Business and Summary of Significant Accounting Policies (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Accounting Policies [Abstract] |
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| Schedules of Company Operated Store Activity |
The following table presents active doors for Progressive Leasing: | | | | | | | | | | For the Year Ended December 31 (Unaudited) | 2017 | | 2016 | | 2015 | Progressive Leasing Active Doors1 | 26,861 |
| | 21,840 |
| | 16,947 |
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1 An active door is a retail store location at which at least one virtual lease-to-own transaction has been completed during the trailing twelve month period. The following table presents store count by ownership type for the Aaron’s Business operations: | | | | | | | | | | Stores at December 31 (Unaudited) | 2017 |
| 2016 |
| 2015 | Company-Operated Stores | | | | | | Aaron’s Branded stores | 1,175 |
| | 1,165 |
| | 1,223 |
| HomeSmart | — |
| | — |
| | 82 |
| Total Company-Operated Stores | 1,175 |
| | 1,165 |
| | 1,305 |
| Franchised Stores1 | 551 |
| | 699 |
| | 734 |
| Systemwide Stores | 1,726 |
| | 1,864 |
| | 2,039 |
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1As of December 31, 2017, 2016 and 2015, the Company has awarded 580, 749 and 813 franchises, respectively. |
| Allowance for Lease Merchandise |
The following table shows the components of the allowance for lease merchandise write-offs: | | | | | | | | | | | | | | Year ended December 31, | (In Thousands) | 2017 | | 2016 | | 2015 | Beginning Balance | $ | 33,399 |
| | $ | 33,405 |
| | $ | 27,573 |
| Merchandise Written off, net of Recoveries | (143,230 | ) | | (134,110 | ) | | (130,548 | ) | Provision for Write-offs | 145,460 |
| | 134,104 |
| | 136,380 |
| Ending Balance | $ | 35,629 |
| | $ | 33,399 |
| | $ | 33,405 |
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| Calculation of Dilutive Stock Awards |
The following table shows the calculation of dilutive share-based awards: | | | | | | | | | | | Year Ended December 31, | (Shares In Thousands) | 2017 | | 2016 | | 2015 | Weighted Average Shares Outstanding | 70,837 |
| | 72,354 |
| | 72,568 |
| Dilutive Effect of Share-Based Awards | 1,284 |
| | 659 |
| | 475 |
| Weighted Average Shares Outstanding Assuming Dilution | 72,121 |
| | 73,013 |
| | 73,043 |
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| Accounts Receivable Net of Allowances |
Accounts receivable, net of allowances, consist of the following: | | | | | | | | | | December 31, | (In Thousands) | 2017 | | 2016 | Customers | $ | 48,661 |
| | $ | 36,227 |
| Corporate | 23,431 |
| | 26,375 |
| Franchisee | 27,795 |
| | 33,175 |
| | $ | 99,887 |
| | $ | 95,777 |
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The following is a summary of the Company’s loans receivable, net: | | | | | | | | | | December 31, | (In Thousands) | 2017 | | 2016 | Credit Card Loans1 | $ | 89,728 |
| | $ | 64,794 |
| Acquired Loans2 | 16,213 |
| | 33,840 |
| Loans Receivable, Gross | 105,941 |
| | 98,634 |
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| | | Allowance for Loan Losses | (11,454 | ) | | (6,624 | ) | Unamortized Fees | (8,375 | ) | | (7,206 | ) | Loans Receivable, Net of Allowances and Unamortized Fees | $ | 86,112 |
| | $ | 84,804 |
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1 "Credit Card Loans" are loans originated after the 2015 acquisition of DAMI. 2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of DAMI. |
| Allowance for Doubtful Accounts |
The following table shows the components of the accounts receivable allowance: | | | | | | | | | | | | | | Year Ended December 31, | (In Thousands) | 2017 | | 2016 | | 2015 | Beginning Balance | $ | 35,690 |
| | $ | 34,861 |
| | $ | 27,401 |
| Accounts Written Off, net of Recoveries | (192,133 | ) | | (167,094 | ) | | (155,651 | ) | Accounts Receivable Provision | 203,389 |
| | 167,923 |
| | 163,111 |
| Ending Balance | $ | 46,946 |
| | $ | 35,690 |
| | $ | 34,861 |
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The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the years ended December 31: | | | | | | | | | | | | | | Year Ended December 31, | (In Thousands) | 2017 | | 2016 | | 2015 | Bad Debt Expense | 170,574 |
| | 128,333 |
| | 122,184 |
| Provision for Returns and Uncollected Renewal Payments | 32,815 |
| | 39,590 |
| | 40,927 |
| Accounts Receivable Provision | $ | 203,389 |
| | $ | 167,923 |
| | $ | 163,111 |
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| Loan Portfolio Credit Quality Indicators |
Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2017 and 2016 by Fair Isaac and Company (FICO) score as determined at the time of loan origination: | | | | | | | | December 31, | FICO Score Category | 2017 | | 2016 | 600 or Less | 1.7 | % | | 1.8 | % | Between 600 and 700 | 76.5 | % | | 78.1 | % | 700 or Greater | 21.8 | % | | 20.1 | % |
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| Schedule of Prepaid Expenses and Other Assets |
Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: | | | | | | | | | | December 31, | (In Thousands) | 2017 | | 2016 | Prepaid Expenses | $ | 31,509 |
| | $ | 21,769 |
| Prepaid Insurance | 36,735 |
| | 53,716 |
| Assets Held for Sale | 10,118 |
| | 8,866 |
| Deferred Tax Asset | 11,589 |
| | 5,912 |
| Other Assets | 26,548 |
| | 18,881 |
| | $ | 116,499 |
| | $ | 109,144 |
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| Schedule of Accounts Payable and Accrued Expenses |
Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: | | | | | | | | | | December 31, | (In Thousands) | 2017 | | 2016 | Accounts Payable | $ | 80,821 |
| | $ | 71,941 |
| Accrued Insurance Costs | 41,680 |
| | 47,649 |
| Accrued Salaries and Benefits | 46,511 |
| | 41,612 |
| Accrued Real Estate and Sales Taxes | 31,054 |
| | 32,986 |
| Deferred Rent | 29,912 |
| | 31,859 |
| Other Accrued Expenses and Liabilities | 74,832 |
| | 71,719 |
| | $ | 304,810 |
| | $ | 297,766 |
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