Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 08, 2019 | Jun. 30, 2018 | |
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 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 67,202,919 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,458,523,383 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Cash and Cash Equivalents | $ 15,278 | $ 51,037 |
Investments | 0 | 20,385 |
Accounts Receivable (net of allowances of $62,704 in 2018 and $46,946 in 2017) | 98,159 | 99,887 |
Lease Merchandise (net of accumulated depreciation and allowances of $816,928 in 2018 and $760,722 in 2017) | 1,318,470 | 1,152,135 |
Loans Receivable (net of allowances and unamortized fees of $19,941 in 2018 and $19,829 in 2017) | 76,153 | 86,112 |
Property, Plant and Equipment, Net | 229,492 | 207,687 |
Goodwill | 733,170 | 622,948 |
Other Intangibles, Net | 228,600 | 235,551 |
Income Tax Receivable | 29,148 | 100,023 |
Prepaid Expenses and Other Assets | 98,222 | 116,499 |
Total Assets | 2,826,692 | 2,692,264 |
LIABILITIES & SHAREHOLDERS’ EQUITY: | ||
Accounts Payable and Accrued Expenses | 293,153 | 304,810 |
Deferred Income Taxes Payable | 267,500 | 222,592 |
Customer Deposits and Advance Payments | 80,579 | 68,060 |
Debt | 424,752 | 368,798 |
Total Liabilities | 1,065,984 | 964,260 |
Commitments and Contingencies | 0 | 0 |
Shareholders’ Equity: | ||
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at December 31, 2018 and 2017; Shares Issued: 90,752,123 at December 31, 2018 and 2017 | 45,376 | 45,376 |
Additional Paid-in Capital | 278,922 | 270,043 |
Retained Earnings | 2,005,344 | 1,819,524 |
Accumulated Other Comprehensive Income (Loss) | (1,087) | 774 |
Total Stockholders' Equity before Treasury Stock | 2,328,555 | 2,135,717 |
Less: Treasury Shares at Cost | ||
Common Stock: 23,567,979 Shares at December 31, 2018 and 20,733,010 at December 31, 2017 | (567,847) | (407,713) |
Total Shareholders’ Equity | 1,760,708 | 1,728,004 |
Total Liabilities & Shareholders’ Equity | $ 2,826,692 | $ 2,692,264 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowances | $ 62,704 | $ 46,946 |
Lease Merchandise, accumulated depreciation | 816,928 | 760,722 |
Loans Receivable, allowances | $ 19,941 | $ 19,829 |
Common Stock, Par Value (in dollars per share) | $ 0.50 | $ 0.50 |
Common Stock, Authorized (in shares) | 225,000,000 | 225,000,000 |
Common Stock, Issued (in shares) | 90,752,123 | 90,752,123 |
Treasury Shares (in shares) | 23,567,979 | 20,733,010 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUES: | |||
Revenues | $ 3,828,923 | $ 3,383,708 | $ 3,207,716 |
COSTS AND EXPENSES: | |||
Depreciation of Lease Merchandise | 1,727,904 | 1,448,631 | 1,304,295 |
Operating Expenses | 1,618,423 | 1,403,985 | 1,351,785 |
Restructuring Expenses, Net | 1,105 | 17,994 | 20,218 |
Other Operating Income | (2,116) | (535) | (6,446) |
Costs and Expenses, Total | 3,539,315 | 3,129,009 | 2,965,040 |
OPERATING PROFIT | 289,608 | 254,699 | 242,676 |
Interest Income | 454 | 1,835 | 2,699 |
Interest Expense | (16,440) | (20,538) | (23,390) |
Impairment of Investment | (20,098) | 0 | 0 |
Other Non-Operating (Expense) Income, Net | (1,320) | 3,581 | (3,563) |
EARNINGS BEFORE INCOME TAX EXPENSE (BENEFIT) | 252,204 | 239,577 | 218,422 |
INCOME TAX EXPENSE (BENEFIT) | 55,994 | (52,959) | 79,139 |
NET EARNINGS | $ 196,210 | $ 292,536 | $ 139,283 |
EARNINGS PER SHARE (IN DOLLARS PER SHARE) | $ 2.84 | $ 4.13 | $ 1.93 |
EARNINGS PER SHARE ASSUMING DILUTION (IN DOLLARS PER SHARE) | $ 2.78 | $ 4.06 | $ 1.91 |
Lease Revenues and Fees | |||
REVENUES: | |||
Revenues | $ 3,506,418 | $ 3,000,231 | $ 2,780,824 |
Retail Sales | |||
REVENUES: | |||
Revenues | 31,271 | 27,465 | 29,418 |
COSTS AND EXPENSES: | |||
Cost of goods and services sold | 19,819 | 17,578 | 18,580 |
Non-Retail Sales | |||
REVENUES: | |||
Revenues | 207,262 | 270,253 | 309,446 |
COSTS AND EXPENSES: | |||
Cost of goods and services sold | 174,180 | 241,356 | 276,608 |
Franchise Royalties and Fees | |||
REVENUES: | |||
Revenues | 44,815 | 48,278 | 58,350 |
Interest and Fees on Loans Receivable | |||
REVENUES: | |||
Revenues | 37,318 | 34,925 | 24,080 |
Other | |||
REVENUES: | |||
Revenues | $ 1,839 | $ 2,556 | $ 5,598 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings | $ 196,210 | $ 292,536 | $ 139,283 |
Other Comprehensive (Loss) Income: | |||
Foreign Currency Translation Adjustment | (1,861) | 1,305 | (14) |
Total Other Comprehensive (Loss) Income | (1,861) | 1,305 | (14) |
Comprehensive Income | $ 194,349 | $ 293,841 | $ 139,269 |
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, 2015 | (18,152) | |||||
Beginning 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) | ||||
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) | ||||
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends | (8,661) | (8,661) | ||||
Stock-Based Compensation | 26,852 | 26,852 | ||||
Reissued Shares (in shares) | 915 | |||||
Reissued Shares | (9,372) | $ 8,601 | (17,973) | |||
Net Earnings | 196,210 | 196,210 | ||||
Foreign Currency Translation Adjustment | (1,861) | (1,861) | ||||
Repurchased Shares (in shares) | (3,750) | |||||
Repurchased Shares | (168,735) | $ (168,735) | ||||
Ending Balance (in shares) at Dec. 31, 2018 | (23,568) | |||||
Ending Balance at Dec. 31, 2018 | 1,760,708 | $ (567,847) | $ 45,376 | $ 278,922 | 2,005,344 | $ (1,087) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Opening Balance Sheet Adjustment - ASC 606 | Accounting Standards Update 2014-09 | $ (1,729) | $ (1,729) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retained Earnings | |||
Dividends, per share (in dollars per share) | $ 0.1250 | $ 0.1125 | $ 0.1025 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES: | |||
Net Earnings | $ 196,210 | $ 292,536 | $ 139,283 |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | |||
Depreciation of Lease Merchandise | 1,727,904 | 1,448,631 | 1,304,295 |
Other Depreciation and Amortization | 94,150 | 82,572 | 82,378 |
Accounts Receivable Provision | 268,088 | 203,389 | 167,923 |
Provision for Credit Losses on Loans Receivable | 21,063 | 20,973 | 11,251 |
Stock-Based Compensation | 28,182 | 27,400 | 21,470 |
Deferred Income Taxes | 48,359 | (59,201) | (35,162) |
Impairment of Investment | 20,098 | 0 | 0 |
Other Changes, Net | (2,198) | (3,964) | (2,751) |
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions: | |||
Additions to Lease Merchandise | (2,234,646) | (1,976,012) | (1,615,064) |
Book Value of Lease Merchandise Sold or Disposed | 398,748 | 415,607 | 433,464 |
Accounts Receivable | (270,888) | (208,947) | (149,826) |
Prepaid Expenses and Other Assets | 5,903 | 2,711 | 1,229 |
Income Tax Receivable | 70,875 | (88,139) | 167,290 |
Accounts Payable and Accrued Expenses | (20,367) | (2,736) | (49,186) |
Accrued Litigation Expense | 0 | 1,314 | (4,737) |
Customer Deposits and Advance Payments | 5,017 | 3,001 | (4,621) |
Cash Provided by Operating Activities | 356,498 | 159,135 | 467,236 |
INVESTING ACTIVITIES: | |||
Investments in Loans Receivable | (64,914) | (77,951) | (72,897) |
Proceeds from Loans Receivable | 57,328 | 59,641 | 64,739 |
Proceeds from Investments | 3,066 | 2,658 | 0 |
Outflows on Purchases of Property, Plant & Equipment | (78,845) | (57,973) | (57,453) |
Proceeds from Property, Plant, and Equipment | 9,191 | 12,705 | 19,393 |
Outflows on Acquisitions of Businesses and Customer Agreements, Net of Cash Acquired | (189,901) | (145,558) | (9,762) |
Proceeds from Dispositions of Businesses and Customer Agreements, Net of Cash Disposed | 942 | 1,141 | 35,899 |
Cash Used in Investing Activities | (263,133) | (205,337) | (20,081) |
FINANCING ACTIVITIES: | |||
Proceeds from Debt | 240,800 | 27,875 | 98,928 |
Repayments on Debt | (184,883) | (162,910) | (208,607) |
Acquisition of Treasury Stock | (168,735) | (62,550) | (34,525) |
Dividends Paid | (6,243) | (7,962) | (7,420) |
Issuance of Stock Under Stock Option Plans | 7,975 | 3,457 | 550 |
Shares Withheld for Tax Payments | (17,347) | (6,177) | (2,457) |
Debt Issuance Costs | (535) | (3,130) | (132) |
Cash Used in Financing Activities | (128,968) | (211,397) | (153,663) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (156) | 75 | 127 |
(Decrease) Increase in Cash and Cash Equivalents | (35,759) | (257,524) | 293,619 |
Cash and Cash Equivalents at Beginning of Year | 51,037 | 308,561 | 14,942 |
Cash and Cash Equivalents at End of Year | 15,278 | 51,037 | 308,561 |
Net Cash Paid (Received) During the Year: | |||
Interest | 16,243 | 20,492 | 22,511 |
Income Taxes | $ (63,829) | $ 98,296 | $ (54,258) |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , the Company’s operating segments are Progressive Leasing, Aaron’s Business and Dent-A-Med, Inc. ("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 through a lease-to-own transaction. Progressive Leasing consequently has no stores of its own, but rather offers lease-purchase solutions to the customers of traditional and e-commerce retailers. The following table presents invoice volume for Progressive Leasing: For the Year Ended December 31 (Unaudited and In Thousands) 2018 2017 2016 Progressive Leasing Invoice Volume 1 $ 1,429,550 $ 1,160,732 $ 884,812 1 Invoice volume is defined as the retail price of lease merchandise acquired and then leased to customers during the period, net of returns. The Aaron’s Business segment offers furniture, consumer electronics, home appliances and accessories to consumers primarily with a month-to-month, lease-to-own agreement with no credit needed through the Company’s Aaron’s-branded stores in the United States and Canada and its e-commerce website. 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 ("Woodhaven"), which manufactures and supplies the majority of the upholstered furniture and bedding leased and sold in Company-operated and franchised stores. The Company acquired the Aaron's-branded store operations and related assets of 13 franchisees during the year ended December 31, 2018 . 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 at that time. Refer to Note 2 to these consolidated financial statements for additional discussion of franchisee acquisitions. On May 13, 2016 , the Company sold the 82 Company-operated HomeSmart stores and ceased operations of that segment. See the Assets Held for Sale section below for further discussion of the disposition. The following table presents store count by ownership type for the Aaron’s Business operations: Stores at December 31 (Unaudited) 2018 2017 2016 Company-operated Aaron's Branded Stores 1,312 1,175 1,165 Franchised Stores 1 377 551 699 Systemwide Stores 1,689 1,726 1,864 1 As of December 31, 2018 , 2017 and 2016 , the Company has awarded 388 , 580 and 749 franchises, respectively. 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 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 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 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 Progressive Leasing segment offers virtual lease-purchase solutions, typically over 12 months , to the customers of traditional and e-commerce retailers. 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 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. 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. Aaron's Business lease revenues are recognized as revenue net of related sales taxes in the month they are earned. Lease payments received prior to the month earned are recorded as deferred lease revenue, and this amount is included in customer deposits and advance payments 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 as operating expense over the estimated lease term. The capitalized costs have been classified within prepaid expenses and other assets in the accompanying consolidated balance sheets. 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 retail sale of merchandise to customers are recognized at the point of sale. Revenues for the non-retail sale of merchandise to franchisees are recognized when control transfers to the franchisee, which is upon delivery of the merchandise. 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 has no current plans to franchise additional Aaron's stores. Current franchisees pay an ongoing royalty of 6% of the weekly cash revenue collections, which is recognized as the fees become due. The Company received a non-refundable initial franchise fee from current franchisees from $15,000 to $50,000 per store depending upon market size. Franchise fees and area development fees were generated from the sale of rights to develop, own and operate sales and lease ownership stores and pre-opening services provided by Aaron's to assist in the start-up operations of the stores. The Company considers the rights to the intellectual property and the pre-opening services to be a single performance obligation, resulting in the recognition of revenue ratably over time from the store opening date throughout the remainder of the franchise agreement term. The Company believes that this period of time is most representative of the time period in which the customer realizes the benefits of having the right to access the Company's intellectual property. The deferred revenue balance related to initial franchise fees was $1.4 million as of December 31, 2018 and is included in customer deposits and advance payments on the consolidated balance sheets. Revenue related to initial franchise fees recognized during the year ended December 31, 2018 was $1.4 million . The Company guarantees certain debt obligations of some of the franchisees and receives guarantee fees based on the outstanding debt obligations of such franchisees. Refer to Note 9 of these consolidated financial statements for additional discussion of the Company's franchise-related guarantee obligation. The Company also charges fees for advertising efforts that benefit the franchisees. Such fees are recognized at the time the advertising takes place and are presented as franchise royalties and fees in the Company's consolidated statements of earnings. Initial direct costs related to the pre-opening services provided to franchisees are immaterial and are expensed as incurred. These expenses have been classified as operating expenses in the Company's consolidated statements of earnings. 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, if applicable. The merchant fee discount represents a pre-negotiated, nonrefundable discount that generally ranges from 3% to 25% of the loan face value. The discount is designed to cover the risk of loss related to the portfolio of cardholder charges and 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 may also include a promotional fee discount, which generally ranges from 1% to 8% . The promotional fee discount is intended to compensate the holder of the loan receivable (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 unamortized promotional fee discount is netted on the consolidated balance sheet in loans receivable. The customer is typically required to make periodic minimum payments of at least 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 25% to 34.99% , 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 collectibility 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 collectibility is reasonably assured. Annual fees and other fees discussed are recognized as interest and fee revenue on loans receivable in the consolidated statements of earnings. 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 operations is recorded at cost and includes overhead from production facilities, shipping costs and warehousing costs. The Company’s Progressive Leasing segment, at which substantially all merchandise is on lease, depreciates merchandise generally over 12 months . The Company-operated stores begin depreciating merchandise at the earlier of 12 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. Depreciation is accelerated upon early payout. The following is a summary of lease merchandise, net of accumulated depreciation and allowances: December 31, (In Thousands) 2018 2017 Merchandise on Lease $ 1,053,684 $ 908,268 Merchandise Not on Lease 264,786 243,867 Lease Merchandise, net of Accumulated Depreciation and Allowances $ 1,318,470 $ 1,152,135 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. Generally, 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) 2018 2017 2016 Beginning Balance $ 35,629 $ 33,399 $ 33,405 Merchandise Written off, net of Recoveries (181,252 ) (143,230 ) (134,110 ) Provision for Write-offs 192,317 145,460 134,104 Ending Balance $ 46,694 $ 35,629 $ 33,399 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 $75.2 million , $67.3 million and $69.9 million in 2018 , 2017 and 2016 , 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 $37.7 million , $34.0 million and $40.8 million for the years ended December 31, 2018 , 2017 and 2016 , 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 $28.3 million , $22.5 million and $22.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The prepaid advertising asset was $1.6 million and $1.4 million at December 31, 2018 and 2017 , 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, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), performance share units ("PSUs") and awards issuable under the Company's employee stock purchase plan ("ESPP") (collectively, "share-based awards") as determined under the treasury stock method. The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2018 2017 2016 Weighted Average Shares Outstanding 69,128 70,837 72,354 Dilutive Effect of Share-Based Awards 1,469 1,284 659 Weighted Average Shares Outstanding Assuming Dilution 70,597 72,121 73,013 Approximately 347,000 , 140,000 and 939,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the years ended December 31, 2018 , 2017 and 2016 , 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, investments classified as held-to-maturity securities consisted of British pound-denominated notes issued by PerfectHome, which is based in the U.K. The PerfectHome Notes ("Notes") consisted of outstanding principal and accrued interest of £15.1 million ( $20.4 million ) at December 31, 2017. PerfectHome was a variable interest entity ("VIE") because it did not have sufficient equity at risk. However, the Company was not the primary beneficiary and did not consolidate PerfectHome since the Company lacked power through voting or similar rights to direct the activities that most significantly affected PerfectHome's economic performance. During the second quarter of 2018, PerfectHome's liquidity deteriorated significantly due to continuing operating losses and the senior lender's decision to no longer provide additional funding under a secured revolving debt agreement resulting from PerfectHome's default of certain covenants. Additionally, the senior lender notified PerfectHome in May 2018 of its intent to exercise remedies available under its credit documentation, which included the right to call its outstanding debt. Furthermore, the U.K. governing authority for rent-to-own companies, the Financial Conduct Authority, proposed new regulatory measures which could adversely affect PerfectHome's business. In July 2018, PerfectHome entered into the U.K.’s insolvency process and was subsequently acquired by the senior lender. The Company believes it will not receive any further payments on its subordinated secured Notes. As a result, the Company recorded a full impairment of the PerfectHome investment of $20.1 million during the second quarter of 2018. 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 real estate leasing activities and vendor consideration) and franchisee obligations. Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2018 2017 Customers $ 60,879 $ 48,661 Corporate 18,171 23,431 Franchisee 19,109 27,795 $ 98,159 $ 99,887 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) 2018 2017 2016 Beginning Balance $ 46,946 $ 35,690 $ 34,861 Accounts Written Off, net of Recoveries (252,330 ) (192,133 ) (167,094 ) Accounts Receivable Provision 268,088 203,389 167,923 Ending Balance $ 62,704 $ 46,946 $ 35,690 The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the fiscal years presented: Year Ended December 31, (In Thousands) 2018 2017 2016 Bad Debt Expense $ 227,960 $ 170,574 $ 128,333 Provision for Returns and Uncollected Renewal Payments 40,128 32,815 39,590 Accounts Receivable Provision $ 268,088 $ 203,389 $ 167,923 Loans Receivable Gross loans receivable represents the principal balances of credit card charges at DAMI’s participating merchants that remain due from 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. 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 and other factors. Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2018 and 2017 by Fair Isaac and Company (FICO) score as determined at the time of loan origination: December 31, FICO Score Category 2018 2017 600 or Less 3.7 % 1.7 % Between 600 and 700 77.9 % 76.5 % 700 or Greater 18.4 % 21.8 % 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 20 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 and amortized over the lesser of the lease term or the asset's useful life. Depreciation expense for property, plant and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $61.2 million , $54.8 million and $53.6 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property, plant and equipment, was $14.1 million , $11.5 million and $9.2 million during the years ended December 31, 2018 , 2017 and 2016 , 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) 2018 2017 Prepaid Expenses $ 30,763 $ 31,509 Prepaid Insurance 27,948 36,735 Assets Held for Sale 6,589 10,118 Deferred Tax Asset 8,761 11,589 Other Assets 24,161 26,548 $ 98,222 $ 116,499 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, 2018 and 2017 . 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, 2018 and 2017 was $6.6 million and $10.1 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 $0.2 million , $0.7 million and $5.8 million during the years ended December 31, 2018 , 2017 and 2016 , respectively, in other operating income 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. The Company recognized net gains of $0.4 million related to the disposal of certain assets held for sale during the year ended December 31, 2018 of land and buildings that the Com |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During the years ended December 31, 2018 , 2017 and 2016 , cash payments, net of cash acquired, related to the acquisitions of businesses and contracts were $189.9 million , $145.6 million and $9.8 million , respectively. Cash payments made during the years ended December 31, 2018, 2017 and 2016 principally relate to the acquisitions of Aaron's-branded franchised stores as described below. The franchisee acquisitions have been accounted for as business combinations and the results of operations of the acquired businesses are included in the Company’s results of operations from their dates of acquisition. The effect of the Company’s other acquisitions of businesses and contracts to the consolidated financial statements for the years ended December 31, 2018 , 2017 and 2016 was not significant. Franchisee Acquisitions - 2018 During 2018, the Company acquired 152 Aaron's-branded franchised stores operated by franchisees for an aggregated purchase price of $189.8 million , exclusive of the settlement of pre-existing receivables and post-closing working capital settlements. The acquired operations generated revenues of $72.0 million and earnings before income taxes of $0.8 million from their respective acquisition dates during 2018 through December 31, 2018 which are included in our consolidated statements of earnings. The results of the acquired operations were negatively impacted by acquisition-related transaction and transition costs and amortization expense of the various intangible assets recorded from the acquisitions. The revenues and losses 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 as revenue to the Company from the franchisees during the year ended December 31, 2018 had the transaction not been completed. Acquisition Accounting The 2018 acquisitions are expected to benefit the Company's omnichannel platform through added scale, strengthening its presence in certain geographic markets, and enhancing operational control, including compliance, and by enabling it to execute its business transformation initiatives on a broader scale. The following table presents summaries of the preliminary fair value of the assets acquired and liabilities assumed in the franchisee acquisitions as of the respective acquisition dates: (in Thousands) Amounts Recognized as of Acquisition Dates Measurement Period Adjustments 1 Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 189,826 $ — $ 189,826 Add: Settlement of Pre-existing Relationship 5,405 — 5,405 Less: Working Capital Adjustments 241 (86 ) 155 Aggregated Consideration Transferred 195,472 (86 ) 195,386 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 43 — 43 Lease Merchandise 59,587 29 59,616 Property, Plant and Equipment 5,493 75 5,568 Other Intangibles 2 25,069 (539 ) 24,530 Prepaid Expenses and Other Assets 1,060 108 1,168 Total Identifiable Assets Acquired 91,252 (327 ) 90,925 Accounts Payable and Accrued Expenses (826 ) (26 ) (852 ) Customer Deposits and Advance Payments (5,156 ) — (5,156 ) Total Liabilities Assumed (5,982 ) (26 ) (6,008 ) Goodwill 3 110,202 267 110,469 Net Assets Acquired (before Goodwill) $ 85,270 $ (353 ) $ 84,917 1 The acquisition accounting adjustments relate to finalizing information that existed as of the acquisition date regarding the valuation of certain intangible assets and lease merchandise and obtaining additional information regarding acquired other assets. 2 Identifiable intangible assets are further disaggregated in the table set forth below. 3 The total goodwill recognized in conjunction with the franchisee acquisitions, 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, obtaining additional information regarding acquired other assets as well as customer deposits and advance payments, and finalizing certain working capital adjustments. The estimated intangible assets attributable to the franchisee acquisitions are comprised of the following: Fair Value (in thousands) Weighted Average Useful Life (in years) Non-compete Agreements $ 1,872 3.0 Customer Contracts 7,864 1.0 Customer Relationships 10,131 3.0 Reacquired Franchise Rights 4,663 3.9 Total Acquired Intangible Assets 1 $ 24,530 1 Acquired definite-lived intangible assets have a total weighted average life of 2.5 years. During the year ended December 31, 2018 , the Company incurred $1.3 million of acquisition-related costs in connection with the franchisee acquisitions. These costs were included in operating expenses in the consolidated statements of earnings. Franchisee Acquisition - 2017 On July 27, 2017 , the Company acquired substantially all of the assets and liabilities of the store operations of a franchisee, SEI, 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 operational control, including compliance, and enabling the Company to execute its business transformation initiatives on a broader scale. The acquired operations generated revenues and earnings before income taxes of $58.3 million and $2.5 million from July 27, 2017 through December 31, 2017 and revenues and earnings before income taxes of $129.4 million and $11.0 million for the year ended December 31, 2018 , which are included in our consolidated statements of earnings. Included in the earnings before income taxes of the acquired 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 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, 2018 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 a summary of the fair value of the assets acquired and liabilities assumed in the SEI franchisee acquisition: (In Thousands) Final Amounts Recognized as of Acquisition Date Purchase Price $ 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 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 34 Receivables 1,345 Lease Merchandise 40,941 Property, Plant and Equipment 8,832 Other Intangibles 1 13,779 Prepaid Expenses and Other Assets 440 Total Identifiable Assets Acquired 65,371 Accounts Payable and Accrued Expenses (6,698 ) Customer Deposits and Advance Payments (2,500 ) Capital Leases (4,514 ) Total Liabilities Assumed (13,712 ) Goodwill 2 91,881 Net Assets Acquired $ 51,659 1 Identifiable intangible assets are further disaggregated in the table set forth below. 2 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 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 2,154 1.0 Customer Relationships 3,215 2.0 Reacquired Franchise Rights 3,640 4.1 Favorable Operating Leases 3,526 11.3 Total Acquired Intangible Assets 1 $ 13,779 1 Acquired definite-lived intangible assets have a total weighted average life of 5.1 years. The Company incurred $2.1 million of acquisition-related costs in connection with the franchisee acquisition, substantially all of which were incurred during the third quarter of 2017. These costs were included in operating expenses in the consolidated statements of earnings. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 Trade Name $ 53,000 $ 53,000 Goodwill 733,170 622,948 Indefinite-lived Intangible Assets $ 786,170 $ 675,948 The following table provides information related to the carrying amount of goodwill by operating segment: (In Thousands) Progressive Leasing Aaron’s Business Total Balance at January 1, 2017 $ 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 Acquisitions — 110,469 110,469 Disposals, Currency Translation and Other Adjustments — (260 ) (260 ) Acquisition Accounting Adjustments — 13 13 Balance at December 31, 2018 $ 288,801 $ 444,369 $ 733,170 Definite-Lived Intangible Assets The following table summarizes information related to definite-lived intangible assets at December 31 : 2018 2017 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal Use Software $ 14,000 $ (14,000 ) $ — $ 14,000 $ (14,000 ) $ — Technology 68,550 (32,749 ) 35,801 68,550 (25,639 ) 42,911 Merchant Relationships 181,000 (71,101 ) 109,899 181,000 (56,018 ) 124,982 Other Intangibles 1 42,165 (12,265 ) 29,900 19,558 (4,900 ) 14,658 Total $ 305,715 $ (130,115 ) $ 175,600 $ 283,108 $ (100,557 ) $ 182,551 1 Other intangibles primarily include favorable operating leases, customer relationships, customer lease contracts, non-compete agreements, reacquired franchise rights and the expanded customer base intangible asset. 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 $33.0 million , $27.7 million and $28.8 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2019 $ 35,612 2020 28,537 2021 26,198 2022 23,123 2023 22,803 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ (10,389 ) $ — $ — $ (12,927 ) $ — The Company maintains the Aaron's, Inc. Deferred Compensation Plan as described in Note 16 to these consolidated financial statements. The liability is recorded in accounts payable and accrued expenses in the consolidated balance sheets. 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, 2018 December 31, 2017 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Held for Sale $ — $ 6,589 $ — $ — $ 10,118 $ — 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 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, 2018 December 31, 2017 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 PerfectHome Notes 1 $ — $ — $ — $ — $ — $ 20,385 Fixed-Rate Long Term Debt 2 — (183,765 ) — — (273,476 ) — 1 The PerfectHome Notes were carried at cost, which approximated fair value. The Company recorded a full impairment of the PerfectHome notes during the year ended December 31, 2018 . Refer to Note 1 to the consolidated financial statements for further discussion of the PerfectHome impairment. 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 $180.0 million and $265.0 million at December 31, 2018 and 2017 , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 Land $ 19,950 $ 19,768 Buildings and Improvements 67,081 67,053 Leasehold Improvements and Signs 83,867 69,407 Fixtures and Equipment 210,747 180,553 Software - Internal Use 106,671 86,208 Assets Under Capital Leases: with Related Parties 872 4,032 with Unrelated Parties 9,487 12,426 Construction in Progress 15,104 10,863 513,779 450,310 Less: Accumulated Depreciation and Amortization 1 (284,287 ) (242,623 ) $ 229,492 $ 207,687 1 Accumulated amortization of internal-use software development costs amounted to $56.9 million and $42.6 million as of December 31, 2018 and 2017 , respectively. Amortization expense on assets recorded under capital leases is included in operating expenses and was $0.8 million , $1.5 million and $1.7 million for the years ended December 31, 2018 , 2017 and 2016 , 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 $0.8 million and $3.6 million in accumulated depreciation and amortization as of December 31, 2018 and 2017 , respectively. Assets under capital leases with unrelated parties included $8.3 million and $4.7 million in accumulated depreciation and amortization as of December 31, 2018 and 2017 , respectively. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans Receivables | LOANS RECEIVABLE The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2018 2017 Credit Card Loans 1 $ 90,406 $ 89,728 Acquired Loans 2 5,688 16,213 Loans Receivable, Gross 96,094 105,941 Allowance for Loan Losses (12,970 ) (11,454 ) Unamortized Fees (6,971 ) (8,375 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 76,153 $ 86,112 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 2018 2017 30-59 Days Past Due 6.9 % 7.1 % 60-89 Days Past Due 3.4 % 3.6 % 90 or more Days Past Due 4.3 % 4.1 % Past Due Loans Receivable 14.6 % 14.8 % Current Loans Receivable 85.4 % 85.2 % Balance of Loans Receivable on Nonaccrual Status $ 2,110 $ 2,016 Balance of Loans Receivable Greater Than 90 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) 2018 2017 Beginning Balance 1 $ 11,454 $ 6,624 Provision for Loan Losses 21,063 20,973 Charge-offs (21,190 ) (16,852 ) Recoveries 1,643 709 Ending Balance $ 12,970 $ 11,454 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, 2018 | |
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 2018 2017 Revolving Facility $ 16,000 $ — Senior Unsecured Notes, 3.95%, Due in Installments through April 2018 — 24,994 Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 179,750 239,784 Term Loan, Due in Installments through September 2022 223,837 96,272 Capital Lease Obligation: with Related Parties 123 1,314 with Unrelated Parties 5,042 6,434 Total Debt 424,752 368,798 Less: Current Maturities 83,778 97,192 Long-Term Debt $ 340,974 $ 271,606 1 Total debt as of December 31, 2018 and 2017 includes unamortized debt issuance costs of $1.4 million and $1.5 million , respectively. The Company also recorded $2.6 million and $3.2 million of debt issuance costs as of December 31, 2018 and 2017 related to the revolving credit facility within prepaid expenses and other assets in the consolidated balance sheets. Revolving Credit Agreement and Term Loan On October 23, 2018, the Company amended its second amended and restated revolving credit and term loan agreement (the "Amended Agreement") primarily to increase the term loan to $225.0 million from the $87.5 million remaining principal outstanding. The incremental borrowings were used for general corporate and working capital purposes and for the repayment of outstanding borrowings under the revolver, under which repayments were made in the fourth quarter of 2018. The Amended Agreement provides for quarterly term loan repayment installments of $5.6 million , payable on the last day of each March, June, September, and December beginning on December 31, 2019, with the remaining principal balance payable upon the maturity date of September 18, 2022 . The term loan interest rate was 3.78% as of December 31, 2018 . The maximum revolving credit commitment of $400.0 million remained unchanged under the Amended Agreement. The Company concluded the Amended Agreement constituted a debt modification and is deferring approximately $0.4 million of lender fees, with third party legal and administrative fees of less than $0.1 million expensed during the fourth quarter of 2018. The interest rate on the term loan bears 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. The revolving credit and term loan 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, 2018 , the amount available under the revolving credit component of the Amended Agreement was reduced by approximately $16.0 million for outstanding borrowings and $11.0 million for our outstanding letters of credit, resulting in availability of $373.0 million . Senior Unsecured Notes 2011 Note Purchase Agreement Pursuant to the note purchase agreement dated as of July 5, 2011, and further amended on April 14, 2014, 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 which bore interest at a rate of 3.95% and matured on April 27, 2018. During 2018, the Company repaid the remaining $25.0 million outstanding under the 3.95% senior unsecured notes. 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, 2018 , the Company was in compliance with all covenants related to its outstanding debt. Capital Leases with Related Parties As of December 31, 2018 , the Company had three 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 $0.2 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 2004. In January 2018, the Company renewed its remaining lease agreements to lease the land and buildings 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) 2019 $ 84,175 2020 84,644 2021 82,906 2022 174,440 2023 — Thereafter — Total $ 426,165 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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 recognized during the year ended December 31, 2017 . The Company lost its 2017 manufacturing deduction, which was limited to 9% of taxable income, as the Company was 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. The Company is estimating that it will again be in a net operating loss position for tax purposes in 2018 as a result of the 100% expense deduction on qualified depreciable assets. The net operating loss and credits earned during 2017 have been carried back. As of December 31, 2018 , the Company is anticipating refunds of $14.5 million related to the carrybacks and $5.4 million related to overpayments on the federal returns. At December 31, 2018 , the Company had $6.9 million of state tax credit carryforwards, which will begin to expire in 2022, and approximately $267 million of federal tax net operating loss carryforwards, which can be carried forward indefinitely and will not expire. In connection with the provisional analysis, the Company recorded an immaterial income tax net benefit during the year ended December 31, 2018 and finalized its analysis over the one-year measurement period that ended on December 22, 2018. 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, had a $100.0 million income tax receivable as of December 31, 2017 . The Company received a refund of $77.0 million in February 2018. 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 expense (benefit): Year Ended December 31, (In Thousands) 2018 2017 2016 Current Income Tax Expense: Federal $ (5,380 ) $ (3,530 ) $ 103,993 State 13,015 9,772 10,308 7,635 6,242 114,301 Deferred Income Tax Expense (Benefit): Federal 48,287 (60,547 ) (33,470 ) State 72 1,346 (1,692 ) 48,359 (59,201 ) (35,162 ) Income Tax Expense (Benefit) $ 55,994 $ (52,959 ) $ 79,139 Significant components of the Company’s deferred income tax liabilities and assets are as follows: December 31, (In Thousands) 2018 2017 Deferred Tax Liabilities: Lease Merchandise and Property, Plant and Equipment $ 174,171 $ 122,155 Goodwill and Other Intangibles 41,183 37,080 Investment in Partnership 159,070 107,173 Other, Net 1,804 2,074 Total Deferred Tax Liabilities 376,228 268,482 Deferred Tax Assets: Accrued Liabilities 21,918 25,509 Advance Payments 9,232 8,199 Other, Net 86,339 23,771 Total Deferred Tax Assets 117,489 57,479 Less Valuation Allowance — — Net Deferred Tax Liabilities $ 258,739 $ 211,003 The Company’s effective tax rate differs from the statutory United States Federal income tax rate as follows: Year Ended December 31, 2018 2017 2016 Statutory Rate 21.0 % 35.0 % 35.0 % Increases (Decreases) in United States Federal Taxes Resulting From: State Income Taxes, net of Federal Income Tax Benefit 4.0 2.7 2.6 Other Permanent Differences (1.2 ) — — Federal Tax Credits (0.5 ) (0.8 ) (1.1 ) Change in Valuation Allowance — (0.4 ) — Remeasurement of net Deferred Tax Liabilities (0.2 ) (58.2 ) — Other, net (0.9 ) (0.4 ) (0.3 ) Effective Tax Rate 22.2 % (22.1 )% 36.2 % 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 2015 . The following table summarizes the activity related to the Company’s uncertain tax positions: Year Ended December 31, (In Thousands) 2018 2017 2016 Balance at January 1, $ 2,269 $ 2,594 $ 3,561 Additions Based on Tax Positions Related to the Current Year 269 456 258 Additions for Tax Positions of Prior Years 615 232 293 Prior Year Reductions (85 ) (236 ) (776 ) Statute Expirations (257 ) (346 ) (609 ) Settlements (282 ) (431 ) (133 ) Balance at December 31, $ 2,529 $ 2,269 $ 2,594 As of December 31, 2018 and 2017 , the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $2.5 million and $1.7 million , respectively, including interest and penalties. During the year ended December 31, 2018 , the Company recognized interest and penalties of $0.1 million . During the years 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. The Company had $0.3 million of accrued interest and penalties at December 31, 2018 and 2017 , respectively. The Company recognizes potential interest and penalties related to uncertain tax benefits as a component of income tax expense (benefit). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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. Rental expense, net of sublease receipts, was $112.8 million , $104.3 million , and $116.2 million in the years ended December 31, 2018 , 2017 , and 2016 , 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 $2.1 million , $13.4 million and $11.6 million in the years ended December 31, 2018 , 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, 2018 are as follows: (In Thousands) Total 2019 $ 113,393 2020 97,640 2021 77,627 2022 58,793 2023 38,838 Thereafter 70,561 $ 456,852 The Company has anticipated future sublease receipts from executed sublease agreements of $4.1 million in 2019 , $3.0 million in 2020 , $2.3 million in 2021 , $1.4 million in 2022 , $1.0 million in 2023 and $0.8 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, 2018 , the maximum amount that the Company would be obligated to repay in the event franchisees defaulted was $39.0 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 $0.3 million as of December 31, 2018 . On October 23, 2018, the Company amended its franchisee loan facility to (i) reduce the total commitment amount from $85.0 million to $55.0 million ; and (ii) extend the maturity date to October 23, 2019 . 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 . 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, 2018 and 2017 , the Company had accrued $1.4 million and $7.3 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 $1.5 million . At December 31, 2018 , 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 $2.0 million and $6.0 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. 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 filed an amended complaint, asserting claims under the ECPA, common law invasion of privacy, seeking an injunction, and naming 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 filed a petition with the United States Court of Appeals for the Third Circuit for permission to appeal the denial of class certification. On December 11, 2018, the Third Circuit denied plaintiffs’ petition. The case will now proceed for determination on an individual basis as to the named plaintiffs. In March 2018, the District Court granted plaintiff's motion to reconsider the prior dismissal of the Wyoming invasion of privacy claim, so that claim will now be considered as part of the individual plaintiffs’ case. 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. Securities In 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 complaint alleged 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 Company filed a motion to dismiss the lawsuit on December 15, 2017. On September 26, 2018, the District Court granted the Company's motion to dismiss in its entirety. Plaintiffs did not appeal that decision. Regulatory Inquiries In July 2018, the Company received civil investigative demands ("CIDs") from the Federal Trade Commission (the "FTC"). The CIDs request the production of documents and answers to written questions to determine whether disclosures related to financial products offered by the Company through the Aaron’s Business and Progressive Leasing are in violation of the Federal Trade Commission Act. Although we believe we are in compliance with the FTC Act, these inquiries could lead to an enforcement action and/or a consent order, and substantial costs, including legal fees, fines, penalties, and remediation expenses. The Company is fully cooperating with the FTC in responding to these inquiries and has provided the FTC with the information and documents the FTC has requested. The Company submitted a significant amount of documentation from both the Aaron’s Business and Progressive Leasing in October 2018. The FTC made requests for a limited number of follow up documents from both businesses. All such documents were produced by the Aaron’s Business in December 2018, and by Progressive Leasing in December 2018 and January 2019. Other Contingencies At December 31, 2018 , the Company had non-cancelable commitments primarily related to certain advertising and marketing programs of $25.5 million . Payments under these commitments are scheduled to be $12.2 million in 2019 , $9.4 million in 2020 , $2.9 million in 2021 and $1.0 million in 2022 . 