | (5 | ) | (315 | ) | (13 | ) | ||||||
Statute expirations | (85 | ) | (83 | ) | (90 | ) | ||||||
Settlements | (85 | ) | (17 | ) | — | |||||||
Balance at December 31, | $ | 1,960 | $ | 1,258 | $ | 1,412 | ||||||
As of December 31, 2013 and 2012, the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $1.5 million and $1.0 million, respectively, including interest and penalties. During the years ended December 31, 2013 and December 31, 2011, the Company recognized interest and penalties of $76,000 and $41,000. During the year ended December 31, 2012, the Company recognized a net benefit of $126,000 related to interest and penalties. The Company had $278,000 and $234,000 of accrued interest and penalties at December 31, 2013 and 2012, respectively. The Company recognizes potential interest and penalties related to uncertain tax benefits as a component of income tax expense. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Text Block [Abstract] | ' | |||
Commitments And Contingencies | ' | |||
NOTE 8: COMMITMENTS AND CONTINGENCIES | ||||
Leases | ||||
The Company leases warehouse and retail store space for most of its operations under operating leases expiring at various times through 2029. The Company also leases certain properties under capital leases that are more fully described in Note 6 to these consolidated financial statements. Most of the leases contain renewal options for additional periods ranging from one to 20 years or provide for options to purchase the related property at predetermined purchase prices that do not represent bargain purchase options. In addition, certain properties occupied under operating leases contain normal purchase options. Leasehold improvements related to these leases are generally amortized over periods that do not exceed the lesser of the lease term or 15 years. While a majority of leases do not require escalating payments, for the leases which do contain such provisions, the Company records the related lease expense on a straight-line basis over the lease term. The Company also leases transportation and computer equipment under operating leases expiring during the next five years. Management expects that most leases will be renewed or replaced by other leases in the normal course of business. | ||||
Future minimum lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year as of December 31, 2013 are as follows: | ||||
(In Thousands) | ||||
2014 | $ | 113,067 | ||
2015 | 96,508 | |||
2016 | 75,024 | |||
2017 | 57,160 | |||
2018 | 43,225 | |||
Thereafter | 143,583 | |||
$ | 528,567 | |||
Rental expense was $110.0 million in 2013, $102.0 million in 2012 and $93.6 million in 2011. The amount of sublease income was $2.6 million in 2013, $3.1 million in 2012 and $3.1 million in 2011. The Company has anticipated future sublease rental income of $3.5 million in 2014, $3.0 million in 2015, $2.5 million in 2016, $2.2 million in 2017, $2.1 million in 2018 and $5.6 million thereafter through 2026. Rental expense and sublease income are included in operating expenses. | ||||
Guarantees | ||||
The Company has guaranteed certain debt obligations of some of the franchisees under a franchise loan program with several banks. In the event these franchisees are unable to meet their debt service payments or otherwise experience an event of default, the Company would be unconditionally liable for the outstanding balance of the franchisees' debt obligations under the franchisee loan program, which would be due in full within 90 days of the event of default. At December 31, 2013, the maximum amount that the Company would be obligated to repay in the event franchisees defaulted was $105.0 million. The Company has recourse rights to the assets securing the debt obligations, which consist primarily of lease merchandise and fixed assets. As a result, the Company has never incurred, nor does management expect to incur, any significant losses under these guarantees. The carrying amount of the franchise-related borrowings guarantee, which is included in accounts payable and accrued expenses in the consolidated balance sheet, is approximately $2.5 million as of December 31, 2013. | ||||
On December 17, 2013, the Company entered into a seventh amendment to its second amended and restated loan facility and guaranty, dated June 18, 2010, as amended, and the Company entered into a sixth amendment as of October 8, 2013. The amendments to the franchise loan facility extended the maturity date of the franchise loan facility until December 11, 2014 and changed the “Restricted Payments” negative covenant, which imposes certain restrictions on the amount of payments that can be made in respect of dividends, distributions, redemptions and stock repurchases paid in cash, to make such covenant less restrictive. | ||||
The maximum facility commitment amount under the franchise loan program is $200.0 million, including a Canadian subfacility commitment amount for loans to franchisees that operate stores in Canada (other than in the Province of Quebec) of Cdn $50 million. We remain subject to the financial covenants under the franchise loan facility. | ||||
Legal Proceedings | ||||
From time to time, the Company is party to various legal and regulatory proceedings arising in the ordinary course of business. | ||||
Some of the proceedings to which we are currently a party are described below. We believe we have meritorious defenses to all of the claims described below, and intend 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 we will ultimately be successful in these proceedings, or in others to which we are currently a party. Substantial losses from these proceedings or the costs of defending them could have a material adverse impact upon our 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 in accordance with applicable accounting rules. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. | ||||
At December 31, 2013, the Company had accrued $33.3 million for pending legal and regulatory matters for which it believes losses are probable, which is our best estimate of our exposure to loss, and mostly relates to the regulatory investigation by the California Attorney General described below. The Company estimates that the aggregate range of possible loss in excess of accrued liabilities for such probable loss contingencies is between $0 and $4.6 million. | ||||
At December 31, 2013, 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 between $50,000 to $8.2 million. 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. Our estimates as to legal and regulatory accruals, as to aggregate probable loss amounts and as to reasonably possible loss amounts, are all subject to the uncertainties and variables described above. | ||||
Labor and Employment | ||||
In Kunstmann et al v. Aaron Rents, Inc., filed with the United States District Court, Northern District of Alabama (Case No.: 2:08-CV-01969-KOB-JEO) on October 22, 2008, plaintiffs alleged that the Company improperly classified store general managers as exempt from the overtime provisions of the Fair Labor Standards Act (“FLSA”). The case was conditionally certified as an FLSA collective action on January 25, 2010, and it now includes 227 individuals, nearly all of whom terminated from the general manager position more than two years ago. Plaintiffs seek to recover unpaid overtime compensation and other damages. On October 4, 2012, the Court denied the Company's motion for summary judgment as to the claims of Kunstmann, the named plaintiff. On January 23, 2013, the Court denied the Company's motion to decertify the class. The Company has since filed two additional motions for summary judgment, including one that seeks summary judgment in the entirety on all class members' claims, or alternatively, on matters that will reduce the size of the class or exposure arising from the class claims. Briefing on these motions began in July 2013. | ||||
The matter of Kurtis Jewell v. Aaron's, Inc. was originally filed in the United States District Court, Northern District of Ohio, Eastern Division on October 27, 2011 and was transferred on February 23, 2012 to the United States District Court for the Northern District of Georgia (Civil No.:1:12-CV-00563-AT). Plaintiff, on behalf of himself and all other non-exempt employees who worked in Company stores, alleges that the Company violated the FLSA when it automatically deducted 30 minutes from employees' time for meal breaks on days when plaintiffs allegedly did not take their meal breaks. Plaintiff claims he and other employees actually worked through meal breaks or were interrupted during the course of their meal breaks and asked to perform work. As a result of the automatic deduction, plaintiff alleges that the Company failed to account for all of his working hours when it calculated overtime, and consequently underpaid him. Plaintiffs seek to recover unpaid overtime compensation and other damages for all similarly situated employees nationwide for the applicable time period. On June 28, 2012, the Court issued an order granting conditional certification of a class consisting of all hourly store employees from June 28, 2009 to the present. The class size is approximately 1,788 opt-in plaintiffs, which is less than seven percent of the potential class members. The parties are engaging in discovery, including depositions of court-designated class members. Discovery is expected to continue until April 2014. | ||||
In Sowell, et al. v. Aaron's, Inc., United States District Court for the Northern District of Georgia (Civil No.:1:12-CV-03867-CAP-ECS), two former Company associates filed separate lawsuits on November 5, 2012; Elizabeth Cook filed in Fulton County Georgia State Court and Brittany Sowell filed in the U.S. District Court for the Northern District of Georgia. Plaintiff Sowell then filed a First Amended Complaint in the U.S. District Court of the Northern District of Georgia on November 28, 2012. Thereafter, Plaintiff Sowell filed a Second Amended Complaint on December 21, 2012, which included Cook's claims and consolidated the cases. The case settled on October 22, 2013, and the settlement payment was substantially covered by insurance. | ||||
Consumer | ||||
In Margaret Korrow, et al. v. Aaron's, Inc., originally filed in the Superior Court of New Jersey, Middlesex County, Law Division on October 26, 2010, plaintiff filed suit on behalf of herself and others similarly situated alleging that the Company is liable in damages to plaintiff and each class member because the Company's lease agreements issued after March 16, 2006 purportedly violated certain New Jersey state consumer statutes. Plaintiff's complaint seeks treble damages under the New Jersey Consumer Fraud Act, and statutory penalty damages of $100 per violation of all contracts issued in New Jersey, and also claim that there are multiple violations per contract. The Company removed the lawsuit to the United States District Court for the District of New Jersey on December 6, 2010 (Civil Action No.: 10-06317(JAP)(LHG)). Plaintiff on behalf of herself and others similarly situated seeks equitable relief, statutory and treble damages, pre- and post-judgment interest and attorneys' fees. Discovery on this matter is closed. On July 31, 2013, the Court certified a class comprising all persons who entered into a rent-to-own contract with the Company in New Jersey from March 16, 2006 through March 31, 2011. In August 2013, the Court of Appeals denied the Company’s request for an interlocutory appeal of the class certification issue. The Company filed a motion to add counterclaims against all newly certified class members who may owe legitimate fees or damages to the Company or who failed to return merchandise prior to obtaining ownership. That motion is pending. | ||||
Privacy and Related Matters | ||||
In Crystal and Brian Byrd v. Aaron's, Inc., Aspen Way Enterprises, Inc., John Does (1-100) Aaron's Franchisees and Designerware, LLC, filed on May 16, 2011, in the United States District Court, Western District of Pennsylvania (Case No. 1:11-CV-00101-SPB), plaintiffs alleged that the Company and its independently owned and operated franchisee Aspen Way Enterprises (“Aspen Way”) knowingly violated plaintiffs' privacy in violation of the Electronic Communications Privacy Act and the Computer Fraud Abuse Act and sought certification of a putative nationwide class. Plaintiffs based these claims on Aspen Way's use of a software program called “PC Rental Agent.” The District Court dismissed the Company from the lawsuit on March 20, 2012. On September 14, 2012, plaintiffs filed a second amended complaint against the Company and its franchisee Aspen Way, asserting claims for violation of the Electronic Communications Privacy Act and common law invasion of privacy by intrusion upon seclusion. Plaintiffs also asserted certain vicarious liability claims against the Company based on Aspen Way's alleged conduct. On October 15, 2012, the Company filed a motion to dismiss the amended complaint, and on February 27, 2013, plaintiffs filed a motion for leave of the Court to file a third amended complaint against the Company. On May 23, 2013, the Court granted plaintiffs' motion for leave to file a third amended complaint, which asserts the same claims against the Company as the second amended complaint but also adds a request for injunction and names additional independently owned and operated Company franchisees as defendants. Plaintiffs filed the third amended complaint, and the Company has moved to dismiss that complaint on substantially the same grounds as it sought to dismiss plaintiffs' second amended complaint. That motion remains pending. Plaintiffs filed their motion for class certification on July 1, 2013, and the Company's response was filed in August 2013. On January 27, 2014, the Magistrate Judge issued recommendations on pending motions. The Judge recommended that all claims against all franchisees other than Aspen Way Enterprises, LLC be dismissed. The Judge also recommended that claims for invasion of privacy, aiding and abetting, and conspiracy be dismissed against all defendants. Finally, the Judge recommended denial of the Company’s motion to dismiss the violation of Electronic Communications Privacy Act claims. In addition, on January 31, 2014, the Magistrate Judge recommended denial of the Plaintiffs’ motion to certify the class. These recommendations are subject to objection by either party and will then either be adopted, in whole or in part, by the District Judge, or modified as the District Judge may determine appropriate. | ||||
In Michael Winslow and Fonda Winslow v. Sultan Financial Corporation, Aaron's, Inc., John Does (1-10), Aaron's Franchisees and Designerware, LLC, filed on March 5, 2013 in the Los Angeles Superior Court (Case No. BC502304), plaintiffs assert claims against the Company and its independently owned and operated franchisee, Sultan Financial Corporation (as well as certain John Doe franchisees), for unauthorized wiretapping, eavesdropping, electronic stalking, and violation of California's Comprehensive Computer Data Access and Fraud Act and its Unfair Competition Law. Each of these claims arises out of the alleged use of PC Rental Agent software. The plaintiffs are seeking injunctive relief and damages in connection with the allegations of the complaint. Plaintiffs are also seeking certification of a putative California class. Plaintiffs are represented by the same counsel as in the above described Byrd litigation. In April 2013, the Company timely removed this matter to federal Court. On May 8, 2013, the Company filed a motion to stay this litigation pending resolution of the Byrd litigation, a motion to dismiss for failure to state a claim, and a motion to strike certain allegations in the complaint. The Court subsequently stayed the case. The Company's motions to dismiss and strike certain allegations remain pending. | ||||
In Lomi Price v. Aaron's, Inc. and NW Freedom Corporation, filed on February 27, 2013, in the State Court of Fulton County, Georgia (Case No. 13-EV-016812B), an individual plaintiff asserts claims against the Company and its independently owned and operated franchisee, NW Freedom Corporation, for invasion of privacy/intrusion on seclusion, computer invasion of privacy and infliction of emotional distress. Each of these claims arises out of the alleged use of PC Rental Agent software. The plaintiff is seeking compensatory and punitive damages of not less than $250,000. On April 3, 2013, the Company filed an answer and affirmative defenses. On that same day, the Company also filed a motion to stay the litigation pending resolution of the Byrd litigation, a motion to dismiss for failure to state a claim and a motion to strike certain allegations in the complaint. All three motions remain pending. | ||||
Regulatory Investigations | ||||
Federal Trade Commission Investigation. The Federal Trade Commission (“FTC”) investigated the Company in connection with the alleged use of PC Rental Agent software by certain independently owned and operated Company franchisees, as noted above under “Privacy and Related Matters,” and the Company's alleged responsibility for that use. On October 22, 2013, the FTC published a proposed consent agreement that would close the investigation. Pursuant to FTC administrative procedure, the consent agreement was subject to public comment through November 21, 2013. The FTC is currently deciding whether to make the proposed consent agreement final. | ||||
