Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AARON'S INC | ||
Trading Symbol | AAN | ||
Entity Central Index Key | 706,688 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 70,077,559 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,390,290,895 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS: | ||
Cash and Cash Equivalents | $ 51,037 | $ 308,561 |
Investments | 20,385 | 20,519 |
Accounts Receivable (net of allowances of $46,946 in 2017 and $35,690 in 2016) | 99,887 | 95,777 |
Lease Merchandise (net of accumulated depreciation and allowances of $760,722 in 2017 and $743,222 in 2016) | 1,152,135 | 999,381 |
Loans Receivable (net of allowances and unamortized fees of $19,829 in 2017 and $13,830 in 2016) | 86,112 | 84,804 |
Property, Plant and Equipment, Net | 207,687 | 211,271 |
Goodwill | 622,948 | 526,723 |
Other Intangibles, Net | 235,551 | 247,672 |
Income Tax Receivable | 100,023 | 11,884 |
Prepaid Expenses and Other Assets | 116,499 | 109,144 |
Total Assets | 2,692,264 | 2,615,736 |
LIABILITIES & SHAREHOLDERS’ EQUITY: | ||
Accounts Payable and Accrued Expenses | 304,810 | 297,766 |
Deferred Income Taxes Payable | 222,592 | 276,116 |
Customer Deposits and Advance Payments | 68,060 | 62,427 |
Debt | 368,798 | 497,829 |
Total Liabilities | 964,260 | 1,134,138 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at December 31, 2017 and 2016; Shares Issued: 90,752,123 at December 31, 2017 and 2016 | 45,376 | 45,376 |
Additional Paid-in Capital | 270,043 | 254,512 |
Retained Earnings | 1,819,524 | 1,534,983 |
Accumulated Other Comprehensive Income (Loss) | 774 | (531) |
Total Stockholders' Equity before Treasury Stock | 2,135,717 | 1,834,340 |
Less: Treasury Shares at Cost | ||
Common Stock: 20,733,010 Shares at December 31, 2017 and 19,303,578 at December 31, 2016 | (407,713) | (352,742) |
Total Shareholders’ Equity | 1,728,004 | 1,481,598 |
Total Liabilities & Shareholders’ Equity | $ 2,692,264 | $ 2,615,736 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowances | $ 46,946 | $ 35,690 |
Lease Merchandise, accumulated depreciation | 760,722 | 743,222 |
Loans Receivable, allowances | 19,829 | 13,830 |
Commitments and Contingencies | ||
Common Stock, Par Value (in dollars per share) | $ 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 | 20,733,010 | 19,303,578 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES: | |||
Lease Revenues and Fees | $ 3,000,231 | $ 2,780,824 | $ 2,684,184 |
Retail Sales | 27,465 | 29,418 | 32,872 |
Non-Retail Sales | 270,253 | 309,446 | 390,137 |
Franchise Royalties and Fees | 48,278 | 58,350 | 63,507 |
Interest and Fees on Loans Receivable | 34,925 | 24,080 | 2,845 |
Other | 2,556 | 5,598 | 6,211 |
Revenues | 3,383,708 | 3,207,716 | 3,179,756 |
COSTS AND EXPENSES: | |||
Depreciation of Lease Merchandise | 1,448,631 | 1,304,295 | 1,212,644 |
Retail Cost of Sales | 17,578 | 18,580 | 21,040 |
Non-Retail Cost of Sales | 241,356 | 276,608 | 351,777 |
Operating Expenses | 1,403,985 | 1,351,785 | 1,357,030 |
Restructuring Expenses | 17,994 | 20,218 | 0 |
Other Operating (Income) Expense, Net | (535) | (6,446) | 1,324 |
Costs and Expenses, Total | 3,129,009 | 2,965,040 | 2,943,815 |
OPERATING PROFIT | 254,699 | 242,676 | 235,941 |
Interest Income | 1,835 | 2,699 | 2,185 |
Interest Expense | (20,538) | (23,390) | (23,339) |
Other Non-Operating Income (Expense), Net | 3,581 | (3,563) | (1,667) |
EARNINGS BEFORE INCOME TAX (BENEFIT) EXPENSE | 239,577 | 218,422 | 213,120 |
INCOME TAX (BENEFIT) EXPENSE | (52,959) | 79,139 | 77,411 |
NET EARNINGS | $ 292,536 | $ 139,283 | $ 135,709 |
EARNINGS PER SHARE (IN DOLLARS PER SHARE) | $ 4.13 | $ 1.93 | $ 1.87 |
EARNINGS PER SHARE ASSUMING DILUTION (IN DOLLARS PER SHARE) | $ 4.06 | $ 1.91 | $ 1.86 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings | $ 292,536 | $ 139,283 | $ 135,709 |
Other Comprehensive Income (Loss): | |||
Foreign Currency Translation Adjustment | 1,305 | (14) | (427) |
Total Other Comprehensive Income (Loss) | 1,305 | (14) | (427) |
Comprehensive Income | $ 293,841 | $ 139,269 | $ 135,282 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Treasury Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Dec. 31, 2014 | (18,264) | |||||
Beginning Balance at Dec. 31, 2014 | $ 1,223,521 | $ (323,288) | $ 45,376 | $ 227,290 | $ 1,274,233 | $ (90) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends | (6,822) | (6,822) | ||||
Stock-Based Compensation (in shares) | 5 | |||||
Stock-Based Compensation | 13,694 | $ 89 | 13,605 | |||
Reissued Shares (in shares) | 107 | |||||
Reissued Shares | 943 | $ 1,726 | (783) | |||
Net Earnings | 135,709 | 135,709 | ||||
Foreign Currency Translation Adjustment | (427) | (427) | ||||
Ending Balance (in shares) at Dec. 31, 2015 | (18,152) | |||||
Ending Balance at Dec. 31, 2015 | 1,366,618 | $ (321,473) | 45,376 | 240,112 | 1,403,120 | (517) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends | (7,420) | (7,420) | ||||
Stock-Based Compensation (in shares) | 4 | |||||
Stock-Based Compensation | 20,228 | $ 68 | 20,160 | |||
Reissued Shares (in shares) | 217 | |||||
Reissued Shares | (2,572) | $ 3,188 | (5,760) | |||
Net Earnings | 139,283 | 139,283 | ||||
Foreign Currency Translation Adjustment | (14) | (14) | ||||
Repurchased Shares (in shares) | (1,373) | |||||
Repurchased Shares | (34,525) | $ (34,525) | 0 | |||
Ending Balance (in shares) at Dec. 31, 2016 | (19,304) | |||||
Ending Balance at Dec. 31, 2016 | 1,481,598 | $ (352,742) | 45,376 | 254,512 | 1,534,983 | (531) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends | (7,995) | (7,995) | ||||
Stock-Based Compensation (in shares) | 3 | |||||
Stock-Based Compensation | 25,830 | $ 48 | 25,782 | |||
Reissued Shares (in shares) | 529 | |||||
Reissued Shares | (2,720) | $ 7,531 | (10,251) | |||
Net Earnings | 292,536 | 292,536 | ||||
Foreign Currency Translation Adjustment | 1,305 | 1,305 | ||||
Repurchased Shares (in shares) | (1,961) | |||||
Repurchased Shares | (62,550) | $ (62,550) | 0 | |||
Ending Balance (in shares) at Dec. 31, 2017 | (20,733) | |||||
Ending Balance at Dec. 31, 2017 | $ 1,728,004 | $ (407,713) | $ 45,376 | $ 270,043 | $ 1,819,524 | $ 774 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retained Earnings | |||
Dividends, per share (in dollars per share) | $ 0.1125 | $ 0.1025 | $ 0.094 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES: | |||
Net Earnings | $ 292,536 | $ 139,283 | $ 135,709 |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | |||
Depreciation of Lease Merchandise | 1,448,631 | 1,304,295 | 1,212,644 |
Other Depreciation and Amortization | 82,572 | 82,378 | 80,203 |
Accounts Receivable Provision | 203,389 | 167,923 | 163,111 |
Provision for Credit Losses on Loans Receivable | 20,973 | 11,251 | 937 |
Stock-Based Compensation | 27,400 | 21,470 | 14,163 |
Deferred Income Taxes | (59,201) | (35,162) | 38,970 |
Other Changes, Net | (3,964) | (2,751) | (4,467) |
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions: | |||
Additions to Lease Merchandise | (1,976,012) | (1,615,064) | (1,775,479) |
Book Value of Lease Merchandise Sold or Disposed | 415,607 | 433,464 | 510,657 |
Accounts Receivable | (208,947) | (149,826) | (173,159) |
Prepaid Expenses and Other Assets | 2,711 | 1,229 | (35,649) |
Income Tax Receivable | (88,139) | 167,290 | (54,351) |
Accounts Payable and Accrued Expenses | (2,736) | (49,186) | 69,218 |
Accrued Litigation Expense | 1,314 | (4,737) | (22,463) |
Customer Deposits and Advance Payments | 3,001 | (4,621) | 7,508 |
Cash Provided by Operating Activities | 159,135 | 467,236 | 167,552 |
INVESTING ACTIVITIES: | |||
Investments in Loans Receivable | (77,951) | (72,897) | (11,700) |
Proceeds from Loans Receivable | 59,641 | 64,739 | 15,211 |
Proceeds from Investments | 2,658 | 0 | 0 |
Outflows on Purchases of Property, Plant & Equipment | (57,973) | (57,453) | (60,557) |
Proceeds from Property, Plant, and Equipment | 12,705 | 19,393 | 7,515 |
Outflows on Acquisitions of Businesses, Net of Cash Acquired | (145,558) | (9,762) | (73,295) |
Proceeds from Dispositions of Businesses, Net of Cash Disposed | 1,141 | 35,899 | 13,976 |
Cash Used in Investing Activities | (205,337) | (20,081) | (108,850) |
FINANCING ACTIVITIES: | |||
Proceeds from Debt | 27,875 | 98,928 | 290,090 |
Repayments on Debt | (162,910) | (208,607) | (330,747) |
Acquisition of Treasury Stock | (62,550) | (34,525) | 0 |
Dividends Paid | (7,962) | (7,420) | (6,822) |
Issuance of Stock Under Stock Option Plans | 3,457 | 550 | 1,038 |
Shares Withheld for Tax Payments | (6,177) | (2,457) | (443) |
Debt Issuance Costs | (3,130) | (132) | (425) |
Cash Used in Financing Activities | (211,397) | (153,663) | (47,309) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 75 | 127 | 0 |
(Decrease) Increase in Cash and Cash Equivalents | (257,524) | 293,619 | 11,393 |
Cash and Cash Equivalents at Beginning of Year | 308,561 | 14,942 | 3,549 |
Cash and Cash Equivalents at End of Year | 51,037 | 308,561 | 14,942 |
Net Cash Paid (Received) During the Year: | |||
Interest | 20,492 | 22,511 | 23,405 |
Income Taxes | $ 98,296 | $ (54,258) | $ 91,720 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Aaron’s, Inc. (the "Company") is a leading omnichannel provider of lease-purchase solutions to individual consumers. As of December 31, 2017 , the Company’s operating segments are Progressive Leasing, Aaron’s Business and DAMI. Progressive Leasing is a virtual lease-to-own company that provides lease-purchase solutions in 46 states and the District of Columbia. It does so by purchasing merchandise from third-party retailers desired by those retailers’ customers and, in turn, leasing that merchandise to the customers on a lease-to-own basis. Progressive Leasing consequently has no stores of its own, but rather offers lease-purchase solutions to the customers of traditional retailers. The Aaron’s Business segment offers furniture, consumer electronics, home appliances and accessories to consumers primarily on a month-to-month, lease-to-own basis with no credit needed through the Company’s Aaron’s-branded stores in the United States and Canada. This operating segment also supports franchisees of its Aaron’s-branded stores. In addition, the Aaron’s Business segment includes the operations of Woodhaven Furniture Industries, which manufactures and supplies the majority of the upholstered furniture and bedding leased and sold in Company-operated and franchised stores. DAMI, which was acquired by Progressive Leasing on October 15, 2015, partners with merchants to provide a variety of revolving credit products originated through two third-party federally insured banks to customers that may not qualify for traditional prime lending (called "second-look" financing programs). On May 13, 2016 , the Company sold the 82 Company-operated HomeSmart stores and ceased operations of that segment. See below for further discussion of the disposition. On July 27, 2017 , the Company acquired substantially all of the assets of the store operations of SEI/Aaron’s, Inc. ("SEI"), the Company’s largest franchisee. Refer to Note 2 to these consolidated financial statements for additional discussion of the SEI acquisition. The following table presents active doors for Progressive Leasing: For the Year Ended December 31 (Unaudited) 2017 2016 2015 Progressive Leasing Active Doors 1 26,861 21,840 16,947 1 An active door is a retail store location at which at least one virtual lease-to-own transaction has been completed during the trailing twelve month period. The following table presents store count by ownership type for the Aaron’s Business operations: Stores at December 31 (Unaudited) 2017 2016 2015 Company-Operated Stores Aaron’s Branded stores 1,175 1,165 1,223 HomeSmart — — 82 Total Company-Operated Stores 1,175 1,165 1,305 Franchised Stores 1 551 699 734 Systemwide Stores 1,726 1,864 2,039 1 As of December 31, 2017 , 2016 and 2015 , the Company has awarded 580 , 749 and 813 franchises, 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 consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Generally, actual experience has been consistent with management’s prior estimates and assumptions. Management does not believe these estimates or assumptions will change significantly in the future absent unidentified and unforeseen events. Principles of Consolidation and Variable Interest Entities The consolidated financial statements include the accounts of Aaron’s, Inc. and its subsidiaries, each of which is wholly owned. Intercompany balances and transactions between consolidated entities have been eliminated. The Company holds notes issued by Perfect Home Holdings Limited ("Perfect Home"), a privately-held lease-to-own company that is primarily financed by share capital and senior debt. Perfect Home is based in the U.K. and operated 18 retail stores as of December 31, 2017 . Perfect Home is a variable interest entity ("VIE") because it does not have sufficient equity at risk. However, the Company is not the primary beneficiary and does not consolidate Perfect Home since the Company lacks power through voting or similar rights to direct the activities that most significantly affect Perfect Home’s economic performance. The Company’s maximum exposure to any potential losses associated with this VIE is equal to its total recorded investment, which is $20.4 million at December 31, 2017 . Revenue Recognition Lease Revenues and Fees The Company provides merchandise, consisting primarily of furniture, consumer electronics, home appliances and accessories, to its customers for lease under certain terms agreed to by the customer. The Company’s Aaron's-branded stores offer leases with month-to-month terms that can be renewed up to 12 , 18 or 24 months . The Company’s Progressive Leasing segment offers virtual lease-purchase solutions, typically over 12 months , to the customers of traditional retailers. The Company does not require deposits upon inception of customer agreements. The customer has the right to acquire ownership either through a purchase option or through payment of all required lease payments. Aaron's Business lease revenues are recognized as revenue net of related sales taxes in the month they are due. Lease payments received prior to the month due are recorded as deferred lease revenue, and this amount is included in customer deposits and advance payments in the accompanying consolidated balance sheets. Progressive Leasing lease revenues are earned prior to the lease payment due date and are recorded net of related sales taxes as earned. Revenue recorded prior to the payment due date results in unbilled accounts receivable in the accompanying consolidated balance sheets. All of the Company’s customer agreements are considered operating leases. The Company maintains ownership of the lease merchandise until all payment obligations are satisfied under sales and lease ownership agreements. Initial direct costs related to Progressive Leasing's lease purchase agreements are capitalized as incurred and amortized over the estimated lease term. The capitalized costs have been classified within prepaid expenses and other assets in the accompanying consolidated balance sheets. Initial direct costs related to Aaron's Business customer agreements are expensed as incurred and have been classified as operating expenses in the Company’s consolidated statements of earnings. The statement of earnings effects of expensing the initial direct costs of the Aaron's Business as incurred are not materially different from amortizing initial direct costs over the lease term. Retail and Non-Retail Sales Revenues from the sale of merchandise to franchisees are recognized when title and risk of ownership transfer to the franchisee upon its receipt of the merchandise. 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. Franchise Royalties and Fees The Company franchises its Aaron’s stores in markets where the Company has no immediate plans to enter. Franchisees pay an ongoing royalty of 6% of the weekly cash revenue collections. In addition, franchisees typically pay a non-refundable initial franchise fee from $15,000 to $50,000 depending upon market size. 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 franchise fee revenue when substantially all of the Company’s obligations per location are satisfied, generally at the date of the store opening. 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 9 to these consolidated financial statements for additional discussion of the Company’s franchise-related guarantee obligation. Franchise fee revenue was $0.1 million , $0.4 million and $0.6 million ; royalty revenue was $44.7 million , $53.7 million and $57.7 million ; and finance fee revenue was $2.0 million , $2.3 million and $2.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Deferred franchise and area development agreement fees, included in accounts payable and accrued expenses in the accompanying consolidated balance sheets, were $0.6 million and $1.1 million at December 31, 2017 and 2016 , respectively. Interest and Fees on Loans Receivable DAMI extends or declines credit to an applicant through its bank partners based upon the applicant’s credit rating and other factors. Qualifying applicants receive a credit card to finance their initial purchase and to use in subsequent purchases at the merchant or other participating merchants for an initial 24 -month period, which DAMI may renew if the cardholder remains in good standing. DAMI acquires the loan receivable from merchants through its third-party bank partners at a discount from the face value of the loan. The discount is comprised of a merchant fee discount and a promotional fee discount. The merchant fee discount represents a pre-negotiated, nonrefundable discount that generally ranges from 3% to 25% of the loan face value. The discount is designed to cover the risk of loss related to the portfolio of cardholder charges and DAMI’s direct origination costs. The merchant fee discount and origination costs are netted on the consolidated balance sheet in loans receivable. Cardholders generally have an initial 24 -month period that the card is active. The merchant fee discount, net of the origination costs, is amortized on a net basis and is recorded as interest and fee revenue on loans receivable in the consolidated statements of earnings on a straight-line basis over the initial 24 -month period. The discount from the face value of the loan on the acquisition of the loan receivable from the merchant through the third-party bank partners also includes a promotional fee discount, which generally ranges from 1% to 8% . The promotional fee discount is intended to compensate the holder of the loan receivable (e.g. DAMI) for deferred or reduced interest rates that are offered to the cardholder for a specified period on the outstanding loan balance (generally for six , 12 or 18 months). The promotional fee discount is amortized as interest and fee revenue on loans receivable in the consolidated statements of earnings on a straight-line basis over the promotional interest period (i.e., over six , 12 or 18 months, depending on the promotion). The customer is required to make periodic minimum payments that are generally 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 17.90% to 29.99% , are compounded daily for cards that do not qualify for deferred or reduced interest promotional periods. Interest income, which is recognized based upon the amount of the loans outstanding, is recognized as interest and fees on loans receivable in the billing period in which they are assessed if collectability is reasonably assured. For credit cards that provide for deferred or reduced interest, if the balance is not paid off during the promotional period, interest is billed to the customers at standard rates and the cumulative amount owed is charged to the cardholder account in the month that the promotional period expires or defaults. The Company recognizes interest revenue during the promotional period based on its historical experience related to cardholders that fail to pay off balances during the promotional period. Annual fees are charged to cardholders at the commencement of the loan and on each subsequent anniversary date. Annual fees are deferred and recognized into revenue on a straight-line basis over a one year period. Under the provisions of the credit card agreements, the Company also may assess fees for service calls or for missed or late payments, which are recognized as revenue in the billing period in which they are assessed if collectability is reasonably assured. Lease Merchandise The Company’s lease merchandise consists primarily of furniture, consumer electronics, home appliances and accessories and is recorded at the lower of cost or net realizable value. The cost of merchandise manufactured by our Woodhaven Furniture Industries operations is recorded at cost and includes overhead from production facilities, shipping costs and warehousing costs. The Company-operated stores begin depreciating merchandise at the earlier of twelve months and one day or when the item is leased and depreciate merchandise to a 0% salvage value over the lease agreement period when on lease, generally 12 to 24 months , and generally 36 months when not on lease. The Company’s Progressive Leasing segment, at which substantially all merchandise is on lease, depreciates merchandise generally over 12 months . Depreciation is accelerated upon early payout. The following is a summary of lease merchandise, net of accumulated depreciation and allowances: December 31, (In Thousands) 2017 2016 Merchandise on Lease $ 908,268 $ 786,936 Merchandise Not on Lease 243,867 212,445 Lease Merchandise, net of Accumulated Depreciation and Allowances $ 1,152,135 $ 999,381 The Company’s policies require weekly lease merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. In addition to monthly cycle counting, full physical inventories are generally taken at the fulfillment and manufacturing facilities annually 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 obsolete lease merchandise cannot be returned to vendors, its carrying amount 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 a provision for write-offs on the allowance method, which estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based on historical write-off experience. The provision for write-offs is included in operating expenses in the accompanying consolidated statements of earnings. The following table shows the components of the allowance for lease merchandise write-offs: Year ended December 31, (In Thousands) 2017 2016 2015 Beginning Balance $ 33,399 $ 33,405 $ 27,573 Merchandise Written off, net of Recoveries (143,230 ) (134,110 ) (130,548 ) Provision for Write-offs 145,460 134,104 136,380 Ending Balance $ 35,629 $ 33,399 $ 33,405 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 $67.3 million , $69.9 million and $77.9 million in 2017 , 2016 and 2015 , respectively. Advertising The Company expenses advertising costs as incurred. Advertising production costs are initially recognized as a prepaid advertising asset and are expensed when an advertisement appears for the first time. Total advertising costs amounted to $34.0 million , $40.8 million and $39.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and are classified within operating expenses in the consolidated statements of earnings. These advertising costs are shown net of cooperative advertising considerations received from vendors, which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products. The amount of cooperative advertising consideration recorded as a reimbursement of such advertising expense was $22.5 million , $22.2 million and $36.3 million in 2017 , 2016 and 2015 , respectively. The prepaid advertising asset was $1.4 million and $1.2 million at December 31, 2017 and 2016 , respectively, and is reported within prepaid expenses and other assets on the consolidated balance sheets. Stock-Based Compensation The Company has stock-based employee compensation plans, which are more fully described in Note 12 to these consolidated financial statements. The Company estimates the fair value for the options granted on the grant date using a Black-Scholes-Merton option-pricing model. The fair value of each share of restricted stock units ("RSUs"), restricted stock awards ("RSAs") and performance share units ("PSUs") awarded is equal to the market value of a share of the Company’s common stock on the grant date. Deferred Income Taxes Deferred income taxes represent primarily temporary differences between the amounts of assets and liabilities for financial and tax reporting purposes. The Company’s largest temporary differences arise principally from the use of accelerated depreciation methods on lease merchandise for tax purposes. Earnings Per Share Earnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. The computation of earnings per share assuming dilution includes the dilutive effect of stock options, RSUs, RSAs and PSUs (collectively, "share-based awards") as determined under the treasury stock method. The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2017 2016 2015 Weighted Average Shares Outstanding 70,837 72,354 72,568 Dilutive Effect of Share-Based Awards 1,284 659 475 Weighted Average Shares Outstanding Assuming Dilution 72,121 73,013 73,043 Approximately 140,000 , 939,000 and 460,000 weighted-average share-based awards were excluded from the computations of earnings per share assuming dilution during the years ended December 31, 2017 , 2016 and 2015 , respectively, as the awards would have been anti-dilutive for the periods presented. Cash and Cash Equivalents The Company classifies highly liquid investments with maturity dates of three months or less when purchased as cash equivalents. The Company maintains its cash and cash equivalents in a limited number of banks. Bank balances typically exceed coverage provided by the Federal Deposit Insurance Corporation. However, due to the size and strength of the banks in which the balances are held, any exposure to loss is believed to be minimal. Investments At December 31, 2017 and 2016 , investments classified as held-to-maturity securities consisted of British pound-denominated notes issued by Perfect Home. The Perfect Home Notes ("Notes") consisted of outstanding principal and accrued interest of £15.1 million ( $20.4 million ) and £16.6 million ( $20.5 million ) at December 31, 2017 and 2016 , respectively. The Notes are classified as held-to-maturity securities because the Company has the positive intent and ability to hold the investments to maturity. The Perfect Home notes are carried at amortized cost in investments in the consolidated balance sheets. The British pound-denominated notes are remeasured into U.S. dollars at each period end with remeasurement gains and losses recorded as a component of other non-operating income (expense), net in the consolidated statements of earnings. The Notes matured on June 30, 2017. As a result of Perfect Home’s constrained liquidity, the Company ceased accruing additional interest income of the annualized 12% stated interest rate on the Notes effective April 1, 2017. On December 5, 2017, Perfect Home entered into an agreement with a third party to obtain alternative sources of senior debt financing. In connection with that transaction, the Company also entered into agreements with Perfect Home to extend and refinance its debt investment in Perfect Home with the following terms: (i) payment of £2.0 million of the outstanding Note balance due to the Company upon closing of the refinanced agreement, which was paid in December 2017 and reduced the outstanding investment balance recorded in the Company’s consolidated balance sheets; (ii) extension of the maturity date to the earlier of December 31, 2019 or the occurrence of certain events such as a sale of Perfect Home or initial public offering; and (iii) issuance of warrants to buy non-voting shares of Perfect Home stock with a purchase price of £0.00001 per share. The interest rate remains 12% under the refinanced agreement, which we believe approximates market rates for investments of similar credit quality. In accordance with the terms of the refinanced agreement, Perfect Home began making monthly interest payments on the Notes in January 2018. In light of the additional financing obtained by Perfect Home, which may lead to improvement in Perfect Home's future operating results and the Company's security interest, the Company believes no impairment has occurred as of December 31, 2017 . The Company continues to retain a subordinated security interest in the assets of Perfect Home, which consists primarily of outstanding loans receivable, merchandise inventory and cash. The Notes will remain on nonaccrual status until Perfect Home demonstrates it has the ability to make consistent payments on the remaining Note balance. If Perfect Home fails to execute on its business strategy to improve operating results, there could be a change in the valuation of the Notes that may result in an impairment loss in future periods. Accounts Receivable Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and Company-operated stores, corporate receivables incurred during the normal course of business (primarily for in-transit credit card transactions, real estate leasing activities and vendor consideration) and franchisee obligations. Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2017 2016 Customers $ 48,661 $ 36,227 Corporate 23,431 26,375 Franchisee 27,795 33,175 $ 99,887 $ 95,777 The Company maintains an accounts receivable allowance, which primarily relates to its Progressive Leasing operations and its store-based operations. The Company’s policy for its Progressive Leasing segment is to accrue for uncollected amounts due based on historical collection experience. The provision is recognized as bad debt expense, which is classified in operating expenses within the consolidated statements of earnings. The Progressive Leasing segment writes-off lease receivables that are 120 days or more contractually past due. For the Company’s store-based operations, contractually required lease payments are accrued when due; however, they are not always collected and customers can terminate the lease agreements at any time. For customers that do not pay timely, the Company’s store-based operations generally focus on obtaining a return of the lease merchandise. Therefore the Company’s policy for its store-based operations is to accrue a provision for returns and uncollectible contractually due renewal payments based on historical collection experience, which is recognized as a reduction of lease revenues and fees. Store-based operations write-off lease receivables that are 60 days or more past due on pre-determined dates occurring twice monthly. The following table shows the components of the accounts receivable allowance: Year Ended December 31, (In Thousands) 2017 2016 2015 Beginning Balance $ 35,690 $ 34,861 $ 27,401 Accounts Written Off, net of Recoveries (192,133 ) (167,094 ) (155,651 ) Accounts Receivable Provision 203,389 167,923 163,111 Ending Balance $ 46,946 $ 35,690 $ 34,861 The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the years ended December 31 : Year Ended December 31, (In Thousands) 2017 2016 2015 Bad Debt Expense 170,574 128,333 122,184 Provision for Returns and Uncollected Renewal Payments 32,815 39,590 40,927 Accounts Receivable Provision $ 203,389 $ 167,923 $ 163,111 Loans Receivable Gross loans receivable represents the principal balances of credit card charges at DAMI’s participating merchants that remain outstanding to cardholders, plus unpaid interest and fees due from cardholders. The allowances and unamortized fees represents an allowance for uncollectible amounts; merchant fee discounts, net of capitalized origination costs; promotional fee discounts; and deferred annual card fees. Loans acquired in the October 15, 2015 DAMI acquisition (the "Acquired Loans") were recorded at their estimated fair value at the acquisition date. The projected net cash flows from expected payments of principal, interest, fees and servicing costs and anticipated charge-offs were included in the determination of fair value; therefore, an allowance for loan losses and an amount for unamortized fees were not recognized for the Acquired Loans. The difference, or discount, between the expected cash flows to be received and the fair value of the Acquired Loans is accreted to interest and fees on loans receivable based on the effective interest method. At each period end, the Company evaluates the appropriateness of the accretable discount on the Acquired Loans based on actual and revised projected future cash receipts. Losses on loans receivable are recognized when they are incurred, which requires the Company to make its best estimate of probable losses inherent in the portfolio. The Company evaluates loans receivable collectively for impairment. The method for calculating the best estimate of probable losses takes into account the Company’s historical experience, adjusted for current conditions and the Company’s judgment concerning the probable effects of relevant observable data, trends and market factors. Economic conditions and loan performance trends are closely monitored to manage and evaluate exposure to credit risk. Trends in delinquency ratios are an indicator of credit risk within the loans receivable portfolio, including the migration of loans between delinquency categories over time (roll rates). Charge-off rates represent another indicator of the potential for future credit losses. The risk in the loans receivable portfolio is correlated with broad economic trends, such as unemployment rates, gross domestic product growth and gas prices, which can have a material effect on credit performance. To the extent that actual results differ from estimates of uncollectible loans receivable, the Company’s results of operations and liquidity could be materially affected. The Company calculates the allowance for loan losses based on actual delinquency balances and historical average loss experience on loans receivable by aging category for the prior eight quarters. The allowance for loan losses is maintained at a level considered adequate to cover probable losses of principal, interest and fees on active loans in the loans receivable portfolio. The adequacy of the allowance is evaluated at each period end. Delinquent loans receivable are those that are 30 days or more past due based on their contractual billing dates. The Company places loans receivable on nonaccrual status when they are greater than 90 days past due or upon notification of cardholder bankruptcy, death or fraud. The Company discontinues accruing interest and fees and amortizing merchant fee discounts and promotional fee discounts for loans receivable in nonaccrual status. Loans receivable are removed from nonaccrual status when cardholder payments resume, the loan becomes 90 days or less past due and collection of the remaining amounts outstanding is deemed probable. Payments received on nonaccrual loans are allocated according to the same payment hierarchy methodology applied to loans that are accruing interest. Loans receivable are charged off at the end of the month following the billing cycle in which the loans receivable become 120 days past due. DAMI extends or declines credit to an applicant through its bank partners based upon the applicant’s credit rating. Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2017 and 2016 by Fair Isaac and Company (FICO) score as determined at the time of loan origination: December 31, FICO Score Category 2017 2016 600 or Less 1.7 % 1.8 % Between 600 and 700 76.5 % 78.1 % 700 or Greater 21.8 % 20.1 % 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 15 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. The Company primarily develops software for use in its Progressive Leasing and store-based operations. The Company uses an agile development methodology in which feature-by-feature updates are made to its software. Costs are capitalized when management, with the relevant authority, authorizes and commits to funding a feature update and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalization of costs ceases when the feature update is substantially complete and ready for its intended use. Generally, the life cycle for each feature update implementation is one month. Gains and losses related to dispositions and retirements are recognized as incurred. Maintenance and repairs are also expensed as incurred, and leasehold improvements are capitalized. Depreciation expense for property, plant and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $54.8 million , $53.6 million and $52.0 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property, plant and equipment, was $11.5 million , $9.2 million and $7.4 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company assesses its long-lived assets other than goodwill and other indefinite-lived intangible assets for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. If it is determined that the carrying amount of an asset is not recoverable, the Company compares the carrying amount of the asset to its fair value as estimated using discounted expected future cash flows, market values or replacement values for similar assets. The amount by which the carrying amount exceeds the fair value of the asset, if any, is recognized as an impairment loss. Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: December 31, (In Thousands) 2017 2016 Prepaid Expenses $ 31,509 $ 21,769 Prepaid Insurance 36,735 53,716 Assets Held for Sale 10,118 8,866 Deferred Tax Asset 11,589 5,912 Other Assets 26,548 18,881 $ 116,499 $ 109,144 Assets Held for Sale Certain properties, consisting of parcels of land and commercial buildings, met the held for sale classification criteria as of December 31, 2017 and 2016 . Assets held for sale are recorded at the lower of their carrying value or fair value less estimated cost to sell and are classified within prepaid expenses and other assets in the consolidated balance sheets. Depreciation is suspended on assets upon classification to held for sale. The carrying amount of the properties held for sale as of December 31, 2017 and 2016 was $10.1 million and $8.9 million , respectively. The Company estimated the fair values of |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During the years ended December 31, 2017 , 2016 and 2015 , cash payments, net of cash acquired, related to the acquisitions of businesses and contracts were $145.6 million , $9.8 million and $73.3 million , respectively. Cash payments made during the years ended December 31, 2017 and December 31, 2015 principally relate to the SEI and DAMI acquisitions, respectively, as described below. 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 results of DAMI have been presented as a reportable segment from the October 15, 2015 acquisition date. Refer to Note 13 to these consolidated financial statements for more information on DAMI’s revenues and earnings before income taxes since the acquisition date. The effect of the Company’s other acquisitions on the consolidated financial statements for the years ended December 31, 2017 , 2016 and 2015 was not significant. SEI/Aaron’s, Inc. Acquisition On July 27, 2017 , the Company acquired substantially all of the assets and liabilities of the store operations of SEI, the Company’s largest franchisee, for approximately $140 million in cash. At the time of the acquisition, those store operations served approximately 90,000 customers through 104 Aaron's-branded stores in 11 states primarily in the Northeast. The acquisition is benefiting the Company’s omnichannel platform through added scale, strengthening its presence in certain geographic markets, and enhancing Aaron’s ability to drive inventory supply-chain synergies between the Aaron’s Business and Progressive Leasing in markets that SEI served. The acquired SEI operations generated revenues of $58.3 million and earnings before income taxes of $2.5 million from July 27, 2017 through December 31, 2017 , which are included in our consolidated statements of earnings. Included in the earnings before income taxes of the SEI operations are acquisition-related transaction and transition costs, amortization expense of the various intangible assets recorded from the acquisition and restructuring expenses associated with the closure of several acquired SEI stores. The revenues and earnings before income taxes above have not been adjusted for estimated non-retail sales and franchise royalties and fees and related expenses that the Company could have generated from SEI, as a franchisee, from July 27, 2017 through December 31, 2017 had the transaction not been completed. Acquisition Accounting The SEI acquisition has been accounted for as a business combination, and the results of operations of the acquired business is included in the Company’s results of operations from the date of acquisition. The following table presents the summary of the preliminary estimated fair value of the assets acquired and liabilities assumed in the SEI acquisition as of the July 27, 2017 acquisition date: (In Thousands) Amounts Recognized as of Acquisition Date 1 Acquisition Accounting Adjustments 2 Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 140,000 $ — $ 140,000 Settlement of Pre-existing Accounts Receivable SEI owed Aaron's, Inc. 3,452 — 3,452 Reimbursement for Insurance Costs (100 ) — (100 ) Working Capital Adjustment — 188 188 Consideration Transferred 143,352 188 143,540 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 34 — 34 Receivables 1,448 — 1,448 Lease Merchandise 40,941 — 40,941 Property, Plant and Equipment 8,279 553 8,832 Other Intangibles 3 16,472 (2,894 ) 13,578 Prepaid Expenses and Other Assets 440 — 440 Total Identifiable Assets Acquired 67,614 (2,341 ) 65,273 Accounts Payable and Accrued Expenses (5,470 ) (1,064 ) (6,534 ) Customer Deposits and Advance Payments (2,500 ) — (2,500 ) Capital Leases (4,630 ) 116 (4,514 ) Total Liabilities Assumed (12,600 ) (948 ) (13,548 ) Goodwill 4 88,338 3,477 91,815 Net Assets Acquired $ 55,014 $ (3,289 ) $ 51,725 1 As previously reported in the notes to the condensed consolidated financial statements as of September 30, 2017. 2 The acquisition accounting adjustments relate to finalizing information that existed as of the acquisition date regarding the fair value of vehicles under capital leases. Additionally, the Company obtained further information regarding the fair value of assumed favorable and unfavorable property operating leases based on comparable market terms of similar leases based on information that existed as of the acquisition date, which the Company expects to complete prior to the one year anniversary date of the acquisition. 3 Identifiable intangible assets are further disaggregated in the table set forth below. 4 The total goodwill recognized in conjunction with the SEI acquisition, all of which is expected to be deductible for tax purposes, has been assigned to the Aaron’s Business operating segment. The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, primarily due to synergies created from the expected future benefits to the Company’s omnichannel platform, implementation of the Company’s operational capabilities, expected inventory supply chain synergies between the Aaron’s Business and Progressive Leasing, and control of the Company’s brand name in new geographic markets. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. The preliminary acquisition accounting presented above is subject to refinement. The Company is still finalizing the valuation of assumed favorable and unfavorable property operating leases as described above and finalizing certain working capital adjustments. The estimated intangible assets attributable to the SEI acquisition are comprised of the following: Fair Value (in thousands) Weighted Average Life (in years) Non-compete Agreements $ 1,244 5.0 Customer Lease Contracts 2,130 1.0 Customer Relationships 3,176 2.0 Reacquired Franchise Rights 3,640 4.1 Favorable Operating Leases 3,388 8.5 Total Acquired Intangible Assets 1 $ 13,578 1 Acquired definite-lived intangible assets have a total weighted average life of 4.3 years. During the year ended December 31, 2017 , the Company incurred $2.0 million of acquisition-related costs in connection with the SEI acquisition. These costs were included in operating expenses in the consolidated statements of earnings. DAMI Acquisition On October 15, 2015 , Progressive Leasing acquired a 100% ownership interest in DAMI for a total purchase price of $54.9 million , inclusive of cash acquired of $4.2 million . Together with Progressive, DAMI allows the Company to provide retail and merchant partners with one source for financing and leasing transactions with below-prime customers. The following table presents the summary of the assets acquired and liabilities assumed as of the acquisition date, as well as the acquisition accounting adjustments. The final acquisition accounting adjustments did not have a significant effect on the consolidated statements of earnings. (In Thousands) Amounts Recognized as of Acquisition Date 1 Acquisition Accounting Adjustments 2 Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 54,900 $ — $ 54,900 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 4,185 — 4,185 Loans Receivable 3 89,186 (60 ) 89,126 Receivables 45 — 45 Property, Plant and Equipment 2,754 — 2,754 Other Intangibles 4 3,400 (500 ) 2,900 Income Tax Receivable 728 — 728 Prepaid Expenses and Other Assets 671 — 671 Deferred Income Tax Assets 375 2,115 2,490 Total Identifiable Assets Acquired 101,344 1,555 102,899 Accounts Payable and Accrued Expenses (1,709 ) (1,265 ) (2,974 ) Debt (45,025 ) — (45,025 ) Total Liabilities Assumed (46,734 ) (1,265 ) (47,999 ) Goodwill 290 (290 ) — Net Assets Acquired $ 54,900 $ — $ 54,900 1 As previously reported in the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. 2 The acquisition accounting adjustments primarily relate to the resolution of certain income tax-related matters and contingencies that existed as of the acquisition date. 3 Contractually required amounts due at the acquisition date were $94.2 million . 4 Identifiable intangible assets are further disaggregated in the table below. The intangible assets attributable to the DAMI acquisition are comprised of the following: Fair Value (in thousands) Weighted Average Life (in years) Technology $ 2,550 5.0 Non-compete Agreements 350 5.0 Total Acquired Intangible Assets $ 2,900 During the year ended December 31, 2015, the Company incurred $3.7 million of transaction costs in connection with the acquisition of DAMI. These costs were included in the line item operating expenses in the consolidated statements of earnings. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Indefinite-Lived Intangible Assets The following table summarizes information related to indefinite-lived intangible assets at December 31 : December 31, (In Thousands) 2017 2016 Trade Name $ 53,000 $ 53,000 Goodwill 622,948 526,723 Indefinite-lived Intangible Assets $ 675,948 $ 579,723 The following table provides information related to the carrying amount of goodwill by operating segment: (In Thousands) Progressive Leasing Aaron’s Business DAMI Total Balance at January 1, 2016 $ 290,605 $ 248,580 $ 290 $ 539,475 Acquisitions — 4,345 — 4,345 Disposals, Currency Translation and Other Adjustments (1,804 ) (15,173 ) — (16,977 ) Acquisition Accounting Adjustments — 170 (290 ) (120 ) Balance at December 31, 2016 288,801 237,922 — 526,723 Acquisitions — 97,460 — 97,460 Disposals, Currency Translation and Other Adjustments — (1,271 ) — (1,271 ) Acquisition Accounting Adjustments — 36 — 36 Balance at December 31, 2017 $ 288,801 $ 334,147 $ — $ 622,948 Definite-Lived Intangible Assets The following table summarizes information related to definite-lived intangible assets at December 31 : 2017 2016 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal Use Software $ 14,000 $ (14,000 ) $ — $ 14,000 $ (12,665 ) $ 1,335 Technology 68,550 (25,639 ) 42,911 68,550 (18,529 ) 50,021 Merchant Relationships 181,000 (56,018 ) 124,982 181,000 (40,934 ) 140,066 Other Intangibles 1 19,558 (4,900 ) 14,658 6,581 (3,331 ) 3,250 Total $ 283,108 $ (100,557 ) $ 182,551 $ 270,131 $ (75,459 ) $ 194,672 1 Other intangibles primarily include favorable operating leases, customer relationships, customer lease contracts, non-compete agreements and reacquired franchise rights. Total amortization expense of definite-lived intangible assets, which includes rent expense on favorable operating leases, included in operating expenses in the accompanying consolidated statements of earnings, was $27.7 million , $28.8 million and $28.2 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2018 $ 28,018 2019 25,317 2020 24,037 2021 22,684 2022 22,547 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes financial liabilities measured at fair value on a recurring basis: December 31, 2017 December 31, 2016 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ (12,927 ) $ — $ — $ (11,978 ) $ — The Company maintains a deferred compensation plan as described in Note 16 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: December 31, 2017 December 31, 2016 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Held for Sale $ — $ 10,118 $ — $ — $ 8,866 $ — Assets classified as held for sale are recorded at the lower of carrying value or fair value less estimated costs to sell, and any adjustment is recorded in other operating (income) expense, net or restructuring expenses (if the asset is a part of the 2016 or 2017 restructuring program) in the consolidated statements of earnings. The highest and best use of the assets held for sale 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. 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: December 31, 2017 December 31, 2016 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Perfect Home Notes 1 $ — $ — $ 20,385 $ — $ — $ 20,519 Fixed-Rate Long Term Debt 2 — (273,476 ) — — (368,408 ) — 1 The Perfect Home Notes are carried at cost, which we believe approximates fair value. The Company periodically reviews the carrying amount utilizing company-specific transactions or changes in Perfect Home’s financial performance to determine if the Notes are impaired. On December 5, 2017, Perfect Home entered into an agreement with a third party to obtain alternative sources of senior debt financing. In light of the additional financing obtained by Perfect Home and the Company's subordinated security interest in the assets of Perfect Home, which consists primarily of outstanding loans receivable, merchandise inventory and cash, the Company has estimated that the carrying amount of its Perfect Home notes approximates fair value and, therefore, no impairment has been considered to have occurred as of December 31, 2017 . See Note 1 to these consolidated financial statements for further details regarding the Perfect Home refinancing agreement. 2 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 amount of fixed-rate long term debt was $265.0 million and $350.0 million at December 31, 2017 and 2016 , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT The following is a summary of the Company’s property, plant, and equipment: December 31, (In Thousands) 2017 2016 Land $ 19,768 $ 22,843 Buildings and Improvements 67,053 69,935 Leasehold Improvements and Signs 69,407 75,786 Fixtures and Equipment 1 266,761 247,565 Assets Under Capital Leases: with Related Parties 4,032 10,573 with Unrelated Parties 12,426 11,063 Construction in Progress 10,863 4,568 450,310 442,333 Less: Accumulated Depreciation and Amortization (242,623 ) (231,062 ) $ 207,687 $ 211,271 1 Includes internal-use software development costs of $86.2 million and $73.0 million as of December 31, 2017 and 2016 , respectively. Accumulated amortization of internal-use software development costs amounted to $42.6 million and $31.1 million as of December 31, 2017 and 2016 , respectively. Amortization expense on assets recorded under capital leases is included in operating expenses and was $1.5 million , $1.7 million and $1.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Capital leases primarily consist of buildings and improvements, as well as vehicles assumed as part of the SEI acquisition. Assets under capital leases with related parties included $3.6 million and $9.0 million in accumulated depreciation and amortization as of December 31, 2017 and 2016 , respectively. Assets under capital leases with unrelated parties included $4.7 million and $6.9 million in accumulated depreciation and amortization as of December 31, 2017 and 2016 , respectively. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans Receivables | LOANS RECEIVABLE The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2017 2016 Credit Card Loans 1 $ 89,728 $ 64,794 Acquired Loans 2 16,213 33,840 Loans Receivable, Gross 105,941 98,634 Allowance for Loan Losses (11,454 ) (6,624 ) Unamortized Fees (8,375 ) (7,206 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 86,112 $ 84,804 1 "Credit Card Loans" are loans originated after the 2015 acquisition of DAMI. 2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of DAMI. Included in the table below is an aging of the loans receivable, gross balance: (Dollar Amounts in Thousands) December 31, Aging Category 1 2017 2016 30-59 Days Past Due 7.1 % 6.8 % 60-89 Days Past Due 3.6 % 3.2 % 90 or more Days Past Due 4.1 % 4.3 % Past Due Loans Receivable 14.8 % 14.3 % Current Loans Receivable 85.2 % 85.7 % Balance of Loans Receivable on Nonaccrual Status $ 2,016 $ 1,072 Balance of Loans Receivable 90 or More Days Past Due and Still Accruing Interest and Fees $ — $ — 1 This aging is based on the contractual amounts outstanding for each loan as of period end, and does not reflect the fair value adjustments for the Acquired Loans. The table below presents the components of the allowance for loan losses: December 31, (In Thousands) 2017 2016 Beginning Balance 1 $ 6,624 $ 937 Provision for Loan Losses 20,973 11,251 Charge-offs (16,852 ) (5,675 ) Recoveries 709 111 Ending Balance $ 11,454 $ 6,624 1 The Company acquired DAMI on October 15, 2015 and recorded $89.1 million of loans receivable as of the acquisition date. No corresponding allowance for loan losses was recorded as the loans receivable were established at fair value in acquisition accounting. |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | INDEBTEDNESS Following is a summary of the Company’s debt, net of unamortized debt issuance costs: December 31, (In Thousands) 1 2017 2016 DAMI Credit Facility $ — $ 47,302 Revolving Facility — — Senior Unsecured Notes, 3.95%, Due in Installments through April 2018 24,994 49,975 Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 239,784 299,562 Term Loan, Due in Installments through September 2022 96,272 94,626 Capital Lease Obligation: with Related Parties 1,314 3,095 with Unrelated Parties 6,434 3,269 Total Debt 368,798 497,829 Less: Current Maturities 97,192 146,515 Long-Term Debt $ 271,606 $ 351,314 1 Total debt as of December 31, 2017 includes unamortized debt issuance costs of $1.5 million . The Company has also recorded $3.2 million of debt issuance costs related to the revolving credit facility within prepaid expenses and other assets in the consolidated balance sheets. Revolving Credit Agreement and Term Loan On September 18, 2017, the Company entered into a second amended and restated revolving credit and term loan agreement (the "Amended Agreement") to, among other things, (i) increase the maximum revolving credit commitment from $225.0 million to $400.0 million (including increases in the existing letter of credit subfacility from $20.0 million to $35.0 million ); (ii) provide for a $100.0 million term loan facility, an increase of $15.6 million from the $84.4 million remaining principal on the previous $125.0 million term loan, which is prepayable without penalty; (iii) amend the interest rate to bear interest at an adjusted London Interbank Overnight (LIBO) rate plus a margin within a range of 1.25% to 2.25% depending on the Company’s total net debt to EBITDA ratio or, alternatively, the administrative agent's prime rate plus a margin ranging from 0.25% to 1.25% , with the amount of such margin determined based upon the ratio of the Company's total net debt to EBITDA, for loans based on the base rate; (iv) provide for quarterly term loan repayment installments of $2.5 million , payable on the last day of each March, June, September, and December; and (v) extend the maturity date from December 9, 2019 to September 18, 2022 . The increases to the Company’s revolving credit availability and term loan facility are intended for general working capital needs and were used to fully repay and terminate the $53.0 million of outstanding borrowings under its DAMI credit facility, which was scheduled to mature on October 15, 2017. The term loan interest rate was 2.82% as of December 31, 2017 . The Amended Agreement also provides for an uncommitted incremental facility increase option which, subject to certain terms and conditions, permits the Company at any time prior to the maturity date to request an increase in extensions of credit available thereunder (whether through additional term loans and/or revolving credit commitments or any combination thereof) by an aggregate additional principal amount of up to the greater of $250.0 million or any amount provided that the incremental borrowing does not result in a total debt to adjusted EBITDA ratio greater than 2.50:1.00, with such additional credit extensions provided by one or more lenders thereunder at their sole discretion. 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 adjusted EBITDA. As of December 31, 2017 , the amount available under the revolving credit component of the Amended Agreement was reduced by approximately $6.1 million for our outstanding letters of credit, resulting in availability of $393.9 million . The Company concluded that the Amended Agreement constituted a debt modification and is deferring the $1.7 million of unamortized debt issuance costs remaining as of the amendment date over the term of the Amended Agreement. In connection with the Amended Agreement, the Company incurred $3.0 million of lender fees and third party legal and administrative fees, of which $0.2 million was recorded as interest expense within the consolidated statements of earnings for the year ended December 31, 2017 . Senior Unsecured Notes 2011 Note Purchase Agreement Pursuant to the note purchase agreement dated as of July 5, 2011, as amended, the Company and certain of its subsidiaries as co-obligors previously issued $125.0 million in senior unsecured notes to the purchasers in a private placement. The notes bear interest at a rate of 3.95% per year and mature on April 27, 2018. Payments of interest commenced on July 27, 2011 and are due quarterly, and principal payments of $25.0 million commenced on April 27, 2014 and are due annually until maturity. On April 14, 2014, the Company entered into the third amendment which revised the 2011 note purchase agreement to, among other things, replace the interest rate of 3.75% per year with an interest rate of 3.95% commencing April 28, 2014 , conform the covenants, representations, warranties and events of default to the changes reflected in the revolving credit and term loan agreement, to contemplate the acquisition of Progressive and to authorize the new 2014 senior unsecured notes. 2014 Note Purchase Agreements On April 14, 2014, the Company entered into note purchase agreements, as amended, pursuant to which the Company and certain of its subsidiaries as co-obligors issued $300.0 million in aggregate principal amount of senior unsecured notes in a private placement. The notes bear interest at the rate of 4.75% per year and mature on April 14, 2021 . Payments of interest commenced on July 14, 2014 and are due quarterly, and principal payments of $60.0 million commenced on April 14, 2017 and are due annually until maturity. Financial Covenants The revolving credit and term loan agreement, senior unsecured notes discussed above, and franchise loan program discussed in Note 9 to these consolidated financial statements contain financial covenants, which include requirements that the Company maintain ratios of (i) adjusted EBITDA plus lease expense to fixed charges of no less than 2.50:1.00 and (ii) total debt to adjusted EBITDA of no greater than 3.00:1.00. In each case, adjusted EBITDA refers to the Company’s consolidated net income before interest and tax expense, depreciation (other than lease merchandise depreciation), amortization expense, and other cash and non-cash charges as defined in the Amended Agreement. If the Company fails to comply with these covenants, the Company will be in default under these agreements, and all amounts could become due immediately. Under the Company’s revolving credit and term loan 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, 2017 , the Company was in compliance with all covenants related to its outstanding debt. Capital Leases with Related Parties As of December 31, 2017 , the Company had nine remaining capital leases with a limited liability company ("LLC") controlled by a group of current and former executives of the Company. 