XML 39 R26.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2018
Segment Information [Abstract] |
Segment Information [Text Block] | 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 (including tablets), and furniture (including accessories), and our Core U.S., Mexico and franchising segments also offer smartphones. 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 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 44 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 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, 2018, 2017 and 2016 is as follows:
| Year Ended December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Revenues |  |  |  |  |
Core U.S. | $ | 1,855,712 |  |  | $ | 1,835,422 |  |  | $ | 2,069,725 |
Acceptance Now | 722,562 |  |  | 797,987 |  |  | 817,814 |
Mexico | 49,613 |  |  | 47,005 |  |  | 50,927 |
Franchising | 32,578 |  |  | 22,126 |  |  | 24,786 |
Total revenues | $ | 2,660,465 |  |  | $ | 2,702,540 |  |  | $ | 2,963,252 |
| Year Ended December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Gross profit |  |  |  |  |
Core U.S. | $ | 1,299,809 |  |  | $ | 1,276,212 |  |  | $ | 1,467,679 |
Acceptance Now | 339,616 |  |  | 400,002 |  |  | 422,381 |
Mexico | 34,364 |  |  | 32,592 |  |  | 35,549 |
Franchising | 14,379 |  |  | 9,736 |  |  | 9,440 |
Total gross profit | $ | 1,688,168 |  |  | $ | 1,718,542 |  |  | $ | 1,935,049 |
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 twelve months ended December 31, 2018, book value adjustments on intercompany rental merchandise transfers were $12.0 million, resulting in a corresponding increase in gross profit for the Core U.S. and decrease in gross profit for Acceptance Now.
| Year Ended December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Operating profit (loss) |  |  |  |  |
Core U.S. | $ | 147,787 |  |  | $ | 86,196 |  |  | $ | (1,020 | )
Acceptance Now | 93,951 |  |  | 48,618 |  |  | 105,925 |
Mexico | 2,605 |  |  | (260 | ) |  | (2,449 | )
Franchising | 4,385 |  |  | 5,081 |  |  | 5,650 |
Total segments | 248,728 |  |  | 139,635 |  |  | 108,106 |
Corporate | (192,591 | ) |  | (202,694 | ) |  | (174,702 | )
Total operating profit (loss) | $ | 56,137 |  |  | $ | (63,059 | ) |  | $ | (66,596 | )
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 twelve months ended December 31, 2018, book value adjustments for inventory charge-offs related to intercompany rental merchandise transfers were $2.2 million, resulting in a corresponding increase in operating profit for the Core U.S. and decrease in operating profit for Acceptance Now.
| Year Ended December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Depreciation, amortization and write-down of intangibles |  |  |  |  |
Core U.S.(1) | $ | 25,566 |  |  | $ | 31,070 |  |  | $ | 39,734 |
Acceptance Now(2) | 1,677 |  |  | 2,498 |  |  | 3,309 |
Mexico | 1,006 |  |  | 1,973 |  |  | 3,179 |
Franchising | 172 |  |  | 177 |  |  | 177 |
Total segments | 28,421 |  |  | 35,718 |  |  | 46,399 |
Corporate | 40,525 |  |  | 38,921 |  |  | 34,057 |
Total depreciation, amortization and write-down of intangibles | $ | 68,946 |  |  | $ | 74,639 |  |  | $ | 80,456 |
(1) We recorded a goodwill impairment charge of $151.3 million in the Core U.S. segment during the fourth quarter of 2016, not included in the table above. (2) 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 Consolidated Statement of Operations.
| Year Ended December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Capital expenditures |  |  |  |  |
Core U.S. | $ | 17,173 |  |  | $ | 26,506 |  |  | $ | 20,802 |
Acceptance Now | 203 |  |  | 2,723 |  |  | 2,330 |
Mexico | 295 |  |  | 124 |  |  | 283 |
Total segments | 17,671 |  |  | 29,353 |  |  | 23,415 |
Corporate | 10,291 |  |  | 36,107 |  |  | 37,728 |
Total capital expenditures | $ | 27,962 |  |  | $ | 65,460 |  |  | $ | 61,143 |
| December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
On rent rental merchandise, net |  |  |  |  |
Core U.S. | $ | 424,829 |  |  | $ | 408,993 |  |  | $ | 426,845 |
Acceptance Now | 242,978 |  |  | 278,443 |  |  | 354,486 |
Mexico | 16,001 |  |  | 14,367 |  |  | 13,787 |
Total on rent rental merchandise, net | $ | 683,808 |  |  | $ | 701,803 |  |  | $ | 795,118 |
| December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Held for rent rental merchandise, net |  |  |  |  |
Core U.S. | $ | 117,294 |  |  | $ | 156,039 |  |  | $ | 192,718 |
Acceptance Now | 1,207 |  |  | 4,940 |  |  | 7,489 |
Mexico | 5,161 |  |  | 6,209 |  |  | 6,629 |
Total held for rent rental merchandise, net | $ | 123,662 |  |  | $ | 167,188 |  |  | $ | 206,836 |
| December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Assets by segment |  |  |  |  |
Core U.S. | $ | 714,914 |  |  | $ | 776,296 |  |  | $ | 860,717 |
Acceptance Now | 312,151 |  |  | 350,970 |  |  | 432,383 |
Mexico | 29,321 |  |  | 33,529 |  |  | 31,415 |
Franchising | 4,287 |  |  | 3,802 |  |  | 2,197 |
Total segments | 1,060,673 |  |  | 1,164,597 |  |  | 1,326,712 |
Corporate | 336,244 |  |  | 256,184 |  |  | 276,029 |
Total assets | $ | 1,396,917 |  |  | $ | 1,420,781 |  |  | $ | 1,602,741 |
| December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Assets by country |  |  |  |  |
United States | $ | 1,366,405 |  |  | $ | 1,383,004 |  |  | $ | 1,567,933 |
Mexico | 29,321 |  |  | 33,529 |  |  | 31,415 |
Canada | 1,191 |  |  | 4,248 |  |  | 3,393 |
Total assets | $ | 1,396,917 |  |  | $ | 1,420,781 |  |  | $ | 1,602,741 |
| Year Ended December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Rentals and fees by inventory category |  |  |  |  |
Furniture and accessories | $ | 962,241 |  |  | $ | 921,159 |  |  | $ | 927,537 |
Consumer electronics | 410,184 |  |  | 459,942 |  |  | 553,976 |
Appliances | 344,548 |  |  | 351,893 |  |  | 391,539 |
Computers | 120,756 |  |  | 124,158 |  |  | 148,889 |
Smartphones | 62,592 |  |  | 57,927 |  |  | 93,449 |
Other products and services | 344,539 |  |  | 352,662 |  |  | 384,663 |
Total rentals and fees | $ | 2,244,860 |  |  | $ | 2,267,741 |  |  | $ | 2,500,053 |
| Year Ended December 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Revenue by country |  |  |  |  |
United States | $ | 2,610,432 |  |  | $ | 2,654,819 |  |  | $ | 2,911,613 |
Mexico | 49,612 |  |  | 47,005 |  |  | 50,927 |
Canada | 421 |  |  | 716 |  |  | 712 |
Total revenues | $ | 2,660,465 |  |  | $ | 2,702,540 |  |  | $ | 2,963,252 |

X
- Definition Segment Information [Abstract] + References No definition available. + Details
Name: | rcii_SegmentInformationAbstract
Namespace Prefix: | rcii_
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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration