Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 13, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-13941 | ||
Entity Registrant Name | AARON’S, INC. | ||
Entity Central Index Key | 0000706688 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | GA | ||
Entity Tax Identification Number | 58-0687630 | ||
Entity Address, Address Line One | 400 Galleria Parkway SE | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30339-3182 | ||
City Area Code | 678 | ||
Local Phone Number | 402-3000 | ||
Title of 12(b) Security | Common Stock, $0.50 Par Value | ||
Trading Symbol | AAN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,577,569,581 | ||
Entity Common Stock, Shares Outstanding (in shares) | 66,744,517 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the 2020 annual meeting of shareholders, to be filed subsequently with the Securities and Exchange Commission, or SEC, pursuant to Regulation 14A, are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and Cash Equivalents | $ 57,755 | $ 15,278 |
Accounts Receivable (net of allowances of $76,293 in 2019 and $62,704 in 2018) | 104,159 | 98,159 |
Lease Merchandise (net of accumulated depreciation and allowances of $896,056 in 2019 and $816,928 in 2018) | 1,433,417 | 1,318,470 |
Loans Receivable (net of allowances and unamortized fees of $21,134 in 2019 and $19,941 in 2018) | 75,253 | 76,153 |
Property, Plant and Equipment, Net | 237,666 | 229,492 |
Operating Lease Right-of-Use Assets | 329,211 | |
Goodwill | 736,582 | 733,170 |
Other Intangibles, Net | 190,796 | 228,600 |
Income Tax Receivable | 18,690 | 29,148 |
Prepaid Expenses and Other Assets | 114,271 | 98,222 |
Total Assets | 3,297,800 | 2,826,692 |
LIABILITIES & SHAREHOLDERS’ EQUITY: | ||
Accounts Payable and Accrued Expenses | 272,816 | 293,153 |
Accrued Regulatory Expense | 175,000 | 0 |
Deferred Income Taxes Payable | 310,395 | 267,500 |
Customer Deposits and Advance Payments | 91,914 | 80,579 |
Operating Lease Liabilities | 369,386 | |
Debt | 341,030 | 424,752 |
Total Liabilities | 1,560,541 | 1,065,984 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at December 31, 2019 and 2018; Shares Issued: 90,752,123 at December 31, 2019 and 2018 | 45,376 | 45,376 |
Additional Paid-in Capital | 290,229 | 278,922 |
Retained Earnings | 2,029,613 | 2,005,344 |
Accumulated Other Comprehensive Loss | (19) | (1,087) |
Total Stockholders' Equity before Treasury Stock | 2,365,199 | 2,328,555 |
Less: Treasury Shares at Cost | ||
Common Stock: 24,034,053 Shares at December 31, 2019 and 23,567,979 at December 31, 2018 | (627,940) | (567,847) |
Total Shareholders’ Equity | 1,737,259 | 1,760,708 |
Total Liabilities & Shareholders’ Equity | $ 3,297,800 | $ 2,826,692 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowances | $ 76,293 | $ 62,704 |
Lease Merchandise, accumulated depreciation | 896,056 | 816,928 |
Loans Receivable, allowances | $ 21,134 | $ 19,941 |
Common Stock, Par Value (in dollars per share) | $ 0.5 | $ 0.5 |
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) | 24,034,053 | 23,567,979 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES: | |||
Revenues | $ 3,947,656 | $ 3,828,923 | $ 3,383,708 |
COSTS AND EXPENSES: | |||
Depreciation of Lease Merchandise | 1,972,358 | 1,727,904 | 1,448,631 |
Operating Expenses | 1,524,849 | 1,618,423 | 1,403,985 |
Restructuring Expenses, Net | 39,990 | 1,105 | 17,994 |
Legal and Regulatory Expense | 179,261 | 0 | 0 |
Other Operating Income, Net | (11,929) | (2,116) | (535) |
Costs and Expenses, Total | 3,841,782 | 3,539,315 | 3,129,009 |
OPERATING PROFIT | 105,874 | 289,608 | 254,699 |
Interest Income | 1,790 | 454 | 1,835 |
Interest Expense | (16,967) | (16,440) | (20,538) |
Impairment of Investment | 0 | (20,098) | 0 |
Other Non-Operating Income (Expense), Net | 2,091 | (1,320) | 3,581 |
EARNINGS BEFORE INCOME TAX EXPENSE (BENEFIT) | 92,788 | 252,204 | 239,577 |
INCOME TAX EXPENSE (BENEFIT) | 61,316 | 55,994 | (52,959) |
NET EARNINGS | $ 31,472 | $ 196,210 | $ 292,536 |
EARNINGS PER SHARE (IN DOLLARS PER SHARE) | $ 0.47 | $ 2.84 | $ 4.13 |
EARNINGS PER SHARE ASSUMING DILUTION (IN DOLLARS PER SHARE) | $ 0.46 | $ 2.78 | $ 4.06 |
Lease Revenues and Fees | |||
REVENUES: | |||
Revenues | $ 3,698,491 | $ 3,506,418 | $ 3,000,231 |
Retail Sales | |||
REVENUES: | |||
Revenues | 38,474 | 31,271 | 27,465 |
COSTS AND EXPENSES: | |||
Cost of goods and services sold | 24,024 | 19,819 | 17,578 |
Non-Retail Sales | |||
REVENUES: | |||
Revenues | 140,950 | 207,262 | 270,253 |
COSTS AND EXPENSES: | |||
Cost of goods and services sold | 113,229 | 174,180 | 241,356 |
Franchise Royalties and Fees | |||
REVENUES: | |||
Revenues | 33,432 | 44,815 | 48,278 |
Interest and Fees on Loans Receivable | |||
REVENUES: | |||
Revenues | 35,046 | 37,318 | 34,925 |
Other | |||
REVENUES: | |||
Revenues | $ 1,263 | $ 1,839 | $ 2,556 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings (Loss) | $ 31,472 | $ 196,210 | $ 292,536 |
Other Comprehensive Income (Loss): | |||
Foreign Currency Translation Adjustment | 1,068 | (1,861) | 1,305 |
Total Other Comprehensive Income (Loss) | 1,068 | (1,861) | 1,305 |
Comprehensive Income | $ 32,540 | $ 194,349 | $ 293,841 |
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, 2016 | (19,304) | |||||
Beginning 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) | |||
Repurchased Shares (in shares) | (1,961) | |||||
Repurchased Shares | (62,550) | $ (62,550) | ||||
Net Earnings (Loss) | 292,536 | 292,536 | ||||
Foreign Currency Translation Adjustment | 1,305 | 1,305 | ||||
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) | |||
Repurchased Shares (in shares) | (3,750) | |||||
Repurchased Shares | (168,735) | $ (168,735) | ||||
Net Earnings (Loss) | 196,210 | 196,210 | ||||
Foreign Currency Translation Adjustment | (1,861) | (1,861) | ||||
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] | ||||||
Dividends | (9,795) | (9,795) | ||||
Stock-Based Compensation | 25,758 | 25,758 | ||||
Reissued Shares (in shares) | 690 | |||||
Reissued Shares | (5,289) | $ 9,162 | (14,451) | |||
Repurchased Shares (in shares) | (1,156) | |||||
Repurchased Shares | (69,255) | $ (69,255) | ||||
Net Earnings (Loss) | 31,472 | 31,472 | ||||
Foreign Currency Translation Adjustment | 1,068 | 1,068 | ||||
Ending Balance (in shares) at Dec. 31, 2019 | (24,034) | |||||
Ending Balance at Dec. 31, 2019 | $ 1,737,259 | $ (627,940) | $ 45,376 | $ 290,229 | $ 2,029,613 | $ (19) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends, per share (in dollars per share) | $ 0.145 | $ 0.125 | $ 0.1125 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES: | |||
Net Earnings (Loss) | $ 31,472 | $ 196,210 | $ 292,536 |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | |||
Depreciation of Lease Merchandise | 1,972,358 | 1,727,904 | 1,448,631 |
Other Depreciation and Amortization | 105,061 | 94,150 | 82,572 |
Accounts Receivable Provision | 322,963 | 268,088 | 203,389 |
Provision for Credit Losses on Loans Receivable | 21,667 | 21,063 | 20,973 |
Stock-Based Compensation | 26,548 | 28,182 | 27,400 |
Deferred Income Taxes | 49,967 | 48,359 | (59,201) |
Impairment of Assets | 30,344 | 20,098 | 1,968 |
Non-Cash Lease Expense | 114,934 | ||
Other Changes, Net | (9,886) | (2,198) | (5,932) |
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions: | |||
Additions to Lease Merchandise | (2,484,755) | (2,234,646) | (1,976,012) |
Book Value of Lease Merchandise Sold or Disposed | 401,960 | 398,748 | 415,607 |
Accounts Receivable | (331,636) | (270,888) | (208,947) |
Prepaid Expenses and Other Assets | (25,860) | 5,903 | 2,711 |
Income Tax Receivable | 10,458 | 70,875 | (88,139) |
Operating Lease Right-of-Use Assets and Liabilities | (124,384) | ||
Accounts Payable and Accrued Expenses | 20,183 | (20,367) | (2,736) |
Accrued Regulatory Expense | 175,000 | 0 | 1,314 |
Customer Deposits and Advance Payments | 10,791 | 5,017 | 3,001 |
Cash Provided by Operating Activities | 317,185 | 356,498 | 159,135 |
INVESTING ACTIVITIES: | |||
Investments in Loans Receivable | (70,313) | (64,914) | (77,951) |
Proceeds from Loans Receivable | 53,170 | 57,328 | 59,641 |
Proceeds from Investments | 1,212 | 3,066 | 2,658 |
Outflows on Purchases of Property, Plant & Equipment | (92,963) | (78,845) | (57,973) |
Proceeds from Property, Plant, and Equipment | 14,090 | 9,191 | 12,705 |
Outflows on Acquisitions of Businesses and Customer Agreements, Net of Cash Acquired | (14,285) | (189,901) | (145,558) |
Proceeds from Dispositions of Businesses and Customer Agreements, Net of Cash Disposed | 2,813 | 942 | 1,141 |
Cash Used in Investing Activities | (106,276) | (263,133) | (205,337) |
FINANCING ACTIVITIES: | |||
(Repayments) Borrowings on Revolving Facility, Net | (16,000) | (47,531) | |
(Repayments) Borrowings on Revolving Facility, Net | 16,000 | ||
Proceeds from Debt | 0 | 137,500 | 15,625 |
Repayments on Debt | (68,531) | (97,583) | (103,129) |
Acquisition of Treasury Stock | (69,255) | (168,735) | (62,550) |
Dividends Paid | (9,437) | (6,243) | (7,962) |
Issuance of Stock Under Stock Option Plans | 7,749 | 7,975 | 3,457 |
Shares Withheld for Tax Payments | (13,038) | (17,347) | (6,177) |
Debt Issuance Costs | (40) | (535) | (3,130) |
Cash Used in Financing Activities | (168,552) | (128,968) | (211,397) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 120 | (156) | 75 |
Increase (Decrease) in Cash and Cash Equivalents | 42,477 | (35,759) | (257,524) |
Cash and Cash Equivalents at Beginning of Year | 15,278 | 51,037 | 308,561 |
Cash and Cash Equivalents at End of Year | 57,755 | 15,278 | 51,037 |
Net Cash Paid (Received) During the Year: | |||
Interest | 16,460 | 16,243 | 20,492 |
Income Taxes | $ (726) | $ (63,829) | $ 98,296 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , the Company’s operating and reportable segments are Progressive Leasing, Aaron’s Business and Vive. As part of a rebranding effort, Dent-A-Med, Inc. ("DAMI") merged into a newly created wholly-owned subsidiary of the Company, Vive Financial, LLC (“Vive”), and began operating under the Vive name effective January 1, 2020. We have updated all disclosures and references of Dent-A-Med, Inc. and/or DAMI in this Annual Report on Form 10-K to reflect the change to Vive. Progressive Leasing is a virtual lease-to-own company that provides lease-purchase solutions in 46 states and the District of Columbia, including e-commerce merchants. 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 cancellable 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) 2019 2018 2017 Progressive Leasing Invoice Volume 1 $ 1,747,902 $ 1,429,550 $ 1,160,732 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, home appliances, consumer electronics and accessories to consumers with a lease-to-own agreement with no credit needed through the Company’s Aaron’s-branded stores in the United States, Canada and Puerto Rico, as well as through its e-commerce platform. 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 bedding and a significant portion of the upholstered furniture leased and sold in Company-operated and franchised stores. The following table presents store count by ownership type for the Aaron’s Business operations: Stores at December 31 (Unaudited) 2019 2018 2017 Company-operated Aaron's branded Stores 1,167 1,312 1,175 Franchised Stores 335 377 551 Systemwide Stores 1,502 1,689 1,726 Vive partners with merchants to provide a variety of revolving credit products originated through 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, appliances, electronics, jewelry and a variety of other products, to its customers for lease under certain terms agreed to by the customer. The Company’s Progressive Leasing segment offers customers of traditional and e-commerce retailers a virtual lease-purchase solution through leases with payment terms that can be renewed up to 12 months . The Company’s Aaron's-branded stores and its e-commerce platform offer leases flexible 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. The agreements are cancelable at any time by either party without penalty. Progressive Leasing lease revenues are earned prior to the lease payment due date and are recorded net of related sales taxes as earned. Payment due date terms include weekly, bi-weekly, and monthly frequencies. Revenue recorded prior to the payment due date results in unbilled receivables recognized in accounts receivable, net of allowances in the accompanying consolidated balance sheets. Beginning January 1, 2019, Progressive Leasing lease revenues are recorded net of a provision for returns and uncollectible renewal payments. 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. Aaron's Business lease revenues are recorded net of a provision for returns and uncollectible renewal payments. 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. Generally, the transfer of control occurs near or at the point of sale for retail sales. 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 franchisee realizes the benefits of having the right to access the Company's intellectual property. 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 10 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. Interest and Fees on Loans Receivable Vive 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 Vive may renew if the cardholder remains in good standing. Vive 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 Vive’s direct origination costs. The merchant fee discount and origination costs are presented net on the consolidated balance sheets in loans receivable. Cardholders generally have an initial 24 -month period that the card is active. The merchant fee discount, net of the origination costs, is amortized on a net basis and is recorded as interest and 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 (i.e., Vive) for deferred or reduced interest rates that are offered to the cardholder for a specified period on the outstanding loan balance (generally for six , 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 presented net on the consolidated balance sheets in loans receivable. The customer is typically required to make monthly minimum payments of at least 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 29% to 35.99% , are compounded daily for cards that do not qualify for deferred or reduced interest promotional periods. Interest income, which is recognized based upon the amount of the loans outstanding, is recognized as interest and fees on loans receivable when earned if collectibility is reasonably assured. For credit cards that provide deferred interest, if the balance is not paid off during the promotional period or if the cardholder defaults, interest is billed to the customers at standard rates and the cumulative amount owed is charged to the cardholder account in the month that the promotional period expires. For credit cards that provide reduced interest, if the balance is not paid off during the promotional period, interest is billed to the cardholder at standard rates in the month that the promotional period expires or when the cardholder 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 if collectibility is reasonably assured. Annual fees are charged to cardholders at the commencement of the loan and on each subsequent anniversary date. Annual fees are deferred and recognized into revenue on a straight-line basis over a one-year period. Under the provisions of the credit card agreements, 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, appliances, electronics, jewelry and a variety of other products 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 to a 0% salvage value generally over 12 months . The Company's Aaron's Business segment begins depreciating merchandise at the earlier of 12 months and one day or when the item is leased. Aaron's Business depreciates 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) 2019 2018 Merchandise on Lease, net of Accumulated Depreciation and Allowances $ 1,156,798 $ 1,053,684 Merchandise Not on Lease, net of Accumulated Depreciation and Allowances 276,619 264,786 Lease Merchandise, net of Accumulated Depreciation and Allowances $ 1,433,417 $ 1,318,470 The Company’s policies require weekly merchandise counts at its Aaron's Business 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 merchandise levels and mix by division, store, and fulfillment center, as well as the average age of merchandise on hand. If obsolete merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off. Generally, all merchandise not on lease is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off. The Company records a provision for write-offs on the allowance method, which primarily relates to its Progressive Leasing operations and, to a lesser extent, its Aaron's Business operations. The allowance for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based on historical write-off experience. 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, which is included within lease merchandise, net within the consolidated balance sheets: Year ended December 31, (In Thousands) 2019 2018 2017 Beginning Balance $ 46,694 $ 35,629 $ 33,399 Merchandise Written off, net of Recoveries (236,928 ) (181,252 ) (143,230 ) Provision for Write-offs 251,419 192,317 145,460 Ending Balance $ 61,185 $ 46,694 $ 35,629 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 incurred shipping and handling costs of $74.3 million , $75.2 million and $67.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. These costs are primarily classified within operating expenses in the accompanying consolidated statements of earnings and to a lesser extent capitalized into the cost of lease merchandise and subsequently depreciated. 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 $44.0 million , $37.7 million and $34.0 million for the years ended December 31, 2019 , 2018 and 2017 , 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 reduction of such advertising expense was $27.7 million , $28.3 million and $22.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The prepaid advertising asset was $0.3 million and $1.6 million at December 31, 2019 and 2018 , 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 13 to these consolidated financial statements. The Company estimates the fair value for the options granted on the grant date using a Black-Scholes-Merton option-pricing model. The fair value of each share of restricted stock units ("RSUs"), restricted stock awards ("RSAs") and performance share units ("PSUs") awarded is equal to the market value of a share of the Company’s common stock on the grant date. The Company estimates the fair value of awards issued under the Company's employee stock purchase plan ("ESPP") using a series of Black-Scholes pricing models that consider the components of the "lookback" feature of the plan, including the underlying stock, call option and put option. The design of awards issued under the Company's ESPP is more fully described in Note 13 to these consolidated financial statements. Deferred Income Taxes Deferred income taxes represent primarily temporary differences between the amounts of assets and liabilities for financial and tax reporting purposes. The Company’s largest temporary differences arise principally from the use of accelerated depreciation methods on lease merchandise for tax purposes. Earnings Per Share Earnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. The computation of earnings per share assuming dilution includes the dilutive effect of stock options, RSUs, RSAs, PSUs and awards issuable under the Company's 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) 2019 2018 2017 Weighted Average Shares Outstanding 67,322 69,128 70,837 Dilutive Effect of Share-Based Awards 1,309 1,469 1,284 Weighted Average Shares Outstanding Assuming Dilution 68,631 70,597 72,121 Approximately 417,000 , 347,000 and 140,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the years ended December 31, 2019 , 2018 and 2017 , 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, the Company maintained an investment classified as held-to-maturity securities in PerfectHome, which is based in the U.K., of £15.1 million ( $20.4 million ). 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. In July 2018, PerfectHome entered into the U.K.’s insolvency process and was subsequently acquired by the senior lender. The Company recorded a full impairment of the PerfectHome investment of $20.1 million during the second quarter of 2018 and has not received any repayments since the impairment charge, and the Company does not believe it will not receive any further payments on its subordinated secured notes. Accounts Receivable Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and Company-operated Aaron's stores, corporate receivables incurred during the normal course of business (primarily for vendor consideration and real estate leasing activities) and franchisee obligations. Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2019 2018 Customers $ 76,819 $ 60,879 Corporate 14,109 18,171 Franchisee 13,231 19,109 $ 104,159 $ 98,159 The Company maintains an accounts receivable allowance, which primarily relates to its Progressive Leasing operations and, to a lesser extent, its Aaron's Business operations. The Company’s policy for its Progressive Leasing segment is to record an allowance for returns and uncollectible renewal payments based on historical collection experience. During 2019, the Company adopted ASC 842, which resulted in the Progressive Leasing provision for returns and uncollectible renewal payments being recorded as a reduction of lease revenue and fees within the consolidated statements of earnings beginning January 1, 2019. The provision for returns and uncollectible renewal payments for periods prior to 2019 are reported herein as bad debt expense within operating expenses in the consolidated statements of earnings. The Progressive Leasing segment writes off lease receivables that are 120 days or more contractually past due. The Aaron's Business policy is to record 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 within the consolidated statements of earnings. Aaron's Business writes off lease receivables that are 60 days or more past due on pre-determined dates twice monthly. Vive's allowance for uncollectible merchant accounts receivable, which primarily related to cardholder returns and refunds, is recorded as bad debt expense within operating expenses in the consolidated statements of earnings. The following table shows the components of the accounts receivable allowance: Year Ended December 31, (In Thousands) 2019 2018 2017 Beginning Balance $ 62,704 $ 46,946 $ 35,690 Accounts Written Off, net of Recoveries (309,374 ) (252,330 ) (192,133 ) Accounts Receivable Provision 322,963 268,088 203,389 Ending Balance $ 76,293 $ 62,704 $ 46,946 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) 2019 2018 2017 Bad Debt Expense 1 $ 1,337 $ 227,960 $ 170,574 Provision for Returns and Uncollected Renewal Payments 2 321,626 40,128 32,815 Accounts Receivable Provision $ 322,963 $ 268,088 $ 203,389 1 Bad debt expense is recorded within operating expenses in the consolidated financial statements. 2 In accordance with the adoption of ASC 842, Progressive Leasing provision for returns and uncollectible renewal payments are recorded as a reduction to lease revenues and fees within the consolidated financial statements beginning January 1, 2019. Prior to January 1, 2019, Progressive Leasing provision for returns and uncollectible renewal payments were recorded as bad debt expense within operating expenses in the consolidated financial statements. Loans Receivable Gross loans receivable represents the principal balances of credit card charges at Vive’s participating merchants that remain due from cardholders, plus unpaid interest and fees due from cardholders. The 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 Vive 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 was 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. As of December 31, 2019, the Acquired Loans balance was zero. 