Segments (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations

The following is a summary of earnings (loss) before income taxes by segment:

	Three Months Ended   June 30,						Six Months Ended   June 30,
(In Thousands)	2018			2017			2018			2017
Earnings (Loss) Before Income Taxes:
Progressive Leasing	$	44,575		$	38,240		$	79,554		$	73,998
Aaron's Business1	7,697			21,450			40,776			70,080
DAMI	(2,292		)	(2,695		)	(3,598		)	(4,460		)
Total Earnings Before Income Taxes	$	49,980		$	56,995		$	116,732		$	139,618

¹ Earnings before income taxes for the Aaron's Business during the three months ended June 30, 2018 includes a full impairment of the PerfectHome investment of $20.1 million. This charge is net of restructuring reversals of $0.9 million related to reversals of previously recorded restructuring charges partially offset by charges related to Aaron's contractual lease obligations for closed stores.

The following is a summary of total assets by segment and shared corporate-related assets.

(In Thousands)	June 30, 2018		December 31, 2017
Assets:
Progressive Leasing	$	1,019,520	$	1,022,413
Aaron's Business1	1,253,427		1,261,234
DAMI	97,818		108,306
Other2	248,185		300,311
Total Assets	$	2,618,950	$	2,692,264

¹ Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the condensed consolidated balance sheets of $15.9 million and $16.3 million as of June 30, 2018 and December 31, 2017, respectively.

² Corporate-related assets that benefit multiple segments are reported as other assets.

The following table presents revenue by source and by segment for the three months ended June 30, 2018:

	Three Months Ended June 30, 2018
(In Thousands)	Progressive Leasing		Aaron's Business		DAMI		Total
Lease Revenues and Fees1	$	483,666	$	362,272	$	—	$	845,938
Retail Sales2	—		6,592		—		6,592
Non-Retail Sales2	—		53,661		—		53,661
Franchise Royalties and Fees2	—		12,125		—		12,125
Interest and Fees on Loans Receivable3	—		—		9,208		9,208
Other	—		335		—		335
Total	$	483,666	$	434,985	$	9,208	$	927,859

¹ Substantially all lease revenues and fees are within the scope of ASC 840, Leases. The Company had $4.4 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

² Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $9.1 million is related to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. The remaining revenue is primarily related to fees collected for pre-opening services, which are being deferred and recognized as revenue over the agreement term, and advertising fees charged to franchisees. Retail and non-retail sales are recognized at the point of sale.

³ Revenue within the scope of ASC 310, Credit Card Interest & Fees.

The following table presents revenue by source and by segment for the three months ended June 30, 2017:

	Three Months Ended June 30, 2017
(In Thousands)	Progressive Leasing		Aaron's Business		DAMI		Total
Lease Revenues and Fees1	$	373,499	$	344,590	$	—	$	718,089
Retail Sales2	—		6,106		—		6,106
Non-Retail Sales2	—		69,602		—		69,602
Franchise Royalties and Fees2	—		12,824		—		12,824
Interest and Fees on Loans Receivable3	—		—		8,532		8,532
Other	—		491		—		491
Total	$	373,499	$	433,613	$	8,532	$	815,644

¹ Substantially all revenue is within the scope of ASC 840, Leases. The Company had $0.6 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

² Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $11.9 million relates to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. Retail and non-retail sales are recognized at the point of sale.

³ Revenue within the scope of ASC 310, Credit Card Interest & Fees.

The following table presents revenue by source and by segment for the six months ended June 30, 2018:

	Six Months Ended June 30, 2018
(In Thousands)	Progressive Leasing		Aaron's Business		DAMI		Total
Lease Revenues and Fees1	$	970,183	$	745,822	$	—	$	1,716,005
Retail Sales2	—		15,108		—		15,108
Non-Retail Sales2	—		106,891		—		106,891
Franchise Royalties and Fees2	—		24,987		—		24,987
Interest and Fees on Loans Receivable3	—		—		18,750		18,750
Other	—		927		—		927
Total	$	970,183	$	893,735	$	18,750	$	1,882,668

¹ Substantially all lease revenues and fees are within the scope of ASC 840, Leases. The Company had $8.4 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

² Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $19.2 million is related to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. The remaining revenue is primarily related to fees collected for pre-opening services, which are being deferred and recognized as revenue over the agreement term, and advertising fees charged to franchisees. Retail and non-retail sales are recognized at the point of sale.

³ Revenue within the scope of ASC 310, Credit Card Interest & Fees.

The following table presents revenue by source and by segment for the six months ended June 30, 2017:

	Six Months Ended June 30, 2017
(In Thousands)	Progressive Leasing		Aaron's Business		DAMI		Total
Lease Revenues and Fees1	$	739,614	$	722,097	$	—	$	1,461,711
Retail Sales2	—		14,884		—		14,884
Non-Retail Sales2	—		138,929		—		138,929
Franchise Royalties and Fees2	—		27,025		—		27,025
Interest and Fees on Loans Receivable3	—		—		16,733		16,733
Other	—		916		—		916
Total	$	739,614	$	903,851	$	16,733	$	1,660,198

¹ Substantially all revenue is within the scope of ASC 840, Leases. The Company had $1.5 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

² Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $25.1 million relates to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. Retail and non-retail sales are recognized at the point of sale.

³ Revenue within the scope of ASC 310, Credit Card Interest & Fees.