California Attorney General Investigation. The California Attorney General has been investigating the Company's retail transactional practices, including various leasing and marketing practices, information security and privacy policies and practices related to the alleged use of PC Rental Agent software by certain independently owned and operated Company franchisees. The Company is continuing to cooperate with the investigation, including producing documents for the Attorney General's office and engaging in discussions about a possible resolution of this matter. The Company currently anticipates achieving a comprehensive resolution without litigation. | ||||
Pennsylvania Attorney General Investigation. There is a pending, active investigation by the Pennsylvania Attorney General relating to the Company's privacy practices in Pennsylvania. The privacy issues are related to the alleged use of PC Rental Agent software by certain independently owned and operated Company franchisees, and the Company's alleged responsibility for that use. The Company is continuing to cooperate in the investigation. | ||||
Other Commitments | ||||
At December 31, 2013, the Company had non-cancelable commitments primarily related to certain advertising and marketing programs of $35.4 million. Payments under these commitments are scheduled to be $19.2 million in 2014, $15.5 million in 2015 and $710,000 in 2016. | ||||
The Company maintains a 401(k) savings plan for all its full-time employees with at least one year of service and who meet certain eligibility requirements. As of December 31, 2013, the plan allows employees to contribute up to 100% of their annual compensation in accordance with federal contribution limits with 100% matching by the Company on the first 3% of compensation and 50% on the next 2% of compensation for a total of 4% matching compensation. The Company’s expense related to the plan was $3.3 million in 2013, $999,000 in 2012, and $891,000 in 2011. | ||||
The Company is a party to various claims and legal proceedings arising in the ordinary course of business. 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. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Shareholders' Equity | ' |
NOTE 9: SHAREHOLDERS’ EQUITY | |
The Company held 17,795,293 shares in its treasury and was authorized to purchase an additional 11,497,373 shares at December 31, 2013. The holders of common stock are entitled to receive dividends and other distributions in cash, stock or property of the Company as and when declared by its Board of Directors out of legally available funds. The Company repurchased 3,502,627 shares of its common stock through an accelerated share repurchase program in 2013 and 1,236,689 shares of its common stock on the open market in 2012. | |
The Company has 1,000,000 shares of preferred stock authorized. The shares are issuable in series with terms for each series fixed by and such issuance subject to approval by the Board of Directors. As of December 31, 2013, no preferred shares have been issued. | |
On October 4, 2013, the Company amended its Amended and Restated Articles of Incorporation to confirm that shares of common stock the Company repurchases from time to time become treasury shares. As permitted by Georgia corporate law, the amendment was adopted by the Board of Directors of the Company without shareholder action. | |
Accelerated Share Repurchase Program | |
In December 2013, the Company entered into an accelerated share repurchase program with a third-party financial institution to purchase $125.0 million of the Company’s common stock, as part of its previously announced share repurchase program. The Company paid $125.0 million and received an initial delivery of 3,502,627 shares, estimated to be approximately 80% of the total number of shares to be repurchased under the agreement, which reduced the Company's shares outstanding at December 31, 2013. The value of the initial shares received on the date of purchase was $100.0 million, reflecting a $28.55 price per share, which was recorded as treasury shares. The Company recorded the remaining $25.0 million as a forward contract indexed to its own common stock in additional paid-in capital. | |
In February 2014, the accelerated share repurchase program was completed and the Company received 1,000,952 additional shares determined using a volume weighted average price of the Company's stock (inclusive of a discount) during the trading period. All amounts classified as additional paid-in capital will be reclassified to treasury shares during the first quarter of 2014 upon settlement. |
Stock_Options_And_Restricted_S
Stock Options And Restricted Stock | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Stock Options And Restricted Stock | ' | ||||||||||||||||
NOTE 10: STOCK OPTIONS AND RESTRICTED STOCK | |||||||||||||||||
The Company grants stock options, restricted stock units and restricted stock awards to certain employees and directors of the Company. Total stock-based compensation expense was $2.3 million, $6.5 million and $8.4 million in 2013, 2012 and 2011, respectively, and was included as a component of operating expenses in the consolidated statements of earnings. Excess tax benefits of $1.4 million, $6.0 million and $1.3 million are included in cash provided by financing activities for the years ended 2013, 2012 and 2011, respectively. | |||||||||||||||||
As of December 31, 2013, there was $9.1 million of total unrecognized compensation expense related to non-vested stock-based compensation which is expected to be recognized over a period of 2.3 years. | |||||||||||||||||
The aggregate number of shares of common stock that may be issued or transferred under the incentive stock awards plan is 14,597,927 at December 31, 2013. | |||||||||||||||||
Stock Options | |||||||||||||||||
Under the Company’s stock option plans, options granted to date become exercisable after a period of two to five years and unexercised options lapse ten years after the date of the grant. Options are subject to forfeiture upon termination of service. The Company recognizes compensation cost for awards with graded vesting on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company determines the fair value of stock options using a Black-Scholes option pricing model that incorporates expected volatility, expected option life, estimated forfeiture rates, risk-free interest rates, and expected dividend yields. | |||||||||||||||||
The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period generally commensurate with the expected estimated life of each respective grant. The expected lives of options are based on the Company’s historical option exercise experience. Forfeiture assumptions are based on the Company’s historical forfeiture experience. The Company believes that the historical experience method is the best estimate of future exercise and forfeiture patterns. The risk-free interest rates are determined using the implied yield available for zero-coupon United States government issues with a remaining term equal to the expected life of the grant. The expected dividend yields are based on the approved annual dividend rate in effect and market price of the underlying common stock at the time of grant. No assumption for a future dividend rate increase has been included unless there is an approved plan to increase the dividend in the near term. Shares are issued from the Company’s treasury shares upon share option exercises. | |||||||||||||||||
No stock options were granted in 2013, 2012 or 2011. | |||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Weighted Average | Options Exercisable | ||||||||||||||||
Range of Exercise | Number Outstanding | Remaining Contractual | Weighted Average | Number Exercisable | Weighted Average | ||||||||||||
Prices | December 31, 2013 | Life (in years) | Exercise Price | December 31, 2013 | Exercise Price | ||||||||||||
$10.01-15.00 | 471,250 | 4.13 | $ | 14.15 | 471,250 | $ | 14.15 | ||||||||||
15.01-19.92 | 215,250 | 6.11 | 19.9 | 57,750 | 19.83 | ||||||||||||
$10.01-19.92 | 686,500 | 4.75 | 15.95 | 529,000 | 14.77 | ||||||||||||
The table below summarizes option activity for the year ended December 31, 2013: | |||||||||||||||||
Options | Weighted Average | Weighted Average | Aggregate | Weighted | |||||||||||||
(In Thousands) | Exercise Price | Remaining | Intrinsic Value | Average Fair | |||||||||||||
Contractual Term | (in Thousands) | Value | |||||||||||||||
Outstanding at January 1, 2013 | 1,513 | $ | 14.81 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (728 | ) | 13.71 | ||||||||||||||
Forfeited/expired | (98 | ) | 15.29 | ||||||||||||||
Outstanding at December 31, 2013 | 687 | 15.95 | 4.75 | $ | 9,233 | $ | 7.02 | ||||||||||
Expected to Vest at December 31, 2013 | 132 | 19.92 | 6.15 | 1,253 | 10.67 | ||||||||||||
Exercisable at December 31, 2013 | 529 | 14.77 | 4.33 | 7,740 | 5.94 | ||||||||||||
The aggregate intrinsic value of options exercised was $11.0 million, $20.0 million and $5.5 million in 2013, 2012 and 2011, respectively. The total fair value of options vested was $2.7 million, $2.2 million and $2.7 million in 2013, 2012 and 2011, respectively. Income tax benefits resulting from stock option exercises totaled $4.2 million, $8.4 million, and $2.1 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
Shares of restricted stock or restricted stock units (collectively, “restricted stock”) may be granted to employees and directors and typically vest over approximately two to five year periods. Restricted stock grants may be subject to one or more objective employment, performance or other forfeiture conditions as established at the time of grant. | |||||||||||||||||
Restricted shares granted with performance conditions are typically granted to eligible participants upon achievement of certain pre-tax profit and revenue levels by the employees' operating units or the overall Company. Plan participants include certain vice presidents, director level employees and other key personnel in the Company’s home office, divisional vice presidents and regional managers. | |||||||||||||||||
In addition, the Company grants time-based restricted stock to certain executive officers, as well as performance-based restricted stock that will be eligible to vest at the completion of a three-year period assuming certain performance conditions are achieved over three annual performance periods. The Company recognizes compensation cost for its performance-based restricted stock over the vesting period based on the probability that the performance condition will be satisfied. | |||||||||||||||||
Any shares of restricted stock that are forfeited may again become available for issuance. Compensation cost for restricted stock is equal to the fair market value of the shares at the date of the award and is amortized to compensation expense on a straight-line basis over the vesting period. The Company granted 307,000, 368,000 and 266,000 shares of restricted stock at weighted-average fair values of $29.23, $26.08 and $23.57 in 2013, 2012 and 2011, respectively. | |||||||||||||||||
The following table summarizes information about restricted stock activity: | |||||||||||||||||
Restricted Stock | Weighted Average | ||||||||||||||||
(In Thousands) | Fair Value | ||||||||||||||||
Non-vested at January 1, 2013 | 696 | $ | 23.28 | ||||||||||||||
Granted | 307 | 29.23 | |||||||||||||||
Vested | (6 | ) | 28.22 | ||||||||||||||
Forfeited | (315 | ) | 23.6 | ||||||||||||||
Non-vested at December 31, 2013 | 682 | 25.77 | |||||||||||||||
The total fair value of restricted stock vesting during the year was $722,000, $4.4 million and $5.7 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
Retirement and Separation-Related Modifications | |||||||||||||||||
In connection with the retirement of the Company’s founder and Chairman of the Board, the Company recorded a $10.4 million charge to operating expenses, of which $1.7 million related to the accelerated vesting of 75,000 shares of restricted stock and 25,000 stock options in 2012. During 2011, the Company recorded a $3.5 million charge for separation costs primarily related to the immediate vest modification of 150,000 shares of restricted stock and 50,000 stock options related to the separation of the Company’s Chief Executive Officer. The total incremental cost resulting from the modifications, due primarily to increases in the Company’s stock price as of the modification date compared to the grant date, was $1.2 million and $1.3 million in 2012 and 2011, respectively. There were no similar modification charges in 2013. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Segments | ' |
NOTE 11: SEGMENTS | |
Description of Products and Services of Reportable Segments | |
As of December 31, 2013, the Company had five operating and reportable segments: Sales and Lease Ownership, HomeSmart, RIMCO, Franchise and Manufacturing. In the first quarter of 2013, the Company determined that the RIMCO segment no longer met the aggregation criteria in ASC 280, Segment Reporting. Accordingly, for all periods presented, RIMCO has been reclassified from the Sales and Lease Ownership segment to the RIMCO segment. In January of 2014, the Company sold the 27 Company-operated RIMCO stores and the rights to five franchised RIMCO stores. | |
The Aaron’s Sales & Lease Ownership division offers electronics, furniture, appliances and computers to consumers primarily on a monthly payment basis with no credit requirements. The HomeSmart division was established to offer electronics, furniture, appliances and computers to consumers on a weekly payment basis with no credit requirements. The Company's RIMCO stores leased automobile tires, wheels and rims to customers under sales and lease ownership agreements. The Company’s Franchise operation awards franchises and supports franchisees of its sales and lease ownership concept. The Manufacturing segment manufactures upholstered furniture and bedding predominantly for use by Company-operated and franchised stores. Therefore, the Manufacturing segment's revenues and earnings before income taxes are primarily the result of intercompany transactions, substantially all of which revenues and earnings are eliminated through the elimination of intersegment revenues and intersegment profit. | |
Measurement of Segment Profit or Loss and Segment Assets | |
The Company evaluates performance and allocates resources based on revenue growth and pre-tax profit or loss from operations. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies except that the sales and lease ownership division revenues and certain other items are presented on a cash basis. Intersegment sales are completed at internally negotiated amounts. Since the intersegment profit affect inventory valuation, depreciation and cost of goods sold are adjusted when intersegment profit is eliminated in consolidation. | |
Factors Used by Management to Identify the Reportable Segments | |
The Company’s reportable segments are based on the operations of the Company that the chief operating decision maker regularly reviews to analyze performance and allocate resources among business units of the Company. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Related Party Transactions | ' |
NOTE 12: RELATED PARTY TRANSACTIONS | |
The Company leases certain properties under capital leases with certain related parties that are more fully described in Note 6 above. | |
In the fourth quarter of 2011, the Company purchased an airplane for $2.8 million and sold it to R. Charles Loudermilk, Sr., the Company’s founder and former Chairman of the Board, for the same amount. The Company paid approximately $80,000 in brokerage fees in connection with the transaction, for which Mr. Loudermilk, Sr., reimbursed the Company. In the fourth quarter of 2011, the Company transferred a Company-owned vehicle to Mr. Loudermilk, Sr., valued at $21,000. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
Quarterly Financial Information (Unaudited) | ' | |||||||||||||||
NOTE 13: QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||
Certain reclassifications have been made to prior quarters to conform to the current period presentation. | ||||||||||||||||
(In Thousands, Except Per Share Data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Revenues | $ | 593,010 | $ | 550,545 | $ | 537,224 | $ | 553,852 | ||||||||
Gross Profit * | 302,439 | 282,276 | 265,056 | 263,080 | ||||||||||||
Earnings Before Income Taxes | 81,042 | 40,387 | 29,420 | 34,111 | ||||||||||||
Net Earnings | 51,000 | 25,854 | 21,138 | 22,674 | ||||||||||||
Earnings Per Share | 0.67 | 0.34 | 0.28 | 0.3 | ||||||||||||
Earnings Per Share Assuming Dilution | 0.67 | 0.34 | 0.28 | 0.3 | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Revenues | $ | 583,299 | $ | 537,279 | $ | 526,883 | $ | 565,366 | ||||||||
Gross Profit * | 284,083 | 266,913 | 259,957 | 264,396 | ||||||||||||
