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Restructuring
 12 Months Ended
Dec. 31, 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 155 underperforming Company-operated stores during 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 $38.4 million were recorded during the year ended December 31, 2019 under the 2019 restructuring program, all of which were incurred within the Aaron's Business segment. Restructuring expenses were comprised mainly 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 consolidated statements of earnings. We also expect future restructuring expenses (reversals) due to changes in expected sublease activity and potential early buyouts of leases with landlords, as well as continuing variable maintenance charges and taxes.
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. Additional restructuring charges may result from our strategy to reposition and reinvest in our next generation store concepts to appeal to our target customer market in better, more profitable locations.
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 Aaron's 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 $1.6 million were recorded during the year ended December 31, 2019 under the 2017 and 2016 restructuring programs, all of which were incurred within the Aaron's Business segment. Restructuring activity for the year ended December 31, 2019 was comprised principally of operating lease charges for stores closed under the restructuring programs. These costs were included in restructuring expenses, net in the consolidated statements of earnings. We expect future restructuring expenses (reversals) due to changes in expected future sublease activity and potential early buyouts of leases with landlords, as well as continuing variable maintenance charges and taxes. To date, the Company has incurred charges of $40.9 million under the 2017 and 2016 restructuring programs.

The following table summarizes the balances of the accruals for both programs, which are recorded in accounts payable and accrued expenses in the consolidated balance sheets, and the activity for the years ended December 31, 2019 and 2018:
(In Thousands)
Contractual Lease Obligations
 
Severance
 
Total
Balance at January 1, 2018
$
12,437

 
$
2,303

 
$
14,740

Charges
—

 
601

 
601

Adjustments1
2,057

 
—

 
2,057

Restructuring Charges
2,057

 
601

 
2,658

Payments
(6,022
)
 
(2,253
)
 
(8,275
)
Balance at December 31, 2018
8,472

 
651

 
9,123

ASC 842 Transition Adjustment1
(8,472
)
 
—

 
(8,472
)
Adjusted Balance at January 1, 2019
—

 
651

 
651

Restructuring Charges
—

 
3,403

 
3,403

Payments
—

 
(3,298
)
 
(3,298
)
Balance at December 31, 2019
$
—

 
$
756

 
$
756


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 consolidated balance sheets.
The following table summarizes restructuring charges by segment:
 
Years Ended December 31,
 
2019
 
2018
 
2017
(In Thousands)
Aaron’s Business
 
Aaron’s Business
 
Aaron’s Business
 
Vive
 
Total
Right-of-Use Asset Impairment and Operating Lease Charges
$
28,411

 
$
2,057

 
$
13,432

 
$
—

 
$
13,432

Fixed Asset Impairment
5,238

 
—

 
1,386

 
—

 
1,386

Severance
3,403

 
601

 
2,705

 
471

 
3,176

Other Expenses (Reversals)
1,886

 
(1,176
)
 
—

 
—

 
—

Loss (Gain) on Sale of Store Properties
1,052

 
(377
)
 
—

 
—

 
—

Total Restructuring Expenses
$
39,990

 
$
1,105

 
$
17,523

 
$
471

 
$
17,994