Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

Separation and Distribution of the Aaron’s Business Segment

As discussed in Note 1 above, on November 30, 2020, PROG Holdings completed the separation and distribution of its Aaron's Business segment, and the requirements for the presentation of Aaron's Business as a discontinued operation were met on that date. Accordingly, 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. The following table summarizes the major classes of line items constituting (loss) earnings of our Aaron's Business segment, which are included within the (loss) earnings 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
Revenues	$	1,591,217	$	1,784,477
Operating (Loss) Profit	(381,244)		78,261
(Loss) Earnings from Discontinued Operations Before Income Tax1	(393,415)		65,175
Income Tax (Benefit) Expense from Discontinued Operations	(98,323)		9,088
(Loss) Earnings from Discontinued Operations, Net of Income Tax	$	(295,092)	$	56,087

Cash Flows:
Cash Provided by Operating Activities - Discontinued Operations	$	193,319	$	172,314
Cash Used in Investing Activities - Discontinued Operations	$	(64,508)	$	(76,187)

1Loss from Discontinued Operations Before Income Tax 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.

In order to facilitate an effective separation and distribution, the Company entered into several agreements with The Aaron's Company, which govern the nature of the relationship between and responsibilities of the two companies following the separation. No changes were made to any of the agreements. Payments and expense reimbursements for transition services were not material during the years ended December 31, 2021 and 2020.