Earnings Before Income Taxes | 115,029 | 58,590 | 46,044 | 57,192 | ||||||||||||
Net Earnings | 71,226 | 36,244 | 28,941 | 36,632 | ||||||||||||
Earnings Per Share | 0.94 | 0.48 | 0.38 | 0.48 | ||||||||||||
Earnings Per Share Assuming Dilution | 0.92 | 0.47 | 0.38 | 0.48 | ||||||||||||
* Gross profit is the sum of lease revenues and fees, retail sales, and non-retail sales less retail cost of sales, non-retail cost of sales, depreciation of lease merchandise and write-offs of lease merchandise. | ||||||||||||||||
The second quarter of 2013 included a pre-tax $15.0 million charge related to an accrual for loss contingencies for a pending regulatory investigation by the California Attorney General and a $4.9 million charge related to retirement expenses and a change in vacation policies. The third quarter of 2013 included an additional pre-tax $13.4 million charge related to the pending regulatory investigation. | ||||||||||||||||
The first quarter of 2012 included a pre-tax $35.5 million reversal of a lawsuit accrual, and the third quarter of 2012 included a pre-tax $10.4 million retirement charge associated with the retirement of the Company’s founder and Chairman of the Board. |
Deferred_Compensation_Plan
Deferred Compensation Plan | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Deferred Compensation Plan | ' |
NOTE 14: DEFERRED COMPENSATION PLAN | |
Effective July 1, 2009, the Company implemented the Aaron’s, Inc. Deferred Compensation Plan, an unfunded, nonqualified deferred compensation plan for a select group of management, highly compensated employees and non-employee directors. On a pre-tax basis, eligible employees can defer receipt of up to 75% of their base compensation and up to 100% of their incentive pay compensation, and eligible non-employee directors can defer receipt of up to 100% of both their cash and stock director fees. | |
Compensation deferred under the plan is credited to each participant’s deferral account and a deferred compensation liability is recorded in accounts payable and accrued expenses in the consolidated balance sheets. The deferred compensation plan liability was approximately $12.6 million and $9.5 million as of December 31, 2013 and 2012, respectively. Liabilities under the plan are recorded at amounts due to participants, based on the fair value of participants’ selected investments. The Company has established a rabbi trust to fund obligations under the plan with Company-owned life insurance. The obligations are unsecured general obligations of the Company and the participants have no right, interest or claim in the assets of the Company, except as unsecured general creditors. The cash surrender value of these policies totaled $14.1 million and $10.4 million as of December 31, 2013 and 2012, respectively, and is included in prepaid expenses and other assets in the consolidated balance sheets. | |
Deferred compensation expense charged to operations for the Company’s matching contributions totaled $139,000, $285,000 and $306,000 in 2013, 2012, and 2011, respectively. Benefits of $1.3 million, $616,000 and $77,000 were paid during the years ended December 31, 2013, 2012 and 2011, respectively. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
NOTE 15: SUBSEQUENT EVENTS | |
As previously discussed, in January 2014, the Company sold the 27 Company-operated RIMCO stores and the rights to five franchised RIMCO stores, which leased automobile tires, wheels and rims under sales and lease ownership agreements. The Company received total cash consideration of $10.0 million from a third party. During the year ended December 31, 2013, the Company recognized impairment charges of $766,000 related to the write-down of the net assets of the RIMCO operating segment (principally consisting of lease merchandise, office furniture and leasehold improvements) to fair value less cost to sell. The Company expects any additional charges associated with the disposal of the RIMCO segment to be immaterial to future results of operations. | |
In addition, in February 2014, the accelerated share repurchase program with a third-party financial institution was completed and the Company received an additional 1.0 million shares of common stock. |
Business_And_Summary_Of_Signif1
Business And Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Text Block [Abstract] | ' | |||||||||||
Description of Business | ' | |||||||||||
Description of Business | ||||||||||||
Aaron’s, Inc. (the “Company” or “Aaron’s”) is a leading specialty retailer engaged in the business of leasing and selling consumer electronics, computers, furniture, appliances and household accessories throughout the United States and Canada. The Company’s major operating divisions are the Sales & Lease Ownership division (established as a monthly payment concept), the HomeSmart division (established as a weekly payment concept) and the Woodhaven Furniture Industries division, which manufactures upholstered furniture and bedding predominantly for use by Company-operated and franchised stores. The Company’s Sales & Lease Ownership division includes the Company’s RIMCO stores, which lease automobile tires, wheels and rims under sales and lease ownership agreements. In January of 2014, we sold our 27 Company-operated RIMCO stores and the rights to five franchised RIMCO stores. | ||||||||||||
The following table presents store count by ownership type: | ||||||||||||
Stores at December 31 (Unaudited) | 2013 | 2012 | 2011 | |||||||||
Company-operated stores | ||||||||||||
Sales and Lease Ownership | 1,262 | 1,227 | 1,144 | |||||||||
HomeSmart | 81 | 78 | 71 | |||||||||
RIMCO | 27 | 19 | 16 | |||||||||
Aaron’s Office Furniture | — | — | 1 | |||||||||
Total Company-operated stores | 1,370 | 1,324 | 1,232 | |||||||||
Franchised stores1 | 781 | 749 | 713 | |||||||||
Systemwide stores | 2,151 | 2,073 | 1,945 | |||||||||
1 As of December 31, 2013, 2012 and 2011, 940, 929 and 943 franchises had been awarded, respectively. | ||||||||||||
Basis of Presentation | ' | |||||||||||
Basis of Presentation | ||||||||||||
The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Generally, actual experience has been consistent with management’s prior estimates and assumptions. Management does not believe these estimates or assumptions will change significantly in the future absent unsurfaced and unforeseen events. | ||||||||||||
Certain reclassifications have been made to the prior periods to conform to the current period presentation. In all periods presented, the Company's RIMCO operations have been reclassified from the Sales and Lease Ownership segment to the RIMCO segment in Note 11 to the consolidated financial statements. | ||||||||||||
Principles of Consolidation and Variable Interest Entities | ' | |||||||||||
Principles of Consolidation and Variable Interest Entities | ||||||||||||
The consolidated financial statements include the accounts of Aaron’s, Inc. and its wholly owned subsidiaries. Intercompany balances and transactions between consolidated entities have been eliminated. | ||||||||||||
On October 14, 2011, the Company purchased 11.5% of newly issued shares of common stock of Perfect Home Holdings Limited (“Perfect Home”), a privately-held rent-to-own company that is primarily financed by share capital and subordinated debt. Perfect Home is based in the U.K. and operated 64 retail stores as of December 31, 2013. As part of the transaction, the Company also received notes and an option to acquire the remaining interest in Perfect Home at any time through December 31, 2013. The Company did not exercise this purchase option but is in discussions with the owners of Perfect Home to extend the notes through June 2015. The Company’s investment is denominated in British Pounds. | ||||||||||||
Perfect Home is a variable interest entity (“VIE”) as it does not have sufficient equity at risk; however, the Company is not the primary beneficiary and lacks the power through voting or similar rights to direct the activities of Perfect Home that most significantly affect its economic performance. As such, the VIE is not consolidated by the Company. | ||||||||||||
Because the Company is not able to exercise significant influence over the operating and financial decisions of Perfect Home, the equity portion of the investment in Perfect Home, totaling less than a thousand dollars at December 31, 2013 and 2012, respectively, is accounted for as a cost method investment and is included in prepaid expenses and other assets in the consolidated balance sheets. The notes purchased from Perfect Home totaling £12.5 million ($20.7 million) and £11.4 million ($18.4 million) at December 31, 2013 and 2012, respectively, are accounted for as held-to-maturity securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Debt and Equity Securities, and are included in investments in the consolidated balance sheets. The increase in the Company’s British pound-denominated notes during the year ended December 31, 2013 relates to accretion of the original discount on the notes with a face value of £10.0 million. Utilizing a Black-Scholes model, the options to buy the remaining interest in Perfect Home and to sell the Company’s interest in Perfect Home were determined to have only nominal values. | ||||||||||||
The Company’s maximum exposure to any potential losses associated with this VIE is equal to its total recorded investment which was $20.7 million at December 31, 2013. | ||||||||||||
Revenue Recognition | ' | |||||||||||
Revenue Recognition | ||||||||||||
Lease Revenues and Fees | ||||||||||||
The Company provides merchandise, consisting of consumer electronics, computers, furniture, appliances, and household accessories, to its customers for lease under certain terms agreed to by the customer. Two primary lease models are offered to customers: one through the Company’s Sales & Lease Ownership division (established as a monthly model) and the other through its HomeSmart division (established as a weekly model). The typical monthly lease model is 12, 18 or 24 months, while the typical weekly lease model is 60, 90 or 120 weeks. The Company does not require deposits upon inception of customer agreements. | ||||||||||||
In a number of states, the Company utilizes a consumer lease form as an alternative to a typical lease purchase agreement. The consumer lease differs from our state lease agreement in that it has an initial lease term in excess of four months. Generally, state laws that govern the rent-to-own industry only apply to lease agreements with an initial term of four months or less. Following satisfaction of the initial term contained in the consumer or state lease, as applicable, the customer has the right to acquire title either through a purchase option or through payment of all required lease payments. | ||||||||||||
All of the Company’s customer agreements are considered operating leases under the provisions of ASC 840, Leases. As such, lease revenues are recognized as revenue in the month they are due. Lease payments received prior to the month due are recorded as deferred lease revenue, which is included in customer deposits and advance payments in the accompanying consolidated balance sheets. Until all payment obligations are satisfied under sales and lease ownership agreements, the Company maintains ownership of the lease merchandise. Initial direct costs related to the Company’s customer agreements are expensed as incurred and have been classified as operating expenses in the Company’s consolidated statements of earnings. | ||||||||||||
Retail and Non-Retail Sales | ||||||||||||
Revenues from the sale of merchandise to franchisees are recognized at the time of receipt of the merchandise by the franchisee based on the electronic receipt of merchandise by the franchisee within the Company’s fulfillment system. Additionally, revenues from the sale of merchandise to other customers are recognized at the time of shipment, at which time title and risk of ownership are transferred to the customer. | ||||||||||||
Substantially all of the amounts reported as non-retail sales and non-retail cost of sales in the accompanying consolidated statements of earnings relate to the sale of lease merchandise to franchisees. The Company classifies the sale of merchandise to other customers as retail sales in the consolidated statements of earnings. The Company presents sales net of sales taxes. | ||||||||||||
Franchise Royalties and Fees | ||||||||||||
The Company franchises its Aaron's Sales & Lease Ownership and HomeSmart stores in markets where the Company has no immediate plans to enter. Franchisees typically pay a non-refundable initial franchise fee from $15,000 to $50,000 depending upon market size and an ongoing royalty of either 5% or 6% of gross revenues. Franchise fees and area development fees are generated from the sale of rights to develop, own and operate sales and lease ownership stores. These fees are recognized as income when substantially all of the Company’s obligations per location are satisfied, generally at the date of the store opening. Franchise fees and area development fees are received before the substantial completion of the Company’s obligations and are deferred. The Company guarantees certain debt obligations of some of the franchisees and receives guarantee fees based on the outstanding debt obligations of such franchisees. The Company recognizes finance fee revenue as the guarantee obligation is satisfied. Refer to Note 8 for additional discussion of the Company’s franchise-related guarantee obligation. | ||||||||||||
Franchise agreement fee revenue was $1.7 million, $2.4 million and $2.6 million; royalty revenue was $59.1 million, $56.5 million and $52.0 million; and finance fee revenue was $5.1 million, $4.9 million and $5.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. Deferred franchise and area development agreement fees, included in accounts payable and accrued expenses in the accompanying consolidated balance sheets, were $3.4 million and $3.8 million at December 31, 2013 and 2012, respectively. | ||||||||||||
Retail and Non-Retail Cost of Sales | ' | |||||||||||
Retail and Non-Retail Cost of Sales | ||||||||||||
Included in cost of sales is the net book value of merchandise sold, primarily using specific identification. It is not practicable to allocate operating expenses between selling and lease operations. | ||||||||||||
Shipping and Handling Costs | ' | |||||||||||
Shipping and Handling Costs | ||||||||||||
The Company classifies shipping and handling costs as operating expenses in the accompanying consolidated statements of earnings, and these costs totaled $78.6 million, $74.9 million and $68.1 million in 2013, 2012 and 2011, respectively. | ||||||||||||
Advertising | ' | |||||||||||
Advertising | ||||||||||||
The Company expenses advertising costs as incurred. Advertising production costs are expensed when an advertisement appears for the first time. Such advertising costs amounted to $43.0 million, $36.5 million and $38.9 million in 2013, 2012 and 2011, respectively. These advertising expenses are shown net of cooperative advertising considerations received from vendors, substantially all of which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products. The amount of cooperative advertising consideration netted against advertising expense was $25.0 million, $31.1 million and $25.4 million in 2013, 2012 and 2011, respectively. The prepaid advertising asset was $2.4 million and $3.2 million at December 31, 2013 and 2012, respectively. | ||||||||||||
Stock-Based Compensation | ' | |||||||||||
Stock-Based Compensation | ||||||||||||
The Company has stock-based employee compensation plans, which are more fully described in Note 10. The Company estimates the fair value for the options granted on the grant date using a Black-Scholes option-pricing model and accounts for stock-based compensation under the fair value recognition provisions codified in ASC Topic 718, Stock Compensation. The fair value of each share of restricted stock awarded is equal to the market value of a share of the Company’s common stock on the grant date. | ||||||||||||
Deferred Income Taxes | ' | |||||||||||
Deferred Income Taxes | ||||||||||||
Deferred income taxes represent primarily temporary differences between the amounts of assets and liabilities for financial and tax reporting purposes. The Company’s largest temporary differences arise principally from the use of accelerated depreciation methods on lease merchandise for tax purposes. | ||||||||||||
Earnings Per Share | ' | |||||||||||
Earnings per Share | ||||||||||||
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”) and restricted stock awards (“RSAs”) as determined under the treasury stock method. The following table shows the calculation of dilutive stock awards for the years ended December 31 (shares in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average shares outstanding | 75,747 | 75,820 | 78,101 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options | 421 | 789 | 998 | |||||||||
RSUs | 206 | 210 | 237 | |||||||||
RSAs | 16 | 7 | 3 | |||||||||
Weighted average shares outstanding assuming dilution | 76,390 | 76,826 | 79,339 | |||||||||