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 rates are an indicator of credit risk within the loans receivable portfolio, including the migration of loans between delinquency categories over time. Charge-off rates represent another indicator of the potential for future credit losses. The risk in the loans receivable portfolio is correlated with broad economic trends, such as 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 includes 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 no later than the end of the following month after the billing cycle in which the loans receivable become 120 days past due. Vive extends or declines credit to an applicant through its bank partners based 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, 2019 and 2018 by Fair Isaac and Company (FICO) score as determined at the time of loan origination: December 31, FICO Score Category 2019 2018 600 or Less 6.7 % 3.7 % Between 600 and 700 80.1 % 77.9 % 700 or Greater 13.2 % 18.4 % 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. Certain costs incurred during the application development stage of an internal-use software project 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. All costs incurred during preliminary project and post-implementation project stages are expensed appropriately. 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 $69.5 million , $61.2 million and $54.8 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property, plant and equipment, was $18.6 million , $14.1 million and $11.5 million during the years ended December 31, 2019 , 2018 and 2017 , 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) 2019 2018 Prepaid Expenses $ 45,034 $ 30,763 Prepaid Insurance 26,393 27,948 Assets Held for Sale 10,131 6,589 Deferred Tax Asset 826 8,761 Other Assets 31,887 24,161 $ 114,271 $ 98,222 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, 2019 and 2018 . 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 exp |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During the years ended December 31, 2019 , 2018 and 2017 , cash payments, net of cash acquired, related to the acquisitions of businesses and contracts were $14.3 million , $189.9 million and $145.6 million , respectively. Cash payments made during the years ended December 31, 2019 , 2018 and 2017 principally relate to the acquisitions of Aaron's-branded franchised stores 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 acquisitions of businesses and contracts to the consolidated financial statements, other than those acquisitions described below, was not significant for the years ended December 31, 2019 , 2018 and 2017 . Franchisee Acquisitions - 2018 During 2018, the Company acquired 152 Aaron's-branded franchised stores operated by franchisees for an aggregate purchase price of $190.2 million , exclusive of the settlement of pre-existing receivables and post-closing working capital settlements. The acquired operations generated revenues of $183.3 million and $72.0 million and earnings before income taxes of $3.3 million and $0.8 million during the years ended December 31, 2019 and 2018 , respectively, which are included in our consolidated statements of earnings for the respective periods. The results of the acquired operations were negatively impacted by acquisition-related transaction and transition costs, amortization expense of the various intangible assets recorded from the acquisitions, and restructuring charges incurred under the 2019 restructuring program associated with the closure of a number of acquired stores. The revenues and earnings before income taxes of the acquired operations discussed 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 and expenses to the Company from the franchisees during the years ended December 31, 2019 and 2018 had the transaction not been completed. The 2018 acquisitions are 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 following table presents summaries of the fair value of the assets acquired and liabilities assumed in the franchisee acquisitions as of the respective acquisition dates: (in Thousands) Final Amounts Recognized as of Acquisition Dates Purchase Price $ 190,167 Add: Settlement of Accounts Receivable from Pre-existing Relationship 5,405 Add: Working Capital Adjustments 155 Aggregate Consideration Transferred 195,727 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 50 Lease Merchandise 59,616 Property, Plant and Equipment 5,568 Operating Lease Right-of-Use Assets 1 4,338 Other Intangibles 2 23,322 Prepaid Expenses and Other Assets 1,241 Total Identifiable Assets Acquired 94,135 Accounts Payable and Accrued Expenses (977 ) Customer Deposits and Advance Payments (5,156 ) Total Liabilities Assumed (6,133 ) Goodwill 3 107,725 Net Assets Acquired (excluding Goodwill) $ 88,002 1 As of the respective acquisition dates, the Company had not yet adopted ASC 842. As such, there were no operating lease right-of-use assets or operating lease liabilities recognized within the consolidated financial statements at the time of acquisition. The Company recognized operating lease right-of-use assets and operating lease liabilities for the acquired stores as part of the transition to ASC 842 on January 1, 2019. The Company finalized its valuation of assumed favorable and unfavorable real estate operating leases during 2019, which also impacted the valuation of the Company's customer lease contract and customer relationship intangible assets. As a result, measurement period adjustments of $4.3 million were recorded within operating lease right-of-use assets as net favorable, with a corresponding reduction of $1.2 million within other intangibles, net in our consolidated balance sheet. The adjustment also resulted in the recognition of immaterial adjustments to operating expenses and restructuring expenses, net during 2019 to recognize expense that would have been recorded in prior periods had the favorable lease and intangible assets been recorded as of the acquisition date. 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 the acquired geographic markets. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. The 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 7,457 1.0 Customer Relationships 9,330 3.0 Reacquired Franchise Rights 4,663 3.9 Total Acquired Intangible Assets 1 $ 23,322 1 Acquired definite-lived intangible assets have a total weighted average life of 2.5 years. The Company incurred $1.7 million of acquisition-related costs in connection with the franchisee acquisitions, substantially all of which were incurred during 2018. 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 of $122.5 million , $129.4 million , and $58.3 million , and earnings before income taxes of $3.6 million , $11.0 million , and $2.5 million for the years ended December 31, 2019 , 2018 , and 2017, respectively. These revenues and earnings before income taxes are included in our consolidated statements of earnings since the date of acquisition. 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, 2019 had the transaction not been completed. 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 Add: Settlement of Accounts Receivable from Pre-existing Relationship 3,452 Less: Reimbursement for Insurance Costs (100 ) Add: Working Capital Adjustments 188 Consideration Transferred 143,540 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 34 Accounts Receivable 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 (excluding Goodwill) $ 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 Useful 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 1 3,526 11.3 Total Acquired Intangible Assets 2 $ 13,779 1 Upon the adoption of ASC 842 on January 1, 2019, the Company reclassified the remaining favorable operating lease asset from other intangibles, net to operating lease right-of-use assets within its consolidated balance sheets. 2 Acquired definite-lived intangible assets have a total weighted average life of 5.1 years. The Company incurred $2.1 million |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 Trade Name $ 53,000 $ 53,000 Goodwill 736,582 733,170 Indefinite-lived Intangible Assets $ 789,582 $ 786,170 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, 2018 $ 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 Acquisitions — 6,526 6,526 Disposals, Currency Translation and Other Adjustments — (362 ) (362 ) Acquisition Accounting Adjustments — (2,752 ) (2,752 ) Balance at December 31, 2019 $ 288,801 $ 447,781 $ 736,582 Definite-Lived Intangible Assets The following table summarizes information related to definite-lived intangible assets at December 31 : 2019 2018 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal-Use Software 14,000 (14,000 ) — 14,000 (14,000 ) — Technology 68,550 (39,859 ) 28,691 68,550 (32,749 ) 35,801 Merchant Relationships 181,000 (86,184 ) 94,816 181,000 (71,101 ) 109,899 Other Intangibles 1 26,178 (11,889 ) 14,289 42,165 (12,265 ) 29,900 Total $ 289,728 $ (151,932 ) $ 137,796 $ 305,715 $ (130,115 ) $ 175,600 1 Other intangibles include customer relationships, non-compete agreements, reacquired franchise rights, customer lease contracts and the expanded customer base intangible asset. Total amortization expense of definite-lived intangible assets included in operating expenses in the accompanying consolidated statements of earnings was $35.6 million , $33.0 million and $27.7 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2020 $ 28,722 2021 26,038 2022 23,111 2023 22,527 2024 17,440 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ (11,201 ) $ — $ — $ (10,389 ) $ — The Company maintains the Aaron's, Inc. Deferred Compensation Plan as described in Note 17 to these consolidated financial statements. The liability is recorded in accounts payable and accrued expenses in the consolidated balance sheets. The liability represents benefits accrued for plan participants and is valued at the quoted market prices of the participants’ investment elections, which consist of equity and debt "mirror" funds. As such, the Company has classified the deferred compensation liability as a Level 2 liability. 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, 2019 December 31, 2018 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Held for Sale $ — $ 10,131 $ — $ — $ 6,589 $ — 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, net or restructuring expenses, net (if the asset is a part of the Company's restructuring programs as described in Note 11) 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 liabilities that are not measured at fair value in the consolidated balance sheets, but for which the fair value is disclosed: December 31, 2019 December 31, 2018 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Fixed-Rate Long Term Debt 1 $ — $ (123,705 ) $ — $ — $ (183,765 ) $ — 1 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 $120.0 million and $180.0 million at December 31, 2019 and 2018 , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 Land $ 16,427 $ 19,950 Buildings and Improvements 54,923 67,081 Leasehold Improvements and Signs 87,126 83,867 Fixtures and Equipment 244,623 210,747 Software - Internal-Use 135,076 106,671 Assets Under Finance Leases: with Related Parties — 872 with Unrelated Parties 3,189 9,487 Construction in Progress 7,554 15,104 548,918 513,779 Less: Accumulated Depreciation and Amortization 1 (311,252 ) (284,287 ) $ 237,666 $ 229,492 1 Accumulated amortization of internal-use software development costs amounted to $75.2 million and $56.9 million as of December 31, 2019 and 2018 , respectively. Depreciation expense on assets recorded under finance leases is included in operating expenses and was $1.5 million , $0.8 million and $1.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Finance leases as of December 31, 2019 relate to vehicles assumed as part of the SEI acquisition. Finance leases as of December 31, 2018 primarily consist of buildings and improvements, as well as vehicles assumed as part of the SEI acquisition. Assets under finance leases with related parties included $0.8 million in accumulated depreciation as of December 31, 2018 . Assets under finance leases with unrelated parties included $2.4 million and $8.3 million in accumulated depreciation as of December 31, 2019 and 2018 , respectively. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans Receivables | LOANS RECEIVABLE The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2019 2018 Credit Card Loans 1 $ 96,387 $ 90,406 Acquired Loans 2 — 5,688 Loans Receivable, Gross 96,387 96,094 Allowance for Loan Losses (14,911 ) (12,970 ) Unamortized Fees (6,223 ) (6,971 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 75,253 $ 76,153 1 "Credit Card Loans" are loans originated after the 2015 acquisition of Vive. 2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of Vive. Included in the table below is an aging of the loans receivable, gross balance: (Dollar Amounts in Thousands) December 31, Aging Category 1 2019 2018 30-59 Days Past Due 6.9 % 6.9 % 60-89 Days Past Due 3.6 % 3.4 % 90 or more Days Past Due 5.0 % 4.3 % Past Due Loans Receivable 15.5 % 14.6 % Current Loans Receivable 84.5 % 85.4 % Balance of Loans Receivable on Nonaccrual Status $ 2,284 $ 2,110 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: Year ended December 31, (In Thousands) 2019 2018 Beginning Balance $ 12,970 $ 11,454 Provision for Loan Losses 21,667 21,063 Charge-offs (22,204 ) (21,190 ) Recoveries 2,478 1,643 Ending Balance $ 14,911 $ 12,970 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES Lessor Information Refer to Note 1 to these consolidated financial statements for further information about the Company's revenue generating activities as a lessor. All of the Company's customer agreements are considered operating leases, and the Company currently does not have any sales-type or direct financing leases. Lessee Information As a lessee, the Company leases retail store and warehouse space for most of its Aaron's Business store-based operations, call center space and customer service centers for its Progressive Leasing segment, and management and information technology space for corporate functions under operating leases expiring at various times through 2033. To the extent that a leased retail store or warehouse space is vacated prior to the termination of the lease, the Company may sublease these spaces to third parties while maintaining its primary obligation as the lessee in the head lease. The Company leases transportation vehicles under operating and finance leases, most of which generally expire during the next three years . The vehicle leases generally include a residual value that is guaranteed to the lessor, which ensures that the vehicles will be returned to the lessor in reasonable working condition. The Company also leases various IT equipment such as printers and computers under operating leases, most of which generally expire during the next three years . For all of its leases in which the Company is a lessee, the Company has elected to include both the lease and non-lease components as a single component and account for it as a lease. Rental charges incurred, net of sublease receipts, was $111.7 million , $112.8 million , and $104.3 million in the years ended December 31, 2019 , 2018 , and 2017 , respectively, which are primarily classified within operating expenses in the consolidated statements of earnings, and to a lesser extent capitalized into the cost of lease merchandise and subsequently depreciated. The Company also incurred right-of-use asset impairment and contractual lease obligation charges, net of estimated sublease receipts and early lease buyout discounts, of $28.4 million , $2.1 million and $13.4 million in the years ended December 31, 2019 , 2018 , and 2017 respectively, related to the closure of Company-operated stores which are reported within restructuring expenses in the consolidated statements of earnings. Finance lease costs are comprised of the amortization of right-of-use assets and the interest accretion on discounted lease liabilities, which are recorded within operating expenses and interest expense, respectively, in the Company’s consolidated statements of earnings. Operating lease costs are recorded on a straight-line basis within operating expenses. For stores that are related to the Company's restructuring programs as described in Note 11, operating lease costs recorded subsequent to any necessary operating lease right-of-use asset impairment charges are recognized in a pattern that is generally accelerated within restructuring expenses, net in the Company’s consolidated statements of earnings. The Company’s total lease expense is comprised of the following: Year Ended December 31, (In Thousands) 2019 Finance Lease cost: Amortization of Right-of-Use Assets $ 1,542 Interest on Lease Liabilities 363 Total Finance Lease cost: 1,905 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 112,092 Operating Lease cost classified within Restructuring Expenses, Net 3,339 Sublease Receipts 2 (3,044 ) Total Operating Lease cost: 112,387 Total Lease cost $ 114,292 1 Includes short-term and variable lease costs, which are not significant. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. 2 The Company has anticipated future sublease receipts from executed sublease agreements of $2.7 million in 2020 , $2.4 million in 2021 , $1.5 million in 2022 , $1.0 million in 2023 , $0.5 million in 2024 and $0.3 million thereafter through 2025. Additional information regarding the Company’s leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2019 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Finance Leases $ 411 Operating Cash Flows for Operating Leases 126,361 Financing Cash Flows for Finance Leases 2,493 Total Cash paid for amounts included in measurement of Lease Liabilities 129,265 Right-of-Use Assets obtained in exchange for new Finance Lease Liabilities — Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities $ 53,883 Supplemental balance sheet information related to leases is as follows: (In Thousands) Balance Sheet Classification December 31, 2019 Assets Operating Lease Assets Operating Lease Right-of-Use Assets $ 329,211 Finance Lease Assets Property, Plant and Equipment, Net 768 Total Lease Assets $ 329,979 Liabilities Operating Lease Liabilities Operating Lease Liabilities $ 369,386 Finance Lease Liabilities Debt 2,670 Total Lease Liabilities $ 372,056 Most of the Company’s real estate leases contain renewal options for additional periods ranging from one to 20 years or provide for options to purchase the related property at predetermined purchase prices that do not represent bargain purchase options. The Company currently does not have any real estate leases in which it considers the renewal options to be reasonably certain of exercise, as the Company's historical experience indicates that renewal options are not reasonably certain to be exercised. Additionally, the Company's leases contain contractual renewal rental rates that are considered to be in line with market rental rates, and there are not significant economic penalties or business disruptions incurred by not exercising any renewal options. The Company uses its incremental borrowing rate as the discount rate for its leases, as the implicit rate in the lease is not readily determinable. Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company’s finance and operating leases: Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Finance Leases 5.7 % 1.5 Operating Leases 3.6 % 4.9 1 Upon adoption of ASC 842, discount rates for existing operating leases were established as of January 1, 2019. Under the short-term lease exception provided within ASC 842, the Company does not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement. Below is a summary of undiscounted finance and operating lease liabilities that have initial terms in excess of one year as of December 31, 2019 . The table also includes a reconciliation of the future undiscounted cash flows to the present value of the finance and operating lease liabilities included in the consolidated balance sheets. (In Thousands) Operating Leases Finance Leases Total 2020 $ 108,089 $ 2,006 $ 110,095 2021 91,376 801 92,177 2022 70,208 80 70,288 2023 48,773 — 48,773 2024 32,345 — 32,345 Thereafter 53,439 — 53,439 Total Undiscounted Cash Flows 404,230 2,887 407,117 Less: Interest 34,844 217 35,061 Present Value of Lease Liabilities $ 369,386 $ 2,670 $ 372,056 Sale-Leaseback Transactions In addition to the leasing activities described above, the Company entered into two separate sale and leaseback transactions related to a fulfillment and distribution center and three Company-operated store properties during the fourth quarter of 2019. The Company received net proceeds of $8.1 million and recorded gains of $5.6 million |
Leases | LEASES Lessor Information Refer to Note 1 to these consolidated financial statements for further information about the Company's revenue generating activities as a lessor. All of the Company's customer agreements are considered operating leases, and the Company currently does not have any sales-type or direct financing leases. Lessee Information As a lessee, the Company leases retail store and warehouse space for most of its Aaron's Business store-based operations, call center space and customer service centers for its Progressive Leasing segment, and management and information technology space for corporate functions under operating leases expiring at various times through 2033. To the extent that a leased retail store or warehouse space is vacated prior to the termination of the lease, the Company may sublease these spaces to third parties while maintaining its primary obligation as the lessee in the head lease. The Company leases transportation vehicles under operating and finance leases, most of which generally expire during the next three years . The vehicle leases generally include a residual value that is guaranteed to the lessor, which ensures that the vehicles will be returned to the lessor in reasonable working condition. The Company also leases various IT equipment such as printers and computers under operating leases, most of which generally expire during the next three years . For all of its leases in which the Company is a lessee, the Company has elected to include both the lease and non-lease components as a single component and account for it as a lease. Rental charges incurred, net of sublease receipts, was $111.7 million , $112.8 million , and $104.3 million in the years ended December 31, 2019 , 2018 , and 2017 , respectively, which are primarily classified within operating expenses in the consolidated statements of earnings, and to a lesser extent capitalized into the cost of lease merchandise and subsequently depreciated. The Company also incurred right-of-use asset impairment and contractual lease obligation charges, net of estimated sublease receipts and early lease buyout discounts, of $28.4 million , $2.1 million and $13.4 million in the years ended December 31, 2019 , 2018 , and 2017 respectively, related to the closure of Company-operated stores which are reported within restructuring expenses in the consolidated statements of earnings. Finance lease costs are comprised of the amortization of right-of-use assets and the interest accretion on discounted lease liabilities, which are recorded within operating expenses and interest expense, respectively, in the Company’s consolidated statements of earnings. Operating lease costs are recorded on a straight-line basis within operating expenses. For stores that are related to the Company's restructuring programs as described in Note 11, operating lease costs recorded subsequent to any necessary operating lease right-of-use asset impairment charges are recognized in a pattern that is generally accelerated within restructuring expenses, net in the Company’s consolidated statements of earnings. The Company’s total lease expense is comprised of the following: Year Ended December 31, (In Thousands) 2019 Finance Lease cost: Amortization of Right-of-Use Assets $ 1,542 Interest on Lease Liabilities 363 Total Finance Lease cost: 1,905 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 112,092 Operating Lease cost classified within Restructuring Expenses, Net 3,339 Sublease Receipts 2 (3,044 ) Total Operating Lease cost: 112,387 Total Lease cost $ 114,292 1 Includes short-term and variable lease costs, which are not significant. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. 2 The Company has anticipated future sublease receipts from executed sublease agreements of $2.7 million in 2020 , $2.4 million in 2021 , $1.5 million in 2022 , $1.0 million in 2023 , $0.5 million in 2024 and $0.3 million thereafter through 2025. Additional information regarding the Company’s leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2019 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Finance Leases $ 411 Operating Cash Flows for Operating Leases 126,361 Financing Cash Flows for Finance Leases 2,493 Total Cash paid for amounts included in measurement of Lease Liabilities 129,265 Right-of-Use Assets obtained in exchange for new Finance Lease Liabilities — Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities $ 53,883 Supplemental balance sheet information related to leases is as follows: (In Thousands) Balance Sheet Classification December 31, 2019 Assets Operating Lease Assets Operating Lease Right-of-Use Assets $ 329,211 Finance Lease Assets Property, Plant and Equipment, Net 768 Total Lease Assets $ 329,979 Liabilities Operating Lease Liabilities Operating Lease Liabilities $ 369,386 Finance Lease Liabilities Debt 2,670 Total Lease Liabilities $ 372,056 Most of the Company’s real estate leases contain renewal options for additional periods ranging from one to 20 years or provide for options to purchase the related property at predetermined purchase prices that do not represent bargain purchase options. The Company currently does not have any real estate leases in which it considers the renewal options to be reasonably certain of exercise, as the Company's historical experience indicates that renewal options are not reasonably certain to be exercised. Additionally, the Company's leases contain contractual renewal rental rates that are considered to be in line with market rental rates, and there are not significant economic penalties or business disruptions incurred by not exercising any renewal options. The Company uses its incremental borrowing rate as the discount rate for its leases, as the implicit rate in the lease is not readily determinable. Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company’s finance and operating leases: Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Finance Leases 5.7 % 1.5 Operating Leases 3.6 % 4.9 1 Upon adoption of ASC 842, discount rates for existing operating leases were established as of January 1, 2019. Under the short-term lease exception provided within ASC 842, the Company does not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement. Below is a summary of undiscounted finance and operating lease liabilities that have initial terms in excess of one year as of December 31, 2019 . The table also includes a reconciliation of the future undiscounted cash flows to the present value of the finance and operating lease liabilities included in the consolidated balance sheets. (In Thousands) Operating Leases Finance Leases Total 2020 $ 108,089 $ 2,006 $ 110,095 2021 91,376 801 92,177 2022 70,208 80 70,288 2023 48,773 — 48,773 2024 32,345 — 32,345 Thereafter 53,439 — 53,439 Total Undiscounted Cash Flows 404,230 2,887 407,117 Less: Interest 34,844 217 35,061 Present Value of Lease Liabilities $ 369,386 $ 2,670 $ 372,056 Sale-Leaseback Transactions In addition to the leasing activities described above, the Company entered into two separate sale and leaseback transactions related to a fulfillment and distribution center and three Company-operated store properties during the fourth quarter of 2019. The Company received net proceeds of $8.1 million and recorded gains of $5.6 million |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Indebtedness | INDEBTEDNESS Following is a summary of the Company’s debt, net of unamortized debt issuance costs: December 31, (In Thousands) 2019 2018 Revolving Facility $ — $ 16,000 Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 119,847 179,750 Term Loan, Due in Installments through September 2022 218,513 223,837 Finance Lease Obligation: with Related Parties — 123 with Unrelated Parties 2,670 5,042 Total Debt 1 341,030 424,752 Less: Current Maturities 83,886 83,778 Long-Term Debt $ 257,144 $ 340,974 1 Total debt as of December 31, 2019 and 2018 includes unamortized debt issuance costs of $1.0 million and $1.4 million , respectively. The Company also recorded $1.9 million and $2.6 million of debt issuance costs as of December 31, 2019 and 2018 related to the revolving credit facility within prepaid expenses and other assets in the consolidated balance sheets. Revolving Credit and Term Loan Agreement On January 21 and February 19, 2020 , the Company amended its revolving credit and term loan agreement (the "Credit Agreement") to, among other changes: (i) increase the revolving credit commitment from $400.0 million to $500.0 million , (ii) increase borrowings under the term loan to $225.0 million , (iii) extend the maturity date for the revolving credit commitment and term loan from September 18, 2022 to January 21, 2025 , (iv) amend the definition of adjusted EBITDA to exclude certain charges, and (v) modify certain other terms and conditions. The amended agreement continues to provide for quarterly repayment installments of $5.6 million under the $225.0 million term loan. The quarterly term loan repayment installments are payable on the last day of each March, June, September, and December beginning on December 31, 2020, with the remaining principal balance payable upon the maturity date of January 21, 2025 . Prior to the amendment, the term loan outstanding balance was $219.4 million as of December 31, 2019, and the term loan interest rate was 3.05% . The interest rate on the revolving credit and term loan agreement borrowings bear interest at an adjusted London Interbank Overnight (LIBO) rate plus a margin within a range of 1.25% to 2.25% depending on the Company’s total net debt to adjusted 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 adjusted EBITDA. Total net debt refers to the Company's consolidated total debt minus certain unrestricted cash, as defined in the Credit Agreement. 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 Credit Agreement. 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 net debt to adjusted EBITDA. As of December 31, 2019 , the amount available under the revolving credit component of the Credit Agreement was reduced by approximately $13.8 million for our outstanding letters of credit, resulting in availability of $386.2 million . Senior Unsecured Notes 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 10 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. 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, 2019 , the Company was in compliance with all covenants related to its outstanding debt. Future principal maturities under the Company’s debt and finance lease obligations as of December 31, 2019 are as follows: (In Thousands) 2020 $ 84,321 2021 83,271 2022 174,453 2023 — 2024 — Thereafter — Total $ 342,045 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Following is a summary of the Company’s income tax expense (benefit): Year Ended December 31, (In Thousands) 2019 2018 2017 Current Income Tax Expense: Federal $ 2,033 $ (5,380 ) $ (3,530 ) State 9,316 13,015 9,772 11,349 7,635 6,242 Deferred Income Tax Expense (Benefit): Federal 49,911 48,287 (60,547 ) State 56 72 1,346 49,967 48,359 (59,201 ) Income Tax Expense (Benefit) $ 61,316 $ 55,994 $ (52,959 ) Significant components of the Company’s deferred income tax liabilities and assets are as follows: December 31, (In Thousands) 2019 2018 Deferred Tax Liabilities: Lease Merchandise and Property, Plant and Equipment $ 176,017 $ 174,171 Goodwill and Other Intangibles 44,435 41,183 Investment in Partnership 191,114 159,070 Operating Lease Right-of-Use Assets 75,146 — Other, Net 2,019 1,804 Total Deferred Tax Liabilities 488,731 376,228 Deferred Tax Assets: Accrued Liabilities 20,221 21,918 Advance Payments 9,575 9,232 Operating Lease Liabilities 83,154 — Other, Net 66,212 86,339 Total Deferred Tax Assets 179,162 117,489 Less Valuation Allowance — — Net Deferred Tax Liabilities $ 309,569 $ 258,739 The Company’s effective tax rate differs from the statutory United States Federal income tax rate as follows: Year Ended December 31, 2019 2018 2017 Statutory Rate 21.0 % 21.0 % 35.0 % Increases (Decreases) in United States Federal Taxes Resulting From: State Income Taxes, net of Federal Income Tax Benefit 9.8 4.0 2.7 Permanent difference for loss on Progressive FTC matter 39.6 — — Other Permanent Differences (2.5 ) (1.2 ) — Federal Tax Credits (2.3 ) (0.5 ) (0.8 ) Change in Valuation Allowance — — (0.4 ) Remeasurement of net Deferred Tax Liabilities (1.8 ) (0.2 ) (58.2 ) Other, net 2.3 (0.9 ) (0.4 ) Effective Tax Rate 66.1 % 22.2 % (22.1 )% 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 . 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. The Company was in a net operating loss position for tax purposes in 2017 and 2018 as a result of the Tax Act's 100% expense deduction on qualified depreciable assets discussed above. The net operating loss and credits earned during 2017 were carried back and generated refunds of $15.6 million received in March 2019. The net operating loss earned during 2018 must be carried forward and will be available to offset 80% of future taxable income as provided by the Tax Act. The Company is estimating taxable income in 2019. As stated above, the net operating loss earned during 2018 will be available to offset 80% of 2019 taxable income. At December 31, 2019 , the Company had approximately $187 million of federal tax net operating loss carryforwards, which can be carried forward indefinitely and will not expire, and $4.1 million of federal foreign tax credit carryforwards, which will begin to expire in 2027. In addition, at December 31, 2019 , the Company had $4.7 million of tax-effected state net operating loss carryforwards and $8.1 million of state tax credit carryforwards, which will both begin to expire in 2022. 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. 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 2016 . The following table summarizes the activity related to the Company’s uncertain tax positions: Year Ended December 31, (In Thousands) 2019 2018 2017 Balance at January 1, $ 2,529 $ 2,269 $ 2,594 Additions Based on Tax Positions Related to the Current Year 236 269 456 Additions for Tax Positions of Prior Years 1,957 615 232 Prior Year Reductions (76 ) (85 ) (236 ) Statute Expirations (306 ) (257 ) (346 ) Settlements — (282 ) (431 ) Balance at December 31, $ 4,340 $ 2,529 $ 2,269 As of December 31, 2019 and 2018 , the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $4.2 million and $2.5 million , respectively, including interest and penalties. During the years ended December 31, 2019 and 2018 , the Company recognized interest and penalties of $0.2 million and $0.1 million , respectively. During the year ended December 31, 2017 , the Company recognized a net benefit of $0.6 million related to interest and penalties. The Company had $0.5 million and $0.3 million of accrued interest and penalties at December 31, 2019 and 2018 , 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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees The Company has guaranteed certain debt obligations of some of the franchisees under a franchise loan program with one of the banks in our Credit Facilities. 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, 2019 , the maximum amount that the Company would be obligated to repay in the event franchisees defaulted was $29.4 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's losses associated with the program have been immaterial. The Company believes that any future amounts to be funded by the Company in connection with these guarantees will be immaterial. The carrying amount of the franchisee-related borrowings guarantee, which is included in accounts payable and accrued expenses in the consolidated balance sheets, was $0.3 million as of December 31, 2019 and 2018 , respectively. On October 11, 2019, the Company amended its franchisee loan facility to (i) reduce the total commitment amount from $55.0 million to $40.0 million ; and (ii) extend the maturity date to October 22, 2020 . 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 8 to these consolidated financial statements for more information regarding the Company's financial covenants. Subsequent Event - Franchisee Loan Facility Amendment On January 21 and February 19, 2020, the Company further amended the franchisee loan agreement to, among other changes: (i) reduce the facility commitment from $40.0 million to $35.0 million , (ii) extend the commitment termination date thereunder from October 22, 2020 to January 20, 2021 , (iii) amend the definition of adjusted EBITDA to exclude certain charges, and (iv) modify certain other terms and conditions. The terms of the loan facility include an option to further reduce the maximum facility commitment amount by providing written notice to the lender, which the Company subsequently exercised on February 11, 2020 to reduce the facility commitment to $25.0 million . 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, 2019 and 2018 , the Company had accrued $182.9 million and $1.4 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 December 31, 2019 accrual includes a $175.0 million tentative settlement with the Federal Trade Commission (the "FTC") discussed in more detail below. Of the amount accrued, the Company believes that $5.7 million is probable of recovery via payments received from insurance proceeds as of December 31, 2019 . The Company records these liabilities in accounts payable and accrued expenses in the consolidated balance sheet. The corresponding expected insurance recoveries are recorded within prepaid expenses and other assets in the consolidated balance sheet. 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 $2.0 million . At December 31, 2019 , the Company estimated that the aggregate range of loss for all material pending legal and regulatory proceedings for which a loss is reasonably possible, but less likely than probable (i.e., excluding the contingencies described in the preceding paragraph), is between $0 and $1.0 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. Regulatory Inquiries In July 2018, the Company received civil investigative demands ("CIDs") from the FTC regarding disclosures related to lease-to-own and other financial products offered by the Company through the Aaron's Business and Progressive Leasing and whether such disclosures violate the Federal Trade Commission Act (the "FTC Act"). Although we believe such disclosures were in compliance with the FTC Act and have not admitted to any wrongdoing, in December 2019, Progressive Leasing reached an agreement in principle with the staff of the FTC with respect to a tentative settlement to resolve the FTC inquiry, with Progressive undertaking to make a lump-sum payment of $175.0 million to the FTC. In January 2020, Progressive and FTC staff agreed in principle on the terms of a related consent order which, among other matters, requires Progressive to undertake certain compliance-related activities, including monitoring, disclosure and reporting requirements. Because Progressive reached a tentative agreement with respect to the financial terms of the settlement in December 2019, the Company has recognized a charge during the fourth quarter of $179.3 million , including $4.3 million of incurred legal fees. The proposed consent order is subject to the approval of both the FTC and the United States District Court for the Northern District of Georgia, and there can be no assurance that such approval will be obtained or that the terms of any settlement will be as currently agreed between the parties. In April 2019, the Aaron’s Business, along with other lease-to-own companies, received an unrelated CID from the FTC focused on certain transactions involving the contingent purchase and sale of customer lease agreements with other lease-to-own companies, and whether such transactions violated the FTC Act. Although we believe those transactions did not violate any laws, in August 2019, the Company reached an agreement in principle with the FTC staff to resolve that CID. The proposed consent agreement, which would prohibit such contingent purchases and sales of customer lease portfolios in the future but would not require any payments to the FTC, remains subject to the approval of the Commission. Other Contingencies At December 31, 2019 , the Company had non-cancelable commitments primarily related to certain advertising and marketing programs, consulting agreements, software licenses, and hardware and software maintenance of $30.9 million . Payments under these commitments are scheduled to be $18.3 million in 2020 , $11.0 million in 2021 , and $1.6 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 Vive business, had unfunded lending commitments totaling $225.0 million and $316.4 million as of December 31, 2019 and 2018 , 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 $0.4 million and $0.5 million as of December 31, 2019 and 2018 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING 2019 Restructuring Program During the first quarter of 2019, the Company initiated a restructuring program to further optimize its Company-operated Aaron's Business store portfolio, which resulted in the closure and consolidation of 155 underperforming Company-operated stores during 2019. The Company also further rationalized its home office and field support staff, which resulted in a reduction in employee headcount in those areas to more closely align with current business conditions. Total net restructuring expenses of $38.4 million were recorded during the year ended December 31, 2019 under the 2019 restructuring program, all of which were incurred within the Aaron's Business segment. Restructuring expenses were comprised mainly of closed store operating lease right-of-use asset impairment and operating lease charges, the impairment of vacant store properties, including the planned exit from one of our store support buildings , workforce reductions, and a loss on the sale of six Canadian stores to a third party. These costs were included in restructuring expenses, net in the consolidated statements of earnings. We also expect future restructuring expenses (reversals) due to changes in expected sublease activity and potential early buyouts of leases with landlords, as well as continuing variable maintenance charges and taxes. The Company continually evaluates its Company-operated Aaron's Business store portfolio to determine if it will further rationalize its store base to better align with marketplace demand. Additional restructuring charges may result from our strategy to reposition and reinvest in our next generation store concepts to appeal to our target customer market in better, more profitable locations. 2017 and 2016 Restructuring Programs During the years 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 $1.6 million were recorded during the year ended December 31, 2019 under the 2017 and 2016 restructuring programs, all of which were incurred within the Aaron's Business segment. Restructuring activity for the year ended December 31, 2019 was comprised principally of operating lease charges for stores closed under the restructuring programs. These costs were included in restructuring expenses, net in the consolidated statements of earnings. We expect future restructuring expenses (reversals) due to changes in expected future sublease activity and potential early buyouts of leases with landlords, as well as continuing variable maintenance charges and taxes. To date, the Company has incurred charges of $40.9 million under the 2017 and 2016 restructuring programs. 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, 2019 and 2018 : (In Thousands) Contractual Lease Obligations Severance Total Balance at January 1, 2018 $ 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 ASC 842 Transition Adjustment 1 (8,472 ) — (8,472 ) Adjusted Balance at January 1, 2019 — 651 651 Restructuring Charges — 3,403 3,403 Payments — (3,298 ) (3,298 ) Balance at December 31, 2019 $ — $ 756 $ 756 1 Upon the adoption of ASC 842 on January 1, 2019, the Company reclassified the remaining liability for contractual lease obligations from accounts payable and accrued expenses to a reduction to operating lease right-of-use assets within its consolidated balance sheets. The following table summarizes restructuring charges by segment: Years Ended December 31, 2019 2018 2017 (In Thousands) Aaron’s Business Aaron’s Business Aaron’s Business Vive Total Right-of-Use Asset Impairment and Operating Lease Charges $ 28,411 $ 2,057 $ 13,432 $ — $ 13,432 Fixed Asset Impairment 5,238 — 1,386 — 1,386 Severance 3,403 601 2,705 471 3,176 Other Expenses (Reversals) 1,886 (1,176 ) — — — Loss (Gain) on Sale of Store Properties 1,052 (377 ) — — — Total Restructuring Expenses $ 39,990 $ 1,105 $ 17,523 $ 471 $ 17,994 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY At December 31, 2019 , the Company held 24,034,053 shares in its treasury and had the authority to purchase additional shares up to its remaining authorization limit of $262.0 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, 2019 , the Company had issued approximately 398,000 unvested restricted stock awards that contain voting rights but are not presented as outstanding on the consolidated balance sheet. In 2019 , the Company repurchased 1,156,184 shares of its common stock for $69.3 million . 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 . 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, 2019 , no preferred shares have been issued. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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. The 2015 Plan was subsequently amended and restated with shareholder approval in February 2019. 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, 2019 , the aggregate number of shares of common stock that may be issued or transferred under the 2015 Plan is 3,772,517 . The Company has elected a policy to estimate forfeitures in determining the amount of stock compensation expense. Total stock-based compensation expense was $26.5 million , $28.2 million and $27.4 million for the years ended December 31, 2019 , 2018 and 2017 , 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 $6.6 million , $6.9 million and $10.4 million in the years ended December 31, 2019 , 2018 and 2017 , respectively. Benefits of tax deductions in excess of recognized compensation cost, which are included in operating cash flows, were $4.8 million , $5.7 million and $1.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , 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 293,000 , 361,000 and 518,000 stock options during the years ended December 31, 2019 , 2018 and 2017 , 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: 2019 2018 2017 Dividend Yield 0.3 % 0.3 % 0.4 % Expected Volatility 36.5 % 34.8 % 32.8 % Risk-free Interest Rate 2.5 % 2.6 % 1.9 % Expected Term (in years) 5.3 5.3 5.3 Weighted-average Fair Value of Stock Options Granted $ 19.59 $ 16.54 $ 8.55 The following table summarizes information about stock options outstanding at December 31, 2019 : 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 11,250 0.15 $ 19.92 11,250 $ 19.92 20.01-30.00 1,006,783 6.23 25.51 851,403 25.21 30.01-40.00 97,301 5.01 32.16 97,301 32.16 40.01-50.00 330,890 8.04 47.26 103,430 47.26 50.01-54.18 283,590 9.02 54.18 — — 19.92-54.18 1,729,814 6.93 34.71 1,063,384 27.93 The table below summarizes option activity for the year ended December 31, 2019 : 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, 2019 1,677 $ 30.42 Granted 293 54.18 Exercised (217 ) 26.76 Forfeited/expired (23 ) 44.69 Outstanding at December 31, 2019 1,730 34.71 6.93 $ 38,754 $ 11.67 Expected to Vest 654 45.36 8.29 7,687 15.91 Exercisable at December 31, 2019 1,063 27.93 6.10 31,028 8.97 The aggregate intrinsic value amounts in the table above represent the closing price of the Company’s common stock on December 31, 2019 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 $6.5 million , $6.6 million and $2.6 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. The total grant-date fair value of options vested during the year ended December 31, 2019 , 2018 and 2017 was $4.6 million , $3.5 million and $1.7 million , respectively. Restricted Stock 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 is 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 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, 2019 , there are no performance-based restricted shares still subject to performance conditions. The Company granted 225,000 , 248,000 and 375,000 shares of restricted stock at weighted-average fair values of $54.28 , $46.01 and $29.27 in the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table summarizes information about restricted stock activity during 2019 : Restricted Stock (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2019 589 $ 34.18 Granted 225 54.28 Vested (280 ) 30.96 Forfeited/unearned (40 ) 44.45 Non-vested at December 31, 2019 494 44.33 The total vest-date fair value of restricted stock described above that vested during the year was $14.6 million , $24.8 million and $9.9 million in the years ended December 31, 2019 , 2018 and 2017 , 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. Another one-third of the earned award is subject to an additional one -year service period and the remaining one-third of the earned award is subject to an additional two -year service period. Shares are issued from the Company’s treasury shares upon vesting. The number of performance-based shares which could potentially be issued ranges from zero to 200% of the target award. The fair value of performance share units is based on the fair market value of the Company’s common stock on the date of grant. The compensation expense associated with these awards is amortized on an accelerated basis over the vesting period based on the Company’s projected assessment of the level of performance that will be achieved and earned. In the event the Company determines it is no longer probable that the minimum performance criteria specified in the plan will be achieved, all previously recognized compensation expense is reversed in the period such a determination is made. The following table summarizes information about performance share unit activity during 2019 : Performance Share Units (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2019 799 $ 33.11 Granted 248 54.27 Vested (425 ) 29.89 Forfeited/unearned (40 ) 41.27 Non-vested at December 31, 2019 582 43.93 The total vest-date fair value of performance share units described above that vested during the period was $22.1 million , $22.6 million and $7.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Employee Stock Purchase Plan Effective May 9, 2018, the Company's Board of Directors and shareholders approved the Employee Stock Purchase Plan, 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 up to an annual maximum of $25,000 in total fair market value of the common stock. 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. Total compensation cost recognized in connection with the ESPP was $0.5 million and $0.2 million for years ended December 31, 2019 and 2018 , respectively. These costs were included as a component of operating expenses in the consolidated statements of earnings. During the year ended December 31, 2019 , the Company issued 46,642 shares under the ESPP at a weighted average purchase price of $42.07 . During the year ended December 31, 2018 , the Company issued 25,239 shares at a purchase price of $35.74 . As of December 31, 2019 , the aggregate number of shares of common stock that may be issued under the ESPP was 128,134 . |
Segments
Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS Description of Products and Services of Reportable Segments As of December 31, 2019 , the Company has three operating and reportable segments: Progressive Leasing, Aaron’s Business and Vive. As discussed above, we have updated all disclosures and references of DAMI in this Annual Report on Form 10-K to reflect the January 1, 2020 name change to Vive. 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, mobile phones and accessories, mattress, and automobile electronics and accessories. The Aaron’s Business offers furniture, home appliances, consumer electronics and accessories to consumers with a 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 platform. 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 bedding and a significant portion of the upholstered furniture leased and sold in Company-operated and franchised stores. Vive offers a variety of second-look financing programs originated through third-party federally insured banks to customers of participating merchants and, together with Progressive Leasing, allows the Company to provide 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, 2019 : Year Ended December 31, 2019 (In Thousands) Progressive Leasing Aaron's Business 4 Vive Total Lease Revenues and Fees 1 $ 2,128,133 $ 1,570,358 $ — $ 3,698,491 Retail Sales 2 — 38,474 — 38,474 Non-Retail Sales 2 — 140,950 — 140,950 Franchise Royalties and Fees 2 — 33,432 — 33,432 Interest and Fees on Loans Receivable 3 — — 35,046 35,046 Other — 1,263 — 1,263 Total $ 2,128,133 $ 1,784,477 $ 35,046 $ 3,947,656 1 Substantially all lease revenues and fees are within the scope of ASC 842, Leases . The Company had $27.4 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, $25.5 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 $24.7 million , which are primarily Lease Revenues and Fees. 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 Vive 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 revenue is 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 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 $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 Vive 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 605, 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. 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) 2019 2018 2017 Earnings (Loss) Before Income Tax (Benefit) Expense: Progressive Leasing $ 55,711 $ 175,015 $ 140,224 Aaron’s Business 46,731 84,683 110,642 Vive (9,654 ) (7,494 ) (11,289 ) Total Earnings Before Income Tax (Benefit) Expense $ 92,788 $ 252,204 $ 239,577 Corporate-related assets that benefit multiple segments are reported as other assets in the table below. December 31, (In Thousands) 2019 2018 Assets: Progressive Leasing $ 1,261,786 $ 1,088,227 Aaron’s Business 1 1,740,281 1,483,102 Vive 85,825 95,341 Other 209,908 160,022 Total Assets 2 $ 3,297,800 $ 2,826,692 Assets From Canadian Operations (included in totals above): Aaron’s Business $ 28,152 $ 25,893 1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the consolidated balance sheets of $14.0 million and $15.2 million as of December 31, 2019 and 2018 , respectively. 2 In accordance with the adoption of ASC 842 the Company, as a lessee, is required to recognize substantially all of its operating leases on the balance sheet as operating lease right-of-use assets and operating lease liabilities. For periods prior to the year ended December 31, 2019 the Company's operating lease right of use assets and liabilities are not included on the Company's balance sheet. Year Ended December 31, (In Thousands) 2019 2018 2017 Depreciation and Amortization 1 : Progressive Leasing $ 29,967 $ 27,974 $ 29,048 Aaron’s Business 73,709 64,744 52,251 Vive 1,385 1,432 1,273 Total Depreciation and Amortization $ 105,061 $ 94,150 $ 82,572 Depreciation of Lease Merchandise: Progressive Leasing $ 1,445,027 $ 1,219,035 $ 949,167 Aaron’s Business 527,331 508,869 499,464 Vive — — — Total Depreciation of Lease Merchandise $ 1,972,358 $ 1,727,904 $ 1,448,631 Interest Expense (Income): Progressive Leasing $ 8,572 $ 16,288 $ 18,577 Aaron’s Business 4,868 (2,944 ) (2,366 ) Vive 3,527 3,096 4,327 Total Interest Expense $ 16,967 $ 16,440 $ 20,538 Capital Expenditures: Progressive Leasing $ 12,608 $ 10,711 $ 8,213 Aaron’s Business 79,931 67,099 48,335 Vive 424 1,035 1,425 Total Capital Expenditures $ 92,963 $ 78,845 $ 57,973 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. In 2019, the results of the Company's operating segments were impacted by the following items: • Aaron's Business earnings before income taxes were impacted by $40.0 million of restructuring charges which were primarily to record closed store operating lease right-of-use asset impairment and operating lease charges, the impairment of vacant store properties, including the closure of one of our store support buildings, workforce reductions, and other impairment charges related to the Company's strategic decision to close Company-operated stores as discussed in Note 11 to these consolidated financial statements. • Aaron's Business earnings before income taxes were impacted by gains of $7.4 million from the sale of various real estate properties which were classified within other operating income in the consolidated statements of earnings. • Aaron's Business earnings before income taxes were impacted by gains on insurance recoveries of $4.5 million related to payments received from and final settlements reached with insurance carriers for Hurricanes Harvey and Irma property and business interruption claims in excess of related property insurance receivables. Such gains were classified within other operating income in the consolidated statements of earnings. • Progressive earnings before taxes were impacted by $179.3 million in regulatory charges and legal expenses incurred related to Progressive Leasing's tentative settlement of the FTC matter discussed in Note 10 to these consolidated financial statements. 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 . • Vive's loss before income taxes includes a gain of $0.8 million related to the sale of Vive'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 11 to these consolidated financial statements. For the year ended December 31, 2019 and all prior reporting periods, the Company determined 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 Vive 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 Vive 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, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Aaron Ventures I, LLC, which we refer to as "Aaron Ventures," was formed in December 2002 for the purpose of acquiring properties from the Company and leasing them back to the Company and is controlled by certain of the Company’s current and former executives. Aaron Ventures purchased a combined total of 21 properties from the Company in 2002 and 2004, and leased the properties back to the Company. As of December 31, 2019 , the Company had no remaining finance or operating leases with Aaron Ventures. The Company paid annual rent for the various properties leased from Aaron's Ventures of $0.2 million , $1.2 million , and $2.0 million |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Revenues 2 $ 1,012,103 $ 968,141 $ 963,808 $ 1,003,604 Gross Profit 1 399,978 381,965 358,667 381,491 Earnings (Loss) Before Income Taxes 70,308 56,819 51,665 (86,004 ) Net Earnings (Loss) 56,078 42,650 39,801 (107,057 ) Earnings (Loss) Per Share 0.83 0.63 0.59 (1.60 ) Earnings (Loss) Per Share Assuming Dilution 0.82 0.62 0.58 (1.60 ) Year Ended December 31, 2018 Revenues $ 954,809 $ 927,859 $ 953,071 $ 993,184 Gross Profit 1, 2, 3 351,241 345,557 341,074 376,497 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 1 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, bad debt expense, provision for write-offs of lease merchandise, provision for credit losses and certain other costs that are directly attributable to the derived revenue. 2 In accordance with the adoption of ASC 842, Progressive Leasing provision for returns and uncollectible renewal payments are recorded as a reduction to lease revenues and fees within the consolidated financial statements beginning January 1, 2019. Prior to January 1, 2019, Progressive Leasing provision for returns and uncollectible renewal payments were recorded as bad debt expense within operating expenses in the consolidated financial statements. Progressive Leasing bad debt expense included in the 2018 quarterly gross profits were $46.5 million , $50.0 million , $64.2 million and $67.0 million for the first, second, third and fourth quarter of 2018 , respectively. 3 Quarterly gross profit for the year ended December 31, 2018 has been adjusted to include Progressive Leasing bad debt expense and certain other costs that are directly attributable to the derived revenue. The comparability of the Company’s quarterly financial results during 2019 and 2018 was impacted by certain events, as described below on a pre-tax basis: • 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 2019 included net restructuring charges (reversals) of $13.3 million , $18.7 million , $5.5 million , and $2.5 million , respectively. 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 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. Restructuring activity during 2019 also included impairment charges for the planned exit from one of our support buildings along with a loss on the sale of six Canadian stores to a third party as discussed in Note 11 to these consolidated financial statements. • The third quarter of 2019 includes gains on insurance recoveries of $4.5 million related to payments received from and final settlements reached with insurance carriers for Hurricanes Harvey and Irma property and business interruption claims in excess of related property insurance receivables. Such gains were classified within other operating income in the consolidated statements of earnings. • The fourth quarter of 2019 included gains of $7.4 million from the sale of various real estate properties which were classified within other operating income in the consolidated statements of earnings. • The fourth quarter of 2019 included $179.3 million in regulatory charges and legal expenses incurred related to Progressive Leasing's tentative settlement of the FTC matter. |
Compensation Arrangements
Compensation Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
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 recorded as a deferred compensation liability, which is recorded in accounts payable and accrued expenses in the consolidated balance sheets. The deferred compensation plan liability was $11.2 million and $10.4 million as of December 31, 2019 and 2018 , respectively. Liabilities under the plan are recorded at amounts due to participants, based on the fair value of participants’ selected investments, which consist of equity and debt "mirror" funds. 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 Company has established a rabbi trust to fund obligations under the plan primarily with Company-owned life insurance policies. The value of the assets within the rabbi trust, which is primarily the cash surrender value of the Company-owned life insurance, was $14.4 million and $13.5 million as of December 31, 2019 and 2018 , respectively, and is included in prepaid expenses and other assets in the consolidated balance sheets. The Company recorded gains related primarily to changes in the cash surrender value of the Company-owned life insurance plans of $2.1 million and $1.5 million during the years ended December 31, 2019 and 2017 , respectively, and recorded losses of $1.2 million during the year ended December 31, 2018 , which were recorded within other non-operating income (expense), net in the consolidated statements of earnings. Benefits of $3.0 million , $2.7 million and $2.3 million were paid during the years ended December 31, 2019 , 2018 and 2017 , 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 annual match is not to exceed $11,000 for an individual employee and is subject to a three -year cliff vesting schedule. Deferred compensation expense charged to operations for the Company’s matching contributions was $0.4 million during the year ended December 31, 2019 and was not significant during the years ended December 31, 2018 and 2017 . 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 $7.4 million in 2019 , $6.9 million in 2018 and $5.7 million in 2017 . Employee Stock Purchase Plan |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , the Company’s operating and reportable segments are Progressive Leasing, Aaron’s Business and Vive. As part of a rebranding effort, Dent-A-Med, Inc. ("DAMI") merged into a newly created wholly-owned subsidiary of the Company, Vive Financial, LLC (“Vive”), and began operating under the Vive name effective January 1, 2020. We have updated all disclosures and references of Dent-A-Med, Inc. and/or DAMI in this Annual Report on Form 10-K to reflect the change to Vive. Progressive Leasing is a virtual lease-to-own company that provides lease-purchase solutions in 46 states and the District of Columbia, including e-commerce merchants. 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 cancellable 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) 2019 2018 2017 Progressive Leasing Invoice Volume 1 $ 1,747,902 $ 1,429,550 $ 1,160,732 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, home appliances, consumer electronics and accessories to consumers with a lease-to-own agreement with no credit needed through the Company’s Aaron’s-branded stores in the United States, Canada and Puerto Rico, as well as through its e-commerce platform. 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 bedding and a significant portion of the upholstered furniture leased and sold in Company-operated and franchised stores. |
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 | 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, appliances, electronics, jewelry and a variety of other products, to its customers for lease under certain terms agreed to by the customer. The Company’s Progressive Leasing segment offers customers of traditional and e-commerce retailers a virtual lease-purchase solution through leases with payment terms that can be renewed up to 12 months . The Company’s Aaron's-branded stores and its e-commerce platform offer leases flexible 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. The agreements are cancelable at any time by either party without penalty. Progressive Leasing lease revenues are earned prior to the lease payment due date and are recorded net of related sales taxes as earned. Payment due date terms include weekly, bi-weekly, and monthly frequencies. Revenue recorded prior to the payment due date results in unbilled receivables recognized in accounts receivable, net of allowances in the accompanying consolidated balance sheets. Beginning January 1, 2019, Progressive Leasing lease revenues are recorded net of a provision for returns and uncollectible renewal payments. 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. Aaron's Business lease revenues are recorded net of a provision for returns and uncollectible renewal payments. 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. Generally, the transfer of control occurs near or at the point of sale for retail sales. 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 franchisee realizes the benefits of having the right to access the Company's intellectual property. 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 10 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. |
Interest and Fees on Loans Receivable | Interest and Fees on Loans Receivable Vive 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 Vive may renew if the cardholder remains in good standing. Vive 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 Vive’s direct origination costs. The merchant fee discount and origination costs are presented net on the consolidated balance sheets in loans receivable. Cardholders generally have an initial 24 -month period that the card is active. The merchant fee discount, net of the origination costs, is amortized on a net basis and is recorded as interest and 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 (i.e., Vive) for deferred or reduced interest rates that are offered to the cardholder for a specified period on the outstanding loan balance (generally for six , 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 presented net on the consolidated balance sheets in loans receivable. The customer is typically required to make monthly minimum payments of at least 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 29% to 35.99% , are compounded daily for cards that do not qualify for deferred or reduced interest promotional periods. Interest income, which is recognized based upon the amount of the loans outstanding, is recognized as interest and fees on loans receivable when earned if collectibility is reasonably assured. For credit cards that provide deferred interest, if the balance is not paid off during the promotional period or if the cardholder defaults, interest is billed to the customers at standard rates and the cumulative amount owed is charged to the cardholder account in the month that the promotional period expires. For credit cards that provide reduced interest, if the balance is not paid off during the promotional period, interest is billed to the cardholder at standard rates in the month that the promotional period expires or when the cardholder 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 if collectibility is reasonably assured. Annual fees are charged to cardholders at the commencement of the loan and on each subsequent anniversary date. Annual fees are deferred and recognized into revenue on a straight-line basis over a one-year period. Under the provisions of the credit card agreements, 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, appliances, electronics, jewelry and a variety of other products 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 to a 0% salvage value generally over 12 months . The Company's Aaron's Business segment begins depreciating merchandise at the earlier of 12 months and one day or when the item is leased. Aaron's Business depreciates 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) 2019 2018 Merchandise on Lease, net of Accumulated Depreciation and Allowances $ 1,156,798 $ 1,053,684 Merchandise Not on Lease, net of Accumulated Depreciation and Allowances 276,619 264,786 Lease Merchandise, net of Accumulated Depreciation and Allowances $ 1,433,417 $ 1,318,470 The Company’s policies require weekly merchandise counts at its Aaron's Business 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 merchandise levels and mix by division, store, and fulfillment center, as well as the average age of merchandise on hand. If obsolete merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off. Generally, all merchandise not on lease is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off. The Company records a provision for write-offs on the allowance method, which primarily relates to its Progressive Leasing operations and, to a lesser extent, its Aaron's Business operations. The allowance for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based on historical write-off experience. 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 incurred shipping and handling costs of $74.3 million , $75.2 million and $67.3 million for the years ended December 31, 2019 , 2018 and 2017 |
