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Segment Information
 12 Months Ended
Dec. 31, 2020
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 Rent-A-Center Business stores and franchise locations. In addition, in the Rent-A-Center Business segment, we have recently expanded into other product categories including tires, tools, handbags 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 Core U.S.), 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 2019 acquisition of 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 generally 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, 2020, 2019 and 2018 is as follows:
Year Ended December 31,
(In thousands)202020192018
Revenues
Rent-A-Center Business$1,852,641 $1,800,486 $1,855,712 
Preferred Lease810,151 749,260 722,562 
Mexico50,583 53,960 49,613 
Franchising100,816 66,146 32,578 
Total revenues$2,814,191 $2,669,852 $2,660,465 

Year Ended December 31,
(In thousands)202020192018
Gross profit
Rent-A-Center Business$1,294,695 $1,255,153 $1,299,809 
Preferred Lease321,110 333,798 339,616 
Mexico35,665 37,488 34,364 
Franchising20,682 17,632 14,379 
Total gross profit$1,672,152 $1,644,071 $1,688,168 

Year Ended December 31,
(In thousands)202020192018
Operating profit (loss)
Rent-A-Center Business$333,379 $235,964 $147,787 
Preferred Lease57,847 83,066 93,951 
Mexico5,798 5,357 2,605 
Franchising12,570 7,205 4,385 
Total segments409,594 331,592 248,728 
Corporate(172,258)(77,733)(192,591)
Total operating profit$237,336 $253,859 $56,137 
Year Ended December 31,
(In thousands)202020192018
Depreciation and amortization
Rent-A-Center Business$19,912 $20,822 $25,566 
Preferred Lease2,066 1,533 1,677 
Mexico413 401 1,006 
Franchising40 45 172 
Total segments22,431 22,801 28,421 
Corporate34,227 38,303 40,525 
Total depreciation and amortization$56,658 $61,104 $68,946 

Year Ended December 31,
(In thousands)202020192018
Capital expenditures
Rent-A-Center Business$14,869 $10,255 $17,173 
Preferred Lease161 141 203 
Mexico392 172 295 
Total segments15,422 10,568 17,671 
Corporate19,123 10,589 10,291 
Total capital expenditures$34,545 $21,157 $27,962 

December 31,
(In thousands)202020192018
On rent rental merchandise, net
Rent-A-Center Business$444,945 $411,482 $424,829 
Preferred Lease299,660 268,845 242,978 
Mexico18,281 16,943 16,001 
Total on rent rental merchandise, net$762,886 $697,270 $683,808 

December 31,
(In thousands)202020192018
Held for rent rental merchandise, net
Rent-A-Center Business$136,219 $131,086 $117,294 
Preferred Lease2,228 1,254 1,207 
Mexico7,819 6,078 5,161 
Total held for rent rental merchandise, net$146,266 $138,418 $123,662 
December 31,
(In thousands)202020192018
Assets by segment
Rent-A-Center Business$999,252 $953,151 $714,914 
Preferred Lease389,650 357,859 312,151 
Mexico42,278 33,707 29,321 
Franchising14,729 11,095 4,287 
Total segments1,445,909 1,355,812 1,060,673 
Corporate305,071 226,986 336,244 
Total assets$1,750,980 $1,582,798 $1,396,917 

December 31,
(In thousands)202020192018
Assets by country
United States$1,708,702 $1,547,895 $1,366,405 
Mexico42,278 33,707 29,321 
Canada— 1,196 1,191 
Total assets$1,750,980 $1,582,798 $1,396,917 

 Year Ended December 31,
(In thousands)202020192018
Rentals and fees by inventory category
Furniture and accessories$1,028,876 $982,644 $962,241 
Appliances358,931 346,668 344,548 
Consumer electronics322,261 358,619 410,184 
Computers119,015 103,171 120,756 
Smartphones59,205 62,948 62,592 
Other products and services374,803 370,352 344,539 
Total rentals and fees$2,263,091 $2,224,402 $2,244,860 

 Year Ended December 31,
(In thousands)202020192018
Revenue by country
United States$2,763,608 $2,615,892 $2,610,432 
Mexico50,583 53,960 49,612 
Canada— — 421 
Total revenues$2,814,191 $2,669,852 $2,660,465