Approximately 53,000 stock-based awards were excluded from the computations of earnings per share assuming dilution in 2012 because the awards would have been anti-dilutive for the year presented. No stock options, RSUs or RSAs were anti-dilutive during 2013 or 2011. In addition, under the terms of the Company’s performance-based RSUs, approximately 175,000 RSUs may be earned based on the achievement of revenue and pre-tax profit margin targets applicable to performance periods beginning subsequent to December 31, 2013. Refer to Note 10 for additional information regarding the Company’s restricted stock arrangements. | ||||||||||||
Lease Merchandise | ' | |||||||||||
Lease Merchandise | ||||||||||||
The Company’s lease merchandise consists primarily of consumer electronics, computers, furniture, appliances, and household accessories and is recorded at cost, which includes overhead from production facilities, shipping costs and warehousing costs. The sales and lease ownership stores depreciate merchandise over the lease agreement period, generally 12 to 24 months (monthly agreements) or 60 to 120 weeks (weekly agreements) when on lease and 36 months when not on lease, to a 0% salvage value. The Company’s policies require weekly lease merchandise counts at the store, which include write-offs for unsalable, damaged, or missing merchandise inventories. Full physical inventories are generally taken at the fulfillment and manufacturing facilities two to four times a year, and appropriate provisions are made for missing, damaged and unsalable merchandise. In addition, the Company monitors lease merchandise levels and mix by division, store, and fulfillment center, as well as the average age of merchandise on hand. If unsalable lease merchandise cannot be returned to vendors, it is adjusted to its net realizable value or written off. | ||||||||||||
All lease merchandise is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off. The Company records lease merchandise adjustments on the allowance method. Lease merchandise write-offs totaled $58.0 million, $54.9 million and $46.2 million during the years ended December 31, 2013, 2012 and 2011, respectively, and are included in operating expenses in the accompanying consolidated statements of earnings. | ||||||||||||
Cash and Cash Equivalents | ' | |||||||||||
Cash and Cash Equivalents | ||||||||||||
The Company classifies highly liquid investments with maturity dates of less than three months when purchased as cash equivalents. The Company maintains its cash and cash equivalents in a limited number of banks. Bank balances typically exceed coverage provided by the Federal Deposit Insurance Corporation. However, due to the size and strength of the banks where the balances are held, such exposure to loss is considered minimal. | ||||||||||||
Investments | ' | |||||||||||
Investments | ||||||||||||
The Company maintains investments in various corporate debt securities, or bonds. The Company has the positive intent and ability to hold its investments in debt securities to maturity. Accordingly, the Company classifies its investments in debt securities, which mature at various dates from 2014 to 2015, as held-to-maturity securities and carries the investments at amortized cost in the consolidated balance sheets. | ||||||||||||
The Company evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. | ||||||||||||
Accounts Receivable | ' | |||||||||||
Accounts Receivable | ||||||||||||
Accounts receivable consist primarily of receivables due from customers of Company-operated stores, corporate receivables incurred during the normal course of business (primarily related to vendor consideration, real estate leasing activities and in-transit credit card transactions) and franchisee obligations. Accounts receivable, net of allowances, consists of the following as of December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | ||||||||||
Customers | $ | 8,275 | $ | 7,840 | ||||||||
Corporate | 16,730 | 17,215 | ||||||||||
Franchisee | 43,679 | 49,102 | ||||||||||
$ | 68,684 | $ | 74,157 | |||||||||
The Company maintains an allowance for doubtful accounts. The reserve for returns is calculated based on the historical collection experience associated with lease receivables. The Company’s policy is to write off lease receivables that are 60 days or more past due on pre-determined dates occurring twice monthly. The following is a summary of the Company’s allowance for doubtful accounts as of December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
Beginning Balance | $ | 6,001 | $ | 4,768 | $ | 4,544 | ||||||
Accounts written off | (34,723 | ) | (30,609 | ) | (25,178 | ) | ||||||
Bad debt expense | 35,894 | 31,842 | 25,402 | |||||||||
Ending Balance | $ | 7,172 | $ | 6,001 | $ | 4,768 | ||||||
Property, Plant and Equipment | ' | |||||||||||
Property, Plant and Equipment | ||||||||||||
The Company records property, plant and equipment at cost. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the respective assets, which range from five to 40 years for buildings and improvements and from one to fifteen years for other depreciable property and equipment. Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software, which ranges from five to 10 years. | ||||||||||||
Gains and losses related to dispositions and retirements are recognized as incurred. Maintenance and repairs are also expensed as incurred; renewals and betterments are capitalized. Depreciation expense for property, plant and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $53.3 million, $53.1 million and $45.2 million during the years ended December 31, 2013, 2012 and 2011, respectively. Amortization of previously capitalized software development costs, which is a component of depreciation expense for property, plant and equipment, was $3.3 million, $2.6 million and $1.5 million during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
The Company assesses its long-lived assets other than goodwill for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. When it is determined that the carrying values of the assets are not recoverable, the Company compares the carrying values of the assets to their fair values as estimated using discounted expected future cash flows, market values or replacement values for similar assets. The amount by which the carrying value exceeds the fair value of the asset, if any, is recognized as an impairment loss. | ||||||||||||
Assets Held for Sale | ' | |||||||||||
Assets Held for Sale | ||||||||||||
Certain properties, primarily consisting of parcels of land and commercial buildings, met the held for sale classification criteria at December 31, 2013 and 2012. After adjustment to fair value, the $15.8 million and $11.1 million carrying value of these properties has been classified as assets held for sale in the consolidated balance sheets as of December 31, 2013 and 2012, respectively. The Company estimated the fair values of these properties using market values for similar properties and these properties are considered Level 2 assets as defined in ASC Topic 820, Fair Value Measurements. | ||||||||||||
The Company recorded impairment charges of $3.8 million, $1.1 million and $453,000 in 2013, 2012 and 2011, respectively. Such impairment charges related primarily to the impairment of various land outparcels and buildings included in the Sales and Lease Ownership segment that the Company decided not to utilize for future expansion and are generally included in other operating expense (income), net within the consolidated statements of earnings. Impairment charges for the year ended December 31, 2013 included a $766,000 write-down of the net assets of the RIMCO operating segment in connection with the Company's decision to sell the 27 Company-operated RIMCO stores and has been included in the results of the Other segment. Gains and losses on the disposal of assets held for sale amounted to net gains of $1,247,000 in 2012 and were not significant in 2013 and 2011. | ||||||||||||
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. Impairment occurs when the carrying value of goodwill is not recoverable from future cash flows. The Company performs an assessment of goodwill for impairment at the reporting unit level annually as of September 30 and when events or circumstances indicate that impairment may have occurred. Factors which could necessitate an interim impairment assessment include a sustained decline in the Company’s stock price, prolonged negative industry or economic trends and significant underperformance relative to historical or projected future operating results. | ||||||||||||
The Company has deemed its operating segments to be reporting units due to the fact that operations (stores) included in each operating segment have similar economic characteristics. As of December 31, 2013, the Company had five operating segments and reporting units: Sales and Lease Ownership, HomeSmart, RIMCO, Franchise and Manufacturing. As of December 31, 2013, the Company’s Sales and Lease Ownership and HomeSmart reporting units were the only reporting units with assigned goodwill balances. The following is a summary of the Company’s goodwill by reporting unit at December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | ||||||||||
Sales and Lease Ownership | $ | 224,523 | $ | 219,547 | ||||||||
HomeSmart | 14,658 | 14,648 | ||||||||||
Total | $ | 239,181 | $ | 234,195 | ||||||||
The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of the reporting unit to its carrying value, including goodwill. The Company uses a combination of valuation techniques to determine the fair value of its reporting units, including a multiple of gross revenue approach and discounted cash flow models that use assumptions consistent with those we believe hypothetical marketplace participants would use. The results of the market multiple and discounted cash flow models are evenly weighted in determining reporting unit fair value. | ||||||||||||
If the carrying value of the reporting unit exceeds the fair value, a second step is performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. | ||||||||||||
During the performance of the annual assessment of goodwill for impairment in the 2013, 2012 and 2011 fiscal years, the Company did not identify any reporting units that were not substantially in excess of their carrying values, other than the HomeSmart division for which locations were recently acquired. While no impairment was noted in our impairment test as of September 30, 2013, if profitability is delayed as a result of the significant start-up expenses associated with the HomeSmart stores, there could be a change in the valuation of the HomeSmart reporting unit that may result in the recognition of an impairment loss in future periods. | ||||||||||||
No new indications of impairment existed during the fourth quarter of 2013. As a result, no impairment testing was updated as of December 31, 2013. | ||||||||||||
Other Intangibles | ' | |||||||||||
Other Intangibles | ||||||||||||
Other intangibles represent the value of customer relationships, non-compete agreements and franchise development rights acquired in connection with business acquisitions and are recorded at fair value as determined by the Company. The customer relationship intangible asset is amortized on a straight-line basis over a two-year estimated useful life. The non-compete intangible asset is amortized on a straight-line basis over a three-year useful life. Acquired franchise development rights are amortized on a straight-line basis over the unexpired life of the franchisee’s ten year area development agreement. | ||||||||||||
Insurance Reserves | ' | |||||||||||
Insurance Reserves | ||||||||||||
Estimated insurance reserves are accrued primarily for group health, general liability, automobile liability and workers compensation benefits provided to the Company’s employees. Estimates for these insurance reserves are made based on actual reported but unpaid claims and actuarial analyses of the projected claims run off for both reported and incurred but not reported claims. | ||||||||||||
Asset Retirement Obligations | ' | |||||||||||
Asset Retirement Obligations | ||||||||||||
The Company accrues for asset retirement obligations, which relate to expected costs to remove exterior signage, in the period in which the obligations are incurred. These costs are accrued at estimated fair value. When the related liability is initially recorded, the Company capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its settlement value and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company recognizes a gain or loss for any differences between the settlement amount and the liability recorded. Asset retirement obligations amounted to approximately $2.4 million and $2.3 million as of December 31, 2013 and 2012, respectively. | ||||||||||||
Derivative Financial Instruments | ' | |||||||||||
Derivative Financial Instruments | ||||||||||||
The Company utilizes derivative financial instruments, from time to time, to mitigate its exposure to certain market risks associated with its ongoing operations for a portion of the year. The primary risk it seeks to manage through the use of derivative financial instruments is commodity price risk, including the risk of increases in the market price of diesel fuel used in the Company’s delivery vehicles. All derivative financial instruments are recorded at fair value on the consolidated balance sheets. The Company does not use derivative financial instruments for trading or speculative purposes. The Company is exposed to counterparty credit risk on all its derivative financial instruments. The counterparties to these contracts are high credit quality commercial banks, which the Company believes largely minimizes the risk of counterparty default. The Company did not hold any derivative financial instruments as of December 31, 2013 or 2012. | ||||||||||||
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 our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | ||||||||||||
The Company measures assets held for sale at fair value on a nonrecurring basis and records impairment charges when they are deemed to be impaired. The Company maintains certain financial assets and liabilities, including investments and fixed-rate long term debt, 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. | ||||||||||||
Foreign Currency | ' | |||||||||||
Foreign Currency | ||||||||||||
The financial statements of international subsidiaries are translated to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenues, costs and expenses. Translation gains and losses of international subsidiaries are recorded in accumulated other comprehensive income as a component of shareholders’ equity. Foreign currency transaction gains and losses are recorded as a component of other non-operating income (expense), net in the consolidated statements of earnings and amounted to losses of approximately $1.0 million and $465,000 during 2013 and 2011, respectively, and gains of $2.0 million during 2012. | ||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||
Recent Accounting Pronouncements | ||||||||||||
In February 2013, the FASB issued Accounting Standards Update 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-2”). ASU 2013-2 requires preparers to report, in one place, information about reclassifications out of accumulated other comprehensive income (“AOCI”). ASU 2013-2 also requires companies to report changes in AOCI balances. For significant items reclassified out of AOCI to net income in their entirety in the same reporting period, reporting (either on the face of the statement where net income is presented or in the notes) is required about the effect of the reclassifications on the respective line items in the statement where net income is presented. For items that are not reclassified to net income in their entirety in the same reporting period, a cross reference to other disclosures currently required under US GAAP is required in the notes. The above information must be presented in one place (parenthetically on the face of the financial statements by income statement line item or in a note). ASU 2013-2 was effective for the Company beginning in 2013. The adoption of ASU 2013-2 did not have a material effect on the Company's consolidated financial statements. |
Business_And_Summary_Of_Signif2
Business And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Text Block [Abstract] | ' | |||||||||||
Store Count by Ownership Type | ' | |||||||||||
The following table presents store count by ownership type: | ||||||||||||
Stores at December 31 (Unaudited) | 2013 | 2012 | 2011 | |||||||||
Company-operated stores | ||||||||||||
Sales and Lease Ownership | 1,262 | 1,227 | 1,144 | |||||||||
HomeSmart | 81 | 78 | 71 | |||||||||
RIMCO | 27 | 19 | 16 | |||||||||
Aaron’s Office Furniture | — | — | 1 | |||||||||
Total Company-operated stores | 1,370 | 1,324 | 1,232 | |||||||||
Franchised stores1 | 781 | 749 | 713 | |||||||||
Systemwide stores | 2,151 | 2,073 | 1,945 | |||||||||
1 As of December 31, 2013, 2012 and 2011, 940, 929 and 943 franchises had been awarded, respectively. | ||||||||||||
