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Segment Information | 6 Months Ended
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Jun. 30, 2014
Segment Information [Abstract] |
Segment Information | Segment Information. The operating segments reported below are the segments for which separate financial information is available and for which segment results are evaluated by the chief operating decision makers. Our operating segments are organized based on factors including, but not limited to, type of business transactions, geographic location and store ownership. All operating segments offer merchandise from four basic product categories: consumer electronics, appliances, computers, furniture and accessories. On January 1, 2014, the Company realigned its reporting structure to include its 18 Canadian stores in the Core U.S. segment, which were previously reported in the International segment. These stores now report into the Core U.S. segment, and the chief operating decision makers no longer analyze their operating results as a part of the International segment. The accompanying prior-year disclosures have been revised to reflect this change, and we now refer to the segment formerly reported as "International" as "Mexico" since only that country's results are reported therein. Reportable segments and their respective operations are defined as follows. Our Core U.S. segment primarily operates rent-to-own stores in the United States, Canada and Puerto Rico whose customers enter into weekly, semi-monthly or monthly rental purchase agreements, which renew automatically upon receipt of each payment. We retain the title to the merchandise during the term of the rental purchase agreement and ownership passes to the customer if the customer has continuously renewed the rental purchase agreement through the end of the term or exercises a specified early purchase option. This segment also includes the 45 stores operating in two states that utilize a retail model which generates installment credit sales through a retail sale transaction. Segment assets include cash, receivables, rental merchandise, property assets, goodwill and other intangible assets. Our Acceptance Now segment operates kiosks within various traditional retailers’ locations where we generally offer the rent-to-own transaction to consumers who do not qualify for financing from the traditional retailer. The transaction offered is generally similar to that of the Core U.S. segment; however, the customers in this segment enter into monthly rather than weekly agreements. Segment assets include cash, rental merchandise, property assets, goodwill and other intangible assets. Our Mexico segment consists of our company-owned rent-to-own stores in Mexico, and the nature of this segment’s operations and assets are the same as our Core U.S. segment. The stores in our Franchising segment use Rent-A-Center’s, ColorTyme’s or RimTyme’s trade names, service marks, trademarks and logos, and operate under distinctive operating procedures and standards. Franchising’s primary source of revenue is the sale of rental merchandise to its franchisees who, in turn, offer the merchandise to the general public for rent or purchase under a rent-to-own program. As franchisor, Franchising receives royalties of 2.0% to 6.0% of the franchisees’ monthly gross revenue and initial fees for new locations. Segment assets include cash, receivables and property assets. We incur costs at our corporate headquarters that benefit our Core U.S., Acceptance Now and Mexico operating segments. Accordingly, we allocate such costs among these segments based on segment revenue to determine segment operating profit. Likewise, certain corporate assets used to support these operating segments, including the land and building in which the corporate headquarters are located and related property assets, cash and prepaid expenses are also allocated to these operating segments based on segment revenue. Because our Franchising segment has maintained a separate, independent corporate office, no additional corporate costs or assets have been allocated to that segment. Our Franchising segment uses trade names owned by entities that are reported in the Core U.S. segment, and pays a royalty for the use of these trade names. These royalties have been eliminated in consolidation. Segment information for the three and six months ended June 30, 2014 and 2013 is as follows (in thousands):
