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Discontinued Operations | 12 Months Ended
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Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | DISCONTINUED OPERATIONS Separation and Distribution of the Aaron’s Business Segment On November 30, 2020, PROG Holdings completed the separation of its Aaron's Business segment from its Progressive Leasing and Vive segments. See Note 1 to these consolidated financial statements for further details. Prior to the separation and distribution transaction, the results of The Aaron's Company were reported within the Company’s Aaron’s Business segment. All direct revenues and expenses of the Aaron's Business operations have been classified within discontinued operations, net of income tax, within our consolidated statements of earnings for all periods through the separation and distribution date of November 30, 2020. Corporate overhead costs previously reported as expenses of the Aaron’s Business segment did not qualify for classification within discontinued operations and have been classified as expenses within continuing operations for all periods presented through the separation and distribution date of November 30, 2020. Results from continuing operations during the year ended December 31, 2020 include $18.0 million of pre-tax stock-based compensation expense associated with the modification of outstanding equity awards and executive retirement charges related to the separation and distribution transaction, which are classified as separation related charges within our consolidated statements of earnings. An additional $36.5 million of pre-tax separation and distribution transaction expenses are recognized within discontinued operations during the year ended December 31, 2020. In connection with the completion of the separation and distribution transaction, the Company repaid the remaining $285.0 million of outstanding borrowings under its previous revolving credit and term loan agreement and senior unsecured notes. The Company incurred a pre-tax loss on extinguishment of $4.1 million in connection with the repayment of the outstanding borrowings, which is classified within discontinued operations in the consolidated statements of earnings. As repayment of the prior revolving credit and term loan borrowings and senior unsecured notes was required under the terms of the loan agreements in the event of a fundamental change to the Company and the legal obligor of the debt was a legal entity of The Aaron's Company, we have classified the loss on extinguishment and the related historical interest expense of $9.9 million, $17.0 million, and $16.4 million during the years ended December 31, 2020, 2019 and 2018, respectively within discontinued operations in the consolidated statements of earnings. The corresponding debt balance of $341.0 million outstanding as of December 31, 2019 has been classified within liabilities of discontinued operations within the consolidated balance sheet. In order to facilitate an effective separation and distribution, the Company entered into several agreements with The Aaron's Company, which governs the nature of the relationship between and responsibilities of the two companies following the separation. These agreements include a Separation Agreement, a Transition Services Agreement, an Employee Matters Agreement, a Tax Matters Agreement, and an Assignment Agreement. Under the Transition Services Agreement, PROG Holdings and The Aaron's Company agreed to provide each other with certain transitional services including, but not limited to, employee benefits administration, information technology, accounting, tax, internal audit, and finance services for transitional periods that generally do not exceed twelve months. Payments and expense reimbursements for transition services were not material during the year ended December 31, 2020 and are not expected to be material in future periods. Summarized Historical Financial Information of Discontinued Operations The following table summarizes the major classes of line items constituting (loss) earnings of The Aaron's Company, which are included within the (loss) income from discontinued operations, net of income tax, in the consolidated statements of earnings and the operating and investing cash flows of the discontinued operations.
|  | 11 Months Ended November 30, |  | Year Ended December 31,
(In Thousands) |  | 2020 |  | 2019 |  | 2018
Total Revenues |  | $ | 1,591,217 |  |  | $ | 1,784,477 |  |  | $ | 1,792,624 |
Operating (Loss) Profit |  | (381,244) |  |  | 78,261 |  |  | 132,810 |
(Loss) Earnings before Income Taxes from Discontinued Operations 1 |  | (393,415) |  |  | 65,175 |  |  | 95,405 |
Income Tax (Benefit) Expense from Discontinued Operations |  | (98,323) |  |  | 9,088 |  |  | 24,498 |
(Loss) Earnings from Discontinued Operations, Net of Income Tax |  | $ | (295,092) |  |  | $ | 56,087 |  |  | $ | 70,907 |
Cash Flows: |  |  |  |  |  |
Cash Provided by Operating Activities from Discontinued Operations |  | $ | 193,319 |  |  | $ | 172,314 |  |  | $ | 199,539 |
Cash Used in Investing Activities from Discontinued Operations |  | $ | (64,508) |  |  | $ | (76,187) |  |  | $ | (246,002) |
1(Loss) Earnings before Income Taxes from Discontinued Operations during the year ended December 31, 2020 reflects a $446.9 million goodwill impairment loss related to the Aaron's Business segment, $36.5 million of third-party transaction costs related to the separation and distribution transaction, $14.7 million related to a sales and marketing early termination fee, and a $4.1 million loss on debt extinguishment. The following table summarizes the assets and liabilities of discontinued operations at December 31, 2019:
(In Thousands) |  | December 31, 2019
ASSETS: |  |
Cash and Cash Equivalents |  | $ | — |
Accounts Receivable, Net |  | 37,079 |
Lease Merchandise, Net |  | 781,598 |
Property, Plant and Equipment, Net |  | 207,301 |
Operating Lease Right-of-Use Assets |  | 304,932 |
Goodwill |  | 447,780 |
Other Intangibles, Net |  | 14,234 |
Income Tax Receivable |  | 1,083 |
Prepaid Expenses and Other Assets |  | 86,815 |
Total Assets of Discontinued Operations |  | $ | 1,880,822 |
LIABILITIES: |  |
Accounts Payable and Accrued Expenses |  | $ | 214,194 |
Deferred Income Tax Liability |  | 210,103 |
Customer Deposits and Advance Payments |  | 47,692 |
Operating Lease Liabilities |  | 335,482 |
Debt |  | 341,030 |
Total Liabilities of Discontinued Operations |  | $ | 1,148,501 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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