Calculation of Dilutive Stock Awards | ' | |||||||||||
The following table shows the calculation of dilutive stock awards for the years ended December 31 (shares in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average shares outstanding | 75,747 | 75,820 | 78,101 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options | 421 | 789 | 998 | |||||||||
RSUs | 206 | 210 | 237 | |||||||||
RSAs | 16 | 7 | 3 | |||||||||
Weighted average shares outstanding assuming dilution | 76,390 | 76,826 | 79,339 | |||||||||
Accounts Receivable Net of Allowances | ' | |||||||||||
Accounts receivable, net of allowances, consists of the following as of December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | ||||||||||
Customers | $ | 8,275 | $ | 7,840 | ||||||||
Corporate | 16,730 | 17,215 | ||||||||||
Franchisee | 43,679 | 49,102 | ||||||||||
$ | 68,684 | $ | 74,157 | |||||||||
Allowance for Doubtful Accounts | ' | |||||||||||
The following is a summary of the Company’s allowance for doubtful accounts as of December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
Beginning Balance | $ | 6,001 | $ | 4,768 | $ | 4,544 | ||||||
Accounts written off | (34,723 | ) | (30,609 | ) | (25,178 | ) | ||||||
Bad debt expense | 35,894 | 31,842 | 25,402 | |||||||||
Ending Balance | $ | 7,172 | $ | 6,001 | $ | 4,768 | ||||||
Summary of Goodwill by Reporting Unit | ' | |||||||||||
The following is a summary of the Company’s goodwill by reporting unit at December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | ||||||||||
Sales and Lease Ownership | $ | 224,523 | $ | 219,547 | ||||||||
HomeSmart | 14,658 | 14,648 | ||||||||||
Total | $ | 239,181 | $ | 234,195 | ||||||||
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Text Block [Abstract] | ' | |||||||||||
Summary of Acquisitions of Lease Contracts, Merchandise and Related Assets of Sales and Lease Ownership Stores | ' | |||||||||||
The following table summarizes the Company’s acquisitions of lease contracts, merchandise and the related assets of sales and lease ownership stores, none of which was individually material to the Company’s consolidated financial statements, during the years ended December 31: | ||||||||||||
(In Thousands, except for store data) | 2013 | 2012 | 2011 | |||||||||
Number of stores acquired, net | 10 | 22 | 52 | |||||||||
Aggregate purchase price (primarily cash consideration) | $ | 10,898 | $ | 31,617 | $ | 41,425 | ||||||
Purchase price allocation: | ||||||||||||
Lease Merchandise | 4,016 | 11,936 | 13,385 | |||||||||
Property, Plant and Equipment | 467 | 739 | 500 | |||||||||
Other Current Assets and Current Liabilities | (228 | ) | 38 | 34 | ||||||||
Identifiable Intangible Assets1: | ||||||||||||
Customer Relationships | 557 | 1,725 | 2,675 | |||||||||
Non-Compete Agreements | 405 | 1,201 | 1,688 | |||||||||
Acquired Franchise Development Rights | 252 | 764 | 255 | |||||||||
Goodwill2 | 5,429 | 15,214 | 22,888 | |||||||||
1 The weighted-average amortization period for the Company’s acquired intangible assets was 2.9 years, 3.1 years and 2.6 years in 2013, 2012 and 2011, respectively. The weighted-average amortization period by major intangible asset class for acquisitions completed during 2013, 2012 and 2011 was 2 years for customer relationships, 3 years for non-compete agreements and a range of 4.9 years to 6.9 years for acquired franchise development rights. | ||||||||||||
2 Goodwill recognized from acquisitions primarily relates to the future strategic benefits expected to be realized upon integrating the business. All goodwill resulting from the Company’s 2013, 2012 and 2011 acquisitions is expected to be deductible for tax purposes. |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||
Summary of Carrying Value of Goodwill by Operating Segment | ' | |||||||||||||||||||||||
The following table provides information related to the carrying value of the Company’s goodwill by operating segment: | ||||||||||||||||||||||||
(In Thousands) | Sales and Lease | HomeSmart | Total | |||||||||||||||||||||
Ownership | ||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 205,509 | $ | 13,833 | $ | 219,342 | ||||||||||||||||||
Additions | 14,399 | 815 | 15,214 | |||||||||||||||||||||
Disposals | (361 | ) | — | (361 | ) | |||||||||||||||||||
Balance at December 31, 2012 | 219,547 | 14,648 | 234,195 | |||||||||||||||||||||
Additions | 5,429 | — | 5,429 | |||||||||||||||||||||
Disposals | (499 | ) | — | (499 | ) | |||||||||||||||||||
Purchase Price Adjustments | 46 | 10 | 56 | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 224,523 | $ | 14,658 | $ | 239,181 | ||||||||||||||||||
Summary of Identifiable Intangible Assets | ' | |||||||||||||||||||||||
The following is a summary of the Company’s identifiable intangible assets by category at December 31: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(In Thousands) | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Customer Relationships | $ | 2,282 | $ | (1,463 | ) | $ | 819 | $ | 4,377 | $ | (2,170 | ) | $ | 2,207 | ||||||||||
Non-Compete Agreements | 3,265 | (2,001 | ) | 1,264 | 3,408 | (1,471 | ) | 1,937 | ||||||||||||||||
Acquired Franchise Development Rights | 3,529 | (2,077 | ) | 1,452 | 4,566 | (2,684 | ) | 1,882 | ||||||||||||||||
Total | $ | 9,076 | $ | (5,541 | ) | $ | 3,535 | $ | 12,351 | $ | (6,325 | ) | $ | 6,026 | ||||||||||
Estimated Future Amortization Expense | ' | |||||||||||||||||||||||
As of December 31, 2013, estimated future amortization expense for the next five years related to identifiable intangible assets is as follows: | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
2014 | $ | 1,983 | ||||||||||||||||||||||
2015 | 793 | |||||||||||||||||||||||
2016 | 367 | |||||||||||||||||||||||
2017 | 201 | |||||||||||||||||||||||
2018 | 98 | |||||||||||||||||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||||||||||
The following table summarizes financial liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Deferred Compensation Liability | $ | — | $ | (12,557 | ) | $ | — | $ | — | $ | (9,518 | ) | $ | — | ||||||||||
Assets Measured at Fair Value on Nonrecurring Basis | ' | |||||||||||||||||||||||
The following table summarizes non-financial assets measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets Held for Sale | $ | — | $ | 15,840 | $ | — | $ | — | $ | 11,104 | $ | — | ||||||||||||
Fair Value of Assets (Liabilities) Not Measured at Fair Value In Consolidated Balance Sheets | ' | |||||||||||||||||||||||
The following table summarizes the fair value of assets (liabilities) that are not measured at fair value in the consolidated balance sheets, but for which the fair value is disclosed: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Corporate Bonds 1 | $ | — | $ | 91,785 | $ | — | $ | — | $ | 67,470 | $ | — | ||||||||||||
Perfect Home Notes 2 | — | — | 20,661 | — | — | 18,449 | ||||||||||||||||||
Fixed-Rate Long Term Debt 3 | — | (130,687 | ) | — | — | (127,261 | ) | — | ||||||||||||||||
1 The fair value of corporate bonds is determined through the use of model-based valuation techniques for which all significant assumptions are observable in the market. | ||||||||||||||||||||||||
2 The Perfect Home notes were initially valued at cost. The Company periodically reviews the valuation utilizing company-specific transactions or changes in Perfect Home's financial performance to determine if fair value adjustments are necessary. | ||||||||||||||||||||||||
3 The fair value of fixed-rate long term debt is estimated using the present value of underlying cash flows discounted at a current market yield for similar instruments. The carrying value of fixed-rate long term debt was $125.0 million at December 31, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Investments Classified as Held to Maturity Securities | ' | |||||||||||||||||||||||
At December 31, 2013 and 2012, investments classified as held-to-maturity securities consisted of the following: | ||||||||||||||||||||||||
Gross Unrealized | ||||||||||||||||||||||||
(In Thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Corporate Bonds | $ | 91,730 | $ | 98 | $ | (43 | ) | $ | 91,785 | |||||||||||||||
Perfect Home Notes | 20,661 | — | — | 20,661 | ||||||||||||||||||||
Total | $ | 112,391 | $ | 98 | $ | (43 | ) | $ | 112,446 | |||||||||||||||
2012 | ||||||||||||||||||||||||
Corporate Bonds | $ | 67,412 | $ | 99 | $ | (41 | ) | $ | 67,470 | |||||||||||||||
Perfect Home Notes | 18,449 | — | — | 18,449 | ||||||||||||||||||||
Total | $ | 85,861 | $ | 99 | $ | (41 | ) | $ | 85,919 | |||||||||||||||
Amortized Cost and Fair Value of Held to Maturity Securities | ' | |||||||||||||||||||||||
The amortized cost and fair value of held-to-maturity securities by contractual maturity as of December 31, 2013 are as follows: | ||||||||||||||||||||||||
(In Thousands) | Amortized Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | 55,250 | $ | 55,284 | ||||||||||||||||||||
Due in years one through two | 57,141 | 57,162 | ||||||||||||||||||||||
Total | $ | 112,391 | $ | 112,446 | ||||||||||||||||||||
Held to Maturity Securities with Gross Unrealized Losses | ' | |||||||||||||||||||||||
Information pertaining to held-to-maturity securities with gross unrealized losses is as follows. | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
(In Thousands) | Fair Value | Gross Unrealized | Fair Value | Gross Unrealized | ||||||||||||||||||||
Losses | Losses | |||||||||||||||||||||||
Corporate Bonds | $ | 31,453 | $ | (43 | ) | $ | 22,785 | $ | (41 | ) | ||||||||||||||
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Text Block [Abstract] | ' | |||||||
Summary of Property, Plant and Equipment | ' | |||||||
Following is a summary of the Company’s property, plant, and equipment at December 31: | ||||||||
(In Thousands) | 2013 | 2012 | ||||||
Land | $ | 26,021 | $ | 25,285 | ||||
Buildings and Improvements | 84,520 | 81,773 | ||||||
Leasehold Improvements and Signs | 120,702 | 120,883 | ||||||
Fixtures and Equipment1 | 172,483 | 152,436 | ||||||
Assets Under Capital Leases: | ||||||||
with Related Parties | 10,574 | 8,158 | ||||||
with Unrelated Parties | 10,550 | 10,564 | ||||||
Construction in Progress | 4,347 | 5,414 | ||||||
429,197 | 404,513 | |||||||
Less: Accumulated Depreciation and Amortization | (197,904 | ) | (173,915 | ) | ||||
$ | 231,293 | $ | 230,598 | |||||
1 | Includes internal-use software development costs of $36.3 million and $22.6 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of internal-use software development costs amounted to $9.5 million and $6.6 million as of December 31, 2013 and 2012, respectively. |
Credit_Facilities_Tables
Credit Facilities (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Text Block [Abstract] | ' | |||||
Summary of Company's Credit Facilities | ' | |||||
Following is a summary of the Company’s credit facilities at December 31: | ||||||
(In Thousands) | 2013 | 2012 | ||||
Senior Unsecured Notes | $125,000 | $125,000 | ||||
Capital Lease Obligation: | ||||||
with Related Parties | 7,412 | 6,122 | ||||
with Unrelated Parties | 7,042 | 7,156 | ||||
Other Debt | 3,250 | 3,250 | ||||
$142,704 | $141,528 | |||||
Future Maturities of Long Term Debt and Capital Lease Obligations | ' | |||||
Future maturities under the Company’s long-term debt and capital lease obligations are as follows: | ||||||
(In Thousands) | ||||||
2014 | $ | 27,529 | ||||
2015 | 31,015 | |||||
2016 | 27,740 | |||||
2017 | 27,659 | |||||
2018 | 26,355 | |||||
Thereafter | 2,406 | |||||
$ | 142,704 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Text Block [Abstract] | ' | |||||||||||
Summary of Income Tax Expense | ' | |||||||||||
Following is a summary of the Company’s income tax expense for the years ended December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
Current Income Tax Expense: | ||||||||||||
Federal | $ | 91,664 | $ | 116,234 | $ | — | ||||||
State | 9,393 | 10,819 | 9,797 | |||||||||
101,057 | 127,053 | 9,797 | ||||||||||
Deferred Income Tax Expense (Benefit): | ||||||||||||
Federal | (35,941 | ) | (23,035 | ) | 62,015 | |||||||
State | (822 | ) | (206 | ) | (2,202 | ) | ||||||
(36,763 | ) | (23,241 | ) | 59,813 | ||||||||
$ | 64,294 | $ | 103,812 | $ | 69,610 | |||||||
Components of Deferred Income Tax Liabilities and Assets | ' | |||||||||||
Significant components of the Company’s deferred income tax liabilities and assets at December 31 are as follows: | ||||||||||||
(In Thousands) | 2013 | 2012 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Lease Merchandise and Property, Plant and Equipment | $ | 249,192 | $ | 279,926 | ||||||||
Goodwill & Other Intangibles | 34,512 | 30,754 | ||||||||||
Other, Net | 2,782 | 3,260 | ||||||||||
Total Deferred Tax Liabilities | 286,486 | 313,940 | ||||||||||
Deferred Tax Assets: | ||||||||||||
Accrued Liabilities | 36,778 | 25,365 | ||||||||||
Advance Payments | 15,400 | 15,834 | ||||||||||
Other, Net | 8,032 | 9,677 | ||||||||||
Total Deferred Tax Assets | 60,210 | 50,876 | ||||||||||
Less Valuation Allowance | (682 | ) | (657 | ) | ||||||||
Net Deferred Tax Liabilities | $ | 226,958 | $ | 263,721 | ||||||||
Effective Tax Rate Differs from Statutory United States Federal Income Tax Rate | ' | |||||||||||
The Company’s effective tax rate differs from the statutory United States Federal income tax rate for the years ended December 31 as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory Rate | 35 | % | 35 | % | 35 | % | ||||||
Increases in United States Federal Taxes | ||||||||||||
Resulting From: | ||||||||||||
State Income Taxes, Net of Federal Income Tax Benefit | 3.1 | 2.5 | 2.7 | |||||||||
Federal Tax Credits | (1.7 | ) | (.1 | ) | (.3 | ) | ||||||
Other, Net | (1.6 | ) | 0.1 | 0.6 | ||||||||
Effective Tax Rate | 34.8 | % | 37.5 | % | 38 | % | ||||||
Summary of Activity Related to Uncertain Tax Positions | ' | |||||||||||
The following table summarizes the activity related to the Company’s uncertain tax positions: | ||||||||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
Balance at January 1, | $ | 1,258 | $ | 1,412 | $ | 1,315 | ||||||
Additions based on tax positions related to the current year | 454 | 178 | 178 | |||||||||
Additions for tax positions of prior years | 423 | 83 | 22 | |||||||||
Prior year reductions | (5 | ) | (315 | ) | (13 | ) | ||||||
Statute expirations | (85 | ) | (83 | ) | (90 | ) | ||||||
Settlements | (85 | ) | (17 | ) | — | |||||||
Balance at December 31, | $ | 1,960 | $ | 1,258 | $ | 1,412 | ||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Text Block [Abstract] | ' | |||
Future Minimum Lease Payments Required under Operating Leases | ' | |||
Future minimum lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year as of December 31, 2013 are as follows: | ||||
(In Thousands) | ||||
2014 | $ | 113,067 | ||
2015 | 96,508 | |||
2016 | 75,024 | |||
2017 | 57,160 | |||
2018 | 43,225 | |||
Thereafter | 143,583 | |||
$ | 528,567 | |||
Stock_Options_And_Restricted_S1
Stock Options And Restricted Stock (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Summary Information about Stock Options Outstanding | ' | ||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Weighted Average | Options Exercisable | ||||||||||||||||
Range of Exercise | Number Outstanding | Remaining Contractual | Weighted Average | Number Exercisable | Weighted Average | ||||||||||||
Prices | December 31, 2013 | Life (in years) | Exercise Price | December 31, 2013 | Exercise Price | ||||||||||||
$10.01-15.00 | 471,250 | 4.13 | $ | 14.15 | 471,250 | $ | 14.15 | ||||||||||
15.01-19.92 | 215,250 | 6.11 | 19.9 | 57,750 | 19.83 | ||||||||||||
$10.01-19.92 | 686,500 | 4.75 | 15.95 | 529,000 | 14.77 | ||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The table below summarizes option activity for the year ended December 31, 2013: | |||||||||||||||||
Options | Weighted Average | Weighted Average | Aggregate | Weighted | |||||||||||||
(In Thousands) | Exercise Price | Remaining | Intrinsic Value | Average Fair | |||||||||||||
Contractual Term | (in Thousands) | Value | |||||||||||||||
Outstanding at January 1, 2013 | 1,513 | $ | 14.81 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (728 | ) | 13.71 | ||||||||||||||
Forfeited/expired | (98 | ) | 15.29 | ||||||||||||||
Outstanding at December 31, 2013 | 687 | 15.95 | 4.75 | $ | 9,233 | $ | 7.02 | ||||||||||
Expected to Vest at December 31, 2013 | 132 | 19.92 | 6.15 | 1,253 | 10.67 | ||||||||||||
Exercisable at December 31, 2013 | 529 | 14.77 | 4.33 | 7,740 | 5.94 | ||||||||||||
Summary of Restricted Stock Activity | ' | ||||||||||||||||
The following table summarizes information about restricted stock activity: | |||||||||||||||||
Restricted Stock | Weighted Average | ||||||||||||||||
(In Thousands) | Fair Value | ||||||||||||||||
Non-vested at January 1, 2013 | 696 | $ | 23.28 | ||||||||||||||
Granted | 307 | 29.23 | |||||||||||||||
Vested | (6 | ) | 28.22 | ||||||||||||||
Forfeited | (315 | ) | 23.6 | ||||||||||||||
Non-vested at December 31, 2013 | 682 | 25.77 | |||||||||||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Text Block [Abstract] | ' | |||||||||||
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations | ' | |||||||||||
Information on segments and a reconciliation to earnings before income taxes are as follows for the years ended December 31: | ||||||||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
