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Segment Information | 9 Months Ended
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Sep. 30, 2018
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. Our Core U.S. and Franchising segments also offer smartphones. Segment information for the three and nine months ended September 30, 2018 and 2017 is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Revenues |  |  |  |  |  |  |
Core U.S. | $ | 451,320 |  |  | $ | 442,763 |  |  | $ | 1,389,081 |  |  | $ | 1,390,687 |
Acceptance Now | 173,438 |  |  | 184,293 |  |  | 549,435 |  |  | 622,160 |
Mexico | 12,784 |  |  | 12,237 |  |  | 37,122 |  |  | 35,351 |
Franchising | 7,400 |  |  | 4,672 |  |  | 23,077 |  |  | 15,388 |
Total revenues | $ | 644,942 |  |  | $ | 643,965 |  |  | $ | 1,998,715 |  |  | $ | 2,063,586 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Gross profit |  |  |  |  |  |  |
Core U.S. | $ | 313,771 |  |  | $ | 309,779 |  |  | $ | 975,231 |  |  | $ | 965,739 |
Acceptance Now | 81,586 |  |  | 92,088 |  |  | 256,441 |  |  | 310,451 |
Mexico | 8,885 |  |  | 8,466 |  |  | 25,756 |  |  | 24,668 |
Franchising | 3,498 |  |  | 2,132 |  |  | 11,176 |  |  | 6,803 |
Total gross profit | $ | 407,740 |  |  | $ | 412,465 |  |  | $ | 1,268,604 |  |  | $ | 1,307,661 |
Beginning in 2018, we implemented an intercompany book value adjustment charge for all rental merchandise transfers from Acceptance Now locations to Core U.S. stores. For the three and nine months ended September 30, 2018, book value adjustments on intercompany rental merchandise transfers were $2.9 million and $9.3 million, respectively, resulting in a corresponding increase in gross profit for the Core U.S. and decrease in gross profit for Acceptance Now.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Operating profit (loss) |  |  |  |  |  |  |
Core U.S. | $ | 43,221 |  |  | $ | 23,859 |  |  | $ | 115,135 |  |  | $ | 79,241 |
Acceptance Now | 26,278 |  |  | 10,379 |  |  | 70,865 |  |  | 49,595 |
Mexico | 922 |  |  | (242 | ) |  | 2,306 |  |  | (122 | )
Franchising | 522 |  |  | 1,032 |  |  | 3,687 |  |  | 3,565 |
Total segments | 70,943 |  |  | 35,028 |  |  | 191,993 |  |  | 132,279 |
Corporate | (45,311 | ) |  | (43,473 | ) |  | (149,480 | ) |  | (140,445 | )
Total operating profit (loss) | $ | 25,632 |  |  | $ | (8,445 | ) |  | $ | 42,513 |  |  | $ | (8,166 | )
Beginning in 2018, we implemented an intercompany book value adjustment charge for all rental merchandise transfers from Acceptance Now locations to Core U.S. stores. For the three and nine months ended September 30, 2018, book value adjustments for inventory charge-offs related to intercompany rental merchandise transfers were $0.5 million and $1.7 million, respectively, resulting in a corresponding increase in operating profit for the Core U.S. and decrease in operating profit for Acceptance Now.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Depreciation, amortization and impairment of intangibles |  |  |  |  |  |  |
Core U.S. | $ | 6,216 |  |  | $ | 7,725 |  |  | $ | 19,482 |  |  | $ | 23,715 |
Acceptance Now | 421 |  |  | 568 |  |  | 1,288 |  |  | 1,983 |
Mexico | 222 |  |  | 496 |  |  | 839 |  |  | 1,549 |
Franchising | 45 |  |  | 45 |  |  | 133 |  |  | 133 |
Total segments | 6,904 |  |  | 8,834 |  |  | 21,742 |  |  | 27,380 |
Corporate | 10,042 |  |  | 9,845 |  |  | 30,532 |  |  | 28,548 |
Total depreciation, amortization and impairment of intangibles | $ | 16,946 |  |  | $ | 18,679 |  |  | $ | 52,274 |  |  | $ | 55,928 |
We recorded an impairment of intangibles of $3.9 million in the Acceptance Now segment during the first quarter of 2017 that is not included in the table above. The impairment charge was recorded to Other Charges in the Condensed Consolidated Statement of Operations.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Capital expenditures |  |  |  |  |  |  |
Core U.S. | $ | 3,586 |  |  | $ | 6,625 |  |  | $ | 12,801 |  |  | $ | 21,333 |
Acceptance Now | 76 |  |  | 430 |  |  | 156 |  |  | 1,525 |
Mexico | 113 |  |  | 56 |  |  | 151 |  |  | 103 |
Total segments | 3,775 |  |  | 7,111 |  |  | 13,108 |  |  | 22,961 |
Corporate | 3,021 |  |  | 6,258 |  |  | 9,383 |  |  | 30,567 |
Total capital expenditures | $ | 6,796 |  |  | $ | 13,369 |  |  | $ | 22,491 |  |  | $ | 53,528 |
(in thousands) | September 30, 2018 |  | December 31, 2017
On rent rental merchandise, net |  |  |
Core U.S. | $ | 378,221 |  |  | $ | 408,993 |
Acceptance Now | 241,044 |  |  | 278,443 |
Mexico | 15,653 |  |  | 14,367 |
Total on rent rental merchandise, net | $ | 634,918 |  |  | $ | 701,803 |
(in thousands) | September 30, 2018 |  | December 31, 2017
Held for rent rental merchandise, net |  |  |
Core U.S. | $ | 134,759 |  |  | $ | 156,039 |
Acceptance Now | 1,290 |  |  | 4,940 |
Mexico | 5,330 |  |  | 6,209 |
Total held for rent rental merchandise, net | $ | 141,379 |  |  | $ | 167,188 |
(in thousands) | September 30, 2018 |  | December 31, 2017
Assets by segment |  |  |
Core U.S. | $ | 709,074 |  |  | $ | 776,296 |
Acceptance Now | 306,553 |  |  | 350,970 |
Mexico | 30,747 |  |  | 33,529 |
Franchising | 3,899 |  |  | 3,802 |
Total segments | 1,050,273 |  |  | 1,164,597 |
Corporate | 301,820 |  |  | 256,184 |
Total assets | $ | 1,352,093 |  |  | $ | 1,420,781 |

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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