v3.20.2

Segments | 6 Months Ended
--- | ---
Jun. 30, 2020
Segment Reporting [Abstract] |
Segments | SEGMENTS As of June 30, 2020, the Company has three operating and reportable segments: Progressive Leasing, Aaron's Business and Vive. Progressive Leasing is a leading virtual lease-to-own company that provides lease-purchase solutions on a variety of products, including furniture and appliance, jewelry, mobile phones and accessories, mattresses, and automobile electronics and accessories. The Aaron's Business offers furniture, home appliances, consumer electronics and accessories to consumers through a lease-to-own agreement through the Company's Aaron's-branded stores in the United States and Canada and e-commerce platform. This operating segment also supports franchisees of its Aaron's stores. In addition, the Aaron's Business segment includes the operations of Woodhaven, which manufactures and supplies the majority of the bedding and a significant portion of the upholstered furniture leased and sold in Company-operated and franchised stores. Vive offers a variety of second-look financing programs originated through third-party federally insured banks to customers of participating merchants and, together with Progressive Leasing, allows the Company to provide retail partners with below-prime customers one source for financing and leasing transactions. Disaggregated Revenue The following table presents revenue by source and by segment for the three months ended June 30, 2020:
| Three Months Ended June 30, 2020 |  |  |  |  |  |  |
(In Thousands) | Progressive Leasing | Aaron's Business | Vive | Total |  |  |  |
Lease Revenues and Fees1 | $ | 589,749 |  | $ | 380,238 |  | $ | — |  | $ | 969,987 |  |  |  |  |
Retail Sales2 | — |  | 14,020 |  | — |  | 14,020 |  |  |  |  |
Non-Retail Sales2 | — |  | 33,044 |  | — |  | 33,044 |  |  |  |  |
Franchise Royalties and Fees2 | — |  | 3,365 |  | — |  | 3,365 |  |  |  |  |
Interest and Fees on Loans Receivable3 | — |  | — |  | 9,414 |  | 9,414 |  |  |  |  |
Other | — |  | 289 |  | — |  | 289 |  |  |  |  |
Total | $ | 589,749 |  | $ | 430,956 |  | $ | 9,414 |  | $ | 1,030,119 |  |  |  |  |
1 Substantially all lease revenues and fees are within the scope of ASC 842, Leases. The Company had $6.8 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers. 2 Substantially all retail sales, non-retail sales and franchise royalties and fees are within the scope of ASC 606, Revenue from Contracts with Customers. 3 All interest and fees on loans receivable are 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, 2019:
| Three Months Ended June 30, 2019 |  |  |  |  |  |  |
(In Thousands) | Progressive Leasing | Aaron's Business | Vive | 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 Substantially all retail sales, non-retail sales and franchise royalties and fees are within the scope of ASC 606, Revenue from Contracts with Customers. 3 All interest and fees on loans receivable are 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, 2020:
| Six Months Ended June 30, 2020 |  |  |  |  |  |  |
(In Thousands) | Progressive Leasing | Aaron's Business | Vive | Total |  |  |  |
Lease Revenues and Fees1 | $ | 1,248,283 |  | $ | 769,617 |  | $ | — |  | $ | 2,017,900 |  |  |  |  |
Retail Sales2 | — |  | 23,551 |  | — |  | 23,551 |  |  |  |  |
Non-Retail Sales2 | — |  | 59,890 |  | — |  | 59,890 |  |  |  |  |
Franchise Royalties and Fees2 | — |  | 10,089 |  | — |  | 10,089 |  |  |  |  |
Interest and Fees on Loans Receivable3 | — |  | — |  | 19,322 |  | 19,322 |  |  |  |  |
Other | — |  | 641 |  | — |  | 641 |  |  |  |  |
Total | $ | 1,248,283 |  | $ | 863,788 |  | $ | 19,322 |  | $ | 2,131,393 |  |  |  |  |
1 Substantially all lease revenues and fees are within the scope of ASC 842, Leases. The Company had $13.5 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers. 2 Substantially all retail sales, non-retail sales and franchise royalties and fees are within the scope of ASC 606, Revenue from Contracts with Customers. 3 All interest and fees on loans receivable are 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 | Vive | 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 Substantially all retail sales, non-retail sales and franchise royalties and fees are within the scope of ASC 606, Revenue from Contracts with Customers. 3 All interest and fees on loans receivable are within the scope of ASC 310, Credit Card Interest & Fees. Measurement of Segment Profit or Loss and Segment Assets The Company evaluates performance and allocates resources based on revenue growth and pre-tax profit or loss from operations. Intersegment sales are completed at internally negotiated amounts. Since the intersegment profit affects inventory valuation, depreciation and cost of goods sold are adjusted when intersegment profit is eliminated in consolidation. The Company determines earnings (loss) before income taxes for all reportable segments in accordance with U.S. GAAP. Interest expense is allocated to the Progressive Leasing and Vive segments based on a percentage of the outstanding balances of their intercompany borrowings and of the debt incurred when they were acquired. 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) | 2020 |  | 2019 |  | 2020 |  | 2019
Earnings (Loss) Before Income Taxes: |  |  |  |  |  |  |
Progressive Leasing | $ | 59,814 |  |  | $ | 58,406 |  |  | $ | 118,801 |  |  | $ | 113,794 |
Aaron's Business1 | 32,009 |  |  | 138 |  |  | (433,348) |  |  | 17,726 |
Vive | 714 |  |  | (1,725) |  |  | (7,369) |  |  | (4,393) |
Total Earnings (Loss) Before Income Taxes | $ | 92,537 |  |  | $ | 56,819 |  |  | $ | (321,916) |  |  | $ | 127,127 |
1 Loss before income taxes for the Aaron's Business during the six months ended June 30, 2020 was impacted by (i) goodwill impairment charges of $446.9 million incurred during the three months ended March 31, 2020, (ii) $14.1 million related to an early termination fee for a sales and marketing agreement during the three months ended March 31, 2020, and (iii) restructuring charges of $29.3 million related to operating lease right-of-use asset impairment and operating lease charges, fixed asset impairment charges, and workforce reductions, of which $7.0 million was incurred during the three months ended June 30, 2020. Earnings before income taxes for the Aaron's Business during the six months ended June 30, 2019 includes 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, of which $18.7 million was incurred during the three months ended June 30, 2019. The following is a summary of total assets by segment and shared corporate-related assets.
(In Thousands) | June 30, 2020 |  | December 31, 2019
Assets: |  |  |
Progressive Leasing | $ | 1,093,647 |  |  | $ | 1,261,786 |
Aaron's Business1,2 | 1,034,194 |  |  | 1,740,281 |
Vive | 71,633 |  |  | 85,825 |
Other3 | 516,228 |  |  | 209,908 |
Total Assets | $ | 2,715,702 |  |  | $ | 3,297,800 |
1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the condensed consolidated balance sheets of $12.8 million and $14.0 million as of June 30, 2020 and December 31, 2019, respectively. 2 During the six months ended June 30, 2020, the Aaron's Business segment assets were impacted by a goodwill impairment charge of $446.9 million to fully write-off its goodwill balance. 3 Corporate-related assets that benefit multiple segments are reported as other assets.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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