Revenues From External Customers: | ||||||||||||
Sales and Lease Ownership | $ | 2,076,269 | $ | 2,068,124 | $ | 1,920,372 | ||||||
HomeSmart | 62,840 | 55,226 | 15,624 | |||||||||
RIMCO | 20,596 | 16,674 | 11,317 | |||||||||
Franchise | 68,575 | 66,655 | 63,255 | |||||||||
Manufacturing | 106,523 | 95,693 | 89,430 | |||||||||
Other | 1,562 | 3,014 | 5,539 | |||||||||
Revenues of Reportable Segments | 2,336,365 | 2,305,386 | 2,105,537 | |||||||||
Elimination of Intersegment Revenues | (103,834 | ) | (95,150 | ) | (89,430 | ) | ||||||
Cash to Accrual Adjustments | 2,100 | 2,591 | (3,529 | ) | ||||||||
Total Revenues from External Customers | $ | 2,234,631 | $ | 2,212,827 | $ | 2,012,578 | ||||||
Earnings (Loss) Before Income Taxes: | ||||||||||||
Sales and Lease Ownership | $ | 183,965 | $ | 244,014 | $ | 144,232 | ||||||
(In Thousands) | 2013 | 2012 | 2011 | |||||||||
HomeSmart | (3,428 | ) | (6,962 | ) | (7,283 | ) | ||||||
RIMCO | (414 | ) | 573 | 153 | ||||||||
Franchise | 54,171 | 52,672 | 49,577 | |||||||||
Manufacturing | 107 | 382 | 2,960 | |||||||||
Other | (55,700 | ) | (12,910 | ) | 119 | |||||||
Earnings Before Income Taxes for Reportable Segments | 178,701 | 277,769 | 189,758 | |||||||||
Elimination of Intersegment Profit | (94 | ) | (393 | ) | (2,960 | ) | ||||||
Cash to Accrual and Other Adjustments | 6,353 | (521 | ) | (3,421 | ) | |||||||
Total Earnings Before Income Taxes | $ | 184,960 | $ | 276,855 | $ | 183,377 | ||||||
Assets: | ||||||||||||
Sales and Lease Ownership | $ | 1,431,720 | $ | 1,410,075 | $ | 1,285,807 | ||||||
HomeSmart | 47,970 | 58,347 | 50,600 | |||||||||
RIMCO | 13,195 | 11,737 | 7,344 | |||||||||
Franchise | 47,788 | 53,820 | 56,131 | |||||||||
Manufacturing1 | 24,305 | 24,787 | 21,691 | |||||||||
Other | 262,198 | 254,163 | 310,326 | |||||||||
Total Assets | $ | 1,827,176 | $ | 1,812,929 | $ | 1,731,899 | ||||||
1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the consolidated balance sheets of $14.0 million, $14.1 million and $11.2 million as of December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Depreciation and Amortization: | ||||||||||||
Sales and Lease Ownership | $ | 641,576 | $ | 620,774 | $ | 581,945 | ||||||
HomeSmart | 23,977 | 20,482 | 5,933 | |||||||||
RIMCO | 6,703 | 5,247 | 3,198 | |||||||||
Franchise | 156 | 146 | 41 | |||||||||
Manufacturing | 2,081 | 4,430 | 1,294 | |||||||||
Other | 10,612 | 7,256 | 8,260 | |||||||||
Total Depreciation and Amortization | $ | 685,105 | $ | 658,335 | $ | 600,671 | ||||||
Interest Expense: | ||||||||||||
Sales and Lease Ownership | $ | 4,470 | $ | 5,345 | $ | 4,348 | ||||||
HomeSmart | 916 | 846 | 201 | |||||||||
RIMCO | 227 | 186 | 125 | |||||||||
Franchise | — | — | — | |||||||||
Manufacturing | 80 | 106 | 142 | |||||||||
Other | (80 | ) | (91 | ) | (107 | ) | ||||||
Total Interest Expense | $ | 5,613 | $ | 6,392 | $ | 4,709 | ||||||
Capital Expenditures: | ||||||||||||
Sales and Lease Ownership | $ | 30,831 | $ | 33,460 | $ | 51,639 | ||||||
HomeSmart | 994 | 4,121 | 10,950 | |||||||||
RIMCO | 1,650 | 2,020 | 1,763 | |||||||||
Franchise | — | — | — | |||||||||
Manufacturing | 1,531 | 4,493 | 2,107 | |||||||||
Other | 23,139 | 20,979 | 11,752 | |||||||||
Total Capital Expenditures | $ | 58,145 | $ | 65,073 | $ | 78,211 | ||||||
Revenues From Canadian Operations (included in totals above): | ||||||||||||
Sales and Lease Ownership | $ | 300 | $ | 308 | $ | 3,258 | ||||||
Assets From Canadian Operations (included in totals above): | ||||||||||||
Sales and Lease Ownership | $ | 1,021 | $ | 1,391 | $ | 1,527 | ||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
Quarterly Financial Information (Unaudited) | ' | |||||||||||||||
(In Thousands, Except Per Share Data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Revenues | $ | 593,010 | $ | 550,545 | $ | 537,224 | $ | 553,852 | ||||||||
Gross Profit * | 302,439 | 282,276 | 265,056 | 263,080 | ||||||||||||
Earnings Before Income Taxes | 81,042 | 40,387 | 29,420 | 34,111 | ||||||||||||
Net Earnings | 51,000 | 25,854 | 21,138 | 22,674 | ||||||||||||
Earnings Per Share | 0.67 | 0.34 | 0.28 | 0.3 | ||||||||||||
Earnings Per Share Assuming Dilution | 0.67 | 0.34 | 0.28 | 0.3 | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Revenues | $ | 583,299 | $ | 537,279 | $ | 526,883 | $ | 565,366 | ||||||||
Gross Profit * | 284,083 | 266,913 | 259,957 | 264,396 | ||||||||||||
Earnings Before Income Taxes | 115,029 | 58,590 | 46,044 | 57,192 | ||||||||||||
Net Earnings | 71,226 | 36,244 | 28,941 | 36,632 | ||||||||||||
Earnings Per Share | 0.94 | 0.48 | 0.38 | 0.48 | ||||||||||||
Earnings Per Share Assuming Dilution | 0.92 | 0.47 | 0.38 | 0.48 | ||||||||||||
* Gross profit is the sum of lease revenues and fees, retail sales, and non-retail sales less retail cost of sales, non-retail cost of sales, depreciation of lease merchandise and write-offs of lease merchandise. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 14, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | Customer Relationships | Acquired Franchise Development Rights | Non-Compete Agreements | Software development | Software development | Software development | Aarons Office Furniture | Merchandise Not On Lease | RIMCO | RIMCO | RIMCO | RIMCO | Sales and Lease Ownership | Sales and Lease Ownership | Sales and Lease Ownership | HomeSmart | HomeSmart | HomeSmart | Other | Agreement One | Agreement One | Agreement Two | Agreement Two | Agreement Three | Agreement Three | Maximum | Maximum | Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | Minimum | Minimum | Restricted stock units | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | |
segments | store | store | USD ($) | USD ($) | USD ($) | store | USD ($) | store | store | Subsequent Event | USD ($) | USD ($) | USD ($) | store | store | store | USD ($) | Sales and Lease Ownership | HomeSmart | Sales and Lease Ownership | HomeSmart | Sales and Lease Ownership | HomeSmart | USD ($) | Merchandise On Lease | Buildings and Improvements | Other depreciable property and equipment | Software | USD ($) | Merchandise On Lease | Buildings and Improvements | Other depreciable property and equipment | Software | store | USD ($) | GBP (£) | USD ($) | GBP (£) | Maximum | ||||||
store | store | right | USD ($) | ||||||||||||||||||||||||||||||||||||||||||
store | |||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stores sold during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stores closed | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Franchises granted | 940 | 929 | 943 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of common stock outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.50% | ' | ' | ' | ' | ' |
Number of retail stores | 1,370 | 1,324 | 1,232 | ' | ' | ' | ' | ' | ' | ' | ' | 27 | 19 | 16 | ' | ' | ' | ' | 81 | 78 | 71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64 | ' | ' | ' | ' | ' |
Held to maturity securities | $112,391,000 | $85,861,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,700,000 | £ 12,500,000 | $18,400,000 | £ 11,400,000 | ' |
Held to maturity securities, face value | 112,391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Investment included in prepaid expenses and other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 |
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,700,000 | ' | ' | ' | ' |
Period of lease model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | '420 days | '18 months | '630 days | '24 months | '840 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-refundable initial franchise fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of royalty of gross revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Franchise agreement fee revenue | 1,700,000 | 2,400,000 | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty revenue | 59,100,000 | 56,500,000 | 52,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finance fee revenue | 5,100,000 | 4,900,000 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred franchise and area development agreement fees | 3,400,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping and handling costs | 78,600,000 | 74,900,000 | 68,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | 43,000,000 | 36,500,000 | 38,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cooperative advertising consideration netted against advertising expense | 25,000,000 | 31,100,000 | 25,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid advertising asset | 2,400,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive Securities excluded from the computation of earnings per share assuming dilution | ' | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175 | ' | ' | ' | ' | ' | ' |
Lease merchandise, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease merchandise, percentage of salvage value | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease merchandise adjustments | 58,000,000 | 54,900,000 | 46,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '40 years | '15 years | '10 years | ' | ' | '5 years | '1 year | '5 years | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense for property, plant and equipment | 53,300,000 | 53,100,000 | 45,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | 3,700,000 | 3,700,000 | 2,300,000 | ' | ' | ' | 3,300,000 | 2,600,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets Held for Sale | 15,840,000 | 11,104,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 766,000 | ' | ' | ' | 3,800,000 | 1,100,000 | 453,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains and losses on the disposal of assets held for sale | ' | 1,247,000 | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets held-for-sale, capital leased assets, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets held-for-sale, property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating segments | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives of intangibles | ' | ' | ' | '2 years | '10 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligations | 2,400,000 | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency transaction gains and losses | ($1,000,000) | $2,000,000 | ($465,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of franchise rights sold during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Store_Count_by_Ownership_Type_
Store Count by Ownership Type (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
store | store | store | ||||
Franchisor Disclosure [Line Items] | ' | ' | ' | |||
Company operated stores | 1,370 | 1,324 | 1,232 | |||
Sales and Lease Ownership Excluding RIMCO | ' | ' | ' | |||
Franchisor Disclosure [Line Items] | ' | ' | ' | |||
Company operated stores | 1,262 | 1,227 | 1,144 | |||
HomeSmart | ' | ' | ' | |||
Franchisor Disclosure [Line Items] | ' | ' | ' | |||
Company operated stores | 81 | 78 | 71 | |||
RIMCO | ' | ' | ' | |||
Franchisor Disclosure [Line Items] | ' | ' | ' | |||
Company operated stores | 27 | 19 | 16 | |||
Aarons Office Furniture | ' | ' | ' | |||
Franchisor Disclosure [Line Items] | ' | ' | ' | |||
Company operated stores | 0 | 0 | 1 | |||
Franchised Stores | ' | ' | ' | |||
Franchisor Disclosure [Line Items] | ' | ' | ' | |||
Company operated stores | 781 | [1] | 749 | [1] | 713 | [1] |
Systemwide Stores | ' | ' | ' | |||
Franchisor Disclosure [Line Items] | ' | ' | ' | |||
Company operated stores | 2,151 | 2,073 | 1,945 | |||
[1] | As of December 31, 2013, 2012 and 2011, 940, 929 and 943 franchises had been awarded, respectively. |
Store_Count_by_Ownership_Type_1
Store Count by Ownership Type (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
store | store | store | |
Franchisor Disclosure [Line Items] | ' | ' | ' |
Franchises granted | 940 | 929 | 943 |
Calculation_of_Dilutive_Stock_
Calculation of Dilutive Stock Awards (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average shares outstanding | 75,747 | 75,820 | 78,101 |
Weighted average shares outstanding assuming dilution | 76,390 | 76,826 | 79,339 |
Stock Option | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Effect of dilutive securities | 421 | 789 | 998 |
Restricted stock units | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Effect of dilutive securities | 206 | 210 | 237 |
Restricted stock awards | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Effect of dilutive securities | 16 | 7 | 3 |
Accounts_Receivable_Net_of_All
Accounts Receivable Net of Allowances (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Impaired [Line Items] | ' | ' |
Accounts receivable, net of allowances | $68,684 | $74,157 |
Customer | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Accounts receivable, net of allowances | 8,275 | 7,840 |
Corporate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Accounts receivable, net of allowances | 16,730 | 17,215 |
Franchise | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Accounts receivable, net of allowances | $43,679 | $49,102 |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Allowance For Doubtful Accounts [Abstract] | ' | ' | ' |
Beginning Balance | $6,001 | $4,768 | $4,544 |
Accounts written off | -34,723 | -30,609 | -25,178 |
Bad debt expense | 35,894 | 31,842 | 25,402 |
Ending Balance | $7,172 | $6,001 | $4,768 |
Summary_of_Goodwill_by_Reporti
Summary of Goodwill by Reporting Unit (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $239,181 | $234,195 | $219,342 |
Sales and Lease Ownership | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 224,523 | 219,547 | 205,509 |
HomeSmart | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $14,658 | $14,648 | $13,833 |
Summary_of_Acquisitions_of_Lea
Summary of Acquisitions of Lease Contracts, Merchandise and Related Assets of Sales and Lease Ownership Stores (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
store | store | store | ||||
Business Acquisition [Line Items] | ' | ' | ' | |||
Number of stores acquired, net | 10 | 22 | 52 | |||
Aggregate purchase price (primarily cash consideration) | $10,898 | $31,617 | $41,425 | |||
Lease Merchandise | 4,016 | 11,936 | 13,385 | |||
Property, Plant and Equipment | 467 | 739 | 500 | |||
Other Current Assets and Current Liabilities | -228 | 38 | 34 | |||
Goodwill | 5,429 | [1] | 15,214 | [1] | 22,888 | [1] |
Customer Relationships | ' | ' | ' | |||
Business Acquisition [Line Items] | ' | ' | ' | |||
Identifiable intangible assets | 557 | [2] | 1,725 | [2] | 2,675 | [2] |
Non-Compete Agreements | ' | ' | ' | |||
Business Acquisition [Line Items] | ' | ' | ' | |||
Identifiable intangible assets | 405 | [2] | 1,201 | [2] | 1,688 | [2] |
Acquired Franchise Development Rights | ' | ' | ' | |||
Business Acquisition [Line Items] | ' | ' | ' | |||
Identifiable intangible assets | $252 | [2] | $764 | [2] | $255 | [2] |
[1] | Goodwill recognized from acquisitions primarily relates to the future strategic benefits expected to be realized upon integrating the business. All goodwill resulting from the Company’s 2013, 2012 and 2011 acquisitions is expected to be deductible for tax purposes. | |||||
[2] | The weighted-average amortization period for the Company’s acquired intangible assets was 2.9 years, 3.1 years and 2.6 years in 2013, 2012 and 2011, respectively. The weighted-average amortization period by major intangible asset class for acquisitions completed during 2013, 2012 and 2011 was 2 years for customer relationships, 3 years for non-compete agreements and a range of 4.9 years to 6.9 years for acquired franchise development rights. |
Summary_of_Acquisitions_of_Lea1
Summary of Acquisitions of Lease Contracts, Merchandise and Related Assets of Sales and Lease Ownership Stores (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Business Acquisition [Line Items] | ' | ' | ' |
Weighted average amortization period of intangible assets | '2 years 10 months 24 days | '3 years 1 month 6 days | '2 years 7 months 6 days |
Customer Relationships | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Weighted average amortization period of intangible assets | '2 years | '2 years | '2 years |
Non-Compete Agreements | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Weighted average amortization period of intangible assets | '3 years | '3 years | '3 years |
Minimum | Acquired Franchise Development Rights | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Weighted average amortization period of intangible assets | '4 years 10 months 24 days | '4 years 10 months 24 days | '4 years 10 months 24 days |
Maximum | Acquired Franchise Development Rights | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Weighted average amortization period of intangible assets | '6 years 10 months 24 days | '6 years 10 months 24 days | '6 years 10 months 24 days |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
store | store | store | Aarons Office Furniture | |
store | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Sale of sales and lease ownership locations | 2 | 3 | 25 | ' |
Number of stores closed | ' | ' | ' | 14 |
Summary_of_Carrying_Value_of_G
Summary of Carrying Value of Goodwill by Operating Segment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Beginning Balance | $234,195 | $219,342 |
Additions | 5,429 | 15,214 |
