Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note S — 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, furniture and accessories, and our Core U.S. and franchising segments also offer smartphones. 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 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, 2016, 2015 and 2014 is as follows:

	Year Ended December 31,
(In thousands)	2016		2015		2014
Revenues
Core U.S.	$	2,069,725	$	2,371,823	$	2,414,659
Acceptance Now	817,814		818,325		644,853
Mexico	50,927		63,803		72,202
Franchising	24,786		24,469		26,082
Total revenues	$	2,963,252	$	3,278,420	$	3,157,796

	Year Ended December 31,
(In thousands)	2016		2015		2014
Gross profit
Core U.S.	$	1,467,679	$	1,644,840	$	1,753,269
Acceptance Now	422,381		420,980		372,012
Mexico	35,549		42,354		51,070
Franchising	9,440		9,935		8,012
Total gross profit	$	1,935,049	$	2,118,109	$	2,184,363

	Year Ended December 31,
(In thousands)	2016			2015			2014
Operating profit (loss)
Core U.S.	$	(1,020	)	$	(959,447	)	$	264,967
Acceptance Now	105,925			123,971			112,918
Mexico	(2,449		)	(14,149		)	(21,961		)
Franchising	5,650			5,793			3,295
Total segments	108,106			(843,832		)	359,219
Corporate	(174,702		)	(164,056		)	(165,757		)
Total operating (loss) profit	$	(66,596	)	$	(1,007,888	)	$	193,462

	Year Ended December 31,
(In thousands)	2016		2015		2014
Depreciation, amortization and write-down of intangibles
Core U.S.	$	39,734	$	49,137	$	57,324
Acceptance Now	3,309		3,334		2,917
Mexico	3,179		5,160		6,683
Franchising	177		185		184
Total segments	46,399		57,816		67,108
Corporate	34,057		22,904		16,060
Total depreciation, amortization and write-down of intangibles	$	80,456	$	80,720	$	83,168

We recorded goodwill impairment charges of $151.3 million and $1,170.0 million in the Core U.S. segment during the fourth quarters of 2016 and 2015, respectively, not included in the table above.

	Year Ended December 31,
(In thousands)	2016		2015		2014
Capital expenditures
Core U.S.	$	20,802	$	21,739	$	31,228
Acceptance Now	2,330		2,473		3,833
Mexico	283		204		4,164
Total segments	23,415		24,416		39,225
Corporate	37,728		56,454		44,560
Total capital expenditures	$	61,143	$	80,870	$	83,785

	December 31,
(In thousands)	2016		2015		2014
On rent rental merchandise, net
Core U.S.	$	426,845	$	540,004	$	593,945
Acceptance Now	354,486		350,046		345,703
Mexico	13,787		17,575		20,766
Total on rent rental merchandise, net	$	795,118	$	907,625	$	960,414

	December 31,
(In thousands)	2016		2015		2014
Held for rent rental merchandise, net
Core U.S.	$	192,718	$	215,327	$	264,211
Acceptance Now	7,489		5,000		4,897
Mexico	6,629		8,520		8,334
Total held for rent rental merchandise, net	$	206,836	$	228,847	$	277,442

	December 31,
(In thousands)	2016		2015		2014
Assets by segment			Revised
Core U.S.	$	872,551	$	1,240,593	$	2,519,770
Acceptance Now	432,383		426,827		420,660
Mexico	31,415		38,898		59,841
Franchising	2,197		2,723		2,604
Total segments	1,338,546		1,709,041		3,002,875
Corporate	264,195		265,427		268,322
Total assets	$	1,602,741	$	1,974,468	$	3,271,197

	December 31,
(In thousands)	2016		2015		2014
Assets by country			Revised
United States	$	1,567,933	$	1,930,676	$	3,204,283
Mexico	31,415		38,898		59,841
Canada	3,393		4,894		7,073
Total assets	$	1,602,741	$	1,974,468	$	3,271,197

	Year Ended December 31,
(In thousands)	2016		2015		2014
Furniture and accessories	$	927,537	$	955,576	$	938,065
Consumer electronics	553,976		626,668		642,226
Appliances	391,539		415,278		422,979
Computers	148,889		207,906		307,325
Smartphones	93,449		163,667		68,015
Other products and services	384,663		412,220		367,218
Total rentals and fees	$	2,500,053	$	2,781,315	$	2,745,828

Our revenues originate in the following countries:

	Year Ended December 31,
(In thousands)	2016		2015		2014
United States	$	2,911,613	$	3,209,736	$	3,075,387
Mexico	50,927		63,803		72,202
Canada	712		4,881		10,207
Total revenues	$	2,963,252	$	3,278,420	$	3,157,796