XML 74 R27.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2019
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 certain basic product categories: furniture, consumer electronics, appliances, computers, and accessories. Smartphones are also offered in our company owned stores and franchise locations. In addition, in the Rent-A-Center business segment, we have recently expanded into other product categories including, tools, tires, jewelry and other accessories. We report financial operating performance under four operating segments. To better reflect the Company's current strategic focus, our retail partner business operations are now reported as the Preferred Lease segment (formerly Acceptance Now), which includes our virtual, staffed and hybrid business models; and our Rent-A-Center Business segment (formerly the Core U.S.) segment, which operates our company-owned stores and e-commerce platform through rentacenter.com. In addition we report operating results for our Mexico and Franchising segments. Reportable segments and their respective operations are defined as follows. Our Rent-A-Center Business segment primarily operates lease-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 Preferred Lease segment, which operates in the United States and Puerto Rico, and includes the operations of the recently acquired Merchants Preferred, generally offers the lease-to-own transactions to consumers who do not qualify for financing from the traditional retailer. Our Preferred Lease operating model is highly agile and dynamic because we can open and close locations quickly and efficiently. Generally, our Preferred Lease staffed locations consist of an area with a computer, desk and chairs. We occupy the space without charge by agreement with each retailer. In our virtual locations, transactions are initiated through an electronic portal accessible by retail partners on their store computers. Accordingly, capital expenditures with respect to new Preferred Lease locations are minimal. The transaction offered at our Preferred Lease locations (excluding virtual) is generally similar to that of the Rent-A-Center Business segment; however, we pay the retail price for merchandise purchased from our retail partners and subsequently leased to the customer. In addition, the majority of the customers in this segment enter into monthly rather than weekly agreements. Under the virtual business model, revenues are earned prior to the renal payment due date. Therefore, revenue is accrued prior to receipt of the rental payment, net of estimated returns and uncollectible renewal payments. Segment assets include cash, rental merchandise, property assets, goodwill and other intangible assets. Our Mexico segment currently consists of our company-owned lease-to-own stores in Mexico. The nature of this segment's operations and assets are the same as our Rent-A-Center Business 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 lease-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, trade receivables, property assets and intangible assets. Segment information as of and for the years ended December 31, 2019, 2018 and 2017 is as follows:
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Revenues |  |  |  |  |
Rent-A-Center Business | $ | 1,800,486 |  |  | $ | 1,855,712 |  |  | $ | 1,835,422 |
Preferred Lease | 749,260 |  |  | 722,562 |  |  | 797,987 |
Mexico | 53,960 |  |  | 49,613 |  |  | 47,005 |
Franchising | 66,146 |  |  | 32,578 |  |  | 22,126 |
Total revenues | $ | 2,669,852 |  |  | $ | 2,660,465 |  |  | $ | 2,702,540 |
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Gross profit |  |  |  |  |
Rent-A-Center Business | $ | 1,255,153 |  |  | $ | 1,299,809 |  |  | $ | 1,276,212 |
Preferred Lease | 333,798 |  |  | 339,616 |  |  | 400,002 |
Mexico | 37,488 |  |  | 34,364 |  |  | 32,592 |
Franchising | 17,632 |  |  | 14,379 |  |  | 9,736 |
Total gross profit | $ | 1,644,071 |  |  | $ | 1,688,168 |  |  | $ | 1,718,542 |
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Operating profit (loss) |  |  |  |  |
