Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment information for the three and six months ended June 30, 2018 and 2017 is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Revenues
Core U.S.	$	455,720	$	457,025	$	937,761	$	947,924
Acceptance Now	179,011		203,321		375,997		437,867
Mexico	12,307		12,014		24,338		23,114
Franchising	8,692		5,275		15,677		10,716
Total revenues	$	655,730	$	677,635	$	1,353,773	$	1,419,621



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Gross profit
Core U.S.	$	325,219	$	318,006	$	661,460	$	655,960
Acceptance Now	86,050		103,934		174,855		218,363
Mexico	8,549		8,381		16,871		16,202
Franchising	4,068		2,212		7,678		4,671
Total gross profit	$	423,886	$	432,533	$	860,864	$	895,196

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 and six months ended June 30, 2018, book value adjustments on intercompany rental merchandise transfers were $2.9 million and $6.4 million, respectively, resulting in a corresponding increase in gross profit for the Core U.S. and decrease in gross profit for Acceptance Now.



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2018			2017			2018			2017
Operating profit (loss)
Core U.S.	$	43,527		$	30,980		$	71,914		$	55,382
Acceptance Now	29,157			18,597			44,587			39,216
Mexico	887			(41		)	1,384			120
Franchising	1,909			1,092			3,165			2,533
Total segments	75,480			50,628			121,050			97,251
Corporate	(48,329		)	(51,501		)	(104,169		)	(96,972		)
Total operating profit (loss)	$	27,151		$	(873	)	$	16,881		$	279

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 and six months ended June 30, 2018, book value adjustments for inventory charge-offs related to intercompany rental merchandise transfers were $0.5 million and $1.2 million, respectively, resulting in a corresponding increase in operating profit for the Core U.S. and decrease in operating profit for Acceptance Now.



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Depreciation, amortization and impairment of intangibles
Core U.S.	$	6,440	$	7,882	$	13,266	$	15,990
Acceptance Now	432		629		867		1,415
Mexico	273		526		617		1,053
Franchising	44		44		88		88
Total segments	7,189		9,081		14,838		18,546
Corporate	10,239		9,627		20,490		18,703
Total depreciation, amortization and impairment of intangibles	$	17,428	$	18,708	$	35,328	$	37,249

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 June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Capital expenditures
Core U.S.	$	4,325	$	8,600	$	9,215	$	14,708
Acceptance Now	35		612		80		1,095
Mexico	35		24		38		47
Total segments	4,395		9,236		9,333		15,850
Corporate	2,651		8,875		6,362		24,309
Total capital expenditures	$	7,046	$	18,111	$	15,695	$	40,159



(in thousands)	June 30, 2018		December 31, 2017
On rent rental merchandise, net
Core U.S.	$	377,142	$	408,993
Acceptance Now	248,510		278,443
Mexico	14,985		14,367
Total on rent rental merchandise, net	$	640,637	$	701,803



(in thousands)	June 30, 2018		December 31, 2017
Held for rent rental merchandise, net
Core U.S.	$	135,563	$	156,039
Acceptance Now	1,336		4,940
Mexico	4,761		6,209
Total held for rent rental merchandise, net	$	141,660	$	167,188



(in thousands)	June 30, 2018		December 31, 2017
Assets by segment
Core U.S.	$	703,499	$	776,296
Acceptance Now	314,773		350,970
Mexico	27,540		33,529
Franchising	4,434		3,802
Total segments	1,050,246		1,164,597
Corporate	316,041		256,184
Total assets	$	1,366,287	$	1,420,781