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 leases the land and buildings collateralizing the borrowings under a 15 -year term lease at an aggregate annual rental of $0.8 million . The transaction has been accounted for as a capital lease 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 related to the properties sold to the LLC. In January 2018, the Company extended six of the nine lease agreements with an additional five year term commencing at the expiration of the original lease agreements in November 2019. Future principal maturities under the Company’s debt and capital lease obligations are as follows: (In Thousands) 2018 $ 97,556 2019 72,768 2020 71,670 2021 70,693 2022 57,561 Thereafter — Total $ 370,248 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the President signed the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act, among other things, (i) lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018; (ii) provided for 100% expense deduction of certain qualified depreciable assets, which includes the Company's lease merchandise inventory, purchased after September 27, 2017 (but would be phased down starting in 2023); and (iii) the manufacturing deduction that expired in 2017 under the previous tax legislation was not extended. Consequently, the Company remeasured its net deferred tax liabilities as of December 31, 2017 using the lower U.S. corporate income tax rate, which resulted in a provisional estimated $140 million non-cash income tax benefit. The Company will lose its 2017 manufacturing deduction, which is limited to 9% of taxable income, as the Company is estimating it will be in a net operating loss position for tax purposes in 2017 as a result of the Tax Act's 100% expense deduction on qualified depreciable assets discussed above. We performed a provisional analysis of the income tax effects of the Tax Act and recorded a reasonable estimate of such effects. The estimated tax benefit we recorded for the year ended December 31, 2017 related to the Tax Act may differ, possibly materially, due to, among other things, further refinement of our federal and state calculations, changes in interpretations and assumptions that we have made, and additional guidance that may be issued by the U.S. Government. We will complete our analysis over a one-year measurement period ending December 22, 2018, and any adjustments during this measurement period will be included in net earnings as an adjustment to income tax expense (benefit) in the reporting period when such adjustments are determined. As result of the 100% bonus depreciation provisions in the Tax Act not being enacted until December 22, 2017, the Company made more than the required estimated federal tax liability payments in 2017; and therefore, has a $100.0 million income tax receivable as of December 31, 2017. In addition, as a result of the extended bonus depreciation provisions in the Protecting Americans From Tax Hikes Act of 2015 not being enacted until December 2015, the Company paid more than the amount ultimately required for the 2015 federal tax liability. Due to that overpayment the Company received a refund of $120.0 million in February 2016. Following is a summary of the Company’s income tax (benefit) expense: Year Ended December 31, (In Thousands) 2017 2016 2015 Current Income Tax Expense: Federal $ (3,530 ) $ 103,993 $ 32,999 State 9,772 10,308 5,442 6,242 114,301 38,441 Deferred Income Tax (Benefit) Expense: Federal (60,547 ) (33,470 ) 35,413 State 1,346 (1,692 ) 3,557 (59,201 ) (35,162 ) 38,970 Income Tax (Benefit) Expense $ (52,959 ) $ 79,139 $ 77,411 Significant components of the Company’s deferred income tax liabilities and assets are as follows: December 31, (In Thousands) 2017 2016 Deferred Tax Liabilities: Lease Merchandise and Property, Plant and Equipment $ 122,155 $ 185,891 Goodwill and Other Intangibles 37,080 52,135 Investment in Partnership 107,173 96,291 Other, Net 2,074 1,619 Total Deferred Tax Liabilities 268,482 335,936 Deferred Tax Assets: Accrued Liabilities 25,509 33,243 Advance Payments 8,199 13,087 Other, Net 23,771 20,277 Total Deferred Tax Assets 57,479 66,607 Less Valuation Allowance — (875 ) Net Deferred Tax Liabilities $ 211,003 $ 270,204 The Company’s effective tax rate differs from the statutory United States Federal income tax rate as follows: Year Ended December 31, 2017 2016 2015 Statutory Rate 35.0 % 35.0 % 35.0 % Increases (Decreases) in United States Federal Taxes Resulting From: State Income Taxes, net of Federal Income Tax Benefit 2.7 2.6 2.7 Federal Tax Credits (0.8 ) (1.1 ) (0.5 ) Change in Valuation Allowance (0.4 ) — — Tax Act Enactment - Remeasurement of net Deferred Tax Liabilities (58.2 ) — — Other, net (0.4 ) (0.3 ) (0.9 ) Effective Tax Rate (22.1 )% 36.2 % 36.3 % 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 2014. The following table summarizes the activity related to the Company’s uncertain tax positions: Year Ended December 31, (In Thousands) 2017 2016 2015 Balance at January 1, $ 2,594 $ 3,561 $ 2,644 Additions Based on Tax Positions Related to the Current Year 456 258 331 Additions for Tax Positions of Prior Years 232 293 1,176 Prior Year Reductions (236 ) (776 ) (1 ) Statute Expirations (346 ) (609 ) (589 ) Settlements (431 ) (133 ) — Balance at December 31, $ 2,269 $ 2,594 $ 3,561 As of December 31, 2017 and 2016 , the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $1.7 million and $2.5 million , respectively, including interest and penalties. During the year ended December 31, 2017 and 2016 , the Company recognized a net benefit of $0.6 million and $0.1 million , respectively, related to interest and penalties. During the year ended December 31, 2015, the Company recognized interest and penalties of $0.4 million . The Company had $0.3 million and $0.9 million of accrued interest and penalties at December 31, 2017 and 2016 , respectively. The Company recognizes potential interest and penalties related to uncertain tax benefits as a component of income tax (benefit) expense. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases The Company leases warehouse and retail store space for most of its store-based operations, call center space, and management and information technology space for corporate functions under operating leases expiring at various times through 2033 . The Company also leases certain properties under capital leases that are more fully described in Note 7 to these consolidated financial statements. Most of the leases contain renewal options for additional periods ranging from one to 20 years. 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 expense on a straight-line basis over the lease term. The Company leases transportation vehicles mainly under operating leases, with the exception of the acquired SEI vehicles which are leased under capital leases. Management expects that most leases will be renewed or replaced by other leases in the normal course of business. Rental expense, net of sublease receipts, was $104.3 million , $116.2 million , and $116.5 million in the years ended December 31, 2017 , 2016 , and 2015 , respectively, which are reported within operating expenses in the consolidated statements of earnings. The Company also incurred contractual lease obligations charges, net of estimated sublease receipts, of $13.4 million and $11.6 million , in the years ended December 31, 2017 and 2016 , respectively, related to the closure of Company-operated stores which are reported within restructuring expenses in the consolidated statements of earnings. 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, 2017 are as follows: (In Thousands) Total 2018 $ 107,038 2019 91,317 2020 77,056 2021 58,282 2022 42,046 Thereafter 81,284 $ 457,023 The Company has anticipated future sublease receipts from executed sublease agreements of $5.0 million in 2018 , $4.2 million in 2019 , $3.1 million in 2020 , $2.4 million in 2021 , $1.6 million in 2022 and $1.7 million thereafter through 2025. 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, 2017 , the maximum amount that the Company would be obligated to repay in the event franchisees defaulted was $45.3 million . The Company has recourse rights to franchisee assets securing the debt obligations, which consist primarily of lease merchandise and fixed assets. Since the inception of the franchise loan program in 1994, the Company has had no significant associated losses. The Company believes the likelihood of any significant amounts being funded by the Company in connection with these guarantees to be remote. The carrying amount of the franchisee-related borrowings guarantee, which is included in accounts payable and accrued expenses in the consolidated balance sheets, is $0.7 million as of December 31, 2017 . On September 18, 2017, the Company entered into the sixth amendment to the franchise loan facility agreement to, among other changes: (i) reduce the maximum facility commitment amount under the franchisee loan program from $125.0 million to $85.0 million and (ii) release certain inactive subsidiaries of the Company from their guarantee obligations. The loan agreement continues to provide a Canadian subfacility commitment amount for loans to franchisees that operate stores in Canada (other than the province of Quebec) of CAD $25.0 million . On October 25, 2017, the Company entered into an amendment to the franchise loan facility agreement to, among other changes: (i) extend the maturity date from December 7, 2017 to October 24, 2018 ; and (ii) amend the financial covenants to be consistent with the Revolving Credit and Term Loan Agreement financial covenants. See Note 7 to these consolidated financial statements for more information regarding the Company's financial covenants. Legal Proceedings From time to time, the Company is party to various legal and regulatory proceedings arising in the ordinary course of business. Some of the proceedings to which the Company is currently a party are described below. The Company believes it has meritorious defenses to all of the claims described below, and intends to vigorously defend against the claims. However, these proceedings are still developing and due to the inherent uncertainty in litigation, regulatory and similar adversarial proceedings, there can be no guarantee that the Company will ultimately be successful in these proceedings, or in others to which it is currently a party. Substantial losses from these proceedings or the costs of defending them could have a material adverse impact upon the Company’s business, financial position and results of operations. The Company establishes an accrued liability for legal and regulatory proceedings when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. The Company continually monitors its litigation and regulatory exposure and reviews the adequacy of its legal and regulatory reserves on a quarterly basis. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. At December 31, 2017 and 2016 , the Company had accrued $7.3 million and $6.0 million , respectively, for pending legal and regulatory matters for which it believes losses are probable and is the Company’s best estimate of its exposure to loss. The Company records these liabilities in accounts payable and accrued expenses in the consolidated balance sheets. The Company estimates that the aggregate range of reasonably possible loss in excess of accrued liabilities for such probable loss contingencies is between $0 and $1.0 million . At December 31, 2017 , 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 $0.5 million and $3.5 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. The Company’s estimates for legal and regulatory accruals, aggregate probable loss amounts and reasonably possible loss amounts, are all subject to the uncertainties and variables described above. 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 equitable relief, 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 claims that there are multiple violations per contract. The complaint also seeks pre-and-post judgment interest and attorneys' fees. 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. On February 23, 2016, the Court granted in part and denied in part the Company’s motion for partial summary judgment filed August 14, 2015, dismissing plaintiff’s claims that a pro-rate feature of the lease agreements violated the New Jersey Consumer Fraud Act, but denying summary judgment on the claim that Aaron’s Service Plus violated the same act. In December 2016, a class notice was mailed to certain individuals who were customers of Company-operated stores in New Jersey from March 16, 2006 to March 31, 2011. The parties participated in a settlement conference and reached tentative settlement terms in March 2017. On September 15, 2017, the parties submitted the final comprehensive settlement agreement to the Court for approval, which remains 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, plaintiffs allege 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 ("ECPA") 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." Plaintiffs have filed an amended complaint, which asserts claims under the ECPA, common law invasion of privacy, seeks an injunction, and names additional independently owned and operated Company franchisees as defendants. Plaintiffs seek monetary damages as well as injunctive relief. In March 2014, the United States District Court dismissed all claims against all franchisees other than Aspen Way Enterprises, LLC, dismissed claims for invasion of privacy, aiding and abetting, and conspiracy against all defendants, and denied plaintiffs’ motion to certify a class action, but denied the Company’s motion to dismiss the claims alleging ECPA violations. In April 2015, the United States Court of Appeals for the Third Circuit reversed the denial of class certification on the grounds stated by the District Court, and remanded the case back to the District Court for further consideration of that and the other elements necessary for class certification. On September 26, 2017, the District Court again denied plaintiffs' motion for class certification. Plaintiffs have filed a petition with the United States Court of Appeals for the Third Circuit for permission to appeal the denial of class certification. The Company is opposing this petition, and a decision remains pending. 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, 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 as well as certification of a putative California class. In April 2013, the Company removed this matter to federal court. In May 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 June 2015, the plaintiffs filed a motion to lift the stay, which was denied in July 2015. In Lomi Price v. Aaron's, Inc. and NW Freedom Corporation , filed on February 27, 2013, in the State Court of Fulton County, Georgia, 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. This case has been stayed pending resolution of the Byrd litigation. In Michael Peterson v. Aaron’s, Inc. and Aspen Way Enterprises, Inc. , filed on June 19, 2014, in the United States District Court for the Northern District of Georgia, plaintiffs claim that the Company and Aspen Way knowingly violated plaintiffs' privacy and the privacy of plaintiffs' law firm's clients in violation of the ECPA and the Computer Fraud Abuse Act. Plaintiffs seek certification of a putative nationwide class. Plaintiffs based these claims on Aspen Way's use of PC Rental Agent software. The Court has dismissed all claims except a claim for aiding and abetting invasion of privacy. Plaintiffs filed a motion for class certification which the Court denied on January 25, 2017. On May 5, 2017, the Company filed a motion for summary judgment on the remaining single plaintiff case, and on October 3, 2017, the District Court granted that motion in its entirety as to Aaron's, Inc. The case remains pending solely against Aspen Way Enterprises, Inc. Securities Re Aaron's Securities Litigation, f/k/a Arkansas Teacher Retirement System, et al (f/k/a Employees' Retirement System of the City of Baton Rouge) v. Aaron's, Inc., John W. Robinson, III, Ryan K. Woodley, and Gilbert L. Danielson , was filed on June 16, 2017 in the United States District Court for the Northern District of Georgia. The litigation relates to the temporary drop in Aaron’s stock price following the Company’s announcement of 2015 third quarter results. The complaint alleges that during the period from February 6, 2015 through October 29, 2015, Aaron's made misleading public statements about the Company's expected financial results and business prospects. The allegations underlying the lawsuit principally relate to the loss of certain data feeds experienced by Progressive Leasing beginning in February 2015 and the alleged failure to disclose the same in a timely manner, as well as certain software issues that allegedly hindered the identification of delinquent accounts during certain limited times in 2015. The Company filed a motion to dismiss the lawsuit on December 15, 2017. The Company believes the claims are without merit and intends to vigorously defend against this lawsuit. Other Contingencies At December 31, 2017 , the Company had non-cancelable commitments primarily related to certain advertising and marketing programs of $20.3 million . Payments under these commitments are scheduled to be $9.8 million in 2018 , $7.2 million in 2019 , $2.7 million in 2020 and $0.7 million in 2021 . 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. Off-Balance Sheet Risk The Company, through its DAMI business, has unfunded lending commitments totaling $354.5 million and $366.4 million as of December 31, 2017 and 2016 , respectively. These unfunded commitments arise in the ordinary course of business from credit card agreements with individual cardholders that give them the ability to borrow, against unused amounts, up to the maximum credit limit assigned to their account. While these unfunded amounts represented the total available unused lines of credit, the Company does not anticipate that all cardholders will utilize their entire available line at any given point in time. Commitments to extend unsecured credit are agreements to lend to a cardholder so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The reserve for losses on unfunded loan commitments is calculated by the Company based on historical usage patterns of cardholders after the initial charge and was approximately $0.6 million and $0.5 million as of December 31, 2017 and 2016 , respectively. The reserve for losses on unfunded loan commitments is included in accounts payable and accrued expenses in the consolidated balance sheets. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING 2017 Restructuring Program During the year ended December 31, 2017 , the Company initiated a restructuring program that included a further review of the Company-operated Aaron’s store portfolio in order to continue rationalizing its store base to better align with marketplace demand. As a result of this restructuring program, the Company closed 15 underperforming Company-operated stores during 2017 and anticipates closing an additional eight stores in the first six months of 2018. Total restructuring charges of $3.0 million were recorded during the year ended December 31, 2017 under the 2017 program, which were comprised of $1.7 million related to a realignment of the Company’s home office organizational structure to more closely align with current business conditions, $0.8 million related to Aaron’s contractual lease obligations for closed stores, and $0.5 million related to the write-off and impairment of Aaron’s store property, plant and equipment. These costs were included in restructuring expenses in the consolidated statements of earnings. The Company expects to incur approximately $1.5 million of additional charges related to the 2017 restructuring program, which are expected to be incurred in the first six months of 2018. This estimate is subject to change based on future changes in assumptions for the remaining minimum lease obligation for stores closed under the restructuring program, including changes related to sublease assumptions and potential earlier buyouts of leases with landlords. 2016 Restructuring Program During the year ended December 31, 2016 , the Company initiated a restructuring program that included a thorough review of the Company-operated Aaron’s store portfolio and the subsequent closure or planned closure of underperforming stores. As a result of this restructuring program, the Company closed 123 underperforming Company-operated stores throughout 2016 and 2017. The Company also optimized its home office staff during 2016 and field support during 2016 and 2017, which resulted in a reduction in employee headcount in those areas to more closely align with current business conditions. Total restructuring charges of $15.0 million and $20.2 million were recorded during the years ended December 31, 2017 and December 31, 2016 , respectively, under the 2016 program. Charges incurred during 2017 were comprised of $12.6 million related to Aaron’s store contractual lease obligations for closed stores, $1.5 million related to reduction of headcount to more closely align with current business conditions, and $0.9 million related to the write-down to fair value, less estimated selling costs, of land and buildings from stores closed under the restructuring program. These costs were included in restructuring expenses in the consolidated statements of earnings. The Company does not expect to incur any further material charges related to the 2016 restructuring program. The following table summarizes the balances of the accruals for both programs, which are recorded in accounts payable and accrued expenses in the consolidated balance sheets, and the activity for the years ended December 31, 2017 and December 31, 2016 : (In Thousands) Contractual Lease Obligations Severance Total Balance at January 1, 2016 $ — $ — $ — Charges 11,830 3,883 15,713 Adjustments 1 (241 ) — (241 ) Restructuring Charges 11,589 3,883 15,472 Payments (1,006 ) (1,804 ) (2,810 ) Balance at December 31, 2016 10,583 2,079 12,662 Charges 13,501 3,176 16,677 Adjustments 1 (69 ) — (69 ) Restructuring Charges 13,432 3,176 16,608 Payments (11,578 ) (2,952 ) (14,530 ) Balance at December 31, 2017 $ 12,437 $ 2,303 $ 14,740 1 Adjustments relate to changes in sublease assumptions and interest accretion. The following table summarizes restructuring charges by segment for the years ended December 31, 2017 and December 31, 2016 : Year Ended December 31, 2017 Year Ended December 31, 2016 (In Thousands) Aaron’s Business DAMI 1 Total Aaron’s Business Total Contractual Lease Obligations $ 13,432 $ — $ 13,432 $ 11,589 $ 11,589 Severance 2,705 471 3,176 3,883 3,883 Fixed Asset Impairment and Other 1,386 — 1,386 4,746 4,746 Total Restructuring Expense $ 17,523 $ 471 $ 17,994 $ 20,218 $ 20,218 1 Restructuring charges for DAMI relate primarily to severance and other costs related to the segment’s relocation of its headquarters. Future DAMI restructuring charges are expected to be immaterial. To date, the Company has incurred charges of $38.2 million under the 2016 and 2017 restructuring programs. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY The Company held 20,733,010 shares in its treasury and was authorized to purchase an additional 7,162,279 shares at December 31, 2017 . On February 13, 2018, the Company replaced the stock repurchase program previously authorized by its Board of Directors with a newly authorized $500 million stock repurchase program. 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. Certain unvested time-based restricted stock awards entitle participants to vote and accrue dividends during the vesting period. As of December 31, 2017 , the Company had issued approximately 306,000 unvested restricted stock awards that contain voting rights but are not presented as outstanding on the consolidated balance sheet. In 2017 , the Company repurchased 1,961,442 shares of its common stock for $62.6 million . In 2016 , the Company repurchased 1,372,700 shares of its common stock for $34.5 million . There was no share repurchase activity during 2015. 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, 2017 , no preferred shares have been issued. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION The Company grants stock options, RSUs, RSAs and PSUs to certain employees and directors of the Company under the 2015 Equity and Incentive Award Plan and previously did so under the 2001 Stock Option and Incentive Award Plan (the "2015 Plan" and "2001 Plan"). The 2001 Plan was originally approved by the Company’s shareholders in May 2001 and was amended and restated with shareholder approval in May 2009 and discontinued with the approval of the 2015 Plan on May 6, 2015. Beginning in 2015, as part of the Company’s long-term incentive compensation program ("LTIP Plan") and pursuant to the Company’s 2001 Plan and 2015 Plan, the Company granted a mix of stock options, time-based restricted stock and performance share units to key executives and managers. As of December 31, 2017 , the aggregate number of shares of common stock that may be issued or transferred under the 2015 Plan is 2,380,572 . The Company has elected a policy to estimate forfeitures in determining the amount of stock compensation expense. Total stock-based compensation expense was $27.4 million , $21.5 million and $14.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. These costs were included as a component of operating expenses in the consolidated statements of earnings. The total income tax benefit recognized in the consolidated statements of earnings for stock-based compensation arrangements was $10.4 million , $8.2 million and $5.4 million in the years ended December 31, 2017 , 2016 and 2015 , respectively. Benefits of tax deductions in excess of recognized compensation cost, which are included in operating cash flows, were $1.1 million and $0.3 million for the years ended December 31, 2017 and 2015 , respectively. Tax deductions less than recognized compensation cost were $0.7 million for the year ended December 31, 2016 . As of December 31, 2017 , there was $24.4 million of total unrecognized compensation expense related to non-vested stock-based compensation which is expected to be recognized over a period of 1.6 years. Stock Options Under the Company’s 2001 Plan, options granted become exercisable after a period of one to five years and unexercised options lapse 10 years after the date of grant. Under the Company’s 2015 Plan, options granted to date become exercisable after a period of one to three years and unexercised options lapse 10 years after the date of the grant. Unvested options are subject to forfeiture upon termination of service for both plans. The Company recognizes compensation expense for options that have a graded vesting schedule on a straight-line basis over the requisite service period. Shares are issued from the Company’s treasury shares upon share option exercises. The Company determines the fair value of stock options on the grant date using a Black-Scholes-Merton option pricing model that incorporates expected volatility, expected option life, risk-free interest rates and expected dividend yields. The expected volatility is based on implied volatilities from traded options on the Company’s stock and the historical volatility of the Company’s common stock over the most recent period generally commensurate with the expected estimated life of each respective grant. The expected lives of options are based on the Company’s historical option exercise experience. The Company believes that the historical experience method is the best estimate of future exercise patterns. The risk-free interest rates are determined using the implied yield available for zero-coupon United States government issues with a remaining term equal to the expected life of the grant. The expected dividend yields are based on the approved annual dividend rate in effect and market price of the underlying common stock at the time of grant. No assumption for a future dividend rate increase has been included unless there is an approved plan to increase the dividend in the near term. The Company granted 518,000 , 634,000 and 338,000 stock options during the years ended December 31, 2017 , 2016 and 2015 , respectively. The weighted-average fair value of options granted and the weighted-average assumptions used in the Black-Scholes-Merton option pricing model for such grants were as follows: 2017 2016 2015 Dividend Yield 0.4 % 0.4 % 0.3 % Expected Volatility 32.8 % 34.2 % 28.9 % Risk-free Interest Rate 1.9 % 1.3 % 1.6 % Expected Term (in years) 5.3 5.3 5.2 Weighted-average Fair Value of Stock Options Granted $ 8.55 $ 7.10 $ 8.41 The following table summarizes information about stock options outstanding at December 31, 2017 : Options Outstanding Options Exercisable Range of Exercise Number Outstanding Weighted Average Remaining Contractual Life (in Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $10.01-15.00 61 0.79 $ 14.11 61 $ 14.11 15.01-20.00 49 2.15 19.92 49 19.92 20.01-25.00 586 8.14 22.67 191 22.73 25.01-30.00 780 8.37 27.50 244 28.09 30.01-32.20 176 7.06 32.10 120 32.06 10.01-32.20 1,652 7.69 25.56 665 25.39 The table below summarizes option activity for the year ended December 31, 2017 : Options (In Thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Weighted Average Fair Value Outstanding at January 1, 2017 1,407 $ 24.21 Granted 518 27.18 Exercised (184 ) 18.83 Forfeited/expired (89 ) 27.52 Outstanding at December 31, 2017 1,652 25.56 7.69 $ 23,607 $ 8.12 Expected to Vest at December 31, 2017 894 25.65 8.56 12,694 7.95 Exercisable at December 31, 2017 665 25.39 6.36 9,616 8.35 The aggregate intrinsic value amounts in the table above represent the closing price of the Company’s common stock on December 31, 2017 in excess of the exercise price, multiplied by the number of in-the-money stock options as of that same date. Options outstanding that are expected to vest are net of estimated future option forfeitures. The aggregate intrinsic value of options exercised, which represents the value of the Company’s common stock at the time of exercise in excess of the exercise price, was $2.6 million , $0.4 million and $0.8 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. The total grant-date fair value of options vested during the year ended December 31, 2017 , 2016 and 2015 was $1.7 million , $1.4 million and $1.1 million , respectively. Restricted Stock Shares of restricted stock units or restricted stock awards (collectively, "restricted stock") may be granted to employees and directors under the 2015 Plan and typically vest over approximately one to three year periods; under the 2001 Plan restricted stock typically vests over approximately one to five year periods. Restricted stock grants are generally settled in stock and may be subject to one or more objective employment, performance or other forfeiture conditions as established at the time of grant. The Company generally recognizes compensation expense for restricted stock with a graded vesting schedule on a straight-line basis over the requisite service period. Compensation expense for performance-based restricted stock is amortized on an accelerated basis over the vesting period based on the Company’s projected assessment of the level of performance that will be achieved and earned. Shares are issued from the Company’s treasury shares upon vesting. Any shares of restricted stock that are forfeited may again become available for issuance. The fair value of restricted stock is generally based on the fair market value of the Company’s common stock on the date of grant. In 2011, the Company established a restricted stock program as a component of the 2001 Plan, referred to as the Aaron’s Management Performance Plan ("AMP Plan"). Under the AMP Plan, which expired on December 31, 2012, restricted shares were granted quarterly to eligible participants upon achievement of certain pre-tax profit and revenue levels by the employees’ operating units or the overall Company. Restricted stock granted under the AMP Plan vests over four to five years from the date of grant. Plan participants included certain vice presidents, director level employees and other key personnel in the Company’s home office, divisional vice presidents and regional managers. These grants began vesting in 2016. During 2013, the Company granted performance-based restricted stock to certain executive officers. During 2016, the performance-based restricted stock under this program vested with the completion of the three -year service period and the achievement of specific performance criteria. The compensation expense associated with these awards was amortized ratably over the vesting period based on the Company’s projected assessment of the level of performance that would be achieved and earned. During 2017, the Company granted performance-based restricted stock awards to certain executive officers that vest over a three -year service period and with the achievement of specific performance criteria. The compensation expense associated with these awards is amortized on an accelerated basis over the vesting period based on the Company's projected assessment of the level of performance that will be achieved and earned. The Company granted 375,000 , 379,000 and 261,000 shares of restricted stock at weighted-average fair values of $29.27 , $22.81 and $31.78 in the years ended December 31, 2017 , 2016 and 2015 , respectively. The following table summarizes information about restricted stock activity during 2017 : Restricted Stock (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2017 953 $ 27.45 Granted 375 29.27 Vested (325 ) 28.09 Forfeited (56 ) 27.27 Non-vested at December 31, 2017 947 1 27.96 1 The outstanding non-vested restricted stock as of December 31, 2017 includes 95,730 shares that are subject to performance conditions. The total vest-date fair value of restricted stock described above that vested during the year was $9.9 million , $3.8 million and $1.8 million in the years ended December 31, 2017 , 2016 and 2015 , respectively. Performance Share Units For performance share units, which are generally settled in stock, the number of shares earned is determined at the end of the one -year performance period based upon achievement of various performance criteria, which have included adjusted EBITDA, revenue, return on capital and invoice volume levels of the respective segments. Beginning in 2016, the Company added adjusted pre-tax profit and production volume levels as additional performance criteria for certain segments. When the performance criteria are met, the award is earned and one-third of the award vests. One third of the earned award is subject to an additional one year service period and one-third of the earned award is subject to an additional two year service period. Shares are issued from the Company’s treasury shares upon vesting. The number of performance-based shares which could potentially be issued ranges from zero to 200% of the target award. The fair value of performance share units is based on the fair market value of the Company’s common stock on the date of grant. The compensation expense associated with these awards is amortized on an accelerated basis over the vesting period based on the Company’s projected assessment of the level of performance that will be achieved and earned. In the event the Company determines it is no longer probable that the minimum performance criteria specified in the plan will be achieved, all previously recognized compensation expense is reversed in the period such a determination is made. The following table summarizes information about performance share unit activity during 2017 : Performance Share Units (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2017 693 $ 25.67 Granted 479 27.00 Vested (269 ) 26.51 Forfeited/unearned (81 ) 25.74 Non-vested at December 31, 2017 822 26.31 The total vest-date fair value of performance share units described above that vested during the period was $7.9 million and $3.4 million for the years ended December 31, 2017 and 2016 , respectively. There were no performance share units that vested during 2015 . |