| Three Months Ended June 30, 2014
| Core U.S. |  | Acceptance Now |  | Mexico |  | Franchising |  | Total
Revenue | $ | 592,040 |  |  | $ | 155,797 |  |  | $ | 17,695 |  |  | $ | 7,685 |  |  | $ | 773,217 |
Gross profit | 431,920 |  |  | 89,876 |  |  | 12,753 |  |  | 1,948 |  |  | 536,497 |
Operating profit (loss) | 28,161 |  |  | 18,399 |  |  | (6,818 | ) |  | 417 |  |  | 40,159 |
Depreciation of property assets | 17,884 |  |  | 1,426 |  |  | 1,788 |  |  | 51 |  |  | 21,149 |
Amortization and write-down of intangibles | 1,903 |  |  | 142 |  |  | — |  |  | — |  |  | 2,045 |
Capital expenditures | 13,685 |  |  | 3,073 |  |  | 1,584 |  |  | — |  |  | 18,342 |
| Three Months Ended June 30, 2013
| Core U.S. |  | Acceptance Now |  | Mexico |  | Franchising |  | Total
Revenue | $ | 622,469 |  |  | $ | 117,493 |  |  | $ | 11,313 |  |  | $ | 9,236 |  |  | $ | 760,511 |
Gross profit | 451,920 |  |  | 68,770 |  |  | 8,208 |  |  | 1,722 |  |  | 530,620 |
Operating profit (loss) | 65,656 |  |  | 17,394 |  |  | (6,362 | ) |  | 542 |  |  | 77,230 |
Depreciation of property assets | 16,203 |  |  | 1,162 |  |  | 1,375 |  |  | 20 |  |  | 18,760 |
Amortization and write-down of intangibles | 1,023 |  |  | 142 |  |  | — |  |  | — |  |  | 1,165 |
Capital expenditures | 20,191 |  |  | 2,262 |  |  | 2,731 |  |  | — |  |  | 25,184 |
| Six Months Ended June 30, 2014
| Core U.S. |  | Acceptance Now |  | Mexico |  | Franchising |  | Total
Revenue | $ | 1,226,803 |  |  | $ | 330,004 |  |  | $ | 33,568 |  |  | $ | 16,588 |  |  | $ | 1,606,963 |
Gross profit | 888,509 |  |  | 182,783 |  |  | 24,231 |  |  | 3,851 |  |  | 1,099,374 |
Operating profit (loss) | 72,018 |  |  | 39,976 |  |  | (13,095 | ) |  | 1,023 |  |  | 99,922 |
Depreciation of property assets | 33,921 |  |  | 2,850 |  |  | 3,431 |  |  | 86 |  |  | 40,288 |
Amortization and write-down of intangibles | 2,508 |  |  | 284 |  |  | — |  |  | — |  |  | 2,792 |
Capital expenditures | 31,721 |  |  | 5,857 |  |  | 3,872 |  |  | — |  |  | 41,450 |
| Six Months Ended June 30, 2013
| Core U.S. |  | Acceptance Now |  | Mexico |  | Franchising |  | Total
Revenue | $ | 1,294,877 |  |  | $ | 244,656 |  |  | $ | 20,806 |  |  | $ | 19,453 |  |  | $ | 1,579,792 |
Gross profit | 926,992 |  |  | 135,877 |  |  | 14,906 |  |  | 3,523 |  |  | 1,081,298 |
Operating profit (loss) | 132,734 |  |  | 33,044 |  |  | (11,009 | ) |  | 1,245 |  |  | 156,014 |
Depreciation of property assets | 32,377 |  |  | 2,251 |  |  | 2,565 |  |  | 40 |  |  | 37,233 |
Amortization and write-down of intangibles | 1,770 |  |  | 285 |  |  | — |  |  | — |  |  | 2,055 |
Capital expenditures | 35,243 |  |  | 4,202 |  |  | 5,376 |  |  | — |  |  | 44,821 |
Segment information – selected balance sheet data (in thousands): |  |  |  |  |  |
| June 30, 2014
| Core U.S. |  | Acceptance Now |  | Mexico |  | Franchising |  | Total
Rental merchandise, net |  |  |  |  |  |  |  |  |
On rent | $ | 538,222 |  |  | $ | 296,133 |  |  | $ | 21,466 |  |  | $ | — |  |  | $ | 855,821 |
Held for rent | 227,118 |  |  | 8,139 |  |  | 12,118 |  |  | — |  |  | 247,375 |
Total assets | 2,545,380 |  |  | 396,158 |  |  | 74,361 |  |  | 1,861 |  |  | 3,017,760 |
| December 31, 2013
| Core U.S. |  | Acceptance Now |  | Mexico |  | Franchising |  | Total
Rental merchandise, net |  |  |  |  |  |  |  |  |
On rent | $ | 612,517 |  |  | $ | 284,421 |  |  | $ | 17,680 |  |  | $ | — |  |  | $ | 914,618 |
Held for rent | 195,654 |  |  | 3,837 |  |  | 10,959 |  |  | — |  |  | 210,450 |
Total assets | 2,569,057 |  |  | 375,920 |  |  | 71,888 |  |  | 1,688 |  |  | 3,018,553 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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