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, had unfunded lending commitments totaling $316.4 million and $354.5 million as of December 31, 2018 and 2017 , 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 $0.5 million and $0.6 million as of December 31, 2018 and 2017 , 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, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING 2017 and 2016 Restructuring Programs During the year ended December 31, 2017 and 2016, the Company initiated restructuring programs to rationalize its Company-operated Aaron's store base portfolio to better align with marketplace demand. The programs resulted in the closure and consolidation of 139 underperforming Company-operated Aaron's stores throughout 2016, 2017, and 2018. The Company also optimized its home office staff and field support, which resulted in a reduction in employee headcount in those areas to more closely align with current business conditions. Total net restructuring expenses of $1.1 million were recorded during the year ended December 31, 2018 , which were incurred within the Aaron's Business segment. Restructuring activity for the year ended December 31, 2018 was comprised of expenses to record changes in sublease assumptions related to Aaron’s Business contractual lease obligations for closed stores, which were partially offset by reversals of previously recorded restructuring expenses and gains recorded on the sale of properties closed under the restructuring programs. These costs were included in restructuring expenses in the consolidated statements of earnings. The Company does not expect to incur any material expenses under the 2017 and 2016 restructuring programs during 2019 or future periods. However, 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. 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, 2018 and 2017: (In Thousands) Contractual Lease Obligations Severance Total Balance at January 1, 2017 $ 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 Charges — 601 601 Adjustments 1 2,057 — 2,057 Restructuring Charges 2,057 601 2,658 Payments (6,022 ) (2,253 ) (8,275 ) Balance at December 31, 2018 $ 8,472 $ 651 $ 9,123 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, 2018 December 31, 2017 December 31, 2016 (In Thousands) Aaron’s Business Aaron’s Business DAMI Total Aaron’s Business Contractual Lease Obligations $ 2,057 $ 13,432 $ — $ 13,432 $ 11,589 Severance 601 2,705 471 3,176 3,883 Other (Reversals) Expenses (1,176 ) 1,386 — 1,386 4,746 Gain on Sale of Closed Store Properties (377 ) — — — — Total Restructuring Expenses $ 1,105 $ 17,523 $ 471 $ 17,994 $ 20,218 To date, the Company has incurred charges of $39.3 million under the 2016 and 2017 restructuring programs. 2019 Restructuring Program - Subsequent Event In January 2019, the Company initiated a restructuring program (the "2019 Restructuring Program") to further align its Company-operated Aaron's store base portfolio with marketplace demand. As a result of management's strategic review of the existing store portfolio, the Company will close and consolidate approximately 85 underperforming Company-operated Aaron's stores during 2019. The Company currently expects to incur $12 million to $15 million of restructuring expenses, which will all be incurred within the Aaron's Business segment during 2019. The restructuring expenses will primarily consist of impairment charges associated with the closed stores. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY At December 31, 2018 , the Company held 23,567,979 shares in its treasury and had the authority to purchase additional shares up to its remaining authorization limit of $331.3 million . The holders of common stock are entitled to receive dividends and other distributions in cash or stock of the Company as and when declared by 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, 2018 , the Company had issued approximately 387,000 unvested restricted stock awards that contain voting rights but are not presented as outstanding on the consolidated balance sheet. In 2018 , the Company repurchased 3,749,493 shares of its common stock for $168.7 million . 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 . 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, 2018 , no preferred shares have been issued. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , the aggregate number of shares of common stock that may be issued or transferred under the 2015 Plan is 1,441,744 . The Company has elected a policy to estimate forfeitures in determining the amount of stock compensation expense. Total stock-based compensation expense was $28.2 million (including $0.2 million of expense related to the Company's Employee Stock Purchase Plan ("ESPP") discussed further below), $27.4 million and $21.5 million for the years ended December 31, 2018 , 2017 and 2016 , 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 $6.9 million , $10.4 million and $8.2 million in the years ended December 31, 2018 , 2017 and 2016 , respectively. Benefits of tax deductions in excess of recognized compensation cost, which are included in operating cash flows, were $5.7 million and $1.1 million for the years ended December 31, 2018 and 2017 , respectively. Tax deductions less than recognized compensation cost were $0.7 million for the year ended December 31, 2016 . As of December 31, 2018 , there was $24.6 million of total unrecognized compensation expense related to non-vested stock-based compensation which is expected to be recognized over a period of 1.3 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 361,000 , 518,000 and 634,000 stock options during the years ended December 31, 2018 , 2017 and 2016 , 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: 2018 2017 2016 Dividend Yield 0.3 % 0.4 % 0.4 % Expected Volatility 34.8 % 32.8 % 34.2 % Risk-free Interest Rate 2.6 % 1.9 % 1.3 % Expected Term (in years) 5.3 5.3 5.3 Weighted-average Fair Value of Stock Options Granted $ 16.54 $ 8.55 $ 7.10 The following table summarizes information about stock options outstanding at December 31, 2018 : 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 $19.92-20.00 33,250 1.15 $ 19.92 33,250 $ 19.92 20.01-30.00 1,174,285 7.29 25.50 666,915 25.47 30.01-40.00 116,496 6.07 32.13 116,496 32.13 40.01-47.26 352,650 9.18 47.26 — — 19.92-47.26 1,676,681 7.48 30.42 816,661 26.20 The table below summarizes option activity for the year ended December 31, 2018 : 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, 2018 1,652 $ 25.56 Granted 361 47.26 Exercised (296 ) 23.90 Forfeited/expired (40 ) 29.77 Outstanding at December 31, 2018 1,677 30.42 7.48 $ 19,496 $ 9.98 Expected to Vest 844 34.20 8.35 6,624 11.42 Exercisable at December 31, 2018 817 26.20 6.55 12,947 8.36 The aggregate intrinsic value amounts in the table above represent the closing price of the Company’s common stock on December 31, 2018 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 $6.6 million , $2.6 million and $0.4 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The total grant-date fair value of options vested during the year ended December 31, 2018 , 2017 and 2016 was $3.5 million , $1.7 million and $1.4 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 as restricted stock are generally not subject to Company performance metrics. Compensation expense for performance-based restricted stock is recognized 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 recognized on an accelerated basis over the vesting period based on the Company’s projected assessment of the level of performance that would be achieved and earned. During 2015, 2016 and 2017, the Company granted performance-based restricted stock 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 recognized on an accelerated basis over the respective vesting periods based on the Company's projected assessment of the level of performance that will be achieved and earned. As of December 31, 2018 , there are no performance-based restricted shares still subject to performance conditions. The Company granted 248,000 , 375,000 and 379,000 shares of restricted stock at weighted-average fair values of $46.01 , $29.27 and $22.81 in the years ended December 31, 2018 , 2017 and 2016 , respectively. The following table summarizes information about restricted stock activity during 2018 : Restricted Stock (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2018 947 $ 27.96 Granted 248 46.01 Vested (544 ) 28.33 Forfeited (62 ) 37.46 Non-vested at December 31, 2018 589 34.18 The total vest-date fair value of restricted stock described above that vested during the year was $24.8 million , $9.9 million and $3.8 million in the years ended December 31, 2018 , 2017 and 2016 , 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 and invoice volume levels of the respective segments and return on capital for Aaron's, Inc. 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 remaining earned award is subject to an additional one -year service period and one-third of the remaining 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 2018 : Performance Share Units (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2018 822 $ 26.31 Granted 486 38.51 Vested (458 ) 26.96 Forfeited/unearned (51 ) 30.06 Non-vested at December 31, 2018 799 33.11 The total vest-date fair value of performance share units described above that vested during the period was $22.6 million , $7.9 million and $3.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Employee Stock Purchase Plan Effective May 9, 2018, the Company's Board of Directors and shareholders approved the Employee Stock Purchase Plan ("ESPP"), which is a tax-qualified plan under Section 423 of the Internal Revenue Code. The purpose of the Company's ESPP is to encourage ownership of the Company's common stock by eligible employees of Aaron's, Inc. and certain Aaron's subsidiaries. Under the ESPP, eligible employees are allowed to purchase common stock of the Company during six-month offering periods at the lower of: (i) 85% of the closing trading price per share of the common stock on the first trading date of an offering period in which a participant is enrolled; or (ii) 85% of the closing trading price per share of the common stock on the last day of an offering period. Employees participating in the ESPP can contribute up to an amount not exceeding 10% of their base salary and wages to a maximum of $25,000 annually. The compensation cost related to the ESPP is measured on the grant date based on eligible employees' expected withholdings and is recognized over each six-month offering period. During the year ended December 31, 2018 , total compensation cost recognized in connection with the ESPP was $0.2 million . These costs were included as a component of operating expenses in the consolidated statements of earnings. During the year ended December 31, 2018 , the Company issued 25,239 shares under the ESPP at a purchase price of $35.74 . As of December 31, 2018 , the aggregate number of shares of common stock that may be issued under the ESPP is 174,761 . |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS Description of Products and Services of Reportable Segments As of December 31, 2018 , the Company has three operating and reportable segments: Progressive Leasing, Aaron’s Business and DAMI. Progressive Leasing is a leading virtual lease-to-own company that provides lease-purchase solutions on a variety of products, including furniture and appliance, jewelry, mattress, automobile electronics and mobile phones and accessories. The Aaron’s Business offers furniture, consumer electronics, home appliances and accessories to consumers primarily with a month-to-month, lease-to-own agreement with no credit needed through the Company’s Aaron’s-branded stores in the United States and Canada and e-commerce website. This operating segment also supports franchisees of its Aaron’s stores. In addition, the Aaron’s Business segment includes the operations of Woodhaven, 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. 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. Factors Used by Management to Identify the Reportable Segments The Company’s reportable segments are based on the operations of the Company that the chief operating decision maker regularly reviews to analyze performance and allocate resources among business units of the Company. Disaggregated Revenue The following table presents revenue by source and by segment for the year ended December 31, 2018 : Year Ended December 31, 2018 (In Thousands) Progressive Leasing Aaron's Business 4 DAMI Total Lease Revenues and Fees 1 $ 1,998,981 $ 1,507,437 $ — $ 3,506,418 Retail Sales 2 — 31,271 — 31,271 Non-Retail Sales 2 — 207,262 — 207,262 Franchise Royalties and Fees 2 — 44,815 — 44,815 Interest and Fees on Loans Receivable 3 — — 37,318 37,318 Other — 1,839 — 1,839 Total $ 1,998,981 $ 1,792,624 $ 37,318 $ 3,828,923 1 Substantially all lease revenues and fees are within the scope of ASC 840, Leases . The Company had $19.8 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers. 2 Revenue within the scope of ASC 606, Revenue from Contracts with Customers . Of the Franchise Royalties and Fees, $33.3 million is related to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. The remaining revenue is primarily related to fees collected for pre-opening services, which are being deferred and recognized as revenue over the agreement term, and advertising fees charged to franchisees. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise. 3 Revenue within the scope of ASC 310, Credit Card Interest & Fees . 4 Includes revenues from Canadian operations of $21.3 million , which are primarily Lease Revenues and Fees. The following table presents revenue by source and by segment for the year ended December 31, 2017 : Year Ended December 31, 2017 (In Thousands) Progressive Leasing Aaron's Business 4 DAMI Total Lease Revenues and Fees 1 $ 1,566,413 $ 1,433,818 $ — $ 3,000,231 Retail Sales 2 — 27,465 — 27,465 Non-Retail Sales 2 — 270,253 — 270,253 Franchise Royalties and Fees 2 — 48,278 — 48,278 Interest and Fees on Loans Receivable 3 — — 34,925 34,925 Other — 2,556 — 2,556 Total $ 1,566,413 $ 1,782,370 $ 34,925 $ 3,383,708 1 Substantially all revenue is within the scope of ASC 840, Leases . The Company had $6.3 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers. 2 Revenue within the scope of ASC 605, Revenue from Contracts with Customers . Of the Franchise Royalties and Fees, $44.6 million relates to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise. 3 Revenue within the scope of ASC 310, Credit Card Interest & Fees. 4 Includes revenues from Canadian operations of $18.3 million , which are primarily Lease Revenues and Fees. The following table presents revenue by source and by segment for the year ended December 31, 2016 : Year Ended December 31, 2016 (In Thousands) Progressive Leasing Aaron's Business 4 DAMI Total Lease Revenues and Fees 1 $ 1,237,597 $ 1,543,227 $ — $ 2,780,824 Retail Sales 2 — 29,418 — 29,418 Non-Retail Sales 2 — 309,446 — 309,446 Franchise Royalties and Fees 2 — 58,350 — 58,350 Interest and Fees on Loans Receivable 3 — — 24,080 24,080 Other — 5,598 — 5,598 Total $ 1,237,597 $ 1,946,039 $ 24,080 $ 3,207,716 1 Substantially all revenue is within the scope of ASC 840, Leases . The Company had $2.8 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers. 2 Revenue within the scope of ASC 605, Revenue from Contracts with Customers . Of the Franchise Royalties and Fees, $53.7 million relates to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise. 3 Revenue within the scope of ASC 310, Credit Card Interest & Fees. 4 Includes revenues from Canadian operations of $12.4 million , which are primarily Lease Revenues and Fees. 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. Year Ended December 31, (In Thousands) 2018 2017 2016 Earnings (Loss) Before Income Tax (Benefit) Expense: Progressive Leasing $ 175,015 $ 140,224 $ 104,686 Aaron’s Business 84,683 110,642 123,009 DAMI (7,494 ) (11,289 ) (9,273 ) Total Earnings Before Income Tax (Benefit) Expense $ 252,204 $ 239,577 $ 218,422 Corporate-related assets that benefit multiple segments are reported as other assets in the table below. December 31, (In Thousands) 2018 2017 Assets: Progressive Leasing $ 1,088,227 $ 1,022,413 Aaron’s Business 1 1,483,102 1,261,234 DAMI 95,341 108,306 Other 160,022 300,311 Total Assets $ 2,826,692 $ 2,692,264 Assets From Canadian Operations (included in totals above): Aaron’s Business $ 25,893 $ 20,223 1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the consolidated balance sheets of $15.2 million and $16.3 million as of December 31, 2018 and 2017 , respectively. Year Ended December 31, (In Thousands) 2018 2017 2016 Depreciation and Amortization 1 : Progressive Leasing $ 27,974 $ 29,048 $ 30,727 Aaron’s Business 64,744 52,251 50,658 DAMI 1,432 1,273 993 Total Depreciation and Amortization $ 94,150 $ 82,572 $ 82,378 Interest Expense: Progressive Leasing $ 16,288 $ 18,577 $ 20,042 Aaron’s Business (2,944 ) (2,366 ) (768 ) DAMI 3,096 4,327 4,116 Total Interest Expense $ 16,440 $ 20,538 $ 23,390 Capital Expenditures: Progressive Leasing $ 10,711 $ 8,213 $ 6,084 Aaron’s Business 67,099 48,335 50,582 DAMI 1,035 1,425 787 Total Capital Expenditures $ 78,845 $ 57,973 $ 57,453 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. In 2018, the results of the Company’s operating segments were impacted by the following items: • Earnings before income taxes for the Aaron's Business includes a full impairment of the PerfectHome investment of $20.1 million . • DAMI's loss before income taxes includes a gain of $0.8 million related to the sale of DAMI's former corporate office building. 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 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 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. • Earnings before income taxes for the Aaron's Business were also impacted by a gain of $11.1 million on the January 2016 sale of the Company’s former corporate office building. 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, which is consistent with how the chief operating decision maker regularly reviews the segment results. • Interest expense is allocated from Aaron's Business 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. Interest expense allocated to Progressive Leasing and DAMI in excess of interest expense incurred by Aaron's Business from third party lenders is reflected in the table above. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
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 five remaining store 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, 2018 . 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 remaining 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 $0.3 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, 2018 | |
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, 2018 Revenues $ 954,809 $ 927,859 $ 953,071 $ 993,184 Gross Profit * 398,703 396,763 406,541 444,979 Earnings Before Income Taxes 66,752 49,980 53,415 82,057 Net Earnings 52,246 38,501 43,720 61,743 Earnings Per Share 0.75 0.55 0.64 0.91 Earnings Per Share Assuming Dilution 0.73 0.54 0.62 0.89 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 * 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 2018 and 2017 was impacted by certain events, as described below on a pre-tax basis, except for the Tax Act impacts which are not pre-tax: • The second quarter of 2018 included the full impairment of the PerfectHome investment of $20.1 million . • The first, second, third and fourth quarter of 2018 included net restructuring charges (reversals) of $0.9 million , $(0.9) million , $0.5 million , and $0.6 million , respectively. 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. The restructuring activity in both years relates primarily 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 was a non-cash provisional income tax benefit of $137 million , which was 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. |
Compensation Arrangements
Compensation Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Compensation Arrangements | COMPENSATION ARRANGEMENTS Deferred Compensation 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 $10.4 million and $12.9 million as of December 31, 2018 and 2017 , 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 investments in the rabbi trust were $13.5 million and $17.1 million as of December 31, 2018 and 2017 , respectively. The rabbi trust investments include debt and equity securities as well as money market funds and are included in prepaid expenses and other assets in the consolidated balance sheets. The Company recorded losses related to changes in the cash surrender value of the Company-owned life insurance plans of $1.2 million during the year ended December 31, 2018 and gains of $1.5 million and $0.2 million during the years ended December 31, 2017 and 2016 , respectively, which were recorded within other non-operating (expense) income, net in the consolidated statements of earnings. Benefits of $2.7 million , $2.3 million and $1.4 million were paid during the years ended December 31, 2018 , 2017 and 2016 , respectively. Effective January 1, 2018 the Company implemented a discretionary match within the nonqualified Deferred Compensation Plan. The match allows eligible employees to receive 100% matching by the Company on the first 3% of contributions and 50% on the next 2% of contributions for a total of a 4% match. The 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 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 $6.9 million in 2018 , $5.7 million in 2017 and $5.4 million in 2016 . Employee Stock Purchase Plan See Note 12 to these consolidated financial statements for more information regarding the Company's compensatory Employee Stock Purchase Plan. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , the Company’s operating segments are Progressive Leasing, Aaron’s Business and Dent-A-Med, Inc. ("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 through a lease-to-own transaction. Progressive Leasing consequently has no stores of its own, but rather offers lease-purchase solutions to the customers of traditional and e-commerce retailers. The following table presents invoice volume for Progressive Leasing: For the Year Ended December 31 (Unaudited and In Thousands) 2018 2017 2016 Progressive Leasing Invoice Volume 1 $ 1,429,550 $ 1,160,732 $ 884,812 1 Invoice volume is defined as the retail price of lease merchandise acquired and then leased to customers during the period, net of returns. The Aaron’s Business segment offers furniture, consumer electronics, home appliances and accessories to consumers primarily with a month-to-month, lease-to-own agreement with no credit needed through the Company’s Aaron’s-branded stores in the United States and Canada and its e-commerce website. 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 ("Woodhaven"), which manufactures and supplies the majority of the upholstered furniture and bedding leased and sold in Company-operated and franchised stores. The Company acquired the Aaron's-branded store operations and related assets of 13 franchisees during the year ended December 31, 2018 . 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 at that time. Refer to Note 2 to these consolidated financial statements for additional discussion of franchisee acquisitions. |
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 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 Progressive Leasing segment offers virtual lease-purchase solutions, typically over 12 months , to the customers of traditional and e-commerce retailers. 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 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. 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. Aaron's Business lease revenues are recognized as revenue net of related sales taxes in the month they are earned. Lease payments received prior to the month earned are recorded as deferred lease revenue, and this amount is included in customer deposits and advance payments 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 as operating expense over the estimated lease term. The capitalized costs have been classified within prepaid expenses and other assets in the accompanying consolidated balance sheets. 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 retail sale of merchandise to customers are recognized at the point of sale. Revenues for the non-retail sale of merchandise to franchisees are recognized when control transfers to the franchisee, which is upon delivery of the merchandise. 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 has no current plans to franchise additional Aaron's stores. Current franchisees pay an ongoing royalty of 6% of the weekly cash revenue collections, which is recognized as the fees become due. The Company received a non-refundable initial franchise fee from current franchisees from $15,000 to $50,000 per store depending upon market size. Franchise fees and area development fees were generated from the sale of rights to develop, own and operate sales and lease ownership stores and pre-opening services provided by Aaron's to assist in the start-up operations of the stores. The Company considers the rights to the intellectual property and the pre-opening services to be a single performance obligation, resulting in the recognition of revenue ratably over time from the store opening date throughout the remainder of the franchise agreement term. The Company believes that this period of time is most representative of the time period in which the customer realizes the benefits of having the right to access the Company's intellectual property. The deferred revenue balance related to initial franchise fees was $1.4 million as of December 31, 2018 and is included in customer deposits and advance payments on the consolidated balance sheets. Revenue related to initial franchise fees recognized during the year ended December 31, 2018 was $1.4 million . The Company guarantees certain debt obligations of some of the franchisees and receives guarantee fees based on the outstanding debt obligations of such franchisees. Refer to Note 9 of these consolidated financial statements for additional discussion of the Company's franchise-related guarantee obligation. The Company also charges fees for advertising efforts that benefit the franchisees. Such fees are recognized at the time the advertising takes place and are presented as franchise royalties and fees in the Company's consolidated statements of earnings. Initial direct costs related to the pre-opening services provided to franchisees are immaterial and are expensed as incurred. These expenses have been classified as operating expenses in the Company's consolidated statements of earnings. |
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, if applicable. The merchant fee discount represents a pre-negotiated, nonrefundable discount that generally ranges from 3% to 25% of the loan face value. The discount is designed to cover the risk of loss related to the portfolio of cardholder charges and 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 may also include a promotional fee discount, which generally ranges from 1% to 8% . The promotional fee discount is intended to compensate the holder of the loan receivable (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 unamortized promotional fee discount is netted on the consolidated balance sheet in loans receivable. The customer is typically required to make periodic minimum payments of at least 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 25% to 34.99% , 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 collectibility 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 collectibility is reasonably assured. Annual fees and other fees discussed are recognized as interest and fee revenue on loans receivable in the consolidated statements of earnings. |
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 operations is recorded at cost and includes overhead from production facilities, shipping costs and warehousing costs. The Company’s Progressive Leasing segment, at which substantially all merchandise is on lease, depreciates merchandise generally over 12 months . The Company-operated stores begin depreciating merchandise at the earlier of 12 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. Depreciation is accelerated upon early payout. The following is a summary of lease merchandise, net of accumulated depreciation and allowances: December 31, (In Thousands) 2018 2017 Merchandise on Lease $ 1,053,684 $ 908,268 Merchandise Not on Lease 264,786 243,867 Lease Merchandise, net of Accumulated Depreciation and Allowances $ 1,318,470 $ 1,152,135 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. Generally, 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. |
Cost of Goods and Services Sold | 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 |
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 $37.7 million , $34.0 million and $40.8 million for the years ended December 31, 2018 , 2017 and 2016 , 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 $28.3 million , $22.5 million and $22.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The prepaid advertising asset was $1.6 million and $1.4 million at December 31, 2018 and 2017 , 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, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), performance share units ("PSUs") and awards issuable under the Company's employee stock purchase plan ("ESPP") (collectively, "share-based awards") as determined under the treasury stock method. |
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, investments classified as held-to-maturity securities consisted of British pound-denominated notes issued by PerfectHome, which is based in the U.K. The PerfectHome Notes ("Notes") consisted of outstanding principal and accrued interest of £15.1 million ( $20.4 million ) at December 31, 2017. PerfectHome was a variable interest entity ("VIE") because it did not have sufficient equity at risk. However, the Company was not the primary beneficiary and did not consolidate PerfectHome since the Company lacked power through voting or similar rights to direct the activities that most significantly affected PerfectHome's economic performance. During the second quarter of 2018, PerfectHome's liquidity deteriorated significantly due to continuing operating losses and the senior lender's decision to no longer provide additional funding under a secured revolving debt agreement resulting from PerfectHome's default of certain covenants. Additionally, the senior lender notified PerfectHome in May 2018 of its intent to exercise remedies available under its credit documentation, which included the right to call its outstanding debt. Furthermore, the U.K. governing authority for rent-to-own companies, the Financial Conduct Authority, proposed new regulatory measures which could adversely affect PerfectHome's business. In July 2018, PerfectHome entered into the U.K.’s insolvency process and was subsequently acquired by the senior lender. The Company believes it will not receive any further payments on its subordinated secured Notes. As a result, the Company recorded a full impairment of the PerfectHome investment of $20.1 million during the second quarter of 2018. |
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 real estate leasing activities and vendor consideration) and franchisee obligations. Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2018 2017 Customers $ 60,879 $ 48,661 Corporate 18,171 23,431 Franchisee 19,109 27,795 $ 98,159 $ 99,887 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 due from 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. 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 and other factors. |
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 20 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 and amortized over the lesser of the lease term or the asset's useful life. Depreciation expense for property, plant and equipment is included in operating expenses in the accompanying consolidated statements of earnings and was $61.2 million , $54.8 million and $53.6 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property, plant and equipment, was $14.1 million , $11.5 million and $9.2 million during the years ended December 31, 2018 , 2017 and 2016 , 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, 2018 and 2017 . 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, 2018 and 2017 was $6.6 million and $10.1 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 $0.2 million , $0.7 million and $5.8 million during the years ended December 31, 2018 , 2017 and 2016 , respectively, in other operating income 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. The Company recognized net gains of $0.4 million related to the disposal of certain assets held for sale during the year ended December 31, 2018 of land and buildings that the Company closed under the 2016 and 2017 restructuring plans described in Note 10 to these consolidated financial statements. These gains were recorded as a reduction to restructuring expenses within the consolidated statements of earnings. The Company also recognized a gain of $0.8 million during the year ended December 31, 2018 related to the sale of the former headquarters building of its DAMI segment for a selling price of $2.2 million . The disposal of assets held for sale also resulted in the recognition of net gains of $11.4 million for the year ended December 31, 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 . These cash proceeds from the respective sales of the former DAMI and Corporate headquarters buildings were recorded in proceeds from sales of property, plant and equipment in the consolidated statements of cash flows and the net gains were recorded in other operating income in the consolidated statements of earnings. Gains and losses on the disposal of assets held for sale were not significant in 2017 . 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 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 performed a qualitative assessment to complete its annual goodwill impairment test as of October 1, 2018 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 2018 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, reacquired franchise rights, and expanded customer base intangible assets acquired in connection with store-based business acquisitions, asset acquisitions of customer contracts, and franchisee acquisitions. 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, plus any renewal terms that are considered to be favorable compared to market. The customer relationship intangible asset is amortized on a straight-line basis over a three -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). The expanded customer base intangible asset represents the estimated fair value paid by the Company in an asset acquisition for the ability to advertise and execute lease agreements with a larger pool of customers in the respective markets, and is generally amortized on a straight-line basis over two to six years. Acquired franchise rights are amortized on a straight-line basis over the remaining 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. 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 in conjunction with its annual goodwill impairment test. The Company completed its indefinite-lived intangible asset impairment test as of October 1, 2018 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 $2.7 million and $2.5 million as of December 31, 2018 and 2017 , 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 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 due to our previous investment in PerfectHome as well as remeasurement of the operating results of the Company's Canadian Aaron's-branded stores from the Canadian dollar to U.S. dollars. These gains and losses are recorded as a component of other non-operating (expense) income, net in the consolidated statements of earnings and were losses of approximately $0.1 million and $3.7 million for the years ended December 31, 2018 and 2016 , respectively, and gains of $2.1 million for the year ended December 31, 2017 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("Topic 606"). 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. On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning on January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The standard changed the timing of recognition of store pre-opening revenue from franchisees. Previously, the Company's accounting policy was to recognize initial franchise store pre-opening revenue when earned, which is generally when a new store opens. Under Topic 606, the initial franchise pre-opening services are not considered 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 is recognized from the store opening date over the remaining life of the franchise license term. The standard also changed the presentation of certain fees charged to franchisees, primarily advertising fees. Previously, there was diversity in practice and advertising fees charged to franchisees were recorded as a reduction to advertising expense, which is classified within operating expenses in the consolidated statements of earnings. Topic 606 resulted in the presentation of advertising fees charged to franchisees to be reported as franchise royalties and fee revenue in the consolidated statements of earnings, instead of a reduction to advertising expense. The changes associated with the adoption of Topic 606 did 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 a pre-tax adjustment to opening retained earnings and deferred revenue of $2.4 million on January 1, 2018. The impact of adoption on the consolidated statements of earnings and balance sheets was as follows: Consolidated Statements of Earnings Twelve Months Ended December 31, 2018 (In Thousands) As Reported Balance Without ASC 606 Adoption Effect of Change Higher/(Lower) Franchise Royalties and Fees $ 44,815 $ 36,245 $ 8,570 Operating Expenses 1,618,423 1,611,210 7,213 OPERATING PROFIT 289,608 288,250 1,358 EARNINGS BEFORE INCOME TAXES 252,204 250,846 1,358 INCOME TAXES 55,994 55,661 333 NET EARNINGS $ 196,210 $ 195,185 $ 1,025 Consolidated Balance Sheets Balance at December 31, 2018 (In Thousands) As Reported Balance Without ASC 606 Adoption Effect of Change Higher/(Lower) Deferred Income Taxes Payable $ 267,500 $ 267,790 $ (290 ) Customer Deposits and Advance Payments 80,579 79,585 994 Total Liabilities 1,065,984 1,065,280 704 Retained Earnings 2,005,344 2,006,048 (704 ) Total Shareholders’ Equity 1,760,708 1,761,412 (704 ) Total Liabilities & Shareholders’ Equity $ 2,826,692 $ 2,826,692 $ — Comprehensive Statements of Income Twelve Months Ended December 31, 2018 (In Thousands) As Reported Balance Without ASC 606 Adoption Effect of Change Higher/(Lower) Comprehensive Income $ 194,349 $ 193,324 $ 1,025 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. The Company prospectively adopted ASU 2017-01 in the first quarter of 2018. The new standard results in certain store acquisitions (or disposals) which do not transfer a substantive process to be accounted for as asset acquisitions (or disposals). 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. The Company has identified a separate "expanded customer base" intangible asset, which is separately valued and recorded in these asset acquisitions. 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 was previously subsumed in goodwill under the business combinations accounting guidance. In situations in which the purchase price exceeds the fair value of the assets acquired, any remaining economic goodwill is 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 is treated as a bargain purchase with the excess allocated on a relative fair value basis to all assets. This results in the recognition of the initial asset bases at less than fair value, including merchandise inventory. Under ASU 2017-01, these acquisitions result in all of the purchase price getting assigned to definite lived assets, instead of a portion going to goodwill. This results in higher depreciation and amortization expense under the new standard for asset acquisitions that would have been accounted for as business combinations under the prior guidance. Transactions that are now accounted for as asset disposals, instead of business disposals, do not result in the write-off of goodwill as part of the disposal. The adoption of ASU 2017-01 did not have a material impact to the Company's consolidated financial statements during the year ended December 31, 2018 . The future impact of this new standard will depend on the quantity and magnitude of future acquisitions (or disposals) that will be treated as asset acquisitions (or disposals) in accordance with ASU 2017-01. Pending Adoption Leases. In February 2016, the FASB issued ASU 2016-02, Leases ("Topic 842") , which requires lessees to recognize assets and liabilities for most leases and changes certain aspects of 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 Topic 842; however, the Company plans to adopt an optional transition method finalized by the FASB in July 2018 in which entities are permitted to not apply the requirements of Topic 842 in the comparative periods presented within the financial statements in the year of adoption, with recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will be impacted by Topic 842 as a lessor (operating leases with customers) and lessee (primarily store, fleet, and equipment operating leases) and will adopt the new standard in the first quarter of 2019. A majority of the Company's revenue generating activities will be within the scope of Topic 842. The Company has determined that the new standard will not materially impact the timing of revenue recognition. The new standard will result in the Company classifying Progressive Leasing bad debt expense, which is currently reported within operating expenses, as a reduction of lease revenue and fees within the consolidated statements of earnings. The Aaron's Business bad debt expense is currently, and will continue to be, recorded as a reduction to lease revenue and fees. The Progressive Leasing segment incurred bad debt expense of $227.8 million , $170.5 million and $127.9 million during the years ended December 31, 2018 , 2017 , and 2016 respectively. These amounts would have been recorded as a reduction to lease revenues and fees rather than within operating expenses in our consolidated statements of earnings, had the requirements of Topic 842 been in place for those periods. The Company is also electing the practical expedient provided under ASU 2018-20, Leases (Topic 842) - Narrow-scope improvements for lessors , which allows issuers to make an accounting policy election not to evaluate whether certain sales and other taxes should be excluded from the measurement of lease revenues and fees. The new standard will also 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 operating lease liability. The Company plans to elect a package of optional practical expedients which includes the option to retain the current classification of leases entered into prior to January 1, 2019, and thus does not anticipate a material impact to the consolidated statements of earnings or consolidated statements of cash flows. The Company expects to be affected by the transition guidance related to the recognition of deferred gains recorded under previous sale and operating leaseback transactions, which requires companies to recognize any deferred gains not resulting from off-market terms as a cumulative adjustment to retained earnings upon adoption of Topic 842. The Company also expects to be impacted by the transition guidance related to one Aaron's store that was identified for closure under the Company's 2016 and 2017 restructuring programs, but has not closed as of the adoption date. Topic 842 requires companies to determine whether impairment indicators for the right-of-use asset at the asset or asset-group level exist as of the January 1, 2019 adoption date. If impairment indicators exist, a recoverability test is performed to determine whether an impairment loss exists immediately prior to the date of initial adoption. As of January 1, 2019, the Company determined that an impairment loss exists related to the right-of-use asset for this store identified for closure, which will be recorded as an adjustment to retained earnings upon adoption of Topic 842. The Company is currently quantifying the cumulative adjustments to retained earnings for the transition impacts of its deferred gain on sale leasebacks and right-of-use impairment for the store identified for closure. The Company does not believe the cumulative adjustments to retained earnings at transition will be material. The Company has implemented a new lease accounting module within its lease management system to support the new accounting requirements for the Company's operating leases as a lessee. The Company has also finalized changes to our accounting policies, processes, and internal controls to ensure compliance with the standard’s reporting and disclosure requirements. The Company, as a lessee, is currently quantifying the impacts of its operating leases that will be reported on its balance sheet upon adoption and is finalizing its incremental borrowing rate used to determine remaining present value of lease payments. Financial Instruments - Credit Losses. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments ("CECL"). 