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Segment Information
9 Months Ended
Sep. 30, 2018
Segment Information [Abstract]  
Segment Information
Segment Information
The operating segments reported below are the segments for which separate financial information is available and for which segment results are evaluated by the chief operating decision makers. Our operating segments are organized based on factors including, but not limited to, type of business transactions, geographic location and store ownership. All operating segments offer merchandise from four basic product categories: consumer electronics, appliances, computers, furniture and accessories. Our Core U.S. and Franchising segments also offer smartphones.
Segment information for the three and nine months ended September 30, 2018 and 2017 is as follows: 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Revenues
 
 
 
 
 
 
 
Core U.S.
$
451,320

 
$
442,763

 
$
1,389,081

 
$
1,390,687

Acceptance Now
173,438

 
184,293

 
549,435

 
622,160

Mexico
12,784

 
12,237

 
37,122

 
35,351

Franchising
7,400

 
4,672

 
23,077

 
15,388

Total revenues
$
644,942

 
$
643,965

 
$
1,998,715

 
$
2,063,586

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Gross profit
 
 
 
 
 
 
 
Core U.S.
$
313,771

 
$
309,779

 
$
975,231

 
$
965,739

Acceptance Now
81,586

 
92,088

 
256,441

 
310,451

Mexico
8,885

 
8,466

 
25,756

 
24,668

Franchising
3,498

 
2,132

 
11,176

 
6,803

Total gross profit
$
407,740

 
$
412,465

 
$
1,268,604

 
$
1,307,661

Beginning in 2018, we implemented an intercompany book value adjustment charge for all rental merchandise transfers from Acceptance Now locations to Core U.S. stores. For the three and nine months ended September 30, 2018, book value adjustments on intercompany rental merchandise transfers were $2.9 million and $9.3 million, respectively, resulting in a corresponding increase in gross profit for the Core U.S. and decrease in gross profit for Acceptance Now.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Operating profit (loss)
 
 
 
 
 
 
 
Core U.S.
$
43,221

 
$
23,859

 
$
115,135

 
$
79,241

Acceptance Now
26,278

 
10,379

 
70,865

 
49,595

Mexico
922

 
(242
)
 
2,306

 
(122
)
Franchising
522

 
1,032

 
3,687

 
3,565

Total segments
70,943

 
35,028

 
191,993

 
132,279

Corporate
(45,311
)
 
(43,473
)
 
(149,480
)
 
(140,445
)
Total operating profit (loss)
$
25,632

 
$
(8,445
)
 
$
42,513

 
$
(8,166
)
Beginning in 2018, we implemented an intercompany book value adjustment charge for all rental merchandise transfers from Acceptance Now locations to Core U.S. stores. For the three and nine months ended September 30, 2018, book value adjustments for inventory charge-offs related to intercompany rental merchandise transfers were $0.5 million and $1.7 million, respectively, resulting in a corresponding increase in operating profit for the Core U.S. and decrease in operating profit for Acceptance Now.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Depreciation, amortization and impairment of intangibles
 
 
 
 
 
 
 
Core U.S.
$
6,216

 
$
7,725

 
$
19,482

 
$
23,715

Acceptance Now
421

 
568

 
1,288

 
1,983

Mexico
222

 
496

 
839

 
1,549

Franchising
45

 
45

 
133

 
133

Total segments
6,904

 
8,834

 
21,742

 
27,380

Corporate
10,042

 
9,845

 
30,532

 
28,548

Total depreciation, amortization and impairment of intangibles
$
16,946

 
$
18,679

 
$
52,274

 
$
55,928

We recorded an impairment of intangibles of $3.9 million in the Acceptance Now segment during the first quarter of 2017 that is not included in the table above. The impairment charge was recorded to Other Charges in the Condensed Consolidated Statement of Operations.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Capital expenditures
 
 
 
 
 
 
 
Core U.S.
$
3,586

 
$
6,625

 
$
12,801

 
$
21,333

Acceptance Now
76

 
430

 
156

 
1,525

Mexico
113

 
56

 
151

 
103

Total segments
3,775

 
7,111

 
13,108

 
22,961

Corporate
3,021

 
6,258

 
9,383

 
30,567

Total capital expenditures
$
6,796

 
$
13,369

 
$
22,491

 
$
53,528

(in thousands)
September 30, 2018
 
December 31, 2017
On rent rental merchandise, net
 
 
 
Core U.S.
$
378,221

 
$
408,993

Acceptance Now
241,044

 
278,443

Mexico
15,653

 
14,367

Total on rent rental merchandise, net
$
634,918

 
$
701,803

(in thousands)
September 30, 2018
 
December 31, 2017
Held for rent rental merchandise, net
 
 
 
Core U.S.
$
134,759

 
$
156,039

Acceptance Now
1,290

 
4,940

Mexico
5,330

 
6,209

Total held for rent rental merchandise, net
$
141,379

 
$
167,188

(in thousands)
September 30, 2018
 
December 31, 2017
Assets by segment
 
 
 
Core U.S.
$
709,074

 
$
776,296

Acceptance Now
306,553

 
350,970

Mexico
30,747

 
33,529

Franchising
3,899

 
3,802

Total segments
1,050,273

 
1,164,597

Corporate
301,820

 
256,184

Total assets
$
1,352,093

 
$
1,420,781