Basis and Summary of Significant Accounting Policies (Tables)
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6 Months Ended |
Jun. 30, 2019 |
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| Accounting Policies [Abstract] |
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| Schedule Of Company Operated Store Activity |
The following table presents store count by ownership type for the Aaron's Business operations: | | | | | | | Stores as of June 30 (Unaudited) | 2019 | | 2018 | Company-operated Aaron's Branded Stores | 1,171 |
| | 1,179 |
| Franchised Stores | 357 |
| | 530 |
| Systemwide Stores | 1,528 |
| | 1,709 |
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The following table presents invoice volume for Progressive Leasing: | | | | | | | | | For the Three Months Ended June 30 (Unaudited and In Thousands) | 2019 | | 2018 | Progressive Leasing Invoice Volume1 | $ | 403,410 |
| | $ | 335,088 |
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1 Invoice volume is defined as the retail price of lease merchandise acquired and then leased to customers during the period, net of returns.
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| Calculation of Dilutive Stock Awards |
The following table shows the calculation of dilutive share-based awards: | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | (Shares In Thousands) | 2019 | | 2018 | | 2019 | | 2018 | Weighted Average Shares Outstanding | 67,687 |
| | 69,645 |
| | 67,492 |
| | 69,875 |
| Dilutive Effect of Share-Based Awards | 1,106 |
| | 1,192 |
| | 1,292 |
| | 1,553 |
| Weighted Average Shares Outstanding Assuming Dilution | 68,793 |
| | 70,837 |
| | 68,784 |
| | 71,428 |
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| Accounts Receivable Net of Allowances |
Accounts receivable, net of allowances, consist of the following: | | | | | | | | | (In Thousands) | June 30, 2019 |
| December 31, 2018 | Customers | $ | 60,579 |
| | $ | 60,879 |
| Corporate | 12,024 |
| | 18,171 |
| Franchisee | 12,654 |
| | 19,109 |
| Accounts Receivable | $ | 85,257 |
| | $ | 98,159 |
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The following is a summary of the Company’s loans receivable, net: | | | | | | | | | (In Thousands) | June 30, 2019 | | December 31, 2018 | Credit Card Loans1 | $ | 86,763 |
| | $ | 90,406 |
| Acquired Loans2 | 2,158 |
| | 5,688 |
| Loans Receivable, Gross | 88,921 |
| | 96,094 |
| | | | | Allowance for Loan Losses | (12,783 | ) | | (12,970 | ) | Unamortized Fees | (6,164 | ) | | (6,971 | ) | Loans Receivable, Net of Allowances and Unamortized Fees | $ | 69,974 |
| | $ | 76,153 |
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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.
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| Components of the Accounts Receivable Provision |
The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments: | | | | | | | | | | Six Months Ended June 30, | (In Thousands) | 2019 | | 2018 | Bad Debt Expense1 | $ | 1,166 |
| | $ | 96,651 |
| Provision for Returns and Uncollectible Renewal Payments2 | 136,445 |
| | 16,426 |
| Accounts Receivable Provision | $ | 137,611 |
| | $ | 113,077 |
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1 Bad debt expense is recorded within operating expenses in the condensed consolidated financial statements. 2 In accordance with the adoption of ASC 842, Progressive Leasing provision for returns and uncollectible renewal payments are recorded as a reduction to lease revenues and fees within the condensed consolidated financial statements beginning January 1, 2019. Prior to January 1, 2019, Progressive Leasing provision for returns and uncollectible renewal payments were recorded as bad debt expense within operating expenses in the condensed consolidated financial statements.
