XML 87 R27.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2014
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | Note S — 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. From January 1, 2012, when we began to provide operating results by segment, through December 31, 2013, management reported four segments including Core U.S., Acceptance Now, International and Franchising. Costs incurred at our corporate headquarters that benefit our Core U.S., Acceptance Now and Mexico segments were allocated to those segments based on segment revenue to determine segment operating profit. Because our Franchising segment maintains a separate, independent corporate office, no additional corporate costs or assets were allocated to that segment. On January 1, 2014, the Company realigned its reporting structure to include its Canadian stores in the Core U.S. segment, which were previously reported in the International segment. The accompanying prior year amounts and store counts 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. During the fourth quarter of 2014, management reevaluated its operating segments and segment reporting, and determined that the chief operating decision makers relied more heavily on operating profit before corporate allocations when evaluating segment performance than operating profit after corporate allocations. Therefore, we are no longer allocating corporate costs and assets to the segments. In the following tables, segment operating profit is presented before corporate allocations. Corporate costs, which are primarily costs incurred at our U.S. corporate headquarters, are reported separately to reconcile to operating profit reported in the consolidated statements of operations. The costs incurred at our Mexico field support center is reported in the Mexico segment because our Executive Vice President of Mexico Operations is responsible for Mexico's operations and its field support center. The Franchising segment's corporate costs are reported in the Franchising segment because the President of RAC Franchising International is responsible for that segment's operations and corporate functions. Certain corporate assets used to support our Core U.S., Acceptance Now and Mexico segments, including the land and building in which the corporate headquarters are located and related property assets, cash and prepaid expenses were also allocated historically to these operating segments based on segment revenue. In the following tables, corporate assets are reported separately to reconcile to the consolidated balance sheets. Management believes that these changes provide investors with a more precise view of field operations and corporate costs that accurately aligns with management's view of the business. 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 majority of 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 currently consists of our company-owned rent-to-own stores in Mexico. 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, franchise fee receivables, property assets and intangible assets. Segment information as of and for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands):
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Revenues |  |  |  |  |  |
Core U.S. |  | $ | 2,414,659 |  |  | $ | 2,527,660 |  |  | $ | 2,681,844 |
Acceptance Now |  | 644,853 |  |  | 489,425 |  |  | 333,118 |
Mexico |  | 72,202 |  |  | 47,171 |  |  | 22,502 |
Franchising |  | 26,082 |  |  | 29,762 |  |  | 38,207 |
Total revenues |  | $ | 3,157,796 |  |  | $ | 3,094,018 |  |  | $ | 3,075,671 |
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Gross profit |  |  |  |  |  |
Core U.S. |  | $ | 1,753,269 |  |  | $ | 1,822,243 |  |  | $ | 1,919,230 |
Acceptance Now |  | 372,012 |  |  | 290,647 |  |  | 196,050 |
Mexico |  | 51,070 |  |  | 33,945 |  |  | 15,291 |
Franchising |  | 8,012 |  |  | 6,658 |  |  | 6,893 |
Total gross profit |  | $ | 2,184,363 |  |  | $ | 2,153,493 |  |  | $ | 2,137,464 |
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Operating profit (loss) |  |  |  |  |  |
Core U.S. |  | $ | 264,967 |  |  | $ | 311,301 |  |  | $ | 415,744 |