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 $44.0 million , $37.7 million and $34.0 million for the years ended December 31, 2019 , 2018 and 2017 |
Stock-Based Compensation | Stock-Based Compensation |
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 |
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 |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and Company-operated Aaron's stores, corporate receivables incurred during the normal course of business (primarily for vendor consideration and real estate leasing activities) and franchisee obligations. Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2019 2018 Customers $ 76,819 $ 60,879 Corporate 14,109 18,171 Franchisee 13,231 19,109 $ 104,159 $ 98,159 The Company maintains an accounts receivable allowance, which primarily relates to its Progressive Leasing operations and, to a lesser extent, its Aaron's Business operations. The Company’s policy for its Progressive Leasing segment is to record an allowance for returns and uncollectible renewal payments based on historical collection experience. During 2019, the Company adopted ASC 842, which resulted in the Progressive Leasing provision for returns and uncollectible renewal payments being recorded as a reduction of lease revenue and fees within the consolidated statements of earnings beginning January 1, 2019. The provision for returns and uncollectible renewal payments for periods prior to 2019 are reported herein as bad debt expense within operating expenses in the consolidated statements of earnings. The Progressive Leasing segment writes off lease receivables that are 120 days or more contractually past due. The Aaron's Business policy is to record 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 within the consolidated statements of earnings. Aaron's Business writes off lease receivables that are 60 days or more past due on pre-determined dates twice monthly. |
Loans Receivable | Loans Receivable Gross loans receivable represents the principal balances of credit card charges at Vive’s participating merchants that remain due from cardholders, plus unpaid interest and fees due from cardholders. The 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 Vive 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 was 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. As of December 31, 2019, the Acquired Loans balance was zero. 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 rates are an indicator of credit risk within the loans receivable portfolio, including the migration of loans between delinquency categories over time. Charge-off rates represent another indicator of the potential for future credit losses. The risk in the loans receivable portfolio is correlated with broad economic trends, such as 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 includes 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 no later than the end of the following month after the billing cycle in which the loans receivable become 120 days past due. |
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. Certain costs incurred during the application development stage of an internal-use software project 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. All costs incurred during preliminary project and post-implementation project stages are expensed appropriately. 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 $69.5 million , $61.2 million and $54.8 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Amortization of previously capitalized internal use software development costs, which is a component of depreciation expense for property, plant and equipment, was $18.6 million , $14.1 million and $11.5 million during the years ended December 31, 2019 , 2018 and 2017 , 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, 2019 and 2018 . 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, 2019 and 2018 was $10.1 million and $6.6 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 charges of $1.2 million and $0.9 million within restructuring expenses, net during the years ended December 31, 2019 and 2017 , with insignificant charges recorded during 2018 . These charges related to the impairment of store properties that the Company decided to close under its restructuring programs as described in Note 11. The Company also recorded impairment charges on assets held for sale not part of a restructuring program of $0.2 million and $0.7 million during the years ended December 31, 2018 , and 2017 , respectively, in other operating income, net within the consolidated statements of earnings. These charges related to the impairment of various parcels of land and buildings that were not part of a restructuring program and that the Company decided not to utilize for future expansion. Impairment charges on assets held for sale recorded in other operating income, net were not significant in 2019 . The Company also recognized net gains of $1.7 million and $0.8 million during the years ended December 31, 2019 and 2018 related to the 2019 sale of four former Company-operated store properties for a total selling price of $2.6 million and the 2018 sale of the former headquarters building of its Vive segment for a selling price of $2.2 million . The respective sales proceeds 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, net in the consolidated statements of earnings. The Company recognized net gains of $0.4 million during the year ended December 31, 2018 related to the disposal of certain land and buildings that the Company closed under the 2016 and 2017 restructuring plans as described in Note 11 to these consolidated financial statements. These gains were recorded as a reduction to restructuring expenses within the consolidated statements of earnings. Gains and losses on the disposal of assets held for sale were not significant in 2017 . |
Goodwill | Goodwill |
Other Intangibles | Other Intangibles Other intangibles include customer relationships, non-compete agreements, reacquired franchise rights, customer lease contracts and expanded customer base intangible assets acquired in connection with store-based business acquisitions, asset acquisitions of customer contracts, and franchisee acquisitions. 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 Vive 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 Vive 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, 2019 and determined that no impairment had occurred. |
Insurance Reserves | Insurance Reserves |
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 as of December 31, 2019 and 2018 . 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 a liability related to its non-qualified deferred compensation plan, which represents benefits accrued for plan participants and is valued at the quoted market prices of the participants’ investment elections, at fair value on a recurring basis. 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 of loans receivable 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, which was fully impaired during 2018, 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 net gains and losses are recorded as a component of other non-operating income (expense), net |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Leases . In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases ("ASC 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. Companies must use a modified retrospective approach to adopt ASC 842; however, the Company adopted an optional transition method in which entities are permitted to not apply the requirements of ASC 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 application of this optional transition method resulted in a cumulative-effect adjustment of $2.6 million representing an increase to the Company’s January 1, 2019 retained earnings balance, net of tax, due primarily to the recognition of deferred gains recorded under previous sale and operating leaseback transactions. The ASC 842 transition guidance requires companies to recognize any deferred gains not resulting from off-market terms as a cumulative adjustment to retained earnings upon adoption of ASC 842. As a lessor, a majority of the Company’s revenue generating activities are within the scope of ASC 842. The new standard did not materially impact the timing of revenue recognition. Effective January 1, 2019, ASC 842 resulted in the Company classifying the Progressive Leasing provision for returns and uncollectible renewal payments as a reduction of lease revenue and fees within the consolidated statements of earnings. For periods reported herein prior to January 1, 2019, the Progressive Leasing provision for returns and uncollectible renewal payments was recorded as bad debt expense within operating expenses in the consolidated statements of earnings. The Aaron’s Business provision for returns and uncollectible renewal payments has historically been, and continues to be recorded as, a reduction to lease revenue and fees. The Company has customer lease agreements with lease and non-lease components that fall within the scope of ASU 2014-09, Revenue from Contracts with Customers ("ASC 606"). The Company has elected to aggregate these components into a single component for all classes of underlying assets as the lease and non-lease components generally have the same timing and pattern of transfer. The new standard also impacts the Company as a lessee by requiring substantially all of its operating leases to be recognized on the balance sheet as operating lease right-of-use assets and operating lease liabilities. See Note 7 to these consolidated financial statements for further details regarding the Company’s leasing activities as a lessee. The Company elected to adopt a package of practical expedients offered by the FASB which removes the requirement to reassess whether expired or existing contracts contain leases and removes the requirement to reassess the lease classification for any existing leases prior to the adoption date of January 1, 2019. Additionally, the Company has elected the practical expedient to include both lease and non-lease components as a single component and account for it as a lease. 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. As a result, certain implementation costs which were previously expensed by the Company are now eligible for capitalization under ASU 2018-15. 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 elected to early adopt ASU 2018-15 on a prospective basis effective January 1, 2019, and the impact to the consolidated financial statements was not significant. Costs eligible for capitalization will be capitalized within prepaid expenses and other assets and expensed through operating expenses in the consolidated balance sheets and statements of earnings, respectively. Pending Adoption 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 standard. The Company will be impacted by ASU 2016-13 within its Vive segment by requiring earlier recognition of estimated credit losses in the consolidated statements of earnings. Vive 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 standard 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 to interest income, and as interest income is accrued and earned on the outstanding loan. Although the CECL standard will result in earlier recognition of credit losses in the statements of earnings, no changes are expected related to the loan cash flows. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedules of Company Operated Store Activity | The following table presents invoice volume for Progressive Leasing: For the Year Ended December 31 (Unaudited and In Thousands) 2019 2018 2017 Progressive Leasing Invoice Volume 1 $ 1,747,902 $ 1,429,550 $ 1,160,732 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 following table presents store count by ownership type for the Aaron’s Business operations: Stores at December 31 (Unaudited) 2019 2018 2017 Company-operated Aaron's branded Stores 1,167 1,312 1,175 Franchised Stores 335 377 551 Systemwide Stores 1,502 1,689 1,726 |
Schedule of Lease Merchandise | The following is a summary of lease merchandise, net of accumulated depreciation and allowances: December 31, (In Thousands) 2019 2018 Merchandise on Lease, net of Accumulated Depreciation and Allowances $ 1,156,798 $ 1,053,684 Merchandise Not on Lease, net of Accumulated Depreciation and Allowances 276,619 264,786 Lease Merchandise, net of Accumulated Depreciation and Allowances $ 1,433,417 $ 1,318,470 |
Allowance for Lease Merchandise | The following table shows the components of the allowance for lease merchandise write-offs, which is included within lease merchandise, net within the consolidated balance sheets: Year ended December 31, (In Thousands) 2019 2018 2017 Beginning Balance $ 46,694 $ 35,629 $ 33,399 Merchandise Written off, net of Recoveries (236,928 ) (181,252 ) (143,230 ) Provision for Write-offs 251,419 192,317 145,460 Ending Balance $ 61,185 $ 46,694 $ 35,629 |
Calculation of Dilutive Stock Awards | The following table shows the calculation of dilutive share-based awards: Year Ended December 31, (Shares In Thousands) 2019 2018 2017 Weighted Average Shares Outstanding 67,322 69,128 70,837 Dilutive Effect of Share-Based Awards 1,309 1,469 1,284 Weighted Average Shares Outstanding Assuming Dilution 68,631 70,597 72,121 |
Accounts Receivable Net of Allowances | Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2019 2018 Customers $ 76,819 $ 60,879 Corporate 14,109 18,171 Franchisee 13,231 19,109 $ 104,159 $ 98,159 The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2019 2018 Credit Card Loans 1 $ 96,387 $ 90,406 Acquired Loans 2 — 5,688 Loans Receivable, Gross 96,387 96,094 Allowance for Loan Losses (14,911 ) (12,970 ) Unamortized Fees (6,223 ) (6,971 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 75,253 $ 76,153 1 "Credit Card Loans" are loans originated after the 2015 acquisition of Vive. 2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of Vive. |
Allowance for Doubtful Accounts | The following table shows the components of the accounts receivable allowance: Year Ended December 31, (In Thousands) 2019 2018 2017 Beginning Balance $ 62,704 $ 46,946 $ 35,690 Accounts Written Off, net of Recoveries (309,374 ) (252,330 ) (192,133 ) Accounts Receivable Provision 322,963 268,088 203,389 Ending Balance $ 76,293 $ 62,704 $ 46,946 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) 2019 2018 2017 Bad Debt Expense 1 $ 1,337 $ 227,960 $ 170,574 Provision for Returns and Uncollected Renewal Payments 2 321,626 40,128 32,815 Accounts Receivable Provision $ 322,963 $ 268,088 $ 203,389 1 Bad debt expense is recorded within operating expenses in the consolidated financial statements. 2 In accordance with the adoption of ASC 842, Progressive Leasing provision for returns and uncollectible renewal payments are recorded as a reduction to lease revenues and fees within the consolidated financial statements beginning January 1, 2019. Prior to January 1, 2019, Progressive Leasing provision for returns and uncollectible renewal payments were recorded as bad debt expense within operating expenses in the consolidated financial statements. |
Loan Portfolio Credit Quality Indicators | Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2019 and 2018 by Fair Isaac and Company (FICO) score as determined at the time of loan origination: December 31, FICO Score Category 2019 2018 600 or Less 6.7 % 3.7 % Between 600 and 700 80.1 % 77.9 % 700 or Greater 13.2 % 18.4 % |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following: December 31, (In Thousands) 2019 2018 Prepaid Expenses $ 45,034 $ 30,763 Prepaid Insurance 26,393 27,948 Assets Held for Sale 10,131 6,589 Deferred Tax Asset 826 8,761 Other Assets 31,887 24,161 $ 114,271 $ 98,222 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: December 31, (In Thousands) 2019 2018 Accounts Payable 89,959 88,369 Accrued Insurance Costs 44,032 40,423 Accrued Salaries and Benefits 43,972 40,790 Accrued Real Estate and Sales Taxes 32,763 30,332 Deferred Rent 1 — 27,270 Other Accrued Expenses and Liabilities 1 62,090 65,969 $ 272,816 $ 293,153 1 Amounts as of December 31, 2019 were impacted by the January 1, 2019 adoption of ASC 842. Upon transition to ASC 842, the remaining balances of the Company's deferred rent, lease incentives, and closed store reserve were reclassified as a reduction to the operating lease right-of-use asset in the accompanying consolidated balance sheet. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents summaries of the fair value of the assets acquired and liabilities assumed in the franchisee acquisitions as of the respective acquisition dates: (in Thousands) Final Amounts Recognized as of Acquisition Dates Purchase Price $ 190,167 Add: Settlement of Accounts Receivable from Pre-existing Relationship 5,405 Add: Working Capital Adjustments 155 Aggregate Consideration Transferred 195,727 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 50 Lease Merchandise 59,616 Property, Plant and Equipment 5,568 Operating Lease Right-of-Use Assets 1 4,338 Other Intangibles 2 23,322 Prepaid Expenses and Other Assets 1,241 Total Identifiable Assets Acquired 94,135 Accounts Payable and Accrued Expenses (977 ) Customer Deposits and Advance Payments (5,156 ) Total Liabilities Assumed (6,133 ) Goodwill 3 107,725 Net Assets Acquired (excluding Goodwill) $ 88,002 1 As of the respective acquisition dates, the Company had not yet adopted ASC 842. As such, there were no operating lease right-of-use assets or operating lease liabilities recognized within the consolidated financial statements at the time of acquisition. The Company recognized operating lease right-of-use assets and operating lease liabilities for the acquired stores as part of the transition to ASC 842 on January 1, 2019. The Company finalized its valuation of assumed favorable and unfavorable real estate operating leases during 2019, which also impacted the valuation of the Company's customer lease contract and customer relationship intangible assets. As a result, measurement period adjustments of $4.3 million were recorded within operating lease right-of-use assets as net favorable, with a corresponding reduction of $1.2 million within other intangibles, net in our consolidated balance sheet. The adjustment also resulted in the recognition of immaterial adjustments to operating expenses and restructuring expenses, net during 2019 to recognize expense that would have been recorded in prior periods had the favorable lease and intangible assets been recorded as of the acquisition date. 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 the acquired geographic markets. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. (In Thousands) Final Amounts Recognized as of Acquisition Date Purchase Price $ 140,000 Add: Settlement of Accounts Receivable from Pre-existing Relationship 3,452 Less: Reimbursement for Insurance Costs (100 ) Add: Working Capital Adjustments 188 Consideration Transferred 143,540 Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Cash and Cash Equivalents 34 Accounts Receivable 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 (excluding Goodwill) $ 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. |
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 Useful 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 1 3,526 11.3 Total Acquired Intangible Assets 2 $ 13,779 1 Upon the adoption of ASC 842 on January 1, 2019, the Company reclassified the remaining favorable operating lease asset from other intangibles, net to operating lease right-of-use assets within its consolidated balance sheets. 2 Acquired definite-lived intangible assets have a total weighted average life of 5.1 years. The 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 7,457 1.0 Customer Relationships 9,330 3.0 Reacquired Franchise Rights 4,663 3.9 Total Acquired Intangible Assets 1 $ 23,322 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, 2019 | |
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) 2019 2018 Trade Name $ 53,000 $ 53,000 Goodwill 736,582 733,170 Indefinite-lived Intangible Assets $ 789,582 $ 786,170 |
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, 2018 $ 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 Acquisitions — 6,526 6,526 Disposals, Currency Translation and Other Adjustments — (362 ) (362 ) Acquisition Accounting Adjustments — (2,752 ) (2,752 ) Balance at December 31, 2019 $ 288,801 $ 447,781 $ 736,582 |
Summary of Identifiable Intangible Assets | The following table summarizes information related to definite-lived intangible assets at December 31 : 2019 2018 (In Thousands) Gross Accumulated Net Gross Accumulated Net Acquired Internal-Use Software 14,000 (14,000 ) — 14,000 (14,000 ) — Technology 68,550 (39,859 ) 28,691 68,550 (32,749 ) 35,801 Merchant Relationships 181,000 (86,184 ) 94,816 181,000 (71,101 ) 109,899 Other Intangibles 1 26,178 (11,889 ) 14,289 42,165 (12,265 ) 29,900 Total $ 289,728 $ (151,932 ) $ 137,796 $ 305,715 $ (130,115 ) $ 175,600 1 Other intangibles include customer relationships, non-compete agreements, reacquired franchise rights, customer lease contracts and the expanded customer base intangible asset. |
Estimated Future Amortization Expense | As of December 31, 2019 , estimated future amortization expense for the next five years related to definite-lived intangible assets is as follows: (In Thousands) 2020 $ 28,722 2021 26,038 2022 23,111 2023 22,527 2024 17,440 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ — $ (11,201 ) $ — $ — $ (10,389 ) $ — |
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, 2019 December 31, 2018 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Held for Sale $ — $ 10,131 $ — $ — $ 6,589 $ — |
Fair Value of Assets (Liabilities) Not Measured at Fair Value In Consolidated Balance Sheets | The following table summarizes the fair value of liabilities that are not measured at fair value in the consolidated balance sheets, but for which the fair value is disclosed: December 31, 2019 December 31, 2018 (In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Fixed-Rate Long Term Debt 1 $ — $ (123,705 ) $ — $ — $ (183,765 ) $ — 1 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 $120.0 million and $180.0 million at December 31, 2019 and 2018 , respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 Land $ 16,427 $ 19,950 Buildings and Improvements 54,923 67,081 Leasehold Improvements and Signs 87,126 83,867 Fixtures and Equipment 244,623 210,747 Software - Internal-Use 135,076 106,671 Assets Under Finance Leases: with Related Parties — 872 with Unrelated Parties 3,189 9,487 Construction in Progress 7,554 15,104 548,918 513,779 Less: Accumulated Depreciation and Amortization 1 (311,252 ) (284,287 ) $ 237,666 $ 229,492 1 Accumulated amortization of internal-use software development costs amounted to $75.2 million and $56.9 million as of December 31, 2019 and 2018 , respectively. |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of the Components of Loans Receivable, Net | Accounts receivable, net of allowances, consist of the following: December 31, (In Thousands) 2019 2018 Customers $ 76,819 $ 60,879 Corporate 14,109 18,171 Franchisee 13,231 19,109 $ 104,159 $ 98,159 The following is a summary of the Company’s loans receivable, net: December 31, (In Thousands) 2019 2018 Credit Card Loans 1 $ 96,387 $ 90,406 Acquired Loans 2 — 5,688 Loans Receivable, Gross 96,387 96,094 Allowance for Loan Losses (14,911 ) (12,970 ) Unamortized Fees (6,223 ) (6,971 ) Loans Receivable, Net of Allowances and Unamortized Fees $ 75,253 $ 76,153 1 "Credit Card Loans" are loans originated after the 2015 acquisition of Vive. 2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of Vive. |