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| Schedule of Lease Merchandise |
The following is a summary of lease merchandise, net of accumulated depreciation and allowances: | | | | | | | | | (In Thousands) | June 30, 2019 | | December 31, 2018 | Merchandise on Lease | $ | 1,036,456 |
| | $ | 1,053,684 |
| Merchandise Not on Lease | 256,268 |
| | 264,786 |
| Lease Merchandise, net of Accumulated Depreciation and Allowances | $ | 1,292,724 |
| | $ | 1,318,470 |
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| Allowance for Lease Merchandise |
The following table shows the components of the allowance for lease merchandise write-offs: | | | | | | | | | | Six Months Ended June 30, | (In Thousands) | 2019 | | 2018 | Beginning Balance | $ | 46,694 |
| | $ | 35,629 |
| Merchandise Written off, net of Recoveries | (105,571 | ) | | (80,856 | ) | Provision for Write-offs | 117,994 |
| | 91,420 |
| Ending Balance | $ | 59,117 |
| | $ | 46,193 |
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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 June 30, 2019 and December 31, 2018 by Fair Isaac and Company (FICO) score as determined at the time of loan origination: | | | | | | | FICO Score Category | June 30, 2019 | | December 31, 2018 | 600 or Less | 4.5 | % | | 3.7 | % | Between 600 and 700 | 79.6 | % | | 77.9 | % | 700 or Greater | 15.9 | % | | 18.4 | % |
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| Schedule of Prepaid Expenses and Other Assets |
Prepaid expenses and other assets consist of the following: | | | | | | | | | (In Thousands) | June 30, 2019 | | December 31, 2018 | Prepaid Expenses | $ | 32,937 |
| | $ | 30,763 |
| Prepaid Insurance | 26,400 |
| | 27,948 |
| Assets Held for Sale | 8,992 |
| | 6,589 |
| Deferred Tax Asset | 8,761 |
| | 8,761 |
| Other Assets | 27,844 |
| | 24,161 |
| Prepaid Expenses and Other Assets | $ | 104,934 |
| | $ | 98,222 |
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| Schedule of Accounts Payable and Accrued Expenses |
Accounts payable and accrued expenses consist of the following: | | | | | | | | | (In Thousands) | June 30, 2019 | | December 31, 2018 | Accounts Payable | $ | 57,414 |
| | $ | 88,369 |
| Accrued Insurance Costs | 40,745 |
| | 40,423 |
| Accrued Salaries and Benefits | 40,125 |
| | 40,790 |
| Accrued Real Estate and Sales Taxes | 27,379 |
| | 30,332 |
| Deferred Rent1 | — |
| | 27,270 |
| Other Accrued Expenses and Liabilities1 | 61,250 |
| | 65,969 |
| Accounts Payable and Accrued Expenses | $ | 226,913 |
| | $ | 293,153 |
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1 Amounts as of June 30, 2019 were impacted by the January 1, 2019 adoption of ASC 842. Upon transition to ASC 842, the remaining balances of the Company's deferred rent, lease incentives, and closed store reserve were reclassified as a reduction to the operating lease right-of-use asset in the accompanying condensed consolidated balance sheet.
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| Schedule of Stockholders Equity |
Changes in stockholders' equity for the six months ended June 30, 2019 and 2018 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Stock | | Common Stock | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | (In Thousands, Except Per Share) | Shares | | Amount | | | | | Balance, December 31, 2018 | (23,568 | ) | | $ | (567,847 | ) | | $ | 45,376 |
