Segment Information (Notes)

9 Months Ended

Sep. 30, 2019

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. Our Core U.S. and Franchising segments also offer smartphones.

Segment information for the three and nine months ended September 30, 2019 and 2018 is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Revenues
Core U.S.	$	436,497	$	451,320	$	1,361,650	$	1,389,081
Acceptance Now	184,486		173,438		557,397		549,435
Mexico	13,370		12,784		40,266		37,122
Franchising	15,018		7,400		42,677		23,077
Total revenues	$	649,371	$	644,942	$	2,001,990	$	1,998,715



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Gross profit
Core U.S.	$	306,881	$	313,771	$	945,392	$	975,231
Acceptance Now	80,113		81,586		246,821		256,441
Mexico	9,286		8,885		27,966		25,756
Franchising	3,716		3,498		12,754		11,176
Total gross profit	$	399,996	$	407,740	$	1,232,933	$	1,268,604



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2019			2018			2019			2018
Operating profit
Core U.S.	$	52,175		$	43,221		$	170,411		$	115,135
Acceptance Now	21,830			26,278			66,077			70,865
Mexico	1,213			922			3,906			2,306
Franchising	1,135			522			4,716			3,687
Total segments	76,353			70,943			245,110			191,993
Corporate	(37,506		)	(45,311		)	(59,085		)	(149,480		)
Total operating profit	$	38,847		$	25,632		$	186,025		$	42,513



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Depreciation and amortization
Core U.S.	$	5,037	$	6,216	$	15,619	$	19,482
Acceptance Now	379		421		1,040		1,288
Mexico	82		222		317		839
Franchising	3		45		42		133
Total segments	5,501		6,904		17,018		21,742
Corporate	9,393		10,042		28,770		30,532
Total depreciation and amortization	$	14,894	$	16,946	$	45,788	$	52,274



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Capital expenditures
Core U.S.	$	4,129	$	3,586	$	5,594	$	12,801
Acceptance Now	24		76		125		156
Mexico	35		113		65		151
Total segments	4,188		3,775		5,784		13,108
Corporate	2,734		3,021		6,226		9,383
Total capital expenditures	$	6,922	$	6,796	$	12,010	$	22,491



(in thousands)	September 30, 2019		December 31, 2018
On rent rental merchandise, net
Core U.S.	$	377,101	$	424,829
Acceptance Now	241,591		242,978
Mexico	15,048		16,001
Total on rent rental merchandise, net	$	633,740	$	683,808



(in thousands)	September 30, 2019		December 31, 2018
Held for rent rental merchandise, net
Core U.S.	$	104,341	$	117,294
Acceptance Now	1,151		1,207
Mexico	4,439		5,161
Total held for rent rental merchandise, net	$	109,931	$	123,662



(in thousands)	September 30, 2019		December 31, 2018
Assets by segment
Core U.S.	$	887,795	$	714,914
Acceptance Now⁽¹⁾	330,727		312,151
Mexico	30,616		29,321
Franchising	8,412		4,287
Total segments	1,257,550		1,060,673
Corporate	240,382		336,244
Total assets	$	1,497,932	$	1,396,917

⁽¹⁾ Includes $14.9 million of goodwill recorded in the third quarter of 2019 related to the acquisition of Merchants Preferred.