Basis and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Schedule Of Company Operated Store Activity

The following table presents active doors for Progressive Leasing:

Active Doors at September 30 (Unaudited)	2017	2016
Progressive Leasing Active Doors1	19,523	15,493

¹ An active door is a retail store location at which at least one virtual lease-to-own transaction has been completed during the trailing three month period.

The following table presents store count by ownership type for the Aaron's Business operations:

Stores as of September 30 (Unaudited)	2017	2016
Company-operated Aaron's Branded Stores	1,181	1,228
Franchised Stores	569	703
Systemwide Stores	1,750	1,931

Calculation of Dilutive Stock Awards

The following table shows the calculation of dilutive share-based awards:

	Three Months Ended   September 30,		Nine Months Ended   September 30,
(Shares In Thousands)	2017	2016	2017	2016
Weighted Average Shares Outstanding	70,746	72,608	70,914	72,667
Dilutive Effect of Share-Based Awards	1,349	591	1,143	564
Weighted Average Shares Outstanding Assuming Dilution	72,095	73,199	72,057	73,231

Accounts Receivable Net of Allowances

Accounts receivable, net of allowances, consist of the following:

(In Thousands)	September 30, 2017		December 31, 2016
Customers	$	41,883	$	36,227
Corporate	26,853		26,375
Franchisee	23,425		33,175
Accounts Receivable	$	92,161	$	95,777

The following is a summary of the Company’s loans receivable, net:

(In Thousands)	September 30, 2017			December 31, 2016
Credit Card Loans	$	84,240		$	64,794
Acquired Loans	19,671			33,840
Loans Receivable, Gross	103,911			98,634
Allowance for Loan Losses	(10,462		)	(6,624		)
Unamortized Fees	(8,347		)	(7,206		)
Loans Receivable, Net	$	85,102		$	84,804

Components of the Accounts Receivable Provision

The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments:

	Nine Months Ended September 30,
(In Thousands)	2017		2016
Bad Debt Expense	$	118,749	$	91,635
Provision for Returns and Uncollected Renewal Payments	23,393		28,045
Accounts Receivable Provision	$	142,142	$	119,680

Schedule of Lease Merchandise

The following is a summary of lease merchandise, net of accumulated depreciation and allowances:

(In Thousands)	September 30, 2017		December 31, 2016
Merchandise on Lease	$	820,929	$	786,936
Merchandise Not on Lease	227,340		212,445
Lease Merchandise, net of Accumulated Depreciation and Allowances	$	1,048,269	$	999,381

Allowance for Lease Merchandise

The following table shows the components of the allowance for lease merchandise write-offs:

	Nine Months Ended September 30,
(In Thousands)	2017			2016
Beginning Balance	$	33,399		$	33,405
Merchandise Written off, net of Recoveries	(101,924		)	(100,058		)
Provision for Write-offs	107,450			98,587
Ending Balance	$	38,925		$	31,934

Loan Portfolio Credit Quality Indicators

Below is a summary of the credit quality of the Company’s loan portfolio as of September 30, 2017 and December 31, 2016 by Fair Issac and Company (FICO) score as determined at the time of loan origination:

FICO Score Category	September 30, 2017		December 31, 2016
600 or Less	1.7	%	1.8	%
Between 600 and 700	76.9	%	78.1	%
700 or Greater	21.4	%	20.1	%

Schedule of Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following:

(In Thousands)	September 30, 2017		December 31, 2016
Prepaid Expenses	$	87,042	$	75,485
Assets Held for Sale	11,925		8,866
Deferred Tax Asset	5,912		5,912
Income Tax Receivable	22,480		11,884
Other Assets	24,315		18,881
Prepaid Expenses and Other Assets	$	151,674	$	121,028

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:

(In Thousands)	September 30, 2017		December 31, 2016
Accounts Payable	$	90,409	$	71,941
Accrued Insurance Costs	49,306		47,649
Accrued Salaries and Benefits	49,696		41,612
Accrued Real Estate and Sales Taxes	31,763		32,986
Deferred Rent	30,472		31,859
Other Accrued Expenses and Liabilities	74,380		71,719
Accounts Payable and Accrued Expenses	$	326,026	$	297,766

Changes in Accumulated Other Comprehensive Loss (Gain) by Component

Changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 are as follows:

(In Thousands)	Foreign Currency
Balance at January 1, 2017	$	(531	)
Other Comprehensive Income	1,431
Balance at September 30, 2017	$	900