Segments
Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS Description of Products and Services of Reportable Segments As of December 31, 2017 , the Company has three operating and reportable segments: Progressive Leasing, Aaron’s Business and DAMI. During the year ended December 31, 2017 , the Company changed its composition of reportable segments by combining the Sales and Lease Ownership, Franchise and Woodhaven components into one reportable segment, the Aaron’s Business, to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources. The Company has retroactively adjusted, for all periods presented, its segment disclosures to align with the current composition of reportable segments. Progressive Leasing is a leading virtual lease-to-own company that provides lease-purchase solutions on a variety of products, including furniture and bedding, consumer electronics, appliances and jewelry. DAMI offers a variety of second-look financing programs originated through two third-party federally insured banks to customers of participating merchants and, together with Progressive Leasing, allows the Company to provide retail partners with below-prime customers one source for financing and leasing transactions. The results of DAMI have been included in the Company’s consolidated results and presented as a reportable segment from the October 15, 2015 acquisition date. The Aaron’s Business offers furniture, consumer electronics, home appliances and accessories to consumers primarily on a month-to-month, lease-to-own basis with no credit needed through the Company’s Aaron’s stores in the United States and Canada. This operating segment also supports franchisees of its Aaron’s stores. In addition, the Aaron’s Business segment also includes the operations of Woodhaven Furniture Industries, which manufactures and supplies the majority of the upholstered furniture and bedding leased and sold in Company-operated and franchised stores. The HomeSmart operations, prior to the May 2016 disposition, is reflected within the Aaron’s Business segment and offered furniture, electronics, appliances and computers to customers primarily on a weekly payment basis with no credit needed. 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. Intersegment sales are completed at internally negotiated amounts. Since the intersegment profit affects 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. Year Ended December 31, (In Thousands) 2017 2016 2015 Revenues: Progressive Leasing $ 1,566,413 $ 1,237,597 $ 1,049,681 Aaron’s Business 1,782,370 1,946,039 2,127,230 DAMI 1 34,925 24,080 2,845 Total Revenues from External Customers $ 3,383,708 $ 3,207,716 $ 3,179,756 Earnings (Loss) Before Income Tax (Benefit) Expense: Progressive Leasing $ 140,224 $ 104,686 $ 54,525 Aaron’s Business 110,642 123,009 160,559 DAMI (11,289 ) (9,273 ) (1,964 ) Total Earnings Before Income Tax (Benefit) Expense $ 239,577 $ 218,422 $ 213,120 1 Represents interest and fees on loans receivable and excludes the effect of interest expense. Corporate-related assets that benefit multiple segments are reported as other assets in the table below. December 31, (In Thousands) 2017 2016 Assets: Progressive Leasing $ 1,022,413 $ 919,487 Aaron’s Business 1 1,261,234 1,199,213 DAMI 108,306 102,958 Other 300,311 394,078 Total Assets $ 2,692,264 $ 2,615,736 Assets From Canadian Operations (included in totals above): Aaron’s Business $ 20,223 $ 17,199 1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the consolidated balance sheets of $16.3 million and $14.3 million as of December 31, 2017 and 2016 , respectively. Year Ended December 31, (In Thousands) 2017 2016 2015 Depreciation and Amortization 1 : Progressive Leasing $ 29,048 $ 30,727 $ 28,870 Aaron’s Business 52,251 50,658 51,115 DAMI 1,273 993 218 Total Depreciation and Amortization $ 82,572 $ 82,378 $ 80,203 Interest Expense: Progressive Leasing $ 18,577 $ 20,042 $ 21,959 Aaron’s Business (2,366 ) (768 ) 616 DAMI 4,327 4,116 764 Total Interest Expense $ 20,538 $ 23,390 $ 23,339 Capital Expenditures: Progressive Leasing $ 8,213 $ 6,084 $ 8,175 Aaron’s Business 48,335 50,582 52,342 DAMI 1,425 787 40 Total Capital Expenditures $ 57,973 $ 57,453 $ 60,557 Revenues From Canadian Operations (included in totals above): Aaron’s Business $ 18,256 $ 12,434 $ 3,431 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. In 2017, the results of the Company’s operating segments were impacted by the following items: • Aaron's Business earnings before income taxes were impacted by $17.5 million of restructuring charges incurred during the year ended December 31, 2017 related to store contractual lease obligations, severance costs and impairment charges in connection with the Company's strategic decision to close Company-operated stores as discussed in Note 10 to these consolidated financial statements. In 2016, the results of the Company’s operating segments were impacted by the following items: • Aaron's Business earnings before income taxes were impacted by $20.2 million of restructuring charges incurred during the year ended December 31, 2016 in connection with the Company’s strategic decision to close Company-operated stores as discussed in Note 10 to these consolidated financial statements. • Aaron's Business earnings before income taxes includes a loss on the sale of HomeSmart of $4.3 million and additional charges of $1.1 million related to exiting the HomeSmart business during the year ended December 31, 2016 . • Earnings before income taxes for the Aaron's Business during the year ended December 31, 2016 were also impacted by a gain of $11.1 million on the January 2016 sale of the Company’s former corporate office building. In 2015, the results of the Company’s operating segments were impacted by the following items: • Earnings before income taxes for the Aaron’s Business included a $3.5 million loss related to a lease termination on a Company aircraft. • Progressive Leasing earnings before income taxes included $3.7 million of transaction costs related to the October 15, 2015 DAMI acquisition. The Company determines earnings (loss) before income taxes for all reportable segments in accordance with U.S. GAAP with the following adjustments: • Generally a predetermined amount of Corporate overhead is allocated to each reportable segment based on segment revenues. Any unallocated Corporate overhead in excess of predetermined amounts is assigned to the Aaron's Business. • Interest expense is allocated to the Progressive Leasing and DAMI segments based on a percentage of the outstanding balances of its intercompany borrowings and of the debt incurred when it was acquired. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company leases certain properties under capital leases with certain related parties that are more fully described in Note 7 above. In addition to the related party capital leases that are fully described in Note 7, the Company also had 10 operating leases with the same limited liability company ("LLC") controlled by a group of current and former executives of the Company as of December 31, 2017 . In December 2002, the Company sold 10 properties, including leasehold improvements, to the LLC. The LLC obtained borrowings collateralized by the land and buildings totaling $5.0 million . Upon the initial sale, no gain or loss was recognized related to the properties sold to the LLC and the leases were originally accounted for as capital leases in the Company's consolidated financial statements. During January 2018, the Company renewed its lease agreements to lease the land and buildings collateralizing the borrowings under a range of five to eight year term leases at an aggregate annual rental of approximately $0.8 million . The transaction has been accounted for as an operating lease in the accompanying consolidated financial statements. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (In Thousands, Except Per Share Data) First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2017 Revenues $ 844,554 $ 815,644 $ 838,883 $ 884,627 Gross Profit * 365,920 352,639 356,743 383,574 Earnings Before Income Taxes 82,623 56,995 39,221 60,738 Net Earnings 53,300 36,335 25,341 177,560 Earnings Per Share 0.75 0.51 0.36 2.51 Earnings Per Share Assuming Dilution 0.74 0.51 0.35 2.46 Year Ended December 31, 2016 Revenues $ 854,427 $ 789,353 $ 768,982 $ 794,954 Gross Profit * 374,268 352,576 332,487 339,599 Earnings Before Income Taxes 79,728 61,124 45,282 32,288 Net Earnings 49,687 38,501 29,464 21,631 Earnings Per Share 0.68 0.53 0.41 0.30 Earnings Per Share Assuming Dilution 0.68 0.53 0.40 0.30 * Gross profit is the sum of lease revenues and fees, retail sales, non-retail sales, and interest and fees on loans receivable less retail cost of sales, non-retail cost of sales, depreciation of lease merchandise, provision for write-offs of lease merchandise, and provision for credit losses. The comparability of the Company’s quarterly financial results during 2017 and 2016 was impacted by certain events, as described below on a pre-tax basis: • The first, second, third and fourth quarter of 2017 included restructuring charges of $0.3 million , $13.5 million , $0.8 million and $3.4 million , respectively, related to store contractual lease obligations, severance costs and impairment charges in connection with the Company's strategic decision to close Company-operated stores as discussed in Note 10 to these consolidated financial statements. • The comparability of the Company's fourth quarter 2017 net earnings and earnings per share data were impacted by the Tax Act enactment on December 22, 2017. The estimated net impact of the Tax Act to income tax (benefit) expense during the fourth quarter of 2017 is a non-cash provisional income tax benefit of $137 million , which is an estimated $140 million remeasurement of net deferred tax liabilities at the lower U.S. corporate income tax rate provided by the Tax Act, partially offset by an estimated $3 million expense from the loss of the manufacturing deduction in 2017 and other impacts. • The first quarter of 2016 included a gain of $11.1 million on the January 2016 sale of the Company’s former corporate office building, a loss of $4.6 million related to the write-down of the HomeSmart disposal group to its fair value less estimated costs to sell upon its classification as held for sale, and charges of $3.7 million related to the retirement of the Company’s former Chief Financial Officer. • The second quarter of 2016 included a loss of $1.0 million primarily consisting of impairment charges on certain assets related to the HomeSmart segment that have been sold or are held for sale. • The third and fourth quarter of 2016 included restructuring expenses of $4.7 million and $15.5 million , respectively. See Note 10 to these consolidated financial statements for further discussion of restructuring activities. |
Compensation Arrangements
Compensation Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Compensation Arrangements | The Company maintains the Aaron’s, Inc. Deferred Compensation Plan, which is an unfunded, nonqualified deferred compensation plan for a select group of management, highly compensated employees and non-employee directors. On a pre-tax basis, eligible employees can defer receipt of up to 75% of their base compensation and up to 75% of their incentive pay compensation, and eligible non-employee directors can defer receipt of up to 100% of their cash director fees. Compensation deferred under the plan is 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 $12.9 million and $12.0 million as of December 31, 2017 and 2016 , 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 $17.1 million and $15.6 million as of December 31, 2017 and 2016 , respectively, and is included in prepaid expenses and other assets in the consolidated balance sheets. Gains related to the changes in the cash surrender value of the Company-owned life insurance plans were $1.5 million , $0.2 million and $0.8 million during the years ended December 31, 2017 , 2016 and 2015 , respectively, and were recorded within other non-operating income (expense) in the consolidated statement of earnings. Benefits of $2.3 million , $1.4 million and $1.7 million were paid during the years ended December 31, 2017 , 2016 and 2015 , respectively. Effective January 1, 2018 the Company is implementing a new discretionary match within the nonqualified deferred compensation plan. The match allows eligible employees to receive 100% matching by the Company on the first 3% of contributions and 50% on the next 2% of contributions for a total of a 4% match. The match is not to exceed $11,000 for an individual employee for 2018 and is subject to a three year cliff vesting schedule. Deferred compensation expense charged to operations for the Company’s existing restoration matching contributions was not significant during any of the periods presented. 401(k) Defined Contribution Plan The Company maintains a 401(k) savings plan for all its full-time employees who meet certain eligibility requirements. Effective January 1, 2015, the 401(k) savings plan was amended to allow employees to contribute up to 75% of their annual compensation in accordance with federal contribution limits with 100% matching by the Company on the first 3% of compensation and 50% on the next 2% of compensation for a total of a 4% match. The Company’s expense related to the plan was $5.7 million in 2017 , $5.4 million in 2016 and $4.7 million in 2015 . |
Business and Summary of Signi25
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Aaron’s, Inc. (the "Company") is a leading omnichannel provider of lease-purchase solutions to individual consumers. As of December 31, 2017 , the Company’s operating segments are Progressive Leasing, Aaron’s Business and DAMI. Progressive Leasing is a virtual lease-to-own company that provides lease-purchase solutions in 46 states and the District of Columbia. It does so by purchasing merchandise from third-party retailers desired by those retailers’ customers and, in turn, leasing that merchandise to the customers on a lease-to-own basis. Progressive Leasing consequently has no stores of its own, but rather offers lease-purchase solutions to the customers of traditional retailers. The Aaron’s Business segment offers furniture, consumer electronics, home appliances and accessories to consumers primarily on a month-to-month, lease-to-own basis with no credit needed through the Company’s Aaron’s-branded stores in the United States and Canada. This operating segment also supports franchisees of its Aaron’s-branded stores. In addition, the Aaron’s Business segment includes the operations of Woodhaven Furniture Industries, which manufactures and supplies the majority of the upholstered furniture and bedding leased and sold in Company-operated and franchised stores. DAMI, which was acquired by Progressive Leasing on October 15, 2015, partners with merchants to provide a variety of revolving credit products originated through two third-party federally insured banks to customers that may not qualify for traditional prime lending (called "second-look" financing programs). |
Basis of Presentation | Basis of Presentation The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Generally, actual experience has been consistent with management’s prior estimates and assumptions. Management does not believe these estimates or assumptions will change significantly in the future absent unidentified and unforeseen events. |
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 subsidiaries, each of which is wholly owned. Intercompany balances and transactions between consolidated entities have been eliminated. |
Revenue Recognition | Revenue Recognition Lease Revenues and Fees The Company provides merchandise, consisting primarily of furniture, consumer electronics, home appliances and accessories, to its customers for lease under certain terms agreed to by the customer. The Company’s Aaron's-branded stores offer leases with month-to-month terms that can be renewed up to 12 , 18 or 24 months . The Company’s Progressive Leasing segment offers virtual lease-purchase solutions, typically over 12 months , to the customers of traditional retailers. The Company does not require deposits upon inception of customer agreements. The customer has the right to acquire ownership either through a purchase option or through payment of all required lease payments. Aaron's Business lease revenues are recognized as revenue net of related sales taxes in the month they are due. Lease payments received prior to the month due are recorded as deferred lease revenue, and this amount is included in customer deposits and advance payments in the accompanying consolidated balance sheets. Progressive Leasing lease revenues are earned prior to the lease payment due date and are recorded net of related sales taxes as earned. Revenue recorded prior to the payment due date results in unbilled accounts receivable in the accompanying consolidated balance sheets. All of the Company’s customer agreements are considered operating leases. The Company maintains ownership of the lease merchandise until all payment obligations are satisfied under sales and lease ownership agreements. Initial direct costs related to Progressive Leasing's lease purchase agreements are capitalized as incurred and amortized over the estimated lease term. The capitalized costs have been classified within prepaid expenses and other assets in the accompanying consolidated balance sheets. Initial direct costs related to Aaron's Business customer agreements are expensed as incurred and have been classified as operating expenses in the Company’s consolidated statements of earnings. The statement of earnings effects of expensing the initial direct costs of the Aaron's Business as incurred are not materially different from amortizing initial direct costs over the lease term. Retail and Non-Retail Sales Revenues from the sale of merchandise to franchisees are recognized when title and risk of ownership transfer to the franchisee upon its receipt of the merchandise. 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. Franchise Royalties and Fees The Company franchises its Aaron’s stores in markets where the Company has no immediate plans to enter. Franchisees pay an ongoing royalty of 6% of the weekly cash revenue collections. In addition, franchisees typically pay a non-refundable initial franchise fee from $15,000 to $50,000 depending upon market size. 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 franchise fee revenue when substantially all of the Company’s obligations per location are satisfied, generally at the date of the store opening. 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 9 to these consolidated financial statements for additional discussion of the Company’s franchise-related guarantee obligation. |
Interest and Fees on Loans Receivable | Interest and Fees on Loans Receivable DAMI extends or declines credit to an applicant through its bank partners based upon the applicant’s credit rating and other factors. Qualifying applicants receive a credit card to finance their initial purchase and to use in subsequent purchases at the merchant or other participating merchants for an initial 24 -month period, which DAMI may renew if the cardholder remains in good standing. DAMI acquires the loan receivable from merchants through its third-party bank partners at a discount from the face value of the loan. The discount is comprised of a merchant fee discount and a promotional fee discount. The merchant fee discount represents a pre-negotiated, nonrefundable discount that generally ranges from 3% to 25% of the loan face value. The discount is designed to cover the risk of loss related to the portfolio of cardholder charges and DAMI’s direct origination costs. The merchant fee discount and origination costs are netted on the consolidated balance sheet in loans receivable. Cardholders generally have an initial 24 -month period that the card is active. The merchant fee discount, net of the origination costs, is amortized on a net basis and is recorded as interest and fee revenue on loans receivable in the consolidated statements of earnings on a straight-line basis over the initial 24 -month period. The discount from the face value of the loan on the acquisition of the loan receivable from the merchant through the third-party bank partners also includes a promotional fee discount, which generally ranges from 1% to 8% . The promotional fee discount is intended to compensate the holder of the loan receivable (e.g. DAMI) for deferred or reduced interest rates that are offered to the cardholder for a specified period on the outstanding loan balance (generally for six , 12 or 18 months). The promotional fee discount is amortized as interest and fee revenue on loans receivable in the consolidated statements of earnings on a straight-line basis over the promotional interest period (i.e., over six , 12 or 18 months, depending on the promotion). The customer is required to make periodic minimum payments that are generally 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 17.90% to 29.99% , are compounded daily for cards that do not qualify for deferred or reduced interest promotional periods. Interest income, which is recognized based upon the amount of the loans outstanding, is recognized as interest and fees on loans receivable in the billing period in which they are assessed if collectability is reasonably assured. For credit cards that provide for deferred or reduced interest, if the balance is not paid off during the promotional period, interest is billed to the customers at standard rates and the cumulative amount owed is charged to the cardholder account in the month that the promotional period expires or defaults. The Company recognizes interest revenue during the promotional period based on its historical experience related to cardholders that fail to pay off balances during the promotional period. Annual fees are charged to cardholders at the commencement of the loan and on each subsequent anniversary date. Annual fees are deferred and recognized into revenue on a straight-line basis over a one year period. Under the provisions of the credit card agreements, the Company also may assess fees for service calls or for missed or late payments, which are recognized as revenue in the billing period in which they are assessed if collectability is reasonably assured. |
Lease Merchandise | Lease Merchandise The Company’s lease merchandise consists primarily of furniture, consumer electronics, home appliances and accessories and is recorded at the lower of cost or net realizable value. The cost of merchandise manufactured by our Woodhaven Furniture Industries operations is recorded at cost and includes overhead from production facilities, shipping costs and warehousing costs. The Company-operated stores begin depreciating merchandise at the earlier of twelve months and one day or when the item is leased and depreciate merchandise to a 0% salvage value over the lease agreement period when on lease, generally 12 to 24 months , and generally 36 months when not on lease. The Company’s Progressive Leasing segment, at which substantially all merchandise is on lease, depreciates merchandise generally over 12 months . Depreciation is accelerated upon early payout. The following is a summary of lease merchandise, net of accumulated depreciation and allowances: December 31, (In Thousands) 2017 2016 Merchandise on Lease $ 908,268 $ 786,936 Merchandise Not on Lease 243,867 212,445 Lease Merchandise, net of Accumulated Depreciation and Allowances $ 1,152,135 $ 999,381 The Company’s policies require weekly lease merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. In addition to monthly cycle counting, full physical inventories are generally taken at the fulfillment and manufacturing facilities annually 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 obsolete lease merchandise cannot be returned to vendors, its carrying amount 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 a provision for write-offs on the allowance method, which estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based on historical write-off experience. The provision for write-offs is included in operating expenses in the accompanying consolidated statements of earnings. |
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 |
Advertising | Advertising The Company expenses advertising costs as incurred. Advertising production costs are initially recognized as a prepaid advertising asset and are expensed when an advertisement appears for the first time. Total advertising costs amounted to $34.0 million , $40.8 million and $39.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and are classified within operating expenses in the consolidated statements of earnings. These advertising costs are shown net of cooperative advertising considerations received from vendors, which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products. The amount of cooperative advertising consideration recorded as a reimbursement of such advertising expense was $22.5 million , $22.2 million and $36.3 million in 2017 , 2016 and 2015 , respectively. The prepaid advertising asset was $1.4 million and $1.2 million at December 31, 2017 and 2016 , respectively, and is reported within prepaid expenses and other assets on the consolidated balance sheets. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based employee compensation plans, which are more fully described in Note 12 to these consolidated financial statements. The Company estimates the fair value for the options granted on the grant date using a Black-Scholes-Merton option-pricing model. The fair value of each share of restricted stock units ("RSUs"), restricted stock awards ("RSAs") and performance share units ("PSUs") awarded is equal to the market value of a share of the Company’s common stock on the grant date. |
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, RSUs, RSAs and PSUs (collectively, "share-based awards") as determined under the treasury stock method. The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2017 2016 2015 Weighted Average Shares Outstanding 70,837 72,354 72,568 Dilutive Effect of Share-Based Awards 1,284 659 475 Weighted Average Shares Outstanding Assuming Dilution 72,121 73,013 73,043 Approximately 140,000 , 939,000 and 460,000 weighted-average share-based awards were excluded from the computations of earnings per share assuming dilution during the years ended December 31, 2017 , 2016 and 2015 , respectively, as the awards would have been anti-dilutive for the periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company classifies highly liquid investments with maturity dates of three months or less when purchased as cash equivalents. The Company maintains its cash and cash equivalents in a limited number of banks. Bank balances typically exceed coverage provided by the Federal Deposit Insurance Corporation. However, due to the size and strength of the banks in which the balances are held, any exposure to loss is believed to be minimal. |
