v3.19.2

Segments (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations

The following is a summary of total assets by segment and shared corporate-related assets.

(In Thousands)	June 30, 2019				December 31, 2018
Assets:
Progressive Leasing	$	1,128,719			$	1,088,227
Aaron's Business1	1,727,615				1,483,102
DAMI	86,753				95,341
Other2	237,111				160,022
Total Assets	$	3,180,198			$	2,826,692

¹ Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the condensed consolidated balance sheets of $15.7 million and $15.2 million as of June 30, 2019 and December 31, 2018, respectively.

² Corporate-related assets that benefit multiple segments are reported as other assets.The following is a summary of earnings (loss) before income taxes by segment:

	Three Months Ended June 30,								Six Months Ended June 30,
(In Thousands)	2019				2018				2019				2018
Earnings (Loss) Before Income Taxes:
Progressive Leasing	$	58,406			$	44,575			$	113,794			$	79,554
Aaron's Business1	138				7,697				17,726				40,776
DAMI	(1,725		)		(2,292		)		(4,393		)		(3,598		)
Total Earnings Before Income Taxes	$	56,819			$	49,980			$	127,127			$	116,732

¹ Earnings before income taxes for the Aaron's Business during the six months ended June 30, 2019 were impacted by (i) restructuring charges of $32.0 million related to closed store right-of-use asset impairment and operating lease charges, the write-off and impairment of store property, plant and equipment and related workforce reductions, and other impairment charges in connection with the Company's strategic decision to close Company-operated stores, of which $18.7 million was incurred during the three months ended June 30, 2019 and (ii) gains on insurance recoveries of $4.5 million related to payments received from and final settlements reached with insurance carriers for Hurricanes Harvey and Irma property and business interruption claims in excess of the related property insurance receivables, of which $3.6 million was recorded during the three months ended June 30, 2019.

The following table presents revenue by source and by segment for the three months ended June 30, 2019:

	Three Months Ended June 30, 2019
(In Thousands)	Progressive Leasing			Aaron's Business			DAMI			Total
Lease Revenues and Fees1	$	516,333		$	391,232		$	—		$	907,565
Retail Sales2	—			8,898			—			8,898
Non-Retail Sales2	—			34,124			—			34,124
Franchise Royalties and Fees2	—			8,605			—			8,605
Interest and Fees on Loans Receivable3	—			—			8,610			8,610
Other	—			339			—			339
Total	$	516,333		$	443,198		$	8,610		$	968,141

¹ Substantially all lease revenues and fees are within the scope of ASC 842, Leases. The Company had $6.9 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

²  Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $6.3 million is related to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. The remaining revenue is primarily related to fees collected for pre-opening services, which are being deferred and recognized as revenue over the agreement term, and advertising fees charged to franchisees. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise.

³ Revenue within the scope of ASC 310, Credit Card Interest & Fees.

The following table presents revenue by source and by segment for the three months ended June 30, 2018:

	Three Months Ended June 30, 2018
(In Thousands)	Progressive Leasing			Aaron's Business			DAMI			Total
Lease Revenues and Fees1	$	483,666		$	362,272		$	—		$	845,938
Retail Sales2	—			6,592			—			6,592
Non-Retail Sales2	—			53,661			—			53,661
Franchise Royalties and Fees2	—			12,125			—			12,125
Interest and Fees on Loans Receivable3	—			—			9,208			9,208
Other	—			335			—			335
Total	$	483,666		$	434,985		$	9,208		$	927,859

¹ Substantially all lease revenues and fees are within the scope of ASC 840, Leases. The Company had $4.4 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

² Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $9.1 million is related to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. The remaining revenue is primarily related to fees collected for pre-opening services, which are being deferred and recognized as revenue over the agreement term, and advertising fees charged to franchisees. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise.

³ Revenue within the scope of ASC 310, Credit Card Interest & Fees.

The following table presents revenue by source and by segment for the six months ended June 30, 2019:

	Six Months Ended June 30, 2019
(In Thousands)	Progressive Leasing			Aaron's Business			DAMI			Total
Lease Revenues and Fees1	$	1,039,734		$	811,988		$	—		$	1,851,722
Retail Sales2	—			21,707			—			21,707
Non-Retail Sales2	—			71,105			—			71,105
Franchise Royalties and Fees2	—			17,812			—			17,812
Interest and Fees on Loans Receivable3	—			—			17,256			17,256
Other	—			642			—			642
Total	$	1,039,734		$	923,254		$	17,256		$	1,980,244

¹ Substantially all lease revenues and fees are within the scope of ASC 842, Leases. The Company had $13.4 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

²  Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $13.4 million is related to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. The remaining revenue is primarily related to fees collected for pre-opening services, which are being deferred and recognized as revenue over the agreement term, and advertising fees charged to franchisees. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise.

³ Revenue within the scope of ASC 310, Credit Card Interest & Fees.

The following table presents revenue by source and by segment for the six months ended June 30, 2018:

	Six Months Ended June 30, 2018
(In Thousands)	Progressive Leasing			Aaron's Business			DAMI			Total
Lease Revenues and Fees1	$	970,183		$	745,822		$	—		$	1,716,005
Retail Sales2	—			15,108			—			15,108
Non-Retail Sales2	—			106,891			—			106,891
Franchise Royalties and Fees2	—			24,987			—			24,987
Interest and Fees on Loans Receivable3	—			—			18,750			18,750
Other	—			927			—			927
Total	$	970,183		$	893,735		$	18,750		$	1,882,668

¹ Substantially all lease revenues and fees are within the scope of ASC 840, Leases. The Company had $8.4 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

² Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $19.2 million is related to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. The remaining revenue is primarily related to fees collected for pre-opening services, which are being deferred and recognized as revenue over the agreement term, and advertising fees charged to franchisees. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise.

³ Revenue within the scope of ASC 310, Credit Card Interest & Fees.

X

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References

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