Disposals | -499 | -361 |
Purchase Price Adjustments | 56 | ' |
Ending Balance | 239,181 | 234,195 |
Sales and Lease Ownership | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning Balance | 219,547 | 205,509 |
Additions | 5,429 | 14,399 |
Disposals | -499 | -361 |
Purchase Price Adjustments | 46 | ' |
Ending Balance | 224,523 | 219,547 |
HomeSmart | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning Balance | 14,648 | 13,833 |
Additions | 0 | 815 |
Disposals | 0 | 0 |
Purchase Price Adjustments | 10 | ' |
Ending Balance | $14,658 | $14,648 |
Summary_of_Identifiable_Intang
Summary of Identifiable Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets gross | $9,076 | $12,351 |
Accumulated Amortization | -5,541 | -6,325 |
Intangible assets net | 3,535 | 6,026 |
Customer Relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets gross | 2,282 | 4,377 |
Accumulated Amortization | -1,463 | -2,170 |
Intangible assets net | 819 | 2,207 |
Non-Compete Agreements | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets gross | 3,265 | 3,408 |
Accumulated Amortization | -2,001 | -1,471 |
Intangible assets net | 1,264 | 1,937 |
Acquired Franchise Development Rights | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets gross | 3,529 | 4,566 |
Accumulated Amortization | -2,077 | -2,684 |
Intangible assets net | $1,452 | $1,882 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Goodwill And Intangible Assets Additional Information [Abstract] | ' | ' | ' |
Amortization expense | $3.70 | $3.70 | $2.30 |
Estimated_Future_Amortization_
Estimated Future Amortization Expense (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Disclosure Estimated Future Amortization Expense [Abstract] | ' |
2014 | $1,983 |
2015 | 793 |
2016 | 367 |
2017 | 201 |
2018 | $98 |
Summary_of_Financial_Assets_an
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Level 2, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Level 2 | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Deferred Compensation Liability | ($12,557) | ($9,518) |
Assets_Measured_At_Fair_Value_
Assets Measured At Fair Value on Nonrecurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | RIMCO | RIMCO | ||
Subsequent Event | ||||
store | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Assets Held for Sale | $15,840 | $11,104 | $9,700 | ' |
Number of stores sold during period | ' | ' | ' | 27 |
Fair_Value_of_Assets_Liabiliti
Fair Value of Assets (Liabilities) Not Measured at Fair Value In Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair Value | $112,446 | $85,919 | ||
Corporate Bonds | Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair Value | 91,785 | [1] | 67,470 | [1] |
Perfect Home Bonds | Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair Value | 20,661 | [2] | 18,449 | [2] |
Fixed Rate | Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long term debt, fair value | ($130,687) | [3] | ($127,261) | [3] |
[1] | The fair value of corporate bonds is determined through the use of model-based valuation techniques for which all significant assumptions are observable in the market. | |||
[2] | The Perfect Home notes were initially valued at cost. The Company periodically reviews the valuation utilizing company-specific transactions or changes in Perfect Home's financial performance to determine if fair value adjustments are necessary. | |||
[3] | The fair value of fixed-rate long term debt is estimated using the present value of underlying cash flows discounted at a current market yield for similar instruments. The carrying value of fixed-rate long term debt was $125.0 million at December 31, 2013 and December 31, 2012. |
Fair_Value_of_Assets_Liabiliti1
Fair Value of Assets (Liabilities) Not Measured at Fair Value In Consolidated Balance Sheets (Parenthetical) (Detail) (Fixed Rate, USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Fixed Rate | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Long term debt, carrying value | $125 |
Amortized_Cost_Gross_Unrealize
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investment Securities Held to Maturity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ||
Amortized Cost | $112,391 | $85,861 | ||
Gross Unrealized Gains | 98 | 99 | ||
Gross Unrealized Losses | -43 | -41 | ||
Fair Value | 112,446 | 85,919 | ||
Level 2 | Corporate Bonds | ' | ' | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ||
Fair Value | 91,785 | [1] | 67,470 | [1] |
Level 3 | Perfect Home Bonds | ' | ' | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ||
Fair Value | 20,661 | [2] | 18,449 | [2] |
Corporate Bonds | ' | ' | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ||
Amortized Cost | 91,730 | 67,412 | ||
Gross Unrealized Gains | 98 | 99 | ||
Gross Unrealized Losses | -43 | -41 | ||
Perfect Home Bonds | ' | ' | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ||
Amortized Cost | $20,661 | $18,449 | ||
[1] | The fair value of corporate bonds is determined through the use of model-based valuation techniques for which all significant assumptions are observable in the market. | |||
[2] | The Perfect Home notes were initially valued at cost. The Company periodically reviews the valuation utilizing company-specific transactions or changes in Perfect Home's financial performance to determine if fair value adjustments are necessary. |
Amortized_Cost_and_Fair_Value_
Amortized Cost and Fair Value of Held to Maturity Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | $112,391 | ' |
Fair Value | 112,446 | 85,919 |
Due in one year or less | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 55,250 | ' |
Fair Value | 55,284 | ' |
Due in years one through two | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 57,141 | ' |
Fair Value | $57,162 | ' |
Information_Pertaining_to_Held
Information Pertaining to Held to Maturity Securities With Gross Unrealized Losses (Detail) (Corporate Bonds, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Corporate Bonds | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Fair Value | $31,453 | $22,785 |
Gross Unrealized Losses | ($43) | ($41) |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | securities | securities |
Fair Value Measurements Disclosure [Line Items] | ' | ' |
Number of securities in unrealized loss position | 18 | 16 |
Number of securities | 48 | 38 |
Fixed Rate | ' | ' |
Fair Value Measurements Disclosure [Line Items] | ' | ' |
Long term debt, carrying value | 125 | ' |
Summary_of_Property_Plant_and_
Summary of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Land | $26,021 | $25,285 | ||
Buildings and Improvements | 84,520 | 81,773 | ||
Leasehold Improvements and Signs | 120,702 | 120,883 | ||
Fixtures and Equipment | 172,483 | [1] | 152,436 | [1] |
Construction in Progress | 4,347 | 5,414 | ||
Property, Plant and Equipment, Gross | 429,197 | 404,513 | ||
Less: Accumulated Depreciation and Amortization | -197,904 | -173,915 | ||
Property, Plant and Equipment, Net | 231,293 | 230,598 | ||
Related Party | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Assets Under Capital Leases: | 10,574 | 8,158 | ||
Non-Related Party | ' | ' | ||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Assets Under Capital Leases: | $10,550 | $10,564 | ||
[1] | Includes internal-use software development costs of $36.3 million and $22.6 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of internal-use software development costs amounted to $9.5 million and $6.6 million as of December 31, 2013 and 2012, respectively. |
Summary_of_Property_Plant_and_1
Summary of Property, Plant and Equipment (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Disclosure Summary Of Property Plant And Equipment [Abstract] | ' | ' |
Internal-use software development cost | $36.30 | $22.60 |
Internal-use software development cost, accumulated amortization | $9.50 | $6.60 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Internal-use software development cost | $36,300,000 | $22,600,000 | ' |
Internal-use software development cost, accumulated amortization | 9,500,000 | 6,600,000 | ' |
Amortization expense on assets recorded under capital leases | 1,700,000 | 1,200,000 | 1,200,000 |
Accumulated depreciation and amortization, Capital lease assets | 197,904,000 | 173,915,000 | ' |
Related Party | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Accumulated depreciation and amortization, Capital lease assets | 5,800,000 | 4,800,000 | ' |
Non-Related Party | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Accumulated depreciation and amortization, Capital lease assets | $5,100,000 | $4,400,000 | ' |
Summary_of_Companys_Credit_Fac
Summary of Company's Credit Facilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Senior Unsecured Notes | $125,000 | $125,000 |
Capital Lease Obligation: | ' | ' |
Other Debt | 3,250 | 3,250 |
Credit Facilities | 142,704 | 141,528 |
Related Party | ' | ' |
Capital Lease Obligation: | ' | ' |
Capital Lease Obligation | 7,412 | 6,122 |
All Other | ' | ' |
Capital Lease Obligation: | ' | ' |
Capital Lease Obligation | $7,042 | $7,156 |
Credit_Facilities_Additional_I
Credit Facilities - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 05, 2011 | Dec. 31, 2002 | Nov. 30, 2004 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
store | store | store | Minimum | Maximum | Senior Unsecured Notes Issued July 2011 | Related Party | Related Party | Unsecured Revolving Credit Facility | Revolving Credit Agreement | Revolving Credit Agreement | Revolving Credit Agreement | Revolving Credit Agreement | Revolving Credit Agreement | Revolving Credit Agreement | |
Property | Property | Minimum | Maximum | LIBOR | LIBOR | ||||||||||
Minimum | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | $140,000,000 | ' | ' | ' | ' | ' | ' |
Revolving credit agreement, expiry date | 13-Dec-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate basis spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.50% |
Line of credit amount outstanding | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' |
Commitment fee for unused balance amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | 0.30% | ' | ' |
Notes issued | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt interest rate | ' | ' | ' | ' | ' | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | 27-Apr-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of Interest, commencement date | ' | ' | ' | ' | ' | 27-Jul-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual principal repayment amount | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt principal amount, commencement date | ' | ' | ' | ' | ' | 27-Apr-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Properties sold | 2 | 3 | 25 | ' | ' | ' | 10 | 11 | ' | ' | ' | ' | ' | ' | ' |
Borrowings collateralized by the land and buildings | ' | ' | ' | ' | ' | ' | 5,000,000 | 6,800,000 | ' | ' | ' | ' | ' | ' | ' |
Lease term | '15 years | ' | ' | ' | ' | ' | '15 years | '15 years | ' | ' | ' | ' | ' | ' | ' |
Lease renewal option term | ' | ' | ' | '1 year | '20 years | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Aggregate annual rental | ' | ' | ' | ' | ' | ' | 1,227,000 | 716,000 | ' | ' | ' | ' | ' | ' | ' |
Interest implicit in the leases | ' | ' | ' | ' | ' | ' | 10.10% | 9.70% | ' | ' | ' | ' | ' | ' | ' |
Industrial development corporation revenue bonds | $3,250,000 | $3,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average borrowing rate on bonds | 0.25% | 0.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future_Maturities_of_Long_Term
Future Maturities of Long Term Debt and Capital Lease Obligations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Disclosure Future Maturities Of Long Term Debt And Capital Lease Obligations [Abstract] | ' |
2014 | $27,529 |
2015 | 31,015 |
2016 | 27,740 |
2017 | 27,659 |
2018 | 26,355 |
Thereafter | 2,406 |
Long-term Debt, Total | $142,704 |
Summary_of_Income_Tax_Expense_
Summary of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Income Tax Expense: | ' | ' | ' |
Federal | $91,664 | $116,234 | $0 |
State | 9,393 | 10,819 | 9,797 |
Current Income Tax Expense (Benefit), Total | 101,057 | 127,053 | 9,797 |
Deferred Income Tax Expense (Benefit): | ' | ' | ' |
Federal | -35,941 | -23,035 | 62,015 |
State | -822 | -206 | -2,202 |
Deferred Income Tax Expense (Benefit), Total | -36,763 | -23,241 | 59,813 |
INCOME TAXES | $64,294 | $103,812 | $69,610 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Disclosure Income Taxes Additional Information [Abstract] | ' | ' | ' | ' | ' |
Federal net operating loss carryforward | ' | ' | ' | $31,200,000 | ' |
Estimated tax deferral | ' | ' | ' | ' | 127,000,000 |
Proceeds from refund of overpaid federal tax | 80,900,000 | ' | ' | ' | ' |
Uncertain tax benefits that, if recognized, would affect effective tax rate | ' | 1,500,000 | 1,000,000 | ' | ' |
Recognized interest and penalties related to unrecognized tax benefits | ' | 76,000 | -126,000 | 41,000 | ' |
Accrued interest and penalties | ' | $278,000 | $234,000 | ' | ' |
Components_of_Deferred_Income_
Components of Deferred Income Tax Liabilities and Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Liabilities: | ' | ' |
Lease Merchandise and Property, Plant and Equipment | $249,192 | $279,926 |
Goodwill & Other Intangibles | 34,512 | 30,754 |
Other, Net | 2,782 | 3,260 |
Total Deferred Tax Liabilities | 286,486 | 313,940 |
Deferred Tax Assets: | ' | ' |
Accrued Liabilities | 36,778 | 25,365 |
Advance Payments | 15,400 | 15,834 |
Other, Net | 8,032 | 9,677 |
Total Deferred Tax Assets | 60,210 | 50,876 |
Less Valuation Allowance | -682 | -657 |
Net Deferred Tax Liabilities | $226,958 | $263,721 |
Effective_Tax_Rate_Differs_fro
Effective Tax Rate Differs from Statutory United States Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Effective Tax Rate Differs From Statutory United States Federal Income Tax Rate [Abstract] | ' | ' | ' |
Statutory Rate | 35.00% | 35.00% | 35.00% |
Increases in United States Federal Taxes | ' | ' | ' |
State Income Taxes, Net of Federal Income Tax Benefit | 3.10% | 2.50% | 2.70% |
Effective Income Tax Rate Reconciliation, Tax Credits, Other | -1.70% | -0.10% | -0.30% |
Other, Net | -1.60% | 0.10% | 0.60% |
Effective Tax Rate | 34.80% | 37.50% | 38.00% |
Summary_of_Activity_Related_to
Summary of Activity Related to Uncertain Tax Positions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Summary Of Activity Related To Uncertain Tax Positions [Abstract] | ' | ' | ' |
Balance at January 1, | $1,258 | $1,412 | $1,315 |
Additions based on tax positions related to the current year | 454 | 178 | 178 |
Additions for tax positions of prior years | 423 | 83 | 22 |
Prior year reductions | -5 | -315 | -13 |
Statute expirations | -85 | -83 | -90 |
Settlements | -85 | -17 | 0 |
Balance at December 31, | $1,960 | $1,258 | $1,412 |
Recovered_Sheet1
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Marketing and Advertising Expense | Kunstmann et al | Kurtis Jewell | Sowell | Margaret Korrow | Lomi Price | Amendment | Minimum | Minimum | Maximum | Maximum | |
USD ($) | summary_judgment | plaintiff | plaintiff | motion | Franchise Loan Facility | Lomi Price | Kurtis Jewell | |||||||||
plaintiff | CAD | USD ($) | ||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases of warehouse and retail store space under operating lease, expiring time | ' | ' | '2029 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Renewal options of leases for additional periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '20 years | ' |
Lease term | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases of transportation and computer equipment under operating leases, expiring period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Rental expense | ' | ' | $110,000,000 | $102,000,000 | $93,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sublease income | ' | ' | 2,600,000 | 3,100,000 | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future sublease rental income in one year | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future sublease rental income in two years | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future sublease rental income in three years | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future sublease rental income in four years | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future sublease rental income in five years | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future sublease rental income in five years and thereafter | ' | ' | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion that Company might be obligated to repay in the event franchisees defaulted | ' | ' | 105,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of franchise related borrowings | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan facility maximum Canadian sub facility commitment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' |
Accrued Regulatory Expense | ' | ' | 33,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency In Excess of Accrual, Range of Possible Loss, Minimum | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency In Excess of Accrual, Range of Possible Loss, Maximum | ' | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income related to reversal of lawsuit accrual | 13,400,000 | 15,000,000 | -28,400,000 | 35,500,000 | -36,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Plaintiffs | ' | ' | ' | ' | ' | ' | 227 | 1,788 | 2 | ' | ' | ' | ' | ' | ' | ' |