Investments | Investments At December 31, 2017 and 2016 , investments classified as held-to-maturity securities consisted of British pound-denominated notes issued by Perfect Home. The Perfect Home Notes ("Notes") consisted of outstanding principal and accrued interest of £15.1 million ( $20.4 million ) and £16.6 million ( $20.5 million ) at December 31, 2017 and 2016 , respectively. The Notes are classified as held-to-maturity securities because the Company has the positive intent and ability to hold the investments to maturity. The Perfect Home notes are carried at amortized cost in investments in the consolidated balance sheets. The British pound-denominated notes are remeasured into U.S. dollars at each period end with remeasurement gains and losses recorded as a component of other non-operating income (expense), net in the consolidated statements of earnings. The Notes matured on June 30, 2017. As a result of Perfect Home’s constrained liquidity, the Company ceased accruing additional interest income of the annualized 12% stated interest rate on the Notes effective April 1, 2017. On December 5, 2017, Perfect Home entered into an agreement with a third party to obtain alternative sources of senior debt financing. In connection with that transaction, the Company also entered into agreements with Perfect Home to extend and refinance its debt investment in Perfect Home with the following terms: (i) payment of £2.0 million of the outstanding Note balance due to the Company upon closing of the refinanced agreement, which was paid in December 2017 and reduced the outstanding investment balance recorded in the Company’s consolidated balance sheets; (ii) extension of the maturity date to the earlier of December 31, 2019 or the occurrence of certain events such as a sale of Perfect Home or initial public offering; and (iii) issuance of warrants to buy non-voting shares of Perfect Home stock with a purchase price of £0.00001 per share. The interest rate remains 12% under the refinanced agreement, which we believe approximates market rates for investments of similar credit quality. In accordance with the terms of the refinanced agreement, Perfect Home began making monthly interest payments on the Notes in January 2018. In light of the additional financing obtained by Perfect Home, which may lead to improvement in Perfect Home's future operating results and the Company's security interest, the Company believes no impairment has occurred as of December 31, 2017 . The Company continues to retain a subordinated security interest in the assets of Perfect Home, which consists primarily of outstanding loans receivable, merchandise inventory and cash. The Notes will remain on nonaccrual status until Perfect Home demonstrates it has the ability to make consistent payments on the remaining Note balance. If Perfect Home fails to execute on its business strategy to improve operating results, there could be a change in the valuation of the Notes that may result in an impairment loss in future periods. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and Company-operated stores, corporate receivables incurred during the normal course of business (primarily for in-transit credit card transactions, real estate leasing activities and vendor consideration) and franchisee obligations. Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2017 2016 Customers $ 48,661 $ 36,227 Corporate 23,431 26,375 Franchisee 27,795 33,175 $ 99,887 $ 95,777 The Company maintains an accounts receivable allowance, which primarily relates to its Progressive Leasing operations and its store-based operations. The Company’s policy for its Progressive Leasing segment is to accrue for uncollected amounts due based on historical collection experience. The provision is recognized as bad debt expense, which is classified in operating expenses within the consolidated statements of earnings. The Progressive Leasing segment writes-off lease receivables that are 120 days or more contractually past due. For the Company’s store-based operations, contractually required lease payments are accrued when due; however, they are not always collected and customers can terminate the lease agreements at any time. For customers that do not pay timely, the Company’s store-based operations generally focus on obtaining a return of the lease merchandise. Therefore the Company’s policy for its store-based operations is to accrue a provision for returns and uncollectible contractually due renewal payments based on historical collection experience, which is recognized as a reduction of lease revenues and fees. Store-based operations write-off lease receivables that are 60 days or more past due on pre-determined dates occurring twice monthly. |
Loans Receivable | Loans Receivable Gross loans receivable represents the principal balances of credit card charges at DAMI’s participating merchants that remain outstanding to cardholders, plus unpaid interest and fees due from cardholders. The allowances and unamortized fees represents an allowance for uncollectible amounts; merchant fee discounts, net of capitalized origination costs; promotional fee discounts; and deferred annual card fees. Loans acquired in the October 15, 2015 DAMI acquisition (the "Acquired Loans") were recorded at their estimated fair value at the acquisition date. The projected net cash flows from expected payments of principal, interest, fees and servicing costs and anticipated charge-offs were included in the determination of fair value; therefore, an allowance for loan losses and an amount for unamortized fees were not recognized for the Acquired Loans. The difference, or discount, between the expected cash flows to be received and the fair value of the Acquired Loans is accreted to interest and fees on loans receivable based on the effective interest method. At each period end, the Company evaluates the appropriateness of the accretable discount on the Acquired Loans based on actual and revised projected future cash receipts. Losses on loans receivable are recognized when they are incurred, which requires the Company to make its best estimate of probable losses inherent in the portfolio. The Company evaluates loans receivable collectively for impairment. The method for calculating the best estimate of probable losses takes into account the Company’s historical experience, adjusted for current conditions and the Company’s judgment concerning the probable effects of relevant observable data, trends and market factors. Economic conditions and loan performance trends are closely monitored to manage and evaluate exposure to credit risk. Trends in delinquency ratios are an indicator of credit risk within the loans receivable portfolio, including the migration of loans between delinquency categories over time (roll rates). Charge-off rates represent another indicator of the potential for future credit losses. The risk in the loans receivable portfolio is correlated with broad economic trends, such as unemployment rates, gross domestic product growth and gas prices, which can have a material effect on credit performance. To the extent that actual results differ from estimates of uncollectible loans receivable, the Company’s results of operations and liquidity could be materially affected. The Company calculates the allowance for loan losses based on actual delinquency balances and historical average loss experience on loans receivable by aging category for the prior eight quarters. The allowance for loan losses is maintained at a level considered adequate to cover probable losses of principal, interest and fees on active loans in the loans receivable portfolio. The adequacy of the allowance is evaluated at each period end. Delinquent loans receivable are those that are 30 days or more past due based on their contractual billing dates. The Company places loans receivable on nonaccrual status when they are greater than 90 days past due or upon notification of cardholder bankruptcy, death or fraud. The Company discontinues accruing interest and fees and amortizing merchant fee discounts and promotional fee discounts for loans receivable in nonaccrual status. Loans receivable are removed from nonaccrual status when cardholder payments resume, the loan becomes 90 days or less past due and collection of the remaining amounts outstanding is deemed probable. Payments received on nonaccrual loans are allocated according to the same payment hierarchy methodology applied to loans that are accruing interest. Loans receivable are charged off at the end of the month following the billing cycle in which the loans receivable become 120 days past due. DAMI extends or declines credit to an applicant through its bank partners based upon the applicant’s credit rating. |
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 15 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. The Company primarily develops software for use in its Progressive Leasing and store-based operations. The Company uses an agile development methodology in which feature-by-feature updates are made to its software. Costs are capitalized when management, with the relevant authority, authorizes and commits to funding a feature update and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalization of costs ceases when the feature update is substantially complete and ready for its intended use. Generally, the life cycle for each feature update implementation is one month. Gains and losses related to dispositions and retirements are recognized as incurred. Maintenance and repairs are also expensed as incurred, and leasehold improvements are capitalized. Depreciation expense for property, plant and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $54.8 million , $53.6 million and $52.0 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property, plant and equipment, was $11.5 million , $9.2 million and $7.4 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company assesses its long-lived assets other than goodwill and other indefinite-lived intangible assets for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. If it is determined that the carrying amount of an asset is not recoverable, the Company compares the carrying amount of the asset to its fair value as estimated using discounted expected future cash flows, market values or replacement values for similar assets. The amount by which the carrying amount exceeds the fair value of the asset, if any, is recognized as an impairment loss. |
Assets Held for Sale | Assets Held for Sale Certain properties, consisting of parcels of land and commercial buildings, met the held for sale classification criteria as of December 31, 2017 and 2016 . Assets held for sale are recorded at the lower of their carrying value or fair value less estimated cost to sell and are classified within prepaid expenses and other assets in the consolidated balance sheets. Depreciation is suspended on assets upon classification to held for sale. The carrying amount of the properties held for sale as of December 31, 2017 and 2016 was $10.1 million and $8.9 million , respectively. The Company estimated the fair values of real estate properties using the market values for similar properties. These properties are considered Level 2 assets as defined below. The Company recorded impairment charges on assets held for sale of $0.7 million , $5.8 million and $0.5 million during the years ended December 31, 2017 , 2016 and 2015 , respectively, in other operating (income) expense, net within the consolidated statements of earnings. These impairment charges related to the impairment of various parcels of land and buildings that the Company decided not to utilize for future expansion as well as the sale of the net assets of the HomeSmart disposal group in May 2016 as described below. Additionally, the Company recorded impairment charges on assets held for sale of $0.9 million during the year ended December 31, 2017 in restructuring expenses within the consolidated statements of earnings related to the impairment of land and buildings that the Company closed under the 2016 restructuring plan described in Note 10 to these consolidated financial statements. On May 13, 2016 , the Company sold its 82 remaining Company-operated HomeSmart stores for $35.0 million and ceased operations of that segment. The sale did not represent a strategic shift that would have a major effect on the Company’s operations and financial results and therefore the HomeSmart segment was not classified as discontinued operations. The cash proceeds were recorded in proceeds from dispositions of businesses and contracts, net in the consolidated statements of cash flows. During the year ended December 31, 2016, the Company recognized an impairment loss of $4.3 million on the disposition and recorded additional charges of $1.1 million related to exiting the HomeSmart business, primarily consisting of impairment charges on certain assets related to the division that were not included in the May 2016 disposition. The impairment loss and additional charges were recorded in other operating (income) expense, net in the consolidated statements of earnings. Gains and losses on the disposal of assets held for sale were not significant in 2017 and 2015 . The disposal of assets held for sale resulted in the recognition of net gains of $11.4 million in 2016 due mainly to the sale of the Company's former corporate headquarters building in January 2016 for cash of $13.6 million , resulting in a gain of $11.1 million . The cash proceeds were recorded in proceeds from sales of property, plant and equipment in the consolidated statements of cash flows and the gain was recorded in other operating (income) expense, net in the consolidated statements of earnings. |
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 amount of goodwill is not recoverable from future cash flows. The Company’s goodwill is not amortized but is subject to an impairment test at the reporting unit level annually as of October 1 and more frequently if events or circumstances indicate that impairment may have occurred. Factors which could necessitate an interim impairment assessment include a sustained decline in the Company’s stock price, prolonged negative industry or economic trends and significant underperformance relative to historical or projected future operating results. The Company completed its annual goodwill impairment test as of October 1, 2017 and determined that no impairment had occurred. The Company determined that there were no events that occurred or circumstances that changed in the fourth quarter of 2017 that would more likely than not reduce the fair value of a reporting unit below its carrying amount. |
Other Intangibles | Other Intangibles Other intangibles include favorable operating leases, customer relationships, customer lease contracts, non-compete agreements and reacquired franchise rights acquired in connection with store-based business acquisitions, including the acquisition of SEI. The favorable operating lease intangible asset is amortized to rent expense, which is recorded within operating expenses in the consolidated statements of earnings, on a straight-line basis over the remaining lease terms. The customer relationship intangible asset is amortized on a straight-line basis over a two -year estimated useful life. The customer lease contract intangible asset is amortized on a straight-line basis over a one -year estimated useful life. The non-compete intangible asset is amortized on a straight-line basis over the life of the agreement (generally one to five years). Acquired franchise rights are amortized on a straight-line basis over the unexpired life of the franchisee’s ten year license term. Other intangibles also include the identifiable intangible assets acquired as a result of the DAMI and Progressive Leasing acquisitions, which the Company recorded at the estimated fair value as of the respective acquisition dates. As more fully described in Note 2 to these consolidated financial statements, the Company amortizes the definite-lived intangible assets acquired as a result of the DAMI acquisition on a straight-line basis over five years. The Company amortizes the definite-lived intangible assets acquired as a result of the Progressive Leasing acquisition on a straight-line basis over periods ranging from one to three years for customer lease contracts and internal use software and ten to 12 years for technology and merchant relationships. Indefinite-lived intangible assets represent the value of trade names acquired as part of the Progressive Leasing acquisition. At the date of acquisition, the Company determined that no legal, regulatory, contractual, competitive, economic or other factors limit the useful life of the trade name intangible asset and, therefore, the useful life is considered indefinite. The Company reassesses this conclusion quarterly and continues to believe the useful life of this asset is indefinite. Indefinite-lived intangible assets are not amortized but are subject to an impairment test annually and when events or circumstances indicate that impairment may have occurred. The Company performs the impairment test for its indefinite-lived intangible assets on October 1 by comparing the asset’s fair value to its carrying amount. The Company estimates the fair value based on projected discounted future cash flows under a relief from royalty method. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying amount. The Company completed its indefinite-lived intangible asset impairment test as of October 1, 2017 and determined that no impairment had occurred. |
Insurance Reserves | Insurance Reserves Estimated insurance reserves are accrued primarily for workers compensation, vehicle liability, general liability and group health insurance benefits provided to the Company’s employees. Insurance reserves are recorded within accrued insurance costs in accounts payable and accrued expense in the consolidated balance sheets. Estimates for these insurance reserves are made based on actual reported but unpaid claims and actuarial analysis of the projected claims run off for both reported and incurred but not reported claims. This analysis is based upon an assessment of the likely outcome or historical experience. The Company makes periodic prepayments to its insurance carrier to cover the projected claims run off for both reported and incurred but not reported claims, considering its retention or stop loss limits. |
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 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 updated for changes in estimates. 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, which are included in accounts payable and accrued expenses in the consolidated balance sheets, amounted to approximately $2.5 million as of December 31, 2017 and 2016 , respectively. The capitalized cost is depreciated over the useful life of the related asset. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company measures 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. The fair value for the loans receivable, net of allowances, and any revolving credit borrowings also approximate their carrying amounts. |
Foreign Currency | Foreign Currency The financial statements of the Company’s Canadian subsidiary are translated from the Canadian dollar 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 the subsidiary are recorded in accumulated other comprehensive income as a component of shareholders’ equity. Foreign currency remeasurement gains and losses are recorded as a component of other non-operating income (expense), net in the consolidated statements of earnings and were gains of approximately $2.1 million for the year ended December 31, 2017 and losses of $3.7 million and $2.5 million for the years ended December 31, 2016 and 2015 , respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Share-Based Payments. In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting . The objective of the update is to simplify the accounting for employee share-based awards, including the income tax effects of awards and the classification on the statement of cash flows. The Company adopted this ASU in the first quarter of 2017. The ASU requires excess tax benefits and deficiencies that result from the difference between what is deductible for tax purposes and the compensation cost recognized for financial reporting purposes to be recognized prospectively as income tax benefit or expense in the statement of earnings in the reporting period in which they occur. Previously, the excess tax benefits and deficiencies were recognized in additional paid-in capital. During the year ended December 31, 2017 , the recognition of tax benefits on exercised options and vested restricted stock increased the Company's income tax benefit by $1.1 million . The ASU also requires excess tax benefits and deficiencies to be classified as an operating activity on the statement of cash flows. Prior to the update, excess tax benefits and deficiencies were classified as a financing activity. This amendment has been adopted by the Company on a retrospective basis and as a result we have reclassified $0.7 million and $0.3 million of excess tax deficiencies and benefits, respectively, previously disclosed as a financing activity in the statement of cash flows to operating activities for the years ended December 31, 2016 and December 31, 2015 , respectively. The ASU requires cash paid by the Company when directly withholding shares for tax-withholding purposes to be classified retrospectively as a financing activity on the statement of cash flows. As a result, cash outflows of $2.5 million and $0.4 million representing cash payments to tax authorities for shares withheld during the years ended December 31, 2016 and December 31, 2015 , respectively, were reclassified from operating activities to financing activities. The Company elected to continue to estimate forfeitures in determining the amount of stock compensation expense. Pending Adoption Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . ASU 2014-09 replaces substantially all existing revenue recognition guidance with a single, comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods and services to customers at the amount to which it expects to be entitled in exchange for transferring those goods or services. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09, and, as a result of a subsequent update, it will be effective in annual reporting periods, and interim periods within that period, beginning after December 15, 2017. While the majority of the Company’s revenues are related to leasing activities and not within the scope of ASU 2014-09, certain of the Company’s revenue streams related to its franchise business will result in changes to the timing of revenue recognition as well as the presentation of certain revenues. The standard will change the timing of recognition of pre-opening revenue from franchisees. The Company’s current accounting policy is to recognize initial franchise pre-opening revenue when earned, which is generally when a new store opens. Under the new standard, the initial franchise pre-opening services are not distinct from the continuing franchise services as they would not transfer a benefit to the franchisee directly without use of the franchise license and should be bundled with the franchise license as a single performance obligation. As a result, the pre-opening revenues will be recognized from the store opening date over the remaining life of the franchise license term. The standard will change the presentation of advertisement fees charged to franchisees. Advertising fees charged to franchisees are currently recorded as a reduction to advertising expense, which is classified within operating expenses in the consolidated statements of earnings. The new standard will result in the presentation of advertisement fees charged to franchisees to be reported on a gross basis within franchise royalties and fee revenue in the consolidated statements of earnings. The Company does not currently believe these matters will result in a material impact to the consolidated statements of earnings. The changes associated with the adoption of ASU 2014-09 will not require significant changes to controls and procedures around the revenue recognition process. The Company adopted the standard on January 1, 2018 using the modified retrospective approach and recorded an adjustment to opening retained earnings and deferred revenue of $2.4 million on January 1, 2018. Business Combinations . In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business . The objective of the update is to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. Companies must use a prospective approach to adopt ASU 2017-01, which is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The Company believes the new standard will result in certain store acquisitions (disposals) which do not transfer a substantive process to be accounted for as asset acquisitions (disposals). The Company has identified a separate "expanded customer base" intangible asset, which will be separately valued and recorded in asset acquisitions as a result of the new definition of a business standard. The "expanded customer base" represents the estimated fair value of the acquisition purchase price paid by the Company for the ability to advertise and execute lease agreements with a larger pool of customers in the respective markets. This intangible asset is currently subsumed in goodwill in a business combination. In situations in which the purchase price exceeds the fair value of the assets acquired, any remaining economic goodwill will be allocated on a relative fair value basis to all acquired assets, including merchandise inventory. In situations in which the fair value of the assets acquired exceeds the purchase price, the acquisition will be treated as a bargain purchase with the excess allocated on a relative fair value basis to all assets. This will result in the recognition of the initial asset bases at less than fair value, including merchandise inventory. The Company routinely enters into arrangements to acquire lease merchandise inventory and the related customer lease agreements of a store; however, the arrangement does not transfer a substantive process. These acquisitions will result in all of the purchase price getting assigned to definite lived assets, instead of a portion going to goodwill, which will result in higher depreciation and amortization expense under the new standard. Transactions that will now be accounted for as asset disposals, instead of business disposals, will not result in the write-off of goodwill as part of the disposal. The Company will adopt the new standard in the first quarter of 2018. The impact of this new standard on the Company's consolidated statements of earnings will depend on the quantity and magnitude of future acquisitions (disposals) that will be treated as an asset acquisition (or disposal) in accordance with ASU 2017-01. Leases. In February 2016, the FASB issued ASU 2016-02, Leases , which would require lessees to recognize assets and liabilities for most leases and would change certain aspects of today’s lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. Companies must use a modified retrospective approach to adopt ASU 2016-02. A majority of the Company’s revenue generating activities will be within the scope of ASU 2016-02. The Company has preliminarily determined that the new standard will not materially impact the timing of revenue recognition. The new standard will likely result in the Company classifying bad debt expense incurred within its Progressive Leasing segment as a reduction of lease revenue and fees within the consolidated statements of earnings. The new standard will impact the Company as a lessee by requiring substantially all of its operating leases to be recognized on the balance sheet as a right-to-use asset and lease liability. The Company is currently quantifying the impacts of its operating leases to the consolidated financial statements, as well as evaluating the other impacts of adopting ASU 2016-02. The Company intends to adopt the new standard in the first quarter of 2019. Financial Instruments - Credit Losses . In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The main objective of the update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by companies at each reporting date. For trade and other receivables, held to maturity debt securities and other instruments, companies will be required to use a new forward-looking "expected losses" model that generally will result in the recognition of allowances for losses earlier than under current accounting guidance. The standard will be adopted on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company has not yet determined the potential effects of adopting ASU 2016-13 on its consolidated financial statements. |
Business and Summary of Signi26
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedules of Company Operated Store Activity | The following table presents active doors for Progressive Leasing: For the Year Ended December 31 (Unaudited) 2017 2016 2015 Progressive Leasing Active Doors 1 26,861 21,840 16,947 1 An active door is a retail store location at which at least one virtual lease-to-own transaction has been completed during the trailing twelve month period. The following table presents store count by ownership type for the Aaron’s Business operations: Stores at December 31 (Unaudited) 2017 2016 2015 Company-Operated Stores Aaron’s Branded stores 1,175 1,165 1,223 HomeSmart — — 82 Total Company-Operated Stores 1,175 1,165 1,305 Franchised Stores 1 551 699 734 Systemwide Stores 1,726 1,864 2,039 1 As of December 31, 2017 , 2016 and 2015 , the Company has awarded 580 , 749 and 813 franchises, respectively. |
Allowance for Lease Merchandise | The following table shows the components of the allowance for lease merchandise write-offs: Year ended December 31, (In Thousands) 2017 2016 2015 Beginning Balance $ 33,399 $ 33,405 $ 27,573 Merchandise Written off, net of Recoveries (143,230 ) (134,110 ) (130,548 ) Provision for Write-offs 145,460 134,104 136,380 Ending Balance $ 35,629 $ 33,399 $ 33,405 |
Calculation of Dilutive Stock Awards | The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2017 2016 2015 Weighted Average Shares Outstanding 70,837 72,354 72,568 Dilutive Effect of Share-Based Awards 1,284 659 475 Weighted Average Shares Outstanding Assuming Dilution 72,121 73,013 73,043 |
Accounts Receivable Net of Allowances | Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2017 2016 Customers $ 48,661 $ 36,227 Corporate 23,431 26,375 Franchisee 27,795 33,175 $ 99,887 $ 95,777 The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2017 2016 Credit Card Loans 1 $ 89,728 $ 64,794 Acquired Loans 2 16,213 33,840 Loans Receivable, Gross 105,941 98,634 Allowance for Loan Losses (11,454 ) (6,624 ) Unamortized Fees (8,375 ) (7,206 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 86,112 $ 84,804 1 "Credit Card Loans" are loans originated after the 2015 acquisition of DAMI. 2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of DAMI. |
Allowance for Doubtful Accounts | The following table shows the components of the accounts receivable allowance: Year Ended December 31, (In Thousands) 2017 2016 2015 Beginning Balance $ 35,690 $ 34,861 $ 27,401 Accounts Written Off, net of Recoveries (192,133 ) (167,094 ) (155,651 ) Accounts Receivable Provision 203,389 167,923 163,111 Ending Balance $ 46,946 $ 35,690 $ 34,861 The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the years ended December 31 : Year Ended December 31, (In Thousands) 2017 2016 2015 Bad Debt Expense 170,574 128,333 122,184 Provision for Returns and Uncollected Renewal Payments 32,815 39,590 40,927 Accounts Receivable Provision $ 203,389 $ 167,923 $ 163,111 |
Loan Portfolio Credit Quality Indicators | Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2017 and 2016 by Fair Isaac and Company (FICO) score as determined at the time of loan origination: December 31, FICO Score Category 2017 2016 600 or Less 1.7 % 1.8 % Between 600 and 700 76.5 % 78.1 % 700 or Greater 21.8 % 20.1 % |
