Segment Information (Tables)

3 Months Ended

Mar. 31, 2018

Segment information for the three months ended March 31, 2018 and 2017 is as follows:



	Three Months Ended March 31,
(in thousands)	2018		2017
Revenues
Core U.S.	$	482,041	$	490,899
Acceptance Now	196,986		234,546
Mexico	12,031		11,100
Franchising	6,985		5,441
Total revenues	$	698,043	$	741,986



	Three Months Ended March 31,
(in thousands)	2018		2017
Gross profit
Core U.S.	$	336,241	$	337,954
Acceptance Now	88,805		114,429
Mexico	8,322		7,821
Franchising	3,610		2,459
Total gross profit	$	436,978	$	462,663

Beginning in 2018, we implemented an intercompany book value adjustment charge for all rental merchandise transfers from Acceptance Now locations to Core U.S. stores. For the three months ended March 31, 2018, book value adjustments on intercompany rental merchandise transfers were $3.5 million, resulting in a corresponding increase in gross profit for the Core U.S. and decrease in gross profit for Acceptance Now.



	Three Months Ended March 31,
(in thousands)	2018			2017
Operating (loss) profit
Core U.S.	$	28,387		$	24,402
Acceptance Now	15,430			20,619
Mexico	497			161
Franchising	1,256			1,441
Total segments	45,570			46,623
Corporate	(55,840		)	(45,471		)
Total operating (loss) profit	$	(10,270	)	$	1,152

Beginning in 2018, we implemented an intercompany book value adjustment charge for all rental merchandise transfers from Acceptance Now locations to Core U.S. stores. For the three months ended March 31, 2018, book value adjustments for inventory charge-offs related to intercompany rental merchandise transfers were $0.7 million, resulting in a corresponding increase in operating profit for the Core U.S. and decrease in operating profit for Acceptance Now.



	Three Months Ended March 31,
(in thousands)	2018		2017
Depreciation, amortization and impairment of intangibles
Core U.S.	$	6,826	$	8,108
Acceptance Now	435		786
Mexico	344		527
Franchising	44		44
Total segments	7,649		9,465
Corporate	10,251		9,076
Total depreciation, amortization and impairment of intangibles	$	17,900	$	18,541

We recorded an impairment of intangibles of $3.9 million in the Acceptance Now segment during the first quarter of 2017 that is not included in the table above. The impairment charge was recorded to Other Charges in the Condensed Consolidated Statement of Operations.



	Three Months Ended March 31,
(in thousands)	2018		2017
Capital expenditures
Core U.S.	$	4,890	$	6,108
Acceptance Now	45		483
Mexico	3		23
Total segments	4,938		6,614
Corporate	3,711		15,434
Total capital expenditures	$	8,649	$	22,048



(in thousands)	March 31, 2018		December 31, 2017
On rent rental merchandise, net
Core U.S.	$	380,449	$	408,993
Acceptance Now	253,906		278,443
Mexico	15,536		14,367
Total on rent rental merchandise, net	$	649,891	$	701,803



(in thousands)	March 31, 2018		December 31, 2017
Held for rent rental merchandise, net
Core U.S.	$	155,405	$	156,039
Acceptance Now	1,714		4,940
Mexico	5,506		6,209
Total held for rent rental merchandise, net	$	162,625	$	167,188



(in thousands)	March 31, 2018		December 31, 2017
Assets by segment
Core U.S.	$	736,092	$	776,296
Acceptance Now	321,524		350,970
Mexico	35,619		33,529
Franchising	4,503		3,802
Total segments	1,097,738		1,164,597
Corporate	288,700		256,184
Total assets	$	1,386,438	$	1,420,781