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Restructuring
 9 Months Ended
Sep. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING
2019 Restructuring Program
During the first quarter of 2019, the Company initiated a restructuring program to further optimize its Company-operated Aaron's Business store portfolio, which resulted in the closure and consolidation of 154 underperforming Company-operated stores during the first nine months of 2019. The Company also further rationalized its home office and field support staff, which resulted in a reduction in employee headcount in those areas to more closely align with current business conditions.
Total net restructuring expenses of $5.2 million and $36.2 million were recorded for the three and nine months ended September 30, 2019 under the 2019 restructuring program, all of which were incurred within the Aaron's Business segment. Restructuring expenses for the three and nine months ended September 30, 2019 was comprised of closed store operating lease right-of-use asset impairment and operating lease charges, the impairment of vacant store properties, including the planned exit from one of our store support buildings, workforce reductions, and a loss on the sale of six Canadian stores to a third party. These costs were included in restructuring expenses, net in the condensed consolidated statements of earnings. The Company continually evaluates its Company-operated Aaron's Business store portfolio to determine if it will further rationalize its store base to better align with marketplace-demand. As such, future restructuring expenses related to store relocations, consolidations, and store sales to third parties may be recorded depending on future decisions made regarding our current store footprint. We also expect future restructuring expenses (reversals) due to changes in future sublease activity and potential early buyouts of leases with landlords.
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 Business store 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 expenses of $0.3 million and $1.3 million were recorded for the three and nine months ended September 30, 2019 under the 2017 and 2016 restructuring programs, all of which were incurred within the Aaron's Business segment. Restructuring expenses for the three and nine months ended September 30, 2019 was comprised principally of operating lease charges for stores closed under the restructuring program. These costs were included in restructuring expenses, net in the condensed consolidated statements of earnings. We expect future restructuring expenses (reversals) due to changes in future sublease activity and potential early buyouts of leases with landlords.
The following table summarizes restructuring charges for the three and nine months ended September 30, 2019 and 2018, respectively, under the three programs:
 
Three Months Ended September 30,
Nine Months Ended September 30,
(In Thousands)
2019
 
2018
2019
 
2018
Right-of-Use Asset Impairment and Operating Lease Charges
$
1,828

 
$
586

$
26,616

 
$
1,512

Fixed Asset Impairment
2,174

 
—

4,743

 
—

Severance
376

 
—

3,368

 
601

Other Expenses (Reversals)
73

 
—

1,743

 
(1,176
)
Loss (Gain) on Sale of Store Properties
1,065

 
(49
)
1,065

 
(376
)
Total Restructuring Expenses, Net
$
5,516

 
$
537

$
37,535

 
$
561


To date, the Company has incurred charges of $40.6 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, 2019:
(In Thousands)
Contractual Lease Obligations
 
Severance
Balance at January 1, 2019
$
8,472

 
$
651

ASC 842 Transition Adjustment1
(8,472
)
 
—

Adjusted Balance at January 1, 2019
—

 
651

Restructuring Charges
—

 
3,368

Payments
—

 
(2,902
)
Balance at September 30, 2019
$
—

 
$
1,117


1 Upon the adoption of ASC 842 on January 1, 2019, the Company reclassified the remaining liability for contractual lease obligations from accounts payable and accrued expenses to a reduction to operating lease right-of-use assets within its condensed consolidated balance sheets.