Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-38047 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-0491516 | ||
Entity Address, Address Line One | 5501 Headquarters Drive | ||
Entity Address, City or Town | Plano | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75024 | ||
City Area Code | 972 | ||
Local Phone Number | 801-1100 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | RCII | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,300,353,876 | ||
Entity Common Stock, Shares Outstanding | 55,230,574 | ||
Documents Incorporated by Reference [Text Block] | Portions of the definitive proxy statement relating to the 2020 Annual Meeting of Stockholders of Rent-A-Center, Inc. are incorporated by reference into Part III of this report. | ||
Entity Registrant Name | RENT A CENTER INC DE | ||
Entity Central Index Key | 0000933036 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float Shares | 48,830,414 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Store [Abstract] | |||
Rentals and fees | $ 2,224,402 | $ 2,244,860 | $ 2,267,741 |
Merchandise sales | 304,630 | 304,455 | 331,402 |
Installment sales | 70,434 | 69,572 | 71,651 |
Other | 4,795 | 9,000 | 9,620 |
Total store revenues | 2,604,261 | 2,627,887 | 2,680,414 |
Franchise [Abstract] | |||
Franchise merchandise sales | 49,135 | 19,087 | 13,157 |
Royalty income and fees | 16,456 | 13,491 | 8,969 |
Total revenues | 2,669,852 | 2,660,465 | 2,702,540 |
Store [Abstract] | |||
Cost of rentals and fees | 634,878 | 621,860 | 625,358 |
Cost of merchandise sold | 319,006 | 308,912 | 322,628 |
Cost of installment sales | 23,383 | 23,326 | 23,622 |
Total cost of store revenues | 977,267 | 954,098 | 971,608 |
Franchise [Abstract] | |||
Franchise cost of merchandise sold | 48,514 | 18,199 | 12,390 |
Total cost of revenues | 1,025,781 | 972,297 | 983,998 |
Gross profit | 1,644,071 | 1,688,168 | 1,718,542 |
Operating expenses [Abstract] | |||
Labor | 630,096 | 683,422 | 732,466 |
Other store expenses | 617,106 | 656,894 | 744,187 |
General and administrative expenses | 142,634 | 163,445 | 171,090 |
Depreciation, amortization and write-down of intangibles | 61,104 | 68,946 | 74,639 |
Other (gains) and charges | (60,728) | 59,324 | 59,219 |
Total operating expenses | 1,390,212 | 1,632,031 | 1,781,601 |
Operating profit (loss) | 253,859 | 56,137 | (63,059) |
Debt refinancing charges | 2,168 | 475 | 1,936 |
Interest expense | 31,031 | 42,968 | 45,996 |
Interest income | (3,123) | (1,147) | (791) |
Earnings (loss) before income taxes | 223,783 | 13,841 | (110,200) |
Income tax expense (benefit) | 50,237 | 5,349 | (116,853) |
Net earnings | $ 173,546 | $ 8,492 | $ 6,653 |
Basic earnings per common share | $ 3.19 | $ 0.16 | $ 0.12 |
Diluted earnings per common share | 3.10 | 0.16 | 0.12 |
Cash dividends declared per common share | $ 0.54 | $ 0 | $ 0.16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Net earnings | $ 173,546 | $ 8,492 | $ 6,653 |
Foreign currency translation adjustments, net of tax $158, ($73), and $2,822 for 2019, 2018, and 2017, respectively | 595 | (274) | 5,241 |
Total other comprehensive income (loss) | 595 | (274) | 5,241 |
Comprehensive income | 174,141 | 8,218 | 11,894 |
Foreign currency translation tax adjustment | $ 158 | $ (73) | $ 2,822 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS [Abstract] | ||
Cash and cash equivalents | $ 70,494 | $ 155,391 |
Receivables, net of allowance for doubtful accounts of $5,601 and $4,883 in 2019 and 2018, respectively | 84,123 | 69,645 |
Prepaid expenses and other assets | 46,043 | 51,352 |
Rental merchandise, net [Abstract] | ||
On rent | 697,270 | 683,808 |
Held for rent | 138,418 | 123,662 |
Merchandise held for installment sale | 4,878 | 3,834 |
Property assets, net of accumulated depreciation of $522,826 and $551,750 in 2019 and 2018, respectively | 166,138 | 226,323 |
Operating lease right-of-use assets | 281,566 | 0 |
Deferred tax asset | 14,889 | 25,558 |
Goodwill | 70,217 | 56,845 |
Other intangible assets, net | 8,762 | 499 |
Total assets | 1,582,798 | 1,396,917 |
LIABILITIES [Abstract] | ||
Accounts payable - trade | 168,120 | 113,838 |
Accrued liabilities | 275,777 | 337,459 |
Operating lease liabilities | 285,041 | 0 |
Deferred tax liability | 163,984 | 119,061 |
Senior debt, net | 230,913 | 0 |
Senior notes, net | 0 | 540,042 |
Total liabilities | 1,123,835 | 1,110,400 |
STOCKHOLDERS' EQUITY [Abstract] | ||
Common stock, $.01 par value; 250,000,000 shares authorized; 111,166,229 and 109,909,504 shares issued in 2019 and 2018, respectively | 1,110 | 1,099 |
Additional paid-in capital | 869,617 | 838,436 |
Retained earnings | 947,875 | 805,924 |
Treasury stock at cost, 56,428,482 and 56,369,752 shares in 2019 and 2018, respectively | 1,348,969 | 1,347,677 |
Accumulated other comprehensive loss | (10,670) | (11,265) |
Total stockholders' equity | 458,963 | 286,517 |
Total liabilities and stockholders' equity | $ 1,582,798 | $ 1,396,917 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parethetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,601 | $ 4,883 |
Accumulated depreciation of property assets | $ 522,826 | $ 551,750 |
Common stock - par value | $ 0.01 | $ 0.01 |
Common stock - shares authorized | 250,000,000 | 250,000,000 |
Common stock - shares issued | 111,166,229 | 109,909,504 |
Treasury stock - shares at cost | 56,428,482 | 56,369,752 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance, shares at Dec. 31, 2016 | 109,519,000 | |||||
Beginning balance at Dec. 31, 2016 | $ 264,933 | $ 1,095 | $ 827,107 | $ 800,640 | $ (1,347,677) | $ (16,232) |
Net earnings | 6,653 | 6,653 | ||||
Foreign currency translation adjustments, net of tax $158, ($73), and $2,822 for 2019, 2018, and 2017, respectively | 5,241 | 5,241 | ||||
Total other comprehensive income (loss) | 5,241 | |||||
Exercise of stock options, shares | 27,000 | |||||
Exercise of stock options | 270 | 270 | ||||
Vesting of restricted share units, shares | 136,000 | |||||
Vesting of restricted share units | 0 | $ 2 | (2) | |||
Stock-based compensation expense | 3,896 | (3,896) | ||||
Dividends declared | (8,550) | (8,550) | ||||
Ending balance, shares at Dec. 31, 2017 | 109,682,000 | |||||
Ending balance at Dec. 31, 2017 | 272,443 | $ 1,097 | 831,271 | 798,743 | (1,347,677) | (10,991) |
Net earnings | 8,492 | 8,492 | ||||
Foreign currency translation adjustments, net of tax $158, ($73), and $2,822 for 2019, 2018, and 2017, respectively | (274) | (274) | ||||
Total other comprehensive income (loss) | (274) | |||||
Exercise of stock options, shares | 138,000 | |||||
Exercise of stock options | 1,400 | $ 1 | 1,399 | |||
Vesting of restricted share units, shares | 90,000 | |||||
Vesting of restricted share units | 0 | $ 1 | (1) | |||
Tax effect of stock awards vested and options exercised | (194) | (194) | ||||
Stock-based compensation expense | 5,961 | (5,961) | ||||
Ending balance, shares at Dec. 31, 2018 | 109,910,000 | |||||
Ending balance at Dec. 31, 2018 | 286,517 | $ 1,099 | 838,436 | 805,924 | (1,347,677) | (11,265) |
ASC adoption | (1,311) | (1,311) | ||||
Net earnings | 173,546 | 173,546 | ||||
Foreign currency translation adjustments, net of tax $158, ($73), and $2,822 for 2019, 2018, and 2017, respectively | 595 | 595 | ||||
Total other comprehensive income (loss) | 595 | |||||
Purchase of treasury stock | $ (1,292) | (1,292) | ||||
Exercise of stock options, shares | 551,008 | 550,000 | ||||
Exercise of stock options | $ 6,799 | $ 5 | 6,794 | |||
Vesting of restricted share units, shares | 267,000 | |||||
Vesting of restricted share units | 0 | $ 2 | (2) | |||
Tax effect of stock awards vested and options exercised | (1,734) | (1,734) | ||||
Stock-based compensation expense | 6,958 | (6,958) | ||||
Dividends declared | (29,619) | 29,619 | ||||
Merchants Preferred acquisition, shares | 439,000 | |||||
Merchants Preferred acquisition | 19,169 | $ 4 | 19,165 | |||
Ending balance, shares at Dec. 31, 2019 | 111,166,000 | |||||
Ending balance at Dec. 31, 2019 | 458,963 | $ 1,110 | $ 869,617 | 947,875 | $ (1,348,969) | $ (10,670) |
ASC adoption | $ (1,976) | $ (1,976) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities [Abstract] | |||
Net earnings | $ 173,546 | $ 8,492 | $ 6,653 |
Adjustments to reconcile net earnings to net cash provided by operating activities [Abstract] | |||
Depreciation of rental merchandise | 619,353 | 616,640 | 618,390 |
Bad debt expense | 15,077 | 14,610 | 15,702 |
Stock-based compensation expense | 6,958 | 5,961 | 3,896 |
Depreciation for property assets | 60,592 | 68,275 | 73,685 |
(Gain) loss on sale or disposal of property assets | (23,537) | 7,388 | 15,795 |
Amortization and impairment of intangibles | 723 | 671 | 4,908 |
Amortization of financing fees | 2,987 | 5,486 | 4,667 |
Write-off of debt financing fees | 2,168 | 475 | 1,936 |
Deferred income taxes | 55,257 | 6,816 | (86,063) |
Changes in operating assets and liabilities, net of effects of acquisitions | |||
Rental merchandise | (651,487) | (569,717) | (487,130) |
Receivables | (28,855) | (14,431) | (15,741) |
Prepaid expenses and other assets | 3,185 | 13,105 | (9,622) |
Operating lease right-of-use assets and lease liabilities | 4,366 | 0 | 0 |
Accounts payable - trade | 54,282 | 23,486 | (17,886) |
Accrued liabilities | (79,199) | 40,248 | (18,657) |
Net cash provided by operating activities | 215,416 | 227,505 | 110,533 |
Cash flows from investing activities | |||
Purchase of property assets | (21,157) | (27,962) | (65,460) |
Proceeds from sale of assets | 69,717 | 25,317 | 4,638 |
Hurricane insurance recovery proceeds | 1,113 | 0 | 0 |
Acquisitions of businesses | (28,915) | (2,048) | (2,525) |
Net cash provided by (used in) investing activities | 20,758 | (4,693) | (63,347) |
Cash flows from financing activities | |||
Share repurchases | (1,292) | 0 | 0 |
Exercise of stock options | 6,799 | 1,401 | 270 |
Shares withheld for payment of employee tax withholdings | (1,733) | (317) | (225) |
Debt issuance costs | (8,454) | (2,098) | (5,258) |
Proceeds from debt | 305,400 | 27,060 | 347,635 |
Repayments of debt | (608,640) | (166,358) | (400,151) |
Dividends paid | (13,707) | 0 | (12,811) |
Net cash used in financing activities | (321,627) | (140,312) | (70,540) |
Effect of exchange rate changes on cash | 556 | (77) | 926 |
Net (decrease) increase in cash and cash equivalents | (84,897) | 82,423 | (22,428) |
Cash and cash equivalents at beginning of year | 155,391 | 72,968 | 95,396 |
Cash and cash equivalents at end of year | 70,494 | 155,391 | 72,968 |
Supplemental cash flow information [Abstract] | |||
Interest | 32,114 | 37,530 | 41,339 |
Income taxes (excludes $2,074, $47,837, and $7,321 of income taxes refunded in 2019, 2018 and 2017, respectively) | $ 24,332 | $ 2,227 | $ 1,983 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes refunded | $ 2,074 | $ 47,837 | $ 7,321 |
Nature of Operations and Summar
Nature of Operations and Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Accounting Policies [Abstract] | |
Nature of Operations and Summary of Accounting Policies [Text Block] | Nature of Operations and Summary of Accounting Policies A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: Principles of Consolidation and Nature of Operations These financial statements include the accounts of Rent-A-Center, Inc. and its direct and indirect subsidiaries. All intercompany accounts and transactions have been eliminated. Unless the context indicates otherwise, references to “Rent-A-Center” refer only to Rent-A-Center, Inc., the parent, and references to “we,” “us” and “our” refer to the consolidated business operations of Rent-A-Center and any or all of its direct and indirect subsidiaries. We report four operating segments: Rent-A-Center Business, Preferred Lease, Mexico and Franchising. Our Rent-A-Center Business segment consists of company-owned lease-to-own stores in the United States and Puerto Rico that lease household durable goods to customers on a lease-to-own basis. We also offer merchandise on an installment sales basis in certain of our stores under the names “Get It Now” and “Home Choice.” At December 31, 2019 , we operated 1,973 company-owned stores nationwide and in Puerto Rico, including 44 retail installment sales stores. Our Preferred Lease segment, which operates in the United States and Puerto Rico, and includes the operations of the recently acquired Merchants Preferred, generally offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks located within such retailer's locations, including staffed options, un-manned or virtual options, or a combination of the two (the hybrid model). Those kiosks can be staffed by an Preferred Lease employee (staffed locations) or employ a virtual solution where customers, either directly or with the assistance of a representative of the third-party retailer, initiate the lease-to-own transaction online in the retailers' locations using our virtual solutions (virtual locations). At December 31, 2019 , we operated 998 Preferred Lease staffed locations. Our Mexico segment consists of our company-owned lease-to-own stores in Mexico that lease household durable goods to customers on a lease-to-own basis. At December 31, 2019 , we operated 123 stores in Mexico. Rent-A-Center Franchising International, Inc., an indirect wholly-owned subsidiary of Rent-A-Center, is a franchisor of lease-to-own stores. At December 31, 2019 , Franchising had 372 franchised stores operating in 33 states. Our Franchising segment'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 lease-to-own transaction. The balance of our Franchising segment's revenue is generated primarily from royalties based on franchisees' monthly gross revenues. Rental Merchandise Rental merchandise is carried at cost, net of accumulated depreciation. Depreciation for merchandise is generally provided using the income forecasting method, which is intended to match as closely as practicable the recognition of depreciation expense with the consumption of the rental merchandise, and assumes no salvage value. The consumption of rental merchandise occurs during periods of rental and directly coincides with the receipt of rental revenue over the rental purchase agreement period. Under the income forecasting method, merchandise held for rent is not depreciated and merchandise on rent is depreciated in the proportion of rents received to total rents provided in the rental contract, which is an activity-based method similar to the units of production method. We depreciate merchandise (including computers and tablets) that is held for rent for at least 180 consecutive days using the straight-line method over a period generally not to exceed 18 months . Beginning in 2016, smartphones are depreciated over an 18 -month straight-line basis beginning with the earlier of on rent or 90 consecutive days on held for rent. Rental merchandise which is damaged and inoperable is expensed when such impairment occurs. If a customer does not return the merchandise or make payment, the remaining book value of the rental merchandise associated with delinquent accounts is generally charged off on or before the 90 th day following the time the account became past due in the Rent-A-Center Business and Mexico segments, and during the month following the 150 th day in the Preferred Lease segment. We maintain a reserve for these expected expenses. In addition, any minor repairs made to rental merchandise are expensed at the time of the repair. Cash Equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. Revenues Merchandise is rented to customers pursuant to rental purchase agreements which provide for weekly, semi-monthly or monthly rental terms with non-refundable rental payments. Generally, the customer has the right to acquire title either through a purchase option or through payment of all required rentals. Rental revenue and fees are recognized over the rental term and merchandise sales revenue is recognized when the customer exercises the purchase option and pays the cash price due. Cash received prior to the period in which it should be recognized is deferred and recognized according to the rental term. Revenue is accrued for uncollected amounts due based on historical collection experience. However, the total amount of the rental purchase agreement is not accrued because the customer can terminate the rental agreement at any time and we cannot enforce collection for non-payment of future rents. Revenues from the sale of merchandise in our retail installment stores are recognized when the installment note is signed, the customer has taken possession of the merchandise and collectability is reasonably assured. Revenues from the sale of rental merchandise are recognized upon shipment of the merchandise to the franchisee. Franchise royalty income and fee revenue is recognized upon completion of substantially all services and satisfaction of all material conditions required under the terms of the franchise agreement. Initial franchise fees charged to franchisees for new or converted franchise stores are recognized on a straight-line basis over the term of the franchise agreement. Receivables and Allowance for Doubtful