| | $ | 278,922 |
| | $ | 2,005,344 |
| | $ | (1,087 | ) | $ | 1,760,708 |
| Opening Balance Sheet Adjustment - ASC 842, net of taxes | — |
| | — |
| | — |
| | — |
| | 2,592 |
| | — |
| 2,592 |
| Cash Dividends, $0.035 per share | — |
| | — |
| | — |
| | — |
| | (2,363 | ) | | — |
| (2,363 | ) | Stock-Based Compensation | — |
| | — |
| | — |
| | 7,050 |
| | — |
| | — |
| 7,050 |
| Reissued Shares | 493 |
| | 4,264 |
| | — |
| | (15,245 | ) | | — |
| | — |
| (10,981 | ) | Net Earnings | — |
| | — |
| | — |
| | — |
| | 56,078 |
| | — |
| 56,078 |
| Foreign Currency Translation Adjustment | — |
| | — |
| | — |
| | — |
| | — |
| | 424 |
| 424 |
| Balance, March 31, 2019 | (23,075 | ) | | $ | (563,583 | ) | | $ | 45,376 |
| | $ | 270,727 |
| | $ | 2,061,651 |
| | $ | (663 | ) | $ | 1,813,508 |
| Cash Dividends, $0.035 per share | — |
| | — |
| | — |
| | — |
| | (2,386 | ) | | — |
| (2,386 | ) | Stock-Based Compensation | — |
| | — |
| | — |
| | 6,522 |
| | — |
| | — |
| 6,522 |
| Reissued Shares | 113 |
| | 2,776 |
| | — |
| | 284 |
| | — |
| | — |
| 3,060 |
| Repurchased Shares | (243 | ) | | (14,414 | ) | | — |
| | — |
| | — |
| | — |
| (14,414 | ) | Net Earnings | — |
| | — |
| | — |
| | — |
| | 42,650 |
| | — |
| 42,650 |
| Foreign Currency Translation Adjustment | — |
| | — |
| | — |
| | — |
| | — |
| | 618 |
| 618 |
| Balance, June 30, 2019 | (23,205 | ) | | $ | (575,221 | ) | | $ | 45,376 |
| | $ | 277,533 |
| | $ | 2,101,915 |
| | $ | (45 | ) | $ | 1,849,558 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Stock | | Common Stock | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | (In Thousands, Except Per Share) | Shares | | Amount | | | | | Balance, December 31, 2017 | (20,733 | ) | | $ | (407,713 | ) | | $ | 45,376 |
| | $ | 270,043 |
| | $ | 1,819,524 |
| | $ | 774 |
| $ | 1,728,004 |
| Opening Balance Sheet Adjustment - ASC 606, net of taxes | — |
| | — |
| | — |
| | — |
| | (1,729 | ) | | — |
| (1,729 | ) | Cash Dividends, $0.03 per share | — |
| | — |
| | — |
| | — |
| | (2,146 | ) | | — |
| (2,146 | ) | Stock-Based Compensation | — |
| | — |
| | — |
| | 7,862 |
| | — |
| | — |
| 7,862 |
| Reissued Shares | 545 |
| | 3,441 |
| | — |
| | (12,602 | ) | | — |
| | — |
| (9,161 | ) | Repurchased Shares | (391 | ) | | (18,407 | ) | | — |
| | — |
| | — |
| | — |
| (18,407 | ) | Net Earnings | — |
| | — |
| | — |
| | — |
| | 52,246 |
| | — |
| 52,246 |
| Foreign Currency Translation Adjustment | — |
| | — |
| | — |
| | — |
| | — |
| | (477 | ) | (477 | ) | Balance, March 31, 2018 | (20,579 | ) | | $ | (422,679 | ) | | $ | 45,376 |
| | $ | 265,303 |
| | $ | 1,867,895 |
| | $ | 297 |
| $ | 1,756,192 |
| Cash Dividends, $0.03 per share | — |
| | — |
| | — |
| | — |
| | (2,087 | ) | | — |
| (2,087 | ) | Stock-Based Compensation | — |
| | — |
| | — |
| | 6,380 |
| | — |
| | — |
| 6,380 |
| Reissued Shares | 220 |
| | 1,795 |
| | — |
| | (5,408 | ) | | — |
| | — |
| (3,613 | ) | Repurchased Shares | (1,234 | ) | | (50,025 | ) | | — |
| | — |
| | — |
| | — |
| (50,025 | ) | Net Earnings | — |
| | — |
| | — |
| | — |
| | 38,501 |
| | — |
| 38,501 |
| Foreign Currency Translation Adjustment | — |
| | — |
| | — |
| | — |
| | — |
| | (535 | ) | (535 | ) | Balance, June 30, 2018 | (21,593 | ) | | $ | (470,909 | ) | | $ | 45,376 |
| | $ | 266,275 |
| | $ | 1,904,309 |
| | $ | (238 | ) | $ | 1,744,813 |
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