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Restructuring
 9 Months Ended
Sep. 30, 2018
Restructuring and Related Activities [Abstract]  
Restructuring
RESTRUCTURING
2017 and 2016 Restructuring Programs
During the years ended December 31, 2017 and 2016, the Company initiated restructuring programs to rationalize its Company-operated Aaron's store base portfolio to better align with marketplace demand. The programs resulted in the closure and consolidation of 139 underperforming Company operated stores throughout 2016, 2017, and 2018. The Company also optimized its home office staff and field support, which resulted in a reduction in employee headcount in those areas to more closely align with current business conditions.
Total net restructuring charges of $0.5 million and $0.6 million were recorded for the three and nine months ended September 30, 2018, all of which were incurred within the Aaron's Business segment. Restructuring activity for the three months ended September 30, 2018 was comprised of charges to record changes in assumptions related to Aaron's contractual lease obligations for closed stores, partially offset by gains recorded on the sale of properties closed under the restructuring program. These costs were included in net restructuring expenses in the condensed consolidated statements of earnings. The Company does not expect to incur any further material charges under the 2017 and 2016 restructuring programs. However, this estimate is subject to change based on future changes in assumptions for the remaining minimum lease obligations for stores closed under the restructuring programs, including changes related to sublease assumptions and potential earlier buyouts of leases with landlords.
The following table summarizes restructuring charges for the three and nine months ended September 30, 2018 and 2017, respectively, under both plans:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands)
2018
 
2017
 
2018
 
20171
Contractual Lease Obligations
$
586

 
$
694

 
$
1,512

 
$
12,011

Severance (Reversals) Expense, Net
—

 
(285
)
 
601

 
1,306

Other Reversals
—

 
—

 
(1,176
)
 
—

Gain on Sale of Closed Store Properties
(49
)
 
—

 
(376
)
 
—

Fixed Asset Impairment
—

 
436

 
—

 
1,300

Restructuring Expenses, Net
$
537

 
$
845

 
$
561

 
$
14,617


1 Substantially all restructuring charges incurred during 2017 were incurred within the Aaron's Business segment. The Company also incurred restructuring charges of $0.3 million during the nine months ended September 30, 2017 within the DAMI segment related primarily to the segment's relocation of its corporate offices.
To date, the Company has incurred charges of $38.8 million under the 2016 and 2017 restructuring programs.
The following table summarizes the balances of the accruals for the restructuring programs, which are recorded in accounts payable and accrued expenses in the condensed consolidated balance sheets, and the activity for the nine months ended September 30, 2018:
(In Thousands)
Contractual Lease Obligations
 
Severance
Balance at January 1, 2018
$
12,437

 
$
2,303

Charges
—

 
601

Adjustments1
1,512

 
—

Restructuring Charges
1,512

 
601

Payments
(4,559
)
 
(1,895
)
Balance at September 30, 2018
$
9,390

 
$
1,009

1 Adjustments relate to early buyouts of leases, changes in sublease assumptions and interest accretion.