Accounts The installment notes receivable associated with the sale of merchandise at our Get It Now and Home Choice stores generally consists of the sales price of the merchandise purchased and any additional fees for services the customer has chosen, less the customer’s down payment. No interest is accrued and interest income is recognized each time a customer makes a payment, generally on a monthly basis. We have established an allowance for doubtful accounts for our installment notes receivable. Our policy for determining the allowance is based on historical loss experience, as well as the results of management’s review and analysis of the payment and collection of the installment notes receivable within the previous year. We believe our allowance is adequate to absorb any known or probable losses. Our policy is to charge off installment notes receivable that are 120 days or more past due. Charge-offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previously charged off balances are applied as an increase to the allowance for doubtful accounts. Our trade and notes receivables consist primarily of amounts due from our rental customers for renewal and uncollected rental payments; Franchising receivables; and other corporate related receivables. We maintain allowances against our rental customer receivable balances, primarily related to expected merchandise returns and uncollectible payments due from our virtual rental customers. The majority of our Franchising trade and notes receivables relate to amounts due from franchisees for inventory purchases, earned royalties and other obligations. Credit is extended based on an evaluation of a franchisee’s financial condition and collateral is generally not required. Trade receivables are generally due within 30 days and are reported as amounts due from franchisees, net of an allowance for doubtful accounts. Accounts that are outstanding longer than the contractual payment terms are considered past due. Franchising determines its allowance by considering a number of factors, including the length of time receivables are past due, previous loss history, the franchisee’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. Franchising writes off trade receivables that are 90 or more days past due and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. Property Assets and Related Depreciation Furniture, equipment and vehicles are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the respective assets (generally 5 years ) by the straight-line method. Leasehold improvements are amortized over the useful life of the asset or the initial term of the applicable leases by the straight-line method, whichever is shorter. We have incurred costs to develop computer software for internal use. We capitalize the costs incurred during the application development stage, which includes designing the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary stages along with post-implementation stages of internally developed software are expensed as incurred. Internally developed software costs, once placed in service, are amortized over various periods up to 10 years . We incur repair and maintenance expenses on our vehicles and equipment. These amounts are recognized when incurred, unless such repairs significantly extend the life of the asset, in which case we amortize the cost of the repairs for the remaining useful life of the asset utilizing the straight-line method. Goodwill and Other Intangible Assets We record goodwill when the consideration paid for an acquisition exceeds the fair value of the identifiable net tangible and identifiable intangible assets acquired. Goodwill is not subject to amortization but must be periodically evaluated for impairment. Impairment occurs when the carrying value of goodwill is not recoverable from future cash flows. We perform an assessment of goodwill for impairment at the reporting unit level annually as of October 1, or when events or circumstances indicate that impairment may have occurred. Our reporting units are our reportable operating segments. Factors which could necessitate an interim impairment assessment include a sustained decline in our stock price, prolonged negative industry or economic trends and significant underperformance relative to expected historical or projected future operating results. We determine the fair value of each reporting unit using methodologies which include the present value of estimated future cash flows and comparisons of multiples of enterprise values to earnings before interest, taxes, depreciation and amortization. The analysis is based upon available information regarding expected future cash flows and discount rates. Discount rates are based upon our cost of capital. We use a two-step approach to assess goodwill impairment. If the fair value of the reporting unit exceeds its carrying value, then the goodwill is not deemed impaired. If the carrying value of the reporting unit exceeds fair value, we perform a second analysis to measure the fair value of all assets and liabilities within the reporting unit, and if the carrying value of goodwill exceeds its implied fair value, goodwill is considered impaired. The amount of the impairment is the difference between the carrying value of goodwill and the implied fair value, which is calculated as if the reporting unit had been acquired and accounted for as a business combination. As an alternative to this annual impairment testing, we may perform a qualitative assessment for impairment if it believes it is not more likely than not that the carrying value of a reporting unit's net assets exceeds the reporting unit's fair value. At December 31, 2019 , the amount of goodwill attributable to the Rent-A-Center Business and Preferred Lease segments was approximately $1.5 million and $68.7 million , respectively. We currently do not have goodwill balances attributable to our Mexico or Franchising segment. Acquired customer relationships are amortized over a 21 -month period, non-compete agreements are amortized over the contractual life of the agreements, vendor relationships are amortized over a 7 or 15 year period, and other intangible assets are amortized over the life of the asset. Intangible assets are amortized using methods that we believe reflect the pattern in which the economic benefits of the related asset are consumed, including using a straight-line method. Accounting for Impairment of Long-Lived Assets We evaluate all long-lived assets, including intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Impairment is recognized when the carrying amounts of such assets cannot be recovered by the undiscounted net cash flows they will generate. Self-Insurance Liabilities We have self-insured retentions with respect to losses under our workers' compensation, general liability, vehicle liability and health insurance programs. We establish reserves for our liabilities associated with these losses by obtaining forecasts for the ultimate expected losses and estimating amounts needed to pay losses within our self-insured retentions. We make assumptions on our liabilities within our self-insured retentions using actuarial loss forecasts, company-specific development factors, general industry loss development factors, and third-party claim administrator loss estimates which are based on known facts surrounding individual claims. These assumptions incorporate expected increases in health care costs. Periodically, we reevaluate our estimate of liability within our self-insured retentions. At that time, we evaluate the adequacy of our reserves by comparing amounts reserved on our balance sheet for anticipated losses to our updated actuarial loss forecasts and third-party claim administrator loss estimates, and make adjustments to our reserves as needed. Foreign Currency Translation The functional currency of our foreign operations is the applicable local currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the current rate of exchange on the last day of the reporting period. Revenues and expenses are generally translated at a daily exchange rate and equity transactions are translated using the actual rate on the day of the transaction. Other Comprehensive Income (Loss) Other comprehensive income (loss) is comprised exclusively of our foreign currency translation adjustment. Income Taxes We record deferred taxes for temporary differences between the tax and financial reporting bases of assets and liabilities at the enacted tax rate expected to be in effect when those temporary differences are expected to be recovered or settled. Income tax accounting requires management to make estimates and apply judgments to events that will be recognized in one period under rules that apply to financial reporting in a different period in our tax returns. In particular, judgment is required when estimating the value of future tax deductions, tax credits and net operating loss carryforwards (NOLs), as represented by deferred tax assets. We evaluate the recoverability of these future tax deductions and credits by assessing the future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates. We use our historical experience and our short- and long-range business forecasts to provide insight and assist us in determining recoverability. When it is determined the recovery of all or a portion of a deferred tax asset is not likely, a valuation allowance is established. We include NOLs in the calculation of deferred tax assets. NOLs are utilized to the extent allowable due to the provisions of the Internal Revenue Code of 1986, as amended, and relevant state statutes. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon the ultimate settlement with the relevant tax authority. A number of years may elapse before a particular matter, for which we have recorded a liability, is audited and effectively settled. We review our tax positions quarterly and adjust our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position, or when more information becomes available. We classify accrued interest and penalties related to unrecognized tax benefits as interest expense and general & administrative expense, respectively. Sales Taxes We apply the net basis for sales taxes imposed on our goods and services in our consolidated statements of operations. We are required by the applicable governmental authorities to collect and remit sales taxes. Accordingly, such amounts are charged to the customer, collected and remitted directly to the appropriate jurisdictional entity. Earnings Per Common Share Basic earnings per common share are based upon the weighted average number of common shares outstanding during each period presented. Diluted earnings per common share are based upon the weighted average number of common shares outstanding during the period, plus, if dilutive, the assumed exercise of stock options and vesting of stock awards at the beginning of the year, or for the period outstanding during the year for current year issuances. Advertising Costs Costs incurred for producing and communicating advertising are expensed when incurred. Advertising expense was $58.8 million , $74.6 million and $86.1 million , for the years ended December 31, 2019 , 2018 and 2017 , respectively. Advertising expense is net of vendor allowances of $21.2 million , $17.1 million , and $14.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Stock-Based Compensation We maintain long-term incentive plans for the benefit of certain employees and directors, which are described more fully in Note N . We recognize share-based payment awards to our employees and directors at the estimated fair value on the grant date. Determining the fair value of any share-based award requires information about several variables that include, but are not limited to, expected stock volatility over the term of the award, expected dividend yields, and the risk free interest rate. We base the expected term on historical exercise and post-vesting employment-termination experience, and expected volatility on historical realized volatility trends. In addition, all stock-based compensation expense is recorded net of an estimated forfeiture rate. The forfeiture rate is based upon historical activity and is analyzed at least annually as actual forfeitures occur. Compensation costs are recognized net of estimated forfeitures over the requisite service period on a straight-line basis. We issue new shares to settle stock awards. Stock options are valued using a Black-Scholes pricing model. Time-vesting restricted stock units are valued using the closing price on the Nasdaq Global Select Market on the day before the grant date, adjusted for any provisions affecting fair value, such as the lack of dividends or dividend equivalents during the vesting period. Performance-based restricted stock units will vest in accordance with a total shareholder return formula, and are valued by a third-party valuation firm using Monte Carlo simulations. Stock-based compensation expense is reported within general and administrative expenses in the consolidated statements of operations. Reclassifications Certain reclassifications may be made to the reported amounts for prior periods to conform to the current period presentation. These reclassifications have no impact on net earnings or earnings per share in any period. Use of Estimates In preparing financial statements in conformity with U.S. generally accepted accounting principles, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent losses and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In applying accounting principles, we must often make individual estimates and assumptions regarding expected outcomes or uncertainties. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates. Newly Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) , which clarifies existing accounting literature relating to how and when a company recognizes revenue. We adopted ASU 2014-09 and all related amendments beginning January 1, 2018, using the modified retrospective adoption method. We recognized the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Under ASC 606, initial franchise fees charged to franchisees for new stores are recognized over the term of the franchise agreement, rather than when they are paid by the franchisee, upon the opening of a new location. Furthermore, franchise advertising fees are presented on a gross basis, as revenue, in the consolidated statement of operations, rather than net of operating expenses in the consolidated statement of operations. Impacts resulting from adoption were not material to the consolidated statement of operations. See additional descriptions of our revenues in Note B . The cumulative effect of the changes made to our consolidated balance sheet for the adoption of ASC 606 was a reduction to accrued liabilities of $1.7 million , an increase to deferred tax liability of $0.4 million , and an offsetting $1.3 million increase to 2018 opening retained earnings. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which replaces existing accounting literature relating to the classification of, and accounting for, leases. Under ASU 2016-02, a company must recognize for all leases (with the exception of leases with terms of 12 months or less) a liability representing a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset representing the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting is largely unchanged, with certain improvements to align lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Adoption of ASU 2016-02 requires the use of a modified retrospective transition method to measure leases at the beginning of the earliest period presented in the consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, allowing companies to apply a transition method for adoption of the new standard as of the adoption date, with recognition of any cumulative-effects as adjustments to the opening balance of retained earnings in the period of adoption. We adopted these ASUs beginning January 1, 2019 and elected the transition method under ASU 2018-11. Our lease-to-own agreements, which comprise the majority of our annual revenue, fall within the scope of ASU 2016-02 under lessor accounting; however, the new standard does not significantly affect the timing of recognition or presentation of revenue for our rental contracts. As a lessee, the new standard affected a substantial portion of our lease contracts. As of December 31, 2019 , we have $281.6 million operating lease right-of-use assets and $285.0 million operating lease liabilities in our condensed consolidated balance sheet. Upon adoption, we identified impairment losses related to closure of our product service centers and Rent-A-Center Business stores resulting in a cumulative-effect decrease of $2.0 million , net of tax, to our January 1, 2019 retained earnings balance. There were no significant effects to our condensed consolidated statements of operations or condensed consolidated statements of cash flows. We elected a package of optional practical expedients in our adoption of the new standard, including the option to retain the current classification for leases entered into prior to the date of adoption; the option not to reassess initial direct costs for capitalization for leases entered into prior to the date of adoption; and the option not to separate lease and non-lease components for our lease-to-own agreements as a lessor, and our real estate, and certain categories of equipment leases, as a lessee. In conjunction with the adoption of the new lease accounting standard, we implemented a new back-office lease administration and accounting system to support the new accounting and disclosure requirements as a lessee. In addition, we implemented changes to our previous accounting policies, processes, and internal controls to ensure compliance with the new standard. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a company to reclassify to retained earnings the disproportionate income tax effects of the Tax Act on items with accumulated other comprehensive income that the FASB refers to as having been stranded in accumulated other comprehensive income. The adoption of ASU 2018-02 was required for us beginning January 1, 2019. We elected not to exercise the option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act (or portion thereof) is recorded. |