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 modified retrospective 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 the Company in the first quarter of 2020. The Company's operating lease activities within Aaron's Business and Progressive Leasing will not be impacted by ASU 2016-13, as operating lease receivables are not in the scope of the CECL model. The Company will be impacted by ASU 2016-13 within its DAMI segment by requiring earlier recognition of estimated credit losses in the consolidated statements of earnings. DAMI acquires loan receivables from merchants through its third-party bank partners at a discount from the face value of the loan, referred to as the "merchant fee discount." The merchant fee discount represents a pre-negotiated, nonrefundable discount that generally ranges from 3% to 25% of the loan face value, which is primarily intended to cover the risk of credit loss related to the portfolio of loans originated. Although the CECL model will require the estimated credit losses to be recognized at the time of loan origination, the related merchant fee discount will continue to be amortized as interest and fee revenue on a straight-line basis over the initial 24-month period that the card is active. Therefore, on a loan-by-loan basis, the Company expects higher losses to be recognized upon loan origination for the estimated credit losses, generally followed by higher net earnings as the related merchant fee discount is amortized as interest income, and as interest income is accrued and earned on the outstanding loan. Although the CECL model will result in earlier recognition of credit losses in the statement of earnings, no changes are expected related to the loan cash flows. The Company has evaluated the guidance in ASU 2016-13 related to purchased financial assets with credit deterioration (“PCD Method”). The Company's loans receivable would not qualify for the PCD Method as a more-than-insignificant deterioration in credit quality since origination has not occurred. The Company is continuing to evaluate the various impacts of CECL, including identifying changes to processes and procedures that will be necessary to adopt ASU 2016-13. The Company is also evaluating whether it will choose to measure future loans at fair value under the fair value option as an alternative to CECL. The fair value option would result in the Company measuring loans at fair value on an instrument-by-instrument basis with changes in fair value reported in net earnings. Election of the fair value option could cause volatility in our reported results, primarily in periods with large fluctuations in interest rates. The Company is also monitoring emerging guidance which would allow companies to choose a one-time election of the fair value option for loans previously recorded at amortized cost under the current incurred loss model. As a result, we are continuing to evaluate transition options and alternatives available under ASU 2016-13. Cloud Computing Arrangements . In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The intent of the standard is to reduce diversity in practice in accounting for the costs of implementing cloud computing arrangements that are service contracts. Under the new standard, entities will be required to apply the accounting guidance as prescribed by ASC 350-40, Internal Use Software , in determining which implementation costs should be capitalized as assets or expensed as incurred. The internal-use software guidance requires the capitalization of certain costs incurred during the application development stage of an internal-use software project, while requiring companies to expense all costs incurred during preliminary project and post-implementation project stages. The standard may be applied either prospectively to all implementation costs incurred after the adoption date or retrospectively. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the adoption approach and assessing the potential effects of adopting ASU 2018-15 on its consolidated financial statements, but expects certain implementation costs which are currently expensed by the Company will be eligible for capitalization under ASU 2018-15. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedules of Company Operated Store Activity | The following table presents store count by ownership type for the Aaron’s Business operations: Stores at December 31 (Unaudited) 2018 2017 2016 Company-operated Aaron's Branded Stores 1,312 1,175 1,165 Franchised Stores 1 377 551 699 Systemwide Stores 1,689 1,726 1,864 1 As of December 31, 2018 , 2017 and 2016 , the Company has awarded 388 , 580 and 749 franchises, respectively. 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). The following table presents invoice volume for Progressive Leasing: For the Year Ended December 31 (Unaudited and In Thousands) 2018 2017 2016 Progressive Leasing Invoice Volume 1 $ 1,429,550 $ 1,160,732 $ 884,812 1 Invoice volume is defined as the retail price of lease merchandise acquired and then leased to customers during the period, net of returns. |
Schedule of Lease Merchandise | The following is a summary of lease merchandise, net of accumulated depreciation and allowances: December 31, (In Thousands) 2018 2017 Merchandise on Lease $ 1,053,684 $ 908,268 Merchandise Not on Lease 264,786 243,867 Lease Merchandise, net of Accumulated Depreciation and Allowances $ 1,318,470 $ 1,152,135 |
Allowance for Lease Merchandise | The following table shows the components of the allowance for lease merchandise write-offs: Year ended December 31, (In Thousands) 2018 2017 2016 Beginning Balance $ 35,629 $ 33,399 $ 33,405 Merchandise Written off, net of Recoveries (181,252 ) (143,230 ) (134,110 ) Provision for Write-offs 192,317 145,460 134,104 Ending Balance $ 46,694 $ 35,629 $ 33,399 |
Calculation of Dilutive Stock Awards | The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2018 2017 2016 Weighted Average Shares Outstanding 69,128 70,837 72,354 Dilutive Effect of Share-Based Awards 1,469 1,284 659 Weighted Average Shares Outstanding Assuming Dilution 70,597 72,121 73,013 |
Accounts Receivable Net of Allowances | Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2018 2017 Customers $ 60,879 $ 48,661 Corporate 18,171 23,431 Franchisee 19,109 27,795 $ 98,159 $ 99,887 The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2018 2017 Credit Card Loans 1 $ 90,406 $ 89,728 Acquired Loans 2 5,688 16,213 Loans Receivable, Gross 96,094 105,941 Allowance for Loan Losses (12,970 ) (11,454 ) Unamortized Fees (6,971 ) (8,375 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 76,153 $ 86,112 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) 2018 2017 2016 Beginning Balance $ 46,946 $ 35,690 $ 34,861 Accounts Written Off, net of Recoveries (252,330 ) (192,133 ) (167,094 ) Accounts Receivable Provision 268,088 203,389 167,923 Ending Balance $ 62,704 $ 46,946 $ 35,690 The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the fiscal years presented: Year Ended December 31, (In Thousands) 2018 2017 2016 Bad Debt Expense $ 227,960 $ 170,574 $ 128,333 Provision for Returns and Uncollected Renewal Payments 40,128 32,815 39,590 Accounts Receivable Provision $ 268,088 $ 203,389 $ 167,923 |
Loan Portfolio Credit Quality Indicators | Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2018 and 2017 by Fair Isaac and Company (FICO) score as determined at the time of loan origination: December 31, FICO Score Category 2018 2017 600 or Less 3.7 % 1.7 % Between 600 and 700 77.9 % 76.5 % 700 or Greater 18.4 % 21.8 % |
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) 2018 2017 Prepaid Expenses $ 30,763 $ 31,509 Prepaid Insurance 27,948 36,735 Assets Held for Sale 6,589 10,118 Deferred Tax Asset 8,761 11,589 Other Assets 24,161 26,548 $ 98,222 $ 116,499 |
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) 2018 2017 Accounts Payable $ 88,369 $ 80,821 Accrued Insurance Costs 40,423 41,680 Accrued Salaries and Benefits 40,790 46,511 Accrued Real Estate and Sales Taxes 30,332 31,054 Deferred Rent 27,270 29,912 Other Accrued Expenses and Liabilities 65,969 74,832 $ 293,153 $ 304,810 |
Schedule of Impact from New Revenue Adoption | The impact of adoption on the consolidated statements of earnings and balance sheets was as follows: Consolidated Statements of Earnings Twelve Months Ended December 31, 2018 (In Thousands) As Reported Balance Without ASC 606 Adoption Effect of Change Higher/(Lower) Franchise Royalties and Fees $ 44,815 $ 36,245 $ 8,570 Operating Expenses 1,618,423 1,611,210 7,213 OPERATING PROFIT 289,608 288,250 1,358 EARNINGS BEFORE INCOME TAXES 252,204 250,846 1,358 INCOME TAXES 55,994 55,661 333 NET EARNINGS $ 196,210 $ 195,185 $ 1,025 Consolidated Balance Sheets Balance at December 31, 2018 (In Thousands) As Reported Balance Without ASC 606 Adoption Effect of Change Higher/(Lower) Deferred Income Taxes Payable $ 267,500 $ 267,790 $ (290 ) Customer Deposits and Advance Payments 80,579 79,585 994 Total Liabilities 1,065,984 1,065,280 704 Retained Earnings 2,005,344 2,006,048 (704 ) Total Shareholders’ Equity 1,760,708 1,761,412 (704 ) Total Liabilities & Shareholders’ Equity $ 2,826,692 $ 2,826,692 $ — Comprehensive Statements of Income Twelve Months Ended December 31, 2018 (In Thousands) As Reported Balance Without ASC 606 Adoption Effect of Change Higher/(Lower) Comprehensive Income $ 194,349 $ 193,324 $ 1,025 |
Acquisitions - Acquisitions (Ta
Acquisitions - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents a summary of the fair value of the assets acquired and liabilities assumed in the SEI franchisee acquisition: (In Thousands) Final Amounts Recognized as of Acquisition Date Purchase Price $ 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 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 34 Receivables 1,345 Lease Merchandise 40,941 Property, Plant and Equipment 8,832 Other Intangibles 1 13,779 Prepaid Expenses and Other Assets 440 Total Identifiable Assets Acquired 65,371 Accounts Payable and Accrued Expenses (6,698 ) Customer Deposits and Advance Payments (2,500 ) Capital Leases (4,514 ) Total Liabilities Assumed (13,712 ) Goodwill 2 91,881 Net Assets Acquired $ 51,659 1 Identifiable intangible assets are further disaggregated in the table set forth below. 2 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 following table presents summaries of the preliminary fair value of the assets acquired and liabilities assumed in the franchisee acquisitions as of the respective acquisition dates: (in Thousands) Amounts Recognized as of Acquisition Dates Measurement Period Adjustments 1 Amounts Recognized as of Acquisition Date (as adjusted) Purchase Price $ 189,826 $ — $ 189,826 Add: Settlement of Pre-existing Relationship 5,405 — 5,405 Less: Working Capital Adjustments 241 (86 ) 155 Aggregated Consideration Transferred 195,472 (86 ) 195,386 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 43 — 43 Lease Merchandise 59,587 29 59,616 Property, Plant and Equipment 5,493 75 5,568 Other Intangibles 2 25,069 (539 ) 24,530 Prepaid Expenses and Other Assets 1,060 108 1,168 Total Identifiable Assets Acquired 91,252 (327 ) 90,925 Accounts Payable and Accrued Expenses (826 ) (26 ) (852 ) Customer Deposits and Advance Payments (5,156 ) — (5,156 ) Total Liabilities Assumed (5,982 ) (26 ) (6,008 ) Goodwill 3 110,202 267 110,469 Net Assets Acquired (before Goodwill) $ 85,270 $ (353 ) $ 84,917 1 The acquisition accounting adjustments relate to finalizing information that existed as of the acquisition date regarding the valuation of certain intangible assets and lease merchandise and obtaining additional information regarding acquired other assets. 2 Identifiable intangible assets are further disaggregated in the table set forth below. 3 The total goodwill recognized in conjunction with the franchisee acquisitions, 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 2,154 1.0 Customer Relationships 3,215 2.0 Reacquired Franchise Rights 3,640 4.1 Favorable Operating Leases 3,526 11.3 Total Acquired Intangible Assets 1 $ 13,779 1 Acquired definite-lived intangible assets have a total weighted average life of 5.1 years. The estimated intangible assets attributable to the franchisee acquisitions are comprised of the following: Fair Value (in thousands) Weighted Average Useful Life (in years) Non-compete Agreements $ 1,872 3.0 Customer Contracts 7,864 1.0 Customer Relationships 10,131 3.0 Reacquired Franchise Rights 4,663 3.9 Total Acquired Intangible Assets 1 $ 24,530 1 Acquired definite-lived intangible assets have a total weighted average life of 2.5 years. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 Trade Name $ 53,000 $ 53,000 Goodwill 733,170 622,948 Indefinite-lived Intangible Assets $ 786,170 $ 675,948 |
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 Total Balance at January 1, 2017 $ 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 Acquisitions — 110,469 110,469 Disposals, Currency Translation and Other Adjustments — (260 ) (260 ) Acquisition Accounting Adjustments — 13 13 Balance at December 31, 2018 $ 288,801 $ 444,369 $ 733,170 |
Summary of Identifiable Intangible Assets | The following table summarizes information related to definite-lived intangible assets at December 31 : 2018 2017 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal Use Software $ 14,000 $ (14,000 ) $ — $ 14,000 $ (14,000 ) $ — Technology 68,550 (32,749 ) 35,801 68,550 (25,639 ) 42,911 Merchant Relationships 181,000 (71,101 ) 109,899 181,000 (56,018 ) 124,982 Other Intangibles 1 42,165 (12,265 ) 29,900 19,558 (4,900 ) 14,658 Total $ 305,715 $ (130,115 ) $ 175,600 $ 283,108 $ (100,557 ) $ 182,551 1 Other intangibles primarily include favorable operating leases, customer relationships, customer lease contracts, non-compete agreements, reacquired franchise rights and the expanded customer base intangible asset. |
Estimated Future Amortization Expense | As of December 31, 2018 , estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2019 $ 35,612 2020 28,537 2021 26,198 2022 23,123 2023 22,803 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ (10,389 ) $ — $ — $ (12,927 ) $ — |
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, 2018 December 31, 2017 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Held for Sale $ — $ 6,589 $ — $ — $ 10,118 $ — |
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, 2018 December 31, 2017 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 PerfectHome Notes 1 $ — $ — $ — $ — $ — $ 20,385 Fixed-Rate Long Term Debt 2 — (183,765 ) — — (273,476 ) — 1 The PerfectHome Notes were carried at cost, which approximated fair value. The Company recorded a full impairment of the PerfectHome notes during the year ended December 31, 2018 . Refer to Note 1 to the consolidated financial statements for further discussion of the PerfectHome impairment. 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 $180.0 million and $265.0 million at December 31, 2018 and 2017 , respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 Land $ 19,950 $ 19,768 Buildings and Improvements 67,081 67,053 Leasehold Improvements and Signs 83,867 69,407 Fixtures and Equipment 210,747 180,553 Software - Internal Use 106,671 86,208 Assets Under Capital Leases: with Related Parties 872 4,032 with Unrelated Parties 9,487 12,426 Construction in Progress 15,104 10,863 513,779 450,310 Less: Accumulated Depreciation and Amortization 1 (284,287 ) (242,623 ) $ 229,492 $ 207,687 1 Accumulated amortization of internal-use software development costs amounted to $56.9 million and $42.6 million as of December 31, 2018 and 2017 , respectively. |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of the Components of Loans Receivable, Net | Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2018 2017 Customers $ 60,879 $ 48,661 Corporate 18,171 23,431 Franchisee 19,109 27,795 $ 98,159 $ 99,887 The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2018 2017 Credit Card Loans 1 $ 90,406 $ 89,728 Acquired Loans 2 5,688 16,213 Loans Receivable, Gross 96,094 105,941 Allowance for Loan Losses (12,970 ) (11,454 ) Unamortized Fees (6,971 ) (8,375 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 76,153 $ 86,112 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 2018 2017 30-59 Days Past Due 6.9 % 7.1 % 60-89 Days Past Due 3.4 % 3.6 % 90 or more Days Past Due 4.3 % 4.1 % Past Due Loans Receivable 14.6 % 14.8 % Current Loans Receivable 85.4 % 85.2 % Balance of Loans Receivable on Nonaccrual Status $ 2,110 $ 2,016 Balance of Loans Receivable Greater Than 90 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) 2018 2017 Beginning Balance 1 $ 11,454 $ 6,624 Provision for Loan Losses 21,063 20,973 Charge-offs (21,190 ) (16,852 ) Recoveries 1,643 709 Ending Balance $ 12,970 $ 11,454 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, 2018 | |
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 2018 2017 Revolving Facility $ 16,000 $ — Senior Unsecured Notes, 3.95%, Due in Installments through April 2018 — 24,994 Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 179,750 239,784 Term Loan, Due in Installments through September 2022 223,837 96,272 Capital Lease Obligation: with Related Parties 123 1,314 with Unrelated Parties 5,042 6,434 Total Debt 424,752 368,798 Less: Current Maturities 83,778 97,192 Long-Term Debt $ 340,974 $ 271,606 1 Total debt as of December 31, 2018 and 2017 includes unamortized debt issuance costs of $1.4 million and $1.5 million , respectively. The Company also recorded $2.6 million and $3.2 million of debt issuance costs as of December 31, 2018 and 2017 related to the revolving credit facility within prepaid expenses and other assets in the consolidated balance sheets. |
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) 2019 $ 84,175 2020 84,644 2021 82,906 2022 174,440 2023 — Thereafter — Total $ 426,165 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | Following is a summary of the Company’s income tax expense (benefit): Year Ended December 31, (In Thousands) 2018 2017 2016 Current Income Tax Expense: Federal $ (5,380 ) $ (3,530 ) $ 103,993 State 13,015 9,772 10,308 7,635 6,242 114,301 Deferred Income Tax Expense (Benefit): Federal 48,287 (60,547 ) (33,470 ) State 72 1,346 (1,692 ) 48,359 (59,201 ) (35,162 ) Income Tax Expense (Benefit) $ 55,994 $ (52,959 ) $ 79,139 |
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) 2018 2017 Deferred Tax Liabilities: Lease Merchandise and Property, Plant and Equipment $ 174,171 $ 122,155 Goodwill and Other Intangibles 41,183 37,080 Investment in Partnership 159,070 107,173 Other, Net 1,804 2,074 Total Deferred Tax Liabilities 376,228 268,482 Deferred Tax Assets: Accrued Liabilities 21,918 25,509 Advance Payments 9,232 8,199 Other, Net 86,339 23,771 Total Deferred Tax Assets 117,489 57,479 Less Valuation Allowance — — Net Deferred Tax Liabilities $ 258,739 $ 211,003 |
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, 2018 2017 2016 Statutory Rate 21.0 % 35.0 % 35.0 % Increases (Decreases) in United States Federal Taxes Resulting From: State Income Taxes, net of Federal Income Tax Benefit 4.0 2.7 2.6 Other Permanent Differences (1.2 ) — — Federal Tax Credits (0.5 ) (0.8 ) (1.1 ) Change in Valuation Allowance — (0.4 ) — Remeasurement of net Deferred Tax Liabilities (0.2 ) (58.2 ) — Other, net (0.9 ) (0.4 ) (0.3 ) Effective Tax Rate 22.2 % (22.1 )% 36.2 % |
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) 2018 2017 2016 Balance at January 1, $ 2,269 $ 2,594 $ 3,561 Additions Based on Tax Positions Related to the Current Year 269 456 258 Additions for Tax Positions of Prior Years 615 232 293 Prior Year Reductions (85 ) (236 ) (776 ) Statute Expirations (257 ) (346 ) (609 ) Settlements (282 ) (431 ) (133 ) Balance at December 31, $ 2,529 $ 2,269 $ 2,594 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 are as follows: (In Thousands) Total 2019 $ 113,393 2020 97,640 2021 77,627 2022 58,793 2023 38,838 Thereafter 70,561 $ 456,852 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017: (In Thousands) Contractual Lease Obligations Severance Total Balance at January 1, 2017 $ 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 Charges — 601 601 Adjustments 1 2,057 — 2,057 Restructuring Charges 2,057 601 2,658 Payments (6,022 ) (2,253 ) (8,275 ) Balance at December 31, 2018 $ 8,472 $ 651 $ 9,123 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, 2018 December 31, 2017 December 31, 2016 (In Thousands) Aaron’s Business Aaron’s Business DAMI Total Aaron’s Business Contractual Lease Obligations $ 2,057 $ 13,432 $ — $ 13,432 $ 11,589 Severance 601 2,705 471 3,176 3,883 Other (Reversals) Expenses (1,176 ) 1,386 — 1,386 4,746 Gain on Sale of Closed Store Properties (377 ) — — — — Total Restructuring Expenses $ 1,105 $ 17,523 $ 471 $ 17,994 $ 20,218 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 2016 Dividend Yield 0.3 % 0.4 % 0.4 % Expected Volatility 34.8 % 32.8 % 34.2 % Risk-free Interest Rate 2.6 % 1.9 % 1.3 % Expected Term (in years) 5.3 5.3 5.3 Weighted-average Fair Value of Stock Options Granted $ 16.54 $ 8.55 $ 7.10 |
Summary Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2018 : 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 $19.92-20.00 33,250 1.15 $ 19.92 33,250 $ 19.92 20.01-30.00 1,174,285 7.29 25.50 666,915 25.47 30.01-40.00 116,496 6.07 32.13 116,496 32.13 40.01-47.26 352,650 9.18 47.26 — — 19.92-47.26 1,676,681 7.48 30.42 816,661 26.20 |
Summary of Stock Option Activity | The table below summarizes option activity for the year ended December 31, 2018 : 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, 2018 1,652 $ 25.56 Granted 361 47.26 Exercised (296 ) 23.90 Forfeited/expired (40 ) 29.77 Outstanding at December 31, 2018 1,677 30.42 7.48 $ 19,496 $ 9.98 Expected to Vest 844 34.20 8.35 6,624 11.42 Exercisable at December 31, 2018 817 26.20 6.55 12,947 8.36 |
Summary of Restricted Stock Activity | The following table summarizes information about restricted stock activity during 2018 : Restricted Stock (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2018 947 $ 27.96 Granted 248 46.01 Vested (544 ) 28.33 Forfeited (62 ) 37.46 Non-vested at December 31, 2018 589 34.18 |
