XML 29 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segments (Tables)
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations
Corporate-related assets that benefit multiple segments are reported as other assets in the table below.
(In Thousands)
June 30,
2017
 
December 31,
2016
Assets:
 
 
 
Aaron's Business1
$
1,103,084

 
$
1,199,213

Progressive Leasing
940,300

 
919,487

DAMI
102,183

 
102,958

Other
402,563

 
394,078

Total Assets
$
2,548,130

 
$
2,615,736

1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the condensed consolidated balance sheets of $15.6 million and $14.3 million as of June 30, 2017 and December 31, 2016, respectively.
The Company determines earnings (loss) before income taxes for all reportable segments in accordance with U.S. GAAP. Interest expense is allocated to the Progressive Leasing and DAMI segments based on a percentage of the outstanding balances of its intercompany borrowings and of the debt incurred when it was acquired.
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(In Thousands)
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Aaron's Business
$
433,613

 
$
485,477

 
$
903,851

 
$
1,028,476

Progressive Leasing
373,499

 
298,574

 
739,614

 
605,239

DAMI
8,532

 
5,302

 
16,733

 
10,065

Total Revenues from External Customers
$
815,644

 
$
789,353

 
$
1,660,198

 
$
1,643,780

 
 
 
 
 
 
 
 
Earnings (Loss) Before Income Taxes:
 
 
 
 
 
 
 
Aaron's Business1
$
21,450

 
$
34,321

 
$
70,080

 
$
95,017

Progressive Leasing
38,240

 
29,083

 
73,998

 
50,997

DAMI
(2,695
)
 
(2,280
)
 
(4,460
)
 
(5,162
)
Total Earnings Before Income Taxes
$
56,995

 
$
61,124

 
$
139,618

 
$
140,852


1 Earnings before income taxes for the Aaron's Business during the six months ended June 30, 2017 includes restructuring charges of $13.5 million related to store contractual lease obligations, severance costs and impairment charges in connection with the Company's strategic decision to close Company-operated stores, of which $13.3 million was incurred during the three months ended June 30, 2017.
Earnings before income taxes for the Aaron's Business during the six months ended June 30, 2016 were impacted by: (1) a gain of $11.1 million on the January 29, 2016 sale of the Company's corporate office building; (2) a loss of $5.6 million related to exiting the HomeSmart business and the write-down of the HomeSmart disposal group to its fair value less cost to sell upon its classification as held for sale; and (3) charges of $3.7 million related to the retirement of the Company's Chief Financial Officer.