Revenues Revenues (Notes)
Revenues Revenues (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Revenues [Text Block] | Revenues The following tables disaggregates our revenue: Twelve Months Ended December 31, 2019 Rent-A-Center Business Preferred Lease Mexico Franchising Consolidated (In thousands) Unaudited Store Rentals and fees $ 1,585,997 $ 587,502 $ 50,903 $ — $ 2,224,402 Merchandise sales 140,372 161,235 3,023 — 304,630 Installment sales 70,434 — — — 70,434 Other 3,683 523 34 555 4,795 Total store revenues 1,800,486 749,260 53,960 555 2,604,261 Franchise Merchandise sales — — — 49,135 49,135 Royalty income and fees — — — 16,456 16,456 Total revenues $ 1,800,486 $ 749,260 $ 53,960 $ 66,146 $ 2,669,852 Twelve Months Ended December 31, 2018 Rent-A-Center Business Preferred Lease Mexico Franchising Consolidated (In thousands) Unaudited Store Rentals and fees $ 1,640,839 $ 557,592 $ 46,429 $ — $ 2,244,860 Merchandise sales 136,878 164,432 3,145 — 304,455 Installment sales 69,572 — — — 69,572 Other 8,423 538 39 — 9,000 Total store revenues 1,855,712 722,562 49,613 — 2,627,887 Franchise Merchandise sales — — — 19,087 19,087 Royalty income and fees — — — 13,491 13,491 Total revenues $ 1,855,712 $ 722,562 $ 49,613 $ 32,578 $ 2,660,465 Rental-Purchase Agreements Rent-A-Center Business, Preferred Lease, and Mexico Rentals and Fees. Rental merchandise is leased to customers pursuant to rental purchase agreements which provide for weekly, semi-monthly or monthly rental terms with non-refundable rental payments. At the expiration of each rental term customers renew the rental agreement for the next rental term. Generally, the customer has the right to acquire title of the merchandise either through a purchase option or through payment of all required rental terms. Customers can terminate the agreement at the end of any rental term without penalty. Therefore, rental transactions are accounted for as operating leases. Rental payments received at our Rent-A-Center Business, Preferred Lease (excluding virtual) and Mexico locations must be prepaid and revenue is recognized over the rental term. Under the virtual business model, revenues are earned prior to the rental payment due date. Therefore, revenue is accrued prior to receipt of the rental payment, net of estimated returns and uncollectible renewal payments. See Note C for additional information regarding accrued rental revenue and the related allowances for returns and uncollectible payments. Cash received for rental payments, including fees, prior to the period in which it should be recognized is deferred and recognized according to the rental term. At December 31, 2019 and 2018 , we had $39.9 million and $42.1 million , respectively, in deferred revenue included in accrued liabilities related to our rental purchase agreements. Revenue related to various payment, reinstatement or late fees is recognized when paid by the customer at the point service is provided. Rental merchandise is depreciated using the income forecasting method and is recognized in cost of sales over the rental term. We also offer additional product plans along with our rental agreements which provide customers with liability protection against significant damage or loss of a product, and club membership benefits, including various discount programs and product service and replacement benefits in the event merchandise is damaged or lost. Customers renew product plans in conjunction with their rental term renewals, and can cancel the plans at any time. Revenue for product plans is recognized over the term of the plan. Costs incurred related to product plans are primarily recognized in cost of sales. Revenue from contracts with customers Rent-A-Center Business, Preferred Lease, and Mexico Merchandise Sales. Merchandise sales include payments received for the exercise of the early purchase option offered through our rental purchase agreements or merchandise sold through point of sale transactions. Revenue for merchandise sales is recognized when payment is received and ownership of the merchandise passes to the customer. The remaining net value of merchandise sold is recorded to cost of sales at the time of the transaction. Installment Sales. Revenue from the sale of merchandise in our retail installment stores is recognized when the installment note is signed and control of the merchandise has passed to the customer. The cost of merchandise sold through installment agreements is recognized in cost of sales at the time of the transaction. We offer extended service plans with our installment agreements which are administered by third parties and provide customers with product service maintenance beyond the term of the installment agreement. Payments received for extended service plans are deferred and recognized, net of related costs, when the installment payment plan is complete and the service plan goes into effect. Customers can cancel extended service plans at any time during the installment agreement and receive a refund for payments previously made towards the plan. At December 31, 2019 and 2018 , we had $2.9 million and $3.0 million , respectively, in deferred revenue included in accrued liabilities related to extended service plans. Other. Other revenue primarily consisted of external maintenance and repair services provided by the Company’s service department, in addition to other miscellaneous product plans offered to our rental and installment customers. We completed the shutdown of our service department operations early in the first quarter of 2019. Revenue for other product plans is recognized in accordance with the terms of the applicable plan agreement. Franchising Merchandise Sales. Revenue from the sale of rental merchandise is recognized upon shipment of the merchandise to the franchisee. Royalty Income and Fees. Franchise royalties, including franchisee contributions to corporate advertising funds, represent sales-based royalties calculated as a percentage of gross rental payments and sales. Royalty revenue is recognized as rental payments and sales occur. Franchise fees are initial fees charged to franchisees for new or converted franchise stores. Franchise fee revenue is recognized on a straight-line basis over the term of the franchise agreement. At December 31, 2019 and 2018 , we had $4.5 million and $4.1 million |
Receivables and Allowance for D
Receivables and Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Receivables and Allowance for Doubtful Accounts [Abstract] | |
Receivables and Allowance for Doubtful Accounts [Text Block] | Receivables and Allowance for Doubtful Accounts Installment sales receivables consist primarily of receivables due from customers for the sale of merchandise in our retail installment stores. Trade and notes receivables consist primarily of amounts due from our rental customers for renewal and uncollected rental payments; amounts owed from our franchisees for inventory purchases, earned royalties and other obligations; and other corporate related receivables. Receivables consist of the following: December 31, (In thousands) 2019 2018 Installment sales receivable $ 56,370 $ 54,746 Trade and notes receivables 33,354 19,782 Total receivables 89,724 74,528 Less allowance for doubtful accounts (5,601 ) (4,883 ) Total receivables, net of allowance for doubtful accounts $ 84,123 $ 69,645 We maintain allowances against our receivable balances, primarily related to expected merchandise returns and uncollectible payments due from our virtual rental and installment customers. The allowance for doubtful accounts related to trade and notes receivable was $1.5 million and $1.3 million , and the allowance for doubtful accounts related to installment sales receivable was $4.1 million and $3.6 million at December 31, 2019 and 2018 , respectively. Changes in our allowance for doubtful accounts are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Beginning allowance for doubtful accounts $ 4,883 $ 4,167 $ 3,593 Estimated uncollectible payments and returns (1)(2) 15,077 14,610 15,702 Accounts written off, net of recoveries (14,359 ) (13,894 ) (15,128 ) Ending allowance for doubtful accounts $ 5,601 $ 4,883 $ 4,167 (1) Uncollectible installment payments, franchisee obligations, and other corporate receivables, are recognized in other store operating expenses in our condensed consolidated financial statements. (2) Uncollectible rental payments and returns are recognized as a reduction to rental revenue in our condensed consolidated financial statements. |
Rental Merchandise
Rental Merchandise | 12 Months Ended |
Dec. 31, 2019 | |
Rental Merchandise [Abstract] | |
Rental Merchandise [Text Block] | Rental Merchandise December 31, (In thousands) 2019 2018 On rent Cost $ 1,112,130 $ 1,110,968 Less accumulated depreciation (414,860 ) (427,160 ) Net book value, on rent $ 697,270 $ 683,808 Held for rent Cost $ 163,636 $ 147,300 Less accumulated depreciation (25,218 ) (23,638 ) Net book value, held for rent $ 138,418 $ 123,662 |
Property Assets
Property Assets | 12 Months Ended |
Dec. 31, 2019 | |
Property Assets [Abstract] | |
Property Assets [Text Block] | Property Assets December 31, (In thousands) 2019 2018 Furniture and equipment $ 475,431 $ 512,056 Building and leasehold improvements 207,620 251,975 Land and land improvements — 6,737 Transportation equipment 567 3,765 Construction in progress 5,346 3,540 Total property assets 688,964 778,073 Less accumulated depreciation (522,826 ) (551,750 ) Total property assets, net of accumulated depreciation $ 166,138 $ 226,323 We had $3.8 million and $1.9 million of capitalized software costs included in construction in progress at December 31, 2019 and 2018 , respectively. For the years ended December 31, 2019 , 2018 and 2017 , we placed in service internally developed software of approximately $6.0 million , $9.7 million and $32.1 million , respectively. On December 27, 2019, we completed the sale of our corporate headquarters for proceeds of $43.2 million , and entered into a lease agreement for a reduced portion, approximately 60%, of the total square footage of the building. Assets written-off in connection with this transaction included building assets of $14.0 million , including furniture and equipment, and land of $6.7 million . We recorded a total gain on sale of approximately $21.8 million in the fourth quarter of 2019. The gain was recorded to Other (gains) and charges in our Consolidated Statement of Operations. The lease includes an initial term of 12 years, with two five year renewal option periods at our discretion . In accordance with ASC 842, we recorded operating lease right-of-use assets and operating lease liabilities of $19.0 million |
Leases Leases (Notes)
Leases Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases [Text Block] | Leases We lease space for all of our Rent-A-Center Business and Mexico stores under operating leases expiring at various times through 2026. In addition we lease space for certain support facilities under operating leases expiring at various times through 2032 . Most of our store leases are five year leases and contain renewal options for additional periods ranging from three to five years at rental rates adjusted according to agreed-upon formulas. We evaluate all leases to determine if it is likely that we will exercise future renewal options and in most cases we are not reasonably certain of exercise due to competing market rental rates and lack of significant penalty or business disruption incurred by not exercising the renewal options. In certain store sales, we enter into lease assignment agreements with the buyer, but remain as the primary obligor under the original lease for the remaining active term. These assignments are therefore classified as subleases and the original lease is included in our operating lease right-of-use assets and operating lease liabilities in our condensed consolidated balance sheet. We lease vehicles for all of our Rent-A-Center Business stores under operating leases with lease terms expiring twelve months after the start date of the lease. We classify these leases as short-term and have elected the short-term lease exemption for our vehicle leases, and have therefore excluded them from our operating lease right-of-use assets within our condensed consolidated balance sheet. We also lease vehicles for all of our Mexico stores which have terms expiring at various times through 2022 with rental rates adjusted periodically for inflation. Finally, we have a minimal number of equipment leases, primarily related to temporary storage and certain back office technology hardware assets. For all of the leases described above, we have elected to use the practical expedient not to separate the lease and non-lease components and account for these as a single component. We have also elected the practical expedients that remove the requirement to reassess whether expired or existing contracts contain leases and the requirement to reassess the lease classification for any existing leases prior to the adoption date. Operating lease right-of-use assets and operating lease liabilities are discounted using our incremental borrowing rate, since the implicit rate is not readily determinable. We do not currently have any financing leases. Operating lease costs are recorded on a straight-line basis within other store expenses in our condensed consolidated statements of operations. Total operating lease costs by expense type: Twelve Months Ended (in thousands) December 31, 2019 Operating lease cost included in other store expenses (1) $ 148,314 Operating lease cost included in other charges 9,222 Sublease receipts (7,683 ) Total operating lease charges $ 149,853 (1) Includes short-term lease costs, which are not significant. Supplemental cash flow information related to leases: Twelve Months Ended (in thousands) December 31, 2019 Cash paid for amounts included in measurement of operating lease liabilities $ 120,826 Cash paid for short-term operating leases not included in operating lease liabilities 27,402 Right-of-use assets obtained in exchange for new operating lease liabilities 78,250 Weighted-average discount rate and weighted-average remaining lease term: (in thousands) December 31, 2019 Weighted-average discount rate (1) 7.7 % Weighted-average remaining lease term (in years) 4 (1) January 1, 2019 incremental borrowing rate was used for leases in existence at the time of adoption of ASU 2016-02. Reconciliation of undiscounted operating lease liabilities to the present value operating lease liabilities at December 31, 2019 : (In thousands) Operating Leases 2020 $ 116,689 2021 86,279 2022 57,271 2023 31,352 2024 16,323 Thereafter 21,473 Total undiscounted operating lease liabilities 329,387 Less: Interest (44,346 ) Total present value of operating lease liabilities $ 285,041 In accordance with ASC 840, future minimum rental payments for operating leases with remaining lease terms in excess of one year, at December 31, 2018 : (In thousands) Operating Leases 2019 $ 145,345 2020 116,785 2021 80,362 2022 47,417 2023 16,460 Thereafter 2,280 Total future minimum rental payments $ 408,649 |
Intangible Assets and Acquisiti
