Basis and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 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 June 30 (Unaudited)	2017	2016
Company-operated Aaron's Branded Stores	1,093	1,221
Franchised Stores	680	722
Systemwide Stores	1,773	1,943

The following table presents active doors for Progressive Leasing:

Active Doors at June 30 (Unaudited)	2017	2016
Progressive Leasing Active Doors1	19,148	13,930

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   June 30,		Six Months Ended   June 30,
(Shares In Thousands)	2017	2016	2017	2016
Weighted Average Shares Outstanding	70,686	72,761	71,001	72,697
Dilutive Effect of Share-Based Awards	1,011	518	1,039	551
Weighted Average Shares Outstanding Assuming Dilution	71,697	73,279	72,040	73,248

Accounts Receivable Net of Allowances

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

(In Thousands)	June 30, 2017		December 31, 2016
Customers	$	36,782	$	36,227
Corporate	21,397		26,375
Franchisee	26,643		33,175
Accounts Receivable	$	84,822	$	95,777

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

(In Thousands)	June 30, 2017			December 31, 2016
Credit Card Loans	$	77,280		$	64,794
Acquired Loans	23,029			33,840
Loans Receivable, Gross	100,309			98,634
Allowance for Loan Losses	(9,013		)	(6,624		)
Unamortized Fees	(7,559		)	(7,206		)
Loans Receivable, Net	$	83,737		$	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:

	Six Months Ended June 30,
(In Thousands)	2017		2016
Bad Debt Expense	$	68,044	$	56,210
Provision for Returns and Uncollected Renewal Payments	14,062		18,758
Accounts Receivable Provision	$	82,106	$	74,968

Schedule of Lease Merchandise

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

(In Thousands)	June 30, 2017		December 31, 2016
Merchandise on Lease	$	790,505	$	786,936
Merchandise Not on Lease	203,731		212,445
Lease Merchandise, net of Accumulated Depreciation and Allowances	$	994,236	$	999,381

Allowance for Lease Merchandise

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

	Six Months Ended June 30,
(In Thousands)	2017			2016
Beginning Balance	$	33,399		$	33,405
Merchandise Written off, net of Recoveries	(61,034		)	(63,312		)
Provision for Write-offs	63,938			62,031
Ending Balance	$	36,303		$	32,124

Loan Portfolio Credit Quality Indicators

Below is a summary of the credit quality of the Company’s loan portfolio as of June 30, 2017 and December 31, 2016 by Fair Issac and Company (FICO) score as determined at the time of loan origination:

FICO Score Category	June 30, 2017		December 31, 2016
600 or Less	1.7	%	1.8	%
Between 600 and 700	77.2	%	78.1	%
700 or Greater	21.1	%	20.1	%

Schedule of Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following:

(In Thousands)	June 30, 2017		December 31, 2016
Prepaid Expenses	$	85,844	$	75,485
Assets Held for Sale	12,054		8,866
Deferred Tax Asset	5,912		5,912
Income Tax Receivable	12,635		11,884
Other Assets	22,496		18,881
Prepaid Expenses and Other Assets	$	138,941	$	121,028

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:

(In Thousands)	June 30, 2017		December 31, 2016
Accounts Payable	$	54,663	$	71,941
Accrued Insurance Costs	44,120		47,649
Accrued Salaries and Benefits	40,628		41,612
Accrued Real Estate and Sales Taxes	29,521		32,986
Deferred Rent	31,193		31,859
Other Accrued Expenses and Liabilities	81,795		71,719
Accounts Payable and Accrued Expenses	$	281,920	$	297,766

Changes in Accumulated Other Comprehensive Loss (Gain) by Component

Changes in accumulated other comprehensive (loss) income for the six months ended June 30, 2017 are as follows:

(In Thousands)	Foreign Currency
Balance at January 1, 2017	$	(531	)
Other Comprehensive Income	649
Balance at June 30, 2017	$	118