Acceptance Now |  | 112,918 |  |  | 89,075 |  |  | 41,344 |
Mexico |  | (21,961 | ) |  | (22,828 | ) |  | (23,337 | )
Franchising |  | 3,295 |  |  | 1,853 |  |  | 2,326 |
Total segment operating profit |  | 359,219 |  |  | 379,401 |  |  | 436,077 |
Corporate |  | (165,757 | ) |  | (132,392 | ) |  | (123,048 | )
Total operating profit |  | $ | 193,462 |  |  | $ | 247,009 |  |  | $ | 313,029 |
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Depreciation, amortization and write-down of intangibles |  |  |  |  |  |
Core U.S. |  | $ | 61,555 |  |  | $ | 64,042 |  |  | $ | 55,868 |
Acceptance Now |  | 2,917 |  |  | 2,287 |  |  | 4,000 |
Mexico |  | 6,683 |  |  | 5,450 |  |  | 4,164 |
Franchising |  | 184 |  |  | 79 |  |  | 89 |
Total segments |  | 71,339 |  |  | 71,858 |  |  | 64,121 |
Corporate |  | 16,060 |  |  | 16,122 |  |  | 15,128 |
Total depreciation, amortization and write-down of intangibles |  | $ | 87,399 |  |  | $ | 87,980 |  |  | $ | 79,249 |
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Capital expenditures |  |  |  |  |  |
Core U.S. |  | $ | 31,228 |  |  | $ | 44,715 |  |  | $ | 61,137 |
Acceptance Now |  | 3,833 |  |  | 3,047 |  |  | 2,044 |
Mexico |  | 4,164 |  |  | 11,537 |  |  | 10,670 |
Franchising |  | — |  |  | — |  |  | — |
Total segments |  | 39,225 |  |  | 59,299 |  |  | 73,851 |
Corporate |  | 44,560 |  |  | 49,068 |  |  | 28,602 |
Total capital expenditures |  | $ | 83,785 |  |  | $ | 108,367 |  |  | $ | 102,453 |
|  | December 31,
|  | 2014 |  | 2013 |  | 2012
On rent rental merchandise, net |  |  |  |  |  |
Core U.S. |  | $ | 593,945 |  |  | $ | 611,375 |  |  | $ | 589,811 |
Acceptance Now |  | 345,703 |  |  | 284,421 |  |  | 204,640 |
Mexico |  | 20,766 |  |  | 17,680 |  |  | 10,347 |
Total on rent rental merchandise, net |  | $ | 960,414 |  |  | $ | 913,476 |  |  | $ | 804,798 |
|  | December 31,
|  | 2014 |  | 2013 |  | 2012
Idle rental merchandise, net |  |  |  |  |  |
Core U.S. |  | $ | 264,211 |  |  | $ | 195,926 |  |  | $ | 193,251 |
Acceptance Now |  | 4,897 |  |  | 3,837 |  |  | 3,007 |
Mexico |  | 8,334 |  |  | 10,959 |  |  | 5,363 |
Total idle rental merchandise, net |  | $ | 277,442 |  |  | $ | 210,722 |  |  | $ | 201,621 |
|  | December 31,
|  | 2014 |  | 2013 |  | 2012
Assets by segment |  |  |  |  |  |
Core U.S. |  | $ | 2,519,770 |  |  | $ | 2,479,297 |  |  | $ | 2,428,209 |
Acceptance Now |  | 420,660 |  |  | 358,305 |  |  | 274,765 |
Mexico |  | 59,841 |  |  | 69,826 |  |  | 46,038 |
Franchising |  | 2,604 |  |  | 1,688 |  |  | 2,711 |
Total segments |  | 3,002,875 |  |  | 2,909,116 |  |  | 2,751,723 |
Corporate |  | 268,322 |  |  | 109,059 |  |  | 107,362 |
Total assets |  | $ | 3,271,197 |  |  | $ | 3,018,175 |  |  | $ | 2,859,085 |
|  | December 31,
|  | 2014 |  | 2013 |  | 2012
Assets by country |  |  |  |  |  |
United States |  | $ | 3,204,283 |  |  | $ | 2,940,980 |  |  | $ | 2,794,883 |
Mexico |  | 59,841 |  |  | 69,826 |  |  | 46,038 |
Canada |  | 7,073 |  |  | 7,369 |  |  | 18,164 |
Total assets |  | $ | 3,271,197 |  |  | $ | 3,018,175 |  |  | $ | 2,859,085 |
Approximately 87% of our total revenues are comprised of rental and fee revenues from the following product groups:
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
|  | (In thousands)
Furniture and accessories |  | $ | 938,065 |  |  | $ | 917,290 |  |  | $ | 861,939 |
Consumer electronics |  | 642,226 |  |  | 667,052 |  |  | 699,620 |
Appliances |  | 422,979 |  |  | 432,937 |  |  | 423,578 |
Computers |  | 375,340 |  |  | 347,783 |  |  | 358,551 |
Other products and services |  | 367,218 |  |  | 330,833 |  |  | 310,237 |
Total rentals and fees |  | $ | 2,745,828 |  |  | $ | 2,695,895 |  |  | $ | 2,653,925 |
Our revenues originate in the following countries:
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
|  | (In thousands)
United States |  | $ | 3,075,387 |  |  | $ | 3,035,558 |  |  | $ | 3,035,556 |
Mexico |  | 72,202 |  |  | 47,171 |  |  | 22,502 |
Canada |  | 10,207 |  |  | 11,289 |  |  | 17,613 |
Total revenues |  | $ | 3,157,796 |  |  | $ | 3,094,018 |  |  | $ | 3,075,671 |

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration