Basis and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Schedule Of Company Operated Store Activity

The following table presents store count by ownership type for the Aaron's Business operations:

Stores as of March 31 (Unaudited)	2017	2016
Company-operated stores
Aaron's Branded	1,155	1,223
HomeSmart	—	82
Total Company-operated stores	1,155	1,305
Franchised stores	688	729
Systemwide stores	1,843	2,034

The following table presents active doors for Progressive Leasing:

Active Doors at March 31 (Unaudited)	2017	2016
Progressive Leasing Active Doors1	18,627	13,521

¹ An active door is a retail store location at which at least one virtual lease-to-own transaction has been completed during the trailing three month period.

Calculation of Dilutive Stock Awards

The following table shows the calculation of dilutive share-based awards:

	Three Months Ended   March 31,
(Shares In Thousands)	2017	2016
Weighted average shares outstanding	71,318	72,634
Dilutive effect of share-based awards	1,068	583
Weighted average shares outstanding assuming dilution	72,386	73,217

Accounts Receivable Net of Allowances

Accounts receivable, net of allowances, consist of the following:

(In Thousands)	March 31, 2017		December 31, 2016
Customers	$	33,026	$	36,227
Corporate	27,596		26,375
Franchisee	33,087		33,175
	$	93,709	$	95,777

The following is a summary of the Company’s loans receivable, net:

(In Thousands)	March 31, 2017			December 31, 2016
Credit Card Loans	$	70,525		$	64,794
Acquired Loans	27,714			33,840
Loans Receivable, Gross	98,239			98,634
Allowance for Loan Losses	(7,215		)	(6,624		)
Unamortized Fees	(7,431		)	(7,206		)
Loans Receivable, Net	$	83,593		$	84,804

Components of the Accounts Receivable Provision

The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments:

	Three Months Ended March 31,
(In Thousands)	2017		2016
Bad debt expense	$	31,985	$	27,939
Provision for returns and uncollected renewal payments	4,150		6,575
Accounts receivable provision	$	36,135	$	34,514

Schedule of Lease Merchandise

The following is a summary of lease merchandise, net of accumulated depreciation and allowances:

(In Thousands)	March 31, 2017		December 31, 2016
Merchandise on Lease	$	783,178	$	786,936
Merchandise Not on Lease	201,377		212,445
Lease Merchandise, net of Accumulated Depreciation and Allowances	$	984,555	$	999,381

Allowance for Lease Merchandise

The following table shows the components of the allowance for lease merchandise write-offs:

	Three Months Ended March 31,
(In Thousands)	2017			2016
Beginning Balance	$	33,399		$	33,405
Merchandise Written off, net of Recoveries	(30,140		)	(32,737		)
Provision for Write-offs	30,790			33,906
Ending Balance	$	34,049		$	34,574

Loan Portfolio Credit Quality Indicators

Below is a summary of the credit quality of the Company’s loan portfolio as of March 31, 2017 and December 31, 2016 by Fair Issac and Company (FICO) score as determined at the time of loan origination:

FICO Score Category	March 31, 2017		December 31, 2016
600 or Less	1.8	%	1.8	%
Between 600 and 700	77.4	%	78.1	%
700 or Greater	20.8	%	20.1	%

Schedule of Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following:

(In Thousands)	March 31, 2017		December 31, 2016
Prepaid Expenses	$	75,524	$	75,485
Assets Held for Sale	8,749		8,866
Deferred Tax Asset	5,912		5,912
Income Tax Receivable	8,672		11,884
Other Assets	22,073		18,881
	$	120,930	$	121,028

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:

(In Thousands)	March 31, 2017		December 31, 2016
Accounts Payable	$	52,063	$	71,941
Accrued Insurance Costs	43,138		47,649
Accrued Salaries and Benefits	46,266		41,612
Income Taxes Payable	37,663		3,592
Accrued Real Estate and Sales Taxes	30,397		32,986
Deferred Rent	31,211		31,859
Other Accrued Expenses and Liabilities	66,314		68,127
	$	307,052	$	297,766

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Changes in accumulated other comprehensive loss for the three months ended March 31, 2017 are as follows:

(In Thousands)	Foreign Currency
Balance at January 1, 2017	$	(531	)
Other Comprehensive Income	203
Balance at March 31, 2017	$	(328	)