Intangible Assets and Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Acquisitions [Text Block] | Intangible Assets and Acquisitions Goodwill Impairment Charge In the fourth quarter of 2019, we completed a qualitative assessment for impairment of goodwill as of October 1, 2019, concluding it was not more likely than not that the carrying value of our reporting unit's net assets exceeded the reporting unit's fair value and therefore no impairment of goodwill existed as of December 31, 2019. Intangible Assets Amortizable intangible assets consist of the following: December 31, 2019 December 31, 2018 (Dollar amounts in thousands) Avg. Life (years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 2 $ 80,036 $ 79,941 $ 79,942 $ 79,695 Vendor relationships 9 9,760 1,113 860 860 Non-compete agreements 3 6,747 6,727 6,745 6,493 Total other intangible assets $ 96,543 $ 87,781 $ 87,547 $ 87,048 Aggregate amortization expense (in thousands): Year Ended December 31, 2019 $ 723 Year Ended December 31, 2018 $ 671 Year Ended December 31, 2017 (1) $ 4,908 (1) Includes impairment charge of $3.9 million to our intangible assets, related to a vendor relationship in the Preferred Lease segment, recorded to Other (gains) and charges in our consolidated statement of operations during the first quarter of 2017. Estimated amortization expense, assuming current intangible balances and no new acquisitions, for each of the years ending December 31, is as follows: (In thousands) Estimated Amortization Expense 2020 $ 1,031 2021 906 2022 890 2023 890 2024 890 Thereafter 4,155 Total amortization expense $ 8,762 At December 31, 2019 , the amount of goodwill attributable to the Rent-A-Center Business and Preferred Lease segments was approximately $1.5 million and $68.7 million , respectively. At December 31, 2018 , the amount of goodwill allocated to the Rent-A-Center Business and Preferred Lease segment was approximately $1.5 million and $55.3 million , respectively. A summary of the changes in recorded goodwill follows: Year Ended December 31, (In thousands) 2019 2018 Beginning goodwill balance $ 56,845 $ 56,614 Additions from acquisitions 13,700 169 Post purchase price allocation adjustments (328 ) 62 Ending goodwill balance $ 70,217 $ 56,845 Acquisitions On August 13, 2019 , we completed the acquisition of substantially all of the assets of C/C Financial Corp. dba Merchants Preferred (" Merchants Preferred "), a nationwide provider of virtual lease-to-own services . The aggregate purchase price was approximately $46.4 million , including net cash consideration of approximately $28.0 million , and 701,918 shares of our common stock valued at $27.31 per share, as of the date of closing, less working capital adjustments of approximately $0.9 million . Assets acquired and liabilities assumed in connection with the acquisition have been recorded at their fair values. The following table provides the final estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands) August 13, 2019 Receivables $ 1,813 Prepaid expenses and other assets 154 Rental merchandise 17,904 Software 4,300 Right of use operating leases 404 Other intangible assets 8,900 Goodwill 13,403 Lease liabilities (487 ) Net identifiable assets acquired $ 46,391 The fair value measurements were primarily based on significant unobservable inputs (level 3) developed using company-specific information. Certain fair value estimates were determined based on an independent valuation of the net assets acquired, including identifiable intangible assets, relating to dealer relationships, of $8.9 million , and software of $4.3 million . The fair value for dealer relationships and software were estimated using common industry valuation methods for similar asset types, based primarily on cost inputs and projected cash flows. The dealer relationships and software assets were both assigned remaining lives of 10 years . In addition, we recorded goodwill of $13.4 million , which consists of the excess of the net purchase price over the fair value of the net assets acquired . The goodwill is not deductible for tax purposes. A change in these valuations may also impact the income tax related accounts and goodwill. Merchants Preferred results of operations are reflected in our unaudited condensed consolidated statements of operations from the date of acquisition. In connection with this acquisition, we recorded approximately $1.4 million in acquisition-related expenses during the twelve months ended December 31, 2019 including expenses related to legal, professional, and banking transaction fees. These costs were included in other (gains) and charges in our consolidated statement of operations. The following table provides information concerning the other acquisitions, excluding Merchants Preferred, made during the years ended December 31, 2019 , 2018 and 2017 . Year Ended December 31, (Dollar amounts in thousands) 2019 2018 2017 Number of stores acquired remaining open — 1 — Number of stores acquired that were merged with existing stores 4 6 8 Number of transactions 4 7 4 Total purchase price $ 504 $ 2,048 $ 2,547 Amounts allocated to: Goodwill $ 66 $ 169 $ 1,217 Customer relationships 85 289 550 Rental merchandise 353 1,590 780 Purchase prices are determined by evaluating the average monthly rental income of the acquired stores and applying a multiple to the total for lease-to-own store acquisitions. Operating results of the acquired stores and accounts have been included in the financial statements since their date of acquisition. The weighted average amortization period was approximately 54 months for intangible assets added during the year ended December 31, 2019 . Additions to goodwill due to acquisitions in 2019 were tax deductible. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued liabilities [Text Block] | Accrued Liabilities December 31, (In thousands) 2019 2018 Accrued insurance costs $ 104,557 $ 109,505 Accrued compensation 38,547 55,789 Deferred revenue 52,589 53,348 Taxes other than income 28,397 27,711 Income taxes payable — 26,797 Accrued legal settlement 440 11,000 Deferred compensation 9,711 8,687 Accrued interest payable 1,391 5,643 Deferred rent — 3,503 Accrued dividends 15,912 — Accrued other 24,233 35,476 Total Accrued liabilities $ 275,777 $ 337,459 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes [Text Block] | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Act”) was enacted which, among other things, reduced the U.S. federal income tax rate from 35% to 21% in 2018, instituted a dividends received deduction for foreign earnings with a related tax for the deemed repatriation of unremitted foreign earnings in 2017, and created a new U.S. minimum tax on earnings of foreign subsidiaries. The Tax Act also allowed for 100% bonus depreciation for assets purchased after September 27, 2017, until December 31, 2023. We recognized an income tax benefit of $76.5 million in the year ended December 31, 2017, associated with the revaluation of the net deferred tax liability at the date of enactment. Our provisional estimate of the one-time transition tax resulted in $0.7 million of additional tax expense. We also recorded a federal provisional benefit of $9.7 million based on our intent to fully expense all qualifying expenditures. In 2018, we finalized our analysis over the one-year measurement period that ended on December 22, 2018, in accordance with SAB 118, resulting in an immaterial income tax benefit recorded in our consolidated statement of operations. For financial statement purposes, income (loss) before income taxes by source was comprised of the following: Year Ended December 31, (In thousands) 2019 2018 2017 Domestic $ 212,406 $ 11,290 $ (109,615 ) Foreign 11,377 2,551 (585 ) Earnings (loss) before income taxes $ 223,783 $ 13,841 $ (110,200 ) A reconciliation of the federal statutory rate of 21% for 2019 and 2018 and 35% for 2017 to actual follows: Year Ended December 31, 2019 2018 2017 Tax at statutory rate 21.0 % 21.0 % 35.0 % Tax Cuts and Jobs Act of 2017 — % — % 70.3 % State income taxes 4.3 % 17.6 % (1.8 )% Effect of foreign operations, net of foreign tax credits 0.3 % (1.2 )% 3.5 % Effect of current and prior year credits (2.7 )% (31.4 )% 1.7 % Change in unrecognized tax benefits — % 10.9 % — % Other permanent differences 0.2 % 14.9 % — % Prior year return to provision adjustments (2.7 )% 7.3 % — % Adjustments to deferred taxes — % — % 1.6 % Valuation allowance 1.2 % (0.5 )% (1.6 )% Other, net 0.8 % — % (2.7 )% Effective income tax rate 22.4 % 38.6 % 106.0 % The components of income tax expense (benefit) are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Current expense (benefit) Federal $ (6,996 ) $ (2,573 ) $ (34,445 ) State 528 816 1,216 Foreign 796 724 (1,417 ) Total current (5,672 ) (1,033 ) (34,646 ) Deferred expense (benefit) Federal 37,309 4,691 (89,820 ) State 16,439 3,325 9,266 Foreign 2,161 (1,634 ) (1,653 ) Total deferred 55,909 6,382 (82,207 ) Total income tax expense (benefit) $ 50,237 $ 5,349 $ (116,853 ) Deferred tax assets (liabilities) consist of the following: December 31, (In thousands) 2019 2018 Deferred tax assets Net operating loss carryforwards $ 34,928 $ 56,701 Accrued liabilities 45,671 50,558 Intangible assets 13,088 20,346 Lease obligations 71,104 — Other assets including credits 10,915 23,070 Foreign tax credit carryforwards 7,815 6,601 Total deferred tax assets 183,521 157,276 Valuation allowance (43,555 ) (39,961 ) Deferred tax assets, net 139,966 117,315 Deferred tax liabilities Rental merchandise (193,878 ) (177,794 ) Property assets (24,513 ) (32,571 ) Lease assets (69,035 ) — Other liabilities (1,635 ) (453 ) Total deferred tax liabilities (289,061 ) (210,818 ) Net deferred taxes $ (149,095 ) $ (93,503 ) At December 31, 2019 , we have net operating loss carryforwards of approximately $360.0 million for state and $53.0 million for foreign jurisdictions, partially offset by valuation allowance. We also had federal, state and foreign tax credit carryforwards of approximately $15.9 million of which a portion has been offset by a valuation allowance. The net operating losses and credits will expire in various years between 2020 and 2039 . We file income tax returns in the U.S. and multiple foreign jurisdictions with varying statutes of limitations. In the normal course of business, we are subject to examination by various taxing authorities. We are currently under examination by certain Federal and state revenue authorities for the fiscal years 2013 through 2017. The following is a summary of all tax years that are open to examination. • U.S. Federal - 2013 and forward • U.S. States - 2013 and forward • Foreign - 2013 and forward We do not anticipate that adjustments as a result of these audits, if any, will have a material impact to our consolidated statement of operations, financial condition, and statement of cash flows or earnings per share. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. In 2019, we increased the valuation allowance against net operating losses and credits in multiple state jurisdictions. The valuation allowance related to foreign deferred tax assets was decreased due to utilization of losses in the current year. However, management believes certain foreign losses and deferred tax assets will not be realized and has recorded a valuation allowance related to these assets. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: Year Ended December 31, (In thousands) 2019 2018 2017 Beginning unrecognized tax benefit balance $ 36,364 $ 37,319 $ 33,723 Reductions based on tax positions related to current year (654 ) (206 ) (2,280 ) Additions for tax positions of prior years 415 735 6,688 Reductions for tax positions of prior years (11,917 ) (488 ) (368 ) Settlements — (996 ) (444 ) Ending unrecognized tax benefit balance $ 24,208 $ 36,364 $ 37,319 I ncluded in the balance of unrecognized tax benefits at December 31, 2019 , is $5.0 million , net of federal benefit, which, if ultimately recognized, will affect our annual effective tax rate. During the next twelve months, we anticipate that it is reasonably possible that the amount of unrecognized tax benefits could be reduced by approximately $18.7 million either because our tax position will be sustained upon audit or as a result of the expiration of the statute of limitations for specific jurisdictions. As of December 31, 2019 , we have accrued approximately $3.1 million for the payment of interest for uncertain tax positions and recorded interest expense of approximately $346 thousand for the year then ended, which are excluded from the reconciliation of unrecognized tax benefits presented above. These amounts are net of the reversal of interest expense due to settlement of certain tax positions. The effect of the tax rate change for items originally recognized in other comprehensive income was properly recorded in tax expense from continuing operations. This results in stranded tax effects in accumulated other comprehensive income at December 31, 2019. Companies can make a policy election to reclassify from accumulated other comprehensive income to retained earnings the stranded tax effects directly arising from the change in the federal corporate tax rate. We did not exercise the option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act (or portion thereof) is recorded. |
Senior Debt
Senior Debt | 12 Months Ended |
Dec. 31, 2019 | |
Senior Debt [Abstract] | |
Debt Disclosure [Text Block] | Senior Debt On August 5, 2019, we entered into a new Term Loan Credit Agreement (the “Term Loan Credit Agreement”) providing for a seven-year $200 million senior secured term loan facility and an Asset Based Loan Credit Agreement (the “ABL Credit Agreement”) providing a five-year asset-based revolving credit facility (the “ABL Credit Facility”) with commitments of $300 million , the proceeds of which were used for the redemption of all of our outstanding senior notes. The amounts outstanding under the Term Loan Credit Agreement and ABL Credit Facility were $199.5 million and $40.0 million at December 31, 2019 , respectively. Proceeds from the Term Loan Credit Agreement were net of original issue discount of $2.0 million upon issuance from the lenders. In addition, in connection with the closing of the Term Loan Credit Agreement and the ABL Credit Agreement, we incurred approximately $6.3 million in debt issuance costs. The original issue discount and debt issuance costs will be amortized over the remaining terms of the respective credit agreements. As of December 31, 2019 , the total unamortized balance of debt issuance costs relating to our senior debt and original issue discount reported in the Condensed Consolidated Balance Sheet were $6.7 million and $1.9 million , respectively. We also utilize the ABL Credit Facility for the issuance of letters of credit. As of December 31, 2019 , we have issued letters of credit in the aggregate amount of $92 million . The debt facilities as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In thousands) Facility Maturity Maximum Facility Amount Outstanding Amount Available Maximum Facility Amount Outstanding Amount Available Senior Debt: Term Loan August 5, 2026 $ 200,000 $ 199,500 $ — $ — $ — $ — ABL Credit Facility August 5, 2024 300,000 40,000 168,200 200,000 — 95,900 Total 500,000 239,500 168,200 200,000 — 95,900 Other indebtedness: Line of credit — — — 12,500 — 12,500 Total $ 500,000 239,500 $ 168,200 $ 212,500 — $ 108,400 Unamortized debt issuance costs (8,587 ) — (1) Total senior debt, net $ 230,913 $ — (1) At December 31, 2018 there was $2.6 million in unamortized debt issuance costs included in other assets on the consolidated balance sheet. Term Loan Credit Agreement The Term Loan Credit Agreement, which matures on August 5, 2026 , amortizes in equal quarterly installments at a rate of 1.00% per annum of the original principal amount thereof, with the remaining balance due at final maturity. Interest on the Term Loan Credit Agreement will accrue at the Eurodollar rate plus an applicable margin equal to 4.50% . The margin on the Term Loan Credit Agreement was 6.25% at December 31, 2019 . The Term Loan Credit Agreement permits the Company to prepay the term loans, in whole or in part, without penalty on or after the six-month anniversary of the Closing Date. It also permits the Company to incur incremental term loans in an aggregate amount equal to $150 million plus the amount of voluntary prepayments of the term loans and an unlimited amount subject to a pro forma consolidated senior secured leverage ratio of not greater than 2.00 to 1.00, subject to certain other conditions. The obligations under the Term Loan Credit Agreement are guaranteed by certain of our subsidiaries. The Term Loan Credit Agreement and the guarantees are secured on a first-priority basis by substantially all of the tangible and intangible assets of the Company and the guarantors, other than collateral subject to a first-priority lien under the ABL Credit Agreement, consisting of, among other things, accounts receivable, inventory and bank accounts (and funds on deposit therein), in which the Term Loan Credit Agreement and the guarantees have a second-priority security interest, in each case, subject to certain exceptions. The Term Loan Credit Agreement contains covenants that are usual and customary for facilities and transactions of this type and that, among other things, restrict the ability of the Company and its restricted subsidiaries to: • create certain liens and enter into certain sale and lease-back transactions, excluding the sale and lease-back of the Company headquarters; • create, assume, incur or guarantee certain indebtedness; • consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s and its restricted subsidiaries’ assets, to another person • pay dividends or make other distributions on, or repurchase