Schedule of Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: December 31, (In Thousands) 2017 2016 Prepaid Expenses $ 31,509 $ 21,769 Prepaid Insurance 36,735 53,716 Assets Held for Sale 10,118 8,866 Deferred Tax Asset 11,589 5,912 Other Assets 26,548 18,881 $ 116,499 $ 109,144 |
Schedule of Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: December 31, (In Thousands) 2017 2016 Accounts Payable $ 80,821 $ 71,941 Accrued Insurance Costs 41,680 47,649 Accrued Salaries and Benefits 46,511 41,612 Accrued Real Estate and Sales Taxes 31,054 32,986 Deferred Rent 29,912 31,859 Other Accrued Expenses and Liabilities 74,832 71,719 $ 304,810 $ 297,766 |
Acquisitions - Acquisitions (Ta
Acquisitions - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the summary of the assets acquired and liabilities assumed as of the acquisition date, as well as the acquisition accounting adjustments. The final acquisition accounting adjustments did not have a significant effect on the consolidated statements of earnings. (In Thousands) Amounts Recognized as of Acquisition Date 1 Acquisition Accounting Adjustments 2 Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 54,900 $ — $ 54,900 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 4,185 — 4,185 Loans Receivable 3 89,186 (60 ) 89,126 Receivables 45 — 45 Property, Plant and Equipment 2,754 — 2,754 Other Intangibles 4 3,400 (500 ) 2,900 Income Tax Receivable 728 — 728 Prepaid Expenses and Other Assets 671 — 671 Deferred Income Tax Assets 375 2,115 2,490 Total Identifiable Assets Acquired 101,344 1,555 102,899 Accounts Payable and Accrued Expenses (1,709 ) (1,265 ) (2,974 ) Debt (45,025 ) — (45,025 ) Total Liabilities Assumed (46,734 ) (1,265 ) (47,999 ) Goodwill 290 (290 ) — Net Assets Acquired $ 54,900 $ — $ 54,900 1 As previously reported in the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. 2 The acquisition accounting adjustments primarily relate to the resolution of certain income tax-related matters and contingencies that existed as of the acquisition date. 3 Contractually required amounts due at the acquisition date were $94.2 million . 4 Identifiable intangible assets are further disaggregated in the table below. The following table presents the summary of the preliminary estimated fair value of the assets acquired and liabilities assumed in the SEI acquisition as of the July 27, 2017 acquisition date: (In Thousands) Amounts Recognized as of Acquisition Date 1 Acquisition Accounting Adjustments 2 Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 140,000 $ — $ 140,000 Settlement of Pre-existing Accounts Receivable SEI owed Aaron's, Inc. 3,452 — 3,452 Reimbursement for Insurance Costs (100 ) — (100 ) Working Capital Adjustment — 188 188 Consideration Transferred 143,352 188 143,540 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 34 — 34 Receivables 1,448 — 1,448 Lease Merchandise 40,941 — 40,941 Property, Plant and Equipment 8,279 553 8,832 Other Intangibles 3 16,472 (2,894 ) 13,578 Prepaid Expenses and Other Assets 440 — 440 Total Identifiable Assets Acquired 67,614 (2,341 ) 65,273 Accounts Payable and Accrued Expenses (5,470 ) (1,064 ) (6,534 ) Customer Deposits and Advance Payments (2,500 ) — (2,500 ) Capital Leases (4,630 ) 116 (4,514 ) Total Liabilities Assumed (12,600 ) (948 ) (13,548 ) Goodwill 4 88,338 3,477 91,815 Net Assets Acquired $ 55,014 $ (3,289 ) $ 51,725 1 As previously reported in the notes to the condensed consolidated financial statements as of September 30, 2017. 2 The acquisition accounting adjustments relate to finalizing information that existed as of the acquisition date regarding the fair value of vehicles under capital leases. Additionally, the Company obtained further information regarding the fair value of assumed favorable and unfavorable property operating leases based on comparable market terms of similar leases based on information that existed as of the acquisition date, which the Company expects to complete prior to the one year anniversary date of the acquisition. 3 Identifiable intangible assets are further disaggregated in the table set forth below. 4 The total goodwill recognized in conjunction with the SEI acquisition, all of which is expected to be deductible for tax purposes, has been assigned to the Aaron’s Business operating segment. The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, primarily due to synergies created from the expected future benefits to the Company’s omnichannel platform, implementation of the Company’s operational capabilities, expected inventory supply chain synergies between the Aaron’s Business and Progressive Leasing, and control of the Company’s brand name in new geographic markets. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The estimated intangible assets attributable to the SEI acquisition are comprised of the following: Fair Value (in thousands) Weighted Average Life (in years) Non-compete Agreements $ 1,244 5.0 Customer Lease Contracts 2,130 1.0 Customer Relationships 3,176 2.0 Reacquired Franchise Rights 3,640 4.1 Favorable Operating Leases 3,388 8.5 Total Acquired Intangible Assets 1 $ 13,578 1 Acquired definite-lived intangible assets have a total weighted average life of 4.3 years. The intangible assets attributable to the DAMI acquisition are comprised of the following: Fair Value (in thousands) Weighted Average Life (in years) Technology $ 2,550 5.0 Non-compete Agreements 350 5.0 Total Acquired Intangible Assets $ 2,900 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table summarizes information related to indefinite-lived intangible assets at December 31 : December 31, (In Thousands) 2017 2016 Trade Name $ 53,000 $ 53,000 Goodwill 622,948 526,723 Indefinite-lived Intangible Assets $ 675,948 $ 579,723 |
Summary of Carrying Value of Goodwill by Operating Segment | The following table provides information related to the carrying amount of goodwill by operating segment: (In Thousands) Progressive Leasing Aaron’s Business DAMI Total Balance at January 1, 2016 $ 290,605 $ 248,580 $ 290 $ 539,475 Acquisitions — 4,345 — 4,345 Disposals, Currency Translation and Other Adjustments (1,804 ) (15,173 ) — (16,977 ) Acquisition Accounting Adjustments — 170 (290 ) (120 ) Balance at December 31, 2016 288,801 237,922 — 526,723 Acquisitions — 97,460 — 97,460 Disposals, Currency Translation and Other Adjustments — (1,271 ) — (1,271 ) Acquisition Accounting Adjustments — 36 — 36 Balance at December 31, 2017 $ 288,801 $ 334,147 $ — $ 622,948 |
Summary of Identifiable Intangible Assets | The following table summarizes information related to definite-lived intangible assets at December 31 : 2017 2016 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal Use Software $ 14,000 $ (14,000 ) $ — $ 14,000 $ (12,665 ) $ 1,335 Technology 68,550 (25,639 ) 42,911 68,550 (18,529 ) 50,021 Merchant Relationships 181,000 (56,018 ) 124,982 181,000 (40,934 ) 140,066 Other Intangibles 1 19,558 (4,900 ) 14,658 6,581 (3,331 ) 3,250 Total $ 283,108 $ (100,557 ) $ 182,551 $ 270,131 $ (75,459 ) $ 194,672 1 Other intangibles primarily include favorable operating leases, customer relationships, customer lease contracts, non-compete agreements and reacquired franchise rights. |
Estimated Future Amortization Expense | As of December 31, 2017 , estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2018 $ 28,018 2019 25,317 2020 24,037 2021 22,684 2022 22,547 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes financial liabilities measured at fair value on a recurring basis: December 31, 2017 December 31, 2016 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ (12,927 ) $ — $ — $ (11,978 ) $ — |
Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes non-financial assets measured at fair value on a nonrecurring basis: December 31, 2017 December 31, 2016 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Held for Sale $ — $ 10,118 $ — $ — $ 8,866 $ — |
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: December 31, 2017 December 31, 2016 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Perfect Home Notes 1 $ — $ — $ 20,385 $ — $ — $ 20,519 Fixed-Rate Long Term Debt 2 — (273,476 ) — — (368,408 ) — 1 The Perfect Home Notes are carried at cost, which we believe approximates fair value. The Company periodically reviews the carrying amount utilizing company-specific transactions or changes in Perfect Home’s financial performance to determine if the Notes are impaired. On December 5, 2017, Perfect Home entered into an agreement with a third party to obtain alternative sources of senior debt financing. In light of the additional financing obtained by Perfect Home and the Company's subordinated security interest in the assets of Perfect Home, which consists primarily of outstanding loans receivable, merchandise inventory and cash, the Company has estimated that the carrying amount of its Perfect Home notes approximates fair value and, therefore, no impairment has been considered to have occurred as of December 31, 2017 . See Note 1 to these consolidated financial statements for further details regarding the Perfect Home refinancing agreement. 2 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 amount of fixed-rate long term debt was $265.0 million and $350.0 million at December 31, 2017 and 2016 , respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following is a summary of the Company’s property, plant, and equipment: December 31, (In Thousands) 2017 2016 Land $ 19,768 $ 22,843 Buildings and Improvements 67,053 69,935 Leasehold Improvements and Signs 69,407 75,786 Fixtures and Equipment 1 266,761 247,565 Assets Under Capital Leases: with Related Parties 4,032 10,573 with Unrelated Parties 12,426 11,063 Construction in Progress 10,863 4,568 450,310 442,333 Less: Accumulated Depreciation and Amortization (242,623 ) (231,062 ) $ 207,687 $ 211,271 1 Includes internal-use software development costs of $86.2 million and $73.0 million as of December 31, 2017 and 2016 , respectively. Accumulated amortization of internal-use software development costs amounted to $42.6 million and $31.1 million as of December 31, 2017 and 2016 , respectively. |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of the Components of Loans Receivable, Net | Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2017 2016 Customers $ 48,661 $ 36,227 Corporate 23,431 26,375 Franchisee 27,795 33,175 $ 99,887 $ 95,777 The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2017 2016 Credit Card Loans 1 $ 89,728 $ 64,794 Acquired Loans 2 16,213 33,840 Loans Receivable, Gross 105,941 98,634 Allowance for Loan Losses (11,454 ) (6,624 ) Unamortized Fees (8,375 ) (7,206 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 86,112 $ 84,804 1 "Credit Card Loans" are loans originated after the 2015 acquisition of DAMI. 2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of DAMI. |
Aging of the Loans Receivable Balance | Included in the table below is an aging of the loans receivable, gross balance: (Dollar Amounts in Thousands) December 31, Aging Category 1 2017 2016 30-59 Days Past Due 7.1 % 6.8 % 60-89 Days Past Due 3.6 % 3.2 % 90 or more Days Past Due 4.1 % 4.3 % Past Due Loans Receivable 14.8 % 14.3 % Current Loans Receivable 85.2 % 85.7 % Balance of Loans Receivable on Nonaccrual Status $ 2,016 $ 1,072 Balance of Loans Receivable 90 or More Days Past Due and Still Accruing Interest and Fees $ — $ — 1 This aging is based on the contractual amounts outstanding for each loan as of period end, and does not reflect the fair value adjustments for the Acquired Loans. |
Allowance for Loan Losses | The table below presents the components of the allowance for loan losses: December 31, (In Thousands) 2017 2016 Beginning Balance 1 $ 6,624 $ 937 Provision for Loan Losses 20,973 11,251 Charge-offs (16,852 ) (5,675 ) Recoveries 709 111 Ending Balance $ 11,454 $ 6,624 1 The Company acquired DAMI on October 15, 2015 and recorded $89.1 million of loans receivable as of the acquisition date. No corresponding allowance for loan losses was recorded as the loans receivable were established at fair value in acquisition accounting. |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Company's Credit Facilities | Following is a summary of the Company’s debt, net of unamortized debt issuance costs: December 31, (In Thousands) 1 2017 2016 DAMI Credit Facility $ — $ 47,302 Revolving Facility — — Senior Unsecured Notes, 3.95%, Due in Installments through April 2018 24,994 49,975 Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 239,784 299,562 Term Loan, Due in Installments through September 2022 96,272 94,626 Capital Lease Obligation: with Related Parties 1,314 3,095 with Unrelated Parties 6,434 3,269 Total Debt 368,798 497,829 Less: Current Maturities 97,192 146,515 Long-Term Debt $ 271,606 $ 351,314 1 Total debt as of December 31, 2017 includes unamortized debt issuance costs of $1.5 million . The Company |
Future Maturities of Long Term Debt and Capital Lease Obligations | Future principal maturities under the Company’s debt and capital lease obligations are as follows: (In Thousands) 2018 $ 97,556 2019 72,768 2020 71,670 2021 70,693 2022 57,561 Thereafter — Total $ 370,248 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | Following is a summary of the Company’s income tax (benefit) expense: Year Ended December 31, (In Thousands) 2017 2016 2015 Current Income Tax Expense: Federal $ (3,530 ) $ 103,993 $ 32,999 State 9,772 10,308 5,442 6,242 114,301 38,441 Deferred Income Tax (Benefit) Expense: Federal (60,547 ) (33,470 ) 35,413 State 1,346 (1,692 ) 3,557 (59,201 ) (35,162 ) 38,970 Income Tax (Benefit) Expense $ (52,959 ) $ 79,139 $ 77,411 |
Components of Deferred Income Tax Liabilities and Assets | Significant components of the Company’s deferred income tax liabilities and assets are as follows: December 31, (In Thousands) 2017 2016 Deferred Tax Liabilities: Lease Merchandise and Property, Plant and Equipment $ 122,155 $ 185,891 Goodwill and Other Intangibles 37,080 52,135 Investment in Partnership 107,173 96,291 Other, Net 2,074 1,619 Total Deferred Tax Liabilities 268,482 335,936 Deferred Tax Assets: Accrued Liabilities 25,509 33,243 Advance Payments 8,199 13,087 Other, Net 23,771 20,277 Total Deferred Tax Assets 57,479 66,607 Less Valuation Allowance — (875 ) Net Deferred Tax Liabilities $ 211,003 $ 270,204 |
Effective Tax Rate Differs from Statutory United States Federal Income Tax Rate | The Company’s effective tax rate differs from the statutory United States Federal income tax rate as follows: Year Ended December 31, 2017 2016 2015 Statutory Rate 35.0 % 35.0 % 35.0 % Increases (Decreases) in United States Federal Taxes Resulting From: State Income Taxes, net of Federal Income Tax Benefit 2.7 2.6 2.7 Federal Tax Credits (0.8 ) (1.1 ) (0.5 ) Change in Valuation Allowance (0.4 ) — — Tax Act Enactment - Remeasurement of net Deferred Tax Liabilities (58.2 ) — — Other, net (0.4 ) (0.3 ) (0.9 ) Effective Tax Rate (22.1 )% 36.2 % 36.3 % |
Summary of Activity Related to Uncertain Tax Positions | The following table summarizes the activity related to the Company’s uncertain tax positions: Year Ended December 31, (In Thousands) 2017 2016 2015 Balance at January 1, $ 2,594 $ 3,561 $ 2,644 Additions Based on Tax Positions Related to the Current Year 456 258 331 Additions for Tax Positions of Prior Years 232 293 1,176 Prior Year Reductions (236 ) (776 ) (1 ) Statute Expirations (346 ) (609 ) (589 ) Settlements (431 ) (133 ) — Balance at December 31, $ 2,269 $ 2,594 $ 3,561 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [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, 2017 are as follows: (In Thousands) Total 2018 $ 107,038 2019 91,317 2020 77,056 2021 58,282 2022 42,046 Thereafter 81,284 $ 457,023 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges Activity | The following table summarizes the balances of the accruals for both programs, which are recorded in accounts payable and accrued expenses in the consolidated balance sheets, and the activity for the years ended December 31, 2017 and December 31, 2016 : (In Thousands) Contractual Lease Obligations Severance Total Balance at January 1, 2016 $ — $ — $ — Charges 11,830 3,883 15,713 Adjustments 1 (241 ) — (241 ) Restructuring Charges 11,589 3,883 15,472 Payments (1,006 ) (1,804 ) (2,810 ) Balance at December 31, 2016 10,583 2,079 12,662 Charges 13,501 3,176 16,677 Adjustments 1 (69 ) — (69 ) Restructuring Charges 13,432 3,176 16,608 Payments (11,578 ) (2,952 ) (14,530 ) Balance at December 31, 2017 $ 12,437 $ 2,303 $ 14,740 1 Adjustments relate to changes in sublease assumptions and interest accretion. The following table summarizes restructuring charges by segment for the years ended December 31, 2017 and December 31, 2016 : Year Ended December 31, 2017 Year Ended December 31, 2016 (In Thousands) Aaron’s Business DAMI 1 Total Aaron’s Business Total Contractual Lease Obligations $ 13,432 $ — $ 13,432 $ 11,589 $ 11,589 Severance 2,705 471 3,176 3,883 3,883 Fixed Asset Impairment and Other 1,386 — 1,386 4,746 4,746 Total Restructuring Expense $ 17,523 $ 471 $ 17,994 $ 20,218 $ 20,218 1 Restructuring charges for DAMI relate primarily to severance and other costs related to the segment’s relocation of its headquarters. Future DAMI restructuring charges are expected to be immaterial. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options, Valuation Assumptions | The weighted-average fair value of options granted and the weighted-average assumptions used in the Black-Scholes-Merton option pricing model for such grants were as follows: 2017 2016 2015 Dividend Yield 0.4 % 0.4 % 0.3 % Expected Volatility 32.8 % 34.2 % 28.9 % Risk-free Interest Rate 1.9 % 1.3 % 1.6 % Expected Term (in years) 5.3 5.3 5.2 Weighted-average Fair Value of Stock Options Granted $ 8.55 $ 7.10 $ 8.41 |
Summary Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2017 : Options Outstanding Options Exercisable Range of Exercise Number Outstanding Weighted Average Remaining Contractual Life (in Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $10.01-15.00 61 0.79 $ 14.11 61 $ 14.11 15.01-20.00 49 2.15 19.92 49 19.92 20.01-25.00 586 8.14 22.67 191 22.73 25.01-30.00 780 8.37 27.50 244 28.09 30.01-32.20 176 7.06 32.10 120 32.06 10.01-32.20 1,652 7.69 25.56 665 25.39 |
Summary of Stock Option Activity | The table below summarizes option activity for the year ended December 31, 2017 : Options (In Thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Weighted Average Fair Value Outstanding at January 1, 2017 1,407 $ 24.21 Granted 518 27.18 Exercised (184 ) 18.83 Forfeited/expired (89 ) 27.52 Outstanding at December 31, 2017 1,652 25.56 7.69 $ 23,607 $ 8.12 Expected to Vest at December 31, 2017 894 25.65 8.56 12,694 7.95 Exercisable at December 31, 2017 665 25.39 6.36 9,616 8.35 |
Summary of Restricted Stock Activity | The following table summarizes information about restricted stock activity during 2017 : Restricted Stock (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2017 953 $ 27.45 Granted 375 29.27 Vested (325 ) 28.09 Forfeited (56 ) 27.27 Non-vested at December 31, 2017 947 1 27.96 |
Summary of Performance Share Units | The following table summarizes information about performance share unit activity during 2017 : Performance Share Units (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2017 693 $ 25.67 Granted 479 27.00 Vested (269 ) 26.51 Forfeited/unearned (81 ) 25.74 Non-vested at December 31, 2017 822 26.31 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations | Year Ended December 31, (In Thousands) 2017 2016 2015 Revenues: Progressive Leasing $ 1,566,413 $ 1,237,597 $ 1,049,681 Aaron’s Business 1,782,370 1,946,039 2,127,230 DAMI 1 34,925 24,080 2,845 Total Revenues from External Customers $ 3,383,708 $ 3,207,716 $ 3,179,756 Earnings (Loss) Before Income Tax (Benefit) Expense: Progressive Leasing $ 140,224 $ 104,686 $ 54,525 Aaron’s Business 110,642 123,009 160,559 DAMI (11,289 ) (9,273 ) (1,964 ) Total Earnings Before Income Tax (Benefit) Expense $ 239,577 $ 218,422 $ 213,120 1 Represents interest and fees on loans receivable and excludes the effect of interest expense. Corporate-related assets that benefit multiple segments are reported as other assets in the table below. December 31, (In Thousands) 2017 2016 Assets: Progressive Leasing $ 1,022,413 $ 919,487 Aaron’s Business 1 1,261,234 1,199,213 DAMI 108,306 102,958 Other 300,311 394,078 Total Assets $ 2,692,264 $ 2,615,736 Assets From Canadian Operations (included in totals above): Aaron’s Business $ 20,223 $ 17,199 1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the consolidated balance sheets of $16.3 million and $14.3 million as of December 31, 2017 and 2016 , respectively. Year Ended December 31, (In Thousands) 2017 2016 2015 Depreciation and Amortization 1 : Progressive Leasing $ 29,048 $ 30,727 $ 28,870 Aaron’s Business 52,251 50,658 51,115 DAMI 1,273 993 218 Total Depreciation and Amortization $ 82,572 $ 82,378 $ 80,203 Interest Expense: Progressive Leasing $ 18,577 $ 20,042 $ 21,959 Aaron’s Business (2,366 ) (768 ) 616 DAMI 4,327 4,116 764 Total Interest Expense $ 20,538 $ 23,390 $ 23,339 Capital Expenditures: Progressive Leasing $ 8,213 $ 6,084 $ 8,175 Aaron’s Business 48,335 50,582 52,342 DAMI 1,425 787 40 Total Capital Expenditures $ 57,973 $ 57,453 $ 60,557 Revenues From Canadian Operations (included in totals above): Aaron’s Business $ 18,256 $ 12,434 $ 3,431 |
Quarterly Financial Informati38
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | NOTE 15: QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (In Thousands, Except Per Share Data) First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2017 Revenues $ 844,554 $ 815,644 $ 838,883 $ 884,627 Gross Profit * 365,920 352,639 356,743 383,574 Earnings Before Income Taxes 82,623 56,995 39,221 60,738 Net Earnings 53,300 36,335 25,341 177,560 Earnings Per Share 0.75 0.51 0.36 2.51 Earnings Per Share Assuming Dilution 0.74 0.51 0.35 2.46 Year Ended December 31, 2016 Revenues $ 854,427 $ 789,353 $ 768,982 $ 794,954 Gross Profit * 374,268 352,576 332,487 339,599 Earnings Before Income Taxes 79,728 61,124 45,282 32,288 Net Earnings 49,687 38,501 29,464 21,631 Earnings Per Share 0.68 0.53 0.41 0.30 Earnings Per Share Assuming Dilution 0.68 0.53 0.40 0.30 * Gross profit is the sum of lease revenues and fees, retail sales, non-retail sales, and interest and fees on loans receivable less retail cost of sales, non-retail cost of sales, depreciation of lease merchandise, provision for write-offs o |
Business and Summary of Signi39
Business and Summary of Significant Accounting Policies - Store Count by Ownership Type (Details) | 12 Months Ended | ||
Dec. 31, 2017transactionstore | Dec. 31, 2016store | Dec. 31, 2015store | |
Franchisor Disclosure [Line Items] | |||
Franchises granted (in number of stores) | 580 | 749 | 813 |
Operating Segments | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 1,175 | 1,165 | 1,305 |
Operating Segments | Progressive Leasing | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 26,861 | 21,840 | 16,947 |
Virtual lease to own transactions completed (at least) | transaction | 1 | ||
Operating Segments | Aaron’s Branded stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 1,175 | 1,165 | 1,223 |
Operating Segments | HomeSmart | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 0 | 0 | 82 |
Operating Segments | Franchised Stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 551 | 699 | 734 |
Operating Segments | Systemwide Stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 1,726 | 1,864 | 2,039 |
Variable Interest Entity | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 18 |
Business and Summary of Signi40
Business and Summary of Significant Accounting Policies - Interest and Fees on Loans Receivable (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, merchant fee, percentage, promotional interest period one (in months) | 6 months |
Credit terms, merchant fee, percentage, promotional interest period two (in months) | 12 months |
Credit terms, merchant fee, percentage, promotional interest period three (in months) | 18 months |
Credit Card Loans1 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, privilege period | 24 months |
Credit terms, minimum payment required, percentage of outstanding loan balance | 3.50% |
Credit Card Loans1 | Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, merchant fee (percentage) | 3.00% |
Financing receivable promotional fees percent | 1.00% |
Credit terms, interest rate, fixed and variable (percentage) | 17.90% |
Credit Card Loans1 | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, merchant fee (percentage) | 25.00% |
Financing receivable promotional fees percent | 7.90% |
Credit terms, interest rate, fixed and variable (percentage) | 29.99% |
Business and Summary of Signi41
Business and Summary of Significant Accounting Policies - Lease Merchandise (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |||
Lease merchandise salvage value percentage | 0.00% | ||
Lease Merchandise, net of Accumulated Depreciation and Allowances | $ 1,152,135 | $ 999,381 | |
Allowance for Lease Merchandise Write offs: | |||
Beginning Balance | 33,399 | 33,405 | $ 27,573 |
Merchandise Written off, net of Recoveries | (143,230) | (134,110) | (130,548) |
Provision for Write-offs | 145,460 | 134,104 | 136,380 |
Ending Balance | $ 35,629 | 33,399 | $ 33,405 |
Agreement One | Progressive Leasing | |||
Significant Accounting Policies [Line Items] | |||
Lease agreement period | 12 months | ||
Merchandise on Lease | |||
Significant Accounting Policies [Line Items] | |||
Lease Merchandise, net of Accumulated Depreciation and Allowances | $ 908,268 | 786,936 | |
Merchandise on Lease | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Lease merchandise useful life | 12 months | ||
Merchandise on Lease | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Lease merchandise useful life | 24 months | ||
Merchandise Not on Lease | |||
Significant Accounting Policies [Line Items] | |||
Lease merchandise useful life | 36 months | ||
Lease Merchandise, net of Accumulated Depreciation and Allowances | $ 243,867 | $ 212,445 |
Business and Summary of Signi42
Business and Summary of Significant Accounting Policies - Calculation of Dilutive Stock Awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Weighted Average Shares Outstanding | 70,837 | 72,354 | 72,568 |
Dilutive Effect of Share-Based Awards | 1,284 | 659 | 475 |
Weighted Average Shares Outstanding Assuming Dilution | 72,121 | 73,013 | 73,043 |
Business and Summary of Signi43
Business and Summary of Significant Accounting Policies - Accounts Receivable Net of Allowances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | $ 99,887 | $ 95,777 |
Customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | 48,661 | 36,227 |
Corporate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | 23,431 | 26,375 |
Franchisee | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | $ 27,795 | $ 33,175 |
Business and Summary of Signi44
Business and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 35,690 | $ 34,861 | $ 27,401 |
Accounts Written Off, net of Recoveries | (192,133) | (167,094) | (155,651) |
Accounts Receivable Provision | 203,389 | 167,923 | 163,111 |
Ending Balance | $ 46,946 | $ 35,690 | $ 34,861 |
Business and Summary of Signi45
Business and Summary of Significant Accounting Policies - Accounts Receivable Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Bad Debt Expense | $ 170,574 | $ 128,333 | $ 122,184 |
Provision for Returns and Uncollected Renewal Payments | 32,815 | 39,590 | 40,927 |
Provision for Doubtful Accounts | $ 203,389 | $ 167,923 | $ 163,111 |
Business and Summary of Signi46
Business and Summary of Significant Accounting Policies - Credit Quality Indicators (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
FICO Score, Less than 600 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Percentage of Loan Portfolio per FICO Score | 1.70% | 1.80% |
FICO Score, 600 to 699 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Percentage of Loan Portfolio per FICO Score | 76.50% | 78.10% |
FICO Score, Greater than 700 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Percentage of Loan Portfolio per FICO Score | 21.80% | 20.10% |
Business and Summary of Signi47
Business and Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Prepaid Expenses | $ 31,509 | $ 21,769 |
Prepaid Insurance | 36,735 | 53,716 |
Assets Held for Sale | 10,118 | 8,866 |
Deferred Tax Asset | 11,589 | 5,912 |
Other Assets | 26,548 | 18,881 |
Prepaid Expense and Other Assets | $ 116,499 | $ 109,144 |
Business and Summary of Signi48
Business and Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Accounts Payable | $ 80,821 | $ 71,941 |
Accrued Insurance Costs | 41,680 | 47,649 |
Accrued Salaries and Benefits | 46,511 | 41,612 |
Accrued Real Estate and Sales Taxes | 31,054 | 32,986 |
Deferred Rent | 29,912 | 31,859 |
Other Accrued Expenses and Liabilities | 74,832 | 71,719 |
Accounts Payable and Accrued Liabilities | $ 304,810 | $ 297,766 |
Business and Summary of Signi49
Business and Summary of Significant Accounting Policies - Hurricane Impact (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Estimated losses related to merchandise on hand and on lease destroyed or severely damaged | $ 4,700,000 |
Insurance proceeds received, before tax | 3,300,000 |
Partial cash payment from insurer | 400,000 |
Insurance receivable | 2,900,000 |
Accounts receivable and lease merchandise, additional reserves recorded | 3,600,000 |
Insurance proceeds related to business interruption loss | $ 0 |
Business and Summary of Signi50
Business and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash provided by operating activities | $ (159,135) | $ (467,236) | $ (167,552) | |
Cash provided by (used in) financing activities | (211,397) | (153,663) | (47,309) | |
Effective income tax rate reconciliation, excess tax benefit, amount | 1,100 | |||
Retained Earnings | 1,819,524 | 1,534,983 | ||
Pro Forma | Accounting Standards Update 2014-09, Revenue From Contracts With Customers | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred revenue | $ 2,400 | |||
Adjustments for New Accounting Pronouncement | Accounting Standards Update 2016-09, Excess Tax Benefit Component | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash provided by operating activities | (700) | (300) | ||
Cash provided by (used in) financing activities | 700 | 300 | ||
Adjustments for New Accounting Pronouncement | Accounting Standards Update 2016-09, Statutory Tax Withholding Component | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash provided by operating activities | (2,500) | $ (400) | ||
Cash provided by (used in) financing activities | $ (2,500) | $ (400) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Pro Forma | Accounting Standards Update 2014-09, Revenue From Contracts With Customers | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained Earnings | $ 2,400 |
Business and Summary of Signi51
Business and Summary of Significant Accounting Policies - Summary of Goodwill by Reporting Unit (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)segments | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | |||
Number of operating segments | segments | 3 | ||
Goodwill | $ 622,948 | $ 526,723 | $ 539,475 |
Progressive Leasing | |||