Summary of Performance Share Units | The following table summarizes information about performance share unit activity during 2018 : Performance Share Units (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2018 822 $ 26.31 Granted 486 38.51 Vested (458 ) 26.96 Forfeited/unearned (51 ) 30.06 Non-vested at December 31, 2018 799 33.11 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations | Year Ended December 31, (In Thousands) 2018 2017 2016 Earnings (Loss) Before Income Tax (Benefit) Expense: Progressive Leasing $ 175,015 $ 140,224 $ 104,686 Aaron’s Business 84,683 110,642 123,009 DAMI (7,494 ) (11,289 ) (9,273 ) Total Earnings Before Income Tax (Benefit) Expense $ 252,204 $ 239,577 $ 218,422 Corporate-related assets that benefit multiple segments are reported as other assets in the table below. December 31, (In Thousands) 2018 2017 Assets: Progressive Leasing $ 1,088,227 $ 1,022,413 Aaron’s Business 1 1,483,102 1,261,234 DAMI 95,341 108,306 Other 160,022 300,311 Total Assets $ 2,826,692 $ 2,692,264 Assets From Canadian Operations (included in totals above): Aaron’s Business $ 25,893 $ 20,223 1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the consolidated balance sheets of $15.2 million and $16.3 million as of December 31, 2018 and 2017 , respectively. Year Ended December 31, (In Thousands) 2018 2017 2016 Depreciation and Amortization 1 : Progressive Leasing $ 27,974 $ 29,048 $ 30,727 Aaron’s Business 64,744 52,251 50,658 DAMI 1,432 1,273 993 Total Depreciation and Amortization $ 94,150 $ 82,572 $ 82,378 Interest Expense: Progressive Leasing $ 16,288 $ 18,577 $ 20,042 Aaron’s Business (2,944 ) (2,366 ) (768 ) DAMI 3,096 4,327 4,116 Total Interest Expense $ 16,440 $ 20,538 $ 23,390 Capital Expenditures: Progressive Leasing $ 10,711 $ 8,213 $ 6,084 Aaron’s Business 67,099 48,335 50,582 DAMI 1,035 1,425 787 Total Capital Expenditures $ 78,845 $ 57,973 $ 57,453 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. The following table presents revenue by source and by segment for the year ended December 31, 2018 : Year Ended December 31, 2018 (In Thousands) Progressive Leasing Aaron's Business 4 DAMI Total Lease Revenues and Fees 1 $ 1,998,981 $ 1,507,437 $ — $ 3,506,418 Retail Sales 2 — 31,271 — 31,271 Non-Retail Sales 2 — 207,262 — 207,262 Franchise Royalties and Fees 2 — 44,815 — 44,815 Interest and Fees on Loans Receivable 3 — — 37,318 37,318 Other — 1,839 — 1,839 Total $ 1,998,981 $ 1,792,624 $ 37,318 $ 3,828,923 1 Substantially all lease revenues and fees are within the scope of ASC 840, Leases . The Company had $19.8 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers. 2 Revenue within the scope of ASC 606, Revenue from Contracts with Customers . Of the Franchise Royalties and Fees, $33.3 million is related to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. The remaining revenue is primarily related to fees collected for pre-opening services, which are being deferred and recognized as revenue over the agreement term, and advertising fees charged to franchisees. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise. 3 Revenue within the scope of ASC 310, Credit Card Interest & Fees . 4 Includes revenues from Canadian operations of $21.3 million , which are primarily Lease Revenues and Fees. The following table presents revenue by source and by segment for the year ended December 31, 2017 : Year Ended December 31, 2017 (In Thousands) Progressive Leasing Aaron's Business 4 DAMI Total Lease Revenues and Fees 1 $ 1,566,413 $ 1,433,818 $ — $ 3,000,231 Retail Sales 2 — 27,465 — 27,465 Non-Retail Sales 2 — 270,253 — 270,253 Franchise Royalties and Fees 2 — 48,278 — 48,278 Interest and Fees on Loans Receivable 3 — — 34,925 34,925 Other — 2,556 — 2,556 Total $ 1,566,413 $ 1,782,370 $ 34,925 $ 3,383,708 1 Substantially all revenue is within the scope of ASC 840, Leases . The Company had $6.3 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers. 2 Revenue within the scope of ASC 605, Revenue from Contracts with Customers . Of the Franchise Royalties and Fees, $44.6 million relates to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise. 3 Revenue within the scope of ASC 310, Credit Card Interest & Fees. 4 Includes revenues from Canadian operations of $18.3 million , which are primarily Lease Revenues and Fees. The following table presents revenue by source and by segment for the year ended December 31, 2016 : Year Ended December 31, 2016 (In Thousands) Progressive Leasing Aaron's Business 4 DAMI Total Lease Revenues and Fees 1 $ 1,237,597 $ 1,543,227 $ — $ 2,780,824 Retail Sales 2 — 29,418 — 29,418 Non-Retail Sales 2 — 309,446 — 309,446 Franchise Royalties and Fees 2 — 58,350 — 58,350 Interest and Fees on Loans Receivable 3 — — 24,080 24,080 Other — 5,598 — 5,598 Total $ 1,237,597 $ 1,946,039 $ 24,080 $ 3,207,716 1 Substantially all revenue is within the scope of ASC 840, Leases . The Company had $2.8 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers. 2 Revenue within the scope of ASC 605, Revenue from Contracts with Customers . Of the Franchise Royalties and Fees, $53.7 million relates to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise. 3 Revenue within the scope of ASC 310, Credit Card Interest & Fees. 4 Includes revenues from Canadian operations of $12.4 million , which are primarily Lease Revenues and Fees. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | (In Thousands, Except Per Share Data) First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2018 Revenues $ 954,809 $ 927,859 $ 953,071 $ 993,184 Gross Profit * 398,703 396,763 406,541 444,979 Earnings Before Income Taxes 66,752 49,980 53,415 82,057 Net Earnings 52,246 38,501 43,720 61,743 Earnings Per Share 0.75 0.55 0.64 0.91 Earnings Per Share Assuming Dilution 0.73 0.54 0.62 0.89 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 * 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. |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Store Count by Ownership Type (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)store | Dec. 31, 2017USD ($)store | Dec. 31, 2016USD ($)store | |
Franchisor Disclosure [Line Items] | |||
Franchises granted (in number of stores) | 388 | 580 | 749 |
Progressive Leasing | |||
Franchisor Disclosure [Line Items] | |||
Invoice Volume | $ | $ 1,429,550 | $ 1,160,732 | $ 884,812 |
Operating Segments | Company-operated Aaron's Branded Stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 1,312 | 1,175 | 1,165 |
Operating Segments | Franchised Stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 377 | 551 | 699 |
Operating Segments | Systemwide Stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 1,689 | 1,726 | 1,864 |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Interest and Fees on Loans Receivable (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, merchant fee, percentage, promotional interest period one (in months) | 6 months |
Credit terms, merchant fee, percentage, promotional interest period two (in months) | 12 months |
Credit terms, merchant fee, percentage, promotional interest period three (in months) | 18 months |
Credit Card Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, privilege period | 24 months |
Credit terms, minimum payment required, percentage of outstanding loan balance | 3.50% |
Credit Card Loans | Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, merchant fee (percentage) | 3.00% |
Financing receivable promotional fees percent | 1.00% |
Credit terms, interest rate, fixed and variable (percentage) | 25.00% |
Credit Card Loans | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Credit terms, merchant fee (percentage) | 25.00% |
Financing receivable promotional fees percent | 8.00% |
Credit terms, interest rate, fixed and variable (percentage) | 34.99% |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Lease Merchandise (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | |||
Lease merchandise salvage value percentage | 0.00% | ||
Lease Merchandise, net of Accumulated Depreciation and Allowances | $ 1,318,470 | $ 1,152,135 | |
Allowance for Lease Merchandise Write offs: | |||
Beginning Balance | 35,629 | 33,399 | $ 33,405 |
Merchandise Written off, net of Recoveries | (181,252) | (143,230) | (134,110) |
Provision for Write-offs | 192,317 | 145,460 | 134,104 |
Ending Balance | $ 46,694 | 35,629 | $ 33,399 |
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 | $ 1,053,684 | 908,268 | |
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 | $ 264,786 | $ 243,867 |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Calculation of Dilutive Stock Awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Weighted Average Shares Outstanding | 69,128 | 70,837 | 72,354 |
Dilutive Effect of Share-Based Awards | 1,469 | 1,284 | 659 |
Weighted Average Shares Outstanding Assuming Dilution | 70,597 | 72,121 | 73,013 |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Accounts Receivable Net of Allowances (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | $ 98,159 | $ 99,887 |
Customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | 60,879 | 48,661 |
Corporate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | 18,171 | 23,431 |
Franchisee | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | $ 19,109 | $ 27,795 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 46,946 | $ 35,690 | $ 34,861 |
Accounts Written Off, net of Recoveries | (252,330) | (192,133) | (167,094) |
Accounts Receivable Provision | 268,088 | 203,389 | 167,923 |
Ending Balance | $ 62,704 | $ 46,946 | $ 35,690 |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Accounts Receivable Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Bad Debt Expense | $ 227,960 | $ 170,574 | $ 128,333 |
Provision for Returns and Uncollected Renewal Payments | 40,128 | 32,815 | 39,590 |
Provision for Doubtful Accounts | $ 268,088 | $ 203,389 | $ 167,923 |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Credit Quality Indicators (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
FICO Score, Less than 600 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Percentage of Loan Portfolio per FICO Score | 3.70% | 1.70% |
FICO Score, 600 to 699 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Percentage of Loan Portfolio per FICO Score | 77.90% | 76.50% |
FICO Score, Greater than 700 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Percentage of Loan Portfolio per FICO Score | 18.40% | 21.80% |
Business and Summary of Sign_12
Business and Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Prepaid Expenses | $ 30,763 | $ 31,509 |
Prepaid Insurance | 27,948 | 36,735 |
Assets Held for Sale | 6,589 | 10,118 |
Deferred Tax Asset | 8,761 | 11,589 |
Other Assets | 24,161 | 26,548 |
Prepaid Expense and Other Assets | $ 98,222 | $ 116,499 |
Business and Summary of Sign_13
Business and Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Accounts Payable | $ 88,369 | $ 80,821 |
Accrued Insurance Costs | 40,423 | 41,680 |
Accrued Salaries and Benefits | 40,790 | 46,511 |
Accrued Real Estate and Sales Taxes | 30,332 | 31,054 |
Deferred Rent | 27,270 | 29,912 |
Other Accrued Expenses and Liabilities | 65,969 | 74,832 |
Accounts Payable and Accrued Liabilities | $ 293,153 | $ 304,810 |
Business and Summary of Sign_14
Business and Summary of Significant Accounting Policies - Hurricane Impact (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 2,200,000 | |
Insurance receivable | $ 2,900,000 | 2,500,000 | 2,900,000 |
Accounts receivable and lease merchandise, additional reserves recorded | $ 3,600,000 | ||
Gain in excess of insurance receivable | 900,000 | ||
Insurance proceeds related to business interruption loss | $ 0 |
Business and Summary of Sign_15
Business and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash provided by operating activities | $ (356,498) | $ (159,135) | $ (467,236) | |
Cash provided by (used in) financing activities | (128,968) | (211,397) | (153,663) | |
Retained Earnings | 2,005,344 | 1,819,524 | ||
Customer Deposits and Advance Payments | 80,579 | 68,060 | ||
Bad Debt Expense | 227,960 | 170,574 | 128,333 | |
Pro Forma | Accounting Standards Update 2014-09, Revenue From Contracts With Customers | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Customer Deposits and Advance Payments | $ 2,400 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09, Revenue From Contracts With Customers | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained Earnings | (704) | $ (2,400) | ||
Customer Deposits and Advance Payments | 994 | |||
Progressive Leasing | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Bad Debt Expense | $ 227,800 | $ 170,500 | $ 127,900 |
Business and Summary of Sign_16
Business and Summary of Significant Accounting Policies - Summary of Goodwill by Reporting Unit (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)segments | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Goodwill [Line Items] | |||
Number of operating segments | segments | 3 | ||
Goodwill | $ 733,170 | $ 622,948 | $ 526,723 |
Progressive Leasing | |||
Goodwill [Line Items] | |||
Goodwill | $ 288,801 | $ 288,801 | $ 288,801 |
Business and Summary of Sign_17
Business and Summary of Significant Accounting Policies - Impact of Adoption on Financials (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2015 | |
Condensed Consolidated Statements of Earnings | |||||||||||||
Revenues | $ 993,184 | $ 953,071 | $ 927,859 | $ 954,809 | $ 884,627 | $ 838,883 | $ 815,644 | $ 844,554 | $ 3,828,923 | $ 3,383,708 | $ 3,207,716 | ||
Operating Expenses | 1,618,423 | 1,403,985 | 1,351,785 | ||||||||||
Operating profit | 289,608 | 254,699 | 242,676 | ||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | 82,057 | 53,415 | 49,980 | 66,752 | 60,738 | 39,221 | 56,995 | 82,623 | 252,204 | 239,577 | 218,422 | ||
Income Tax Expense (Benefit) | 55,994 | (52,959) | 79,139 | ||||||||||
Net Earnings | 61,743 | $ 43,720 | $ 38,501 | $ 52,246 | 177,560 | $ 25,341 | $ 36,335 | $ 53,300 | 196,210 | 292,536 | 139,283 | ||
Condensed Consolidated Balance Sheets | |||||||||||||
Deferred Income Taxes Payable | 267,500 | 222,592 | 267,500 | 222,592 | |||||||||
Contract with Customer, Liability | 80,579 | 68,060 | 80,579 | 68,060 | |||||||||
Total Liabilities | 1,065,984 | 964,260 | 1,065,984 | 964,260 | |||||||||
Retained Earnings | 2,005,344 | 1,819,524 | 2,005,344 | 1,819,524 | |||||||||
Total Shareholders’ Equity | 1,760,708 | 1,728,004 | 1,760,708 | 1,728,004 | 1,481,598 | $ 1,366,618 | |||||||
Total Liabilities & Shareholders’ Equity | 2,826,692 | $ 2,692,264 | 2,826,692 | 2,692,264 | |||||||||
Condensed Comprehensive Statements of Income | |||||||||||||
Comprehensive Income | 194,349 | 293,841 | 139,269 | ||||||||||
Franchise Royalties and Fees | |||||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||||
Revenues | 44,815 | $ 48,278 | $ 58,350 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||||
Operating Expenses | 1,611,210 | ||||||||||||
Operating profit | 288,250 | ||||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | 250,846 | ||||||||||||
Income Tax Expense (Benefit) | 55,661 | ||||||||||||
Net Earnings | 195,185 | ||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||
Deferred Income Taxes Payable | 267,790 | 267,790 | |||||||||||
Contract with Customer, Liability | 79,585 | 79,585 | |||||||||||
Total Liabilities | 1,065,280 | 1,065,280 | |||||||||||
Retained Earnings | 2,006,048 | 2,006,048 | |||||||||||
Total Shareholders’ Equity | 1,761,412 | 1,761,412 | |||||||||||
Total Liabilities & Shareholders’ Equity | 2,826,692 | 2,826,692 | |||||||||||
Condensed Comprehensive Statements of Income | |||||||||||||
Comprehensive Income | 193,324 | ||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Franchise Royalties and Fees | |||||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||||
Revenues | 36,245 | ||||||||||||
Accounting Standards Update 2014-09, Revenue From Contracts With Customers | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||||
Operating Expenses | 7,213 | ||||||||||||
Operating profit | 1,358 | ||||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | 1,358 | ||||||||||||
Income Tax Expense (Benefit) | 333 | ||||||||||||
Net Earnings | 1,025 | ||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||
Deferred Income Taxes Payable | (290) | (290) | |||||||||||
Contract with Customer, Liability | 994 | 994 | |||||||||||
Total Liabilities | 704 | 704 | |||||||||||
Retained Earnings | (704) | (704) | $ (2,400) | ||||||||||
Total Shareholders’ Equity | (704) | (704) | |||||||||||
Total Liabilities & Shareholders’ Equity | $ 0 | 0 | |||||||||||
Condensed Comprehensive Statements of Income | |||||||||||||
Comprehensive Income | 1,025 | ||||||||||||
Accounting Standards Update 2014-09, Revenue From Contracts With Customers | Difference between Revenue Guidance in Effect before and after Topic 606 | Franchise Royalties and Fees | |||||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||||
Revenues | $ 8,570 |
Business and Summary of Sign_18
Business and Summary of Significant Accounting Policies - Narrative (Details) shares in Thousands, £ in Millions | Jul. 27, 2017USD ($) | Oct. 01, 2016USD ($) | May 13, 2016USD ($)Store | Jan. 29, 2016USD ($) | Dec. 31, 2018USD ($)state | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)franchisestateshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of Businesses Acquired | franchise | 13 | ||||||||||||||||
Franchise royalties and fees | $ 993,184,000 | $ 953,071,000 | $ 927,859,000 | $ 954,809,000 | $ 884,627,000 | $ 838,883,000 | $ 815,644,000 | $ 844,554,000 | $ 3,828,923,000 | $ 3,383,708,000 | $ 3,207,716,000 | ||||||
Advertising costs | 37,700,000 | 34,000,000 | 40,800,000 | ||||||||||||||
Amount of cooperative advertising consideration netted against advertising expense | 28,300,000 | 22,500,000 | 22,200,000 | ||||||||||||||
Prepaid advertising asset | 1,600,000 | 1,600,000 | $ 1,400,000 | ||||||||||||||
Asset Impairment Charges | $ 20,098,000 | 0 | 0 | ||||||||||||||
Threshold period past due for write-off of lease receivable | 60 days | ||||||||||||||||
Depreciation expense for property, plant and equipment | $ 61,200,000 | 54,800,000 | 53,600,000 | ||||||||||||||
Amortization expense | 33,000,000 | 27,700,000 | 28,800,000 | ||||||||||||||
Assets Held for Sale | 6,589,000 | 6,589,000 | 10,118,000 | ||||||||||||||
Proceeds from disposition of business, net of cash acquired | 942,000 | 1,141,000 | 35,899,000 | ||||||||||||||
Impairment of indefinite-lived intangibles | $ 0 | ||||||||||||||||
Fair value of non-cash consideration | 600,000 | ||||||||||||||||
Settlement of Pre-existing Relationship | $ 5,400,000 | ||||||||||||||||
Threshold of past due financing receivable that requires allowance | 24 months | ||||||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment | 0 | ||||||||||||||||
Contract with Customer, Liability | 80,579,000 | $ 80,579,000 | 68,060,000 | ||||||||||||||
Contract with Customer, Liability, Revenue Recognized | $ 1,400,000 | ||||||||||||||||
Software | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Amortization expense | $ 14,100,000 | $ 11,500,000 | $ 9,200,000 | ||||||||||||||
Customer Relationships | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 3 years | ||||||||||||||||
Reacquired Franchise Rights | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 10 years | ||||||||||||||||
Customer Lease Contracts | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 1 year | ||||||||||||||||
Restricted stock units | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Anti-dilutive Securities excluded from the computation of earnings per share assuming dilution | shares | 347 | 140 | 939 | ||||||||||||||
Maximum | Non-compete Agreements | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 5 years | ||||||||||||||||
Maximum | Buildings and improvements | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 20 years | ||||||||||||||||
Maximum | Other depreciable property and equipment | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 15 years | ||||||||||||||||
Maximum | Software | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 10 years | ||||||||||||||||
Maximum | Software updates | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 1 month | ||||||||||||||||
Minimum | Non-compete Agreements | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 1 year | ||||||||||||||||
Minimum | Buildings and improvements | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 5 years | ||||||||||||||||
Minimum | Other depreciable property and equipment | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 1 year | ||||||||||||||||
Minimum | Software | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 5 years | ||||||||||||||||
Variable Interest Entity | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Held to maturity securities | £ 15.1 | 20,400,000 | |||||||||||||||
Asset Impairment Charges | $ 20,100,000 | ||||||||||||||||
Sales and Lease Ownership and HomeSmart | Maximum | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of royalty of gross revenue | 6.00% | ||||||||||||||||
Progressive Leasing | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Threshold period past due for write-off of lease receivable | 120 days | ||||||||||||||||
Progressive Leasing | Agreement One | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Lease agreement period | 12 months | ||||||||||||||||
Sales and Lease Ownership | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Asset impairment charge | $ 200,000 | $ 700,000 | $ 5,800,000 | ||||||||||||||
Sales and Lease Ownership | Agreement One | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Lease agreement period | 12 months | ||||||||||||||||
Sales and Lease Ownership | Agreement Two | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Lease agreement period | 18 months | ||||||||||||||||
Sales and Lease Ownership | Agreement Three | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Lease agreement period | 24 months | ||||||||||||||||
DAMI | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Proceeds from sale of buildings | $ 13,600,000 | $ 2,200,000 | |||||||||||||||
Gain on sale of corporate office building | $ 800,000 | 11,400,000 | |||||||||||||||
SEI/Aaron’s, Inc. | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Settlement of Pre-existing Relationship | $ 3,452,000 | ||||||||||||||||
SEI/Aaron’s, Inc. | Customer Relationships | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 2 years | ||||||||||||||||
SEI/Aaron’s, Inc. | Non-compete Agreements | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in 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 | ||||||||||||||||
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 | ||||||||||||||||
Progressive Leasing | Acquired Internal Use Software | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 3 years | ||||||||||||||||
Progressive Leasing | Technology | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 10 years | ||||||||||||||||
Progressive Leasing | Merchant Relationships | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in years) | 12 years | ||||||||||||||||
DAMI | Technology | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives of intangibles (in 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 | ||||||||||||||||
Proceeds from disposition of business, net of cash acquired | $ 35,000,000 | ||||||||||||||||
Impairment of long-lived assets to be disposed of | 1,100,000 | ||||||||||||||||
Other operating expense (income) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Former Headquarters Building | DAMI | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Gain on sale of corporate office building | $ 11,100,000 | ||||||||||||||||
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 | ||||||||||||||||
Other nonoperating income (expense) | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Foreign currency transaction gains and (losses) | $ (100,000) | 2,100,000 | (3,700,000) | ||||||||||||||
Initial Franchise Fees | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Contract with Customer, Liability | $ 1,400,000 | 1,400,000 | |||||||||||||||
Initial Franchise Fees | Sales and Lease Ownership and HomeSmart | Maximum | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Franchise royalties and fees | 50,000 | ||||||||||||||||