Statutory Penalty Damages, Per Violation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' |
Number of Motions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Number of Summary Judgments Sought | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Summary Judgments Sought, Entirety of Class Member Claims | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Sought, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' |
Percentage of class size with respect to potential class members | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% |
Minimum range of possible loss | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum range of possible loss | ' | ' | 8,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cancelable commitments | ' | ' | ' | ' | ' | 35,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cancelable commitments due in 2014 | ' | ' | ' | ' | ' | 19,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cancelable commitments due in 2015 | ' | ' | ' | ' | ' | 15,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cancelable commitments due in 2016 | ' | ' | ' | ' | ' | 710,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum 401 (K) plan contribution rates as percentage of employees earnings | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employer 401 (k) matching contribution to employee, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 100.00% | ' |
Initial Employer 401(K) Matching Contribution to Employee | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | 3.00% | ' |
Compensation expense related to 401(k) savings plan | ' | ' | $3,300,000 | $999,000 | $891,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments Required under Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Disclosure Future Minimum Lease Payments Required Under Operating Leases [Abstract] | ' |
2014 | $113,067 |
2015 | 96,508 |
2016 | 75,024 |
2017 | 57,160 |
2018 | 43,225 |
Thereafter | 143,583 |
Operating Leases, Future Minimum Payments Due, Total | $528,567 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||
Dec. 03, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 07, 2010 | Mar. 31, 2010 | Dec. 07, 2010 | Feb. 04, 2014 | |
Treasury Stock | Treasury Stock | Treasury Stock | Additional Paid-in Capital | Nonvoting Common Stock | Nonvoting Common Stock | Nonvoting Common Stock | Nonvoting Common Stock And Class A Common Stock | Nonvoting Common Stock And Class A Common Stock | Subsequent Event | ||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Shares | ' | 17,795,293 | 15,031,741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional authorized shares purchased | ' | 11,497,373 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | 3,502,627 | ' | ' | ' | ' | ' | ' | 3,502,627 | 1,236,689 | ' | ' | ' | 1,000,952 |
Preferred stock, authorized | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par Value | ' | $0.50 | $0.50 | ' | ' | ' | ' | ' | ' | $0.50 | ' | ' | ' |
Common Stock, Shares Authorized | ' | 225,000,000 | 225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 225,000,000 | ' |
Stock split conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' |
Stock Repurchased During Period, Value | $125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Percent of Shares Authorized for Repurchase | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Value | ' | ' | ' | $100,000,000 | $34,131,000 | $129,958,000 | $25,000,000 | ' | ' | ' | ' | ' | ' |
Accelerated Share Repurchases, Initial Price Paid Per Share | ' | ' | ' | $28.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet2
Stock Options and Restricted Stock - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock based compensation expense | $2,300,000 | $6,500,000 | $8,400,000 |
Excess tax benefits included in cash provided by financing activities | 1,381,000 | 5,967,000 | 1,264,000 |
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan | 14,597,927 | ' | ' |
Unexercised options lapse period | '10 years | ' | ' |
Stock options granted | 0 | 0 | 0 |
Aggregate Intrinsic value of options exercised | 10,987,000 | 20,000,000 | 5,500,000 |
Fair value of options vested | 2,700,000 | 2,200,000 | 2,700,000 |
Income tax expense benefit resulting from stock options exercised | 4,200,000 | 8,400,000 | 2,100,000 |
Separation costs | ' | 10,400,000 | 3,500,000 |
Separation costs related to share based compensation | ' | 1,700,000 | ' |
Vested | ' | 25,000 | 50,000 |
Incremental compensation cost resulting from modification | 1,200,000 | 1,300,000 | ' |
Stock options | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Unrecognized compensation expense related to non-vested award | 9,100,000 | ' | ' |
Unrecognized compensation expense related to non-vested award, recognition period | '2 years 3 months 18 days | ' | ' |
Stock options | Minimum | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Vesting period | '2 years | ' | ' |
Stock options | Maximum | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Restricted Stock | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock granted | 307,000 | 368,000 | 266,000 |
Weighted average grant date fair value | $29.23 | $26.08 | $23.57 |
Total fair value of shares vesting | $722,000 | $4,400,000 | $5,700,000 |
Vested | 6,000 | ' | ' |
Restricted Stock | Minimum | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Vesting period | '2 years | ' | ' |
Restricted Stock | Maximum | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Restricted stock awards | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Vested | ' | 75,000 | 150,000 |
Summary_Information_about_Stoc
Summary Information about Stock Options Outstanding (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
10.01 - 15.00 | 15.01 - 19.92 | 5.92 - 19.92 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' |
Range of Exercise, Prices, Lower Range | ' | ' | $10.01 | $15.01 | $5.92 |
Range of Exercise, Prices, Upper Range | ' | ' | $15 | $19.92 | $19.92 |
Options, Number Outstanding | ' | ' | 471,250 | 215,250 | 686,500 |
Options, Weighted Average Remaining Contractual Life (in years) | ' | ' | '4 years 1 month 17 days | '6 years 1 month 10 days | '4 years 9 months |
Options, Weighted Average Exercise Price | $15.95 | $14.81 | $14.15 | $19.90 | $15.95 |
Options, Number Exercisable | ' | ' | 471,250 | 57,750 | 529,000 |
Options Exercisable, Weighted Average Exercise Price | ' | ' | $14.15 | $19.83 | $14.77 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Options | ' | ' | ' | ' |
Outstanding at January 1, 2013 | 1,513,000 | ' | ' | ' |
Granted | 0 | 0 | 0 | ' |
Exercised | -728,000 | ' | ' | ' |
Forfeited/expired | -98,000 | ' | ' | ' |
Outstanding at December 31, 2013 | 687,000 | 1,513,000 | ' | ' |
Expected to Vest at December 31, 2013 | 132,000 | ' | ' | ' |
Exercisable at December 31, 2013 | 529,000 | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding at January 1, 2013 | $14.81 | ' | ' | ' |
Granted | $0 | ' | ' | ' |
Exercised | $13.71 | ' | ' | ' |
Forfeited/expired | $15.29 | ' | ' | ' |
Outstanding at December 31, 2013 | $15.95 | $14.81 | ' | ' |
Expected to Vest at December 31, 2013 | $19.92 | ' | ' | ' |
Exercisable at December 31, 2013 | $14.77 | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' |
Outstanding at December 31, 2013 | '4 years 9 months | ' | ' | ' |
Expected to Vest at December 31, 2013 | '6 years 1 month 24 days | ' | ' | ' |
Exercisable at December 31, 2013 | '4 years 3 months 29 days | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Outstanding at January 1, 2013 | ' | ' | ' | $9,233 |
Expected to Vest at December 31, 2013 | 1,253 | ' | ' | ' |
Exercisable at December 31, 2013 | $7,740 | ' | ' | ' |
Weighted Average Fair Value | ' | ' | ' | ' |
Outstanding at December 31, 2013 | $7.02 | ' | ' | ' |
Expected to Vest at December 31, 2013 | $10.67 | ' | ' | ' |
Exercisable at December 31, 2013 | $5.94 | ' | ' | ' |
Summary_of_Restricted_Stock_Ac
Summary of Restricted Stock Activity (Detail) (Restricted Stock, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock | ' | ' | ' |
Restricted Stock | ' | ' | ' |
Beginning Balance | 696,000 | ' | ' |
Granted | 307,000 | 368,000 | 266,000 |
Vested | -6,000 | ' | ' |
Forfeited | -315,000 | ' | ' |
Ending Balance | 682,000 | 696,000 | ' |
Weighted Average Grant Price | ' | ' | ' |
Beginning Balance | $23.28 | ' | ' |
Granted | $29.23 | $26.08 | $23.57 |
Vested | $28.22 | ' | ' |
Forfeited | $23.60 | ' | ' |
Ending Balance | $25.77 | $23.28 | ' |
Segments_Additional_Informatio
Segments - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 |
segments | RIMCO | Sales and Lease Ownership | Sales and Lease Ownership | |||||
Subsequent Event | ||||||||
store | ||||||||
right | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | 5 | ' | ' | ' | ' | ' |
Number of stores sold during period | ' | ' | ' | ' | ' | 27 | ' | ' |
Number of franchise rights sold during period | ' | ' | ' | ' | ' | 5 | ' | ' |
Retirement and Vacation Charges | ' | $4,900 | $4,917 | $10,394 | $3,532 | ' | ' | ' |
Reversal of lawsuit accrual | $13,400 | $15,000 | ($28,400) | $35,500 | ($36,500) | ' | $35,500 | ($36,500) |
Information_on_Segments_and_Re
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $553,852 | $537,224 | $550,545 | $593,010 | $565,366 | $526,883 | $537,279 | $583,299 | $2,234,631 | $2,212,827 | $2,012,578 |
Earnings Before Income Taxes | 34,111 | 29,420 | 40,387 | 81,042 | 57,192 | 46,044 | 58,590 | 115,029 | 184,960 | 276,855 | 183,377 |
Assets | 1,827,176 | ' | ' | ' | 1,812,929 | ' | ' | ' | 1,827,176 | 1,812,929 | 1,731,899 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 685,105 | 658,335 | 600,671 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 5,613 | 6,392 | 4,709 |
Capital Expenditure | ' | ' | ' | ' | ' | ' | ' | ' | 58,145 | 65,073 | 78,211 |
Sales and Lease Ownership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,076,269 | 2,068,124 | 1,920,372 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 183,965 | 244,014 | 144,232 |
Assets | 1,431,720 | ' | ' | ' | 1,410,075 | ' | ' | ' | 1,431,720 | 1,410,075 | 1,285,807 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 641,576 | 620,774 | 581,945 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 4,470 | 5,345 | 4,348 |
Capital Expenditure | ' | ' | ' | ' | ' | ' | ' | ' | 30,831 | 33,460 | 51,639 |
HomeSmart | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 62,840 | 55,226 | 15,624 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -3,428 | -6,962 | -7,283 |
Assets | 47,970 | ' | ' | ' | 58,347 | ' | ' | ' | 47,970 | 58,347 | 50,600 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 23,977 | 20,482 | 5,933 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 916 | 846 | 201 |
Capital Expenditure | ' | ' | ' | ' | ' | ' | ' | ' | 994 | 4,121 | 10,950 |
RIMCO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 20,596 | 16,674 | 11,317 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -414 | 573 | 153 |
Assets | 13,195 | ' | ' | ' | 11,737 | ' | ' | ' | 13,195 | 11,737 | 7,344 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 6,703 | 5,247 | 3,198 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 227 | 186 | 125 |
Capital Expenditure | ' | ' | ' | ' | ' | ' | ' | ' | 1,650 | 2,020 | 1,763 |
Franchise | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 68,575 | 66,655 | 63,255 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 54,171 | 52,672 | 49,577 |
Assets | 47,788 | ' | ' | ' | 53,820 | ' | ' | ' | 47,788 | 53,820 | 56,131 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 156 | 146 | 41 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Capital Expenditure | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Manufacturing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 106,523 | 95,693 | 89,430 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 107 | 382 | 2,960 |
Assets | 24,305 | ' | ' | ' | 24,787 | ' | ' | ' | 24,305 | 24,787 | 21,691 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2,081 | 4,430 | 1,294 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 80 | 106 | 142 |
Capital Expenditure | ' | ' | ' | ' | ' | ' | ' | ' | 1,531 | 4,493 | 2,107 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,562 | 3,014 | 5,539 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -55,700 | -12,910 | 119 |
Assets | 262,198 | ' | ' | ' | 254,163 | ' | ' | ' | 262,198 | 254,163 | 310,326 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 10,612 | 7,256 | 8,260 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | -80 | -91 | -107 |
Capital Expenditure | ' | ' | ' | ' | ' | ' | ' | ' | 23,139 | 20,979 | 11,752 |
Earnings Before Income Taxes for Reportable Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,336,365 | 2,305,386 | 2,105,537 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 178,701 | 277,769 | 189,758 |
Elimination of Intersegment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | -103,834 | -95,150 | -89,430 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -94 | -393 | -2,960 |
Cash to Accrual and Other Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,100 | 2,591 | -3,529 |
Earnings Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 6,353 | -521 | -3,421 |
CANADA | Sales and Lease Ownership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 300 | 308 | 3,258 |
Assets | $1,021 | ' | ' | ' | $1,391 | ' | ' | ' | $1,021 | $1,391 | $1,527 |
Information_on_Segments_and_Re1
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations (Parenthetical) (Detail) (Manufacturing, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Manufacturing | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Inventory (principally raw materials) | $14 | $14.10 | $11.20 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 |
Board of Directors Chairman | Board of Directors Chairman | Board of Directors Chairman | ||||
Airplane | Vehicle | |||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Purchase of airplane | $58,145 | $65,073 | $78,211 | ' | ' | ' |
Related party transaction amount | ' | ' | ' | ' | 2,800 | 21 |
Brokerage fees paid | ' | ' | ' | $80 | ' | ' |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Disclosure Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues | $553,852 | $537,224 | $550,545 | $593,010 | $565,366 | $526,883 | $537,279 | $583,299 | $2,234,631 | $2,212,827 | $2,012,578 | ||||||||
Gross Profit | 263,080 | [1] | 265,056 | [1] | 282,276 | [1] | 302,439 | [1] | 264,396 | [1] | 259,957 | [1] | 266,913 | [1] | 284,083 | [1] | ' | ' | ' |
Earnings Before Income Taxes | 34,111 | 29,420 | 40,387 | 81,042 | 57,192 | 46,044 | 58,590 | 115,029 | 184,960 | 276,855 | 183,377 | ||||||||
Net Earnings | $22,674 | $21,138 | $25,854 | $51,000 | $36,632 | $28,941 | $36,244 | $71,226 | $120,666 | $173,043 | $113,767 | ||||||||
Earnings Per Share | $0.30 | $0.28 | $0.34 | $0.67 | $0.48 | $0.38 | $0.48 | $0.94 | $1.59 | $2.28 | $1.46 | ||||||||
Earnings Per Share Assuming Dilution | $0.30 | $0.28 | $0.34 | $0.67 | $0.48 | $0.38 | $0.47 | $0.92 | $1.58 | $2.25 | $1.43 | ||||||||
[1] | Gross profit is the sum of lease revenues and fees, retail sales, and non-retail sales less retail cost of sales, non-retail cost of sales, depreciation of lease merchandise and write-offs of lease merchandise. |
Quarterly_Financial_Informatio3
Quarterly Financial Information (Unaudited) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Quarterly Financial Information Unaudited Additional Information [Abstract] | ' | ' | ' | ' | ' |
Reversal of lawsuit accrual | $13,400 | $15,000 | ($28,400) | $35,500 | ($36,500) |
Retirement and Vacation Charges | ' | $4,900 | $4,917 | $10,394 | $3,532 |
Deferred_Compensation_Plan_Add
Deferred Compensation Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Deferred compensation plan liability | $12,600,000 | $9,500,000 | ' |
Cash surrender value of the policies | 14,100,000 | 10,400,000 | ' |
Deferred compensation expense charged to operations for Company's matching contributions | 139,000 | 285,000 | 306,000 |
Benefits paid | $1,300,000 | $616,000 | $77,000 |
Employee | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Percentage of receipt of base compensation | 75.00% | ' | ' |
Percentage of receipt of incentive pay compensation | 100.00% | ' | ' |
Non Employee Director | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Percentage of receipt of base compensation | 100.00% | ' | ' |
Percentage of receipt of incentive pay compensation | 100.00% | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |
Dec. 03, 2013 | Feb. 04, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | |
Subsequent Event | RIMCO | RIMCO | RIMCO | ||
Subsequent Event | |||||
store | |||||
right | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Number of stores sold during period | ' | ' | ' | ' | 27 |
Number of franchise rights sold during period | ' | ' | ' | ' | 5 |
Proceeds from divestiture of businesses | ' | ' | $10,000,000 | ' | ' |
Impairment charge | ' | ' | ' | $766,000 | ' |
Common stock repurchased | 3,502,627 | 1,000,952 | ' | ' | ' |