Goodwill [Line Items] | |||
Goodwill | 288,801 | 288,801 | 290,605 |
DAMI | |||
Goodwill [Line Items] | |||
Goodwill | $ 0 | $ 0 | $ 290 |
Business and Summary of Signi52
Business and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, shares in Thousands, £ in Millions | Jul. 27, 2017USD ($) | Oct. 01, 2016USD ($) | May 13, 2016USD ($)Store | Jan. 29, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017GBP (£)storestateshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2017USD ($)storestate$ / shares | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) |
Significant Accounting Policies [Line Items] | ||||||||||||||
Franchise royalties and fees | $ 48,278,000 | $ 58,350,000 | $ 63,507,000 | |||||||||||
Shipping and handling costs | 67,300,000 | 69,900,000 | 77,900,000 | |||||||||||
Advertising costs | 34,000,000 | 40,800,000 | 39,300,000 | |||||||||||
Amount of cooperative advertising consideration netted against advertising expense | $ 22,500,000 | 22,200,000 | 36,300,000 | |||||||||||
Prepaid advertising asset | $ 1,400,000 | $ 1,200,000 | ||||||||||||
Payment of outstanding note balance | £ | £ 2 | |||||||||||||
Threshold period past due for write-off of lease receivable | 60 days | 60 days | ||||||||||||
Depreciation expense for property, plant and equipment | $ 54,800,000 | 53,600,000 | 52,000,000 | |||||||||||
Amortization expense | 27,700,000 | 28,800,000 | 28,200,000 | |||||||||||
Assets Held for Sale | 10,118,000 | 8,866,000 | ||||||||||||
Proceeds from disposition of business, net of cash acquired | 1,141,000 | 35,899,000 | 13,976,000 | |||||||||||
Gain (loss) on disposition | 11,400,000 | 0 | ||||||||||||
Proceeds from sale of buildings | $ 13,600,000 | |||||||||||||
Impairment of indefinite-lived intangibles | $ 0 | |||||||||||||
Asset retirement obligations | $ 2,500,000 | 2,500,000 | ||||||||||||
Foreign currency transaction gains and (losses) | 2,100,000 | (3,700,000) | (2,500,000) | |||||||||||
Fair value of non-cash consideration | $ 6,100,000 | |||||||||||||
Threshold of past due financing receivable that requires allowance | 24 months | 24 months | ||||||||||||
Software | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization expense | $ 11,500,000 | $ 9,200,000 | $ 7,400,000 | |||||||||||
Customer Relationships | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 2 years | 2 years | ||||||||||||
Reacquired Franchise Rights | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 10 years | 10 years | ||||||||||||
Customer Lease Contracts | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 1 year | 1 year | ||||||||||||
Restricted stock units | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Anti-dilutive Securities excluded from the computation of earnings per share assuming dilution | shares | 140 | 140 | 939 | 460 | ||||||||||
Maximum | Non-compete Agreements | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 5 years | 5 years | ||||||||||||
Maximum | Buildings and improvements | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, useful life | 40 years | 40 years | ||||||||||||
Maximum | Other depreciable property and equipment | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, useful life | 15 years | 15 years | ||||||||||||
Maximum | Software | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, useful life | 10 years | 10 years | ||||||||||||
Maximum | Software updates | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, useful life | 1 month | 1 month | ||||||||||||
Minimum | Non-compete Agreements | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 1 year | 1 year | ||||||||||||
Minimum | Buildings and improvements | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, useful life | 5 years | 5 years | ||||||||||||
Minimum | Other depreciable property and equipment | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, useful life | 1 year | 1 year | ||||||||||||
Minimum | Software | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Property, plant and equipment, useful life | 5 years | 5 years | ||||||||||||
Variable Interest Entity | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Number of retail stores | store | 18 | 18 | ||||||||||||
Held to maturity securities | £ 15.1 | $ 20,400,000 | £ 16.6 | 20,500,000 | ||||||||||
Stated interest rate | 12.00% | 12.00% | ||||||||||||
Asset impairment | $ 0 | |||||||||||||
Sales and Lease Ownership and HomeSmart | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Franchise royalties and fees | $ 100,000 | $ 400,000 | $ 600,000 | |||||||||||
Royalty revenue | 44,700,000 | 53,700,000 | 57,700,000 | |||||||||||
Finance fee revenue | $ 2,000,000 | 2,300,000 | 2,900,000 | |||||||||||
Deferred franchise and area development agreement fees | $ 600,000 | $ 1,100,000 | ||||||||||||
Sales and Lease Ownership and HomeSmart | Maximum | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Percentage of royalty of gross revenue | 6.00% | 6.00% | ||||||||||||
Non-refundable initial franchise fee | $ 50,000 | |||||||||||||
Sales and Lease Ownership and HomeSmart | Minimum | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Non-refundable initial franchise fee | $ 15,000 | |||||||||||||
Progressive Leasing | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Threshold period past due for write-off of lease receivable | 120 days | 120 days | ||||||||||||
Progressive Leasing | Agreement One | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Lease agreement period | 12 months | 12 months | ||||||||||||
Sales and Lease Ownership | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Asset impairment charge | $ 700,000 | 5,800,000 | $ 500,000 | |||||||||||
Sales and Lease Ownership | Agreement One | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Lease agreement period | 12 months | 12 months | ||||||||||||
Sales and Lease Ownership | Agreement Two | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Lease agreement period | 18 months | 18 months | ||||||||||||
Sales and Lease Ownership | Agreement Three | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Lease agreement period | 24 months | 24 months | ||||||||||||
SEI/Aaron’s, Inc. | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Settlement of Pre-existing Accounts Receivable SEI owed Aaron's, Inc. | $ 3,452,000 | |||||||||||||
SEI/Aaron’s, Inc. | Customer Relationships | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 2 years | 2 years | ||||||||||||
SEI/Aaron’s, Inc. | Non-compete Agreements | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 5 years | 5 years | ||||||||||||
SEI/Aaron’s, Inc. | Reacquired Franchise Rights | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 4 years 1 month 6 days | 4 years 1 month 6 days | ||||||||||||
Progressive Leasing | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Number of states in which entity operates | state | 46 | 46 | ||||||||||||
Progressive Leasing | Customer Lease Contracts | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 1 year | 1 year | ||||||||||||
Progressive Leasing | Acquired Internal Use Software | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 3 years | 3 years | ||||||||||||
Progressive Leasing | Technology | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 10 years | 10 years | ||||||||||||
Progressive Leasing | Merchant Relationships | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 12 years | 12 years | ||||||||||||
DAMI | Technology | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 5 years | 5 years | ||||||||||||
Subsidiaries | DAMI | Non-compete Agreements | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 5 years | 5 years | ||||||||||||
Subsidiaries | DAMI | Technology | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives of intangibles (in years) | 5 years | 5 years | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | HomeSmart | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Disposal group, number of stores | Store | 82 | |||||||||||||
Impairment of long-lived assets to be disposed of | $ 1,000,000 | 1,100,000 | ||||||||||||
Proceeds from disposition of business, net of cash acquired | $ 35,000,000 | |||||||||||||
Charge related to write down of disposal group | $ 4,600,000 | |||||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | HomeSmart | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Impairment of long-lived assets to be disposed of | $ 900,000 | |||||||||||||
Other operating expense (income) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | HomeSmart | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Charge related to write down of disposal group | $ 4,300,000 | |||||||||||||
Gain on sale of corporate office building | $ 11,100,000 | |||||||||||||
Perfect Home Warrant [Member] | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Issuance of warrant price per share (in GBP per share) | $ / shares | $ 0.00001 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Jul. 27, 2017USD ($)customerstate | Oct. 15, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash | $ 145,558 | $ 9,762 | $ 73,295 | |||
SEI/Aaron’s, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash | $ 140,000 | |||||
Number of customers entity serves | customer | 90,000 | |||||
Number of branded stores | state | 104 | |||||
Number of states in which entity operates | state | 11 | |||||
Revenues | $ 58,300 | |||||
Earnings before income taxes | $ 2,500 | |||||
Acquisition related costs | $ 2,000 | |||||
Purchase Price | $ 143,540 | |||||
DAMI | ||||||
Business Acquisition [Line Items] | ||||||
Purchase Price | $ 54,900 | |||||
Subsidiaries | DAMI | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | $ 3,700 | |||||
Percentage of voting interests acquired | 100.00% | |||||
Purchase Price | $ 54,900 | |||||
Cash acquired from acquisition | $ 4,200 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 27, 2017 | Oct. 15, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 15, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash | $ 145,558 | $ 9,762 | $ 73,295 | |||
Goodwill | 622,948 | 526,723 | 539,475 | |||
DAMI | ||||||
Business Acquisition [Line Items] | ||||||
Consideration Transferred | $ 54,900 | |||||
Goodwill | 0 | |||||
Net Assets Acquired | 54,900 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||
Cash and Cash Equivalents | 4,185 | |||||
Receivables | 45 | |||||
Property, Plant and Equipment | 2,754 | |||||
Other intangibles | 2,900 | |||||
Prepaid Expenses and Other Assets | 671 | |||||
Loans receivable | 89,126 | |||||
Income Tax Receivable | 728 | |||||
Deferred Income Tax Assets | 2,490 | |||||
Total Identifiable Assets Acquired | 102,899 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Accounts Payable and Accrued Expenses | (2,974) | |||||
Debt | (45,025) | |||||
Total Liabilities Assumed | (47,999) | |||||
SEI/Aaron’s, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash | $ 140,000 | |||||
Settlement of Pre-existing Accounts Receivable SEI owed Aaron's, Inc. | 3,452 | |||||
Reimbursement for Insurance Costs | (100) | |||||
Working Capital Adjustment | 188 | |||||
Consideration Transferred | 143,540 | |||||
Goodwill | 91,815 | |||||
Net Assets Acquired | 51,725 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||
Cash and Cash Equivalents | 34 | |||||
Receivables | 1,448 | |||||
Lease Merchandise | 40,941 | |||||
Property, Plant and Equipment | 8,832 | |||||
Other intangibles | 13,578 | |||||
Prepaid Expenses and Other Assets | 440 | |||||
Total Identifiable Assets Acquired | 65,273 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Accounts Payable and Accrued Expenses | (6,534) | |||||
Customer Deposits and Advance Payments | (2,500) | |||||
Capital Leases | (4,514) | |||||
Total Liabilities Assumed | (13,548) | |||||
Subsidiaries | DAMI | ||||||
Business Acquisition [Line Items] | ||||||
Consideration Transferred | 54,900 | |||||
Contractually required amounts due at acquisition date | 94,200 | |||||
Previously Reported | SEI/Aaron’s, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash | 140,000 | |||||
Settlement of Pre-existing Accounts Receivable SEI owed Aaron's, Inc. | 3,452 | |||||
Reimbursement for Insurance Costs | (100) | |||||
Working Capital Adjustment | 0 | |||||
Consideration Transferred | 143,352 | |||||
Goodwill | 88,338 | |||||
Net Assets Acquired | 55,014 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||
Cash and Cash Equivalents | 34 | |||||
Receivables | 1,448 | |||||
Lease Merchandise | 40,941 | |||||
Property, Plant and Equipment | 8,279 | |||||
Other intangibles | 16,472 | |||||
Prepaid Expenses and Other Assets | 440 | |||||
Total Identifiable Assets Acquired | 67,614 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Accounts Payable and Accrued Expenses | (5,470) | |||||
Customer Deposits and Advance Payments | (2,500) | |||||
Capital Leases | (4,630) | |||||
Total Liabilities Assumed | (12,600) | |||||
Adjustment | SEI/Aaron’s, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition Accounting Adjustment, Settlement of Pre-existing Accounts Receivable SEI owed Aaron's, Inc. | 0 | |||||
Acquisition Accounting Adjustment, Reimbursement for Insurance Costs | 0 | |||||
Acquisition Accounting Adjustment, Working Capital Adjustment | 188 | |||||
Acquisition Accounting Adjustment, Consideration Transferred | 188 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Acquisition Accounting Adjustment, Cash and Cash Equivalents | 0 | |||||
Acquisition Accounting Adjustment, Receivables | 0 | |||||
Acquisition Accounting Adjustment, Lease Merchandise | 0 | |||||
Acquisition Accounting Adjustment, Property, Plant and Equipment | 553 | |||||
Acquisition Accounting Adjustment, Other Intangibles | (2,894) | |||||
Acquisition Accounting Adjustment, Prepaid Expenses and Other Assets | 0 | |||||
Total Identifiable Assets Acquired | (2,341) | |||||
Acquisition Accounting Adjustment, Accounts Payable And Accrued Expenses | (1,064) | |||||
Acquisition Accounting Adjustment, Customer Deposits and Advance Payments | 0 | |||||
Acquisition Accounting Adjustment, Capital Leases | 116 | |||||
Total Liabilities Assumed | (948) | |||||
Acquisition Accounting Adjustment, Goodwill | 3,477 | |||||
Acquisition Accounting Adjustment, Net Assets Acquired | $ (3,289) | |||||
Progressive Leasing | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 288,801 | $ 288,801 | $ 290,605 | |||
Progressive Leasing | Subsidiaries | DAMI | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||
Loans receivable | 89,100 | |||||
Progressive Leasing | Previously Reported | Subsidiaries | DAMI | ||||||
Business Acquisition [Line Items] | ||||||
Consideration Transferred | 54,900 | |||||
Goodwill | 290 | |||||
Net Assets Acquired | 54,900 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||
Cash and Cash Equivalents | 4,185 | |||||
Receivables | 45 | |||||
Property, Plant and Equipment | 2,754 | |||||
Other intangibles | 3,400 | |||||
Prepaid Expenses and Other Assets | 671 | |||||
Loans receivable | 89,186 | |||||
Income Tax Receivable | 728 | |||||
Deferred Income Tax Assets | 375 | |||||
Total Identifiable Assets Acquired | 101,344 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Accounts Payable and Accrued Expenses | (1,709) | |||||
Debt | (45,025) | |||||
Total Liabilities Assumed | $ (46,734) | |||||
Progressive Leasing | Adjustment | Subsidiaries | DAMI | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Long-Term Debt | $ 0 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Acquisition Accounting Adjustment, Cash and Cash Equivalents | 0 | |||||
Acquisition Accounting Adjustment, Receivables | 0 | |||||
Acquisition Accounting Adjustment, Loans Receivable | (60) | |||||
Acquisition Accounting Adjustment, Property, Plant and Equipment | 0 | |||||
Acquisition Accounting Adjustment, Other Intangibles | (500) | |||||
Acquisition Accounting Adjustment, Prepaid Expenses and Other Assets | 0 | |||||
Acquisition Accounting Adjustment, Deferred Income Tax Assets | 2,115 | |||||
Total Identifiable Assets Acquired | 1,555 | |||||
Acquisition Accounting Adjustment, Accounts Payable And Accrued Expenses | (1,265) | |||||
Acquisition Accounting Adjustment, Income Tax Receivable | 0 | |||||
Total Liabilities Assumed | (1,265) | |||||
Acquisition Accounting Adjustment, Goodwill | $ (290) |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Jul. 27, 2017 | Oct. 15, 2015 | Dec. 31, 2017 |
Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangibles (in years) | 2 years | ||
Reacquired Franchise Rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangibles (in years) | 10 years | ||
SEI/Aaron’s, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 13,578 | ||
Estimated useful lives of definite-lived intangibles (in years) | 4 years 3 months 18 days | ||
SEI/Aaron’s, Inc. | Non-compete Agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 1,244 | ||
Estimated useful lives of intangibles (in years) | 5 years | ||
SEI/Aaron’s, Inc. | Customer Lease Contracts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 2,130 | ||
Estimated useful lives of intangibles (in years) | 1 year | ||
SEI/Aaron’s, Inc. | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 3,176 | ||
Estimated useful lives of intangibles (in years) | 2 years | ||
SEI/Aaron’s, Inc. | Reacquired Franchise Rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 3,640 | ||
Estimated useful lives of intangibles (in years) | 4 years 1 month 6 days | ||
SEI/Aaron’s, Inc. | Favorable Operating Leases | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 3,388 | ||
Estimated useful lives of intangibles (in years) | 8 years 6 months | ||
DAMI | Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangibles (in years) | 5 years | ||
Subsidiaries | DAMI | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 2,900 | ||
Subsidiaries | DAMI | Non-compete Agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 350 | ||
Estimated useful lives of intangibles (in years) | 5 years | ||
Subsidiaries | DAMI | Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 2,550 | ||
Estimated useful lives of intangibles (in years) | 5 years |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 622,948 | $ 526,723 | $ 539,475 |
Indefinite-lived Intangible Assets | 675,948 | 579,723 | |
Trade Names and Trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Trade Name | $ 53,000 | $ 53,000 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Summary of Carrying Value of Goodwill by Operating Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 526,723 | $ 539,475 |
Acquisitions | 97,460 | 4,345 |
Disposals, Currency Translation and Other Adjustments | (16,977) | |
Acquisition Accounting Adjustments | 36 | (120) |
Disposals, Currency Translation and Other Adjustments | (1,271) | |
Ending Balance | 622,948 | 526,723 |
Progressive Leasing | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 288,801 | 290,605 |
Acquisitions | 0 | 0 |
Disposals, Currency Translation and Other Adjustments | (1,804) | |
Acquisition Accounting Adjustments | 0 | 0 |
Disposals, Currency Translation and Other Adjustments | 0 | |
Ending Balance | 288,801 | 288,801 |
Aaron's Business | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 237,922 | 248,580 |
Acquisitions | 97,460 | 4,345 |
Disposals, Currency Translation and Other Adjustments | (15,173) | |
Acquisition Accounting Adjustments | 36 | 170 |
Disposals, Currency Translation and Other Adjustments | (1,271) | |
Ending Balance | 334,147 | 237,922 |
DAMI | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 290 |
Acquisitions | 0 | 0 |
Disposals, Currency Translation and Other Adjustments | 0 | |
Acquisition Accounting Adjustments | 0 | (290) |
Disposals, Currency Translation and Other Adjustments | 0 | |
Ending Balance | $ 0 | $ 0 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets - Summary of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 283,108 | $ 270,131 |
Accumulated Amortization | (100,557) | (75,459) |
Net | 182,551 | 194,672 |
Acquired Internal Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 14,000 | 14,000 |
Accumulated Amortization | (14,000) | (12,665) |
Net | 0 | 1,335 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 68,550 | 68,550 |
Accumulated Amortization | (25,639) | (18,529) |
Net | 42,911 | 50,021 |
Merchant Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 181,000 | 181,000 |
Accumulated Amortization | (56,018) | (40,934) |
Net | 124,982 | 140,066 |
Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 19,558 | 6,581 |
Accumulated Amortization | (4,900) | (3,331) |
Net | $ 14,658 | $ 3,250 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 28,018 |
2,019 | 25,317 |
2,020 | 24,037 |
2,021 | 22,684 |
2,022 | $ 22,547 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 27.7 | $ 28.8 | $ 28.2 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Level 1 | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Deferred Compensation Liability | $ 0 | $ 0 |
Level 2 | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Deferred Compensation Liability | (12,927) | (11,978) |
Level 3 | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||
Deferred Compensation Liability | $ 0 | $ 0 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets Measured At Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | $ 10,118 | $ 8,866 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | 10,118 | 8,866 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | $ 0 | $ 0 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, carrying value | $ 265 | $ 350 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets (Liabilities) Not Measured at Fair Value In Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 0 | $ 0 |
Debt Securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | 0 | 0 |
Debt Securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | 20,385 | 20,519 |
Long-term Debt | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, fair value | 0 | 0 |
Long-term Debt | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, fair value | (273,476) | (368,408) |
Long-term Debt | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, fair value | $ 0 | $ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 19,768 | $ 22,843 |
Buildings and Improvements | 67,053 | 69,935 |
Leasehold Improvements and Signs | 69,407 | 75,786 |
Fixtures and Equipment | 266,761 | 247,565 |
Construction in Progress | 10,863 | 4,568 |
Property, Plant and Equipment, Gross | 450,310 | 442,333 |
Less: Accumulated Depreciation and Amortization | (242,623) | (231,062) |
Property, Plant and Equipment, Net | 207,687 | 211,271 |
Related Party | ||
Property, Plant and Equipment [Line Items] | ||
Assets Under Capital Leases: | 4,032 | 10,573 |
Non-Related Party | ||
Property, Plant and Equipment [Line Items] | ||
Assets Under Capital Leases: | $ 12,426 | $ 11,063 |
Property, Plant and Equipment66
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Internal-use software development cost | $ 86.2 | $ 73 |
Internal-use software development cost, accumulated amortization | $ 42.6 | $ 31.1 |
Property, Plant and Equipment67
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Amortization expense on assets recorded under capital leases | $ 1,500 | $ 1,700 | $ 1,700 |
Accumulated depreciation and amortization, capital lease assets | 242,623 | 231,062 | |
Related Party | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization, capital lease assets | 3,600 | 9,000 | |
Non-Related Party | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization, capital lease assets | $ 4,700 | $ 6,900 |
Loans Receivable - Components
Loans Receivable - Components of Loans Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Net [Abstract] | |||
Loans Receivable, Gross | $ 105,941 | $ 98,634 | |
Allowance for Loan Losses | (11,454) | (6,624) | $ (937) |
Unamortized Fees | (8,375) | (7,206) | |
Loans Receivable, Net of Allowances and Unamortized Fees | 86,112 | 84,804 | |
Credit Card Loans1 | |||
Financing Receivable, Net [Abstract] | |||
Loans Receivable, Gross | 89,728 | 64,794 | |
Acquired Loans2 | |||
Financing Receivable, Net [Abstract] | |||
Loans Receivable, Gross | $ 16,213 | $ 33,840 |
Loans Receivable - Aging of the
Loans Receivable - Aging of the Loans Receivable Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 14.80% | 14.30% |
Current loans receivable (percentage) | 85.20% | 85.70% |
Balance of Loans Receivable on Nonaccrual Status | $ 2,016 | $ 1,072 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 7.10% | 6.80% |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 3.60% | 3.20% |
90 or more Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 4.10% | 4.30% |
Balance of Loans Receivable 90 or More Days Past Due and Still Accruing Interest and Fees | $ 0 | $ 0 |
Loans Receivable - Components o
Loans Receivable - Components of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Oct. 15, 2015 | |
Components of the Allowance For Loan Losses: | |||
Beginning Balance1 | $ 6,624 | $ 937 | |
Provision for Loan Losses | 20,973 | 11,251 | |
Charge-offs | (16,852) | (5,675) | |
Recoveries | 709 | 111 | |
Ending Balance | $ 11,454 | $ 6,624 | |
DAMI | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans receivable acquired | $ 89,126 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) | Sep. 30, 2017USD ($) | Sep. 18, 2017USD ($) | Apr. 14, 2014USD ($) | Jan. 31, 2018 | Dec. 31, 2002USD ($)Property | Nov. 30, 2004USD ($)Property | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 17, 2017USD ($) | Apr. 13, 2014 | Jul. 05, 2011USD ($) |
Debt Instruments [Abstract] | ||||||||||||
Debt | $ 368,798,000 | $ 497,829,000 | ||||||||||
Less: Current Maturities | 97,192,000 | 146,515,000 | ||||||||||
Long-Term Debt | 271,606,000 | 351,314,000 | ||||||||||
Unamortized debt issuance expense | 1,500,000 | |||||||||||
Repayments of Long-term Lines of Credit | 162,910,000 | 208,607,000 | $ 330,747,000 | |||||||||
Interest expense | $ 20,538,000 | 23,390,000 | $ 23,339,000 | |||||||||
Lease term (in years) | 15 years | |||||||||||
Sale leaseback transaction, deferred gain, net | $ 0 | |||||||||||
DAMI Credit Facility | LIBOR | Revolving Credit Agreement | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Interest rate basis spread (percentage) | 2.82% | |||||||||||
Revolving Facility | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt covenant, EBITDA plus lease expense to fixed charges (no less than) | 2 | |||||||||||
Debt covenant, total debt to EBITDA (no greater than) | 3 | |||||||||||
Line of Credit | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt issuance costs, gross | $ 3,000,000 | |||||||||||
Interest expense | $ 200,000 | |||||||||||
Line of Credit | Revolving Credit Agreement | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt issuance costs, net | 3,200,000 | |||||||||||
Maximum borrowing capacity | 400,000,000 | |||||||||||
Line of Credit | Letter of Credit | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Maximum borrowing capacity | $ 35,000,000 | $ 20,000,000 | ||||||||||
Line of Credit | LIBOR | Minimum | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Interest rate basis spread (percentage) | 1.25% | |||||||||||
Line of Credit | LIBOR | Maximum | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Interest rate basis spread (percentage) | 2.25% | |||||||||||
Line of Credit | Prime Rate | Minimum | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Interest rate basis spread (percentage) | 0.25% | |||||||||||
Line of Credit | Base Rate | Maximum | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Interest rate basis spread (percentage) | 1.25% | |||||||||||
Line of Credit | DAMI Credit Facility | Revolving Credit Agreement | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt | 0 | 47,302,000 | ||||||||||
Debt issuance costs, net | 1,700,000 | |||||||||||
Repayments of Long-term Lines of Credit | $ 53,000,000 | |||||||||||
Line of Credit | Revolving Facility | Revolving Credit Agreement | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt | 0 | 0 | ||||||||||
Line of credit, current borrowing capacity (up to) | 225,000,000 | |||||||||||
Line of credit, additional borrowing capacity (up to) | 250,000,000 | |||||||||||
Decrease in credit amount outstanding | 6,100,000 | |||||||||||
Line of credit amount outstanding | $ 393,900,000 | |||||||||||
Line of Credit | Revolving Facility | Revolving Credit Agreement | Minimum | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Commitment fee for unused balance amount (percentage) | 0.15% | |||||||||||
Line of Credit | Revolving Facility | Revolving Credit Agreement | Maximum | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Commitment fee for unused balance amount (percentage) | 0.30% | |||||||||||
Unsecured Debt | Term Loan | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt | $ 84,400,000 | |||||||||||
Maximum borrowing capacity | $ 100,000,000 | 125,000,000 | ||||||||||
Incremental increase to borrowing capacity | 15,600,000 | |||||||||||
Installment payments required | $ 2,500,000 | |||||||||||
Senior Unsecured Notes Issued July 2011 | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Notes issued | $ 125,000,000 | |||||||||||
Debt interest rate (percentage) | 3.95% | 3.75% | ||||||||||
Annual principal repayment amount | $ 25,000,000 | |||||||||||
Senior Notes | Senior Unsecured Notes, 3.95%, Due in Installments through April 2018 | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt | $ 24,994,000 | 49,975,000 | ||||||||||
Senior Notes | Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt | 239,784,000 | 299,562,000 | ||||||||||
Notes issued | $ 300,000,000 | |||||||||||
Debt interest rate (percentage) | 4.75% | |||||||||||
Periodic payment, principal | $ 60,000,000 | |||||||||||
Term Loan | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt | 96,272,000 | 94,626,000 | ||||||||||
Related Party | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Properties sold | Property | 10 | 11 | ||||||||||
Borrowings collateralized by the land and buildings | $ 5,000,000 | $ 6,800,000 | ||||||||||
Lease term (in years) | 15 years | |||||||||||
Aggregate annual rental | $ 800,000 | $ 800,000 | ||||||||||
Interest implicit in the leases (percentage) | 9.70% | |||||||||||
Capital Lease Obligations, Related Party | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt | 1,314,000 | 3,095,000 | ||||||||||
Capital Lease Obligations | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Debt | $ 6,434,000 | $ 3,269,000 | ||||||||||
Subsequent Event | Related Party | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Lease term (in years) | 5 years | |||||||||||
Subsequent Event | Related Party | Minimum | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Lease term (in years) | 5 years | |||||||||||
Subsequent Event | Related Party | Maximum | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Lease term (in years) | 8 years |
Indebtedness - Future Maturitie
Indebtedness - Future Maturities of Long Term Debt and Capital Lease Obligations (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Maturities of Long-term Debt [Abstract] | |
2,018 | $ 97,556 |
2,019 | 72,768 |
2,020 | 71,670 |
2,021 | 70,693 |
2,022 | 57,561 |
Thereafter | 0 |
Long-term Debt, Total | $ 370,248 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Income Tax Expense: | |||
Federal | $ (3,530) | $ 103,993 | $ 32,999 |
State | 9,772 | 10,308 | 5,442 |
Current Income Tax Expense (Benefit), Total | 6,242 | 114,301 | 38,441 |
Deferred Income Tax (Benefit) Expense: | |||