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 2019 2018 30-59 Days Past Due 6.9 % 6.9 % 60-89 Days Past Due 3.6 % 3.4 % 90 or more Days Past Due 5.0 % 4.3 % Past Due Loans Receivable 15.5 % 14.6 % Current Loans Receivable 84.5 % 85.4 % Balance of Loans Receivable on Nonaccrual Status $ 2,284 $ 2,110 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: Year ended December 31, (In Thousands) 2019 2018 Beginning Balance $ 12,970 $ 11,454 Provision for Loan Losses 21,667 21,063 Charge-offs (22,204 ) (21,190 ) Recoveries 2,478 1,643 Ending Balance $ 14,911 $ 12,970 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | The Company’s total lease expense is comprised of the following: Year Ended December 31, (In Thousands) 2019 Finance Lease cost: Amortization of Right-of-Use Assets $ 1,542 Interest on Lease Liabilities 363 Total Finance Lease cost: 1,905 Operating Lease cost: Operating Lease cost classified within Operating Expenses 1 112,092 Operating Lease cost classified within Restructuring Expenses, Net 3,339 Sublease Receipts 2 (3,044 ) Total Operating Lease cost: 112,387 Total Lease cost $ 114,292 1 Includes short-term and variable lease costs, which are not significant. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. 2 The Company has anticipated future sublease receipts from executed sublease agreements of $2.7 million in 2020 , $2.4 million in 2021 , $1.5 million in 2022 , $1.0 million in 2023 , $0.5 million in 2024 and $0.3 million thereafter through 2025. |
Supplemental Cash Flow Information | Additional information regarding the Company’s leasing activities as a lessee is as follows: Year Ended December 31, (In Thousands) 2019 Cash Paid for amounts included in measurement of Lease Liabilities: Operating Cash Flows for Finance Leases $ 411 Operating Cash Flows for Operating Leases 126,361 Financing Cash Flows for Finance Leases 2,493 Total Cash paid for amounts included in measurement of Lease Liabilities 129,265 Right-of-Use Assets obtained in exchange for new Finance Lease Liabilities — Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities $ 53,883 |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to leases is as follows: (In Thousands) Balance Sheet Classification December 31, 2019 Assets Operating Lease Assets Operating Lease Right-of-Use Assets $ 329,211 Finance Lease Assets Property, Plant and Equipment, Net 768 Total Lease Assets $ 329,979 Liabilities Operating Lease Liabilities Operating Lease Liabilities $ 369,386 Finance Lease Liabilities Debt 2,670 Total Lease Liabilities $ 372,056 |
Schedule of Weighted-Average Discount Rate and Weighted-Average Remaining Lease Term | Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company’s finance and operating leases: Weighted Average Discount Rate 1 Weighted Average Remaining Lease Term (in years) Finance Leases 5.7 % 1.5 Operating Leases 3.6 % 4.9 1 Upon adoption of ASC 842, discount rates for existing operating leases were established as of January 1, 2019. |
Finance Lease, Liability, Maturity | The table also includes a reconciliation of the future undiscounted cash flows to the present value of the finance and operating lease liabilities included in the consolidated balance sheets. (In Thousands) Operating Leases Finance Leases Total 2020 $ 108,089 $ 2,006 $ 110,095 2021 91,376 801 92,177 2022 70,208 80 70,288 2023 48,773 — 48,773 2024 32,345 — 32,345 Thereafter 53,439 — 53,439 Total Undiscounted Cash Flows 404,230 2,887 407,117 Less: Interest 34,844 217 35,061 Present Value of Lease Liabilities $ 369,386 $ 2,670 $ 372,056 |
Operating Lease, Liability, Maturity | The table also includes a reconciliation of the future undiscounted cash flows to the present value of the finance and operating lease liabilities included in the consolidated balance sheets. (In Thousands) Operating Leases Finance Leases Total 2020 $ 108,089 $ 2,006 $ 110,095 2021 91,376 801 92,177 2022 70,208 80 70,288 2023 48,773 — 48,773 2024 32,345 — 32,345 Thereafter 53,439 — 53,439 Total Undiscounted Cash Flows 404,230 2,887 407,117 Less: Interest 34,844 217 35,061 Present Value of Lease Liabilities $ 369,386 $ 2,670 $ 372,056 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 Revolving Facility $ — $ 16,000 Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 119,847 179,750 Term Loan, Due in Installments through September 2022 218,513 223,837 Finance Lease Obligation: with Related Parties — 123 with Unrelated Parties 2,670 5,042 Total Debt 1 341,030 424,752 Less: Current Maturities 83,886 83,778 Long-Term Debt $ 257,144 $ 340,974 1 Total debt as of December 31, 2019 and 2018 includes unamortized debt issuance costs of $1.0 million and $1.4 million , respectively. The Company also recorded $1.9 million and $2.6 million of debt issuance costs as of December 31, 2019 and 2018 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 finance lease obligations as of December 31, 2019 are as follows: (In Thousands) 2020 $ 84,321 2021 83,271 2022 174,453 2023 — 2024 — Thereafter — Total $ 342,045 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 2017 Current Income Tax Expense: Federal $ 2,033 $ (5,380 ) $ (3,530 ) State 9,316 13,015 9,772 11,349 7,635 6,242 Deferred Income Tax Expense (Benefit): Federal 49,911 48,287 (60,547 ) State 56 72 1,346 49,967 48,359 (59,201 ) Income Tax Expense (Benefit) $ 61,316 $ 55,994 $ (52,959 ) |
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) 2019 2018 Deferred Tax Liabilities: Lease Merchandise and Property, Plant and Equipment $ 176,017 $ 174,171 Goodwill and Other Intangibles 44,435 41,183 Investment in Partnership 191,114 159,070 Operating Lease Right-of-Use Assets 75,146 — Other, Net 2,019 1,804 Total Deferred Tax Liabilities 488,731 376,228 Deferred Tax Assets: Accrued Liabilities 20,221 21,918 Advance Payments 9,575 9,232 Operating Lease Liabilities 83,154 — Other, Net 66,212 86,339 Total Deferred Tax Assets 179,162 117,489 Less Valuation Allowance — — Net Deferred Tax Liabilities $ 309,569 $ 258,739 |
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, 2019 2018 2017 Statutory Rate 21.0 % 21.0 % 35.0 % Increases (Decreases) in United States Federal Taxes Resulting From: State Income Taxes, net of Federal Income Tax Benefit 9.8 4.0 2.7 Permanent difference for loss on Progressive FTC matter 39.6 — — Other Permanent Differences (2.5 ) (1.2 ) — Federal Tax Credits (2.3 ) (0.5 ) (0.8 ) Change in Valuation Allowance — — (0.4 ) Remeasurement of net Deferred Tax Liabilities (1.8 ) (0.2 ) (58.2 ) Other, net 2.3 (0.9 ) (0.4 ) Effective Tax Rate 66.1 % 22.2 % (22.1 )% |
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) 2019 2018 2017 Balance at January 1, $ 2,529 $ 2,269 $ 2,594 Additions Based on Tax Positions Related to the Current Year 236 269 456 Additions for Tax Positions of Prior Years 1,957 615 232 Prior Year Reductions (76 ) (85 ) (236 ) Statute Expirations (306 ) (257 ) (346 ) Settlements — (282 ) (431 ) Balance at December 31, $ 4,340 $ 2,529 $ 2,269 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 : (In Thousands) Contractual Lease Obligations Severance Total Balance at January 1, 2018 $ 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 ASC 842 Transition Adjustment 1 (8,472 ) — (8,472 ) Adjusted Balance at January 1, 2019 — 651 651 Restructuring Charges — 3,403 3,403 Payments — (3,298 ) (3,298 ) Balance at December 31, 2019 $ — $ 756 $ 756 1 Upon the adoption of ASC 842 on January 1, 2019, the Company reclassified the remaining liability for contractual lease obligations from accounts payable and accrued expenses to a reduction to operating lease right-of-use assets within its consolidated balance sheets. The following table summarizes restructuring charges by segment: Years Ended December 31, 2019 2018 2017 (In Thousands) Aaron’s Business Aaron’s Business Aaron’s Business Vive Total Right-of-Use Asset Impairment and Operating Lease Charges $ 28,411 $ 2,057 $ 13,432 $ — $ 13,432 Fixed Asset Impairment 5,238 — 1,386 — 1,386 Severance 3,403 601 2,705 471 3,176 Other Expenses (Reversals) 1,886 (1,176 ) — — — Loss (Gain) on Sale of Store Properties 1,052 (377 ) — — — Total Restructuring Expenses $ 39,990 $ 1,105 $ 17,523 $ 471 $ 17,994 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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: 2019 2018 2017 Dividend Yield 0.3 % 0.3 % 0.4 % Expected Volatility 36.5 % 34.8 % 32.8 % Risk-free Interest Rate 2.5 % 2.6 % 1.9 % Expected Term (in years) 5.3 5.3 5.3 Weighted-average Fair Value of Stock Options Granted $ 19.59 $ 16.54 $ 8.55 |
Summary Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2019 : 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 11,250 0.15 $ 19.92 11,250 $ 19.92 20.01-30.00 1,006,783 6.23 25.51 851,403 25.21 30.01-40.00 97,301 5.01 32.16 97,301 32.16 40.01-50.00 330,890 8.04 47.26 103,430 47.26 50.01-54.18 283,590 9.02 54.18 — — 19.92-54.18 1,729,814 6.93 34.71 1,063,384 27.93 |
Summary of Stock Option Activity | The table below summarizes option activity for the year ended December 31, 2019 : 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, 2019 1,677 $ 30.42 Granted 293 54.18 Exercised (217 ) 26.76 Forfeited/expired (23 ) 44.69 Outstanding at December 31, 2019 1,730 34.71 6.93 $ 38,754 $ 11.67 Expected to Vest 654 45.36 8.29 7,687 15.91 Exercisable at December 31, 2019 1,063 27.93 6.10 31,028 8.97 |
Summary of Restricted Stock Activity | The following table summarizes information about restricted stock activity during 2019 : Restricted Stock (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2019 589 $ 34.18 Granted 225 54.28 Vested (280 ) 30.96 Forfeited/unearned (40 ) 44.45 Non-vested at December 31, 2019 494 44.33 |
Summary of Performance Share Units | The following table summarizes information about performance share unit activity during 2019 : Performance Share Units (In Thousands) Weighted Average Fair Value Non-vested at January 1, 2019 799 $ 33.11 Granted 248 54.27 Vested (425 ) 29.89 Forfeited/unearned (40 ) 41.27 Non-vested at December 31, 2019 582 43.93 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations | The following table presents revenue by source and by segment for the year ended December 31, 2019 : Year Ended December 31, 2019 (In Thousands) Progressive Leasing Aaron's Business 4 Vive Total Lease Revenues and Fees 1 $ 2,128,133 $ 1,570,358 $ — $ 3,698,491 Retail Sales 2 — 38,474 — 38,474 Non-Retail Sales 2 — 140,950 — 140,950 Franchise Royalties and Fees 2 — 33,432 — 33,432 Interest and Fees on Loans Receivable 3 — — 35,046 35,046 Other — 1,263 — 1,263 Total $ 2,128,133 $ 1,784,477 $ 35,046 $ 3,947,656 1 Substantially all lease revenues and fees are within the scope of ASC 842, Leases . The Company had $27.4 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, $25.5 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 $24.7 million , which are primarily Lease Revenues and Fees. 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 Vive 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 revenue is 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 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 $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 Vive 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 605, 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. Year Ended December 31, (In Thousands) 2019 2018 2017 Earnings (Loss) Before Income Tax (Benefit) Expense: Progressive Leasing $ 55,711 $ 175,015 $ 140,224 Aaron’s Business 46,731 84,683 110,642 Vive (9,654 ) (7,494 ) (11,289 ) Total Earnings Before Income Tax (Benefit) Expense $ 92,788 $ 252,204 $ 239,577 Corporate-related assets that benefit multiple segments are reported as other assets in the table below. December 31, (In Thousands) 2019 2018 Assets: Progressive Leasing $ 1,261,786 $ 1,088,227 Aaron’s Business 1 1,740,281 1,483,102 Vive 85,825 95,341 Other 209,908 160,022 Total Assets 2 $ 3,297,800 $ 2,826,692 Assets From Canadian Operations (included in totals above): Aaron’s Business $ 28,152 $ 25,893 1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the consolidated balance sheets of $14.0 million and $15.2 million as of December 31, 2019 and 2018 , respectively. 2 In accordance with the adoption of ASC 842 the Company, as a lessee, is required to recognize substantially all of its operating leases on the balance sheet as operating lease right-of-use assets and operating lease liabilities. For periods prior to the year ended December 31, 2019 the Company's operating lease right of use assets and liabilities are not included on the Company's balance sheet. Year Ended December 31, (In Thousands) 2019 2018 2017 Depreciation and Amortization 1 : Progressive Leasing $ 29,967 $ 27,974 $ 29,048 Aaron’s Business 73,709 64,744 52,251 Vive 1,385 1,432 1,273 Total Depreciation and Amortization $ 105,061 $ 94,150 $ 82,572 Depreciation of Lease Merchandise: Progressive Leasing $ 1,445,027 $ 1,219,035 $ 949,167 Aaron’s Business 527,331 508,869 499,464 Vive — — — Total Depreciation of Lease Merchandise $ 1,972,358 $ 1,727,904 $ 1,448,631 Interest Expense (Income): Progressive Leasing $ 8,572 $ 16,288 $ 18,577 Aaron’s Business 4,868 (2,944 ) (2,366 ) Vive 3,527 3,096 4,327 Total Interest Expense $ 16,967 $ 16,440 $ 20,538 Capital Expenditures: Progressive Leasing $ 12,608 $ 10,711 $ 8,213 Aaron’s Business 79,931 67,099 48,335 Vive 424 1,035 1,425 Total Capital Expenditures $ 92,963 $ 78,845 $ 57,973 1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Revenues 2 $ 1,012,103 $ 968,141 $ 963,808 $ 1,003,604 Gross Profit 1 399,978 381,965 358,667 381,491 Earnings (Loss) Before Income Taxes 70,308 56,819 51,665 (86,004 ) Net Earnings (Loss) 56,078 42,650 39,801 (107,057 ) Earnings (Loss) Per Share 0.83 0.63 0.59 (1.60 ) Earnings (Loss) Per Share Assuming Dilution 0.82 0.62 0.58 (1.60 ) Year Ended December 31, 2018 Revenues $ 954,809 $ 927,859 $ 953,071 $ 993,184 Gross Profit 1, 2, 3 351,241 345,557 341,074 376,497 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 1 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, bad debt expense, provision for write-offs of lease merchandise, provision for credit losses and certain other costs that are directly attributable to the derived revenue. 2 In accordance with the adoption of ASC 842, Progressive Leasing provision for returns and uncollectible renewal payments are recorded as a reduction to lease revenues and fees within the consolidated financial statements beginning January 1, 2019. Prior to January 1, 2019, Progressive Leasing provision for returns and uncollectible renewal payments were recorded as bad debt expense within operating expenses in the consolidated financial statements. Progressive Leasing bad debt expense included in the 2018 quarterly gross profits were $46.5 million , $50.0 million , $64.2 million and $67.0 million for the first, second, third and fourth quarter of 2018 , respectively. 3 Quarterly gross profit for the year ended December 31, 2018 has been adjusted to include Progressive Leasing bad debt expense and certain other costs that are directly attributable to the derived revenue. |
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, 2019USD ($)store | Dec. 31, 2018USD ($)store | Dec. 31, 2017USD ($)store | |
Progressive Leasing | |||
Franchisor Disclosure [Line Items] | |||
Invoice Volume | $ | $ 1,747,902 | $ 1,429,550 | $ 1,160,732 |
Operating Segments | Company-operated Aaron's branded Stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 1,167 | 1,312 | 1,175 |
Operating Segments | Franchised Stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 335 | 377 | 551 |
Operating Segments | Systemwide Stores | |||
Franchisor Disclosure [Line Items] | |||
Company operated stores | 1,502 | 1,689 | 1,726 |
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, 2019 | |
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] | |
Merchant fee | 3.00% |
Financing receivable promotional fees percent | 1.00% |
Credit terms, interest rate, fixed and variable (percentage) | 29.00% |
Credit Card Loans | Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Merchant fee | 25.00% |
Financing receivable promotional fees percent | 8.00% |
Credit terms, interest rate, fixed and variable (percentage) | 35.99% |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Lease Merchandise (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | |||
Lease merchandise salvage value percentage | 0.00% | ||
Lease Merchandise, net of Accumulated Depreciation and Allowances | $ 1,433,417 | $ 1,318,470 | |
Allowance for Lease Merchandise Write offs: | |||
Beginning Balance | 46,694 | 35,629 | $ 33,399 |
Merchandise Written off, net of Recoveries | (236,928) | (181,252) | (143,230) |
Provision for Write-offs | 251,419 | 192,317 | 145,460 |
Ending Balance | $ 61,185 | 46,694 | $ 35,629 |
Agreement One | Progressive Leasing | |||
Significant Accounting Policies [Line Items] | |||
Lease agreement period | 12 months | ||
Merchandise on Lease, net of Accumulated Depreciation and Allowances | |||
Significant Accounting Policies [Line Items] | |||
Lease Merchandise, net of Accumulated Depreciation and Allowances | $ 1,156,798 | 1,053,684 | |
Merchandise on Lease, net of Accumulated Depreciation and Allowances | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Lease merchandise useful life | 12 months | ||
Merchandise on Lease, net of Accumulated Depreciation and Allowances | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Lease merchandise useful life | 24 months | ||
Merchandise Not on Lease, net of Accumulated Depreciation and Allowances | |||
Significant Accounting Policies [Line Items] | |||
Lease merchandise useful life | 36 months | ||
Lease Merchandise, net of Accumulated Depreciation and Allowances | $ 276,619 | $ 264,786 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Weighted Average Shares Outstanding | 67,322 | 69,128 | 70,837 |
Dilutive Effect of Share-Based Awards | 1,309 | 1,469 | 1,284 |
Weighted Average Shares Outstanding Assuming Dilution | 68,631 | 70,597 | 72,121 |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Accounts Receivable Net of Allowances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | $ 104,159 | $ 98,159 |
Customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | 76,819 | 60,879 |
Corporate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | 14,109 | 18,171 |
Franchisee | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | $ 13,231 | $ 19,109 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 62,704 | $ 46,946 | $ 35,690 |
Accounts Written Off, net of Recoveries | (309,374) | (252,330) | (192,133) |
Accounts Receivable Provision | 322,963 | 268,088 | 203,389 |
Ending Balance | $ 76,293 | $ 62,704 | $ 46,946 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Bad Debt Expense | $ 1,337 | $ 227,960 | $ 170,574 |
Provision for Returns and Uncollected Renewal Payments | 321,626 | 40,128 | 32,815 |
Accounts Receivable Provision | $ 322,963 | $ 268,088 | $ 203,389 |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Credit Quality Indicators (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
FICO Score, Less than 600 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 6.70% | 3.70% |
FICO Score, 600 to 699 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 80.10% | 77.90% |
FICO Score, Greater than 700 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage of loan portfolio per FICO score | 13.20% | 18.40% |
Business and Summary of Sign_12
Business and Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Prepaid Expenses | $ 45,034 | $ 30,763 |
Prepaid Insurance | 26,393 | 27,948 |
Assets Held for Sale | 10,131 | 6,589 |
Deferred Tax Asset | 826 | 8,761 |
Other Assets | 31,887 | 24,161 |
Prepaid Expense and Other Assets | $ 114,271 | $ 98,222 |
Business and Summary of Sign_13
Business and Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Accounts Payable | $ 89,959 | $ 88,369 |
Accrued Insurance Costs | 44,032 | 40,423 |
Accrued Salaries and Benefits | 43,972 | 40,790 |
Accrued Real Estate and Sales Taxes | 32,763 | 30,332 |
Deferred Rent | 0 | 27,270 |
Other Accrued Expenses and Liabilities | 62,090 | 65,969 |
Accounts Payable and Accrued Liabilities | $ 272,816 | $ 293,153 |
Business and Summary of Sign_14
Business and Summary of Significant Accounting Policies - Hurricane Impact (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Accounts receivable net and lease merchandise net additional reserves recorded | $ 3.6 | ||
Estimated losses related to merchandise on hand and on lease destroyed or severely damaged | 4.7 | ||
Gain in excess of insurance receivable | $ 0.9 | ||
Insurance proceeds received, before tax | $ (4.5) | $ (3.3) |
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, 2019 | Jan. 01, 2019 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Merchant fee percent | $ 2,592 | |
Retained Earnings | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Merchant fee percent | $ 2,592 | |
Credit Card Loans | Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Merchant fee | 3.00% | |
Credit Card Loans | Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Merchant fee | 25.00% |
Business and Summary of Sign_16
Business and Summary of Significant Accounting Policies - Narrative (Details) shares in Thousands, £ in Millions | Oct. 01, 2019USD ($) | Jul. 27, 2017USD ($) | Dec. 31, 2019USD ($)storestate | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)storestateshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | |||||||||||||||
Revenues | $ 1,003,604,000 | $ 963,808,000 | $ 968,141,000 | $ 1,012,103,000 | $ 993,184,000 | $ 953,071,000 | $ 927,859,000 | $ 954,809,000 | $ 3,947,656,000 | $ 3,828,923,000 | $ 3,383,708,000 | ||||
Advertising costs | 44,000,000 | 37,700,000 | 34,000,000 | ||||||||||||
Amount of cooperative advertising consideration netted against advertising expense | 27,700,000 | 28,300,000 | 22,500,000 | ||||||||||||
Prepaid advertising asset | 300,000 | 1,600,000 | 300,000 | 1,600,000 | |||||||||||
Impairment of assets | $ 30,344,000 | 20,098,000 | 1,968,000 | ||||||||||||
Threshold of past dues financing receivable that requires allowance | 24 months | ||||||||||||||
Threshold period past due for write-off of lease receivable | 60 days | ||||||||||||||
Depreciation expense for property, plant and equipment | $ 69,500,000 | 61,200,000 | 54,800,000 | ||||||||||||
Amortization expense | 35,600,000 | 33,000,000 | 27,700,000 | ||||||||||||
Assets held for sale | 10,131,000 | 6,589,000 | 10,131,000 | 6,589,000 | |||||||||||
Restructuring costs | 1,200,000 | 900,000 | |||||||||||||
Impairment of indefinite-lived intangibles | $ 0 | ||||||||||||||
Settlement of pre-existing relationship | 1,700,000 | 5,400,000 | |||||||||||||
Fair value of non-cash consideration | 600,000 | ||||||||||||||
Other nonoperating income (expense) | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Foreign currency transaction gains and (losses) | 2,100,000 | ||||||||||||||
Accounts Payable and Accrued Liabilities | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Asset retirement obligations | $ 2,700,000 | $ 2,700,000 | 2,700,000 | 2,700,000 | |||||||||||
Shipping and Handling | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Shipping and handling costs | 74,300,000 | 75,200,000 | 67,300,000 | ||||||||||||
Software | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Amortization expense | $ 18,600,000 | $ 14,100,000 | $ 11,500,000 | ||||||||||||
Customer Relationships | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 3 years | ||||||||||||||