Initial Franchise Fees | Sales and Lease Ownership and HomeSmart | Minimum | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Franchise royalties and fees | 15,000 | ||||||||||||||||
Shipping and Handling | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Shipping and handling costs | 75,200,000 | $ 67,300,000 | $ 69,900,000 | ||||||||||||||
Restructuring Program 2016 and 2017 | Land and Building [Member] | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Gain on sale of corporate office building | 400,000 | ||||||||||||||||
Accounts Payable and Accrued Liabilities | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Asset retirement obligations | $ 2,700,000 | $ 2,700,000 | $ 2,500,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) customer in Thousands, $ in Thousands | Jan. 01, 2018USD ($) | Jul. 27, 2017USD ($)customerstate | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)store | Dec. 31, 2018USD ($)store | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||
Purchase price, net of cash | $ 189,901 | $ 145,558 | $ 9,762 | |||||
Franchisee Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price, net of cash | $ 189,826 | $ 189,826 | ||||||
Number of branded stores | store | 152 | 152 | ||||||
Revenues | $ 72,000 | |||||||
Earnings before income taxes | 800 | |||||||
Purchase Price | $ 195,472 | $ 195,386 | ||||||
SEI/Aaron’s, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price, net of cash | $ 140,000 | |||||||
Number of customers entity serves | customer | 90 | |||||||
Number of branded stores | state | 104 | |||||||
Number of states in which entity operates | state | 11 | |||||||
Revenues | $ 58,300 | 129,400 | ||||||
Earnings before income taxes | $ 2,500 | 11,000 | ||||||
Acquisition related costs | $ 2,100 | |||||||
Purchase Price | $ 143,540 | |||||||
Previously Reported | SEI/Aaron’s, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price, net of cash | $ 140,000 | |||||||
Favorable Operating Leases | Franchisee Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition related costs | $ 1,300 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jul. 27, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash | $ 189,901 | $ 145,558 | $ 9,762 | |||
Add: Settlement of Pre-existing Relationship | 5,400 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Goodwill | $ 733,170 | 733,170 | 622,948 | 526,723 | ||
Franchisee Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash | $ 189,826 | 189,826 | ||||
Add: Settlement of Pre-existing Relationship | 5,405 | 5,405 | ||||
Working Capital Adjustment | 241 | 155 | ||||
Consideration Transferred | 195,472 | 195,386 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||
Cash and Cash Equivalents | 43 | 43 | 43 | |||
Lease Merchandise | 59,587 | 59,616 | 59,616 | |||
Property, Plant and Equipment | 5,493 | 5,568 | 5,568 | |||
Other intangibles | 25,069 | 24,530 | 24,530 | |||
Prepaid Expenses and Other Assets | 1,060 | 1,168 | 1,168 | |||
Total Identifiable Assets Acquired | 91,252 | 90,925 | 90,925 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Accounts Payable and Accrued Expenses | (826) | (852) | (852) | |||
Customer Deposits and Advance Payments | (5,156) | (5,156) | (5,156) | |||
Total Liabilities Assumed | (5,982) | (6,008) | (6,008) | |||
Goodwill | 110,202 | 110,469 | 110,469 | |||
Net Assets Acquired | $ 85,270 | 84,917 | 84,917 | |||
Measurement Period Adjustments | ||||||
Add: Settlement of Pre-existing Relationship | 0 | |||||
Less: Working Capital Adjustments | (86) | |||||
Aggregated Consideration Transferred | (86) | |||||
Cash and Cash Equivalents | 0 | |||||
Lease Merchandise | 29 | |||||
Property, Plant and Equipment | 75 | |||||
Other Intangibles | (539) | |||||
Prepaid Expenses and Other Assets | 108 | |||||
Total Identifiable Assets Acquired | (327) | |||||
Accounts Payable and Accrued Expenses | (26) | |||||
Customer Deposits and Advance Payments | 0 | |||||
Total Liabilities Assumed | (26) | |||||
Goodwill | 267 | |||||
Net Assets Acquired (before Goodwill) | (353) | |||||
SEI/Aaron’s, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, net of cash | $ 140,000 | |||||
Add: Settlement of Pre-existing Relationship | 3,452 | |||||
Reimbursement for Insurance Costs | (100) | |||||
Working Capital Adjustment | 188 | |||||
Consideration Transferred | 143,540 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||
Cash and Cash Equivalents | 34 | |||||
Receivables | 1,345 | |||||
Lease Merchandise | 40,941 | |||||
Property, Plant and Equipment | 8,832 | |||||
Other intangibles | 13,779 | |||||
Prepaid Expenses and Other Assets | 440 | |||||
Total Identifiable Assets Acquired | 65,371 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Accounts Payable and Accrued Expenses | (6,698) | |||||
Customer Deposits and Advance Payments | (2,500) | |||||
Capital Leases | (4,514) | |||||
Total Liabilities Assumed | (13,712) | |||||
Goodwill | 91,881 | |||||
Net Assets Acquired | $ 51,659 | |||||
Progressive Leasing | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Goodwill | $ 288,801 | $ 288,801 | $ 288,801 | $ 288,801 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Jul. 27, 2017 | Dec. 31, 2018 |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles (in years) | 3 years | |
Reacquired Franchise Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles (in years) | 10 years | |
Franchisee Acquisitions | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 24,530 | |
Estimated useful lives of definite-lived intangibles (in years) | 2 years 6 months | |
Franchisee Acquisitions | Non-compete Agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 1,872 | |
Estimated useful lives of intangibles (in years) | 3 years | |
Franchisee Acquisitions | Customer Lease Contracts | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 7,864 | |
Estimated useful lives of intangibles (in years) | 1 year | |
Franchisee Acquisitions | Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 10,131 | |
Estimated useful lives of intangibles (in years) | 3 years | |
Franchisee Acquisitions | Reacquired Franchise Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 4,663 | |
Estimated useful lives of intangibles (in years) | 3 years 10 months 24 days | |
SEI/Aaron’s, Inc. | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 13,779 | |
Estimated useful lives of definite-lived intangibles (in years) | 5 years 1 month | |
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 | $ 2,154 | |
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 | $ 3,215 | |
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 | $ 3,526 | |
Estimated useful lives of intangibles (in years) | 11 years 3 months 19 days |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 733,170 | $ 622,948 | $ 526,723 |
Indefinite-lived Intangible Assets | 786,170 | 675,948 | |
Trade Names and Trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Trade Name | $ 53,000 | $ 53,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Carrying Value of Goodwill by Operating Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 622,948 | $ 526,723 |
Acquisitions | 110,469 | 97,460 |
Disposals, Currency Translation and Other Adjustments | (260) | (1,271) |
Acquisition Accounting Adjustments | 13 | 36 |
Ending Balance | 733,170 | 622,948 |
Progressive Leasing | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 288,801 | 288,801 |
Acquisitions | 0 | 0 |
Disposals, Currency Translation and Other Adjustments | 0 | 0 |
Acquisition Accounting Adjustments | 0 | 0 |
Ending Balance | 288,801 | 288,801 |
Aaron's Business | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 334,147 | 237,922 |
Acquisitions | 110,469 | 97,460 |
Disposals, Currency Translation and Other Adjustments | (260) | (1,271) |
Acquisition Accounting Adjustments | 13 | 36 |
Ending Balance | $ 444,369 | $ 334,147 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 305,715 | $ 283,108 |
Accumulated Amortization | (130,115) | (100,557) |
Net | 175,600 | 182,551 |
Acquired Internal Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 14,000 | 14,000 |
Accumulated Amortization | (14,000) | (14,000) |
Net | 0 | 0 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 68,550 | 68,550 |
Accumulated Amortization | (32,749) | (25,639) |
Net | 35,801 | 42,911 |
Merchant Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 181,000 | 181,000 |
Accumulated Amortization | (71,101) | (56,018) |
Net | 109,899 | 124,982 |
Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 42,165 | 19,558 |
Accumulated Amortization | (12,265) | (4,900) |
Net | $ 29,900 | $ 14,658 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 33 | $ 27.7 | $ 28.8 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 35,612 |
2,020 | 28,537 |
2,021 | 26,198 |
2,022 | 23,123 |
2,023 | $ 22,803 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
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 | (10,389) | (12,927) |
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, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | $ 6,589 | $ 10,118 |
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 | 6,589 | 10,118 |
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, 2018 | Dec. 31, 2017 |
Fixed-Rate Long-term Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, carrying value | $ 180 | $ 265 |
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, 2018 | Dec. 31, 2017 |
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 | 0 | 20,385 |
Fixed-Rate Long-term Debt | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, fair value | 0 | 0 |
Fixed-Rate Long-term Debt | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, fair value | (183,765) | (273,476) |
Fixed-Rate 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, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 513,779 | $ 450,310 |
Less: Accumulated Depreciation and Amortization | (284,287) | (242,623) |
Property, Plant and Equipment, Net | 229,492 | 207,687 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 19,950 | 19,768 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 67,081 | 67,053 |
Leasehold Improvements and Signs | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 83,867 | 69,407 |
Fixtures and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 210,747 | 180,553 |
Software - Internal Use | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 106,671 | 86,208 |
Assets Under Capital Leases | Related Party | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 872 | 4,032 |
Assets Under Capital Leases | Non-Related Party | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 9,487 | 12,426 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 15,104 | $ 10,863 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Internal-use software development cost, accumulated amortization | $ 56.9 | $ 42.6 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Amortization expense on assets recorded under capital leases | $ 800 | $ 1,500 | $ 1,700 |
Accumulated depreciation and amortization, capital lease assets | 284,287 | 242,623 | |
Related Party | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization, capital lease assets | 800 | 3,600 | |
Non-Related Party | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization, capital lease assets | $ 8,300 | $ 4,700 |
Loans Receivable - Components
Loans Receivable - Components of Loans Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Net [Abstract] | |||
Loans Receivable, Gross | $ 96,094 | $ 105,941 | |
Allowance for Loan Losses | (12,970) | (11,454) | $ (6,624) |
Unamortized Fees | (6,971) | (8,375) | |
Loans Receivable, Net of Allowances and Unamortized Fees | 76,153 | 86,112 | |
Credit Card Loans | |||
Financing Receivable, Net [Abstract] | |||
Loans Receivable, Gross | 90,406 | 89,728 | |
Acquired Loans | |||
Financing Receivable, Net [Abstract] | |||
Loans Receivable, Gross | $ 5,688 | $ 16,213 |
Loans Receivable - Aging of the
Loans Receivable - Aging of the Loans Receivable Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 14.60% | 14.80% |
Current loans receivable (percentage) | 85.40% | 85.20% |
Balance of Loans Receivable on Nonaccrual Status | $ 2,110 | $ 2,016 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 6.90% | 7.10% |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 3.40% | 3.60% |
90 or more Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 4.30% | 4.10% |
Balance of Loans Receivable Greater Than 90 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, 2018 | Dec. 31, 2017 | Oct. 15, 2015 | |
Components of the Allowance For Loan Losses: | |||
Beginning Balance | $ 11,454 | $ 6,624 | |
Provision for Loan Losses | 21,063 | 20,973 | |
Charge-offs | (21,190) | (16,852) | |
Recoveries | 1,643 | 709 | |
Ending Balance | $ 12,970 | $ 11,454 | |
Progressive Leasing | DAMI | Subsidiaries | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans receivable acquired | $ 89,100 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) | Oct. 23, 2018USD ($) | Apr. 14, 2014USD ($) | Jan. 31, 2018USD ($) | Nov. 30, 2004USD ($)Property | Dec. 31, 2018USD ($)lease | Oct. 22, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 05, 2011USD ($) | Dec. 31, 2002USD ($)Property |
Debt Instruments [Abstract] | |||||||||
Debt | $ 424,752,000 | $ 368,798,000 | |||||||
Less: Current Maturities | 83,778,000 | 97,192,000 | |||||||
Long-Term Debt | 340,974,000 | 271,606,000 | |||||||
Unamortized debt issuance expense | $ 1,400,000 | 1,500,000 | |||||||
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) | 3.78% | ||||||||
Revolving Facility | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt covenant, total debt to EBITDA (no greater than) | 2.5 | ||||||||
Debt covenant, total debt to Adjusted EBITDA (no greater than) | 3 | ||||||||
Line of Credit | |||||||||
Debt Instruments [Abstract] | |||||||||
Incremental increase to borrowing capacity | $ (16,000,000) | ||||||||
Decrease in credit amount outstanding | 11,000,000 | ||||||||
Line of Credit | Revolving Credit Agreement | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt issuance costs, net | 2,600,000 | 3,200,000 | |||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||||
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 | Revolving Facility | Revolving Credit Agreement | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt | 16,000,000 | 0 | |||||||
Line of credit, additional borrowing capacity (up to) | 250,000,000 | ||||||||
Line of credit amount outstanding | $ 373,000,000 | ||||||||
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% | ||||||||
Senior Unsecured Notes Issued July Twenty Eleven [Member] | |||||||||
Debt Instruments [Abstract] | |||||||||
Notes issued | $ 125,000,000 | ||||||||
Debt interest rate (percentage) | 3.95% | ||||||||
Annual principal repayment amount | $ 25,000,000 | ||||||||
Unsecured Debt | Term Loan | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt | $ 87,500,000 | ||||||||
Maximum borrowing capacity | $ 225,000,000 | ||||||||
Installment payments required | $ 5,625,000 | ||||||||
Senior Notes | Senior Unsecured Notes, 3.95%, Due in Installments through April 2018 | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt | $ 0 | 24,994,000 | |||||||
Debt interest rate (percentage) | 3.95% | ||||||||
Senior Notes | Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt | $ 179,750,000 | 239,784,000 | |||||||
Notes issued | $ 300,000,000 | ||||||||
Debt interest rate (percentage) | 4.75% | 4.75% | |||||||
Periodic payment, principal | $ 60,000,000 | ||||||||
Term Loan | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt | $ 223,837,000 | 96,272,000 | |||||||
Related Party | |||||||||
Debt Instruments [Abstract] | |||||||||
Number of capital leases with a limited liability company | lease | 3 | ||||||||
Properties sold | Property | 11 | 10 | |||||||
Borrowings collateralized by the land and buildings | $ 6,800,000 | $ 5,000,000 | |||||||
Lease term (in years) | 15 years | ||||||||
Aggregate annual rental | $ 300,000 | $ 200,000 | |||||||
Interest implicit in the leases (percentage) | 9.70% | ||||||||
Related Party | Minimum | |||||||||
Debt Instruments [Abstract] | |||||||||
Lease term (in years) | 5 years | ||||||||
Related Party | Maximum | |||||||||
Debt Instruments [Abstract] | |||||||||
Lease term (in years) | 8 years | ||||||||
Related Party | Revolving Facility | |||||||||
Debt Instruments [Abstract] | |||||||||
Lease renewal term | 5 years | ||||||||
Capital Lease Obligations, Related Party | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt | $ 123,000 | 1,314,000 | |||||||
Capital Lease Obligations | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt | 5,042,000 | $ 6,434,000 | |||||||
Lender Fees | Line of Credit | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | 400,000 | ||||||||
Third Party Legal and Administrative Fees | Line of Credit | |||||||||
Debt Instruments [Abstract] | |||||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 100,000 |
Indebtedness - Future Maturitie
Indebtedness - Future Maturities of Long Term Debt and Capital Lease Obligations (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Maturities of Long-term Debt [Abstract] | |
2,019 | $ 84,175 |
2,020 | 84,644 |
2,021 | 82,906 |
2,022 | 174,440 |
2,023 | 0 |
Thereafter | 0 |
Long-term Debt, Total | $ 426,165 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2018 | Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||||
Remeasurement of net deferred tax liabilities | $ 140,000 | |||||
Income tax receivable, related to carrybacks | $ 14,500 | |||||
Income taxes receivable, related to overpayments | 5,400 | |||||
Income tax receivable | 100,023 | 29,148 | $ 100,023 | |||
Proceeds from refund of overpaid federal tax | $ 77,000 | $ 120,000 | ||||
Uncertain tax benefits that, if recognized, would affect effective tax rate | $ 1,700 | 2,500 | 1,700 | |||
Recognized interest and penalties expense (benefit) related to unrecognized tax benefits | 100 | $ 600 | $ 100 | |||
Accrued interest and penalties | 300 | |||||
State Tax | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward | 6,900 | |||||
Federal Tax | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Net operating loss carryforwards | $ 267,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current Income Tax Expense: | |||
Federal | $ (5,380) | $ (3,530) | $ 103,993 |
State | 13,015 | 9,772 | 10,308 |
Current Income Tax Expense (Benefit), Total | 7,635 | 6,242 | 114,301 |
Deferred Income Tax Expense (Benefit): | |||
Federal | 48,287 | (60,547) | (33,470) |
State | 72 | 1,346 | (1,692) |
Deferred Income Tax Expense (Benefit), Total | 48,359 | (59,201) | (35,162) |
INCOME TAXES | $ 55,994 | $ (52,959) | $ 79,139 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Liabilities and Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Liabilities: | ||
Lease Merchandise and Property, Plant and Equipment | $ 174,171 | $ 122,155 |
Goodwill and Other Intangibles | 41,183 | 37,080 |
Investment in Partnership | 159,070 | 107,173 |
Other, Net | 1,804 | 2,074 |
Total Deferred Tax Liabilities | 376,228 | 268,482 |
Deferred Tax Assets: | ||
Accrued Liabilities | 21,918 | 25,509 |
Advance Payments | 9,232 | 8,199 |
Other, Net | 86,339 | 23,771 |
Total Deferred Tax Assets | 117,489 | 57,479 |
Less Valuation Allowance | 0 | 0 |
Total Deferred Tax Liabilities | $ 258,739 | $ 211,003 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory Rate | 21.00% | 35.00% | 35.00% |
Increases (Decreases) in United States Federal Taxes | |||
State Income Taxes, net of Federal Income Tax Benefit | 4.00% | 2.70% | 2.60% |
Effective Income Tax Rate Reconciliation, Other Permanent Differences, Percent | (1.20%) | (0.00%) | (0.00%) |
Federal Tax Credits | (0.50%) | (0.80%) | (1.10%) |
Change in Valuation Allowance | (0.00%) | (0.40%) | (0.00%) |
Remeasurement of net Deferred Tax Liabilities | (0.20%) | (58.20%) | (0.00%) |
Other, net | (0.90%) | (0.40%) | (0.30%) |
Effective Tax Rate | 22.20% | (22.10%) | 36.20% |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of activity related to uncertain tax positions: | |||
Beginning Balance | $ 2,269 | $ 2,594 | $ 3,561 |
Additions Based on Tax Positions Related to the Current Year | 269 | 456 | 258 |
Additions for Tax Positions of Prior Years | 615 | 232 | 293 |
Prior Year Reductions | (85) | (236) | (776) |
Statute Expirations | (257) | (346) | (609) |
Settlements | (282) | (431) | (133) |
Ending Balance | $ 2,529 | $ 2,269 | $ 2,594 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments Required under Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 113,393 |
2,020 | 97,640 |
2,021 | 77,627 |
2,022 | 58,793 |
2,023 | 38,838 |
Thereafter | 70,561 |
Operating leases, future minimum payments due | $ 456,852 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | Oct. 23, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 23, 2018USD ($) | Oct. 22, 2018USD ($) |
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 | $ 112,800,000 | $ 104,300,000 | $ 116,200,000 | |||
Future sublease rental income in one year | 4,100,000 | |||||
Future sublease rental income in two years | 3,000,000 | |||||
Future sublease rental income in three years | 2,300,000 | |||||
Future sublease rental income in four years | 1,400,000 | |||||
Future sublease rental income in five years | 1,000,000 | |||||
Future sublease rental income in five years and thereafter | $ 800,000 | |||||
Loan due In full, term (in days) | 90 days | |||||
Portion that company might be obligated to repay in the event franchisees defaulted | $ 39,000,000 | |||||
Fair value of franchise related borrowings | 300,000 | |||||
Loan facility maximum commitment amount | $ 55,000,000 | $ 85,000,000 | ||||
Accrued regulatory expense | 1,400,000 | 7,300,000 | ||||
Liability reserve | $ 500,000 | 600,000 | ||||
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 | $ 2,000,000 | |||||
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 | $ 1,500,000 | |||||
Minimum range of possible loss | 6,000,000 | |||||
Closure of Company Operated Stores | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Rental expense | 2,100,000 | 13,400,000 | $ 11,600,000 | |||
Marketing and Advertising Expense | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Non-cancelable commitments | 25,500,000 | |||||
Non-cancelable commitments due in 2019 | 12,200,000 | |||||
Non-cancelable commitments due in 2020 | 9,400,000 | |||||
Non-cancelable commitments due in 2021 | 2,900,000 | |||||
Non-cancelable commitments due in 2022 | 1,000,000 | |||||
Unused Credit Card Lines | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Remaining credit available | $ 316,400,000 | $ 354,500,000 | ||||
Canada | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Loan facility maximum Canadian sub facility commitment amount | $ 25,000,000 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||
Mar. 31, 2019store | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)store | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring Expenses, Net | $ 600 | $ 500 | $ (900) | $ 900 | $ 3,400 | $ 800 | $ 13,500 | $ 300 | $ 1,105 | $ 17,994 | $ 20,218 | ||
