Segments (Tables)

12 Months Ended

Dec. 31, 2018

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



	Year Ended December 31,
(In Thousands)	2018			2017			2016
Earnings (Loss) Before Income Tax (Benefit) Expense:
Progressive Leasing	$	175,015		$	140,224		$	104,686
Aaron’s Business	84,683			110,642			123,009
DAMI	(7,494		)	(11,289		)	(9,273		)
Total Earnings Before Income Tax (Benefit) Expense	$	252,204		$	239,577		$	218,422

Corporate-related assets that benefit multiple segments are reported as other assets in the table below.



	December 31,
(In Thousands)	2018		2017
Assets:
Progressive Leasing	$	1,088,227	$	1,022,413
Aaron’s Business¹	1,483,102		1,261,234
DAMI	95,341		108,306
Other	160,022		300,311
Total Assets	$	2,826,692	$	2,692,264

Assets From Canadian Operations (included in totals above):
Aaron’s Business	$	25,893	$	20,223

¹ Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the consolidated balance sheets of $15.2 million and $16.3 million as of December 31, 2018 and 2017, respectively.



	Year Ended December 31,
(In Thousands)	2018			2017			2016
Depreciation and Amortization¹:
Progressive Leasing	$	27,974		$	29,048		$	30,727
Aaron’s Business	64,744			52,251			50,658
DAMI	1,432			1,273			993
Total Depreciation and Amortization	$	94,150		$	82,572		$	82,378

Interest Expense:
Progressive Leasing	$	16,288		$	18,577		$	20,042
Aaron’s Business	(2,944		)	(2,366		)	(768		)
DAMI	3,096			4,327			4,116
Total Interest Expense	$	16,440		$	20,538		$	23,390

Capital Expenditures:
Progressive Leasing	$	10,711		$	8,213		$	6,084
Aaron’s Business	67,099			48,335			50,582
DAMI	1,035			1,425			787
Total Capital Expenditures	$	78,845		$	57,973		$	57,453

¹Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.

The following table presents revenue by source and by segment for the year ended December 31, 2018:



	Year Ended December 31, 2018
(In Thousands)	Progressive Leasing		Aaron's Business⁴		DAMI		Total
Lease Revenues and Fees¹	$	1,998,981	$	1,507,437	$	—	$	3,506,418
Retail Sales²	—		31,271		—		31,271
Non-Retail Sales²	—		207,262		—		207,262
Franchise Royalties and Fees²	—		44,815		—		44,815
Interest and Fees on Loans Receivable³	—		—		37,318		37,318
Other	—		1,839		—		1,839
Total	$	1,998,981	$	1,792,624	$	37,318	$	3,828,923

¹Substantially all lease revenues and fees are within the scope of ASC 840, Leases. The Company had $19.8 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

²Revenue within the scope of ASC 606, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $33.3 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 sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise.

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

⁴Includes revenues from Canadian operations of $21.3 million, which are primarily Lease Revenues and Fees.

The following table presents revenue by source and by segment for the year ended December 31, 2017:



	Year Ended December 31, 2017
(In Thousands)	Progressive Leasing		Aaron's Business⁴		DAMI		Total
Lease Revenues and Fees¹	$	1,566,413	$	1,433,818	$	—	$	3,000,231
Retail Sales²	—		27,465		—		27,465
Non-Retail Sales²	—		270,253		—		270,253
Franchise Royalties and Fees²	—		48,278		—		48,278
Interest and Fees on Loans Receivable³	—		—		34,925		34,925
Other	—		2,556		—		2,556
Total	$	1,566,413	$	1,782,370	$	34,925	$	3,383,708

¹Substantially all revenue is within the scope of ASC 840, Leases. The Company had $6.3 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

²Revenue within the scope of ASC 605, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $44.6 million relates to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise.

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

⁴Includes revenues from Canadian operations of $18.3 million, which are primarily Lease Revenues and Fees.

The following table presents revenue by source and by segment for the year ended December 31, 2016:



	Year Ended December 31, 2016
(In Thousands)	Progressive Leasing		Aaron's Business⁴		DAMI		Total
Lease Revenues and Fees¹	$	1,237,597	$	1,543,227	$	—	$	2,780,824
Retail Sales²	—		29,418		—		29,418
Non-Retail Sales²	—		309,446		—		309,446
Franchise Royalties and Fees²	—		58,350		—		58,350
Interest and Fees on Loans Receivable³	—		—		24,080		24,080
Other	—		5,598		—		5,598
Total	$	1,237,597	$	1,946,039	$	24,080	$	3,207,716

¹Substantially all revenue is within the scope of ASC 840, Leases. The Company had $2.8 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.

²Revenue within the scope of ASC 605, Revenue from Contracts with Customers. Of the Franchise Royalties and Fees, $53.7 million relates to franchise royalty income that is recognized as the franchisee collects cash revenue from its customers. Retail sales are recognized as revenue at the point of sale. Non-retail sales are recognized as revenue upon delivery of the merchandise.

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

⁴Includes revenues from Canadian operations of $12.4 million, which are primarily Lease Revenues and Fees.