| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| (State or other jurisdiction of incorporation or organization) | (I. R. S. Employer Identification No.) | ||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
| Large Accelerated Filer | ☐ | ☒ | |||||||||||||||||||||
| Non-Accelerated Filer | ☐ | Smaller Reporting Company | |||||||||||||||||||||
| Emerging Growth Company | |||||||||||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | |||||||||||||||||||||||
| Title of Each Class | Shares Outstanding as of October 21, 2022 | |||||||
| Common Stock, $0.50 Par Value | ||||||||
| Item 3. Defaults Upon Senior Securities | |||||
| Item 4. Mine Safety Disclosures | |||||
| Item 5. Other Information | |||||
| (Unaudited) | |||||||||||
| September 30, 2022 | December 31, 2021 | ||||||||||
| (In Thousands, Except Share Data) | |||||||||||
| ASSETS: | |||||||||||
| Cash and Cash Equivalents | $ | $ | |||||||||
Accounts Receivable (net of allowances of $ | |||||||||||
Lease Merchandise (net of accumulated depreciation and allowances of $ | |||||||||||
| Merchandise Inventories, Net | |||||||||||
| Property, Plant and Equipment, Net | |||||||||||
| Operating Lease Right-of-Use Assets | |||||||||||
| Goodwill | |||||||||||
| Other Intangibles, Net | |||||||||||
| Income Tax Receivable | |||||||||||
| Prepaid Expenses and Other Assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| LIABILITIES & SHAREHOLDERS’ EQUITY: | |||||||||||
| Accounts Payable and Accrued Expenses | $ | $ | |||||||||
| Deferred Income Taxes Payable | |||||||||||
| Customer Deposits and Advance Payments | |||||||||||
| Operating Lease Liabilities | |||||||||||
| Debt | |||||||||||
| Total Liabilities | |||||||||||
| Commitments and Contingencies (Note 5) | |||||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||
Common Stock, Par Value $ | |||||||||||
| Additional Paid-in Capital | |||||||||||
| Retained Earnings | |||||||||||
| Accumulated Other Comprehensive Loss | ( | ( | |||||||||
| Less: Treasury Shares at Cost | |||||||||||
| ( | ( | ||||||||||
| Total Shareholders’ Equity | |||||||||||
| Total Liabilities & Shareholders’ Equity | $ | $ | |||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| (In Thousands, Except Per Share Data) | ||||||||||||||||||||
| REVENUES: | ||||||||||||||||||||
| Lease Revenues and Fees | $ | $ | $ | $ | ||||||||||||||||
| Retail Sales | ||||||||||||||||||||
| Non-Retail Sales | $ | $ | ||||||||||||||||||
| Franchise Royalties and Other Revenues | ||||||||||||||||||||
| COSTS OF REVENUES: | ||||||||||||||||||||
| Depreciation of Lease Merchandise and Other Lease Revenue Costs | ||||||||||||||||||||
| Retail Cost of Sales | ||||||||||||||||||||
| Non-Retail Cost of Sales | ||||||||||||||||||||
| GROSS PROFIT | ||||||||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||||
| Personnel Costs | ||||||||||||||||||||
| Other Operating Expenses, Net | ||||||||||||||||||||
| Provision for Lease Merchandise Write-Offs | ||||||||||||||||||||
| Restructuring Expenses, Net | ||||||||||||||||||||
| Impairment of Goodwill | ||||||||||||||||||||
| Separation Costs | ||||||||||||||||||||
| Acquisition-Related Costs | ||||||||||||||||||||
| OPERATING (LOSS) PROFIT | ( | |||||||||||||||||||
| Interest Expense | ( | ( | ( | ( | ||||||||||||||||
| Other Non-Operating (Expense) Income, Net | ( | ( | ( | |||||||||||||||||
| (LOSS) EARNINGS BEFORE INCOME TAXES | ( | ( | ||||||||||||||||||
| INCOME TAX (BENEFIT) EXPENSE | ( | ( | ||||||||||||||||||
| NET (LOSS) EARNINGS | $ | ( | $ | $ | $ | |||||||||||||||
| (LOSS) EARNINGS PER SHARE | $ | ( | $ | $ | $ | |||||||||||||||
| (LOSS) EARNINGS PER SHARE ASSUMING DILUTION | $ | ( | $ | $ | $ | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Net (Loss) Earnings | $ | ( | $ | $ | $ | ||||||||||||||||||
| Other Comprehensive (Loss) Income: | |||||||||||||||||||||||
| Unrealized (Loss) Gain on Fuel Hedge Derivative Instrument | ( | ||||||||||||||||||||||
| Foreign Currency Translation Adjustment | ( | ( | ( | ||||||||||||||||||||
| Total Other Comprehensive (Loss) Income | ( | ( | ( | ||||||||||||||||||||
| Comprehensive (Loss) Income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| (In Thousands) | |||||||||||
| OPERATING ACTIVITIES: | |||||||||||
| Net Earnings | $ | $ | |||||||||
| Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities: | |||||||||||
| Depreciation of Lease Merchandise | |||||||||||
| Other Depreciation and Amortization | |||||||||||
| Provision for Lease Merchandise Write-Offs | |||||||||||
| Non-Cash Inventory Fair Value Adjustment | |||||||||||
| Accounts Receivable Provision | |||||||||||
| Stock-Based Compensation | |||||||||||
| Deferred Income Taxes | ( | ||||||||||
| Impairment of Goodwill and Other Assets | |||||||||||
| Non-Cash Lease Expense | |||||||||||
| Other Changes, Net | ( | ( | |||||||||
| Changes in Operating Assets and Liabilities: | |||||||||||
| Lease Merchandise | ( | ( | |||||||||
| Merchandise Inventories | |||||||||||
| Accounts Receivable | ( | ( | |||||||||
| Prepaid Expenses and Other Assets | ( | ( | |||||||||
| Income Tax Receivable | ( | ( | |||||||||
| Operating Lease Right-of-Use Assets and Liabilities | ( | ( | |||||||||
| Accounts Payable and Accrued Expenses | ( | ||||||||||
| Customer Deposits and Advance Payments | ( | ( | |||||||||
| Cash Provided by Operating Activities | |||||||||||
| INVESTING ACTIVITIES: | |||||||||||
| Purchases of Property, Plant, and Equipment | ( | ( | |||||||||
| Proceeds from Dispositions of Property, Plant, and Equipment | |||||||||||
| Acquisition of BrandsMart U.S.A., Net of Cash Acquired | ( | ||||||||||
| Acquisition of Businesses and Customer Agreements, Net of Cash Acquired | ( | ( | |||||||||
| Proceeds from Other Investing-Related Activities | |||||||||||
| Cash Used in Investing Activities | ( | ( | |||||||||
| FINANCING ACTIVITIES: | |||||||||||
| Repayments on Swing Line Loans, Net | ( | ||||||||||
| Proceeds from Revolver and Term Loan | |||||||||||
| Repayments on Revolver, Term Loan and Financing Leases | ( | ( | |||||||||
| Borrowings on Inventory Loan Program, Net | ( | ||||||||||
| Dividends Paid | ( | ( | |||||||||
| Acquisition of Treasury Stock | ( | ( | |||||||||
| Issuance of Stock Under Stock Option Plans | |||||||||||
| Shares Withheld for Tax Payments | ( | ( | |||||||||
| Debt Issuance Costs | ( | ||||||||||
| Cash Provided by (Used in) Financing Activities | ( | ||||||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | ( | ( | |||||||||
| Increase (Decrease) in Cash and Cash Equivalents | ( | ||||||||||
| Cash and Cash Equivalents at Beginning of Period | |||||||||||
| Cash and Cash Equivalents at End of Period | $ | $ | |||||||||
| Stores as of September 30 (Unaudited) | 2022 | 2021 | |||||||||
Company-operated Aaron's Stores1 | |||||||||||
| Franchisee-operated Aaron's Stores | |||||||||||
BrandsMart U.S.A. Stores2 | |||||||||||
| Systemwide Stores | |||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (Shares In Thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Weighted Average Shares Outstanding | |||||||||||||||||||||||
Dilutive Effect of Share-Based Awards1 | |||||||||||||||||||||||
| Weighted Average Shares Outstanding Assuming Dilution | |||||||||||||||||||||||
| (In Thousands) | September 30, 2022 | December 31, 2021 | |||||||||
| Customers | $ | $ | |||||||||
| Corporate | |||||||||||
| Franchisee | |||||||||||
| $ | $ | ||||||||||
| Nine Months Ended September 30, | |||||||||||
| (In Thousands) | 2022 | 2021 | |||||||||
| Beginning Balance | $ | $ | |||||||||
| Accounts Written Off, net of Recoveries | ( | ( | |||||||||
| Accounts Receivable Provision | |||||||||||
| Ending Balance | $ | $ | |||||||||
| Nine Months Ended September 30, | |||||||||||
| (In Thousands) | 2022 | 2021 | |||||||||
| Bad Debt (Reversal) Expense | $ | ( | $ | ( | |||||||
| Provision for Returns and Uncollectible Renewal Payments | |||||||||||
| Accounts Receivable Provision | $ | $ | |||||||||
| (In Thousands) | September 30, 2022 | December 31, 2021 | |||||||||
| Merchandise on Lease, net of Accumulated Depreciation and Allowances | $ | $ | |||||||||
Merchandise Not on Lease, net of Accumulated Depreciation and Allowances1 | |||||||||||
| Lease Merchandise, net of Accumulated Depreciation and Allowances | $ | $ | |||||||||
| Nine Months Ended September 30, | |||||||||||
| (In Thousands) | 2022 | 2021 | |||||||||
| Beginning Balance | $ | $ | |||||||||
| Merchandise Written off, net of Recoveries | ( | ( | |||||||||
| Provision for Write-offs | |||||||||||
| Ending Balance | $ | $ | |||||||||
| (In Thousands) | September 30, 2022 | ||||
| Merchandise Inventories, gross | $ | ||||
| Reserve for Merchandise Inventories | |||||
| Merchandise Inventories, net | $ | ||||
| (In Thousands) | September 30, 2022 | December 31, 2021 | |||||||||
| Prepaid Expenses | $ | $ | |||||||||
| Insurance Related Assets | |||||||||||
| Company-Owned Life Insurance | |||||||||||
| Assets Held for Sale | |||||||||||
| Deferred Tax Asset | |||||||||||
Other Assets1 | |||||||||||
| $ | $ | ||||||||||
| (In Thousands) | September 30, 2022 | December 31, 2021 | |||||||||
| Accounts Payable | $ | $ | |||||||||
| Estimated Claims Liability Costs | |||||||||||
| Accrued Salaries and Benefits | |||||||||||
| Accrued Real Estate and Sales Taxes | |||||||||||
| Other Accrued Expenses and Liabilities | |||||||||||
| $ | $ | ||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Total | ||||||||
Balance at December 31, 2021 | $ | $ | $ | ||||||||
| Acquisitions | |||||||||||
| Currency Translation Adjustments | ( | ( | |||||||||
| Acquisition Accounting Adjustments | ( | ( | ( | ||||||||
| Impairment Loss | ( | ( | |||||||||
Balance at September 30, 2022 | $ | $ | $ | ||||||||
| Treasury Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
| (In Thousands, Except Per Share) | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2021 | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Cash Dividends, $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Issuance of Shares under Equity Plans | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of Treasury Stock | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
| Net Earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Unrealized Gain on Fuel Hedge Derivative Instrument | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2022 | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Cash Dividends, $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Issuance of Shares under Equity Plans | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of Treasury Stock | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
| Net Loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Unrealized gain on fuel hedge | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2022 | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Cash Dividends, $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Issuance of Shares under Equity Plans | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of Treasury Stock | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Net Loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Unrealized Gain on Fuel Hedge Derivative Instrument | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2022 | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
| Treasury Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
| (In Thousands, Except Per Share) | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2020 | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Cash Dividends, $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Issuance of Shares Under Equity Plans | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition of Treasury Stock | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
| Net Earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2021 | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Cash Dividends, $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Issuance of Shares Under Equity Plans | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of Treasury Stock | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
| Net Earnings | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2021 | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Cash Dividends, $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Reclassification of liability awards to equity awards | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Issuance of Shares Under Equity Plans | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of Treasury Stock | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
| Net Earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2021 | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
| (In Thousands) | Preliminary Amounts Recognized as of Acquisition Date1 | Measurement Period Adjustments2 | Preliminary Amounts Recognized as of Acquisition Date (As Adjusted) | ||||||||
| Cash Consideration to BrandsMart U.S.A. | $ | $ | $ | ||||||||
| Acquired Cash | |||||||||||
| Estimated Excess Working Capital, net of Cash | |||||||||||
Non-Cash Off-Market Lease Agreement3 | |||||||||||
| Aggregate Consideration Transferred | |||||||||||
| Total Purchase Consideration, Net of Cash Acquired | |||||||||||
| Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed | |||||||||||
| Accounts Receivable | |||||||||||
| Merchandise Inventories | ( | ||||||||||
| Property, Plant and Equipment | |||||||||||
| Operating Lease Right-of-Use Assets | |||||||||||
Other Intangibles4 | |||||||||||
Prepaid Expenses and Other Assets5 | |||||||||||
| Total Identifiable Assets Acquired | |||||||||||
| Accounts Payable and Accrued Expenses | |||||||||||
| Customer Deposits and Advance Payments | |||||||||||
| Operating Lease Liabilities | |||||||||||
| Debt | |||||||||||
| Total Liabilities Assumed | |||||||||||
| Net Assets Acquired | |||||||||||
Goodwill6 | ( | ||||||||||
| Total Estimated Fair Value of Net Assets Acquired | $ | $ | $ | ||||||||
| Fair Value (In Thousands) | Weighted Average Life (In Years) | ||||||||||
| Trade Names | $ | ||||||||||
| Non-Compete Agreements | |||||||||||
| Customer List | |||||||||||
| Total Acquired Intangible Assets | $ | ||||||||||
| Three Months Ended September 30, | ||||||||||||||
| (Unaudited) | 2022 | 2021 | ||||||||||||
| (In Thousands) | As Reported | Pro Forma Combined Results | As Reported | Pro Forma Combined Results | ||||||||||
| Revenues | $ | $ | $ | $ | ||||||||||
| (Loss) Earnings Before Income Taxes | ( | ( | ||||||||||||
| Net (Loss) Earnings | ( | ( | ||||||||||||
| Nine Months Ended September 30, | ||||||||||||||
| (Unaudited) | 2022 | 2021 | ||||||||||||
| (In Thousands) | As Reported | Pro Forma Combined Results | As Reported | Pro Forma Combined Results | ||||||||||
| Revenues | $ | $ | $ | $ | ||||||||||
| (Loss) Earnings Before Income Taxes | ( | |||||||||||||
| Net Earnings | ||||||||||||||
| (In Thousands) | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
| Deferred Compensation Liability | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| (In Thousands) | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
| Assets Held for Sale | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| (In Thousands) | September 30, 2022 | December 31, 2021 | |||||||||
| Revolving Facility | $ | $ | |||||||||
Term Loan, Due in Installments through April 20271 | |||||||||||
| Total Outstanding Borrowings under the Credit Facility | |||||||||||
Total Outstanding on Swing Line Loans2 | |||||||||||
| Inventory Loan Payable | |||||||||||
| Total Debt | |||||||||||
| Less: Current Maturities | |||||||||||
| Long-Term Debt | $ | $ | |||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| (In Thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Lease Revenues and Fees | $ | $ | $ | $ | |||||||||||||
| Retail Sales | |||||||||||||||||
| Non-Retail Sales | |||||||||||||||||
| Franchise Royalties and Fees | |||||||||||||||||
| Other | |||||||||||||||||
Total1 | $ | $ | $ | $ | |||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Right-of-Use Asset Impairment | $ | $ | $ | $ | |||||||||||||||||||
| Operating Lease Charges | |||||||||||||||||||||||
| Fixed Asset Impairment | |||||||||||||||||||||||
| Severance | |||||||||||||||||||||||
| Professional Advisory Fees | |||||||||||||||||||||||
| Other Expenses | ( | ||||||||||||||||||||||
Total Restructuring Expenses, Net | $ | $ | $ | $ | |||||||||||||||||||
(In Thousands) | Severance | ||||
Balance at January 1, 2022 | $ | ||||
Restructuring Severance Charges | |||||
| Payments | ( | ||||
| Balance at September 30, 2022 | $ | ||||
| Three Months Ended September 30, 2022 | ||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Elimination of Intersegment Revenues | Total | ||||||||||
| Lease Revenues and Fees | $ | $ | $ | $ | ||||||||||
| Retail Sales | ( | |||||||||||||
| Non-Retail Sales | ||||||||||||||
| Franchise Royalties and Fees | ||||||||||||||
| Other | ||||||||||||||
| Total Revenues | $ | $ | $ | ( | $ | |||||||||
| Three Months Ended September 30, 2022 | |||||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Unallocated Corporate1 | Elimination | Total | ||||||||||||
| Gross Profit | $ | $ | $ | $ | ( | $ | |||||||||||
| Earnings (Loss) Before Income Taxes | ( | ( | ( | ||||||||||||||
Depreciation and Amortization2 | |||||||||||||||||
| Capital Expenditures | |||||||||||||||||
| Three Months Ended September 30, 2021 | ||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Elimination of Intersegment Revenues | Total | ||||||||||
| Lease Revenues and Fees | $ | $ | $ | $ | ||||||||||
| Retail Sales | ||||||||||||||
| Non-Retail Sales | ||||||||||||||
| Franchise Royalties and Fees | ||||||||||||||
| Other | ||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||
| Three Months Ended September 30, 2021 | |||||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Unallocated Corporate2 | Elimination | Total | ||||||||||||
| Gross Profit | $ | $ | $ | $ | $ | ||||||||||||
| Earnings (Loss) Before Income Taxes | ( | ||||||||||||||||
Depreciation and Amortization1 | |||||||||||||||||
| Capital Expenditures | |||||||||||||||||
| Nine Months Ended September 30, 2022 | ||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Elimination of Intersegment Revenues | Total | ||||||||||
| Lease Revenues and Fees | $ | $ | $ | $ | ||||||||||
| Retail Sales | ( | |||||||||||||
| Non-Retail Sales | ||||||||||||||
| Franchise Royalties and Fees | ||||||||||||||
| Other | ||||||||||||||
| Total | $ | $ | $ | ( | $ | |||||||||
| Nine Months Ended September 30, 2022 | |||||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart1 | Unallocated Corporate2 | Elimination | Total | ||||||||||||
| Gross Profit | $ | $ | $ | $ | ( | $ | |||||||||||
| Earnings (Loss) Before Income Taxes | ( | ( | ( | ( | |||||||||||||
Depreciation and Amortization3 | |||||||||||||||||
| Capital Expenditures | |||||||||||||||||
| Nine Months Ended September 30, 2021 | ||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Elimination of Intersegment Revenues | Total | ||||||||||
| Lease Revenues and Fees | $ | $ | $ | $ | ||||||||||
| Retail Sales | ||||||||||||||
| Non-Retail Sales | ||||||||||||||
| Franchise Royalties and Fees | ||||||||||||||
| Other | ||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||
| Nine Months Ended September 30, 2021 | |||||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Unallocated Corporate2 | Elimination | Total | ||||||||||||
| Gross Profit | $ | $ | $ | $ | $ | ||||||||||||
| Earnings (Loss) Before Income Taxes | ( | ||||||||||||||||
Depreciation and Amortization1 | |||||||||||||||||
| Capital Expenditures | |||||||||||||||||
| Three Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| REVENUES: | |||||||||||||||||||||||
| Lease Revenues and Fees | $ | 372,127 | $ | 401,383 | $ | (29,256) | (7.3) | % | |||||||||||||||
| Retail Sales | 188,734 | 12,283 | 176,451 | nmf | |||||||||||||||||||
| Non-Retail Sales | 26,542 | 32,159 | (5,617) | (17.5) | |||||||||||||||||||
| Franchise Royalties and Other Revenues | 5,981 | 6,328 | (347) | (5.5) | |||||||||||||||||||
| 593,384 | 452,153 | 141,231 | 31.2 | ||||||||||||||||||||
| COSTS OF REVENUES | |||||||||||||||||||||||
| Depreciation of Lease Merchandise and Other Lease Revenue Costs | 125,711 | 130,104 | (4,393) | (3.4) | |||||||||||||||||||
| Retail Cost of Sales | 146,292 | 8,344 | 137,948 | nmf | |||||||||||||||||||
| Non-Retail Cost of Sales | 23,634 | 29,063 | (5,429) | (18.7) | |||||||||||||||||||
| 295,637 | 167,511 | 128,126 | 76.5 | ||||||||||||||||||||
| GROSS PROFIT | 297,747 | 284,642 | 13,105 | 4.6 | |||||||||||||||||||
| Gross Profit % | 50.2% | 63.0% | |||||||||||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||||||||
| Personnel Costs | 134,001 | 122,901 | 11,100 | 9.0 | |||||||||||||||||||
| Other Operating Expenses, Net | 123,040 | 105,428 | 17,612 | 16.7 | |||||||||||||||||||
| Provision for Lease Merchandise Write-Offs | 28,022 | 19,799 | 8,223 | 41.5 | |||||||||||||||||||
| Restructuring Expenses, Net | 14,930 | 2,899 | 12,031 | nmf | |||||||||||||||||||
| Impairment of Goodwill | 12,933 | — | 12,933 | nmf | |||||||||||||||||||
| Separation Costs | 220 | 397 | (177) | (44.6) | |||||||||||||||||||
| Acquisition-Related Costs | 1,659 | — | 1,659 | nmf | |||||||||||||||||||
| 314,805 | 251,424 | 63,381 | 25.2 | ||||||||||||||||||||
| OPERATING (LOSS) PROFIT | (17,058) | 33,218 | (50,276) | nmf | |||||||||||||||||||
| Interest Expense | (3,151) | (322) | (2,829) | nmf | |||||||||||||||||||
| Other Non-Operating Expense, Net | (344) | (88) | (256) | nmf | |||||||||||||||||||
| (LOSS) EARNINGS BEFORE INCOME TAXES | (20,553) | 32,808 | (53,361) | nmf | |||||||||||||||||||
| INCOME TAX (BENEFIT) EXPENSE | (4,937) | 8,460 | (13,397) | nmf | |||||||||||||||||||
| NET (LOSS) EARNINGS | $ | (15,616) | $ | 24,348 | $ | (39,964) | nmf | ||||||||||||||||
| Three Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| Occupancy Costs | $ | 57,461 | $ | 43,607 | $ | 13,854 | 31.8 | ||||||||||||||||
| Shipping and Handling | 16,930 | 13,952 | 2,978 | 21.3 | |||||||||||||||||||
| Advertising Costs | 7,798 | 11,186 | (3,388) | (30.3) | |||||||||||||||||||
| Intangible Amortization | 2,957 | 1,202 | 1,755 | 146.0 | |||||||||||||||||||
| Professional Services | 3,288 | 3,642 | (354) | (9.7) | |||||||||||||||||||
| Bank and Credit Card Related Fees | 7,932 | 5,171 | 2,761 | 53.4 | |||||||||||||||||||
| Gains on Dispositions of Store-Related Assets, net | (3,438) | (656) | (2,782) | nmf | |||||||||||||||||||
| Other Miscellaneous Expenses, net | 30,112 | 27,324 | 2,788 | 10.2 | |||||||||||||||||||
| Other Operating Expenses, net | $ | 123,040 | $ | 105,428 | $ | 17,612 | 16.7 | % | |||||||||||||||
| Three Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| Lease Revenues and Fees | $ | 372,127 | $ | 401,383 | $ | (29,256) | (7.3) | % | |||||||||||||||
| Retail Sales | 8,264 | 12,283 | (4,019) | (32.7) | |||||||||||||||||||
| Non-Retail Sales | 26,542 | 32,159 | (5,617) | (17.5) | |||||||||||||||||||
| Franchise Royalties and Fees | 5,803 | 6,147 | (344) | (5.6) | |||||||||||||||||||
| Other | 178 | 181 | (3) | (1.7) | |||||||||||||||||||
| Total Revenues - Aaron's Business | $ | 412,914 | $ | 452,153 | $ | (39,239) | (8.7) | % | |||||||||||||||
| Three Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| Gross Profit | $ | 257,066 | $ | 284,642 | $ | (27,576) | (9.7) | % | |||||||||||||||
| Earnings Before Income Taxes | 23,493 | 50,006 | (26,513) | (53.0) | |||||||||||||||||||
| Three Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| Retail Sales | $ | 183,341 | $ | — | $ | 183,341 | nmf | ||||||||||||||||
| Gross Profit | 41,040 | — | 41,040 | nmf | |||||||||||||||||||
| Earnings Before Income Taxes | 2,955 | — | 2,955 | nmf | |||||||||||||||||||
| Nine Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Lease Revenues and Fees | $ | 1,167,958 | $ | 1,240,645 | $ | (72,687) | (5.9) | % | |||||||||||||||
| Retail Sales | 392,189 | 45,606 | 346,583 | nmf | |||||||||||||||||||
| Non-Retail Sales | 81,411 | 94,563 | (13,152) | (13.9) | % | ||||||||||||||||||
| Franchise Royalties and Other Revenues | 18,292 | 19,888 | (1,596) | (8.0) | |||||||||||||||||||
| 1,659,850 | 1,400,702 | 259,148 | 18.5 | ||||||||||||||||||||
| COSTS OF REVENUES | |||||||||||||||||||||||
| Depreciation of Lease Merchandise and Other Lease Revenue Costs | 390,147 | 403,399 | (13,252) | (3.3) | |||||||||||||||||||
| Retail Cost of Sales | 320,635 | 29,750 | 290,885 | nmf | |||||||||||||||||||
| Non-Retail Cost of Sales | 73,227 | 85,163 | (11,936) | (14.0) | |||||||||||||||||||
| 784,009 | 518,312 | 265,697 | 51.3 | ||||||||||||||||||||
| GROSS PROFIT | 875,841 | 882,390 | (6,549) | (0.7) | |||||||||||||||||||
| Gross Profit % | 52.8% | 63.0% | |||||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Personnel Costs | 385,368 | 369,190 | 16,178 | 4.4 | |||||||||||||||||||
| Other Operating Expenses, Net | 363,786 | 327,840 | 35,946 | 11.0 | |||||||||||||||||||
| Provision for Lease Merchandise Write-Offs | 72,092 | 45,333 | 26,759 | 59.0 | |||||||||||||||||||
| Restructuring Expenses, Net | 23,847 | 8,134 | 15,713 | nmf | |||||||||||||||||||
| Impairment of Goodwill | 12,933 | — | 12,933 | nmf | |||||||||||||||||||
| Separation Costs | 990 | 6,033 | (5,043) | (83.6) | |||||||||||||||||||
| Acquisition-Related Costs | 13,156 | — | 13,156 | nmf | |||||||||||||||||||
| 872,172 | 756,530 | 115,642 | 15.3 | ||||||||||||||||||||
| OPERATING PROFIT | 3,669 | 125,860 | (122,191) | (97.1) | |||||||||||||||||||
| Interest Expense | (5,964) | (1,117) | (4,847) | nmf | |||||||||||||||||||
| Other Non-Operating (Expense) Income, Net | (2,827) | 1,058 | (3,885) | nmf | |||||||||||||||||||
| (LOSS) EARNINGS BEFORE INCOME TAXES | (5,122) | 125,801 | (130,923) | (104.1) | |||||||||||||||||||
| INCOME TAX (BENEFIT) EXPENSE | (5,696) | 32,155 | (37,851) | (117.7) | |||||||||||||||||||
| NET EARNINGS | $ | 574 | $ | 93,646 | $ | (93,072) | (99.4) | ||||||||||||||||
| Nine Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| Occupancy Costs | $ | 159,946 | $ | 129,232 | $ | 30,714 | 23.8 | ||||||||||||||||
| Shipping and Handling | 52,900 | 42,574 | 10,326 | 24.3 | |||||||||||||||||||
| Advertising Costs | 31,143 | 47,568 | (16,425) | (34.5) | |||||||||||||||||||
| Intangible Amortization | 6,599 | 4,485 | 2,114 | 47.1 | |||||||||||||||||||
| Professional Services | 12,132 | 9,838 | 2,294 | 23.3 | |||||||||||||||||||
| Bank and Credit Card Related Fees | 22,029 | 15,840 | 6,189 | 39.1 | |||||||||||||||||||
| Gains on Dispositions of Store-Related Assets, net | (10,605) | (2,774) | (7,831) | nmf | |||||||||||||||||||
| Other Miscellaneous Expenses, net | 89,642 | 81,077 | 8,565 | 10.6 | |||||||||||||||||||
| Other Operating Expenses, net | $ | 363,786 | $ | 327,840 | $ | 35,946 | 11.0 | % | |||||||||||||||
| Nine Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| Lease Revenues and Fees | $ | 1,167,958 | $ | 1,240,645 | $ | (72,687) | (5.9) | % | |||||||||||||||
| Retail Sales | 31,580 | 45,606 | (14,026) | (30.8) | |||||||||||||||||||
| Non-Retail Sales | 81,411 | 94,563 | (13,152) | (13.9) | |||||||||||||||||||
| Franchise Royalties and Fees | 17,713 | 19,109 | (1,396) | (7.3) | |||||||||||||||||||
| Other | 579 | 779 | (200) | (25.7) | |||||||||||||||||||
| Total Revenues - Aaron's Business | $ | 1,299,241 | $ | 1,400,702 | $ | (101,461) | (7.2) | % | |||||||||||||||
| Nine Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| Gross Profit | $ | 812,624 | $ | 882,390 | $ | (69,766) | (7.9) | % | |||||||||||||||
| Earnings Before Income Taxes | 105,174 | 182,924 | (77,750) | (42.5) | |||||||||||||||||||
| Nine Months Ended September 30, | Change | ||||||||||||||||||||||
| (In Thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
| Retail Sales | $ | 364,783 | $ | — | $ | 364,783 | nmf | ||||||||||||||||
| Gross Profit | 63,915 | — | 63,915 | nmf | |||||||||||||||||||
| (Loss) Earnings Before Income Taxes | (12,964) | — | (12,964) | nmf | |||||||||||||||||||
| (In Thousands) | Aaron's Business | BrandsMart | Total | ||||||||
Balance at December 31, 2021 | $ | $ | $ | 13,134 | |||||||
| Acquisitions | 62,268 | ||||||||||
| Currency Translation Adjustments | ( | (94) | |||||||||
| Acquisition Accounting Adjustments | ( | ( | (10,692) | ||||||||
| Impairment Loss | ( | (12,933) | |||||||||
Balance at September 30, 2022 | $ | — | $ | 51,683 | $ | 51,683 | |||||
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs 1 | ||||||||||
| July 1, 2022 through July 31, 2022 | — | — | — | $ | 135,847,377 | |||||||||
| August 1, 2022 through August 31, 2022 | — | — | — | 135,847,377 | ||||||||||
| September 1, 2022 through September 30, 2022 | — | — | — | 135,847,377 | ||||||||||
| Total | — | — | ||||||||||||
| EXHIBIT NO. | DESCRIPTION OF EXHIBIT | |||||||
| 10.1* | ||||||||
| 31.1* | ||||||||
| 31.2* | ||||||||
| 32.1* | ||||||||
| 32.2* | ||||||||
| 101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
| 101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | |||||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 104 | The cover page from this Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL (included in Exhibit 101) | |||||||
| *Filed herewith. | ||||||||
THE AARON’S COMPANY, INC. | |||||||||||
| (Registrant) | |||||||||||
| Date: | October 24, 2022 | By: | /s/ C. Kelly Wall | ||||||||
| C. Kelly Wall | |||||||||||
| Chief Financial Officer | |||||||||||
| (Principal Financial Officer) | |||||||||||
| Date: | October 24, 2022 | By: | /s/ Douglass L. Noe | ||||||||
| Douglass L. Noe | |||||||||||
| Vice President, Corporate Controller | |||||||||||
| (Principal Accounting Officer) | |||||||||||
| I, Douglas A. Lindsay, certify that: | |||||||||||||||||
| 1. | I have reviewed this quarterly report on Form 10-Q of The Aaron's Company, Inc.; | ||||||||||||||||
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||||||||||||||
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||||||||||||||
| 4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||||||||||||||||
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||||||||||||||||
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||||||||||||||||
| c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||||||||||||||||
| d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||||||||||||||||
| 5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||||||||||||||||
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||||||||||||||||
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | ||||||||||||||||
| Date: | October 24, 2022 | /s/ Douglas A. Lindsay | ||||||
| Douglas A. Lindsay | ||||||||
| Chief Executive Officer and Director | ||||||||
| (Principal Executive Officer) | ||||||||
| I, C. Kelly Wall, certify that: | |||||||||||||||||
| 1. | I have reviewed this quarterly report on Form 10-Q of The Aaron's Company, Inc.; | ||||||||||||||||
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||||||||||||||
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||||||||||||||
| 4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||||||||||||||||
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||||||||||||||||
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||||||||||||||||
| c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||||||||||||||||
| d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||||||||||||||||
| 5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||||||||||||||||
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||||||||||||||||
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | ||||||||||||||||
| Date: | October 24, 2022 | /s/ C. Kelly Wall | ||||||
| C. Kelly Wall | ||||||||
| Chief Financial Officer (Principal Financial Officer) | ||||||||
| Date: | October 24, 2022 | /s/ Douglas A. Lindsay | |||||||||
Douglas A. Lindsay | |||||||||||
| Chief Executive Officer and Director | |||||||||||
| (Principle Executive Officer) | |||||||||||
| Date: | October 24, 2022 | /s/ C. Kelly Wall | |||||||||
| C. Kelly Wall | |||||||||||
| Chief Financial Officer (Principal Financial Officer) | |||||||||||
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Accounts receivable, allowances | $ 8,474 | $ 7,163 |
| Lease Merchandise, accumulated depreciation and allowances | $ 437,339 | $ 439,745 |
| Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
| Common stock, shares authorized (in shares) | 112,500,000 | 112,500,000 |
| Common stock, shares issued (in shares) | 36,041,939 | 35,558,714 |
| Treasury shares (in shares) | 5,261,461 | 4,580,390 |
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| REVENUES: | ||||
| Revenues | $ 593,384 | $ 452,153 | $ 1,659,850 | $ 1,400,702 |
| COSTS OF REVENUES: | ||||
| Total cost of revenue | 295,637 | 167,511 | 784,009 | 518,312 |
| GROSS PROFIT | 297,747 | 284,642 | 875,841 | 882,390 |
| OPERATING EXPENSES: | ||||
| Personnel Costs | 134,001 | 122,901 | 385,368 | 369,190 |
| Other Operating Expenses, Net | 123,040 | 105,428 | 363,786 | 327,840 |
| Provision for Lease Merchandise Write-Offs | 28,022 | 19,799 | 72,092 | 45,333 |
| Restructuring Expenses, Net | 14,930 | 2,899 | 23,847 | 8,134 |
| Impairment of Goodwill | 12,933 | 0 | 12,933 | 0 |
| Separation Costs | 220 | 397 | 990 | 6,033 |
| Acquisition-Related Costs | 1,659 | 0 | 13,156 | 0 |
| Operating expenses, total | 314,805 | 251,424 | 872,172 | 756,530 |
| OPERATING (LOSS) PROFIT | (17,058) | 33,218 | 3,669 | 125,860 |
| Interest Expense | (3,151) | (322) | (5,964) | (1,117) |
| Other Non-Operating (Expense) Income, Net | (344) | (88) | (2,827) | 1,058 |
| (LOSS) EARNINGS BEFORE INCOME TAXES | (20,553) | 32,808 | (5,122) | 125,801 |
| INCOME TAX (BENEFIT) EXPENSE | (4,937) | 8,460 | (5,696) | 32,155 |
| NET (LOSS) EARNINGS | $ (15,616) | $ 24,348 | $ 574 | $ 93,646 |
| (LOSS) EARNINGS PER SHARE (in dollars per share) | $ (0.51) | $ 0.75 | $ 0.02 | $ 2.79 |
| (LOSS) EARNINGS PER SHARE ASSUMING DILUTION (in dollars per share) | $ (0.51) | $ 0.73 | $ 0.02 | $ 2.74 |
| Lease Revenues and Fees | ||||
| REVENUES: | ||||
| Revenues | $ 372,127 | $ 401,383 | $ 1,167,958 | $ 1,240,645 |
| COSTS OF REVENUES: | ||||
| Costs of goods and services sold | 125,711 | 130,104 | 390,147 | 403,399 |
| Retail Sales | ||||
| REVENUES: | ||||
| Revenues | 188,734 | 12,283 | 392,189 | 45,606 |
| COSTS OF REVENUES: | ||||
| Costs of goods and services sold | 146,292 | 8,344 | 320,635 | 29,750 |
| Non-Retail Sales | ||||
| REVENUES: | ||||
| Revenues | 26,542 | 32,159 | 81,411 | 94,563 |
| COSTS OF REVENUES: | ||||
| Costs of goods and services sold | 23,634 | 29,063 | 73,227 | 85,163 |
| Franchise Royalties and Other Revenues | ||||
| REVENUES: | ||||
| Revenues | $ 5,981 | $ 6,328 | $ 18,292 | $ 19,888 |
Condensed Consolidated Statements of Comprehensive (Losses) Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net (Loss) Earnings | $ (15,616) | $ 24,348 | $ 574 | $ 93,646 |
| Other Comprehensive (Loss) Income: | ||||
| Unrealized (Loss) Gain on Fuel Hedge Derivative Instrument | (235) | 0 | 4 | 0 |
| Foreign Currency Translation Adjustment | (611) | (254) | (719) | 93 |
| Total Other Comprehensive (Loss) Income | (846) | (254) | (715) | 93 |
| Comprehensive (Loss) Income | $ (16,462) | $ 24,094 | $ (141) | $ 93,739 |
Basis and Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis and Summary of Significant Accounting Policies | BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The novel coronavirus ("COVID-19") pandemic, inflationary pressures, general macroeconomic conditions and rising interest rates have led to significant market disruption. For a discussion of trends that we believe have affected our business as a result of the COVID-19 pandemic, see Part I, Item 2. "Management’s Discussion and Analysis of Financial Condition and Results of Operations", including the "COVID-19 Pandemic," "Highlights," "Consolidated Results of Operations" and "Liquidity and Capital Resources", below, and Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission on February 24, 2022 (the "2021 Annual Report"). Description of Spin-off Transaction On November 30, 2020 (the "separation and distribution date"), Aaron's Holdings Company, Inc. completed the previously announced separation of the Aaron's Business segment (the "Pre-Spin Aaron's Business") from Progressive Leasing and Vive and changed its name to PROG Holdings, Inc. (referred to herein as "PROG Holdings" or "Former Parent"). The separation of the Pre-Spin Aaron's Business was effected through a distribution (the "separation," the "separation and distribution," or the "spin-off transaction") of all outstanding shares of common stock of a newly formed company called The Aaron's Company, Inc., a Georgia corporation (the "Company"), to the PROG Holdings shareholders of record as of November 27, 2020. Unless the context otherwise requires or we specifically indicate otherwise, references to "we," "us," "our," and the "Company," refer to The Aaron's Company, Inc., which holds, directly or indirectly, the Pre-Spin Aaron’s Business and all other subsidiaries of the Company, which are wholly owned, as well as other lines of business described in the "Description of Business" section below. Further details of the spin-off transaction are discussed in Part I, Item 1, of the 2021 Annual Report. BrandsMart U.S.A. Acquisition On April 1, 2022, the Company completed the previously announced transaction to acquire a 100% ownership of Interbond Corporation of America, doing business as BrandsMart U.S.A. The Company paid total consideration of approximately $230 million in cash under the terms of the agreement and additional amounts for working capital adjustments and transaction related fees. Refer to Note 2 to these condensed consolidated financial statements for additional information regarding the BrandsMart U.S.A. acquisition. The Company's financial results for the three and nine months ended September 30, 2022 include the results of BrandsMart U.S.A. subsequent to the April 1, 2022 acquisition date. Management believes that the BrandsMart U.S.A. acquisition will strengthen the Company's ability to deliver on its mission of enhancing people’s lives by providing easy access to high quality furniture, appliances, electronics, and other home goods through affordable lease-to-own and retail purchase options. Management also believes that value creation opportunities include leveraging the Company's lease-to-own expertise to provide BrandsMart U.S.A.'s customers enhanced payment options and offering a wider selection of products to millions of Aaron's customers, as well as generating procurement savings and other cost synergies. Description of Business The Company is a leading, technology-enabled, omni-channel provider of lease-to-own ("LTO") and retail purchase solutions of furniture, electronics, appliances, and other home goods across its brands: Aaron's, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven Furniture Industries ("Woodhaven"). As of September 30, 2022, the Company's operating and reportable segments are the Aaron's Business and BrandsMart, each as described below. The Aaron's Business segment is comprised of (i) Aaron's branded Company-operated and franchise-operated stores; (ii) Aarons.com e-commerce platform ("Aarons.com"); (iii) Woodhaven; and (iv) BrandsMart Leasing (collectively, the "Aaron’s Business"). The operations of BrandsMart U.S.A. (excluding BrandsMart Leasing) comprise the BrandsMart segment (collectively, "BrandsMart"). Aaron's Business Segment Since its founding in 1955, Aaron's has been committed to serving the overlooked and underserved customer with a dedication to inclusion and improving the communities in which it operates. Through a portfolio of approximately 1,300 stores and its Aarons.com e-commerce platform, Aaron's, together with its franchisees, provide consumers with LTO and retail purchase solutions for the products they need and want, with a focus on providing its customers with unparalleled customer service, high approval rates, lease plan flexibility, and an attractive value proposition, including competitive monthly payments and total cost of ownership, as compared to other LTO providers. Woodhaven manufactures and supplies a significant portion of the upholstered furniture and bedding leased and sold in Company-operated and franchised Aaron's stores. Launched in 2022, BrandsMart Leasing offers LTO purchase solutions to customers of BrandsMart U.S.A. BrandsMart Segment Founded in 1977, BrandsMart U.S.A. is one of the leading appliance and consumer electronics retailers in the southeast United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The operations of BrandsMart U.S.A. (other than BrandsMart Leasing) comprise the BrandsMart segment. The following table presents store count by ownership type:
1The typical layout for a Company-operated Aaron's store is a combination of showroom, customer service and warehouse space, generally comprising 6,000 to 15,000 square feet. Certain Company-operated Aaron's stores consist solely of a showroom. 2 BrandsMart U.S.A. stores average approximately 100,000 square feet and have been included in this table subsequent to the acquisition date of April 1, 2022. Basis of Presentation The financial statements for the three and nine months ended September 30, 2022 and comparable prior year period are condensed consolidated financial statements of the Company and its subsidiaries, each of which is wholly-owned, and is based on the financial position and results of operations of the Company. Intercompany balances and transactions between consolidated entities have been eliminated. These condensed consolidated financial statements reflect the historical results of operations, financial position and cash flows of the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of the Company's condensed consolidated financial statements in conformity with U.S. GAAP for interim financial information requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. The extent to which the macroeconomic inflationary pressures and COVID-19 pandemic will impact the Company's business will depend on future developments. These developments are uncertain and cannot be precisely predicted at this time. In many cases, management's estimates and assumptions are dependent on estimates of such future developments and may change in the future. The accompanying unaudited condensed consolidated financial statements do not include all information required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in the 2021 Annual Report. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of operating results that may be achieved for any other interim period or for the full year. Reclassifications The following reclassifications have been made to the prior periods to conform to the current period presentation. For all previously reported periods prior to April 1, 2022, the Company presented all revenues derived from lease agreements and the related fees, as well as the sale of both new and returned lease merchandise from our Company-operated Aaron's stores and fees from our Aaron's Club program within one line in the condensed consolidated statements of earnings, presented as lease and retail revenues. Effective April 1, 2022, the Company revised its presentation to separately present revenues derived from lease agreements at our Company-operated Aaron's stores and e-commerce platform and fees from our Aaron's Club program as lease revenues and fees in the condensed consolidated statements of earnings, with the sale of both new and returned lease merchandise from our Company-operated Aaron's stores being classified as retail sales. This revised presentation does not have an impact on total revenues presented in prior periods. Similarly, for all previously reported periods prior to April 1, 2022, the Company presented the depreciation expense associated with lease merchandise as well as the depreciated costs of merchandise sold within one line in the condensed consolidated statements of earnings, presented as the cost of lease and retail revenues. Effective April 1, 2022, the Company revised its presentation to separately present the depreciation expense associated with lease merchandise in the condensed consolidated statements of earnings, with the costs associated with merchandise sold through our Company-operated Aaron's stores presented as retail costs of sales. This revised presentation does not have an impact on total costs of revenues presented in prior periods. For previously reported interim and annual periods prior to December 31, 2021, the Company reported the additions to lease merchandise and the book value of lease merchandise sold or disposed as separate lines within operating activities in the condensed consolidated statements of cash flows. Effective with the year ended December 31, 2021, the Company revised its presentation of changes to lease merchandise to separately present the provision for lease merchandise write-offs, and combine the remaining operating activity-related changes in lease merchandise, with the exception of depreciation of lease merchandise, in a single line under changes in operating assets and liabilities in the condensed consolidated statements of cash flows. This revised presentation and the related adjustments to the prior period presentation do not have an impact on cash provided by operating activities. Accounting Policies and Estimates See Note 1 to the consolidated and combined financial statements in the 2021 Annual Report for an expanded discussion of accounting policies and estimates. (Loss) Earnings Per Share Earnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. The computation of earnings per share assuming dilution includes the dilutive effect of stock options, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), performance share units ("PSUs") and other awards issuable under the Company's employee stock purchase plan ("ESPP") (collectively, "share-based awards") as determined under the treasury stock method, unless the inclusion of such awards would have been anti-dilutive. The following table shows the calculation of weighted-average shares outstanding assuming dilution:
1There was no dilutive effect to the loss per common share for the three months ended September 30, 2022 due to the net loss incurred in the period. Approximately 0.8 million weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the nine months ended September 30, 2022 as the awards would have been anti-dilutive for that period. The weighted-average anti-dilutive share-based awards that were excluded from the computation of earnings per share assuming dilution during the three and nine months ended September 30, 2021 were not significant. Revenue Recognition The Company provides lease and retail merchandise, consisting of appliances, electronics, furniture, and other home goods to its customers for lease under certain terms agreed to by the customer and through retail sales. The Company's Aaron's stores, Aaron's.com e-commerce platform, and BrandsMart Leasing components of the Aaron's Business segment offer leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months. The Aaron's Business segment also earns revenue from the sale of merchandise to customers and Aaron's franchisees, and earns ongoing revenue from Aaron's franchisees in the form of royalties and through advertising efforts that benefit the franchisees. The Company's BrandsMart U.S.A. stores and related brandsmartusa.com e-commerce platform offer the sale of merchandise directly to its customers via retail sales. See Note 5 to these condensed consolidated financial statements for further information regarding the Company's revenue recognition policies and disclosures. Advertising The Company expenses advertising costs as incurred. Advertising production costs are initially recognized as a prepaid advertising asset and are expensed when an advertisement appears for the first time. Total advertising costs were $7.8 million and $31.1 million during the three and nine months ended September 30, 2022, respectively, (three and nine months ended September 30, 2021: $11.2 million and $47.6 million, respectively) and are classified within other operating expenses, net in the condensed consolidated statements of earnings. These advertising costs are presented net of cooperative advertising considerations received from vendors, which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products. The amount of cooperative advertising consideration recorded as a reduction of such advertising costs was $8.3 million and $24.6 million during the three and nine ended September 30, 2022, respectively, (three and nine months ended September 30, 2021: $6.3 million and $16.3 million, respectively). The prepaid advertising asset was $7.7 million and $1.0 million at September 30, 2022 and December 31, 2021, respectively, and is reported within prepaid expenses and other assets on the condensed consolidated balance sheets. Accounts Receivable Accounts receivable consist primarily of receivables due from customers on lease agreements, corporate receivables incurred during the normal course of business (primarily for vendor consideration, third-party warranty providers, and real estate leasing activities) and franchisee obligations. Accounts receivable, net of allowances, consist of the following:
The Company maintains an accounts receivable allowance for the Aaron's Business customer lease agreements, under which its policy is to record a provision for returns and uncollectible contractually due renewal payments based on historical payments experience, which is recognized as a reduction of lease revenues and fees within the condensed consolidated statements of earnings. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends. The Company writes off customer lease receivables that are 60 days or more past due on pre-determined dates twice monthly. The Company also maintains an allowance for outstanding franchisee accounts receivable. The Company's policy is to estimate future losses related to certain franchisees that are deemed to have a higher risk of non-payment and record an allowance for these estimated losses. The estimated allowance on franchisee accounts receivable includes consideration of the financial position of each franchisee and qualitative consideration of potential losses associated with uncertainties impacting the franchisee's ability to satisfy their obligations. Uncertainties include inflationary pressures in the current macroeconomic environment and the normalization of business trends associated with the COVID-19 pandemic. Accordingly, actual accounts receivable write-offs could differ from the allowance. The provision for uncollectible franchisee accounts receivable is recorded as bad debt expense in other operating expenses, net within the condensed consolidated statements of earnings. The allowance related to remaining corporate receivables is not significant for the three and nine months ended September 30, 2022. The following table shows the components of the accounts receivable allowance:
The following table shows the components of the accounts receivable provision, which includes amounts recognized for bad debt expense and the provision for returns and uncollected payments:
Lease Merchandise The Company’s lease merchandise is recorded at the lower of depreciated cost, including overhead costs from our distribution centers, or net realizable value. The cost of merchandise manufactured by our Woodhaven operations is recorded at cost and includes overhead from production facilities, shipping costs and warehousing costs. The Company begins depreciating lease merchandise at the earlier of 12 months and one day from its purchase of the merchandise or when the merchandise is leased to customers. Lease merchandise fully depreciates over the lease agreement period when on lease, generally 12 to 24 months, and generally 36 months when not on lease. Depreciation is accelerated upon early payout. The following is a summary of lease merchandise, net of accumulated depreciation and allowances:
1 Includes Woodhaven raw materials, finished goods and work-in-process inventory that has been classified within lease merchandise in the condensed consolidated balance sheets of $19.7 million and $20.2 million as of September 30, 2022 and December 31, 2021, respectively. The Aaron's store-based operations' policies require weekly merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. Monthly cycle counting procedures are performed at both the Aaron's distribution centers and Woodhaven manufacturing facilities. Physical inventories are also taken at the manufacturing facilities annually. The Company also monitors merchandise levels and mix by division, store, and distribution center, as well as the average age of merchandise on hand. If obsolete merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off. Generally, all merchandise not on lease is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off and is included as a component of the provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company records a provision for write-offs using the allowance method, which is included within lease merchandise, net within the condensed consolidated balance sheets. The allowance method for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based primarily on historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as seasonality and the impacts of uncertainty surrounding inflationary pressures in the current macroeconomic environment and the normalization of business trends associated with the COVID-19 pandemic on our customers. Therefore, actual lease merchandise write-offs could differ from the allowance. The provision for write-offs is included in provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company writes off lease merchandise on lease agreements that are 60 days or more past due on pre-determined dates twice monthly. The following table shows the components of the allowance for lease merchandise write-offs:
Merchandise Inventories The Company’s merchandise inventories are stated at the lower of weighted average cost or net realizable value and consist entirely of merchandise held for sale by the BrandsMart segment. In-bound freight-related costs from vendors, net of allowances and vendor rebates, are included as part of the net cost of merchandise inventories. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within retail cost of sales in the condensed consolidated statements of earnings. The Company periodically evaluates aged and distressed inventory and establishes an inventory markdown which represents the excess of the carrying value over the amount the Company expects to realize from the ultimate sale of the inventory. Markdowns establish a new cost basis for the inventory. Estimated losses related to markdowns of merchandise inventories and write-offs of merchandise inventories associated with the Company's cycle count processes are included within retail cost of sales in the condensed consolidated statements of earnings. There were no significant markdown provisions recorded during the three and nine months ended September 30, 2022.
Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following:
1 Includes restricted cash of $2.5 million held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies. Assets Held for Sale Certain properties, consisting of parcels of land and commercial buildings, and certain company-owned vehicles met the held for sale classification criteria as of September 30, 2022 and December 31, 2021. Assets held for sale are recorded at the lower of their carrying value or fair value less estimated cost to sell and are classified within prepaid expenses and other assets in the condensed consolidated balance sheets. Depreciation is suspended on assets upon classification to held for sale. Gains and losses related to the sale of assets held for sale are recorded in other operating expenses, net or restructuring expenses, net (if the asset is a part of the Company's restructuring programs further described in Note 7 to these condensed consolidated financial statements) in the condensed consolidated statements of earnings. Such gains and losses were not significant for the three and nine months ended September 30, 2022 and September 30, 2021. Management estimated the fair values of real estate properties using the market values for similar properties. Real estate properties represent $0.7 million and $1.2 million as of September 30, 2022 and December 31, 2021, respectively. These properties are considered Level 2 assets as defined below. The carrying amount of all assets held for sale as of September 30, 2022 and December 31, 2021 is $0.7 million and $1.6 million, respectively. Sale-Leaseback Transactions During the nine months ended September 30, 2022, the Company entered into four sale and leaseback transactions related to seven Company-owned Aaron's store properties for a total sales price of $12.9 million. Such proceeds are presented within proceeds from dispositions of property, plant and equipment in the condensed consolidated statements of cash flows. The Company recognized gains of $2.8 million and $8.5 million associated with these transactions during the three and nine months ended September 30, 2022, respectively, which were classified within other operating expenses, net in the condensed consolidated statements of earnings. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following:
Estimated Claims Liability Costs Estimated claims liability costs are accrued primarily for workers compensation and vehicle liability, as well as general liability and group health insurance benefits provided to team members. These liabilities are recorded within estimated claims liability costs within accounts payable and accrued expenses in the condensed consolidated balance sheets. Estimates for these claims liabilities are made based on actual reported but unpaid claims and actuarial analysis of the projected claims run off for both reported and incurred but not reported claims. This analysis is based upon an assessment of the likely outcome or historical experience and considers a variety of factors, including the actuarial loss forecasts, company-specific development factors, general industry loss development factors and third-party claim administrator loss estimates of individual claims. The Company makes periodic prepayments to its insurance carriers to cover the projected claims run off for both reported and incurred but not reported claims, considering its retention or stop loss limits. In addition, we have prefunding balances on deposit and other insurance receivables with the insurance carriers which are recorded within prepaid expenses and other assets in our condensed consolidated balance sheets. Segment Reporting As of September 30, 2022, the Company has two operating and reportable segments: Aaron's Business and BrandsMart. During the three and nine months ended September 30, 2022, the Company changed its composition of reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes separate segments for the Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs. The Company has retroactively adjusted, for all periods presented, its segment disclosures to align with the current composition of reportable segments. The Aaron's Business segment is comprised of the Pre-Spin Aaron's Business, which provides consumers with LTO and retail purchase solutions through the Company's Aaron's stores in the United States and Canada and the Aaron's.com 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 BrandsMart Leasing, which offers lease-to-own solutions to BrandsMart U.S.A. customers, and Woodhaven, which manufactures and supplies a significant portion of the upholstered furniture and bedding leased and sold in Company-operated and franchised Aaron's stores. The BrandsMart segment is comprised of the operations of BrandsMart U.S.A. (excluding BrandsMart Leasing), which is one of the leading appliance and consumer electronics retailers in the southeast United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. Goodwill Goodwill represents the excess of the purchase price paid over the fair value of the identifiable net tangible and intangible assets acquired in connection with business acquisitions. The acquisition of BrandsMart U.S.A. in the second quarter of the current year resulted in the recognition of approximately $51.7 million of goodwill, inclusive of measurement period adjustments further described in Note 2 to these condensed consolidated financial statements. The following table provides information related to the carrying amount of goodwill by operating segment.
The Company’s goodwill is not amortized but is subject to an impairment test at the reporting unit level annually as of October 1 and more frequently if events or circumstances indicate that an interim impairment may have occurred. An interim goodwill impairment test is required if the Company believes it is more likely than not that the carrying amount of its reporting unit exceeds the reporting unit's fair value. The Company concluded that the need for an interim goodwill impairment test was triggered for the Aaron's Business and BrandsMart reporting units during the three months ended September 30, 2022. Factors that led to this conclusion include: (i) the continued decline in the Company's stock price and market capitalization during the third quarter of 2022; and (ii) uncertainty with regard to the short-term and long-term impacts that adverse macroeconomic conditions, including inflation and rising interest rates, may have on the financial health of our Aaron's Business customers and franchisees. During the three months ended September 30, 2022, the Company determined that the Aaron's Business goodwill was fully impaired and recorded a goodwill impairment loss of $12.9 million during the three months ended September 30, 2022. The Company engaged the assistance of a third-party valuation firm to perform the interim goodwill impairment tests for the Aaron's Business and BrandsMart reporting units. This entailed an assessment of the Aaron's Business and BrandsMart reporting units' fair values relative to their respective carrying values that was derived using a combination of both income and market approaches and by performing a market capitalization reconciliation, which included an assessment of the control premium implied from the Company's estimated fair values of its reporting units. The fair value measurement involved significant unobservable inputs (Level 3 inputs, as discussed more fully below). The income approach utilized the discounted future expected cash flows, which required assumptions about short-term and long-term revenue growth or decline rates, operating margins, capital requirements, and a weighted-average cost of capital. The market approach, which includes the guideline public company method, utilized pricing multiples derived from an analysis of comparable publicly traded companies. We believe the comparable companies we evaluate as marketplace participants serve as an appropriate reference when calculating fair value because those companies have similar risks, participate in similar markets, provide similar products and services for their customers and compete with us directly. The short-term and long-term revenue growth rates, operating margins, capital requirements and weighted-average cost of capital are the assumptions that are most sensitive and susceptible to change as they require significant management judgment. The Company performed sensitivity analyses for the Aaron's Business reporting unit assessment including considering reasonably possible alternative assumptions for long-term growth or decline rates and weighted-average cost of capital rates. Each of the sensitivity analyses performed supported the conclusion of a full impairment of the Aaron's Business goodwill. The Company concluded that given the recency of the purchase transaction, the provisional nature of the goodwill balance and carrying value as our acquisition accounting is preliminary and subject to adjustment during the measurement period, and the results of our current quarter impairment evaluation, the BrandsMart reporting unit goodwill is not impaired as of September 30, 2022. The Company may be required to recognize material impairments to the BrandsMart goodwill balance in the future if: (i) the Company fails to successfully execute on one or more elements of the BrandsMart strategic plan; (ii) actual results are unfavorable to the Company's estimates and assumptions used to calculate fair value; (iii) the BrandsMart carrying value increases without an associated increase in the fair value; and/or (iv) BrandsMart is materially impacted by further deterioration of macroeconomic conditions, including inflation and rising interest rates. Acquisition-Related Costs Acquisition-related costs of $1.7 million and $13.2 million were incurred during the three and nine months ended September 30, 2022 and primarily represent third-party consulting, banking and legal expenses associated with the acquisition of BrandsMart U.S.A completed April 1, 2022. Related Party Transactions Effective as of the BrandsMart U.S.A. acquisition date, the Company entered into lease agreements for six store locations retained by the sellers of BrandsMart U.S.A., including Michael Perlman, who is currently an employee of the Company. The agreements include initial terms of ten years, with options to renew each location for up to 20 years thereafter. The Company has recorded these leases within operating lease right-of-use assets and operating lease liabilities in the Company's condensed consolidated balance sheets. The six operating leases have aggregate annual rental payments of approximately $10.0 million and are considered to be above market. The value of the off-market element of the lease agreements has been included as a component of the consideration transferred to the sellers of BrandsMart U.S.A. and has been recognized as a reduction to the operating lease right-of-use-asset. The total amounts paid to the sellers of BrandsMart U.S.A. during the three and nine months ended September 30, 2022 related to real estate activities, including rental payments, maintenance and taxes, were approximately $3.2 million and $6.5 million, respectively. As of September 30, 2022, the Company has an asset of $1.6 million included within prepaid expenses and other current assets in the condensed consolidated balance sheets related to an estimate of the finalized working capital settlement due from the sellers of BrandsMart U.S.A. Stockholders' Equity Changes in stockholders' equity for the three and nine months ended September 30, 2022 and 2021 are as follows:
Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company measures a liability related to its non-qualified deferred compensation plan, which represents benefits accrued for participants that are part of the plan and is valued at the quoted market prices of the participants' investment election, at fair value on a recurring basis. The Company measures assets held for sale at fair value on a nonrecurring basis and records impairment charges when they are deemed to be impaired. Additionally, as discussed above, the Company performed an interim goodwill impairment analysis for the Aaron's Business and BrandsMart reporting units as of August 31, 2022, which required multiple Level 3 inputs and assumptions, such as estimates about costs of capital, future projected performance and cash flows. The fair values of the Company's other current financial assets and liabilities, such as cash and cash equivalents, accounts receivable and accounts payable, approximate their carrying values due to their short-term nature. The Company's outstanding debt borrowings as of September 30, 2022 and December 31, 2021 were subject to a variable interest rate. Therefore, the fair value of these borrowings also approximates its carrying value. These assets and liabilities are measured within Level 2 of the fair value hierarchy. The Company also measures certain non-financial assets at fair value on a nonrecurring basis, such as goodwill, intangible assets, operating lease right-of-use assets, and property, plant, and equipment, in connection with periodic evaluations for potential impairment. Recent Accounting Pronouncements Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The standard provides temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the cessation of the publication of certain tenors of the London Interbank Overnight ("LIBO") rate on December 31, 2021, with complete elimination of the publication of the LIBO rate by June 30, 2023. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts referencing the LIBO rate. The Company's outstanding debt borrowing as of December 31, 2021 included an election of a LIBO rate that has not yet been eliminated. Also, the Company modified its debt agreement in conjunction with the acquisition of BrandsMart U.S.A. Borrowings under the new debt agreement bear interest at a rate per annum equal to, at the option of the Company, (i) the forward-looking term rate based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin ranging between 1.50% and 2.25%, based on the Company's Total Net Debt to EBITDA Ratio (as defined in the debt agreement), or (ii) the base rate plus an applicable margin, which is 1.00% lower than the applicable margin for SOFR loans. Therefore, there is no impact on the consolidated financial statements of the Company related to the adoption of ASU 2020-04. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which requires contract assets and contract liabilities (e.g., deferred revenue) acquired in a business combination to be recognized and measured in accordance with ASC Topic 606, Revenue from Contracts with Customers, rather than at its assumed acquisition date fair value. The Company elected to early adopt ASU 2021-08 in the second quarter of 2022, and therefore accounted for deferred revenue contracts acquired in connection with the BrandsMart U.S.A. acquisition under this standard. The adoption of the standard has no retrospective impact to the Company's historical consolidated financial statements.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions | ACQUISITIONS BrandsMart U.S.A. Acquisition On April 1, 2022, the Company completed the previously announced acquisition of all of the issued and outstanding shares of capital stock of BrandsMart U.S.A. Founded in 1977, BrandsMart U.S.A. is one of the leading appliance and consumer electronics retailers in the southeastern United States and one of the largest appliance retailers in the country, with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The Company paid total consideration of approximately $230 million in cash under the terms of the agreement and additional amounts for working capital adjustments and transaction related fees. Consideration transferred also included the off-market value associated with certain operating leases entered into in conjunction with the transaction, which is further described in the table below. Management believes that the BrandsMart U.S.A. acquisition will strengthen the Company's ability to deliver on its mission of enhancing people’s lives by providing easy access to high quality furniture, appliances, electronics, and other home goods through affordable lease-to-own and retail purchase options. Management also believes that value creation opportunities include leveraging the Company's lease-to-own expertise to provide BrandsMart U.S.A.'s customers enhanced payment options and offering a wider selection of products to millions of Aaron's customers, as well as generating procurement savings and other cost synergies. The BrandsMart U.S.A. acquisition has been accounted for as a business combination, and the BrandsMart results of operations are included in the Company's results of operations from the April 1, 2022 acquisition date. BrandsMart contributed revenues of $364.8 million and net losses of $13.0 million from April 1, 2022 through the period end date, September 30, 2022. BrandsMart net losses include a one-time, non-cash charge for a fair value adjustment of $23.1 million made to the acquired merchandise inventories, which was included within "Retail Cost of Sales" in the condensed consolidated statements of earnings. Preliminary Acquisition Accounting The consideration transferred and the preliminary estimated fair values of the assets acquired and liabilities assumed in the BrandsMart U.S.A. acquisition as of the April 1, 2022 acquisition date are as follows:
1As previously reported in the notes to condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022. 2The measurement period adjustments primarily relate to further refinement of an appropriate discount rate used to value the intangible assets as of the acquisition date, adjustments to the working capital settlement agreement, and opening balance adjustments to merchandise inventories. 3Effective as of the acquisition date, the Company entered into lease agreements for six store locations retained by the sellers of BrandsMart U.S.A. The agreement includes initial terms of ten years, with options to renew each location for up to 20 years thereafter. The annual rent is considered to be above market. The value of the off-market element of the lease agreements has been included in consideration transferred and as a reduction to the operating lease right-of-use-asset. 4Identifiable intangible assets are further disaggregated in the table set forth below. 5Includes restricted cash of $2.5 million held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies. 6The total goodwill recognized in conjunction with the BrandsMart U.S.A. acquisition, all of which is expected to be deductible for tax purposes, has been assigned to the BrandsMart operating segment and reporting unit. The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, primarily due to synergies created from the expected future benefits to the Company. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. The fair value estimations are still preliminary as they could be subject to change as the Company finalizes all assessments over the assets and liabilities that were acquired as part of the BrandsMart U.S.A. acquisition. The preliminary estimated values of intangible assets attributable to the BrandsMart U.S.A. acquisition are comprised of the following:
Within the three and nine months ended September 30, 2022, the Company incurred $1.7 million and $13.2 million of transaction costs in connection with the acquisition of BrandsMart U.S.A. These costs were included within "Acquisition-Related Costs" in the condensed consolidated statements of earnings. Acquisition-Related Costs that will affect the Company's income statement beyond twelve months after the acquisition date are not expected to be material. Pro Forma Financial Information The following table presents unaudited consolidated pro forma information as if the acquisition of BrandsMart U.S.A. had occurred on January 1, 2021, compared to actual, historical results.
The unaudited pro forma combined financial information does not reflect the costs of any integration activities or dis-synergies, or benefits that may result from future costs savings due to revenue synergies, procurement savings or operational efficiencies expected to result from the BrandsMart U.S.A. acquisition. Accordingly, the unaudited pro forma financial information above is not intended to represent or be indicative of the consolidated results of operations of the Company that would have been reported had the BrandsMart U.S.A. acquisition been completed as of the dates presented, and should not be construed as representative of the future consolidated results of operations or financial condition of the combined entity. The unaudited pro forma combined financial information for the three and nine months ended September 30, 2022 and September 30, 2021 includes adjustments to, among other things, record depreciation expense, amortization expense and income taxes based upon the fair value allocation of the purchase price to BrandsMart U.S.A.'s tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2021. Interest expense on the additional debt incurred by the Company to fund the acquisition and personnel costs incurred related to the acquisition are also included in the unaudited pro forma combined information as if the BrandsMart U.S.A. acquisition had occurred on January 1, 2021 for the pro forma three and nine months ended September 30, 2022 and 2021. Acquisition-related costs of $13.2 million and a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.1 million were recognized during the nine months ended September 30, 2022. These costs are excluded from the unaudited pro forma net earnings for the three and nine months ended September 30, 2022 and are instead reflected in the unaudited pro forma net earnings for the nine months ended September 30, 2021 as though they were incurred on January 1, 2021.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurement | FAIR VALUE MEASUREMENT Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes financial liabilities measured at fair value on a recurring basis:
The Company maintains The Aaron's Company, Inc. Deferred Compensation Plan, which is an unfunded, nonqualified deferred compensation plan for a select group of management, highly compensated employees and non-employee directors. The liability represents benefits accrued for plan participants and is valued at the quoted market prices of the participants’ investment elections, which consist of equity and debt "mirror" funds. As such, the Company has classified the deferred compensation liability as a Level 2 liability, which is recorded in accounts payable and accrued expenses in the condensed consolidated balance sheets. Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table summarizes non-financial assets measured at fair value on a nonrecurring basis:
Assets classified as held for sale are recorded at the lower of carrying value or fair value less estimated costs to sell, and any adjustment is recorded in other operating expenses, net or restructuring expenses, net (if the asset is a part of the Company's restructuring programs as described in Note 7 to these condensed consolidated financial statements) in the condensed consolidated statements of earnings. The highest and best use of the primary components of assets held for sale are as real estate land parcels for development or real estate properties for use or lease; however, the Company has chosen not to develop or use these properties, and plans to sell the properties to third parties as quickly as practicable.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indebtedness | INDEBTEDNESS The following is a summary of the Company's debt, net of unamortized debt issuance costs as applicable:
1 Includes unamortized debt issuance costs of $0.8 million. The Company has included $3.1 million and $1.7 million of debt issuance costs as of September 30, 2022 and December 31, 2021, respectively, related to the new and previous revolving credit facility, within prepaid expenses and other assets in the condensed consolidated balance sheets. 2 The amount outstanding on the Swing Line Loans as of December 31, 2021 is related to the Previous Credit Facility, as further described below. Revolving Credit Facility and Term Loan To finance the BrandsMart U.S.A. acquisition, on April 1, 2022 the Company entered into a new unsecured credit facility (the "Credit Facility") which replaced its previous $250 million unsecured credit facility dated as of November 9, 2020 (as amended, the "Previous Credit Facility"). The Previous Credit Facility is further described in Note 7 to the consolidated and combined financial statements of the 2021 Annual Report. The Credit Facility provides for a $175 million term loan (the "Term Loan") and a $375 million revolving credit facility (the "Revolving Facility"), which includes (i) a $35 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $35 million sublimit for swing line loans on customary terms. The Company pays a commitment fee on unused balances related to the revolving facility, which ranges from 0.20% to 0.30% as determined by the Company's ratio of total net debt to EBITDA (as defined by the agreement). On April 1, 2022, the Company borrowed $175 million under the Term Loan and $117 million under the Revolving Facility to finance the purchase price for the BrandsMart U.S.A. acquisition and other customary acquisition and financing-related closing costs and adjustments. The Company expects that future additional borrowings under the Revolving Facility will be used to provide for working capital and capital expenditures, to finance future permitted acquisitions and for other general corporate purposes. As of September 30, 2022, $175.0 million and $85.0 million remained outstanding under the Term Loan and Revolving Facility, respectively. Borrowings under the Revolving Facility and the Term Loan bear interest at a rate per annum equal to, at the option of the Company, (i) the forward-looking term rate based on SOFR plus an applicable margin ranging between 1.50% and 2.25%, based on the Company's Total Net Debt to EBITDA Ratio, or (ii) the base rate plus an applicable margin, which is 1.00% lower than the applicable margin for SOFR loans. The loans and commitments under the Revolving Facility mature or terminate on April 1, 2027. The Term Loan amortizes in quarterly installments, commencing on December 31, 2022, in an aggregate annual amount equal to (i) 2.50% of the original principal amount of the Term Loan during the first and second years after the closing date, (ii) 5.00% of the original principal amount of the Term Loan during the third, fourth and fifth years after the closing date, with the remaining principal balance of the Term Loan to be due and payable in full on April 1, 2027. Franchise Loan Facility Amendment On April 1, 2022, the Company also entered into a new $12.5 million unsecured franchise loan facility (the "Franchise Loan Facility"), which replaced its previous $15.0 million amended and restated unsecured franchise loan facility dated as of November 10, 2021. The Franchise Loan Facility operates as a guarantee by the Company of certain debt obligations of certain Aaron's franchisees (the "Borrower") under a franchise loan program. In the event these franchisees are unable to meet their debt service payments or otherwise experience an event of default, the Company would be unconditionally liable for the outstanding balance of the franchisees’ debt obligations under the Franchise Loan Facility, which would be due in full within 90 days of such event of default. Borrowings under the Franchise Loan Facility bear interest at a rate per annum equal to SOFR plus an applicable margin ranging between 1.50% and 2.25%, based on the Company's Total Net Debt to EBITDA Ratio (as defined in the Franchise Loan Facility). The Franchise Loan Facility is available for a period of 364 days commencing on April 1, 2022, and permits the Borrower to request extensions for additional 364-day periods. Financial Covenants The Credit Facility and the Franchise Loan Facility contain customary financial covenants including (a) a maximum Total Net Debt to EBITDA Ratio of 2.75 to 1.00 and (b) a minimum Fixed Charge Coverage Ratio of 1.75 to 1.00. If the Company fails to comply with these covenants, the Company will be in default under these agreements, and all borrowings outstanding could become due immediately. Under the Credit Facility and Franchise Loan Facility, the Company may pay cash dividends in any year so long as, after giving pro forma effect to the dividend payment, the Company maintains compliance with its financial covenants and no event of default has occurred or would result from the payment. The Company is in compliance with all of these covenants at September 30, 2022. Inventory Financing Agreement BrandsMart U.S.A. maintains an inventory financing agreement with a lender that provides financing up to $65.0 million to purchase merchandise inventories from certain vendors as defined in the agreement. Amounts borrowed by BrandsMart U.S.A. under the inventory loan are to be repaid based on the payment terms (pay-as-sold or scheduled payment program) as defined in the agreement, with all borrowings due within 50 days. The inventory loan is collateralized by all personal property of the BrandsMart segment, including merchandise inventories, equipment and other goods. Interest is due monthly on the outstanding principal based on the higher of prime-rate, 1 month LIBOR or 3-month LIBOR, commencing typically and only after 30 days of the borrowing or the free floor period as defined in the agreement. The inventory financing agreement is terminable with 30 days prior written notice from one party to the other. The inventory loan contains certain affirmative and negative covenants, which, among other things, restricts encumbrances of certain BrandsMart segment assets and obtaining additional debt. As of September 30, 2022, $14.7 million was outstanding on the inventory loan, and the Company was in compliance with all terms of the agreement.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition | REVENUE RECOGNITION The following table disaggregates revenue by source:
1 Includes revenues from Canadian operations of $4.6 million and $14.2 million during the three and nine months ended September 30, 2022, respectively (three and nine months ended September 30, 2021: $5.5 million and $17.4 million, respectively), which are primarily lease revenues and fees. Lease Revenues and Fees The Aaron's Business segment, which includes BrandsMart Leasing, provides lease merchandise, consisting of furniture, appliances, electronics, computers, and other home goods to their customers for lease under certain terms agreed to by the customer. The Aaron's Business segment offers leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months and does not require deposits upon inception of customer agreements. The customer has the right to acquire ownership either through an early purchase option or through payment of all required lease payments through the end of the ownership plan. Aaron's also offers customers the option to obtain a membership in the Aaron’s Club program. The benefits to customers of the Aaron's Club program are separated into three general categories: (a) lease protection benefits; (b) health & wellness discounts; and (c) dining, shopping and consumer savings. Lease agreements offered by the Aaron's Business segment including the Aaron's Club program memberships and BrandsMart Leasing, are cancellable at any time by either party without penalty, and as such, these offerings are renewable period to period arrangements. Lease revenues related to the leasing of merchandise and Aaron's Club membership fees are recognized as revenue in the month they are earned. Payments received prior to the month earned are recorded as deferred lease revenue, and this amount is included in customer deposits and advance payments in the accompanying condensed consolidated balance sheets. Lease payments due but not received prior to month end are recorded as accounts receivable in the accompanying consolidated balance sheets. Lease revenues are recorded net of a provision for returns and uncollectible renewal payments. All of Aaron's customer lease agreements, including BrandsMart Leasing, are considered operating leases. The Company maintains ownership of the lease merchandise until all payment obligations are satisfied under lease agreements. Initial direct costs related to customer agreements are expensed as incurred and have been classified as other operating expenses, net in the condensed consolidated statements of earnings. The statement of earnings effects of expensing the initial direct costs as incurred are not materially different from amortizing initial direct costs over the lease ownership plan. Substantially all lease revenues and fees were within the scope of ASC 842, Leases, during the three and nine months ended September 30, 2022 and 2021. The Company had $6.9 million and $20.9 million of other revenue during the three and nine months ended September 30, 2022, respectively, (three and nine months ended September 30, 2021: $7.1 million and $20.1 million, respectively) within the scope of ASC 606, Revenue from Contracts with Customers, which is included in lease revenues and fees above. Lease revenues and fees are recorded within lease revenues and fees in the accompanying condensed consolidated statements of earnings. Retail Sales Revenues from the retail sale of merchandise inventories and lease merchandise to individual consumers are recognized at the point of sale and are recorded within retail sales in the accompanying condensed consolidated statements of earnings. Generally, the transfer of control occurs near or at the point of sale for retail sales. For the retail sale of merchandise inventories, an additional protection plan can be purchased by BrandsMart U.S.A. customers that provides extended warranty coverage on their product purchases, with payment being due for this protection at the point of sale. A third-party underwriter assumes the risk associated with the coverage and is primarily responsible for fulfillment. The Company is an agent to the contract and records the fixed commissions. These fixed commissions on the warranty coverages are included within retail sales in the accompanying condensed consolidated statements of earnings on a net basis. All retail sales revenue is within the scope of ASC 606, Revenue from Contracts with Customers, during the three and nine months ended September 30, 2022 and 2021. Non-Retail Sales Revenues for the non-retail sale of merchandise to Aaron's franchisees are recognized when control transfers to the franchisee, which is upon delivery of the merchandise and are recorded within non-retail sales in the accompanying condensed consolidated statements of earnings. All non-retail sales revenue is within the scope of ASC 606, Revenue from Contracts with Customers, during the three and nine months ended September 30, 2022 and 2021. Franchise Royalties and Fees We have existing agreements with our current Aaron's franchisees to govern the operations of franchised stores. Our standard agreement is for a term of ten years, with one ten-year renewal option. Franchisees are obligated to remit to us royalty payments of 6% of the weekly cash revenue payments received, which is recognized as the fees become due. The Company guarantees certain debt obligations of some of the franchisees and receives guarantee fees based on the outstanding debt obligations of such franchisees. Refer to Note 6 to these condensed consolidated financial statements for additional discussion of the franchise-related guarantee obligation. The Company also charges fees for advertising efforts that benefit the franchisees, which are recognized at the time the advertising takes place. Substantially all franchise royalties and fee revenue is within the scope of ASC 606, Revenue from Contracts with Customers. Of the franchise royalties and fees, $4.6 million and $14.1 million during the three and nine months ended September 30, 2022, respectively (three and nine months ended September 30, 2021: $4.8 million and $15.0 million, respectively), is related to franchise royalty income that is recognized as the fees become due. The remaining revenue is primarily related to advertising fees charged to franchisees. Franchise royalties and fees are recorded within franchise royalties and other revenues in the accompanying condensed consolidated statements of earnings.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
9 Months Ended |
|---|---|
Sep. 30, 2022 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees The Company has guaranteed certain debt obligations of some of its Aaron's franchisees under a franchise loan program (the "Franchise Loan Facility") as described in further detail in Note 4 to these condensed consolidated financial statements. The Company has recourse rights to franchisee assets securing the debt obligations, which consist primarily of lease merchandise and fixed assets. Since the inception of the franchise loan program in 1994, the Company's losses associated with the program have been insignificant. However, such losses could be significant in a future period due to potential adverse trends in the liquidity and/or financial performance of Aaron's franchisees resulting in an event of default or impending defaults by franchisees. The Company entered into a new Franchise Loan Facility agreement on April 1, 2022, which reduced the total commitment under the Franchise Loan Facility from $15.0 million to $12.5 million and extended the commitment termination date to March 31, 2023. At September 30, 2022, the maximum amount that the Company would be obligated to repay in the event franchisees defaulted was $6.5 million. The Company is subject to financial covenants under the Franchise Loan Facility as detailed in Note 4 to these condensed consolidated financial statements. At September 30, 2022, the Company was in compliance with all covenants under the Franchise Loan Facility agreement. The Company records a liability related to estimated future losses from repaying the franchisees' outstanding debt obligations upon any possible future events of default. This liability is included in accounts payable and accrued expenses in the condensed consolidated balance sheets and was $1.8 million and $2.2 million at September 30, 2022 and December 31, 2021, respectively. The balances at September 30, 2022 and December 31, 2021 included qualitative consideration of potential losses associated with uncertainties impacting the operations and liquidity of our franchisees. Uncertainties include inflationary pressures in the current macroeconomic environment and the normalization of business trends associated with the COVID-19 pandemic. Legal Proceedings From time to time, the Company is party to various legal and regulatory proceedings arising in the ordinary course of business, certain of which have been described below. The Company establishes an accrued liability for legal and regulatory proceedings when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. The Company continually monitors its litigation and regulatory exposure and reviews the adequacy of its legal and regulatory reserves on a quarterly basis. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters due to the inherent uncertainty in litigation, regulatory and similar adversarial proceedings, and substantial losses from these proceedings or the costs of defending them could have a material adverse impact upon the Company’s business, financial position, and results of operations. The Company had accrued $1.9 million and $1.7 million at September 30, 2022 and December 31, 2021, respectively, for pending legal and regulatory matters for which it believes losses are probable and is management’s best estimate of its exposure to loss. The Company records these liabilities in accounts payable and accrued expenses in the condensed consolidated balance sheets. The Company estimates that the aggregate range of reasonably possible loss in excess of accrued liabilities for such probable loss contingencies is between zero and $0.5 million. At September 30, 2022, the Company estimated that the aggregate range of loss for all material pending legal and regulatory proceedings for which a loss is reasonably possible, but less likely than probable (i.e., excluding the contingencies described in the preceding paragraph), is between zero and $0.5 million. Those matters for which a reasonable estimate is not possible are not included within estimated ranges and, therefore, the estimated ranges do not represent the Company's maximum loss exposure. The Company's estimates for legal and regulatory accruals, aggregate probable loss amounts and reasonably possible loss amounts, are all subject to the uncertainties and variables described above. Regulatory Inquiries In the first quarter of 2021, Aaron's, LLC, along with a number of other lease-to-own companies, received a subpoena from the California Department of Financial Protection and Innovation (the "DFPI") requesting the production of documents regarding Aaron's compliance with state consumer protection laws. The Company is cooperatively engaging with the DFPI in response to its inquiry. Although the Company believes it is in compliance with all applicable consumer protection laws and regulations in California, this inquiry ultimately could lead to an enforcement action and/or a consent order, and substantial costs, including legal fees, fines, penalties, and remediation expenses. Other Contingencies Management regularly assesses the Company's insurance deductibles, monitors litigation and regulatory exposure with the Company's attorneys, and evaluates its loss experience. The Company also enters into various contracts in the normal course of business that may subject it to risk of financial loss if counterparties fail to perform their contractual obligations.
|
Restructuring |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring | RESTRUCTURING Operational Efficiency and Optimization Restructuring Program During the third quarter of 2022, the Company initiated an operational efficiency and optimization restructuring program intended to strengthen operational efficiencies and optimize the Company’s overall costs. This initiative includes the closure and consolidation of underperforming stores, professional advisory fees, the centralization and optimization of store support center functions, and the optimization of our manufacturing and distribution center operations. Management believes that such actions will realign the Company’s operational focus and allow us to optimally allocate capital resources to better support its long-term strategic goals. The program resulted in the closure or consolidation of 22 Company-operated Aaron's stores during the three months ended September 30, 2022. Total net restructuring expenses under the Operational Efficiency and Optimization Restructuring Program of $6.0 million were recorded for the three months ended September 30, 2022. Restructuring expenses were recorded within the Unallocated Corporate category of segment reporting and were comprised mainly of operating lease right-of-use asset and fixed asset impairment charges and professional advisory fees. As management continues to execute on its long-term plan, additional restructuring charges are expected to result from our Operational Efficiency and Optimization Restructuring Program, primarily related to professional advisory fees, operating lease right-of-use asset and fixed asset impairments due to further rationalization of our store portfolio, costs optimization initiatives at our manufacturing and distribution center operations, and other cost cutting initiatives at the Company's store support center operations. However, the extent of future restructuring charges is not estimable at this time. Additionally, we expect future restructuring expenses (reversals) due to potential future early buyouts of leases with landlords, as well as continuing variable occupancy costs related to closed stores. Real Estate Repositioning and Optimization Restructuring Program During the first quarter of 2020, the Company initiated a real estate repositioning and optimization restructuring program. This program includes a strategic plan to remodel, reposition, and consolidate our Company-operated Aaron's store footprint over the next to four years. We believe that such strategic actions will allow Aaron's to continue to successfully serve our markets while continuing to utilize our growing Aarons.com platform. Management expects that this strategy, along with our increased use of technology, will enable us to reduce store count while retaining a significant portion of our existing customer relationships as well as attract new customers. Since initiation, the program has resulted in the closure, consolidation, or relocation of 201 Company-operated Aaron's stores during 2020, 2021 and the first nine months of 2022. This program also resulted in the closure of one administrative store support building, a further rationalization of our store support center staff, which included a reduction in employee headcount in those areas to more closely align with current business conditions. As of September 30, 2022, we have identified approximately 45 remaining Aaron's stores for closure, consolidation, or relocation that have not yet been closed and vacated, nearly all of which are expected to close during the remainder of 2022 and the first half of 2023. Total net restructuring expenses under the real estate repositioning and optimization restructuring program of $8.9 million and $17.9 million were recorded for the three and nine months ended September 30, 2022, respectively. Restructuring expenses were recorded within the Unallocated Corporate category of segment reporting and were comprised mainly of operating lease right-of-use asset and fixed asset impairment charges related to the vacancy or planned vacancy of stores identified for closure, as well as an administrative building in Kennesaw, Georgia, continuing variable occupancy costs incurred related to closed stores and severance charges related to reductions in store support center headcount. Since inception of the real estate repositioning and optimization program, the Company has incurred charges of $58.5 million under the plan. These cumulative charges are primarily comprised of operating lease right-of-use asset and fixed impairment charges, losses recognized related to contractual lease obligations, and severance related to reductions in store support center and field support staff headcount. As management continues to execute on its long-term plan, additional restructuring charges are expected to result from our real estate repositioning and optimization initiatives, primarily related to operating lease right-of-use asset and fixed asset impairments. However, the extent of future restructuring charges is not estimable at this time as the specific relocation sites, with the exception of those sites noted above, have not yet been identified by management. Additionally, we expect future restructuring expenses (reversals) due to potential future early buyouts of leases with landlords, as well as continuing variable occupancy costs related to closed stores. The following table summarizes restructuring charges for the three and nine months ended September 30, 2022 and 2021, respectively, under the Company's restructuring programs:
The following table summarizes the activity for the nine months ended September 30, 2022 and the corresponding accrual balance as of September 30, 2022 for the restructuring programs:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments | SEGMENTS Segment Reporting For all periods prior to April 1, 2022, the Company only had one operating and reportable segment. Effective as of April 1, 2022 and in connection with acquisition of BrandsMart U.S.A., the Company updated its reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes two operating and reportable segments: Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs. The Company has retroactively adjusted, for all periods presented, its segment disclosures to align with the current composition of reportable segments. The Aaron's Business includes the operations of the Pre-Spin Aaron's business, which provides consumers with LTO and retail purchase solutions through the Company's Aaron's stores in the United States and Canada and the Aarons.com 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 BrandsMart Leasing, which offers a lease-to-own solution to customers of BrandsMart U.S.A., and Woodhaven, which manufactures and supplies a significant portion of the upholstered furniture and bedding leased and sold in Company-operated and franchised Aaron's stores. The BrandsMart segment includes the operations of BrandsMart U.S.A.(other than BrandsMart Leasing), which is one of the leading appliance and consumer electronics retailers in the southeastern United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The Company's financial results for the three and nine months ended September 30, 2022 include the results of BrandsMart subsequent to the April 1, 2022 acquisition date. Measurement of Segment Profit or Loss and Segment Assets The Company evaluates segment performance based primarily on revenues and earnings (loss) from operations before unallocated corporate costs, which are evaluated on a consolidated basis and not allocated to the Company's business segments. Intersegment sales between BrandsMart and the Aaron's Business pertaining to BrandsMart Leasing, are recognized at retail price. Since the intersegment profit affects cost of goods sold, depreciation and inventory valuation, they 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. Unallocated Corporate costs are presented separately and generally include unallocated costs associated with the following: equity-based compensation, interest income and expense, information security, executive compensation, legal and compliance, corporate governance, accounting and finance, human resources and other corporate functions. The Unallocated Corporate category also includes acquisition-related costs, restructuring charges and separation costs for which the individual operating segments are not being evaluated. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented.
1 The loss before income taxes for the Unallocated Corporate category during the three months ended September 30, 2022 was impacted by a goodwill impairment charge of $12.9 million to fully write-off the goodwill balance of the Aaron's Business reporting unit, restructuring charges of $14.9 million, BrandsMart U.S.A. acquisition-related costs of $1.7 million and separation-related costs of $0.2 million. 2 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.
2 The loss before income taxes for the Unallocated Corporate category during the three months ended September 30, 2021 was impacted by restructuring charges of $2.9 million and separation-related costs of $0.4 million.
1 The loss before income taxes for the BrandsMart segment during the nine months ended September 30, 2022 was impacted by a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.1 million. 2 The loss before income taxes for the Unallocated Corporate category during the nine months ended September 30, 2022 was impacted by restructuring charges of $23.8 million, BrandsMart U.S.A. acquisition-related costs of $13.2 million, a goodwill impairment charge of $12.9 million to fully write-off the goodwill balance of the Aaron's Business reporting unit and separation-related costs of $1.0 million. 3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.
1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. 2 The loss before income taxes for the Unallocated Corporate category during the nine months ended September 30, 2021 was impacted by restructuring charges of $8.1 million and separation-related costs of $6.0 million.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis and Summary of Significant Accounting Policies (Policies) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description of Business | Description of Business The Company is a leading, technology-enabled, omni-channel provider of lease-to-own ("LTO") and retail purchase solutions of furniture, electronics, appliances, and other home goods across its brands: Aaron's, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven Furniture Industries ("Woodhaven"). As of September 30, 2022, the Company's operating and reportable segments are the Aaron's Business and BrandsMart, each as described below. The Aaron's Business segment is comprised of (i) Aaron's branded Company-operated and franchise-operated stores; (ii) Aarons.com e-commerce platform ("Aarons.com"); (iii) Woodhaven; and (iv) BrandsMart Leasing (collectively, the "Aaron’s Business"). The operations of BrandsMart U.S.A. (excluding BrandsMart Leasing) comprise the BrandsMart segment (collectively, "BrandsMart"). Aaron's Business Segment Since its founding in 1955, Aaron's has been committed to serving the overlooked and underserved customer with a dedication to inclusion and improving the communities in which it operates. Through a portfolio of approximately 1,300 stores and its Aarons.com e-commerce platform, Aaron's, together with its franchisees, provide consumers with LTO and retail purchase solutions for the products they need and want, with a focus on providing its customers with unparalleled customer service, high approval rates, lease plan flexibility, and an attractive value proposition, including competitive monthly payments and total cost of ownership, as compared to other LTO providers. Woodhaven manufactures and supplies a significant portion of the upholstered furniture and bedding leased and sold in Company-operated and franchised Aaron's stores. Launched in 2022, BrandsMart Leasing offers LTO purchase solutions to customers of BrandsMart U.S.A. BrandsMart Segment Founded in 1977, BrandsMart U.S.A. is one of the leading appliance and consumer electronics retailers in the southeast United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The operations of BrandsMart U.S.A. (other than BrandsMart Leasing) comprise the BrandsMart segment.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation | Basis of Presentation The financial statements for the three and nine months ended September 30, 2022 and comparable prior year period are condensed consolidated financial statements of the Company and its subsidiaries, each of which is wholly-owned, and is based on the financial position and results of operations of the Company. Intercompany balances and transactions between consolidated entities have been eliminated. These condensed consolidated financial statements reflect the historical results of operations, financial position and cash flows of the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of the Company's condensed consolidated financial statements in conformity with U.S. GAAP for interim financial information requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. The extent to which the macroeconomic inflationary pressures and COVID-19 pandemic will impact the Company's business will depend on future developments. These developments are uncertain and cannot be precisely predicted at this time. In many cases, management's estimates and assumptions are dependent on estimates of such future developments and may change in the future. The accompanying unaudited condensed consolidated financial statements do not include all information required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in the 2021 Annual Report. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of operating results that may be achieved for any other interim period or for the full year.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassifications | Reclassifications The following reclassifications have been made to the prior periods to conform to the current period presentation. For all previously reported periods prior to April 1, 2022, the Company presented all revenues derived from lease agreements and the related fees, as well as the sale of both new and returned lease merchandise from our Company-operated Aaron's stores and fees from our Aaron's Club program within one line in the condensed consolidated statements of earnings, presented as lease and retail revenues. Effective April 1, 2022, the Company revised its presentation to separately present revenues derived from lease agreements at our Company-operated Aaron's stores and e-commerce platform and fees from our Aaron's Club program as lease revenues and fees in the condensed consolidated statements of earnings, with the sale of both new and returned lease merchandise from our Company-operated Aaron's stores being classified as retail sales. This revised presentation does not have an impact on total revenues presented in prior periods. Similarly, for all previously reported periods prior to April 1, 2022, the Company presented the depreciation expense associated with lease merchandise as well as the depreciated costs of merchandise sold within one line in the condensed consolidated statements of earnings, presented as the cost of lease and retail revenues. Effective April 1, 2022, the Company revised its presentation to separately present the depreciation expense associated with lease merchandise in the condensed consolidated statements of earnings, with the costs associated with merchandise sold through our Company-operated Aaron's stores presented as retail costs of sales. This revised presentation does not have an impact on total costs of revenues presented in prior periods. For previously reported interim and annual periods prior to December 31, 2021, the Company reported the additions to lease merchandise and the book value of lease merchandise sold or disposed as separate lines within operating activities in the condensed consolidated statements of cash flows. Effective with the year ended December 31, 2021, the Company revised its presentation of changes to lease merchandise to separately present the provision for lease merchandise write-offs, and combine the remaining operating activity-related changes in lease merchandise, with the exception of depreciation of lease merchandise, in a single line under changes in operating assets and liabilities in the condensed consolidated statements of cash flows. This revised presentation and the related adjustments to the prior period presentation do not have an impact on cash provided by operating activities.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies and Estimates | Accounting Policies and EstimatesSee Note 1 to the consolidated and combined financial statements in the 2021 Annual Report for an expanded discussion of accounting policies and estimates. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Losses) Earnings Per Share | (Loss) Earnings Per ShareEarnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. The computation of earnings per share assuming dilution includes the dilutive effect of stock options, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), performance share units ("PSUs") and other awards issuable under the Company's employee stock purchase plan ("ESPP") (collectively, "share-based awards") as determined under the treasury stock method, unless the inclusion of such awards would have been anti-dilutive. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition | Revenue Recognition The Company provides lease and retail merchandise, consisting of appliances, electronics, furniture, and other home goods to its customers for lease under certain terms agreed to by the customer and through retail sales. The Company's Aaron's stores, Aaron's.com e-commerce platform, and BrandsMart Leasing components of the Aaron's Business segment offer leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months. The Aaron's Business segment also earns revenue from the sale of merchandise to customers and Aaron's franchisees, and earns ongoing revenue from Aaron's franchisees in the form of royalties and through advertising efforts that benefit the franchisees. The Company's BrandsMart U.S.A. stores and related brandsmartusa.com e-commerce platform offer the sale of merchandise directly to its customers via retail sales. See Note 5 to these condensed consolidated financial statements for further information regarding the Company's revenue recognition policies and disclosures.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advertising | AdvertisingThe Company expenses advertising costs as incurred. Advertising production costs are initially recognized as a prepaid advertising asset and are expensed when an advertisement appears for the first time. Total advertising costs were $7.8 million and $31.1 million during the three and nine months ended September 30, 2022, respectively, (three and nine months ended September 30, 2021: $11.2 million and $47.6 million, respectively) and are classified within other operating expenses, net in the condensed consolidated statements of earnings. These advertising costs are presented net of cooperative advertising considerations received from vendors, which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of receivables due from customers on lease agreements, corporate receivables incurred during the normal course of business (primarily for vendor consideration, third-party warranty providers, and real estate leasing activities) and franchisee obligations. The Company maintains an accounts receivable allowance for the Aaron's Business customer lease agreements, under which its policy is to record a provision for returns and uncollectible contractually due renewal payments based on historical payments experience, which is recognized as a reduction of lease revenues and fees within the condensed consolidated statements of earnings. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends. The Company writes off customer lease receivables that are 60 days or more past due on pre-determined dates twice monthly.The Company also maintains an allowance for outstanding franchisee accounts receivable. The Company's policy is to estimate future losses related to certain franchisees that are deemed to have a higher risk of non-payment and record an allowance for these estimated losses. The estimated allowance on franchisee accounts receivable includes consideration of the financial position of each franchisee and qualitative consideration of potential losses associated with uncertainties impacting the franchisee's ability to satisfy their obligations. Uncertainties include inflationary pressures in the current macroeconomic environment and the normalization of business trends associated with the COVID-19 pandemic. Accordingly, actual accounts receivable write-offs could differ from the allowance. The provision for uncollectible franchisee accounts receivable is recorded as bad debt expense in other operating expenses, net within the condensed consolidated statements of earnings. The allowance related to remaining corporate receivables is not significant for the three and nine months ended September 30, 2022.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease Merchandise | Lease Merchandise The Company’s lease merchandise is recorded at the lower of depreciated cost, including overhead costs from our distribution centers, or net realizable value. The cost of merchandise manufactured by our Woodhaven operations is recorded at cost and includes overhead from production facilities, shipping costs and warehousing costs. The Company begins depreciating lease merchandise at the earlier of 12 months and one day from its purchase of the merchandise or when the merchandise is leased to customers. Lease merchandise fully depreciates over the lease agreement period when on lease, generally 12 to 24 months, and generally 36 months when not on lease. Depreciation is accelerated upon early payout. The Aaron's store-based operations' policies require weekly merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. Monthly cycle counting procedures are performed at both the Aaron's distribution centers and Woodhaven manufacturing facilities. Physical inventories are also taken at the manufacturing facilities annually. The Company also monitors merchandise levels and mix by division, store, and distribution center, as well as the average age of merchandise on hand. If obsolete merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off. Generally, all merchandise not on lease is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off and is included as a component of the provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company records a provision for write-offs using the allowance method, which is included within lease merchandise, net within the condensed consolidated balance sheets. The allowance method for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based primarily on historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as seasonality and the impacts of uncertainty surrounding inflationary pressures in the current macroeconomic environment and the normalization of business trends associated with the COVID-19 pandemic on our customers. Therefore, actual lease merchandise write-offs could differ from the allowance. The provision for write-offs is included in provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company writes off lease merchandise on lease agreements that are 60 days or more past due on pre-determined dates twice monthly.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Merchandise Inventories | Merchandise Inventories The Company’s merchandise inventories are stated at the lower of weighted average cost or net realizable value and consist entirely of merchandise held for sale by the BrandsMart segment. In-bound freight-related costs from vendors, net of allowances and vendor rebates, are included as part of the net cost of merchandise inventories. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within retail cost of sales in the condensed consolidated statements of earnings. The Company periodically evaluates aged and distressed inventory and establishes an inventory markdown which represents the excess of the carrying value over the amount the Company expects to realize from the ultimate sale of the inventory. Markdowns establish a new cost basis for the inventory. Estimated losses related to markdowns of merchandise inventories and write-offs of merchandise inventories associated with the Company's cycle count processes are included within retail cost of sales in the condensed consolidated statements of earnings.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets Held for Sale | Assets Held for Sale Certain properties, consisting of parcels of land and commercial buildings, and certain company-owned vehicles met the held for sale classification criteria as of September 30, 2022 and December 31, 2021. Assets held for sale are recorded at the lower of their carrying value or fair value less estimated cost to sell and are classified within prepaid expenses and other assets in the condensed consolidated balance sheets. Depreciation is suspended on assets upon classification to held for sale. Gains and losses related to the sale of assets held for sale are recorded in other operating expenses, net or restructuring expenses, net (if the asset is a part of the Company's restructuring programs further described in Note 7 to these condensed consolidated financial statements) in the condensed consolidated statements of earnings. Such gains and losses were not significant for the three and nine months ended September 30, 2022 and September 30, 2021. Management estimated the fair values of real estate properties using the market values for similar properties. Real estate properties represent $0.7 million and $1.2 million as of September 30, 2022 and December 31, 2021, respectively. These properties are considered Level 2 assets as defined below. The carrying amount of all assets held for sale as of September 30, 2022 and December 31, 2021 is $0.7 million and $1.6 million, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Estimated Claims Liability Costs | Estimated Claims Liability Costs Estimated claims liability costs are accrued primarily for workers compensation and vehicle liability, as well as general liability and group health insurance benefits provided to team members. These liabilities are recorded within estimated claims liability costs within accounts payable and accrued expenses in the condensed consolidated balance sheets. Estimates for these claims liabilities are made based on actual reported but unpaid claims and actuarial analysis of the projected claims run off for both reported and incurred but not reported claims. This analysis is based upon an assessment of the likely outcome or historical experience and considers a variety of factors, including the actuarial loss forecasts, company-specific development factors, general industry loss development factors and third-party claim administrator loss estimates of individual claims. The Company makes periodic prepayments to its insurance carriers to cover the projected claims run off for both reported and incurred but not reported claims, considering its retention or stop loss limits. In addition, we have prefunding balances on deposit and other insurance receivables with the insurance carriers which are recorded within prepaid expenses and other assets in our condensed consolidated balance sheets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting | Segment Reporting As of September 30, 2022, the Company has two operating and reportable segments: Aaron's Business and BrandsMart. During the three and nine months ended September 30, 2022, the Company changed its composition of reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes separate segments for the Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs. The Company has retroactively adjusted, for all periods presented, its segment disclosures to align with the current composition of reportable segments. The Aaron's Business segment is comprised of the Pre-Spin Aaron's Business, which provides consumers with LTO and retail purchase solutions through the Company's Aaron's stores in the United States and Canada and the Aaron's.com 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 BrandsMart Leasing, which offers lease-to-own solutions to BrandsMart U.S.A. customers, and Woodhaven, which manufactures and supplies a significant portion of the upholstered furniture and bedding leased and sold in Company-operated and franchised Aaron's stores. The BrandsMart segment is comprised of the operations of BrandsMart U.S.A. (excluding BrandsMart Leasing), which is one of the leading appliance and consumer electronics retailers in the southeast United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | Goodwill Goodwill represents the excess of the purchase price paid over the fair value of the identifiable net tangible and intangible assets acquired in connection with business acquisitions. The acquisition of BrandsMart U.S.A. in the second quarter of the current year resulted in the recognition of approximately $51.7 million of goodwill, inclusive of measurement period adjustments further described in Note 2 to these condensed consolidated financial statements. The following table provides information related to the carrying amount of goodwill by operating segment.
The Company’s goodwill is not amortized but is subject to an impairment test at the reporting unit level annually as of October 1 and more frequently if events or circumstances indicate that an interim impairment may have occurred. An interim goodwill impairment test is required if the Company believes it is more likely than not that the carrying amount of its reporting unit exceeds the reporting unit's fair value. The Company concluded that the need for an interim goodwill impairment test was triggered for the Aaron's Business and BrandsMart reporting units during the three months ended September 30, 2022. Factors that led to this conclusion include: (i) the continued decline in the Company's stock price and market capitalization during the third quarter of 2022; and (ii) uncertainty with regard to the short-term and long-term impacts that adverse macroeconomic conditions, including inflation and rising interest rates, may have on the financial health of our Aaron's Business customers and franchisees. During the three months ended September 30, 2022, the Company determined that the Aaron's Business goodwill was fully impaired and recorded a goodwill impairment loss of $12.9 million during the three months ended September 30, 2022. The Company engaged the assistance of a third-party valuation firm to perform the interim goodwill impairment tests for the Aaron's Business and BrandsMart reporting units. This entailed an assessment of the Aaron's Business and BrandsMart reporting units' fair values relative to their respective carrying values that was derived using a combination of both income and market approaches and by performing a market capitalization reconciliation, which included an assessment of the control premium implied from the Company's estimated fair values of its reporting units. The fair value measurement involved significant unobservable inputs (Level 3 inputs, as discussed more fully below). The income approach utilized the discounted future expected cash flows, which required assumptions about short-term and long-term revenue growth or decline rates, operating margins, capital requirements, and a weighted-average cost of capital. The market approach, which includes the guideline public company method, utilized pricing multiples derived from an analysis of comparable publicly traded companies. We believe the comparable companies we evaluate as marketplace participants serve as an appropriate reference when calculating fair value because those companies have similar risks, participate in similar markets, provide similar products and services for their customers and compete with us directly. The short-term and long-term revenue growth rates, operating margins, capital requirements and weighted-average cost of capital are the assumptions that are most sensitive and susceptible to change as they require significant management judgment. The Company performed sensitivity analyses for the Aaron's Business reporting unit assessment including considering reasonably possible alternative assumptions for long-term growth or decline rates and weighted-average cost of capital rates. Each of the sensitivity analyses performed supported the conclusion of a full impairment of the Aaron's Business goodwill. The Company concluded that given the recency of the purchase transaction, the provisional nature of the goodwill balance and carrying value as our acquisition accounting is preliminary and subject to adjustment during the measurement period, and the results of our current quarter impairment evaluation, the BrandsMart reporting unit goodwill is not impaired as of September 30, 2022. The Company may be required to recognize material impairments to the BrandsMart goodwill balance in the future if: (i) the Company fails to successfully execute on one or more elements of the BrandsMart strategic plan; (ii) actual results are unfavorable to the Company's estimates and assumptions used to calculate fair value; (iii) the BrandsMart carrying value increases without an associated increase in the fair value; and/or (iv) BrandsMart is materially impacted by further deterioration of macroeconomic conditions, including inflation and rising interest rates.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-Related Costs | Acquisition-Related CostsAcquisition-related costs of $1.7 million and $13.2 million were incurred during the three and nine months ended September 30, 2022 and primarily represent third-party consulting, banking and legal expenses associated with the acquisition of BrandsMart U.S.A completed April 1, 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company measures a liability related to its non-qualified deferred compensation plan, which represents benefits accrued for participants that are part of the plan and is valued at the quoted market prices of the participants' investment election, at fair value on a recurring basis. The Company measures assets held for sale at fair value on a nonrecurring basis and records impairment charges when they are deemed to be impaired. Additionally, as discussed above, the Company performed an interim goodwill impairment analysis for the Aaron's Business and BrandsMart reporting units as of August 31, 2022, which required multiple Level 3 inputs and assumptions, such as estimates about costs of capital, future projected performance and cash flows. The fair values of the Company's other current financial assets and liabilities, such as cash and cash equivalents, accounts receivable and accounts payable, approximate their carrying values due to their short-term nature. The Company's outstanding debt borrowings as of September 30, 2022 and December 31, 2021 were subject to a variable interest rate. Therefore, the fair value of these borrowings also approximates its carrying value. These assets and liabilities are measured within Level 2 of the fair value hierarchy. The Company also measures certain non-financial assets at fair value on a nonrecurring basis, such as goodwill, intangible assets, operating lease right-of-use assets, and property, plant, and equipment, in connection with periodic evaluations for potential impairment.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The standard provides temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the cessation of the publication of certain tenors of the London Interbank Overnight ("LIBO") rate on December 31, 2021, with complete elimination of the publication of the LIBO rate by June 30, 2023. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts referencing the LIBO rate. The Company's outstanding debt borrowing as of December 31, 2021 included an election of a LIBO rate that has not yet been eliminated. Also, the Company modified its debt agreement in conjunction with the acquisition of BrandsMart U.S.A. Borrowings under the new debt agreement bear interest at a rate per annum equal to, at the option of the Company, (i) the forward-looking term rate based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin ranging between 1.50% and 2.25%, based on the Company's Total Net Debt to EBITDA Ratio (as defined in the debt agreement), or (ii) the base rate plus an applicable margin, which is 1.00% lower than the applicable margin for SOFR loans. Therefore, there is no impact on the consolidated financial statements of the Company related to the adoption of ASU 2020-04. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which requires contract assets and contract liabilities (e.g., deferred revenue) acquired in a business combination to be recognized and measured in accordance with ASC Topic 606, Revenue from Contracts with Customers, rather than at its assumed acquisition date fair value. The Company elected to early adopt ASU 2021-08 in the second quarter of 2022, and therefore accounted for deferred revenue contracts acquired in connection with the BrandsMart U.S.A. acquisition under this standard. The adoption of the standard has no retrospective impact to the Company's historical consolidated financial statements.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis and Summary of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Company Operated Store Activity | The following table presents store count by ownership type:
1The typical layout for a Company-operated Aaron's store is a combination of showroom, customer service and warehouse space, generally comprising 6,000 to 15,000 square feet. Certain Company-operated Aaron's stores consist solely of a showroom. 2 BrandsMart U.S.A. stores average approximately 100,000 square feet and have been included in this table subsequent to the acquisition date of April 1, 2022.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Calculation of Dilutive Stock Awards | The following table shows the calculation of weighted-average shares outstanding assuming dilution:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable Net of Allowances | Accounts receivable, net of allowances, consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of the Accounts Receivable Provision | The following table shows the components of the accounts receivable allowance:
The following table shows the components of the accounts receivable provision, which includes amounts recognized for bad debt expense and the provision for returns and uncollected payments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Lease Merchandise | The following is a summary of lease merchandise, net of accumulated depreciation and allowances:
1 Includes Woodhaven raw materials, finished goods and work-in-process inventory that has been classified within lease merchandise in the condensed consolidated balance sheets of $19.7 million and $20.2 million as of September 30, 2022 and December 31, 2021, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Lease Merchandise | The following table shows the components of the allowance for lease merchandise write-offs:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Merchandise Inventories | There were no significant markdown provisions recorded during the three and nine months ended September 30, 2022.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following:
1 Includes restricted cash of $2.5 million held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Goodwill | The following table provides information related to the carrying amount of goodwill by operating segment.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Stockholders Equity | Changes in stockholders' equity for the three and nine months ended September 30, 2022 and 2021 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The consideration transferred and the preliminary estimated fair values of the assets acquired and liabilities assumed in the BrandsMart U.S.A. acquisition as of the April 1, 2022 acquisition date are as follows:
1As previously reported in the notes to condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022. 2The measurement period adjustments primarily relate to further refinement of an appropriate discount rate used to value the intangible assets as of the acquisition date, adjustments to the working capital settlement agreement, and opening balance adjustments to merchandise inventories. 3Effective as of the acquisition date, the Company entered into lease agreements for six store locations retained by the sellers of BrandsMart U.S.A. The agreement includes initial terms of ten years, with options to renew each location for up to 20 years thereafter. The annual rent is considered to be above market. The value of the off-market element of the lease agreements has been included in consideration transferred and as a reduction to the operating lease right-of-use-asset. 4Identifiable intangible assets are further disaggregated in the table set forth below. 5Includes restricted cash of $2.5 million held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies. 6The total goodwill recognized in conjunction with the BrandsMart U.S.A. acquisition, all of which is expected to be deductible for tax purposes, has been assigned to the BrandsMart operating segment and reporting unit. The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, primarily due to synergies created from the expected future benefits to the Company. Goodwill also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The preliminary estimated values of intangible assets attributable to the BrandsMart U.S.A. acquisition are comprised of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Pro Forma Information | The following table presents unaudited consolidated pro forma information as if the acquisition of BrandsMart U.S.A. had occurred on January 1, 2021, compared to actual, historical results.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes financial liabilities measured at fair value on a recurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes non-financial assets measured at fair value on a nonrecurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Company's debt | The following is a summary of the Company's debt, net of unamortized debt issuance costs as applicable:
1 Includes unamortized debt issuance costs of $0.8 million. The Company has included $3.1 million and $1.7 million of debt issuance costs as of September 30, 2022 and December 31, 2021, respectively, related to the new and previous revolving credit facility, within prepaid expenses and other assets in the condensed consolidated balance sheets. 2 The amount outstanding on the Swing Line Loans as of December 31, 2021 is related to the Previous Credit Facility, as further described below.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue | The following table disaggregates revenue by source:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Costs | The following table summarizes restructuring charges for the three and nine months ended September 30, 2022 and 2021, respectively, under the Company's restructuring programs:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Restructuring Reserve | The following table summarizes the activity for the nine months ended September 30, 2022 and the corresponding accrual balance as of September 30, 2022 for the restructuring programs:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations | The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented.
1 The loss before income taxes for the Unallocated Corporate category during the three months ended September 30, 2022 was impacted by a goodwill impairment charge of $12.9 million to fully write-off the goodwill balance of the Aaron's Business reporting unit, restructuring charges of $14.9 million, BrandsMart U.S.A. acquisition-related costs of $1.7 million and separation-related costs of $0.2 million. 2 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.
2 The loss before income taxes for the Unallocated Corporate category during the three months ended September 30, 2021 was impacted by restructuring charges of $2.9 million and separation-related costs of $0.4 million.
1 The loss before income taxes for the BrandsMart segment during the nine months ended September 30, 2022 was impacted by a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.1 million. 2 The loss before income taxes for the Unallocated Corporate category during the nine months ended September 30, 2022 was impacted by restructuring charges of $23.8 million, BrandsMart U.S.A. acquisition-related costs of $13.2 million, a goodwill impairment charge of $12.9 million to fully write-off the goodwill balance of the Aaron's Business reporting unit and separation-related costs of $1.0 million. 3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.
1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. 2 The loss before income taxes for the Unallocated Corporate category during the nine months ended September 30, 2021 was impacted by restructuring charges of $8.1 million and separation-related costs of $6.0 million.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
store
|
Apr. 01, 2022
USD ($)
store
|
Nov. 30, 2020 |
Sep. 30, 2021
store
|
|---|---|---|---|---|
| Significant Accounting Policies [Line Items] | ||||
| Number of retail stores | 1,278 | 1,321 | ||
| BrandsMart | ||||
| Significant Accounting Policies [Line Items] | ||||
| Percentage of interests acquired | 100.00% | |||
| Cash Consideration to BrandsMart U.S.A. | $ | $ 230,000 | $ 230,000 | ||
| Number of retail stores | 10 | 10 | ||
| PROG Holdings | ||||
| Significant Accounting Policies [Line Items] | ||||
| Shares issued per entity share, conversion ratio | 0.5 |
Basis and Summary of Significant Accounting Policies - Store Count by Ownership Type (Details) |
Sep. 30, 2022
ft²
store
|
Sep. 30, 2021
store
|
|---|---|---|
| Significant Accounting Policies [Line Items] | ||
| Number of retail stores | 1,278 | 1,321 |
| Company-operated Aaron's Stores | ||
| Significant Accounting Policies [Line Items] | ||
| Number of retail stores | 1,034 | 1,084 |
| Company-operated Aaron's Stores | Minimum | ||
| Significant Accounting Policies [Line Items] | ||
| Area of real estate property | ft² | 6,000 | |
| Company-operated Aaron's Stores | Maximum | ||
| Significant Accounting Policies [Line Items] | ||
| Area of real estate property | ft² | 15,000 | |
| Franchisee-operated Aaron's Stores | ||
| Significant Accounting Policies [Line Items] | ||
| Number of retail stores | 234 | 237 |
| BrandsMart Stores | ||
| Significant Accounting Policies [Line Items] | ||
| Number of retail stores | 10 | 0 |
| Area of real estate property | ft² | 100,000 |
Basis and Summary of Significant Accounting Policies - (Loss) Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Accounting Policies [Abstract] | ||||
| Weighted Average Shares Outstanding (in shares) | 30,875 | 32,485 | 30,921 | 33,513 |
| Dilutive Effect of Share-Based Awards (in shares) | 0 | 703 | 452 | 703 |
| Weighted Average Shares Outstanding Assuming Dilution (in shares) | 30,875 | 33,188 | 31,373 | 34,216 |
| Anti-dilutive securities excluded from the computation of earnings per share assuming dilution (in shares) | 800 | |||
Basis and Summary of Significant Accounting Policies - Revenue Recognition (Details) - Sales And Lease Ownership |
Sep. 30, 2022 |
|---|---|
| Agreement One | |
| Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
| Lease agreement period | 12 months |
| Agreement Two | |
| Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
| Lease agreement period | 18 months |
| Agreement Three | |
| Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
| Lease agreement period | 24 months |
Basis and Summary of Significant Accounting Policies - Advertising Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
| Accounting Policies [Abstract] | |||||
| Advertising costs | $ 7.8 | $ 11.2 | $ 31.1 | $ 47.6 | |
| Amount of cooperative advertising consideration netted against advertising expense | 8.3 | $ 6.3 | 24.6 | $ 16.3 | |
| Prepaid advertising asset | $ 7.7 | $ 7.7 | $ 1.0 | ||
Basis and Summary of Significant Accounting Policies - Accounts Receivable Net of Allowances (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Accounts receivable, net of allowances | $ 37,852 | $ 29,443 |
| Threshold period past due for write-off of trade accounts receivable | 60 days | |
| Customers | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Accounts receivable, net of allowances | $ 11,163 | 8,635 |
| Corporate | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Accounts receivable, net of allowances | 19,793 | 11,478 |
| Franchisee | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Accounts receivable, net of allowances | $ 6,896 | $ 9,330 |
Basis and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
| Beginning Balance | $ 7,163 | $ 7,613 |
| Accounts Written Off, net of Recoveries | (28,020) | (20,110) |
| Accounts Receivable Provision | 29,331 | 18,840 |
| Ending Balance | $ 8,474 | $ 6,343 |
Basis and Summary of Significant Accounting Policies - Components of the Accounts Receivable Provision (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Accounting Policies [Abstract] | ||
| Bad Debt (Reversal) Expense | $ (263) | $ (728) |
| Provision for Returns and Uncollectible Renewal Payments | 29,594 | 19,568 |
| Accounts Receivable Provision | $ 29,331 | $ 18,840 |