Facility Closing | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Number of store closures | store | 139 | ||||||||||||
2016 and 2017 Restructuring Program | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring Expenses, Net | $ 17,994 | $ 39,300 | |||||||||||
2016 and 2017 Restructuring Program | Facility Closing | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring Expenses, Net | 0 | ||||||||||||
2016 and 2017 Restructuring Program | Contractual Lease Obligations | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring Expenses, Net | 13,432 | ||||||||||||
Subsequent Event | 2019 Restructuring Program | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Number of store closures | store | 85 | ||||||||||||
Aaron's Business | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring Expenses, Net | 20,200 | ||||||||||||
Aaron's Business | 2016 and 2017 Restructuring Program | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring Expenses, Net | 1,105 | 17,523 | 20,218 | ||||||||||
Aaron's Business | 2016 and 2017 Restructuring Program | Facility Closing | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring Expenses, Net | (377) | 0 | 0 | ||||||||||
Aaron's Business | 2016 and 2017 Restructuring Program | Contractual Lease Obligations | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring Expenses, Net | 2,057 | $ 13,432 | $ 11,589 | ||||||||||
Minimum | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and Related Cost, Expected Cost | 12,000 | 12,000 | |||||||||||
Maximum | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and Related Cost, Expected Cost | $ 15,000 | $ 15,000 |
Restructuring - Summary of Accr
Restructuring - Summary of Accruals of Restructuring Programs (Details) - 2016 and 2017 Restructuring Program - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 14,740 | $ 12,662 |
Restructuring Charges | 601 | 16,677 |
Adjustments | 2,057 | (69) |
Restructuring Charges | 2,658 | 16,608 |
Payments | (8,275) | (14,530) |
Restructuring reserve, ending balance | 9,123 | 14,740 |
Contractual Lease Obligations | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 12,437 | 10,583 |
Restructuring Charges | 0 | 13,501 |
Adjustments | 2,057 | (69) |
Restructuring Charges | 2,057 | 13,432 |
Payments | (6,022) | (11,578) |
Restructuring reserve, ending balance | 8,472 | 12,437 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 2,303 | 2,079 |
Restructuring Charges | 601 | 3,176 |
Adjustments | 0 | 0 |
Restructuring Charges | 601 | 3,176 |
Payments | (2,253) | (2,952) |
Restructuring reserve, ending balance | $ 651 | $ 2,303 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | $ 600 | $ 500 | $ (900) | $ 900 | $ 3,400 | $ 800 | $ 13,500 | $ 300 | $ 1,105 | $ 17,994 | $ 20,218 | |
Aaron's Business | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 20,200 | |||||||||||
2016 and 2017 Restructuring Program | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 17,994 | $ 39,300 | ||||||||||
2016 and 2017 Restructuring Program | Contractual Lease Obligations | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 13,432 | |||||||||||
2016 and 2017 Restructuring Program | Severance | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 3,176 | |||||||||||
2016 and 2017 Restructuring Program | Other (Reversals) Expenses | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 1,386 | |||||||||||
2016 and 2017 Restructuring Program | Gain on Sale of Closed Store Properties | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 0 | |||||||||||
2016 and 2017 Restructuring Program | Aaron's Business | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 1,105 | 17,523 | 20,218 | |||||||||
2016 and 2017 Restructuring Program | Aaron's Business | Contractual Lease Obligations | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 2,057 | 13,432 | 11,589 | |||||||||
2016 and 2017 Restructuring Program | Aaron's Business | Severance | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 601 | 2,705 | 3,883 | |||||||||
2016 and 2017 Restructuring Program | Aaron's Business | Other (Reversals) Expenses | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | (1,176) | 1,386 | 4,746 | |||||||||
2016 and 2017 Restructuring Program | Aaron's Business | Gain on Sale of Closed Store Properties | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | $ (377) | 0 | $ 0 | |||||||||
2016 and 2017 Restructuring Program | DAMI | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 471 | |||||||||||
2016 and 2017 Restructuring Program | DAMI | Contractual Lease Obligations | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 0 | |||||||||||
2016 and 2017 Restructuring Program | DAMI | Severance | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 471 | |||||||||||
2016 and 2017 Restructuring Program | DAMI | Other (Reversals) Expenses | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | 0 | |||||||||||
2016 and 2017 Restructuring Program | DAMI | Gain on Sale of Closed Store Properties | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Charges | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Treasury Shares | 23,567,979 | 20,733,010 | |
Authorized stock repurchase program, amount | $ 331,300 | ||
Stock repurchased during period | 387 | ||
Repurchased shares, amount | $ (168,735) | $ (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 | $ (168,735) | $ (62,550) | $ (34,525) |
Nonvoting Common Stock | |||
Class of Stock [Line Items] | |||
Common stock repurchased (in shares) | 3,749,493 | 1,961,442 | 1,372,700 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 1,441,744 | ||
Stock based compensation expense | $ 28.2 | $ 27.4 | $ 21.5 |
Tax benefit from exercise of stock options | 6.9 | 10.4 | 8.2 |
Excess tax benefit from share-based compensation, operating activities | $ 5.7 | $ 1.1 | $ 0.7 |
Stock options granted (in shares) | 361,000 | 518,000 | 634,000 |
Aggregate Intrinsic value of options exercised | $ 6.6 | $ 2.6 | $ 0.4 |
Fair value of options vested | $ 3.5 | $ 1.7 | $ 1.4 |
2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unexercised options lapse period (in years) | 10 years | ||
2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unexercised options lapse period (in years) | 10 years | ||
Employee Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 174,761 | ||
Compensation cost for ESPP | $ 0.2 | ||
Unrecognized compensation expense related to non-vested award | $ 24.6 | ||
Unrecognized compensation expense related to non-vested award, recognition period (in years) | 1 year 4 months 2 days | ||
Employee Stock | Minimum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Employee Stock | Minimum | 2001 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 1 year | ||
Employee Stock | Maximum | 2015 Incentive Award Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 3 years | ||
Employee 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 | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock granted (in shares) | 248,000 | 375,000 | 379,000 |
Weighted average grant date fair value (in dollars per share) | $ 46.01 | $ 29.27 | $ 22.81 |
Total fair value of shares vesting | $ 24.8 | $ 9.9 | $ 3.8 |
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 | 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 | 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 | AMP Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period (in years) | 4 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 | 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 | 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) | 486,000 | ||
Weighted average grant date fair value (in dollars per share) | $ 38.51 | ||
Total fair value of shares vesting | $ 22.6 | $ 7.9 | $ 3.4 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend Yield | 0.30% | 0.40% | 0.40% |
Expected Volatility | 34.80% | 32.80% | 34.20% |
Risk-free Interest Rate | 2.60% | 1.90% | 1.30% |
Expected Term (in years) | 5 years 3 months 12 days | 5 years 3 months 12 days | 5 years 3 months 12 days |
Weighted-average Fair Value of Stock Options Granted (in dollars per share) | $ 16.54 | $ 8.55 | $ 7.10 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary Information about Stock Options Outstanding (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 30.42 | $ 25.56 |
$19.92-20.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 19.92 | |
Exercise price, upper range limit (in dollars per share) | $ 20 | |
Options Outstanding | 33,250 | |
Options outstanding, weighted average remaining contractual life (in years) | 1 year 1 month 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 19.92 | |
Options Exercisable | 33,250 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 19.92 | |
20.01-30.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 20.01 | |
Exercise price, upper range limit (in dollars per share) | $ 30 | |
Options Outstanding | 1,174,285 | |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 3 months 15 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 25.50 | |
Options Exercisable | 666,915 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 25.47 | |
30.01-40.00 | ||
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) | $ 40 | |
Options Outstanding | 116,496 | |
Options outstanding, weighted average remaining contractual life (in years) | 6 years 26 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 32.13 | |
Options Exercisable | 116,496 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 32.13 | |
40.01-47.26 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 40.01 | |
Exercise price, upper range limit (in dollars per share) | $ 47.26 | |
Options Outstanding | 352,650 | |
Options outstanding, weighted average remaining contractual life (in years) | 9 years 2 months 5 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 47.26 | |
Options Exercisable | 0 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0 | |
19.92-47.26 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 19.92 | |
Exercise price, upper range limit (in dollars per share) | $ 47.26 | |
Options Outstanding | 1,676,681 | |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 5 months 23 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 30.42 | |
Options Exercisable | 816,661 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 26.20 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options | |||
Beginning Balance (In Shares) | 1,652 | ||
Granted (In Shares) | 361 | 518 | 634 |
Exercised (In Shares) | (296) | ||
Forfeited/expired (In Shares) | (40) | ||
Ending Balance (In Shares) | 1,677 | 1,652 | |
Expected to Vest (In Shares) | 844 | ||
Exercisable (In Shares) | 817 | ||
Weighted Average Exercise Price | |||
Beginning Balance (in dollars per share) | $ 25.56 | ||
Granted (in dollars per share) | 47.26 | ||
Exercised (in dollars per share) | 23.90 | ||
Forfeited/expired (in dollars per share) | 29.77 | ||
Ending Balance (in dollars per share) | 30.42 | $ 25.56 | |
Expected to Vest (in dollars per share) | 34.20 | ||
Exercisable (in dollars per share) | $ 26.20 | ||
Weighted Average Remaining Contractual Term (in Years) | |||
Outstanding | 7 years 5 months 23 days | ||
Expected to Vest | 8 years 4 months 6 days | ||
Exercisable | 6 years 6 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 19,496 | ||
Expected | 6,624 | ||
Exercisable | $ 12,947 | ||
Weighted Average Fair Value | |||
Outstanding (in dollars per share) | $ 9.98 | ||
Expected to Vest (in dollars per share) | 11.42 | ||
Exercisable (in dollars per share) | $ 8.36 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Restricted Stock and Performance Share Units Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 24.8 | $ 9.9 | $ 3.8 |
Restricted Stock | |||
Beginning Balance (In Shares) | 947 | ||
Granted (In Shares) | 248 | 375 | 379 |
Vested (In Shares) | (544) | ||
Forfeited (In Shares) | (62) | ||
Ending Balance (In Shares) | 589 | 947 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 27.96 | ||
Granted (in dollars per share) | 46.01 | $ 29.27 | $ 22.81 |
Vested (in dollars per share) | 28.33 | ||
Forfeited (in dollars per share) | 37.46 | ||
Ending Balance (in dollars per share) | $ 34.18 | $ 27.96 | |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 22.6 | $ 7.9 | $ 3.4 |
Restricted Stock | |||
Beginning Balance (In Shares) | 822 | ||
Granted (In Shares) | 486 | ||
Vested (In Shares) | (51) | ||
Forfeited (In Shares) | (458) | ||
Ending Balance (In Shares) | 799 | 822 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 26.31 | ||
Granted (in dollars per share) | 38.51 | ||
Vested (in dollars per share) | 30.06 | ||
Forfeited (in dollars per share) | 26.96 | ||
Ending Balance (in dollars per share) | $ 33.11 | $ 26.31 |
Stock-based Compensation - Empl
Stock-based Compensation - Employee Stock Purchase Plan (Details) - USD ($) | May 09, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 1,441,744 | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 30.42 | $ 25.56 | |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ESPP purchase price of common stock, percent of market price, on first and last day of trading date | 85.00% | ||
Fixed contribution rate | 10.00% | ||
Maximum contribution amount | $ 25,000 | ||
Compensation cost for ESPP | $ 200,000 | ||
Number of shares issued under the ESPP | 25,239 | ||
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 174,761 | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 35.74 |
Segments - Narrative (Details)
Segments - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segmentssegment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Asset Impairment Charges | $ 20,098 | $ 0 | $ 0 | ||||||||
Number of operating segments | segments | 3 | ||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Restructuring Expenses, Net | $ 600 | $ 500 | $ (900) | $ 900 | $ 3,400 | $ 800 | $ 13,500 | $ 300 | $ 1,105 | 17,994 | 20,218 |
DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain on sale of corporate office building | $ 800 | 11,400 | |||||||||
Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring Expenses, Net | $ 20,200 | ||||||||||
HomeSmart | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Impairment of long-lived assets to be disposed of | 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 |
Segments - Disaggregated Revenu
Segments - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 993,184 | $ 953,071 | $ 927,859 | $ 954,809 | $ 884,627 | $ 838,883 | $ 815,644 | $ 844,554 | $ 3,828,923 | $ 3,383,708 | $ 3,207,716 |
Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,998,981 | 1,566,413 | 1,237,597 | ||||||||
Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,792,624 | 1,782,370 | 1,946,039 | ||||||||
DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 37,318 | 34,925 | 24,080 | ||||||||
Lease Revenues and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,506,418 | 3,000,231 | 2,780,824 | ||||||||
Lease Revenues and Fees | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,998,981 | 1,566,413 | 1,237,597 | ||||||||
Lease Revenues and Fees | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,507,437 | 1,433,818 | 1,543,227 | ||||||||
Lease Revenues and Fees | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Leases | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 19,800 | 6,300 | 2,800 | ||||||||
Retail Sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 31,271 | 27,465 | 29,418 | ||||||||
Retail Sales | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Retail Sales | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 31,271 | 27,465 | 29,418 | ||||||||
Retail Sales | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Non-Retail Sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 207,262 | 270,253 | 309,446 | ||||||||
Non-Retail Sales | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Non-Retail Sales | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 207,262 | 270,253 | 309,446 | ||||||||
Non-Retail Sales | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Franchise Royalties and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 44,815 | 48,278 | 58,350 | ||||||||
Franchise Royalties and Fees | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Franchise Royalties and Fees | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 44,815 | 48,278 | 58,350 | ||||||||
Franchise Royalties and Fees | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Interest and Fees on Loans Receivable | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 37,318 | 34,925 | 24,080 | ||||||||
Interest and Fees on Loans Receivable | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Interest and Fees on Loans Receivable | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Interest and Fees on Loans Receivable | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 37,318 | 34,925 | 24,080 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,839 | 2,556 | 5,598 | ||||||||
Other | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Other | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,839 | 2,556 | 5,598 | ||||||||
Other | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Canada Operations | Lease Revenues and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 21,300 | 18,300 | 12,400 | ||||||||
Transferred over Time | Franchise Royalties and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 33,300 | $ 44,600 | $ 53,700 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | $ 82,057 | $ 53,415 | $ 49,980 | $ 66,752 | $ 60,738 | $ 39,221 | $ 56,995 | $ 82,623 | $ 252,204 | $ 239,577 | $ 218,422 |
Assets: | 2,826,692 | 2,692,264 | 2,826,692 | 2,692,264 | |||||||
Depreciation and Amortization | 94,150 | 82,572 | 82,378 | ||||||||
Interest Expense: | 16,440 | 20,538 | 23,390 | ||||||||
Capital Expenditures: | 78,845 | 57,973 | 57,453 | ||||||||
Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | 175,015 | 140,224 | 104,686 | ||||||||
DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | (7,494) | (11,289) | (9,273) | ||||||||
Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense: | 84,683 | 110,642 | 123,009 | ||||||||
Operating Segments | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets: | 1,088,227 | 1,022,413 | 1,088,227 | 1,022,413 | |||||||
Depreciation and Amortization | 27,974 | 29,048 | 30,727 | ||||||||
Interest Expense: | 16,288 | 18,577 | 20,042 | ||||||||
Capital Expenditures: | 10,711 | 8,213 | 6,084 | ||||||||
Operating Segments | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets: | 95,341 | 108,306 | 95,341 | 108,306 | |||||||
Depreciation and Amortization | 1,432 | 1,273 | 993 | ||||||||
Interest Expense: | 3,096 | 4,327 | 4,116 | ||||||||
Capital Expenditures: | 1,035 | 1,425 | 787 | ||||||||
Operating Segments | Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Inventory, including raw materials and work-in-process | 15,200 | 16,300 | 15,200 | 16,300 | |||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets: | 160,022 | 300,311 | 160,022 | 300,311 | |||||||
Operating Segments | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets: | 1,483,102 | 1,261,234 | 1,483,102 | 1,261,234 | |||||||
Depreciation and Amortization | 64,744 | 52,251 | 50,658 | ||||||||
Interest Expense: | (2,944) | (2,366) | (768) | ||||||||
Capital Expenditures: | 67,099 | 48,335 | $ 50,582 | ||||||||
Operating Segments | Canada Operations | Aaron's Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets: | $ 25,893 | $ 20,223 | $ 25,893 | $ 20,223 |
Segments - Information on Seg_2
Segments - Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Manufacturing | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Inventory, including raw materials and work-in-process | $ 15.2 | $ 16.3 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Jan. 31, 2018USD ($) | Nov. 30, 2004USD ($)Property | Dec. 31, 2018USD ($)lease | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2002USD ($)Property | |
Related Party Transaction [Line Items] | ||||||
Lease term (in years) | 15 years | |||||
Proceeds from disposition of business, net of cash acquired | $ 942 | $ 1,141 | $ 35,899 | |||
Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Number of operating leases | lease | 5 | |||||
Properties sold | Property | 11 | 10 | ||||
Borrowings collateralized by the land and buildings | $ 6,800 | $ 5,000 | ||||
Lease term (in years) | 15 years | |||||
Aggregate annual rental | $ 300 | $ 200 | ||||
Minimum | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Lease term (in years) | 5 years | |||||
Maximum | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Lease term (in years) | 8 years |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 993,184 | $ 953,071 | $ 927,859 | $ 954,809 | $ 884,627 | $ 838,883 | $ 815,644 | $ 844,554 | $ 3,828,923 | $ 3,383,708 | $ 3,207,716 |
Gross Profit | 444,979 | 406,541 | 396,763 | 398,703 | 383,574 | 356,743 | 352,639 | 365,920 | |||
Earnings Before Income Taxes | 82,057 | 53,415 | 49,980 | 66,752 | 60,738 | 39,221 | 56,995 | 82,623 | 252,204 | 239,577 | 218,422 |
Net Earnings | $ 61,743 | $ 43,720 | $ 38,501 | $ 52,246 | $ 177,560 | $ 25,341 | $ 36,335 | $ 53,300 | $ 196,210 | $ 292,536 | $ 139,283 |
Earnings Per Share (in dollars per share) | $ 0.91 | $ 0.64 | $ 0.55 | $ 0.75 | $ 2.51 | $ 0.36 | $ 0.51 | $ 0.75 | $ 2.84 | $ 4.13 | $ 1.93 |
Earnings Per Share Assuming Dilution (in dollars per share) | $ 0.89 | $ 0.62 | $ 0.54 | $ 0.73 | $ 2.46 | $ 0.35 | $ 0.51 | $ 0.74 | $ 2.78 | $ 4.06 | $ 1.91 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Asset Impairment Charges | $ 20,098 | $ 0 | $ 0 | ||||||||
Restructuring Expenses | $ (600) | $ (500) | $ 900 | $ (900) | $ (3,400) | $ (800) | $ (13,500) | $ (300) | $ (1,105) | (17,994) | $ (20,218) |
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 | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | HomeSmart | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Impairment of long-lived assets to be disposed of | $ 1,100 |
Compensation Arrangements - Def
Compensation Arrangements - Deferred Compensation (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Deferred compensation plan liability | $ 10,400 | $ 12,900 | ||
Cash surrender value of the policies | 13,500 | 17,100 | ||
Gain on cash surrender value | 1,200 | 1,500 | $ 200 | |
Benefits paid | $ 2,700 | $ 2,300 | $ 1,400 | |
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% | |||
Nonqualified Plan | Employee | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Maximum contribution per employee (percentage) | 4.00% | |||
Vesting period | 3 years | |||
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% | |||
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% | |||
Unfunded Plan | Nonqualified Plan | Employee | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Maximum annual contributions per employee | $ 11 |
Compensation Arrangements - 401
Compensation Arrangements - 401(k) Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 6.9 | $ 5.7 | $ 5.4 |
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% |