Customer Lease Contracts | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 1 year | ||||||||||||||
Reacquired Franchise Rights | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 10 years | ||||||||||||||
Variable Interest Entity | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Held to maturity securities | £ 15.1 | $ 20,400,000 | |||||||||||||
Impairment of assets | $ 20,100,000 | ||||||||||||||
Restricted stock units | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Anti-dilutive Securities excluded from the computation of earnings per share assuming dilution | shares | 417 | 347 | 140 | ||||||||||||
Minimum | Non-compete Agreements | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 1 year | ||||||||||||||
Minimum | Customer-Related Intangible Assets | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 2 years | ||||||||||||||
Maximum | Non-compete Agreements | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 5 years | ||||||||||||||
Maximum | Customer-Related Intangible Assets | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 6 years | ||||||||||||||
Buildings and improvements | Minimum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life | 5 years | ||||||||||||||
Buildings and improvements | Maximum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life | 20 years | ||||||||||||||
Other depreciable property and equipment | Minimum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life | 1 year | ||||||||||||||
Other depreciable property and equipment | Maximum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life | 15 years | ||||||||||||||
Software | Minimum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life | 5 years | ||||||||||||||
Software | Maximum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life | 10 years | ||||||||||||||
Software updates | Maximum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life | 1 month | ||||||||||||||
Land and building | Restructuring Program 2016 and 2017 | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Gain on sale of corporate office building | $ 400,000 | ||||||||||||||
Sales and Lease Ownership | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Asset impairment charge | 200,000 | $ 700,000 | |||||||||||||
Sales and Lease Ownership and HomeSmart | Minimum | Initial Franchise Fees | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Revenues | $ 15,000 | ||||||||||||||
Sales and Lease Ownership and HomeSmart | Maximum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Percentage of royalty of gross revenue | 6.00% | ||||||||||||||
Sales and Lease Ownership and HomeSmart | Maximum | Initial Franchise Fees | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Revenues | $ 50,000 | ||||||||||||||
Progressive Leasing | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Threshold period past due for write-off of lease receivable | 120 days | ||||||||||||||
Vive | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Gain on sale of corporate office building | $ 1,700,000 | 800,000 | |||||||||||||
Company operated stores | store | 4 | 4 | |||||||||||||
Proceeds from sale of buildings | $ 2,600,000 | $ 2,200,000 | |||||||||||||
Agreement One | Sales and Lease Ownership | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Lease agreement period | 12 months | ||||||||||||||
Agreement One | Progressive Leasing | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Lease agreement period | 12 months | ||||||||||||||
Agreement Two | Sales and Lease Ownership | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Lease agreement period | 18 months | ||||||||||||||
Agreement Three | Sales and Lease Ownership | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Lease agreement period | 24 months | ||||||||||||||
SEI/Aaron’s, Inc. | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Settlement of pre-existing relationship | $ 3,452,000 | $ 3,500,000 | |||||||||||||
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 | Technology | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 10 years | ||||||||||||||
Progressive Leasing | Acquired Internal Use Software | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of intangibles (in years) | 3 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 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) customer in Thousands, $ in Thousands | Jan. 01, 2018USD ($) | Jul. 27, 2017USD ($)customerstorestate | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)store | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses and asset acquisitions, net of cash acquired | $ (14,285) | $ (189,901) | $ (145,558) | ||||
Franchisee Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Number of branded stores | store | 152 | ||||||
Purchase price | $ 190,167 | ||||||
Revenues | 183,300 | $ 72,000 | |||||
Earnings before income taxes | 3,300 | 800 | |||||
Acquisition related costs | 1,700 | ||||||
SEI/Aaron’s, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Number of branded stores | store | 104 | ||||||
Purchase price | $ 140,000 | ||||||
Revenues | $ 58,300 | 122,500 | 129,400 | ||||
Earnings before income taxes | $ 2,500 | $ 3,600 | $ 11,000 | ||||
Acquisition related costs | $ 2,100 | ||||||
Number of customers entity serves | customer | 90 | ||||||
Number of states in which entity operates | state | 11 | ||||||
Previously Reported | SEI/Aaron’s, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 140,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Add: Settlement of Accounts Receivable from Pre-existing Relationship | $ 1,700 | $ 5,400 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Goodwill | 736,582 | 733,170 | $ 622,948 | ||
Other Intangibles, Net | 190,796 | $ 228,600 | |||
Franchisee Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Purchase Price | $ 190,167 | ||||
Add: Settlement of Accounts Receivable from Pre-existing Relationship | 5,405 | ||||
Working Capital Adjustment | 155 | ||||
Consideration Transferred | 195,727 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Cash and Cash Equivalents | 50 | ||||
Lease Merchandise | 59,616 | ||||
Property, Plant and Equipment | 5,568 | ||||
Operating Lease Right-of-Use Assets | 4,338 | ||||
Other intangibles | 23,322 | ||||
Prepaid Expenses and Other Assets | 1,241 | ||||
Total Identifiable Assets Acquired | 94,135 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Accounts Payable and Accrued Expenses | (977) | ||||
Customer Deposits and Advance Payments | (5,156) | ||||
Total Liabilities Assumed | (6,133) | ||||
Goodwill | 107,725 | ||||
Net Assets Acquired | $ 88,002 | ||||
Other Intangibles, Net | $ 1,200 | ||||
SEI/Aaron’s, Inc. | |||||
Business Acquisition [Line Items] | |||||
Purchase Price | $ 140,000 | ||||
Add: Settlement of Accounts Receivable from Pre-existing Relationship | 3,452 | $ 3,500 | |||
Less: 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 | ||||
Accounts Receivable | 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 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Jul. 27, 2017 | Dec. 31, 2019 | 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 | $ 23,322 | ||
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 | $ 7,457 | ||
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 | $ 9,330 | ||
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 6 days | ||
SEI/Aaron’s, Inc. | Non-compete Agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 1,244 | ||
Estimated useful lives of intangibles (in years) | 5 years | ||
SEI/Aaron’s, Inc. | Customer Lease Contracts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 2,154 | ||
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 18 days |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 736,582 | $ 733,170 | $ 622,948 |
Indefinite-lived Intangible Assets | 789,582 | 786,170 | |
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, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 733,170 | $ 622,948 |
Acquisitions | 6,526 | 110,469 |
Disposals, Currency Translation and Other Adjustments | (362) | (260) |
Acquisition Accounting Adjustments | (2,752) | 13 |
Ending Balance | 736,582 | 733,170 |
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 | 444,369 | 334,147 |
Acquisitions | 6,526 | 110,469 |
Disposals, Currency Translation and Other Adjustments | (362) | (260) |
Acquisition Accounting Adjustments | (2,752) | 13 |
Ending Balance | $ 447,781 | $ 444,369 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 289,728 | $ 305,715 |
Accumulated Amortization | (151,932) | (130,115) |
Net | 137,796 | 175,600 |
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 | (39,859) | (32,749) |
Net | 28,691 | 35,801 |
Merchant Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 181,000 | 181,000 |
Accumulated Amortization | (86,184) | (71,101) |
Net | 94,816 | 109,899 |
Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 26,178 | 42,165 |
Accumulated Amortization | (11,889) | (12,265) |
Net | $ 14,289 | $ 29,900 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 35.6 | $ 33 | $ 27.7 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 28,722 |
2021 | 26,038 |
2022 | 23,111 |
2023 | 22,527 |
2024 | $ 17,440 |
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, 2019 | Dec. 31, 2018 |
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 | (11,201) | (10,389) |
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, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | $ 10,131 | $ 6,589 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | 10,131 | 6,589 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held for Sale | $ 0 | $ 0 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets (Liabilities) Not Measured at Fair Value In Consolidated Balance Sheets (Details) - Fixed-Rate Long-term Debt - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, fair value | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, fair value | (123,705) | (183,765) |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, fair value | $ 0 | $ 0 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed-Rate Long-term Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, carrying value | $ 120 | $ 180 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 513,779 | |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset | $ 548,918 | |
Less: Accumulated Depreciation and Amortization | (311,252) | |
Less: Accumulated Depreciation and Amortization | 284,287 | |
Property, Plant and Equipment, Net | 237,666 | |
Property, Plant and Equipment, Net | 237,666 | 229,492 |
Related Party | ||
Property, Plant and Equipment [Line Items] | ||
Assets Under Finance Leases | 0 | |
Non-Related Party | ||
Property, Plant and Equipment [Line Items] | ||
Assets Under Finance Leases | 3,189 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 16,427 | 19,950 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 54,923 | 67,081 |
Leasehold Improvements and Signs | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 87,126 | 83,867 |
Fixtures and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 244,623 | 210,747 |
Software - Internal-Use | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 135,076 | 106,671 |
Assets Under Capital Leases | Related Party | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 872 | |
Assets Under Capital Leases | Non-Related Party | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 9,487 | |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 7,554 | $ 15,104 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Internal-use software development cost, accumulated amortization | $ 75.2 | $ 56.9 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Amortization of right-of-use assets | $ 1,542 | ||
Amortization expense on assets recorded under capital leases | $ 800 | $ 1,500 | |
Accumulated depreciation and amortization, capital lease assets | 284,287 | ||
Related Party | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization, capital lease assets | 800 | ||
Non-Related Party | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization, capital lease assets | $ 8,300 | ||
Finance lease, accumulated amortization | $ 2,400 |
Loans Receivable - Components o
Loans Receivable - Components of Loans Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, after Allowance for Credit Loss [Abstract] | |||
Loans Receivable, Gross | $ 96,387 | $ 96,094 | |
Allowance for Loan Losses | (14,911) | (12,970) | $ (11,454) |
Unamortized Fees | (6,223) | (6,971) | |
Loans Receivable, Net of Allowances and Unamortized Fees | 75,253 | 76,153 | |
Credit Card Loans | |||
Financing Receivable, after Allowance for Credit Loss [Abstract] | |||
Loans Receivable, Gross | 96,387 | 90,406 | |
Acquired Loans | |||
Financing Receivable, after Allowance for Credit Loss [Abstract] | |||
Loans Receivable, Gross | $ 0 | $ 5,688 |
Loans Receivable - Aging of the
Loans Receivable - Aging of the Loans Receivable Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 15.50% | 14.60% |
Current loans receivable (percentage) | 84.50% | 85.40% |
Balance of Loans Receivable on Nonaccrual Status | $ 2,284 | $ 2,110 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 6.90% | 6.90% |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 3.60% | 3.40% |
90 or more Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable (percentage) | 5.00% | 4.30% |
Balance of Loans Receivable Greater Than 90 Days Past Due and Still Accruing Interest and Fees | $ 0 | $ 0 |
Loans Receivable - Components_2
Loans Receivable - Components of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Components of the Allowance For Loan Losses: | ||
Beginning Balance | $ 12,970 | $ 11,454 |
Provision for Loan Losses | 21,667 | 21,063 |
Charge-offs | (22,204) | (21,190) |
Recoveries | 2,478 | 1,643 |
Ending Balance | $ 14,911 | $ 12,970 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Rental expense | $ 111.7 | $ 112.8 | $ 104.3 | |
Proceeds from sale and leaseback transactions | $ 8.1 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 20 years | |||
Closure of Company Operated Stores | ||||
Lessee, Lease, Description [Line Items] | ||||
Rental expense | $ 28.4 | $ 2.1 | $ 13.4 | |
Aaron’s Business | Operating Segments | ||||
Lessee, Lease, Description [Line Items] | ||||
Gain related to the sale and leaseback transaction | $ 5.6 | |||
Transportation Vehicles | ||||
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term | 3 years | |||
Various IT Equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term | 3 years |
Leases - Total Lease Expense (
Leases - Total Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Amortization of Right-of-Use Assets | $ 1,542 |
Interest on Lease Liabilities | 363 |
Total Finance Lease Cost | 1,905 |
Operating Lease Cost | 112,387 |
Sublease Receipts | (3,044) |
Total Lease Cost | 114,292 |
Future sublease rental income in one year | 2,700 |
Future sublease rental income in two years | 2,400 |
Future sublease rental income in three years | 1,500 |
Future sublease rental income in four years | 1,000 |
Future sublease rental income in five years | 500 |
Future sublease rental income in five years and thereafter | 300 |
Operating Lease Cost Classified within Operating Expenses | |
Lessee, Lease, Description [Line Items] | |
Operating Lease Cost | 112,092 |
Operating Lease cost classified within Restructuring Expenses, Net | |
Lessee, Lease, Description [Line Items] | |
Operating Lease Cost | $ 3,339 |
Leases - Leasing Activities (D
Leases - Leasing Activities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Cash Flows for Finance Leases | $ 411 |
Operating Cash Flows for Operating Leases | 126,361 |
Financing Cash Flows for Finance Leases | 2,493 |
Total Cash paid for amounts included in measurement of Lease Liabilities | 129,265 |
Right-of-Use Assets obtained in exchange for new Finance Lease Liabilities | 0 |
Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities | $ 53,883 |
Leases - Supplemental Balance
Leases - Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating Lease Assets | $ 329,211 |
Finance Lease Assets | 768 |
Total Lease Assets | 329,979 |
Operating Lease Liabilities | 369,386 |
Finance Lease Liabilities | 2,670 |
Total Lease Liabilities | $ 372,056 |
Leases - Summary of the Weight
Leases - Summary of the Weighted-Average Discount Rate and Weighted-Average Remaining Lease Term (Details) | Dec. 31, 2019 |
Weighted Average Discount Rate | |
Finance Leases | 5.70% |
Operating Leases | 3.60% |
Weighted Average Remaining Lease Term (in years) | |
Finance Leases | 1 year 6 months |
Operating Leases | 4 years 10 months 24 days |
Leases - Operating and Finance
Leases - Operating and Finance Lease Liability (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 108,089 |
2021 | 91,376 |
2022 | 70,208 |
2023 | 48,773 |
2024 | 32,345 |
Thereafter | 53,439 |
Total Undiscounted Cash Flows | 404,230 |
Less: Interest | 34,844 |
Present Value of Lease Liabilities | 369,386 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | 2,006 |
2021 | 801 |
2022 | 80 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Undiscounted Cash Flows | 2,887 |
Less: Interest | 217 |
Present Value of Lease Liabilities | 2,670 |
Total | |
2020 | 110,095 |
2021 | 92,177 |
2022 | 70,288 |
2023 | 48,773 |
2024 | 32,345 |
Thereafter | 53,439 |
Total Undiscounted Cash Flows | 407,117 |
Less: Interest | 35,061 |
Present Value of Lease Liabilities | $ 372,056 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) | Apr. 14, 2014USD ($) | Dec. 31, 2019USD ($) | Dec. 21, 2020USD ($) | Dec. 31, 2018USD ($) |
Debt Instruments [Abstract] | ||||
Debt | $ 341,030,000 | $ 424,752,000 | ||
Capital Lease Obligations | 5,042,000 | |||
Finance Lease Liabilities | 2,670,000 | |||
Less: Current Maturities | 83,886,000 | 83,778,000 | ||
Long-Term Debt | 257,144,000 | 340,974,000 | ||
Unamortized debt issuance expense | $ 1,000,000 | 1,400,000 | ||
DAMI Credit Facility | LIBOR | Revolving Credit Agreement | ||||
Debt Instruments [Abstract] | ||||
Interest rate basis spread (percentage) | 3.05% | |||
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] | ||||
Decrease in credit amount outstanding | $ 13,800,000 | |||
Line of Credit | Revolving Credit Agreement | ||||
Debt Instruments [Abstract] | ||||
Debt issuance costs, net | 1,900,000 | 2,600,000 | ||
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 | $ 0 | 16,000,000 | ||
Line of credit, additional borrowing capacity (up to) | 250,000,000 | |||
Line of credit amount outstanding | $ 386,200,000 | |||
Line of Credit | Revolving Facility | Revolving Credit Agreement | Minimum | ||||
Debt Instruments [Abstract] | ||||
Commitment fee for unused balance amount (percentage) | 0.15% | |||
Line of Credit | Revolving Facility | Revolving Credit Agreement | Maximum | ||||
Debt Instruments [Abstract] | ||||
Commitment fee for unused balance amount (percentage) | 0.30% | |||
Unsecured Debt | Term Loan | ||||
Debt Instruments [Abstract] | ||||
Debt | $ 219,400,000 | |||
Maximum borrowing capacity | 225,000,000 | |||
Installment payments required | 5,600,000 | |||
Senior Notes | Senior Unsecured Notes, 4.75%, Due in Installments through April 2021 | ||||
Debt Instruments [Abstract] | ||||
Debt | $ 119,847,000 | 179,750,000 | ||
Debt interest rate (percentage) | 4.75% | 4.75% | ||
Notes issued | $ 300,000,000 | |||
Periodic payment, principal | $ 60,000,000 | |||
Term Loan | ||||
Debt Instruments [Abstract] | ||||
Debt | $ 218,513,000 | 223,837,000 | ||
Finance Lease, Liability, Related Party | ||||
Debt Instruments [Abstract] | ||||
Finance Lease Liabilities | $ 0 | |||
Capital Lease Obligations, Related Party | ||||
Debt Instruments [Abstract] | ||||
Capital Lease Obligations | $ 123,000 | |||
Subsequent Event | Line of Credit | Revolving Credit Agreement | ||||
Debt Instruments [Abstract] | ||||
Maximum borrowing capacity | $ 500,000,000 |
Indebtedness - Future Maturitie
Indebtedness - Future Maturities of Long Term Debt and Capital Lease Obligations (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Maturities of Long-term Debt [Abstract] | |
2020 | $ 84,321 |
2021 | 83,271 |
2022 | 174,453 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total | $ 342,045 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Remeasurement of net deferred tax liabilities | $ 140,000 | |||
Income tax receivable, related to carrybacks | $ 15,600 | |||
Income tax receivable | 18,690 | $ 29,148 | 100,000 | |
Proceeds from refund of overpaid federal tax | $ 77,000 | |||
Uncertain tax benefits that, if recognized, would affect effective tax rate | 4,200 | 2,500 | ||
Recognized interest and penalties expense (benefit) related to unrecognized tax benefits | 200 | 100 | $ (600) | |
Accrued interest and penalties | 500 | $ 300 | ||
State Tax | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 8,100 | |||
Net operating loss carryforwards | 4,700 | |||
Federal Tax | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 187,000 | |||
Foreign Tax | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 4,100 | |||
Federal Trade Commission Inquiry | ||||
Operating Loss Carryforwards [Line Items] | ||||
Litigation settlement, amount awarded to other party | $ 175,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Income Tax Expense: | |||
Federal | $ 2,033 | $ (5,380) | $ (3,530) |
State | 9,316 | 13,015 | 9,772 |
Current Income Tax Expense | 11,349 | 7,635 | 6,242 |
Deferred Income Tax Expense (Benefit): | |||
Federal | 49,911 | 48,287 | (60,547) |
State | 56 | 72 | 1,346 |
Deferred Income Tax Expense (Benefit) | 49,967 | 48,359 | (59,201) |
Income Tax Expense (Benefit) | $ 61,316 | $ 55,994 | $ (52,959) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Liabilities and Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Liabilities: | ||
Lease Merchandise and Property, Plant and Equipment | $ 176,017 | $ 174,171 |
Goodwill and Other Intangibles | 44,435 | 41,183 |
Investment in Partnership | 191,114 | 159,070 |
Operating Lease Right-of-Use Assets | 75,146 | |
Other, Net | 2,019 | 1,804 |
Total Deferred Tax Liabilities | 488,731 | 376,228 |
Deferred Tax Assets: | ||
Accrued Liabilities | 20,221 | 21,918 |
Advance Payments | 9,575 | 9,232 |
Operating Lease Liabilities | 83,154 | |
Other, Net | 66,212 | 86,339 |
Total Deferred Tax Assets | 179,162 | 117,489 |
Less Valuation Allowance | 0 | 0 |
Net Deferred Tax Liabilities | $ 309,569 | $ 258,739 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory Rate | 21.00% | 21.00% | 35.00% |
Increases (Decreases) in United States Federal Taxes | |||
State Income Taxes, net of Federal Income Tax Benefit | 9.80% | 4.00% | 2.70% |
Permanent difference for loss on Progressive FTC matter | 39.60% | 0.00% | 0.00% |
Other Permanent Differences | (2.50%) | (1.20%) | 0.00% |
Federal Tax Credits | (2.30%) | (0.50%) | (0.80%) |
Change in Valuation Allowance | 0.00% | 0.00% | (0.40%) |
Remeasurement of net Deferred Tax Liabilities | (1.80%) | (0.20%) | (58.20%) |
Other, net | 2.30% | (0.90%) | (0.40%) |
Effective Tax Rate | 66.10% | 22.20% | (22.10%) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of activity related to uncertain tax positions: | |||
Beginning Balance | $ 2,529 | $ 2,269 | $ 2,594 |
Additions Based on Tax Positions Related to the Current Year | 236 | 269 | 456 |
Additions for Tax Positions of Prior Years | 1,957 | 615 | 232 |
Prior Year Reductions | (76) | (85) | (236) |
Statute Expirations | (306) | (257) | (346) |
Settlements | 0 | (282) | (431) |
Ending Balance | $ 4,340 | $ 2,529 | $ 2,269 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Oct. 11, 2019CAD ($) | Dec. 31, 2019USD ($) | Feb. 11, 2020USD ($) | Jan. 21, 2020USD ($) | Oct. 11, 2019USD ($) | Oct. 10, 2019USD ($) | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |||||||
Loan due In full, term (in days) | 90 days | ||||||
Portion that company might be obligated to repay in the event franchisees defaulted | $ 29,400,000 | ||||||
Fair value of franchise related borrowings | 300,000 | $ 300,000 | |||||
