Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note R — 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 (including tablets and smartphones), furniture and accessories. Reportable segments and their respective operations are defined as follows:

Our Core U.S. segment primarily operates rent-to-own stores in the United States, Canada and Puerto Rico whose customers enter into weekly, semi-monthly or monthly rental purchase agreements, which renew automatically upon receipt of each payment. We retain the title to the merchandise during the term of the rental purchase agreement and ownership passes to the customer if the customer has continuously renewed the rental purchase agreement through the end of the term or exercises a specified early purchase option. This segment also includes the 45 stores operating in two states that utilize a retail model which generates installment credit sales through a retail sale transaction. Segment assets include cash, receivables, rental merchandise, property assets, goodwill and other intangible assets.

Our Acceptance Now segment operates kiosks within various traditional retailers’ locations where we generally offer the rent-to-own transaction to consumers who do not qualify for financing from the traditional retailer. The transaction offered is generally similar to that of the Core U.S. segment; however, the majority of the customers in this segment enter into monthly rather than weekly agreements. Segment assets include cash, rental merchandise, property assets, goodwill and other intangible assets.

Our Mexico segment currently consists of our company-owned rent-to-own stores in Mexico. The nature of this segment's operations and assets are the same as our Core U.S. segment.

The stores in our Franchising segment use Rent-A-Center’s, ColorTyme’s or RimTyme’s trade names, service marks, trademarks and logos, and operate under distinctive operating procedures and standards. Franchising’s primary source of revenue is the sale of rental merchandise to its franchisees who, in turn, offer the merchandise to the general public for rent or purchase under a rent-to-own program. As franchisor, Franchising receives royalties of 2.0% to 6.0% of the franchisees' monthly gross revenue and initial fees for new locations. Segment assets include cash, franchise fee receivables, property assets and intangible assets.

Segment information as of and for the years ended December 31, 2015, 2014 and 2013 is as follows (in thousands):

	Year Ended December 31,
	2015		2014		2013
Revenues
Core U.S.	$	2,371,823	$	2,414,659	$	2,527,660
Acceptance Now	818,325		644,853		489,425
Mexico	63,803		72,202		47,171
Franchising	24,469		26,082		29,762
Total revenues	$	3,278,420	$	3,157,796	$	3,094,018

	Year Ended December 31,
	2015		2014		2013
Gross profit
Core U.S.	$	1,644,840	$	1,753,269	$	1,822,243
Acceptance Now	420,980		372,012		290,647
Mexico	42,354		51,070		33,945
Franchising	9,935		8,012		6,658
Total gross profit	$	2,118,109	$	2,184,363	$	2,153,493

	Year Ended December 31,
	2015			2014			2013
Operating profit (loss)
Core U.S.	$	(959,447	)	$	264,967		$	311,301
Acceptance Now	123,971			112,918			89,075
Mexico	(14,149		)	(21,961		)	(22,828		)
Franchising	5,793			3,295			1,853
Total segment operating profit (loss)	(843,832		)	359,219			379,401
Corporate	(164,056		)	(165,757		)	(132,392		)
Total operating profit (loss)	$	(1,007,888	)	$	193,462		$	247,009

	Year Ended December 31,
	2015		2014		2013
Depreciation, amortization and write-down of intangibles
Core U.S.	$	49,137	$	57,324	$	62,974
Acceptance Now	3,334		2,917		2,287
Mexico	5,160		6,683		5,450
Franchising	185		184		79
Total segments	57,816		67,108		70,790
Corporate	22,904		16,060		16,122
Total depreciation, amortization and write-down of intangibles	$	80,720	$	83,168	$	86,912

During the years ended December 31, 2015, 2014 and 2013, we recognized goodwill impairment charges of $1,170.0 million, $0.0 million and $1.1 million, respectively, in the Core U.S. segment, not included in the table above.

	Year Ended December 31,
	2015		2014		2013
Capital expenditures
Core U.S.	$	21,739	$	31,228	$	44,715
Acceptance Now	2,473		3,833		3,047
Mexico	204		4,164		11,537
Franchising	—		—		—
Total segments	24,416		39,225		59,299
Corporate	56,454		44,560		49,068
Total capital expenditures	$	80,870	$	83,785	$	108,367

	December 31,
	2015		2014		2013
On rent rental merchandise, net
Core U.S.	$	540,004	$	593,945	$	611,375
Acceptance Now	350,046		345,703		284,421
Mexico	17,575		20,766		17,680
Total on rent rental merchandise, net	$	907,625	$	960,414	$	913,476

	December 31,
	2015		2014		2013
Idle rental merchandise, net
Core U.S.	$	215,327	$	264,211	$	195,926
Acceptance Now	5,000		4,897		3,837
Mexico	8,520		8,334		10,959
Total idle rental merchandise, net	$	228,847	$	277,442	$	210,722

	December 31,
	2015		2014		2013
Assets by segment
Core U.S.	$	1,240,593	$	2,519,770	$	2,479,297
Acceptance Now	426,827		420,660		358,305
Mexico	38,898		59,841		69,826
Franchising	2,723		2,604		1,688
Total segments	1,709,041		3,002,875		2,909,116
Corporate	277,967		268,322		109,059
Total assets	$	1,987,008	$	3,271,197	$	3,018,175

	December 31,
	2015		2014		2013
Assets by country
United States	$	1,943,216	$	3,204,283	$	2,940,980
Mexico	38,898		59,841		69,826
Canada	4,894		7,073		7,369
Total assets	$	1,987,008	$	3,271,197	$	3,018,175

 Approximately 85% of our total revenues are comprised of rental and fee revenues from the following product groups:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Furniture and accessories	$	955,576	$	938,065	$	917,290
Consumer electronics	626,668		642,226		667,052
Appliances	415,278		422,979		432,937
Computers	207,906		307,325		347,783
Smartphones	163,667		68,015		—
Other products and services	412,220		367,218		330,833
Total rentals and fees	$	2,781,315	$	2,745,828	$	2,695,895

Our revenues originate in the following countries:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
United States	$	3,209,736	$	3,075,387	$	3,035,558
Mexico	63,803		72,202		47,171
Canada	4,881		10,207		11,289
Total revenues	$	3,278,420	$	3,157,796	$	3,094,018