Federal | (60,547) | (33,470) | 35,413 |
State | 1,346 | (1,692) | 3,557 |
Deferred Income Tax Expense (Benefit), Total | (59,201) | (35,162) | 38,970 |
INCOME TAXES | $ (52,959) | $ 79,139 | $ 77,411 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Remeasurement of net deferred tax liabilities | $ 140,000 | ||||
Income Tax Receivable | 100,023 | $ 100,023 | $ 11,884 | ||
Uncertain tax benefits that, if recognized, would affect effective tax rate | 1,700 | 1,700 | 2,500 | ||
Recognized interest and penalties expense (benefit) related to unrecognized tax benefits | (600) | 100 | $ 400 | ||
Accrued interest and penalties | $ 300 | $ 300 | $ 900 | ||
Proceeds from refund of overpaid federal tax | $ 120,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Liabilities and Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Liabilities: | ||
Lease Merchandise and Property, Plant and Equipment | $ 122,155 | $ 185,891 |
Goodwill and Other Intangibles | 37,080 | 52,135 |
Investment in Partnership | 107,173 | 96,291 |
Other, Net | 2,074 | 1,619 |
Total Deferred Tax Liabilities | 268,482 | 335,936 |
Deferred Tax Assets: | ||
Accrued Liabilities | 25,509 | 33,243 |
Advance Payments | 8,199 | 13,087 |
Other, Net | 23,771 | 20,277 |
Total Deferred Tax Assets | 57,479 | 66,607 |
Less Valuation Allowance | 0 | (875) |
Total Deferred Tax Liabilities | $ 211,003 | $ 270,204 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Differs from Statutory United States Federal Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory Rate | 35.00% | 35.00% | 35.00% |
Increases (Decreases) in United States Federal Taxes | |||
State Income Taxes, net of Federal Income Tax Benefit | 2.70% | 2.60% | 2.70% |
Federal Tax Credits | (0.80%) | (1.10%) | (0.50%) |
Change in Valuation Allowance | (0.40%) | (0.00%) | (0.00%) |
Tax Act Enactment - Remeasurement of net Deferred Tax Liabilities | (58.20%) | (0.00%) | (0.00%) |
Other, net | (0.40%) | (0.30%) | (0.90%) |
Effective Tax Rate | (22.10%) | 36.20% | 36.30% |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of activity related to uncertain tax positions: | |||
Balance at January 1, | $ 2,594 | $ 3,561 | $ 2,644 |
Additions Based on Tax Positions Related to the Current Year | 456 | 258 | 331 |
Additions for Tax Positions of Prior Years | 232 | 293 | 1,176 |
Prior Year Reductions | (236) | (776) | (1) |
Statute Expirations | (346) | (609) | (589) |
Settlements | (431) | (133) | 0 |
Balance at December 31, | $ 2,269 | $ 2,594 | $ 3,561 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments Required under Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 107,038 |
2,019 | 91,317 |
2,020 | 77,056 |
2,021 | 58,282 |
2,022 | 42,046 |
Thereafter | 81,284 |
Operating leases, future minimum payments due | $ 457,023 |
Commitments and Contingencies79
Commitments and Contingencies - Narrative (Details) | Dec. 06, 2016CAD | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 06, 2016USD ($) | Dec. 05, 2016USD ($) | Oct. 26, 2010$ / violation |
Commitments And Contingencies Disclosure [Line Items] | |||||||
Leases of warehouse and retail store space under operating lease, expiring time | 2,033 | ||||||
Lease term (in years) | 15 years | ||||||
Rental expense | $ 104,300,000 | $ 116,200,000 | $ 116,500,000 | ||||
Future sublease rental income in one year | 5,000,000 | ||||||
Future sublease rental income in two years | 4,200,000 | ||||||
Future sublease rental income in three years | 3,100,000 | ||||||
Future sublease rental income in four years | 2,400,000 | ||||||
Future sublease rental income in five years | 1,600,000 | ||||||
Future sublease rental income in five years and thereafter | $ 1,700,000 | ||||||
Loan facility maximum commitment amount | $ 85,000,000 | $ 125,000,000 | |||||
Loan due In full, term (in days) | 90 days | ||||||
Portion that company might be obligated to repay in the event franchisees defaulted | $ 45,300,000 | ||||||
Fair value of franchise related borrowings | 700,000 | ||||||
Accrued regulatory expense | $ 7,300,000 | 6,000,000 | |||||
Maximum 401 (k) plan contribution rates as percentage of employees earnings | 75.00% | ||||||
Employer 401 (k) matching contribution to employee, 50% Maximum | 50.00% | ||||||
Initial employer 401(k) matching contribution to employee (percentage) | 4.00% | ||||||
Compensation expense related to 401(k) savings plan | $ 5,700,000 | 5,400,000 | $ 4,700,000 | ||||
Liability reserve | $ 600,000 | 500,000 | |||||
Minimum | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Renewal options of leases for additional periods (in years) | 1 year | ||||||
Loss contingency in excess of accrual, range of possible loss | $ 0 | ||||||
Minimum range of possible loss | $ 500,000 | ||||||
Initial employer 401(k) matching contribution to employee (percentage) | 2.00% | ||||||
Maximum | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Renewal options of leases for additional periods (in years) | 20 years | ||||||
Loss contingency in excess of accrual, range of possible loss | $ 1,000,000 | ||||||
Minimum range of possible loss | $ 3,500,000 | ||||||
Initial employer 401(k) matching contribution to employee (percentage) | 3.00% | ||||||
Closure of Company Operated Stores | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Rental expense | $ 13,400,000 | 11,600,000 | |||||
Marketing and Advertising Expense | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Non-cancelable commitments | 20,300,000 | ||||||
Non-cancelable commitments due in 2016 | 9,800,000 | ||||||
Non-cancelable commitments due in 2017 | 7,200,000 | ||||||
Non-cancelable commitments due in 2018 | 2,700,000 | ||||||
Non-cancelable commitments due in 2019 | 700,000 | ||||||
Margaret Korrow | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Statutory penalty damages, per violation (in dollars per violation) | $ / violation | 100 | ||||||
Unused Credit Card Lines | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Remaining credit available | $ 354,500,000 | $ 366,400,000 | |||||
Canada | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Loan facility maximum Canadian sub facility commitment amount | CAD | CAD 25,000,000 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2018USD ($)store | Dec. 31, 2017USD ($)store | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)Store | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | $ 3,400 | $ 800 | $ 13,500 | $ 300 | $ 15,500 | $ 4,700 | $ 17,994 | $ 20,218 | $ 0 | ||
2017 Restructuring Program | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | $ 3,000 | ||||||||||
2017 Restructuring Program | Facility Closing | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Number of store closures | store | 15 | ||||||||||
2017 Restructuring Program | Other Restructuring | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | $ 1,700 | ||||||||||
2017 Restructuring Program | Fixed Assets | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | 500 | ||||||||||
2017 Restructuring Program | Contractual Lease Obligations | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | 800 | ||||||||||
2016 Restructuring Program | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | 15,000 | 20,218 | |||||||||
2016 Restructuring Program | Facility Closing | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Number of store closures | Store | 123 | ||||||||||
2016 Restructuring Program | Contractual Lease Obligations | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | 12,600 | ||||||||||
2016 Restructuring Program | Headcount | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | 1,500 | ||||||||||
2016 Restructuring Program | Write-down To Fair Value | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | 900 | ||||||||||
2016 and 2017 Restructuring Program | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | 16,677 | 15,713 | $ 38,200 | ||||||||
2016 and 2017 Restructuring Program | Contractual Lease Obligations | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Expenses | $ 13,501 | $ 11,830 | |||||||||
Forecast | 2017 Restructuring Program | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and related cost, expected cost remaining | $ 1,500 | ||||||||||
Forecast | 2017 Restructuring Program | Facility Closing | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Number of store closures | store | 8 |
Restructuring - Summary of Accr
Restructuring - Summary of Accruals of Restructuring Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring Charges | $ 3,400 | $ 800 | $ 13,500 | $ 300 | $ 15,500 | $ 4,700 | $ 17,994 | $ 20,218 | $ 0 | |
2016 and 2017 Restructuring Program | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring reserve, beginning balance | 12,662 | 12,662 | 0 | $ 0 | ||||||
Restructuring Charges | 16,677 | 15,713 | 38,200 | |||||||
Adjustments | (69) | (241) | ||||||||
Total Restructuring Charges | 16,608 | 15,472 | ||||||||
Payments | (14,530) | (2,810) | ||||||||
Restructuring reserve, ending balance | 14,740 | 12,662 | 14,740 | 12,662 | 0 | 14,740 | ||||
2016 and 2017 Restructuring Program | Contractual Lease Obligations | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring reserve, beginning balance | 10,583 | 10,583 | 0 | 0 | ||||||
Restructuring Charges | 13,501 | 11,830 | ||||||||
Adjustments | (69) | (241) | ||||||||
Total Restructuring Charges | 13,432 | 11,589 | ||||||||
Payments | (11,578) | (1,006) | ||||||||
Restructuring reserve, ending balance | 12,437 | 10,583 | 12,437 | 10,583 | 0 | 12,437 | ||||
2016 and 2017 Restructuring Program | Severance | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring reserve, beginning balance | $ 2,079 | 2,079 | 0 | 0 | ||||||
Restructuring Charges | 3,176 | 3,883 | ||||||||
Adjustments | 0 | 0 | ||||||||
Total Restructuring Charges | 3,176 | 3,883 | ||||||||
Payments | (2,952) | (1,804) | ||||||||
Restructuring reserve, ending balance | $ 2,303 | $ 2,079 | $ 2,303 | $ 2,079 | $ 0 | $ 2,303 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | $ 3,400 | $ 800 | $ 13,500 | $ 300 | $ 15,500 | $ 4,700 | $ 17,994 | $ 20,218 | $ 0 |
Operating Segments | Sales and Lease Ownership | Contractual Lease Obligations | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 13,432 | 11,589 | |||||||
Operating Segments | Sales and Lease Ownership | Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 2,705 | 3,883 | |||||||
Operating Segments | Sales and Lease Ownership | Fixed Assets | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 1,386 | 4,746 | |||||||
Operating Segments | Sales and Lease Ownership | Facility Closing | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 17,523 | 20,218 | |||||||
Operating Segments | Franchised Stores | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 471 | ||||||||
Operating Segments | Franchised Stores | Contractual Lease Obligations | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 0 | ||||||||
Operating Segments | Franchised Stores | Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 471 | ||||||||
Operating Segments | Franchised Stores | Fixed Assets | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 0 | ||||||||
Operating Segments | Corporate Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 17,994 | ||||||||
Operating Segments | Corporate Segment | Contractual Lease Obligations | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 13,432 | 11,589 | |||||||
Operating Segments | Corporate Segment | Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | 3,176 | 3,883 | |||||||
Operating Segments | Corporate Segment | Fixed Assets | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges | $ 1,386 | $ 4,746 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 13, 2018 | |
Class of Stock [Line Items] | |||||
Treasury Shares | 20,733,010 | 19,303,578 | |||
Additional authorized shares purchased | 7,162,279 | ||||
Stock repurchased during period | $ 306 | ||||
Repurchased shares, amount | $ (62,550) | $ (34,525) | |||
Preferred stock, authorized (in shares) | 1,000,000 | ||||
Preferred stock, issued (in shares) | 0 | ||||
Treasury Stock | |||||
Class of Stock [Line Items] | |||||
Repurchased shares, amount | $ (62,550) | (34,525) | |||
Additional Paid-in Capital | |||||
Class of Stock [Line Items] | |||||
Repurchased shares, amount | $ 0 | $ 0 | |||
Nonvoting Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock repurchased (in shares) | 1,961,442 | 1,372,700 | 0 | ||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Authorized stock repurchase program, amount | $ 500,000 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 2,380,572 | ||
Stock based compensation expense | $ 27,400,000 | $ 21,500,000 | $ 14,200,000 |
Tax benefit from exercise of stock options | 10,400,000 | 8,200,000 | 5,400,000 |
Excess tax benefit from share-based compensation, operating activities | $ 1,100,000 | $ 300,000 | |
Excess tax (deductions) benefits included in cash provided by operating activities | $ (700,000) | ||
Stock options granted (in shares) | 518,000 | 634,000 | 338,000 |
Aggregate Intrinsic value of options exercised | $ 2,600,000 | $ 400,000 | $ 800,000 |
Fair value of options vested | $ 1,700,000 | 1,400,000 | 1,100,000 |
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $ 0 | $ 0 | |
2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unexercised options lapse period (in years) | 10 years | ||
2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unexercised options lapse period (in years) | 10 years | ||
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unrecognized compensation expense related to non-vested award | $ 24,400,000 | ||
Unrecognized compensation expense related to non-vested award, recognition period (in years) | 1 year 6 months 26 days | ||
Stock options | Minimum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Stock options | Minimum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Stock options | Maximum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 5 years | ||
Stock options | Maximum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock granted (in shares) | 375,000 | 379,000 | 261,000 |
Weighted average grant date fair value (in dollars per share) | $ 29.27 | $ 22.81 | $ 31.78 |
Total fair value of shares vesting | $ 9,900,000 | $ 3,800,000 | $ 1,800,000 |
Restricted Stock | Executive Officer Performance Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted Stock | Minimum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Restricted Stock | Minimum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Restricted Stock | Minimum | AMP Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 4 years | ||
Restricted Stock | Maximum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 5 years | ||
Restricted Stock | Maximum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted Stock | Maximum | AMP Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 5 years | ||
Performance Share Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock granted (in shares) | 479,000 | ||
Weighted average grant date fair value (in dollars per share) | $ 27 | ||
Total fair value of shares vesting | $ 7,900,000 | $ 3,400,000 | $ 0 |
Performance Share Units | Minimum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Performance percentage | 0.00% | ||
Performance Share Units | Maximum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Performance percentage | 200.00% | ||
Performance criteria is met | Performance Share Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Award vesting rights (percentage) | 33.33% | ||
One-year service period | Performance Share Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Award vesting rights (percentage) | 33.33% | ||
Award requisite service period (in years) | 1 year | ||
Two-year service period | Performance Share Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Award vesting rights (percentage) | 33.33% | ||
Award requisite service period (in years) | 2 years |
Stock-based Compensation - Weig
Stock-based Compensation - Weighted Average Valuation Assumptions (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend Yield | 0.40% | 0.40% | 0.30% |
Expected Volatility | 32.80% | 34.20% | 28.90% |
Risk-free Interest Rate | 1.90% | 1.30% | 1.60% |
Expected Term (in years) | 5 years 3 months 12 days | 5 years 3 months 12 days | 5 years 2 months 12 days |
Weighted-average Fair Value of Stock Options Granted (in dollars per share) | $ 8.55 | $ 7.10 | $ 8.41 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary Information about Stock Options Outstanding (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 25.56 | $ 24.21 |
$10.01-15.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 10.01 | |
Exercise price, upper range limit (in dollars per share) | $ 15 | |
Options Outstanding | 61 | |
Options outstanding, weighted average remaining contractual life (in years) | 9 months 15 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 14.11 | |
Options Exercisable | 61 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 14.11 | |
15.01-20.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 15.01 | |
Exercise price, upper range limit (in dollars per share) | $ 20 | |
Options Outstanding | 49 | |
Options outstanding, weighted average remaining contractual life (in years) | 2 years 1 month 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 19.92 | |
Options Exercisable | 49 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 19.92 | |
20.01-25.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 20.01 | |
Exercise price, upper range limit (in dollars per share) | $ 25 | |
Options Outstanding | 586 | |
Options outstanding, weighted average remaining contractual life (in years) | 8 years 1 month 21 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 22.67 | |
Options Exercisable | 191 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 22.73 | |
25.01-30.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 25.01 | |
Exercise price, upper range limit (in dollars per share) | $ 30 | |
Options Outstanding | 780 | |
Options outstanding, weighted average remaining contractual life (in years) | 8 years 4 months 13 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 27.50 | |
Options Exercisable | 244 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 28.09 | |
30.01-32.20 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 30.01 | |
Exercise price, upper range limit (in dollars per share) | $ 32.20 | |
Options Outstanding | 176 | |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 22 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 32.10 | |
Options Exercisable | 120 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 32.06 | |
10.01-32.20 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 10.01 | |
Exercise price, upper range limit (in dollars per share) | $ 32.20 | |
Options Outstanding | 1,652 | |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 8 months 9 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 25.56 | |
Options Exercisable | 665 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 25.39 |
Stock-based Compensation - Su87
Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Beginning Balance (In Shares) | 1,407 | ||
Granted (In Shares) | 518 | 634 | 338 |
Exercised (In Shares) | (184) | ||
Forfeited/expired (In Shares) | (89) | ||
Ending Balance (In Shares) | 1,652 | 1,407 | |
Expected to Vest (In Shares) | 894 | ||
Exercisable (In Shares) | 665 | ||
Weighted Average Exercise Price | |||
Beginning Balance (in dollars per share) | $ 24.21 | ||
Granted (in dollars per share) | 27.18 | ||
Exercised (in dollars per share) | 18.83 | ||
Forfeited/expired (in dollars per share) | 27.52 | ||
Ending Balance (in dollars per share) | 25.56 | $ 24.21 | |
Expected to Vest (in dollars per share) | 25.65 | ||
Exercisable (in dollars per share) | $ 25.39 | ||
Weighted Average Remaining Contractual Term (in Years) | |||
Outstanding | 7 years 8 months 9 days | ||
Expected to Vest | 8 years 6 months 22 days | ||
Exercisable | 6 years 4 months 10 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 23,607 | ||
Expected | 12,694 | ||
Exercisable | $ 9,616 | ||
Weighted Average Fair Value | |||
Outstanding (in dollars per share) | $ 8.12 | ||
Expected to Vest (in dollars per share) | 7.95 | ||
Exercisable (in dollars per share) | $ 8.35 |
Stock-based Compensation - Su88
Stock-based Compensation - Summary of Restricted Stock and Performance Share Units Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested shares subject to performance condition | 95,730 | ||
Total fair value of shares vesting | $ 9,900,000 | $ 3,800,000 | $ 1,800,000 |
Restricted Stock | |||
Beginning Balance (In Shares) | 953,000 | ||
Granted (In Shares) | 375,000 | 379,000 | 261,000 |
Vested (In Shares) | (325,000) | ||
Forfeited (In Shares) | (56,000) | ||
Ending Balance (In Shares) | 947,000 | 953,000 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 27.45 | ||
Granted (in dollars per share) | 29.27 | $ 22.81 | $ 31.78 |
Vested (in dollars per share) | 28.09 | ||
Forfeited (in dollars per share) | 27.27 | ||
Ending Balance (in dollars per share) | $ 27.96 | $ 27.45 | |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 7,900,000 | $ 3,400,000 | $ 0 |
Restricted Stock | |||
Beginning Balance (In Shares) | 693,000 | ||
Granted (In Shares) | 479,000 | ||
Vested (In Shares) | (81,000) | ||
Forfeited (In Shares) | (269,000) | ||
Ending Balance (In Shares) | 822,000 | 693,000 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 25.67 | ||
Granted (in dollars per share) | 27 | ||
Vested (in dollars per share) | 26.51 | ||
Forfeited (in dollars per share) | 25.74 | ||
Ending Balance (in dollars per share) | $ 26.31 | $ 25.67 |
Segments - Narrative (Details)
Segments - Narrative (Details) $ in Thousands | Jan. 29, 2016USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2017USD ($)segmentsegments | Dec. 31, 2016USD ($) | Oct. 15, 2016USD ($) | Dec. 31, 2015USD ($) |
Segment Reporting Information [Line Items] | |||||||||||||
Number of operating segments | segments | 3 | ||||||||||||
Number of reportable segments | segment | 3 | ||||||||||||
Restructuring Expenses | $ 3,400 | $ 800 | $ 13,500 | $ 300 | $ 15,500 | $ 4,700 | $ 17,994 | $ 20,218 | $ 0 | ||||
Operating Segments | Sales and Lease Ownership | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Loss related to lease termination | $ 3,500 | ||||||||||||
Operating Segments | Progressive Leasing | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Acquisition related costs | $ 3,700 | ||||||||||||
HomeSmart | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Charge related to write down of disposal group | $ 4,600 | ||||||||||||
Impairment of long-lived assets to be disposed of | $ 1,000 | 1,100 | |||||||||||
Other operating expense (income) | HomeSmart | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Charge related to write down of disposal group | 4,300 | ||||||||||||
Gain on sale of corporate office building | $ 11,100 | ||||||||||||
Facility Closing | Operating Segments | Sales and Lease Ownership | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Restructuring Expenses | 17,523 | 20,218 | |||||||||||
2016 Restructuring Program | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Restructuring Expenses | $ 15,000 | 20,218 | |||||||||||
2016 Restructuring Program | Facility Closing | Operating Segments | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Restructuring Expenses | $ 20,200 |
Segments - Information on Segme
Segments - Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 884,627 | $ 838,883 | $ 815,644 | $ 844,554 | $ 794,954 | $ 768,982 | $ 789,353 | $ 854,427 | $ 3,383,708 | $ 3,207,716 | $ 3,179,756 |
Earnings (Loss) Before Income Tax (Benefit) Expense: | 60,738 | $ 39,221 | $ 56,995 | $ 82,623 | 32,288 | $ 45,282 | $ 61,124 | $ 79,728 | 239,577 | 218,422 | 213,120 |
Assets: | 2,692,264 | 2,615,736 | 2,692,264 | 2,615,736 | |||||||
Depreciation and Amortization | 82,572 | 82,378 | 80,203 | ||||||||
Interest Expense: | 20,538 | 23,390 | 23,339 | ||||||||
Capital Expenditures: | 57,973 | 57,453 | 60,557 | ||||||||
Operating Segments | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,566,413 | 1,237,597 | 1,049,681 | ||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | 140,224 | 104,686 | 54,525 | ||||||||
Assets: | 1,022,413 | 919,487 | 1,022,413 | 919,487 | |||||||
Depreciation and Amortization | 29,048 | 30,727 | 28,870 | ||||||||
Interest Expense: | 18,577 | 20,042 | 21,959 | ||||||||
Capital Expenditures: | 8,213 | 6,084 | 8,175 | ||||||||
Operating Segments | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 34,925 | 24,080 | 2,845 | ||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | (11,289) | (9,273) | (1,964) | ||||||||
Assets: | 108,306 | 102,958 | 108,306 | 102,958 | |||||||
Depreciation and Amortization | 1,273 | 993 | 218 | ||||||||
Interest Expense: | 4,327 | 4,116 | 764 | ||||||||
Capital Expenditures: | 1,425 | 787 | 40 | ||||||||
Operating Segments | Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Inventory, including raw materials and work-in-process | 16,300 | 14,300 | 16,300 | 14,300 | |||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets: | 300,311 | 394,078 | 300,311 | 394,078 | |||||||
Operating Segments | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,782,370 | 1,946,039 | 2,127,230 | ||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | 110,642 | 123,009 | 160,559 | ||||||||
Assets: | 1,261,234 | 1,199,213 | 1,261,234 | 1,199,213 | |||||||
Depreciation and Amortization | 52,251 | 50,658 | 51,115 | ||||||||
Interest Expense: | (2,366) | (768) | 616 | ||||||||
Capital Expenditures: | 48,335 | 50,582 | 52,342 | ||||||||
Operating Segments | Canada Operations | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 18,256 | 12,434 | $ 3,431 | ||||||||
Assets: | $ 20,223 | $ 17,199 | $ 20,223 | $ 17,199 |
Segments - Information on Seg91
Segments - Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations (Footnote) (Details) - Operating Segments - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 15, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales and Lease Ownership | ||||
Segment Reporting Information [Line Items] | ||||
Loss related to lease termination | $ 3.5 | |||
Progressive Leasing | ||||
Segment Reporting Information [Line Items] | ||||
Progressive-Related Transaction Costs | $ 3.7 | |||
Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Inventory, including raw materials and work-in-process | $ 16.3 | $ 14.3 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Jan. 31, 2018 | Dec. 31, 2002USD ($)Property | Nov. 30, 2004USD ($)Property | Dec. 31, 2017USD ($)lease | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Related Party Transaction [Line Items] | ||||||
Lease term (in years) | 15 years | |||||
Proceeds from disposition of business, net of cash acquired | $ 1,141 | $ 35,899 | $ 13,976 | |||
Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Number of operating leases | lease | 10 | |||||
Properties sold | Property | 10 | 11 | ||||
Borrowings collateralized by the land and buildings | $ 5,000 | $ 6,800 | ||||
Lease term (in years) | 15 years | |||||
Aggregate annual rental | $ 800 | $ 800 | ||||
Subsequent Event | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Lease term (in years) | 5 years | |||||
Subsequent Event | Minimum | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Lease term (in years) | 5 years | |||||
Subsequent Event | Maximum | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Lease term (in years) | 8 years |
Quarterly Financial Informati93
Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 884,627 | $ 838,883 | $ 815,644 | $ 844,554 | $ 794,954 | $ 768,982 | $ 789,353 | $ 854,427 | $ 3,383,708 | $ 3,207,716 | $ 3,179,756 |
Gross Profit | 383,574 | 356,743 | 352,639 | 365,920 | 339,599 | 332,487 | 352,576 | 374,268 | |||
Earnings Before Income Taxes | 60,738 | 39,221 | 56,995 | 82,623 | 32,288 | 45,282 | 61,124 | 79,728 | 239,577 | 218,422 | 213,120 |
Net Earnings | $ 177,560 | $ 25,341 | $ 36,335 | $ 53,300 | $ 21,631 | $ 29,464 | $ 38,501 | $ 49,687 | $ 292,536 | $ 139,283 | $ 135,709 |
Earnings Per Share (in dollars per share) | $ 2.51 | $ 0.36 | $ 0.51 | $ 0.75 | $ 0.30 | $ 0.41 | $ 0.53 | $ 0.68 | $ 4.13 | $ 1.93 | $ 1.87 |
Earnings Per Share Assuming Dilution (in dollars per share) | $ 2.46 | $ 0.35 | $ 0.51 | $ 0.74 | $ 0.30 | $ 0.40 | $ 0.53 | $ 0.68 | $ 4.06 | $ 1.91 | $ 1.86 |
Quarterly Financial Informati94
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||||||||
Restructuring Expenses | $ 3,400 | $ 800 | $ 13,500 | $ 300 | $ 15,500 | $ 4,700 | $ 17,994 | $ 20,218 | $ 0 | ||
Non-cash provisional income tax benefit | 137,000 | ||||||||||
Remeasurement of net deferred tax liabilities | 140,000 | ||||||||||
Estimated expense from loss of manufacturing deduction and other | $ 3,000 | ||||||||||
Retirement benefits expense | $ 3,700 | ||||||||||
Building | Other Segments | Operating Segments | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain on sale of corporate office building | 11,100 | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | HomeSmart | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Charge related to write down of disposal group | $ 4,600 | ||||||||||
Impairment of long-lived assets to be disposed of | $ 1,000 | $ 1,100 |
Compensation Arrangements - Def
Compensation Arrangements - Deferred Compensation (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Deferred compensation plan liability | $ 12,900 | $ 12,000 | ||
Cash surrender value of the policies | 17,100 | 15,600 | ||
Gain on cash surrender value | 1,500 | 200 | $ 800 | |
Benefits paid | $ 2,300 | $ 1,400 | $ 1,700 | |
Employer matching contribution, maximum (percentage) | 100.00% | |||
Employee | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Percentage of receipt of base compensation (up to) | 75.00% | |||
Non Employee Director | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Percentage of receipt of base compensation (up to) | 100.00% | |||
Subsequent Event | Nonqualified Plan | Employee | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Maximum contribution per employee (percentage) | 4.00% | |||
Maximum annual contributions per employee | $ 11 | |||
Vesting period | 3 years | |||
Subsequent Event | First contribution | Nonqualified Plan | Employee | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Employer matching contribution, maximum (percentage) | 100.00% | |||
Maximum contribution per employee (percentage) | 3.00% | |||
Subsequent Event | Second contribution | Nonqualified Plan | Employee | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Employer matching contribution, maximum (percentage) | 50.00% | |||
Maximum contribution per employee (percentage) | 2.00% |
Compensation Arrangements - 401
Compensation Arrangements - 401(k) Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum 401 (k) plan contribution rates as percentage of employees earnings | 75.00% | ||
Employer matching contribution, maximum (percentage) | 100.00% | ||
Initial employer 401(k) matching contribution to employee (percentage) | 4.00% | ||
Employer 401 (k) matching contribution to employee, 50% Maximum | 50.00% | ||
Compensation expense related to 401(k) savings plan | $ 5.7 | $ 5.4 | $ 4.7 |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial employer 401(k) matching contribution to employee (percentage) | 3.00% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial employer 401(k) matching contribution to employee (percentage) | 2.00% |