Loan facility maximum commitment amount | $ 40,000,000 | $ 55,000,000 | |||||
Accrued regulatory expense | 182,900,000 | 1,400,000 | |||||
Insurance receivable | 5,700,000 | ||||||
Liability reserve | 400,000 | 500,000 | |||||
Minimum | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Loss contingency in excess of accrual, range of possible loss | 0 | ||||||
Minimum range of possible loss | 0 | ||||||
Maximum | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Loss contingency in excess of accrual, range of possible loss | 2,000,000 | ||||||
Minimum range of possible loss | 1,000,000 | ||||||
Unused Credit Card Lines | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Remaining credit available | 225,000,000 | $ 316,400,000 | |||||
Marketing and Advertising Expense | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Non-cancelable commitments | 30,900,000 | ||||||
Non-cancelable commitments due in 2020 | 18,300,000 | ||||||
Non-cancelable commitments due in 2021 | 11,000,000 | ||||||
Non-cancelable commitments due in 2022 | 1,600,000 | ||||||
Canada | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Loan facility maximum Canadian sub facility commitment amount | $ 25,000,000 | ||||||
Subsequent Event | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Loan facility maximum commitment amount | $ 25,000,000 | $ 35,000,000 | |||||
Federal Trade Commission Inquiry | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Accrued regulatory expense | 179,300,000 | ||||||
Accrued professional fees | 4,300,000 | ||||||
Litigation settlement, amount awarded to other party | $ 175,000,000 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | 48 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($)store | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)store | Dec. 31, 2017USD ($) | Dec. 31, 2018store | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring expenses net | $ 2,500 | $ 5,500 | $ 18,700 | $ 13,300 | $ 600 | $ 500 | $ (900) | $ 900 | $ 17,994 | |||
Facility Closing | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Number of store closures | store | 139 | |||||||||||
Restructuring expenses net | $ 0 | |||||||||||
2016 and 2017 Restructuring Program | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring expenses net | $ 1,600 | $ 40,900 | ||||||||||
2019 Restructuring Program | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Number of store closures | store | 155 | |||||||||||
Restructuring expenses net | $ 38,400 | |||||||||||
Canada | 2019 Restructuring Program | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Number of stores | store | 6 |
Restructuring - Summary of Accr
Restructuring - Summary of Accruals of Restructuring Programs (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 9,123 | $ 651 | $ 14,740 |
Charges | 601 | ||
Adjustments | (8,472) | (2,057) | |
Restructuring Charges | 3,403 | 2,658 | |
Payments | (3,298) | (8,275) | |
Restructuring reserve, ending balance | 651 | 756 | 9,123 |
Contractual Lease Obligations | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 8,472 | 0 | 12,437 |
Charges | 0 | ||
Adjustments | (8,472) | (2,057) | |
Restructuring Charges | 0 | 2,057 | |
Payments | 0 | (6,022) | |
Restructuring reserve, ending balance | 0 | 0 | 8,472 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 651 | 651 | 2,303 |
Charges | 601 | ||
Adjustments | 0 | 0 | |
Restructuring Charges | 3,403 | 601 | |
Payments | (3,298) | (2,253) | |
Restructuring reserve, ending balance | $ 651 | $ 756 | $ 651 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 2,500 | $ 5,500 | $ 18,700 | $ 13,300 | $ 600 | $ 500 | $ (900) | $ 900 | $ 17,994 | ||
Right-of-Use Asset Impairment and Operating Lease Charges | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 13,432 | ||||||||||
Fixed Asset Impairment | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 1,386 | ||||||||||
Severance | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 3,176 | ||||||||||
Other Expenses (Reversals) | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 0 | ||||||||||
Loss (Gain) on Sale of Store Properties | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 0 | ||||||||||
Aaron’s Business | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 39,990 | $ 1,105 | 17,523 | ||||||||
Aaron’s Business | Right-of-Use Asset Impairment and Operating Lease Charges | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 28,411 | 2,057 | 13,432 | ||||||||
Aaron’s Business | Fixed Asset Impairment | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 5,238 | 0 | 1,386 | ||||||||
Aaron’s Business | Severance | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 3,403 | 601 | 2,705 | ||||||||
Aaron’s Business | Other Expenses (Reversals) | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 1,886 | (1,176) | 0 | ||||||||
Aaron’s Business | Loss (Gain) on Sale of Store Properties | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 1,052 | $ (377) | 0 | ||||||||
Vive | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 471 | ||||||||||
Vive | Right-of-Use Asset Impairment and Operating Lease Charges | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 0 | ||||||||||
Vive | Fixed Asset Impairment | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 0 | ||||||||||
Vive | Severance | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 471 | ||||||||||
Vive | Other Expenses (Reversals) | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 0 | ||||||||||
Vive | Loss (Gain) on Sale of 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Treasury Shares | 24,034,053 | 23,567,979 | |
Authorized stock repurchase program, amount | $ 262,000 | ||
Stock repurchased during period | 398 | ||
Repurchased shares, amount | $ 69,255 | $ 168,735 | $ 62,550 |
Preferred stock, authorized (in shares) | 1,000,000 | ||
Preferred stock, issued (in shares) | 0 | ||
Treasury Stock | |||
Class of Stock [Line Items] | |||
Repurchased shares, amount | $ 69,255 | $ 168,735 | $ 62,550 |
Nonvoting Common Stock | |||
Class of Stock [Line Items] | |||
Common stock repurchased (in shares) | 1,156,184 | 3,749,493 | 1,961,442 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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) | 3,772,517 | ||
Stock based compensation expense | $ 26.5 | $ 28.2 | $ 27.4 |
Tax benefit from exercise of stock options | 6.6 | 6.9 | 10.4 |
Excess tax benefit from share-based compensation, operating activities | $ 4.8 | $ 5.7 | $ 1.1 |
Stock options granted (in shares) | 293,000 | 361,000 | 518,000 |
Aggregate Intrinsic value of options exercised | $ 6.5 | $ 6.6 | $ 2.6 |
Fair value of options vested | $ 4.6 | $ 3.5 | $ 1.7 |
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) | 128,134 | ||
Unrecognized compensation expense related to non-vested award | $ 24.6 | ||
Unrecognized compensation expense related to non-vested award, recognition period (in years) | 1 year 3 months 18 days | ||
Weighted average grant date fair value (in dollars per share) | $ 42.07 | $ 35.74 | |
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) | 225,000 | 248,000 | 375,000 |
Weighted average grant date fair value (in dollars per share) | $ 54.28 | $ 46.01 | $ 29.27 |
Total fair value of shares vesting | $ 14.6 | $ 24.8 | $ 9.9 |
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) | 248,000 | ||
Weighted average grant date fair value (in dollars per share) | $ 54.27 | ||
Total fair value of shares vesting | $ 22.1 | $ 22.6 | $ 7.9 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend Yield | 0.30% | 0.30% | 0.40% |
Expected Volatility | 36.50% | 34.80% | 32.80% |
Risk-free Interest Rate | 2.50% | 2.60% | 1.90% |
Expected Term (in years) | 5 years 3 months 18 days | 5 years 3 months 18 days | 5 years 3 months 18 days |
Weighted-average Fair Value of Stock Options Granted (in dollars per share) | $ 19.59 | $ 16.54 | $ 8.55 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary Information about Stock Options Outstanding (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 34.71 | $ 30.42 |
$19.92-20.00 | ||
Share-based Payment Arrangement, Option, 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 | 11,250 | |
Options outstanding, weighted average remaining contractual life (in years) | 4 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 19.92 | |
Options Exercisable | 11,250 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 19.92 | |
20.01-30.00 | ||
Share-based Payment Arrangement, Option, 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 | 1,006,783 | |
Options outstanding, weighted average remaining contractual life (in years) | 6 years 2 months 23 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 25.51 | |
Options Exercisable | 851,403 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 25.21 | |
30.01-40.00 | ||
Share-based Payment Arrangement, Option, 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 | 97,301 | |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 3 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 32.16 | |
Options Exercisable | 97,301 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 32.16 | |
40.01-50.00 | ||
Share-based Payment Arrangement, Option, 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) | $ 50 | |
Options Outstanding | 330,890 | |
Options outstanding, weighted average remaining contractual life (in years) | 8 years 14 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 47.26 | |
Options Exercisable | 103,430 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 47.26 | |
50.01-54.18 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price, lower range limit (in dollars per share) | 50.01 | |
Exercise price, upper range limit (in dollars per share) | $ 54.18 | |
Options Outstanding | 283,590 | |
Options outstanding, weighted average remaining contractual life (in years) | 9 years 7 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 54.18 | |
Options Exercisable | 0 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0 | |
19.92-54.18 | ||
Share-based Payment Arrangement, Option, 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) | $ 54.18 | |
Options Outstanding | 1,729,814 | |
Options outstanding, weighted average remaining contractual life (in years) | 6 years 11 months 4 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 34.71 | |
Options Exercisable | 1,063,384 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 27.93 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options | |||
Beginning Balance (In Shares) | 1,677 | ||
Granted (In Shares) | 293 | 361 | 518 |
Exercised (In Shares) | (217) | ||
Forfeited/expired (In Shares) | (23) | ||
Ending Balance (In Shares) | 1,730 | 1,677 | |
Expected to Vest (In Shares) | 654 | ||
Exercisable (In Shares) | 1,063 | ||
Weighted Average Exercise Price | |||
Beginning Balance (in dollars per share) | $ 30.42 | ||
Granted (in dollars per share) | 54.18 | ||
Exercised (in dollars per share) | 26.76 | ||
Forfeited/expired (in dollars per share) | 44.69 | ||
Ending Balance (in dollars per share) | 34.71 | $ 30.42 | |
Expected to Vest (in dollars per share) | 45.36 | ||
Exercisable (in dollars per share) | $ 27.93 | ||
Weighted Average Remaining Contractual Term (in Years) | |||
Outstanding | 6 years 11 months 4 days | ||
Expected to Vest | 8 years 3 months 14 days | ||
Exercisable | 6 years 1 month 6 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 38,754 | ||
Expected | 7,687 | ||
Exercisable | $ 31,028 | ||
Weighted Average Fair Value | |||
Outstanding (in dollars per share) | $ 11.67 | ||
Expected to Vest (in dollars per share) | 15.91 | ||
Exercisable (in dollars per share) | $ 8.97 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 14.6 | $ 24.8 | $ 9.9 |
Restricted Stock | |||
Beginning Balance (In Shares) | 589 | ||
Granted (In Shares) | 225 | 248 | 375 |
Vested (In Shares) | (280) | ||
Forfeited (In Shares) | (40) | ||
Ending Balance (In Shares) | 494 | 589 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 34.18 | ||
Granted (in dollars per share) | 54.28 | $ 46.01 | $ 29.27 |
Vested (in dollars per share) | 30.96 | ||
Forfeited (in dollars per share) | 44.45 | ||
Ending Balance (in dollars per share) | $ 44.33 | $ 34.18 | |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vesting | $ 22.1 | $ 22.6 | $ 7.9 |
Restricted Stock | |||
Beginning Balance (In Shares) | 799 | ||
Granted (In Shares) | 248 | ||
Vested (In Shares) | (425) | ||
Forfeited (In Shares) | (40) | ||
Ending Balance (In Shares) | 582 | 799 | |
Weighted Average Fair Value | |||
Beginning Balance (in dollars per share) | $ 33.11 | ||
Granted (in dollars per share) | 54.27 | ||
Vested (in dollars per share) | 29.89 | ||
Forfeited (in dollars per share) | 41.27 | ||
Ending Balance (in dollars per share) | $ 43.93 | $ 33.11 |
Stock-based Compensation - Empl
Stock-based Compensation - Employee Stock Purchase Plan (Details) - USD ($) | May 09, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 3,772,517 | ||
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 | $ 500,000 | $ 200,000 | |
Number of shares issued under the ESPP | 46,642 | 25,239 | |
Weighted average grant date fair value (in dollars per share) | $ 42.07 | $ 35.74 | |
Aggregate number of shares of common stock issued or transferred under the incentive stock awards plan (in shares) | 128,134 |
Segments - Narrative (Details)
Segments - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segmentsegments | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segments | 3 | ||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Restructuring expenses net | $ 2,500 | $ 5,500 | $ 18,700 | $ 13,300 | $ 600 | $ 500 | $ (900) | $ 900 | $ 17,994 | ||
Gain in excess of insurance receivable | $ 900 | ||||||||||
Impairment of assets | $ 30,344 | 20,098 | 1,968 | ||||||||
Aaron’s Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring expenses net | 39,990 | 1,105 | 17,523 | ||||||||
Gain on sale of real estate properties | (7,400) | ||||||||||
Gain in excess of insurance receivable | 4,500 | ||||||||||
Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Legal and Regulatory Expense | $ 179,300 | ||||||||||
Vive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain on sale of corporate office building | 800 | ||||||||||
DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring expenses net | $ 471 | ||||||||||
Gain on sale of corporate office building | $ 1,700 | $ 800 | |||||||||
Variable Interest Entity | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Impairment of assets | $ 20,100 |
Segments - Disaggregated Revenu
Segments - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,003,604 | $ 963,808 | $ 968,141 | $ 1,012,103 | $ 993,184 | $ 953,071 | $ 927,859 | $ 954,809 | $ 3,947,656 | $ 3,828,923 | $ 3,383,708 |
Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,128,133 | 1,998,981 | 1,566,413 | ||||||||
Aaron’s Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,784,477 | 1,792,624 | 1,782,370 | ||||||||
DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 35,046 | 37,318 | 34,925 | ||||||||
Lease Revenues and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,698,491 | 3,506,418 | 3,000,231 | ||||||||
Lease Revenues and Fees | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,128,133 | 1,998,981 | 1,566,413 | ||||||||
Lease Revenues and Fees | Aaron’s Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,570,358 | 1,507,437 | 1,433,818 | ||||||||
Lease Revenues and Fees | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Leases | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 27,400 | 19,800 | 6,300 | ||||||||
Retail Sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 38,474 | 31,271 | 27,465 | ||||||||
Retail Sales | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Retail Sales | Aaron’s Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 38,474 | 31,271 | 27,465 | ||||||||
Retail Sales | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Non-Retail Sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 140,950 | 207,262 | 270,253 | ||||||||
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 | 140,950 | 207,262 | 270,253 | ||||||||
Non-Retail Sales | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Franchise Royalties and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 33,432 | 44,815 | 48,278 | ||||||||
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 | 33,432 | 44,815 | 48,278 | ||||||||
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 | 35,046 | 37,318 | 34,925 | ||||||||
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 | 35,046 | 37,318 | 34,925 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,263 | 1,839 | 2,556 | ||||||||
Other | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Other | Aaron’s Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,263 | 1,839 | 2,556 | ||||||||
Other | DAMI | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Canada Operations | Lease Revenues and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 24,700 | 21,300 | 18,300 | ||||||||
Transferred over Time | Franchise Royalties and Fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 25,500 | $ 33,300 | $ 44,600 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense | $ (86,004) | $ 51,665 | $ 56,819 | $ 70,308 | $ 82,057 | $ 53,415 | $ 49,980 | $ 66,752 | $ 92,788 | $ 252,204 | $ 239,577 |
Assets | 3,297,800 | 2,826,692 | 3,297,800 | 2,826,692 | |||||||
Depreciation and Amortization | 105,061 | 94,150 | 82,572 | ||||||||
Depreciation of Lease Merchandise | 1,972,358 | 1,727,904 | 1,448,631 | ||||||||
Interest Expense | 16,967 | 16,440 | 20,538 | ||||||||
Capital Expenditures | 92,963 | 78,845 | 57,973 | ||||||||
Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense | 55,711 | 175,015 | 140,224 | ||||||||
Aaron’s Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense | 46,731 | 84,683 | 110,642 | ||||||||
Vive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (Loss) Before Income Tax (Benefit) Expense | (9,654) | (7,494) | (11,289) | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital Expenditures | 424 | 1,035 | 1,425 | ||||||||
Operating Segments | Progressive Leasing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 1,261,786 | 1,088,227 | 1,261,786 | 1,088,227 | |||||||
Depreciation and Amortization | 29,967 | 27,974 | 29,048 | ||||||||
Depreciation of Lease Merchandise | 1,445,027 | 1,219,035 | 949,167 | ||||||||
Interest Expense | 8,572 | 16,288 | 18,577 | ||||||||
Capital Expenditures | 12,608 | 10,711 | 8,213 | ||||||||
Operating Segments | Aaron’s Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 1,740,281 | 1,483,102 | 1,740,281 | 1,483,102 | |||||||
Depreciation and Amortization | 73,709 | 64,744 | 52,251 | ||||||||
Depreciation of Lease Merchandise | 527,331 | 508,869 | 499,464 | ||||||||
Interest Expense | 4,868 | (2,944) | (2,366) | ||||||||
Capital Expenditures | 79,931 | 67,099 | 48,335 | ||||||||
Operating Segments | Vive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 85,825 | 95,341 | 85,825 | 95,341 | |||||||
Depreciation and Amortization | 1,385 | 1,432 | 1,273 | ||||||||
Depreciation of Lease Merchandise | 0 | 0 | 0 | ||||||||
Interest Expense | 3,527 | 3,096 | $ 4,327 | ||||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 209,908 | 160,022 | 209,908 | 160,022 | |||||||
Operating Segments | Canada Operations | Aaron’s Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 28,152 | $ 25,893 | $ 28,152 | $ 25,893 |
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, 2019 | Dec. 31, 2018 |
Manufacturing | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Inventory, including raw materials and work-in-process | $ 14 | $ 15.2 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transactions [Abstract] | |||
Sale leaseback, number of properties | property | 21 | ||
Aggregate annual rental | $ | $ 0.2 | $ 1.2 | $ 2 |
- Quarterly Financial Informati
- Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 1,003,604 | $ 963,808 | $ 968,141 | $ 1,012,103 | $ 993,184 | $ 953,071 | $ 927,859 | $ 954,809 | $ 3,947,656 | $ 3,828,923 | $ 3,383,708 | |
Gross Profit | 381,491 | 358,667 | 381,965 | 399,978 | 376,497 | 341,074 | 345,557 | 351,241 | ||||
Earnings (Loss) Before Income Taxes | (86,004) | 51,665 | 56,819 | 70,308 | 82,057 | 53,415 | 49,980 | 66,752 | 92,788 | 252,204 | 239,577 | |
Net Earnings (Loss) | $ (107,057) | $ 39,801 | $ 42,650 | $ 56,078 | $ 61,743 | $ 43,720 | $ 38,501 | $ 52,246 | $ 31,472 | $ 196,210 | $ 292,536 | |
Earnings Per Share (in dollars per share) | $ (1.60) | $ 0.59 | $ 0.63 | $ 0.83 | $ 0.91 | $ 0.64 | $ 0.55 | $ 0.75 | $ 0.47 | $ 2.84 | $ 4.13 | |
Earnings Per Share Assuming Dilution (in dollars per share) | $ (1.60) | $ 0.58 | $ 0.62 | $ 0.82 | $ 0.89 | $ 0.62 | $ 0.54 | $ 0.73 | $ 0.46 | $ 2.78 | $ 4.06 | |
Accounts Receivable, allowances | $ 76,293 | $ 62,704 | $ 76,293 | $ 62,704 | $ 46,946 | $ 35,690 | ||||||
Progressive Leasing | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Earnings (Loss) Before Income Taxes | $ 55,711 | 175,015 | $ 140,224 | |||||||||
Accounts Receivable, allowances | $ 67,000 | $ 64,200 | $ 50,000 | $ 46,500 | $ 67,000 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||||||||
Gain in excess of insurance receivable | $ 900 | ||||||||||
Impairment of assets | $ 30,344 | 20,098 | $ 1,968 | ||||||||
Restructuring charges | $ 2,500 | $ 5,500 | $ 18,700 | $ 13,300 | $ 600 | $ 500 | $ (900) | $ 900 | 17,994 | ||
Variable Interest Entity | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Impairment of assets | $ 20,100 | ||||||||||
Aaron’s Business | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain in excess of insurance receivable | 4,500 | ||||||||||
Restructuring charges | 39,990 | $ 1,105 | $ 17,523 | ||||||||
Gain on sale of real estate properties | $ 7,400 | ||||||||||
Progressive Leasing | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Legal and Regulatory Expense | $ 179,300 |
Compensation Arrangements - Def
Compensation Arrangements - Deferred Compensation (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Deferred compensation plan liability | $ 11,200,000 | $ 10,400,000 | ||
Cash surrender value of the policies | 14,400,000 | 13,500,000 | ||
Gain on cash surrender value | (2,100,000) | 1,200,000 | $ (1,500,000) | |
Benefits paid | $ 3,000,000 | 2,700,000 | 2,300,000 | |
Employer matching contribution, maximum (percentage) | 100.00% | |||
Compensation expense related to 401(k) savings plan | $ 7,400,000 | $ 6,900,000 | $ 5,700,000 | |
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% | |||
Employee | Nonqualified Plan | ||||
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 | |||
Employee | Unfunded Plan | Nonqualified Plan | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Maximum annual contributions per employee | $ 11,000 | |||
Compensation expense related to 401(k) savings plan | $ 400,000 | |||
Employee | First contribution | Nonqualified Plan | ||||
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% | |||
Employee | Second contribution | Nonqualified Plan | ||||
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% | |||
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% |
Compensation Arrangements - 401
Compensation Arrangements - 401(k) Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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% | ||
Employer 401 (k) matching contribution to employee, 50% Maximum | 50.00% | ||
Initial employer 401(k) matching contribution to employee (percentage) | 4.00% | ||
Compensation expense related to 401(k) savings plan | $ 7.4 | $ 6.9 | $ 5.7 |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial employer 401(k) matching contribution to employee (percentage) | 3.00% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial employer 401(k) matching contribution to employee (percentage) | 2.00% |
Uncategorized Items - a10k4q201
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,729,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,729,000) |