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Segments
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segments SEGMENTS
As of June 30, 2020, the Company has three operating and reportable segments: Progressive Leasing, Aaron's Business and Vive.
Progressive Leasing is a leading virtual lease-to-own company that provides lease-purchase solutions on a variety of products, including furniture and appliance, jewelry, mobile phones and accessories, mattresses, and automobile electronics and accessories.
The Aaron's Business offers furniture, home appliances, consumer electronics and accessories to consumers through a lease-to-own agreement through the Company's Aaron's-branded stores in the United States and Canada and e-commerce platform. This operating segment also supports franchisees of its Aaron's stores. In addition, the Aaron's Business segment includes the operations of Woodhaven, which manufactures and supplies the majority of the bedding and a significant portion of the upholstered furniture leased and sold in Company-operated and franchised stores.
Vive offers a variety of second-look financing programs originated through third-party federally insured banks to customers of participating merchants and, together with Progressive Leasing, allows the Company to provide retail partners with below-prime customers one source for financing and leasing transactions.
Disaggregated Revenue
The following table presents revenue by source and by segment for the three months ended June 30, 2020:
Three Months Ended June 30, 2020
(In Thousands)Progressive LeasingAaron's BusinessViveTotal
Lease Revenues and Fees1
$589,749  $380,238  $—  $969,987  
Retail Sales2
—  14,020  —  14,020  
Non-Retail Sales2
—  33,044  —  33,044  
Franchise Royalties and Fees2
—  3,365  —  3,365  
Interest and Fees on Loans Receivable3
—  —  9,414  9,414  
Other—  289  —  289  
Total $589,749  $430,956  $9,414  $1,030,119  
1 Substantially all lease revenues and fees are within the scope of ASC 842, Leases. The Company had $6.8 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.
2 Substantially all retail sales, non-retail sales and franchise royalties and fees are within the scope of ASC 606, Revenue from Contracts with Customers.
3 All interest and fees on loans receivable are within the scope of ASC 310, Credit Card Interest & Fees.
The following table presents revenue by source and by segment for the three months ended June 30, 2019:
Three Months Ended June 30, 2019
(In Thousands)Progressive LeasingAaron's BusinessViveTotal
Lease Revenues and Fees1
$516,333  $391,232  $—  $907,565  
Retail Sales2
—  8,898  —  8,898  
Non-Retail Sales2
—  34,124  —  34,124  
Franchise Royalties and Fees2
—  8,605  —  8,605  
Interest and Fees on Loans Receivable3
—  —  8,610  8,610  
Other—  339  —  339  
Total $516,333  $443,198  $8,610  $968,141  
1 Substantially all lease revenues and fees are within the scope of ASC 842, Leases. The Company had $6.9 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.
2 Substantially all retail sales, non-retail sales and franchise royalties and fees are within the scope of ASC 606, Revenue from Contracts with Customers.
3 All interest and fees on loans receivable are within the scope of ASC 310, Credit Card Interest & Fees.
The following table presents revenue by source and by segment for the six months ended June 30, 2020:
Six Months Ended June 30, 2020
(In Thousands)Progressive Leasing Aaron's BusinessViveTotal
Lease Revenues and Fees1
$1,248,283  $769,617  $—  $2,017,900  
Retail Sales2
—  23,551  —  23,551  
Non-Retail Sales2
—  59,890  —  59,890  
Franchise Royalties and Fees2
—  10,089  —  10,089  
Interest and Fees on Loans Receivable3
—  —  19,322  19,322  
Other—  641  —  641  
Total $1,248,283  $863,788  $19,322  $2,131,393  
1 Substantially all lease revenues and fees are within the scope of ASC 842, Leases. The Company had $13.5 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.
2 Substantially all retail sales, non-retail sales and franchise royalties and fees are within the scope of ASC 606, Revenue from Contracts with Customers.
3 All interest and fees on loans receivable are within the scope of ASC 310, Credit Card Interest & Fees.
The following table presents revenue by source and by segment for the six months ended June 30, 2019:
Six Months Ended June 30, 2019
(In Thousands)Progressive LeasingAaron's BusinessViveTotal
Lease Revenues and Fees1
$1,039,734  $811,988  $—  $1,851,722  
Retail Sales2
—  21,707  —  21,707  
Non-Retail Sales2
—  71,105  —  71,105  
Franchise Royalties and Fees2
—  17,812  —  17,812  
Interest and Fees on Loans Receivable3
—  —  17,256  17,256  
Other—  642  —  642  
Total $1,039,734  $923,254  $17,256  $1,980,244  
1 Substantially all lease revenues and fees are within the scope of ASC 842, Leases. The Company had $13.4 million of other revenue within the scope of ASC 606, Revenue from Contracts with Customers.
2 Substantially all retail sales, non-retail sales and franchise royalties and fees are within the scope of ASC 606, Revenue from Contracts with Customers.
3 All interest and fees on loans receivable are within the scope of ASC 310, Credit Card Interest & Fees.
Measurement of Segment Profit or Loss and Segment Assets
The Company evaluates performance and allocates resources based on revenue growth and pre-tax profit or loss from operations. Intersegment sales are completed at internally negotiated amounts. Since the intersegment profit affects inventory valuation, depreciation and cost of goods sold are adjusted when intersegment profit is eliminated in consolidation. The Company determines earnings (loss) before income taxes for all reportable segments in accordance with U.S. GAAP. Interest expense is allocated to the Progressive Leasing and Vive segments based on a percentage of the outstanding balances of their intercompany borrowings and of the debt incurred when they were acquired. The following is a summary of earnings (loss) before income taxes by segment:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In Thousands)2020201920202019
Earnings (Loss) Before Income Taxes:
Progressive Leasing$59,814  $58,406  $118,801  $113,794  
Aaron's Business1
32,009  138  (433,348) 17,726  
Vive714  (1,725) (7,369) (4,393) 
Total Earnings (Loss) Before Income Taxes$92,537  $56,819  $(321,916) $127,127  
1 Loss before income taxes for the Aaron's Business during the six months ended June 30, 2020 was impacted by (i) goodwill impairment charges of $446.9 million incurred during the three months ended March 31, 2020, (ii) $14.1 million related to an early termination fee for a sales and marketing agreement during the three months ended March 31, 2020, and (iii) restructuring charges of $29.3 million related to operating lease right-of-use asset impairment and operating lease charges, fixed asset impairment charges, and workforce reductions, of which $7.0 million was incurred during the three months ended June 30, 2020.
Earnings before income taxes for the Aaron's Business during the six months ended June 30, 2019 includes restructuring charges of $32.0 million related to closed store right-of-use asset impairment and operating lease charges, the write-off and impairment of store property, plant and equipment and related workforce reductions, of which $18.7 million was incurred during the three months ended June 30, 2019.
The following is a summary of total assets by segment and shared corporate-related assets.
(In Thousands)June 30, 2020December 31, 2019
Assets:
Progressive Leasing$1,093,647  $1,261,786  
Aaron's Business1,2
1,034,194  1,740,281  
Vive71,633  85,825  
Other3
516,228  209,908  
Total Assets$2,715,702  $3,297,800  
1 Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the condensed consolidated balance sheets of $12.8 million and $14.0 million as of June 30, 2020 and December 31, 2019, respectively.
2 During the six months ended June 30, 2020, the Aaron's Business segment assets were impacted by a goodwill impairment charge of $446.9 million to fully write-off its goodwill balance.
3 Corporate-related assets that benefit multiple segments are reported as other assets.