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Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Schedules of Company Operated Store Activity
The following table presents active doors for Progressive Leasing:
For the Year Ended December 31 (Unaudited)
2017
 
2016
 
2015
Progressive Leasing Active Doors1
26,861

 
21,840

 
16,947

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 twelve month period.
The following table presents store count by ownership type for the Aaron’s Business operations:
Stores at December 31 (Unaudited)
2017

2016

2015
Company-Operated Stores
 
 
 
 
 
Aaron’s Branded stores
1,175

 
1,165

 
1,223

HomeSmart
—

 
—

 
82

Total Company-Operated Stores
1,175

 
1,165

 
1,305

Franchised Stores1
551

 
699

 
734

Systemwide Stores
1,726

 
1,864

 
2,039

1As of December 31, 2017, 2016 and 2015, the Company has awarded 580, 749 and 813 franchises, respectively.
Allowance for Lease Merchandise
The following table shows the components of the allowance for lease merchandise write-offs:
 
Year ended December 31,
(In Thousands)
2017
 
2016
 
2015
Beginning Balance
$
33,399

 
$
33,405

 
$
27,573

Merchandise Written off, net of Recoveries
(143,230
)
 
(134,110
)
 
(130,548
)
Provision for Write-offs
145,460

 
134,104

 
136,380

Ending Balance
$
35,629

 
$
33,399

 
$
33,405
Calculation of Dilutive Stock Awards
The following table shows the calculation of dilutive share-based awards:
 
Year Ended December 31,
(Shares In Thousands)
2017
 
2016
 
2015
Weighted Average Shares Outstanding
70,837

 
72,354

 
72,568

Dilutive Effect of Share-Based Awards
1,284

 
659

 
475

Weighted Average Shares Outstanding Assuming Dilution
72,121

 
73,013

 
73,043
Accounts Receivable Net of Allowances
Accounts receivable, net of allowances, consist of the following:
 
December 31,
(In Thousands)
2017
 
2016
Customers
$
48,661

 
$
36,227

Corporate
23,431

 
26,375

Franchisee
27,795

 
33,175

 
$
99,887

 
$
95,777

The following is a summary of the Company’s loans receivable, net:
 
December 31,
(In Thousands)
2017
 
2016
Credit Card Loans1
$
89,728

 
$
64,794

Acquired Loans2
16,213

 
33,840

Loans Receivable, Gross
105,941

 
98,634

 


 
 
Allowance for Loan Losses
(11,454
)
 
(6,624
)
Unamortized Fees
(8,375
)
 
(7,206
)
Loans Receivable, Net of Allowances and Unamortized Fees
$
86,112

 
$
84,804


1 "Credit Card Loans" are loans originated after the 2015 acquisition of DAMI.
2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of DAMI.
Allowance for Doubtful Accounts
The following table shows the components of the accounts receivable allowance:
 
Year Ended December 31,
(In Thousands)
2017
 
2016
 
2015
Beginning Balance
$
35,690

 
$
34,861

 
$
27,401

Accounts Written Off, net of Recoveries
(192,133
)
 
(167,094
)
 
(155,651
)
Accounts Receivable Provision
203,389

 
167,923

 
163,111

Ending Balance
$
46,946

 
$
35,690

 
$
34,861


The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the years ended December 31:
 
Year Ended December 31,
(In Thousands)
2017
 
2016
 
2015
Bad Debt Expense
170,574

 
128,333

 
122,184

Provision for Returns and Uncollected Renewal Payments
32,815

 
39,590

 
40,927

Accounts Receivable Provision
$
203,389

 
$
167,923

 
$
163,111
Loan Portfolio Credit Quality Indicators
Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2017 and 2016 by Fair Isaac and Company (FICO) score as determined at the time of loan origination:
 
December 31,
FICO Score Category
2017
 
2016
600 or Less
1.7
%
 
1.8
%
Between 600 and 700
76.5
%
 
78.1
%
700 or Greater
21.8
%
 
20.1
%
Schedule of Prepaid Expenses and Other Assets
Prepaid Expenses and Other Assets
Prepaid expenses and other assets consist of the following:
 
December 31,
(In Thousands)
2017
 
2016
Prepaid Expenses
$
31,509

 
$
21,769

Prepaid Insurance
36,735

 
53,716

Assets Held for Sale
10,118

 
8,866

Deferred Tax Asset
11,589

 
5,912

Other Assets
26,548

 
18,881

 
$
116,499

 
$
109,144
Schedule of Accounts Payable and Accrued Expenses
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consist of the following:
 
December 31,
(In Thousands)
2017
 
2016
Accounts Payable
$
80,821

 
$
71,941

Accrued Insurance Costs
41,680

 
47,649

Accrued Salaries and Benefits
46,511

 
41,612

Accrued Real Estate and Sales Taxes
31,054

 
32,986

Deferred Rent
29,912

 
31,859

Other Accrued Expenses and Liabilities
74,832

 
71,719

 
$
304,810

 
$
297,766