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Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedules of Company Operated Store Activity
The following table presents invoice volume for Progressive Leasing:
For the Year Ended December 31 (Unaudited and In Thousands)
2019
 
2018
 
2017
Progressive Leasing Invoice Volume1
$
1,747,902

 
$
1,429,550

 
$
1,160,732

1 Invoice volume is defined as the retail price of lease merchandise acquired and then leased to customers during the period, net of returns.
The following table presents store count by ownership type for the Aaron’s Business operations:
Stores at December 31 (Unaudited)
2019

2018

2017
Company-operated Aaron's branded Stores
1,167

 
1,312

 
1,175

Franchised Stores
335

 
377

 
551

Systemwide Stores
1,502

 
1,689

 
1,726
Schedule of Lease Merchandise
The following is a summary of lease merchandise, net of accumulated depreciation and allowances:
 
December 31,
(In Thousands)
2019
 
2018
Merchandise on Lease, net of Accumulated Depreciation and Allowances
$
1,156,798

 
$
1,053,684

Merchandise Not on Lease, net of Accumulated Depreciation and Allowances
276,619

 
264,786

Lease Merchandise, net of Accumulated Depreciation and Allowances
$
1,433,417

 
$
1,318,470
Allowance for Lease Merchandise
The following table shows the components of the allowance for lease merchandise write-offs, which is included within lease merchandise, net within the consolidated balance sheets:
 
Year ended December 31,
(In Thousands)
2019
 
2018
 
2017
Beginning Balance
$
46,694

 
$
35,629

 
$
33,399

Merchandise Written off, net of Recoveries
(236,928
)
 
(181,252
)
 
(143,230
)
Provision for Write-offs
251,419

 
192,317

 
145,460

Ending Balance
$
61,185

 
$
46,694

 
$
35,629
Calculation of Dilutive Stock Awards The following table shows the calculation of dilutive share-based awards:
 
Year Ended December 31,
(Shares In Thousands)
2019
 
2018
 
2017
Weighted Average Shares Outstanding
67,322

 
69,128

 
70,837

Dilutive Effect of Share-Based Awards
1,309

 
1,469

 
1,284

Weighted Average Shares Outstanding Assuming Dilution
68,631

 
70,597

 
72,121
Accounts Receivable Net of Allowances
Accounts receivable, net of allowances, consist of the following:
 
December 31,
(In Thousands)
2019
 
2018
Customers
$
76,819

 
$
60,879

Corporate
14,109

 
18,171

Franchisee
13,231

 
19,109

 
$
104,159

 
$
98,159


The following is a summary of the Company’s loans receivable, net:
 
December 31,
(In Thousands)
2019
 
2018
Credit Card Loans1
$
96,387

 
$
90,406

Acquired Loans2
—

 
5,688

Loans Receivable, Gross
96,387

 
96,094

 


 
 
Allowance for Loan Losses
(14,911
)
 
(12,970
)
Unamortized Fees
(6,223
)
 
(6,971
)
Loans Receivable, Net of Allowances and Unamortized Fees
$
75,253

 
$
76,153


1 "Credit Card Loans" are loans originated after the 2015 acquisition of Vive.
2 "Acquired Loans" are credit card loans the Company purchased in the 2015 acquisition of Vive.
Allowance for Doubtful Accounts
The following table shows the components of the accounts receivable allowance:
 
Year Ended December 31,
(In Thousands)
2019
 
2018
 
2017
Beginning Balance
$
62,704

 
$
46,946

 
$
35,690

Accounts Written Off, net of Recoveries
(309,374
)
 
(252,330
)
 
(192,133
)
Accounts Receivable Provision
322,963

 
268,088

 
203,389

Ending Balance
$
76,293

 
$
62,704

 
$
46,946

The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments for the fiscal years presented:
 
Year Ended December 31,
(In Thousands)
2019
 
2018
 
2017
Bad Debt Expense1
$
1,337

 
$
227,960

 
$
170,574

Provision for Returns and Uncollected Renewal Payments2
321,626

 
40,128

 
32,815

Accounts Receivable Provision
$
322,963

 
$
268,088

 
$
203,389

1 Bad debt expense is recorded within operating expenses in the consolidated financial statements.
2 In accordance with the adoption of ASC 842, Progressive Leasing provision for returns and uncollectible renewal payments are recorded as a reduction to lease revenues and fees within the consolidated financial statements beginning January 1, 2019. Prior to January 1, 2019, Progressive Leasing provision for returns and uncollectible renewal payments were recorded as bad debt expense within operating expenses in the consolidated financial statements.
Loan Portfolio Credit Quality Indicators Below is a summary of the credit quality of the Company’s loan portfolio as of December 31, 2019 and 2018 by Fair Isaac and Company (FICO) score as determined at the time of loan origination:
 
December 31,
FICO Score Category
2019
 
2018
600 or Less
6.7
%
 
3.7
%
Between 600 and 700
80.1
%
 
77.9
%
700 or Greater
13.2
%
 
18.4
%
Schedule of Prepaid Expenses and Other Assets
Prepaid expenses and other assets consist of the following:
 
December 31,
(In Thousands)
2019
 
2018
Prepaid Expenses
$
45,034

 
$
30,763

Prepaid Insurance
26,393

 
27,948

Assets Held for Sale
10,131

 
6,589

Deferred Tax Asset
826

 
8,761

Other Assets
31,887

 
24,161

 
$
114,271

 
$
98,222
Schedule of Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consist of the following:
 
December 31,
(In Thousands)
2019
 
2018
Accounts Payable
89,959

 
88,369

Accrued Insurance Costs
44,032

 
40,423

Accrued Salaries and Benefits
43,972

 
40,790

Accrued Real Estate and Sales Taxes
32,763

 
30,332

Deferred Rent1
—

 
27,270

Other Accrued Expenses and Liabilities1
62,090

 
65,969

 
$
272,816

 
$
293,153


1 Amounts as of December 31, 2019 were impacted by the January 1, 2019 adoption of ASC 842. Upon transition to ASC 842, the remaining balances of the Company's deferred rent, lease incentives, and closed store reserve were reclassified as a reduction to the operating lease right-of-use asset in the accompanying consolidated balance sheet.