Basis and Summary of Significant Accounting Policies - Allowance for Lease Merchandise Write-offs (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Components of the allowance of leases merchandise write-offs: | ||
| Beginning Balance | $ 12,339 | $ 11,599 |
| Merchandise Written off, net of Recoveries | (70,247) | (46,414) |
| Provision for Write-offs | 72,092 | 45,333 |
| Ending Balance | $ 14,184 | $ 10,518 |
Basis and Summary of Significant Accounting Policies - Retail Related Inventory, Merchandise (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Accounting Policies [Abstract] | ||
| Merchandise Inventories, gross | $ 96,486 | |
| Reserve for Merchandise Inventories | 0 | |
| Merchandise Inventories, Net | $ 96,486 | $ 0 |
Basis and Summary of Significant Accounting Policies - Components of Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Apr. 01, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Restructuring Cost and Reserve [Line Items] | |||
| Prepaid Expenses | $ 22,848 | $ 14,651 | |
| Insurance Related Assets | 29,854 | 30,757 | |
| Company-Owned Life Insurance | 12,941 | 15,808 | |
| Assets Held for Sale | 670 | 1,550 | |
| Deferred Tax Asset | 11,866 | 7,994 | |
| Other Assets | 19,332 | 15,240 | |
| Prepaid Expense and Other Assets | $ 97,511 | $ 86,000 | |
| BrandsMart | |||
| Restructuring Cost and Reserve [Line Items] | |||
| Restricted cash | $ 2,500 |
Basis and Summary of Significant Accounting Policies - Assets Held for Sale (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
| Accounting Policies [Abstract] | ||
| Restructuring costs | $ 700 | $ 1,200 |
| Assets Held for Sale | $ 670 | $ 1,550 |
Basis and Summary of Significant Accounting Policies - Sale-Leaseback Transactions (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |
|---|---|---|---|
|
Sep. 30, 2022
USD ($)
store
|
Sep. 30, 2022
USD ($)
store
sale-leasebackTransaction
|
Sep. 30, 2021
store
|
|
| Lessee, Lease, Description [Line Items] | |||
| Number of retail stores | 1,278 | 1,278 | 1,321 |
| Sales leaseback transaction, sale price | $ | $ 12.9 | $ 12.9 | |
| Other operating expense | |||
| Lessee, Lease, Description [Line Items] | |||
| Gain related to the sale and leaseback transaction | $ | $ 2.8 | $ 8.5 | |
| BrandsMart | |||
| Lessee, Lease, Description [Line Items] | |||
| Sale leaseback, number of properties | sale-leasebackTransaction | 4 | ||
| Number of retail stores | 6 | 6 | |
| BrandsMart | Sale and leaseback transactions | |||
| Lessee, Lease, Description [Line Items] | |||
| Number of retail stores | 7 | 7 |
Basis and Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Accounting Policies [Abstract] | ||
| Accounts Payable | $ 91,312 | $ 83,118 |
| Estimated Claims Liability Costs | 61,591 | 57,381 |
| Accrued Salaries and Benefits | 32,171 | 57,837 |
| Accrued Real Estate and Sales Taxes | 27,098 | 22,754 |
| Other Accrued Expenses and Liabilities | 35,429 | 23,580 |
| Accounts Payable and Accrued Liabilities | $ 247,601 | $ 244,670 |
Basis and Summary of Significant Accounting Policies - Segment Reporting (Details) |
9 Months Ended | ||
|---|---|---|---|
|
Sep. 30, 2022
segment
store
|
Apr. 01, 2022
store
|
Sep. 30, 2021
store
|
|
| Significant Accounting Policies [Line Items] | |||
| Number of operating segments | segment | 2 | ||
| Number of reportable segments | segment | 2 | ||
| Number of retail stores | store | 1,278 | 1,321 | |
| BrandsMart | |||
| Significant Accounting Policies [Line Items] | |||
| Number of retail stores | store | 10 | 10 |
Basis and Summary of Significant Accounting Policies - Goodwill Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Jun. 30, 2022 |
Apr. 01, 2022 |
Dec. 31, 2021 |
|
| Goodwill [Line Items] | |||||||
| Goodwill | $ 51,683 | $ 51,683 | $ 13,134 | ||||
| Impairment Loss | (12,933) | $ 0 | (12,933) | $ 0 | |||
| BrandsMart | |||||||
| Goodwill [Line Items] | |||||||
| Goodwill | 51,683 | 51,683 | $ 51,700 | $ 62,268 | 0 | ||
| Impairment Loss | 0 | ||||||
| Aaron's Business | |||||||
| Goodwill [Line Items] | |||||||
| Goodwill | 0 | 0 | $ 13,134 | ||||
| Impairment Loss | $ (12,900) | $ (12,933) | |||||
Basis and Summary of Significant Accounting Policies - Schedule Of Goodwill (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Goodwill [Roll Forward] | |||||
| Goodwill, Beginning Balance | $ 13,134 | ||||
| Acquisitions | 62,268 | ||||
| Currency Translation Adjustments | (94) | ||||
| Acquisition Accounting Adjustments | (10,692) | ||||
| Impairment Loss | $ (12,933) | $ 0 | (12,933) | $ 0 | |
| Goodwill, Ending Balance | 51,683 | $ 51,683 | 51,683 | ||
| Aaron's Business | |||||
| Goodwill [Roll Forward] | |||||
| Goodwill, Beginning Balance | 13,134 | ||||
| Acquisitions | 0 | ||||
| Currency Translation Adjustments | (94) | ||||
| Acquisition Accounting Adjustments | (107) | ||||
| Impairment Loss | (12,900) | (12,933) | |||
| Goodwill, Ending Balance | 0 | 0 | 0 | ||
| BrandsMart | |||||
| Goodwill [Roll Forward] | |||||
| Goodwill, Beginning Balance | 51,700 | 0 | |||
| Acquisitions | 62,268 | ||||
| Currency Translation Adjustments | 0 | ||||
| Acquisition Accounting Adjustments | (10,585) | (10,585) | |||
| Impairment Loss | 0 | ||||
| Goodwill, Ending Balance | $ 51,683 | $ 51,683 | $ 51,683 | ||
Basis and Summary of Significant Accounting Policies - Acquisition Related Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Business Combination, Separately Recognized Transactions [Line Items] | ||||
| Acquisition-related costs | $ 1,659 | $ 0 | $ 13,156 | $ 0 |
| BrandsMart | ||||
| Business Combination, Separately Recognized Transactions [Line Items] | ||||
| Acquisition-related costs | $ 1,700 | $ 13,200 | ||
Basis and Summary of Significant Accounting Policies - Related Party Transactions (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |
|---|---|---|---|
|
Sep. 30, 2022
USD ($)
store
|
Sep. 30, 2022
USD ($)
store
|
Sep. 30, 2021
store
|
|
| Related Party Transaction [Line Items] | |||
| Number of retail stores | store | 1,278 | 1,278 | 1,321 |
| BrandsMart | |||
| Related Party Transaction [Line Items] | |||
| Number of retail stores | store | 6 | 6 | |
| Initial operating lease term | 10 years | 10 years | |
| Renewal term | 20 years | 20 years | |
| Number of operating leases | store | 6 | ||
| Annual rental payments operating lease | $ | $ 10.0 | ||
| BrandsMart | Related to Real Estate Activities, Including Rental Payments, Maintenance and Taxes | |||
| Related Party Transaction [Line Items] | |||
| Related party transaction, expenses from transactions with related party | $ | $ 3.2 | 6.5 | |
| BrandsMart | Prepaid expenses and other assets | |||
| Related Party Transaction [Line Items] | |||
| Asset, working capital adjustment | $ | $ 1.6 |
Basis and Summary of Significant Accounting Policies - Statements of Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Treasury Stock Beginning Balance (in shares) | (4,580,390) | (4,580,390) | ||||||
| Beginning Balance | $ 720,513 | $ 730,908 | $ 718,166 | $ 733,515 | $ 739,388 | $ 711,325 | $ 718,166 | $ 711,325 |
| Cash Dividends | (3,471) | (3,541) | (3,584) | (3,247) | (3,387) | (3,472) | ||
| Stock-Based Compensation | 3,163 | 3,224 | 3,611 | 2,757 | 1,714 | 3,551 | ||
| Reclassification of liability awards to equity awards | 1,841 | |||||||
| Issuance of Shares under Equity Plans | (23) | |||||||
| Issuance of Shares under Equity Plans | 860 | (3,489) | 86 | 1,247 | (2,186) | |||
| Acquisition of Treasury Stock | 0 | (5,335) | (5,720) | (37,516) | (38,642) | (6,280) | ||
| Net (Loss) Earnings | (15,616) | (5,342) | 21,532 | 24,348 | 32,975 | 36,323 | 574 | 93,646 |
| Unrealized (Loss) Gain on Fuel Hedge Derivative Instrument | (235) | 85 | 154 | 0 | 4 | 0 | ||
| Foreign Currency Translation Adjustment | $ (611) | (346) | 238 | (254) | 220 | 127 | $ (719) | 93 |
| Treasury Stock Ending Balance (in shares) | (5,261,461) | (5,261,461) | ||||||
| Ending Balance | $ 703,720 | $ 720,513 | $ 730,908 | $ 721,530 | $ 733,515 | $ 739,388 | $ 703,720 | $ 721,530 |
| Treasury Stock | ||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Treasury Stock Beginning Balance (in shares) | (5,260,000) | (5,005,000) | (4,580,000) | (2,427,000) | (1,261,000) | (895,000) | (4,580,000) | (895,000) |
| Beginning Balance | $ (136,400) | $ (131,065) | $ (121,804) | $ (63,628) | $ (24,986) | $ (15,977) | $ (121,804) | $ (15,977) |
| Reissued Shares (in shares) | (1,000) | |||||||
| Issuance of Shares under Equity Plans | $ (22) | |||||||
| Issuance of Shares under Equity Plans (in shares) | 0 | (163,000) | 0 | 0 | (114,000) | |||
| Issuance of Shares under Equity Plans | $ 0 | $ (3,541) | $ 0 | $ 0 | $ (2,729) | |||
| Acquisition of Treasury Stock (in shares) | 0 | (255,000) | (262,000) | (1,333,000) | (1,166,000) | (252,000) | ||
| Acquisition of Treasury Stock | $ 0 | $ (5,335) | $ (5,720) | $ (37,516) | $ (38,642) | $ (6,280) | ||
| Treasury Stock Ending Balance (in shares) | 5,261,000 | (5,260,000) | (5,005,000) | (3,760,000) | (2,427,000) | (1,261,000) | 5,261,000 | (3,760,000) |
| Ending Balance | $ (136,422) | $ (136,400) | $ (131,065) | $ (101,144) | $ (63,628) | $ (24,986) | $ (136,422) | $ (101,144) |
| Common Stock | ||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Beginning Balance (in shares) | 36,037,000 | 35,969,000 | 35,559,000 | 35,521,000 | 35,431,000 | 35,100,000 | 35,559,000 | 35,100,000 |
| Beginning Balance | $ 18,019 | $ 17,984 | $ 17,779 | $ 17,760 | $ 17,715 | $ 17,550 | $ 17,779 | $ 17,550 |
| Reissued Shares (in shares) | 5,000 | |||||||
| Issuance of Shares under Equity Plans | $ 2 | |||||||
| Issuance of Shares under Equity Plans (in shares) | 68,000 | 410,000 | 6,000 | 90,000 | 331,000 | |||
| Issuance of Shares under Equity Plans | $ 35 | $ 205 | $ 3 | $ 45 | $ 165 | |||
| Ending Balance (in shares) | 36,042,000 | 36,037,000 | 35,969,000 | 35,527,000 | 35,521,000 | 35,431,000 | 36,042,000 | 35,527,000 |
| Ending Balance | $ 18,021 | $ 18,019 | $ 17,984 | $ 17,763 | $ 17,760 | $ 17,715 | $ 18,021 | $ 17,763 |
| Additional Paid-in Capital | ||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Beginning Balance | 731,891 | 727,842 | 724,384 | 715,513 | 712,597 | 708,668 | 724,384 | 708,668 |
| Stock-Based Compensation | 3,163 | 3,224 | 3,611 | 2,757 | 1,714 | 3,551 | ||
| Reclassification of liability awards to equity awards | 1,841 | |||||||
| Issuance of Shares under Equity Plans | (3) | |||||||
| Issuance of Shares under Equity Plans | 825 | (153) | 83 | 1,202 | 378 | |||
| Ending Balance | 735,051 | 731,891 | 727,842 | 720,194 | 715,513 | 712,597 | 735,051 | 720,194 |
| Retained Earnings | ||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Beginning Balance | 107,611 | 116,494 | 98,546 | 64,320 | 34,732 | 1,881 | 98,546 | 1,881 |
| Cash Dividends | (3,471) | (3,541) | (3,584) | (3,247) | (3,387) | (3,472) | ||
| Net (Loss) Earnings | (15,616) | (5,342) | 21,532 | 24,348 | 32,975 | 36,323 | ||
| Ending Balance | $ 88,524 | $ 107,611 | $ 116,494 | $ 85,421 | $ 64,320 | $ 34,732 | 88,524 | 85,421 |
| Dividends, per share (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.10 | ||
| Accumulated Other Comprehensive Loss | ||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Beginning Balance | $ (608) | $ (347) | $ (739) | $ (450) | $ (670) | $ (797) | (739) | (797) |
| Unrealized (Loss) Gain on Fuel Hedge Derivative Instrument | (235) | 85 | 154 | |||||
| Foreign Currency Translation Adjustment | (611) | (346) | 238 | (254) | 220 | 127 | ||
| Ending Balance | $ (1,454) | $ (608) | $ (347) | $ (704) | $ (450) | $ (670) | $ (1,454) | $ (704) |
Basis and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Credit Facility |
12 Months Ended | |
|---|---|---|
Apr. 01, 2022 |
Dec. 31, 2021 |
|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
| Basis spread, base rate below SOFR | (1.00%) | 1.00% |
| Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
| Debt instrument, basis spread on variable rate | 1.50% | 1.50% |
| Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
| Debt instrument, basis spread on variable rate | 2.25% | 2.25% |
Acquisitions - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|---|
|
Sep. 30, 2022
USD ($)
store
|
Apr. 01, 2022
USD ($)
store
|
Sep. 30, 2022
USD ($)
store
|
Sep. 30, 2021
USD ($)
store
|
Sep. 30, 2022
USD ($)
store
|
Sep. 30, 2022
USD ($)
store
|
Sep. 30, 2021
USD ($)
store
|
|
| Business Acquisition [Line Items] | |||||||
| Number of retail stores | store | 1,278 | 1,278 | 1,321 | 1,278 | 1,278 | 1,321 | |
| Acquisition-related costs | $ 1,659 | $ 0 | $ 13,156 | $ 0 | |||
| BrandsMart | |||||||
| Business Acquisition [Line Items] | |||||||
| Number of retail stores | store | 10 | 10 | 10 | 10 | 10 | ||
| Cash Consideration to BrandsMart U.S.A. | $ 230,000 | $ 230,000 | |||||
| Revenue contributed by acquiree | $ 364,800 | ||||||
| Net losses contributed by acquiree | $ (13,000) | ||||||
| Adjustments to acquired merchandise inventories | $ 23,100 | ||||||
| Acquisition-related costs | $ 1,700 | 13,200 | |||||
| Franchisee Acquisitions | |||||||
| Business Acquisition [Line Items] | |||||||
| Acquisition-related costs | $ 13,200 | ||||||
Acquisitions - Intangibles Acquired (Details) - BrandsMart $ in Thousands |
Apr. 01, 2022
USD ($)
|
|---|---|
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Finite-lived intangible assets, fair value | $ 122,950 |
| Trade Names | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Finite-lived intangible assets, fair value | $ 108,000 |
| Weighted Average Life (in years) | 20 years |
| Non-Compete Agreements | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Finite-lived intangible assets, fair value | $ 250 |
| Weighted Average Life (in years) | 3 years |
| Customer List | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Finite-lived intangible assets, fair value | $ 14,700 |
| Weighted Average Life (in years) | 4 years |
Acquisitions - Pro Forma Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||
| Revenues, Historical Results | $ 593,384 | $ 452,153 | $ 1,659,850 | $ 1,400,702 | ||||
| (Loss) Earnings Before Income Taxes, Historical Results | (20,553) | 32,808 | (5,122) | 125,801 | ||||
| Net (Loss) Earnings | (15,616) | $ (5,342) | $ 21,532 | 24,348 | $ 32,975 | $ 36,323 | 574 | 93,646 |
| BrandsMart | ||||||||
| Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||
| Revenues, Historical Results | 593,384 | 452,153 | 1,659,850 | 1,400,702 | ||||
| Revenues, Pro Forma Combined Results | 593,384 | 637,508 | 1,832,621 | 1,951,321 | ||||
| (Loss) Earnings Before Income Taxes, Historical Results | (20,553) | 32,808 | (5,122) | 125,801 | ||||
| (Loss) Earnings Before Income Taxes, Pro Forma Combined Results | (18,785) | 39,374 | 30,709 | 109,384 | ||||
| Net (Loss) Earnings | (15,616) | 24,348 | 574 | 93,646 | ||||
| Net (Loss) Earnings, Pro Forma Combined Results | $ (14,294) | $ 29,260 | $ 30,230 | $ 81,366 | ||||
Fair Value Measurement - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair value on a recurring basis - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Level 1 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Deferred Compensation Liability | $ 0 | $ 0 |
| Level 2 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Deferred Compensation Liability | (8,157) | (10,930) |
| Level 3 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Deferred Compensation Liability | $ 0 | $ 0 |
Fair Value Measurement - Assets Measured At Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Assets Held for Sale | $ 670 | $ 1,550 |
| Level 1 | Fair value on a nonrecurring basis | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Assets Held for Sale | 0 | 0 |
| Level 2 | Fair value on a nonrecurring basis | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Assets Held for Sale | 670 | 1,550 |
| Level 3 | Fair value on a nonrecurring basis | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Assets Held for Sale | $ 0 | $ 0 |
Indebtedness - Summary of Company's Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Debt | $ 273,961 | $ 10,000 |
| Less: Current Maturities | 19,123 | 10,000 |
| Long-Term Debt | 254,838 | 0 |
| Credit Facility | ||
| Debt Instrument [Line Items] | ||
| Debt | 259,213 | 0 |
| Previous Credit Facility | ||
| Debt Instrument [Line Items] | ||
| Debt | 0 | 10,000 |
| Inventory Loan Payable | ||
| Debt Instrument [Line Items] | ||
| Debt | 14,748 | 0 |
| Revolving Facility | Credit Facility | ||
| Debt Instrument [Line Items] | ||
| Debt | 85,000 | 0 |
| Revolving Facility | Credit Facility | Fixed-Rate Long-Term Debt | ||
| Debt Instrument [Line Items] | ||
| Unamortized debt issuance costs deferred | 800 | |
| Revolving Facility | Credit Facility | Prepaid expenses and other assets | ||
| Debt Instrument [Line Items] | ||
| Unamortized debt issuance costs deferred | 3,100 | 1,700 |
| Term Loan | Credit Facility | ||
| Debt Instrument [Line Items] | ||
| Debt | $ 174,213 | $ 0 |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | $ 593,384 | $ 452,153 | $ 1,659,850 | $ 1,400,702 |
| Lease Revenues and Fees | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 372,127 | 401,383 | 1,167,958 | 1,240,645 |
| Lease Revenues and Fees | Canada | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 4,600 | 5,500 | 14,200 | 17,400 |
| Retail Sales | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 188,734 | 12,283 | 392,189 | 45,606 |
| Non-Retail Sales | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 26,542 | 32,159 | 81,411 | 94,563 |
| Franchise Royalties and Fees | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 5,803 | 6,147 | 17,713 | 19,109 |
| Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | $ 178 | $ 181 | $ 579 | $ 779 |
Commitments and Contingencies (Details) - USD ($) |
Sep. 30, 2022 |
Apr. 01, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Other Commitments [Line Items] | |||
| Loan facility to franchisees, maximum commitment amount | $ 15,000,000 | $ 12,500,000 | |
| Portion that company might be obligated to repay in the event franchisees defaulted | 6,500,000 | ||
| Fair value of franchisee-related borrowings | 1,800,000 | $ 2,200,000 | |
| Loss contingency accrual | 1,900,000 | $ 1,700,000 | |
| Minimum | |||
| Other Commitments [Line Items] | |||
| Range of possible loss not accrued | 0 | ||
| Maximum | |||
| Other Commitments [Line Items] | |||
| Range of possible loss not accrued | $ 500,000 |
Restructuring - Summary of Restructuring Charges (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring Expenses, Net | $ 14,930 | $ 2,899 | $ 23,847 | $ 8,134 |
| Right-of-Use Asset Impairment | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring Expenses, Net | 6,354 | 871 | 10,690 | 3,143 |
| Operating Lease Charges | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring Expenses, Net | 1,583 | 1,495 | 3,947 | 4,246 |
| Fixed Asset Impairment | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring Expenses, Net | 3,554 | 212 | 5,005 | 628 |
| Severance | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring Expenses, Net | 1,491 | 11 | 1,929 | 161 |
| Professional Advisory Fees | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring Expenses, Net | 1,700 | 0 | 1,700 | 0 |
| Other Expenses | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring Expenses, Net | $ 248 | $ 310 | $ 576 | $ (44) |
Restructuring - Summary of Accruals of Restructuring Programs (Details) - Severance $ in Thousands |
9 Months Ended |
|---|---|
|
Sep. 30, 2022
USD ($)
| |
| Restructuring Reserve [Roll Forward] | |
| Balance at January 1, 2022 | $ 0 |
| Restructuring Severance Charges | 1,929 |
| Payments | (1,929) |
| Balance at September 30, 2022 | $ 0 |
Segments - Narrative (Details) |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
|---|---|---|---|---|
|
Mar. 31, 2022
segment
|
Sep. 30, 2022
segment
store
|
Sep. 30, 2022
segment
store
|
Sep. 30, 2021
store
|
|
| Business Acquisition [Line Items] | ||||
| Number of operating segments | 2 | |||
| Number of reportable segments | 2 | |||
| Number of retail stores | store | 1,278 | 1,278 | 1,321 | |
| BrandsMart | ||||
| Business Acquisition [Line Items] | ||||
| Number of operating segments | 1 | 2 | ||
| Number of reportable segments | 1 | 2 | ||
| Number of retail stores | store | 10 | 10 |