Rent-A-Center Business | $ | 235,964 |  |  | $ | 147,787 |  |  | $ | 86,196 |
Preferred Lease | 83,066 |  |  | 93,951 |  |  | 48,618 |
Mexico | 5,357 |  |  | 2,605 |  |  | (260 | )
Franchising | 7,205 |  |  | 4,385 |  |  | 5,081 |
Total segments | 331,592 |  |  | 248,728 |  |  | 139,635 |
Corporate | (77,733 | ) |  | (192,591 | ) |  | (202,694 | )
Total operating profit (loss) | $ | 253,859 |  |  | $ | 56,137 |  |  | $ | (63,059 | )
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Depreciation and amortization |  |  |  |  |
Rent-A-Center Business | $ | 20,822 |  |  | $ | 25,566 |  |  | $ | 31,070 |
Preferred Lease | 1,533 |  |  | 1,677 |  |  | 2,498 |
Mexico | 401 |  |  | 1,006 |  |  | 1,973 |
Franchising | 45 |  |  | 172 |  |  | 177 |
Total segments | 22,801 |  |  | 28,421 |  |  | 35,718 |
Corporate | 38,303 |  |  | 40,525 |  |  | 38,921 |
Total depreciation and amortization | $ | 61,104 |  |  | $ | 68,946 |  |  | $ | 74,639 |
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Capital expenditures |  |  |  |  |
Rent-A-Center Business | $ | 10,255 |  |  | $ | 17,173 |  |  | $ | 26,506 |
Preferred Lease | 141 |  |  | 203 |  |  | 2,723 |
Mexico | 172 |  |  | 295 |  |  | 124 |
Total segments | 10,568 |  |  | 17,671 |  |  | 29,353 |
Corporate | 10,589 |  |  | 10,291 |  |  | 36,107 |
Total capital expenditures | $ | 21,157 |  |  | $ | 27,962 |  |  | $ | 65,460 |
| December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
On rent rental merchandise, net |  |  |  |  |
Rent-A-Center Business | $ | 411,482 |  |  | $ | 424,829 |  |  | $ | 408,993 |
Preferred Lease | 268,845 |  |  | 242,978 |  |  | 278,443 |
Mexico | 16,943 |  |  | 16,001 |  |  | 14,367 |
Total on rent rental merchandise, net | $ | 697,270 |  |  | $ | 683,808 |  |  | $ | 701,803 |
| December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Held for rent rental merchandise, net |  |  |  |  |
Rent-A-Center Business | $ | 131,086 |  |  | $ | 117,294 |  |  | $ | 156,039 |
Preferred Lease | 1,254 |  |  | 1,207 |  |  | 4,940 |
Mexico | 6,078 |  |  | 5,161 |  |  | 6,209 |
Total held for rent rental merchandise, net | $ | 138,418 |  |  | $ | 123,662 |  |  | $ | 167,188 |
| December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Assets by segment |  |  |  |  |
Rent-A-Center Business | $ | 953,151 |  |  | $ | 714,914 |  |  | $ | 776,296 |
Preferred Lease | 357,859 |  |  | 312,151 |  |  | 350,970 |
Mexico | 33,707 |  |  | 29,321 |  |  | 33,529 |
Franchising | 11,095 |  |  | 4,287 |  |  | 3,802 |
Total segments | 1,355,812 |  |  | 1,060,673 |  |  | 1,164,597 |
Corporate | 226,986 |  |  | 336,244 |  |  | 256,184 |
Total assets | $ | 1,582,798 |  |  | $ | 1,396,917 |  |  | $ | 1,420,781 |
| December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Assets by country |  |  |  |  |
United States | $ | 1,547,895 |  |  | $ | 1,366,405 |  |  | $ | 1,383,004 |
Mexico | 33,707 |  |  | 29,321 |  |  | 33,529 |
Canada | 1,196 |  |  | 1,191 |  |  | 4,248 |
Total assets | $ | 1,582,798 |  |  | $ | 1,396,917 |  |  | $ | 1,420,781 |
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Rentals and fees by inventory category |  |  |  |  |
Furniture and accessories | $ | 982,644 |  |  | $ | 962,241 |  |  | $ | 921,159 |
Consumer electronics | 358,619 |  |  | 410,184 |  |  | 459,942 |
Appliances | 346,668 |  |  | 344,548 |  |  | 351,893 |
Computers | 103,171 |  |  | 120,756 |  |  | 124,158 |
Smartphones | 62,948 |  |  | 62,592 |  |  | 57,927 |
Other products and services | 370,352 |  |  | 344,539 |  |  | 352,662 |
Total rentals and fees | $ | 2,224,402 |  |  | $ | 2,244,860 |  |  | $ | 2,267,741 |
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Revenue by country |  |  |  |  |
United States | $ | 2,615,892 |  |  | $ | 2,610,432 |  |  | $ | 2,654,819 |
Mexico | 53,960 |  |  | 49,612 |  |  | 47,005 |
Canada | — |  |  | 421 |  |  | 716 |
Total revenues | $ | 2,669,852 |  |  | $ | 2,660,465 |  |  | $ | 2,702,540 |

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://fasb.org/us-gaap/role/ref/legacyRef -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