or redeem, the Company’s capital stock or certain other debt; and • make other restricted payments. These covenants are subject to a number of limitations and exceptions set forth in the Term Loan Credit Agreement. We are currently permitted to pay dividends and repurchase the Company's common stock without limitation. The Term Loan Credit Agreement provides for customary events of default, including, but not limited to, failure to pay principal and interest, failure to comply with covenants, agreements or conditions, and certain events of bankruptcy or insolvency involving the Company and its significant subsidiaries. ABL Credit Agreement The ABL Credit Facility will mature on August 5, 2024 . The Borrowers (as defined in the ABL Credit Agreement) may borrow only up to the lesser of the level of the then-current Borrowing Base and the committed maximum borrowing capacity of $300 million . The Borrowing Base is tied to the Eligible Installment Sales Accounts, Inventory and Eligible Rental Contracts, reduced by Reserves, as defined in the ABL Credit Agreement. We provide to the Agent information necessary to calculate the Borrowing Base within 30 days of the end of each calendar month, unless liquidity is less than 15% of the maximum borrowing capacity of the ABL Credit Agreement or $45 million , in which case we must provide weekly information. Interest is payable on the ABL Credit Facility at a fluctuating rate of interest determined by reference to the Eurodollar rate plus an applicable margin of 1.50% to 2.00% . The margin on the ABL Credit Facility was 3.25% at December 31, 2019 . A commitment fee equal to 0.250% to 0.375% of the unused portion of the ABL Credit Facility fluctuates dependent upon average utilization for the prior month as defined by a pricing grid included in the ABL Credit Agreement. The commitment fee at December 31, 2019 was 0.375% . We paid $0.5 million of commitment fees during the fourth quarter of 2019. Letters of credit are limited to the lesser of (x) $150 million , subject to certain limitations, and (y) the aggregate unused availability then in effect. Subject to certain conditions, the ABL Credit Facility may be expanded by up to $100 million in additional commitments, subject to a pro forma fixed charge coverage ratio being greater than 1.10 to 1.00. The obligations under the ABL Credit Agreement are guaranteed by the Company and certain of the Company’s subsidiaries. The ABL Credit Agreement and the guarantees are secured on a first-priority basis on all our and the guarantors’ accounts receivable, inventory and bank accounts (and funds on deposit therein) and a second-priority basis on all of the tangible and intangible assets (second in priority to the liens securing the Term Loan Credit Agreement) of such persons, in each case, subject to certain exceptions. The ABL Credit Agreement contains covenants that are usual and customary for facilities and transactions of this type and are substantially the same as covenants in the Term Loan Credit Agreement. The ABL Credit Facility also requires the maintenance of a Consolidated Fixed Charge Coverage Ratio (as defined in the ABL Credit Agreement) of 1.10 to 1.00 at the end of each fiscal quarter when either (i) certain specified events of default have occurred and are continuing or (ii) availability is less than or equal to the greater of $33.75 million and 15% of the line cap then in effect. The ABL Credit Agreement provides for customary events of default that are substantially the same as events of default in the Term Loan Credit Agreement. The table below shows the scheduled maturity dates of our outstanding debt at December 31, 2019 for each of the years ending December 31: (in thousands) Term Loan ABL Credit Facility Total 2020 $ 2,000 $ — $ 2,000 2021 2,000 — 2,000 2022 2,000 — 2,000 2023 2,000 — 2,000 2024 2,000 40,000 42,000 Thereafter 189,500 — 189,500 Total senior debt $ 199,500 $ 40,000 $ 239,500 |
Senior Notes
Senior Notes | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiary Guarantors - Senior Notes [Abstract] | |
Subsidiary Guarantors Senior Notes [Text Block] | Senior Notes On November 2, 2010, we issued $300 million in senior unsecured notes due November 2020, bearing interest at 6.625%, and on May 2, 2013, we issued $250 million in senior unsecured notes due May 2021, bearing interest at 4.75%. The 6.625% and 4.75% senior notes were redeemed effective August 5, 2019, at a price equal to 100% of their principal amount plus accrued and unpaid interest to, but excluding, the redemption date. As of December 31, 2018, we had $540.0 million in senior notes outstanding, net of unamortized issuance costs. In connection with redeeming the senior unsecured notes, we recorded a write-down of previously unamortized debt issuance costs of approximately $2.0 million in the third quarter of 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Contingencies Disclosure [Text Block] | Contingencies From time to time, the Company, along with our subsidiaries, is party to various legal proceedings arising in the ordinary course of business. We reserve for loss contingencies that are both probable and reasonably estimable. We regularly monitor developments related to these legal proceedings, and review the adequacy of our legal reserves on a quarterly basis. We do not expect these losses to have a material impact on our condensed consolidated financial statements if and when such losses are incurred. We are subject to unclaimed property audits by states in the ordinary course of business. The property subject to review in the audit process include unclaimed wages, vendor payments and customer refunds. State escheat laws generally require entities to report and remit abandoned and unclaimed property to the state. Failure to timely report and remit the property can result in assessments that could include interest and penalties, in addition to the payment of the escheat liability itself. We routinely remit escheat payments to states in compliance with applicable escheat laws. Blair v. Rent-A-Center, Inc. This matter was a state-wide class action complaint originally filed on March 13, 2017 in the Federal District Court for the Northern District of California. The complaint alleged various claims, including that our cash sales and total rent to own prices exceeded the pricing permitted under California's Karnette Rental-Purchase Act. Following a court-ordered mediation on March 28, 2019, we reached an agreement in principle to settle this matter for a total of $13 million , including attorneys’ fees. The settlement was approved by the court in October 2019. We have denied any liability in the settlement and agreed to the settlement in order to avoid additional expensive, time-consuming litigation. We recorded the pre-tax charge for this settlement in the first quarter of 2019, and the settlement amount was paid in November 2019. Velma Russell v. Acceptance Now. This purported class action arising out of calls made by Acceptance Now to customers’ reference (s) was filed on January 29, 2019 in Massachusetts state court. Specifically, plaintiffs sought to certify a class representing any references of customers (within the state of Massachusetts) during the 4 years prior to the filing date that were contacted by Acceptance Now more frequently during a 12 month period than is permitted by Massachusetts state law. The plaintiffs were seeking injunctive relief and statutory damages of $25 per reference which may be tripled to $75 per reference. References are not parties to our consumer arbitration agreement. We operate 12 Acceptance Now locations in Massachusetts. Mediation took place in September 2019. We reached an agreement in principle in December 2019 to settle this matter. The settlement amount is immaterial and was recorded in the fourth quarter of 2019. Federal Trade Commission civil investigative demand. |
Other (Gains) and Charges
Other (Gains) and Charges | 12 Months Ended |
Dec. 31, 2019 | |
Other Charges - Operating Expenses [Abstract] | |
Other (Gains) and Charges [Text Block] | Other (Gains) and Charges Cost Savings Initiatives. During 2018, we began execution of multiple cost savings initiatives, including reductions in overhead and supply chain, resulting in pre-tax charges during 2019 consisting of $4.9 million in lease impairment charges, $2.6 million in severance and other payroll-related costs, $2.3 million in other miscellaneous shutdown and holding costs, and $0.4 million in disposal of fixed assets. Costs incurred during 2018 related to these initiatives included pre-tax charges of $13.1 million in severance and other payroll-related costs, $6.8 million in contract termination fees, $2.3 million in other miscellaneous shutdown costs, $3.4 million in lease obligation costs, $1.9 million in legal and advisory fees, $1.9 million related to the write-down of capitalized software, and $1.0 million in disposal of fixed assets. Store Consolidation Plan. During 2019, we closed 88 Rent-A-Center Business stores, resulting in pre-tax charges of $3.7 million in lease impairment charges, $2.3 million in other miscellaneous shutdown and holding costs, $0.9 million in disposal of fixed assets, and $0.4 million in severance and other payroll-related costs. During 2018, we closed 138 Rent-A-Center Business stores and 9 locations in Mexico, resulting in pre-tax charges of $11.2 million , consisting of $8.1 million in lease obligation costs, $1.6 million in disposal of fixed assets, $1.3 million in other miscellaneous shutdown costs, and $0.2 million in severance and other payroll-related cost. Vintage Settlement. On April 22, 2019, we agreed to settle (the "Vintage Settlement") all litigation with Vintage Rodeo Parent, LLC, Vintage Rodeo Acquisition, Inc., Vintage Capital Management, LLC (collectively, "Vintage Capital") and B. Riley Financial, Inc. ("B. Riley") relating to our termination of the Agreement and Plan of Merger (the "Merger Agreement") among Vintage Rodeo Parent, LLC, Vintage Rodeo Acquisition, Inc. and Rent-A-Center, Inc. In the Vintage Settlement, we received a payment of $92.5 million in cash in May 2019, of which we retained net pre-tax proceeds of approximately $80 million following payment of all remaining costs, fees and expenses relating to the termination (the "Vintage Settlement Proceeds"). The Vintage Settlement was recorded as a pre-tax gain upon receipt. Merchants Preferred Acquisition. On August 13, 2019, we completed the acquisition of substantially all of the assets of Merchants Preferred, a nationwide virtual lease-to-own provider. In connection with this acquisition, we recorded approximately $1.4 million in acquisition-related expenses during 2019 including expenses related to legal, professional, and banking transaction fees. Sale/Partial Leaseback of Corporate Headquarters. On December 27, 2019, we completed the sale of our corporate headquarters for proceeds of $43.2 million , and entered into a lease agreement for a reduced portion, approximately 60%, of the total square footage of the building. In connection with the sale, we recorded a total gain of approximately $21.8 million in the fourth quarter of 2019. Write-down of Capitalized Software. During 2018 and 2017, we discontinued certain IT software projects and as a result incurred pre-tax charges of $1.2 million and $18.2 million , respectively, related to the write-down of capitalized assets and termination of associated license agreements. Effects of Hurricanes. During the second half of 2018, Hurricane Florence and Michael caused damage in North Carolina, South Carolina, and Florida resulting in pre-tax expenses of approximately $0.6 million for inventory losses, store repair costs, fixed asset write-offs, and employee assistance. During the third quarter of 2017, Hurricanes Harvey, Irma and Maria caused significant damage in the continental United States and surrounding areas, including Texas, Florida, and Puerto Rico, resulting in pre-tax expenses of approximately $4.5 million for inventory losses, store repair costs, fixed asset write-offs, and employee assistance. Approximately $2.1 million of these pre-tax expenses related to Hurricanes Harvey and Irma, while the remaining $2.4 million related to Hurricane Maria. Preferred Lease (previously Acceptance Now) Store Closures. During the first six months of 2017, we closed 319 Preferred Lease staffed locations and 9 Preferred Lease virtual locations, related to the hhgregg bankruptcy and liquidation plan and the Conn's referral contract termination. These closures resulted in pre-tax charges of $19.2 million for the year ended December 31, 2017, consisting primarily of rental merchandise losses, disposal of fixed assets, and other miscellaneous labor and shutdown costs. In addition, we recorded a pre-tax impairment charge of $3.9 million to our intangible assets for our discontinued vendor relationship. Corporate Cost Rationalization. During the first nine months of 2017, we executed a head count reduction that impacted approximately 10% of our field support center workforce. This resulted in pre-tax charges for severance and other payroll-related costs of approximately $3.4 million for the year ended December 31, 2017. Activity with respect to other charges for the years ended December 31, 2018 and 2019 is summarized in the below table: (In thousands) Accrued Charges at December 31, 2017 Charges & Adjustments Payments & Adjustments Accrued Charges at December 31, 2018 Charges & Adjustments Payments & Adjustments Accrued Charges at December 31, 2019 Cash charges: Labor reduction costs $ 1,674 $ 13,321 $ (7,372 ) $ 7,623 $ 3,039 $ (9,924 ) $ 738 Lease obligation costs (1) 2,105 11,952 (9,175 ) 4,882 — (4,882 ) — Contract termination costs — 6,750 (6,750 ) — — — — Other miscellaneous — 2,696 (2,696 ) — 4,615 (4,615 ) — Total cash charges $ 3,779 34,719 $ (25,993 ) $ 12,505 7,654 $ (19,421 ) $ 738 Non-cash charges: Rental merchandise losses 620 — Asset impairments (2) 6,825 9,938 Other (3) 17,160 (78,320 ) Total other charges (gains) $ 59,324 $ (60,728 ) (1) Upon adoption of ASU 2016-02, previously accrued lease obligation costs related to discontinued operations were eliminated and are now reflected as an adjustment to our operating lease right-of-use assets in our condensed consolidated balance sheet. (2) Asset impairments primarily includes impairments of operating lease right-of-use assets and other property assets related to the closure of Rent-A-Center Business stores and our product service centers for the year ended December 31, 2019. Asset impairments for the year ended December 31, 2018, primarily includes capitalized software write-downs and impairment of property assets related to the closure of Rent-A-Center Business stores. (3) Other primarily includes $92.5 million in Vintage Settlement proceeds, $21.8 million gain on the sale of our corporate headquarters, and $1.1 million in insurance proceeds related to the 2017 hurricanes, offset by $21.4 million in incremental legal and professional fees related to the termination of the Merger Agreement and the Merchants Preferred acquisition, $13.0 million for the Blair class action settlement (refer to Note L for additional details), $2.4 million in state tax audit assessments, and $0.3 million in other litigation settlements for the year ended December 31, 2019. Other for the year ended December 31, 2018, primarily includes $18.4 million in incremental legal and advisory fees associated with our strategic review and merger related activities, partially offset by a $1.1 million favorable contract termination settlement. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation [Text Block] | Stock-Based Compensation We maintain long-term incentive plans for the benefit of certain employees and directors. Our plans consist of the Rent-A-Center, Inc. 2006 Long-Term Incentive Plan (the “2006 Plan”), the Rent-A-Center, Inc. 2006 Equity Incentive Plan (the “Equity Incentive Plan”), and the Rent-A-Center 2016 Long-Term Incentive Plan (the "2016 Plan") which are collectively known as the “Plans.” On March 9, 2016, upon the recommendation of the Compensation Committee, the Board adopted, subject to stockholder approval, the 2016 Plan and directed that it be submitted for the approval of the stockholders. On June 2, 2016, the stockholders approved the 2016 Plan. The 2016 Plan authorizes the issuance of a total of 6,500,000 shares of common stock. Any shares of common stock granted in connection with an award of stock options or stock appreciation rights will be counted against this limit as one share and any shares of common stock granted in connection with awards of restricted stock, restricted stock units, deferred stock or similar forms of stock awards other than stock options and stock appreciation rights will be counted against this limit as two shares of common stock for every one share of common stock granted in connection with such awards. No shares of common stock will be deemed to have been issued if (1) such shares covered by the unexercised portion of an option that terminates, expires, or is cancelled or settled in cash or (2) such shares are forfeited or subject to awards that are forfeited, canceled, terminated or settled in cash. In any calendar year, (1) no employee will be granted options and/or stock appreciation rights for more than 800,000 shares of common stock; (2) no employee will be granted performance-based equity awards under the 2016 Plan (other than options and stock appreciation rights), covering more than 800,000 shares of common stock; and (3) no employee will be granted performance-based cash awards for more than $5,000,000. At December 31, 2019 and 2018 , there were 2,556,180 and 2,625,206 shares, respectively, allocated to equity awards outstanding in the 2016 Plan. The 2006 Plan authorizes the issuance of 7,000,000 shares of Rent-A-Center’s common stock that may be issued pursuant to awards granted under the 2006 Plan, of which no more than 3,500,000 shares may be issued in the form of restricted stock, deferred stock or similar forms of stock awards which have value without regard to future appreciation in value of or dividends declared on the underlying shares of common stock. In applying these limitations, the following shares will be deemed not to have been issued: (1) shares covered by the unexercised portion of an option that terminates, expires, or is canceled or settled in cash, and (2) shares that are forfeited or subject to awards that are forfeited, canceled, terminated or settled in cash. At December 31, 2019 and 2018 , there were 450,531 and 1,022,482 shares, respectively, allocated to equity awards outstanding in the 2006 Plan. The 2006 Plan expired in accordance with its terms on March 24, 2016, and all shares remaining available for grant under the 2006 Plan were canceled. We acquired the Equity Incentive Plan (formerly known as the Rent-Way, Inc. 2006 Equity Incentive Plan) in conjunction with our acquisition of Rent-Way in 2006. There were 2,468,461 shares of our common stock reserved for issuance under the Equity Incentive Plan. There were 398,551 and 677,074 shares allocated to equity awards outstanding in the Equity Incentive Plan at December 31, 2019 and 2018 , respectively. The Equity Incentive Plan expired in accordance with its terms on January 13, 2016, and all shares remaining available for grant under the Equity Incentive Plan were canceled. Options granted to our employees generally become exercisable over a period of 1 to 4 years from the date of grant and may be exercised up to a maximum of 10 years from the date of grant. Options granted to directors were immediately exercisable. We grant restricted stock units to certain employees that vest after a three-year service requirement has been met. We recognize expense for these awards using the straight-line method over the requisite service period based on the number of awards expected to vest. We also grant performance-based restricted stock units that vest between 0% and 200% depending on our stock performance against an index using a total shareholder return formula established at the date of grant for the subsequent three-year period. We record expense for these awards over the requisite service period, net of the expected forfeiture rate, since the employee must maintain employment to vest in the award. Stock-based compensation expense for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Stock options $ 1,273 $ 1,388 $ 2,023 Restricted share units 5,685 4,573 1,873 Total stock-based compensation expense 6,958 5,961 3,896 Tax benefit recognized in the statements of earnings 1,562 1,739 1,442 Stock-based compensation expense, net of tax $ 5,396 $ 4,222 $ 2,454 We issue new shares of stock to satisfy option exercises and the vesting of restricted stock units. The fair value of unvested options that we expect to result in compensation expense was approximately $3.5 million with a weighted average number of years to vesting of 2.93 at December 31, 2019 . Information with respect to stock option activity related to the Plans for the year ended December 31, 2019 follows: Equity Awards Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) Balance outstanding at January 1, 2019 2,468,900 $ 19.37 Granted 381,198 22.53 Exercised (551,008 ) 12.36 Forfeited (224,396 ) 10.54 Expired (239,832 ) 30.96 Balance outstanding at December 31, 2019 1,834,862 $ 21.70 6.12 $ 4,464 Exercisable at December 31, 2019 973,036 $ 27.60 4.15 $ 4,469 The intrinsic value of options exercised during the years ended December 31, 2019 , 2018 , and 2017 was $5,137.0 thousand , $418.9 thousand , and $53.3 thousand , respectively, resulting in tax benefits of $1,798.0 thousand , $146.6 thousand , and $18.7 thousand , respectively, which are reflected as an outflow from operating activities and an inflow from financing activities in the consolidated statements of cash flows. The weighted average fair values of the options granted under the Plans were calculated using the Black-Scholes method. The weighted average grant date fair value and weighted average assumptions used in the option pricing models are as follows: Year Ended December 31, 2019 2018 2017 Weighted average grant date fair value $ 8.92 $ 3.80 $ 2.92 Weighted average risk free interest rate 2.07 % 2.51 % 1.78 % Weighted average expected dividend yield 1.28 % — % 3.03 % Weighted average expected volatility 50.93 % 49.58 % 45.44 % Weighted average expected life (in years) 4.63 4.63 4.50 Information with respect to non-vested restricted stock unit activity follows: Restricted Awards Outstanding Weighted Average Grant Date Fair Value Balance outstanding at January 1, 2019 1,855,862 $ 8.82 Granted 512,567 28.24 Vested (351,469 ) 10.58 Forfeited (446,560 ) 10.19 Balance outstanding at December 31, 2019 1,570,400 $ 14.38 Restricted stock units are valued using the closing price reported by the Nasdaq Global Select Market on the trading day immediately preceding the day of the grant. Unrecognized compensation expense for unvested restricted stock units at December 31, 2019 , was approximately $11.4 million expected to be recognized over a weighted average period of 1.97 years. |
Deferred Compensation Plan
Deferred Compensation Plan | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Compensation Plan [Abstract] | |
Deferred Compensation Plan [Text Block] | Deferred Compensation Plan The Rent-A-Center, Inc. Deferred Compensation Plan (the “Deferred Compensation Plan”) is an unfunded, nonqualified deferred compensation plan for a select group of our key management personnel and highly compensated employees. The Deferred Compensation Plan first became available to eligible employees in July 2007, with deferral elections taking effect as of August 3, 2007. The Deferred Compensation Plan allows participants to defer up to 50% of their base compensation and up to 100% of any bonus compensation. Participants may invest the amounts deferred in measurement funds that are the same funds offered as the investment options in the Rent-A-Center, Inc. 401(k) Retirement Savings Plan. We may make discretionary contributions to the Deferred Compensation Plan, which are subject to a three-year graded vesting schedule based on the participant’s years of service with us. We are obligated to pay the deferred compensation amounts in the future in accordance with the terms of the Deferred Compensation Plan. Assets and associated liabilities of the Deferred Compensation Plan are included in prepaid and other assets and accrued liabilities in our consolidated balance sheets. For the years ended December 31, 2019 , 2018 and 2017 , we made matching cash contributions of approximately $150 thousand , $50 thousand and $100 thousand , respectively, which represents 50% of the employees’ contributions to the Deferred Compensation Plan up to an amount not to exceed 6% of each employee's respective compensation. No other discretionary contributions were made for the years ended December 31, 2019 , 2018 and 2017 . The deferred compensation plan assets and liabilities were approximately $9.7 million and $8.7 million as of December 31, 2019 and 2018 , respectively. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2019 | |
401(k) Plan [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 401(k) Plan We sponsor a defined contribution plan under Section 401(k) of the Internal Revenue Code for certain employees who have completed at least three months of service. Employees may elect to contribute up to 50% of their eligible compensation on a pre-tax basis, subject to limitations. We may make discretionary contributions to the 401(k) plan. Employer matching contributions are subject to a three-year graded vesting schedule based on the participant's years of service with us. For the years ended December 31, 2019 , 2018 and 2017 , we made matching cash contributions of $6.6 million , $6.3 million and $7.0 million , respectively, which represents 50% of the employees’ contributions to the 401(k) plan up to an amount not to exceed 6% of each employee's respective compensation. Employees are permitted to elect to purchase our common stock as part of their 401(k) plan. As of December 31, 2019 and 2018 , 8.2% and 6.2% , respectively, of the total plan assets consisted of our common stock. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value We follow a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values, in determining the fair value of our non-financial assets and non-financial liabilities, which consist primarily of goodwill. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. There were no changes in the methods and assumptions used in measuring fair value during the period. At December 31, 2019 , our financial instruments include cash and cash equivalents, receivables, payables, and outstanding borrowings against our ABL Credit Facility and Term Loan Facility. The carrying amount of cash and cash equivalents, receivables and payables approximates fair value at December 31, 2019 and December 31, 2018 , because of the short maturities of these instruments. In addition, the interest rates on our Term Loan Facility and ABL Credit Facility are variable and, therefore, the carrying value of outstanding borrowings approximates their fair value. |
Stock Repurchase Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2019 | |
Stock Repurchase Plan [Abstract] | |
Stock repurchase plan [Text Block] | Stock Repurchase Plan Under our current common stock repurchase program, our Board of Directors has authorized the purchase, from time to time, in the open market and privately negotiated transactions, of up to an aggregate of $1.25 billion of Rent-A-Center common stock. We have repurchased a total of 37,053,383 shares of Rent-A-Center common stock for an aggregate purchase price of $996.1 million as of December 31, 2019 . 58,730 shares were repurchased during 2019 and no shares were repurchased during 2018 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information [Text Block] | 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 certain basic product categories: furniture, consumer electronics, appliances, computers, and accessories. Smartphones are also offered in our company owned stores and franchise locations. In addition, in the Rent-A-Center business segment, we have recently expanded into other product categories including, tools, tires, jewelry and other accessories. We report financial operating performance under four operating segments. To better reflect the Company's current strategic focus, our retail partner business operations are now reported as the Preferred Lease segment (formerly Acceptance Now), which includes our virtual, staffed and hybrid business models; and our Rent-A-Center Business segment (formerly the Core U.S.) segment, which operates our company-owned stores and e-commerce platform through rentacenter.com. In addition we report operating results for our Mexico and Franchising segments. Reportable segments and their respective operations are defined as follows. Our Rent-A-Center Business segment primarily operates lease-to-own stores in the United States 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 44 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 Preferred Lease segment, which operates in the United States and Puerto Rico, and includes the operations of the recently acquired Merchants Preferred, generally offers the lease-to-own transactions to consumers who do not qualify for financing from the traditional retailer. Our Preferred Lease operating model is highly agile and dynamic because we can open and close locations quickly and efficiently. Generally, our Preferred Lease staffed locations consist of an area with a computer, desk and chairs. We occupy the space without charge by agreement with each retailer. In our virtual locations, transactions are initiated through an electronic portal accessible by retail partners on their store computers. Accordingly, capital expenditures with respect to new Preferred Lease locations are minimal. The transaction offered at our Preferred Lease locations (excluding virtual) is generally similar to that of the Rent-A-Center Business segment; however, we pay the retail price for merchandise purchased from our retail partners and subsequently leased to the customer. In addition, the majority of the customers in this segment enter into monthly rather than weekly agreements. Under the virtual business model, revenues are earned prior to the renal payment due date. Therefore, revenue is accrued prior to receipt of the rental payment, net of estimated returns and uncollectible renewal payments. Segment assets include cash, rental merchandise, property assets, goodwill and other intangible assets. Our Mexico segment currently consists of our company-owned lease-to-own stores in Mexico. The nature of this segment's operations and assets are the same as our Rent-A-Center Business 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 lease-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, trade receivables, property assets and intangible assets. Segment information as of and for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Revenues Rent-A-Center Business $ 1,800,486 $ 1,855,712 $ 1,835,422 Preferred Lease 749,260 722,562 797,987 Mexico 53,960 49,613 47,005 Franchising 66,146 32,578 22,126 Total revenues $ 2,669,852 $ 2,660,465 $ 2,702,540 Year Ended December 31, (In thousands) 2019 2018 2017 Gross profit Rent-A-Center Business $ 1,255,153 $ 1,299,809 $ 1,276,212 Preferred Lease 333,798 339,616 400,002 Mexico 37,488 34,364 32,592 Franchising 17,632 14,379 9,736 Total gross profit $ 1,644,071 $ 1,688,168 $ 1,718,542 Year Ended December 31, (In thousands) 2019 2018 2017 Operating profit (loss) Rent-A-Center Business $ 235,964 $ 147,787 $ 86,196 Preferred Lease 83,066 93,951 48,618 Mexico 5,357 2,605 (260 ) Franchising 7,205 4,385 5,081 Total segments 331,592 248,728 139,635 Corporate (77,733 ) (192,591 ) (202,694 ) Total operating profit (loss) $ 253,859 $ 56,137 $ (63,059 ) Year Ended December 31, (In thousands) 2019 2018 2017 Depreciation and amortization Rent-A-Center Business $ 20,822 $ 25,566 $ 31,070 Preferred Lease 1,533 1,677 2,498 Mexico 401 1,006 1,973 Franchising 45 172 177 Total segments 22,801 28,421 35,718 Corporate 38,303 40,525 38,921 Total depreciation and amortization $ 61,104 $ 68,946 $ 74,639 Year Ended December 31, (In thousands) 2019 2018 2017 Capital expenditures Rent-A-Center Business $ 10,255 $ 17,173 $ 26,506 Preferred Lease 141 203 2,723 Mexico 172 295 124 Total segments 10,568 17,671 29,353 Corporate 10,589 10,291 36,107 Total capital expenditures $ 21,157 $ 27,962 $ 65,460 December 31, (In thousands) 2019 2018 2017 On rent rental merchandise, net Rent-A-Center Business $ 411,482 $ 424,829 $ 408,993 Preferred Lease 268,845 242,978 278,443 Mexico 16,943 16,001 14,367 Total on rent rental merchandise, net $ 697,270 $ 683,808 $ 701,803 December 31, (In thousands) 2019 2018 2017 Held for rent rental merchandise, net Rent-A-Center Business $ 131,086 $ 117,294 $ 156,039 Preferred Lease 1,254 1,207 4,940 Mexico 6,078 5,161 6,209 Total held for rent rental merchandise, net $ 138,418 $ 123,662 $ 167,188 December 31, (In thousands) 2019 2018 2017 Assets by segment Rent-A-Center Business $ 953,151 $ 714,914 $ 776,296 Preferred Lease 357,859 312,151 350,970 Mexico 33,707 29,321 33,529 Franchising 11,095 4,287 3,802 Total segments 1,355,812 1,060,673 1,164,597 Corporate 226,986 336,244 256,184 Total assets $ 1,582,798 $ 1,396,917 $ 1,420,781 December 31, (In thousands) 2019 2018 2017 Assets by country United States $ 1,547,895 $ 1,366,405 $ 1,383,004 Mexico 33,707 29,321 33,529 Canada 1,196 1,191 4,248 Total assets $ 1,582,798 $ 1,396,917 $ 1,420,781 Year Ended December 31, (In thousands) 2019 2018 2017 Rentals and fees by inventory category Furniture and accessories $ 982,644 $ 962,241 $ 921,159 Consumer electronics 358,619 410,184 459,942 Appliances 346,668 344,548 351,893 Computers 103,171 120,756 124,158 Smartphones 62,948 62,592 57,927 Other products and services 370,352 344,539 352,662 Total rentals and fees $ 2,224,402 $ 2,244,860 $ 2,267,741 Year Ended December 31, (In thousands) 2019 2018 2017 Revenue by country United States $ 2,615,892 $ 2,610,432 $ 2,654,819 Mexico 53,960 49,612 47,005 Canada — 421 716 Total revenues $ 2,669,852 $ 2,660,465 $ 2,702,540 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Common Share Summarized basic and diluted earnings per common share were calculated as follows: Year Ended December 31, (In thousands, except per share data) 2019 2018 2017 Numerator: Net earnings $ 173,546 $ 8,492 $ 6,653 Denominator: Weighted-average shares outstanding 54,325 53,471 53,282 Effect of dilutive stock awards 1,630 1,071 562 Weighted-average dilutive shares 55,955 54,542 53,844 Basic earnings per share $ 3.19 $ 0.16 $ 0.12 Diluted earnings per share $ 3.10 $ 0.16 $ 0.12 Anti-dilutive securities excluded from diluted earnings per common share: Anti-dilutive restricted share units — — — Anti-dilutive performance share units 290 200 329 Anti-dilutive stock options 1,109 1,498 2,554 |
Unaudited Quarterly Data
Unaudited Quarterly Data | 12 Months Ended |
Dec. 31, 2019 | |
Unaudited Quarterly Data [Abstract] | |
Unaudited Quarterly Data [Text Block] | Unaudited Quarterly Data Summarized quarterly financial data for the years ended December 31, 2019 , and 2018 is as follows: (In thousands, except per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Ended December 31, 2019 Revenues $ 696,694 $ 655,925 $ 649,371 $ 667,862 Gross profit 424,866 408,071 399,996 411,138 Operating profit 17,349 129,829 38,847 67,834 Net earnings 7,323 94,455 31,277 40,491 Basic earnings per common share $ 0.14 $ 1.74 $ 0.57 $ 0.74 Diluted earnings per common share $ 0.13 $ 1.70 $ 0.56 $ 0.72 (In thousands, except per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Ended December 31, 2018 Revenues $ 698,043 $ 655,730 $ 644,942 $ 661,750 Gross profit 436,978 423,886 407,740 419,564 Operating (loss) profit (10,270 ) 27,151 25,632 13,624 Net (loss) earnings (19,843 ) 13,753 12,918 1,664 Basic (loss) earnings per common share $ (0.37 ) $ 0.26 $ 0.24 $ 0.03 Diluted (loss) earnings per common share $ (0.37 ) $ 0.25 $ 0.24 $ 0.03 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Accounting Policies Nature of Operations and Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Accounting Policies [Abstract] | |
Principles of Consolidation and Nature of Operations [Policy Text Block] | Principles of Consolidation and Nature of Operations These financial statements include the accounts of Rent-A-Center, Inc. and its direct and indirect subsidiaries. All intercompany accounts and transactions have been eliminated. Unless the context indicates otherwise, references to “Rent-A-Center” refer only to Rent-A-Center, Inc., the parent, and references to “we,” “us” and “our” refer to the consolidated business operations of Rent-A-Center and any or all of its direct and indirect subsidiaries. We report four operating segments: Rent-A-Center Business, Preferred Lease, Mexico and Franchising. Our Rent-A-Center Business segment consists of company-owned lease-to-own stores in the United States and Puerto Rico that lease household durable goods to customers on a lease-to-own basis. We also offer merchandise on an installment sales basis in certain of our stores under the names “Get It Now” and “Home Choice.” At December 31, 2019 , we operated 1,973 company-owned stores nationwide and in Puerto Rico, including 44 retail installment sales stores. Our Preferred Lease segment, which operates in the United States and Puerto Rico, and includes the operations of the recently acquired Merchants Preferred, generally offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks located within such retailer's locations, including staffed options, un-manned or virtual options, or a combination of the two (the hybrid model). Those kiosks can be staffed by an Preferred Lease employee (staffed locations) or employ a virtual solution where customers, either directly or with the assistance of a representative of the third-party retailer, initiate the lease-to-own transaction online in the retailers' locations using our virtual solutions (virtual locations). At December 31, 2019 , we operated 998 Preferred Lease staffed locations. Our Mexico segment consists of our company-owned lease-to-own stores in Mexico that lease household durable goods to customers on a lease-to-own basis. At December 31, 2019 , we operated 123 stores in Mexico. Rent-A-Center Franchising International, Inc., an indirect wholly-owned subsidiary of Rent-A-Center, is a franchisor of lease-to-own stores. At December 31, 2019 , Franchising had 372 franchised stores operating in 33 states. Our Franchising segment'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 lease-to-own transaction. The balance of our Franchising segment's revenue is generated primarily from royalties based on franchisees' monthly gross revenues. |
Rental Merchandise [Policy Text Block] | Rental Merchandise Rental merchandise is carried at cost, net of accumulated depreciation. Depreciation for merchandise is generally provided using the income forecasting method, which is intended to match as closely as practicable the recognition of depreciation expense with the consumption of the rental merchandise, and assumes no salvage value. The consumption of rental merchandise occurs during periods of rental and directly coincides with the receipt of rental revenue over the rental purchase agreement period. Under the income forecasting method, merchandise held for rent is not depreciated and merchandise on rent is depreciated in the proportion of rents received to total rents provided in the rental contract, which is an activity-based method similar to the units of production method. We depreciate merchandise (including computers and tablets) that is held for rent for at least 180 consecutive days using the straight-line method over a period generally not to exceed 18 months . Beginning in 2016, smartphones are depreciated over an 18 -month straight-line basis beginning with the earlier of on rent or 90 consecutive days on held for rent. Rental merchandise which is damaged and inoperable is expensed when such impairment occurs. If a customer does not return the merchandise or make payment, the remaining book value of the rental merchandise associated with delinquent accounts is generally charged off on or before the 90 th day following the time the account became past due in the Rent-A-Center Business and Mexico segments, and during the month following the 150 th day in the Preferred Lease segment. We maintain a reserve for these expected expenses. In addition, any minor repairs made to rental merchandise are expensed at the time of the repair. |
Cash Equivalents [Policy Text Block] | Cash Equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. |
Revenues [Policy Text Block] | Revenues Merchandise is rented to customers pursuant to rental purchase agreements which provide for weekly, semi-monthly or monthly rental terms with non-refundable rental payments. Generally, the customer has the right to acquire title either through a purchase option or through payment of all required rentals. Rental revenue and fees are recognized over the rental term and merchandise sales revenue is recognized when the customer exercises the purchase option and pays the cash price due. Cash received prior to the period in which it should be recognized is deferred and recognized according to the rental term. Revenue is accrued for uncollected amounts due based on historical collection experience. However, the total amount of the rental purchase agreement is not accrued because the customer can terminate the rental agreement at any time and we cannot enforce collection for non-payment of future rents. Revenues from the sale of merchandise in our retail installment stores are recognized when the installment note is signed, the customer has taken possession of the merchandise and collectability is reasonably assured. Revenues from the sale of rental merchandise are recognized upon shipment of the merchandise to the franchisee. Franchise royalty income and fee revenue is recognized upon completion of substantially all services and satisfaction of all material conditions required under the terms of the franchise agreement. Initial franchise fees charged to franchisees for new or converted franchise stores are recognized on a straight-line basis over the term of the franchise agreement. |
Receivables and Allowance for Doubtful Accounts [Policy Text Block] | Receivables and Allowance for Doubtful Accounts The installment notes receivable associated with the sale of merchandise at our Get It Now and Home Choice stores generally consists of the sales price of the merchandise purchased and any additional fees for services the customer has chosen, less the customer’s down payment. No interest is accrued and interest income is recognized each time a customer makes a payment, generally on a monthly basis. We have established an allowance for doubtful accounts for our installment notes receivable. Our policy for determining the allowance is based on historical loss experience, as well as the results of management’s review and analysis of the payment and collection of the installment notes receivable within the previous year. We believe our allowance is adequate to absorb any known or probable losses. Our policy is to charge off installment notes receivable that are 120 days or more past due. Charge-offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previously charged off balances are applied as an increase to the allowance for doubtful accounts. Our trade and notes receivables consist primarily of amounts due from our rental customers for renewal and uncollected rental payments; Franchising receivables; and other corporate related receivables. We maintain allowances against our rental customer receivable balances, primarily related to expected merchandise returns and uncollectible payments due from our virtual rental customers. The majority of our Franchising trade and notes receivables relate to amounts due from franchisees for inventory purchases, earned royalties and other obligations. Credit is extended based on an evaluation of a franchisee’s financial condition and collateral is generally not required. Trade receivables are generally due within 30 days and are reported as amounts due from franchisees, net of an allowance for doubtful accounts. Accounts that are outstanding longer than the contractual payment terms are considered past due. Franchising determines its allowance by considering a number of factors, including the length of time receivables are past due, previous loss history, the franchisee’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. Franchising writes off trade receivables that are 90 or more days past due and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. |
Property Assets and Related Depreciation [Policy Text Block] | Property Assets and Related Depreciation Furniture, equipment and vehicles are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the respective assets (generally 5 years ) by the straight-line method. Leasehold improvements are amortized over the useful life of the asset or the initial term of the applicable leases by the straight-line method, whichever is shorter. We have incurred costs to develop computer software for internal use. We capitalize the costs incurred during the application development stage, which includes designing the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary stages along with post-implementation stages of internally developed software are expensed as incurred. Internally developed software costs, once placed in service, are amortized over various periods up to 10 years . We incur repair and maintenance expenses on our vehicles and equipment. These amounts are recognized when incurred, unless such repairs significantly extend the life of the asset, in which case we amortize the cost of the repairs for the remaining useful life of the asset utilizing the straight-line method. |
Goodwill and Other Intangible Assets [Policy Text Block] | Goodwill and Other Intangible Assets We record goodwill when the consideration paid for an acquisition exceeds the fair value of the identifiable net tangible and identifiable intangible assets acquired. Goodwill is not subject to amortization but must be periodically evaluated for impairment. Impairment occurs when the carrying value of goodwill is not recoverable from future cash flows. We perform an assessment of goodwill for impairment at the reporting unit level annually as of October 1, or when events or circumstances indicate that impairment may have occurred. Our reporting units are our reportable operating segments. Factors which could necessitate an interim impairment assessment include a sustained decline in our stock price, prolonged negative industry or economic trends and significant underperformance relative to expected historical or projected future operating results. We determine the fair value of each reporting unit using methodologies which include the present value of estimated future cash flows and comparisons of multiples of enterprise values to earnings before interest, taxes, depreciation and amortization. The analysis is based upon available information regarding expected future cash flows and discount rates. Discount rates are based upon our cost of capital. We use a two-step approach to assess goodwill impairment. If the fair value of the reporting unit exceeds its carrying value, then the goodwill is not deemed impaired. If the carrying value of the reporting unit exceeds fair value, we perform a second analysis to measure the fair value of all assets and liabilities within the reporting unit, and if the carrying value of goodwill exceeds its implied fair value, goodwill is considered impaired. The amount of the impairment is the difference between the carrying value of goodwill and the implied fair value, which is calculated as if the reporting unit had been acquired and accounted for as a business combination. As an alternative to this annual impairment testing, we may perform a qualitative assessment for impairment if it believes it is not more likely than not that the carrying value of a reporting unit's net assets exceeds the reporting unit's fair value. At December 31, 2019 , the amount of goodwill attributable to the Rent-A-Center Business and Preferred Lease segments was approximately $1.5 million and $68.7 million , respectively. We currently do not have goodwill balances attributable to our Mexico or Franchising segment. Acquired customer relationships are amortized over a 21 -month period, non-compete agreements are amortized over the contractual life of the agreements, vendor relationships are amortized over a 7 or 15 year period, and other intangible assets are amortized over the life of the asset. Intangible assets are amortized using methods that we believe reflect the pattern in which the economic benefits of the related asset are consumed, including using a straight-line method. |
Accounting for Impairment of Long-Lived Assets [Policy Text Block] | Accounting for Impairment of Long-Lived Assets We evaluate all long-lived assets, including intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Impairment is recognized when the carrying amounts of such assets cannot be recovered by the undiscounted net cash flows they will generate. |
Self-Insurance Liabilities [Policy Text Block] | Self-Insurance Liabilities We have self-insured retentions with respect to losses under our workers' compensation, general liability, vehicle liability and health insurance programs. We establish reserves for our liabilities associated with these losses by obtaining forecasts for the ultimate expected losses and estimating amounts needed to pay losses within our self-insured retentions. We make assumptions on our liabilities within our self-insured retentions using actuarial loss forecasts, company-specific development factors, general industry loss development factors, and third-party claim administrator loss estimates which are based on known facts surrounding individual claims. These assumptions incorporate expected increases in health care costs. Periodically, we reevaluate our estimate of liability within our self-insured retentions. At that time, we evaluate the adequacy of our reserves by comparing amounts reserved on our balance sheet for anticipated losses to our updated actuarial loss forecasts and third-party claim administrator loss estimates, and make adjustments to our reserves as needed. |
Foreign Currency Translation [Policy Text Block] | Foreign Currency Translation The functional currency of our foreign operations is the applicable local currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the current rate of exchange on the last day of the reporting period. Revenues and expenses are generally translated at a daily exchange rate and equity transactions are translated using the actual rate on the day of the transaction. |
Other Comprehensive income (Loss) [Policy Text Block] | Other Comprehensive Income (Loss) Other comprehensive income (loss) is comprised exclusively of our foreign currency translation adjustment. |
Income Taxes [Policy Text Block] | Income Taxes We record deferred taxes for temporary differences between the tax and financial reporting bases of assets and liabilities at the enacted tax rate expected to be in effect when those temporary differences are expected to be recovered or settled. Income tax accounting requires management to make estimates and apply judgments to events that will be recognized in one period under rules that apply to financial reporting in a different period in our tax returns. In particular, judgment is required when estimating the value of future tax deductions, tax credits and net operating loss carryforwards (NOLs), as represented by deferred tax assets. We evaluate the recoverability of these future tax deductions and credits by assessing the future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates. We use our historical experience and our short- and long-range business forecasts to provide insight and assist us in determining recoverability. When it is determined the recovery of all or a portion of a deferred tax asset is not likely, a valuation allowance is established. We include NOLs in the calculation of deferred tax assets. NOLs are utilized to the extent allowable due to the provisions of the Internal Revenue Code of 1986, as amended, and relevant state statutes. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon the ultimate settlement with the relevant tax authority. A number of years may elapse before a particular matter, for which we have recorded a liability, is audited and effectively settled. We review our tax positions quarterly and adjust our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position, or when more information becomes available. We classify accrued interest and penalties related to unrecognized tax benefits as interest expense and general & administrative expense, respectively. |
Sales Tax [Policy Text Block] | Sales Taxes We apply the net basis for sales taxes imposed on our goods and services in our consolidated statements of operations. We are required by the applicable governmental authorities to collect and remit sales taxes. Accordingly, such amounts are charged to the customer, collected and remitted directly to the appropriate jurisdictional entity. |
Earnings Per Common Share [Policy Text Block] | Earnings Per Common Share Basic earnings per common share are based upon the weighted average number of common shares outstanding during each period presented. Diluted earnings per common share are based upon the weighted average number of common shares outstanding during the period, plus, if dilutive, the assumed exercise of stock options and vesting of stock awards at the beginning of the year, or for the period outstanding during the year for current year issuances. |
Advertising Costs [Policy Text Block] | Advertising Costs Costs incurred for producing and communicating advertising are expensed when incurred. Advertising expense was $58.8 million , $74.6 million and $86.1 million , for the years ended December 31, 2019 , 2018 and 2017 , respectively. Advertising expense is net of vendor allowances of $21.2 million , $17.1 million , and $14.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Share-based Compensation [Policy Text Block] | Stock-Based Compensation We maintain long-term incentive plans for the benefit of certain employees and directors, which are described more fully in Note N . We recognize share-based payment awards to our employees and directors at the estimated fair value on the grant date. Determining the fair value of any share-based award requires information about several variables that include, but are not limited to, expected stock volatility over the term of the award, expected dividend yields, and the risk free interest rate. We base the expected term on historical exercise and post-vesting employment-termination experience, and expected volatility on historical realized volatility trends. In addition, all stock-based compensation expense is recorded net of an estimated forfeiture rate. The forfeiture rate is based upon historical activity and is analyzed at least annually as actual forfeitures occur. Compensation costs are recognized net of estimated forfeitures over the requisite service period on a straight-line basis. We issue new shares to settle stock awards. Stock options are valued using a Black-Scholes pricing model. Time-vesting restricted stock units are valued using the closing price on the Nasdaq Global Select Market on the day before the grant date, adjusted for any provisions affecting fair value, such as the lack of dividends or dividend equivalents during the vesting period. Performance-based restricted stock units will vest in accordance with a total shareholder return formula, and are valued by a third-party valuation firm using Monte Carlo simulations. Stock-based compensation expense is reported within general and administrative expenses in the consolidated statements of operations. |
Reclassifications [Policy Text Block] | Reclassifications Certain reclassifications may be made to the reported amounts for prior periods to conform to the current period presentation. These reclassifications have no impact on net earnings or earnings per share in any period. |
Use of Estimates [Policy Text Block] | Use of Estimates In preparing financial statements in conformity with U.S. generally accepted accounting principles, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent losses and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In applying accounting principles, we must often make individual estimates and assumptions regarding expected outcomes or uncertainties. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates. |
Newly Adopted Accounting Pronouncements [Text Block] | Newly Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) , which clarifies existing accounting literature relating to how and when a company recognizes revenue. We adopted ASU 2014-09 and all related amendments beginning January 1, 2018, using the modified retrospective adoption method. We recognized the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Under ASC 606, initial franchise fees charged to franchisees for new stores are recognized over the term of the franchise agreement, rather than when they are paid by the franchisee, upon the opening of a new location. Furthermore, franchise advertising fees are presented on a gross basis, as revenue, in the consolidated statement of operations, rather than net of operating expenses in the consolidated statement of operations. Impacts resulting from adoption were not material to the consolidated statement of operations. See additional descriptions of our revenues in Note B . The cumulative effect of the changes made to our consolidated balance sheet for the adoption of ASC 606 was a reduction to accrued liabilities of $1.7 million , an increase to deferred tax liability of $0.4 million , and an offsetting $1.3 million increase to 2018 opening retained earnings. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which replaces existing accounting literature relating to the classification of, and accounting for, leases. Under ASU 2016-02, a company must recognize for all leases (with the exception of leases with terms of 12 months or less) a liability representing a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset representing the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting is largely unchanged, with certain improvements to align lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Adoption of ASU 2016-02 requires the use of a modified retrospective transition method to measure leases at the beginning of the earliest period presented in the consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, allowing companies to apply a transition method for adoption of the new standard as of the adoption date, with recognition of any cumulative-effects as adjustments to the opening balance of retained earnings in the period of adoption. We adopted these ASUs beginning January 1, 2019 and elected the transition method under ASU 2018-11. Our lease-to-own agreements, which comprise the majority of our annual revenue, fall within the scope of ASU 2016-02 under lessor accounting; however, the new standard does not significantly affect the timing of recognition or presentation of revenue for our rental contracts. As a lessee, the new standard affected a substantial portion of our lease contracts. As of December 31, 2019 , we have $281.6 million operating lease right-of-use assets and $285.0 million operating lease liabilities in our condensed consolidated balance sheet. Upon adoption, we identified impairment losses related to closure of our product service centers and Rent-A-Center Business stores resulting in a cumulative-effect decrease of $2.0 million , net of tax, to our January 1, 2019 retained earnings balance. There were no significant effects to our condensed consolidated statements of operations or condensed consolidated statements of cash flows. We elected a package of optional practical expedients in our adoption of the new standard, including the option to retain the current classification for leases entered into prior to the date of adoption; the option not to reassess initial direct costs for capitalization for leases entered into prior to the date of adoption; and the option not to separate lease and non-lease components for our lease-to-own agreements as a lessor, and our real estate, and certain categories of equipment leases, as a lessee. In conjunction with the adoption of the new lease accounting standard, we implemented a new back-office lease administration and accounting system to support the new accounting and disclosure requirements as a lessee. In addition, we implemented changes to our previous accounting policies, processes, and internal controls to ensure compliance with the new standard. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a company to reclassify to retained earnings the disproportionate income tax effects of the Tax Act on items with accumulated other comprehensive income that the FASB refers to as having been stranded in accumulated other comprehensive income. The adoption of ASU 2018-02 was required for us beginning January 1, 2019. We elected not to exercise the option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act (or portion thereof) is recorded. |
Revenues Revenues (Tables)
Revenues Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables disaggregates our revenue: Twelve Months Ended December 31, 2019 Rent-A-Center Business Preferred Lease Mexico Franchising Consolidated (In thousands) Unaudited Store Rentals and fees $ 1,585,997 $ 587,502 $ 50,903 $ — $ 2,224,402 Merchandise sales 140,372 161,235 3,023 — 304,630 Installment sales 70,434 — — — 70,434 Other 3,683 523 34 555 4,795 Total store revenues 1,800,486 749,260 53,960 555 2,604,261 Franchise Merchandise sales — — — 49,135 49,135 Royalty income and fees — — — 16,456 16,456 Total revenues $ 1,800,486 $ 749,260 $ 53,960 $ 66,146 $ 2,669,852 Twelve Months Ended December 31, 2018 Rent-A-Center Business Preferred Lease Mexico Franchising Consolidated (In thousands) Unaudited Store Rentals and fees $ 1,640,839 $ 557,592 $ 46,429 $ — $ 2,244,860 Merchandise sales 136,878 164,432 3,145 — 304,455 Installment sales 69,572 — — — 69,572 Other 8,423 538 39 — 9,000 Total store revenues 1,855,712 722,562 49,613 — 2,627,887 Franchise Merchandise sales — — — 19,087 19,087 Royalty income and fees — — — 13,491 13,491 Total revenues $ 1,855,712 $ 722,562 $ 49,613 $ 32,578 $ 2,660,465 |
Receivables and Allowance for_2
Receivables and Allowance for Doubtful Accounts Receivables and Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables and Allowance for Doubtful Accounts [Abstract] | |
Receivables [Table Text Block] | Receivables consist of the following: December 31, (In thousands) 2019 2018 Installment sales receivable $ 56,370 $ 54,746 Trade and notes receivables 33,354 19,782 Total receivables 89,724 74,528 Less allowance for doubtful accounts (5,601 ) (4,883 ) Total receivables, net of allowance for doubtful accounts $ 84,123 $ 69,645 |
Changes in allowance for doubtful accounts [Table Text Block] | Changes in our allowance for doubtful accounts are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Beginning allowance for doubtful accounts $ 4,883 $ 4,167 $ 3,593 Estimated uncollectible payments and returns (1)(2) 15,077 14,610 15,702 Accounts written off, net of recoveries (14,359 ) (13,894 ) (15,128 ) Ending allowance for doubtful accounts $ 5,601 $ 4,883 $ 4,167 (1) Uncollectible installment payments, franchisee obligations, and other corporate receivables, are recognized in other store operating expenses in our condensed consolidated financial statements. (2) Uncollectible rental payments and returns are recognized as a reduction to rental revenue in our condensed consolidated financial statements. |
Rental Merchandise Rental Merch
Rental Merchandise Rental Merchandise (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Rental Merchandise [Abstract] | |
Rental Merchandise [Table Text Block] | Rental Merchandise December 31, (In thousands) 2019 2018 On rent Cost $ 1,112,130 $ 1,110,968 Less accumulated depreciation (414,860 ) (427,160 ) Net book value, on rent $ 697,270 $ 683,808 Held for rent Cost $ 163,636 $ 147,300 Less accumulated depreciation (25,218 ) (23,638 ) Net book value, held for rent $ 138,418 $ 123,662 |
Property Assets Property Assets
Property Assets Property Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Assets [Abstract] | |
Property Assets [Table Text Block] | Property Assets December 31, (In thousands) 2019 2018 Furniture and equipment $ 475,431 $ 512,056 Building and leasehold improvements 207,620 251,975 Land and land improvements — 6,737 Transportation equipment 567 3,765 Construction in progress 5,346 3,540 Total property assets 688,964 778,073 Less accumulated depreciation (522,826 ) (551,750 ) Total property assets, net of accumulated depreciation $ 166,138 $ 226,323 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating lease costs [Table Text Block] | Total operating lease costs by expense type: Twelve Months Ended (in thousands) December 31, 2019 Operating lease cost included in other store expenses (1) $ 148,314 Operating lease cost included in other charges 9,222 Sublease receipts (7,683 ) Total operating lease charges $ 149,853 (1) Includes short-term lease costs, which are not significant. Supplemental cash flow information related to leases: Twelve Months Ended (in thousands) December 31, 2019 Cash paid for amounts included in measurement of operating lease liabilities $ 120,826 Cash paid for short-term operating leases not included in operating lease liabilities 27,402 Right-of-use assets obtained in exchange for new operating lease liabilities 78,250 Weighted-average discount rate and weighted-average remaining lease term: (in thousands) December 31, 2019 Weighted-average discount rate (1) 7.7 % Weighted-average remaining lease term (in years) 4 (1) January 1, 2019 incremental borrowing rate was used for leases in existence at the time of adoption of ASU 2016-02. |
Operating lease liability maturity [Table Text Block] | Reconciliation of undiscounted operating lease liabilities to the present value operating lease liabilities at December 31, 2019 : (In thousands) Operating Leases 2020 $ 116,689 2021 86,279 2022 57,271 2023 31,352 2024 16,323 Thereafter 21,473 Total undiscounted operating lease liabilities 329,387 Less: Interest (44,346 ) Total present value of operating lease liabilities $ 285,041 |
ASC 840 operating leases future minimum rental payments [Table Text Block] | In accordance with ASC 840, future minimum rental payments for operating leases with remaining lease terms in excess of one year, at December 31, 2018 : (In thousands) Operating Leases 2019 $ 145,345 2020 116,785 2021 80,362 2022 47,417 2023 16,460 Thereafter 2,280 Total future minimum rental payments $ 408,649 |
Intangible Assets and Acquisi_2
Intangible Assets and Acquisitions Intangible Assets and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Amortizable intangible assets consist of the following: December 31, 2019 December 31, 2018 (Dollar amounts in thousands) Avg. Life (years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 2 $ 80,036 $ 79,941 $ 79,942 $ 79,695 Vendor relationships 9 9,760 1,113 860 860 Non-compete agreements 3 6,747 6,727 6,745 6,493 Total other intangible assets $ 96,543 $ 87,781 $ 87,547 $ 87,048 |
Aggregate Amortization Expense [Table Text Block] | Aggregate amortization expense (in thousands): Year Ended December 31, 2019 $ 723 Year Ended December 31, 2018 $ 671 Year Ended December 31, 2017 (1) $ 4,908 (1) Includes impairment charge of $3.9 million |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated amortization expense, assuming current intangible balances and no new acquisitions, for each of the years ending December 31, is as follows: (In thousands) Estimated Amortization Expense 2020 $ 1,031 2021 906 2022 890 2023 890 2024 890 Thereafter 4,155 Total amortization expense $ 8,762 |
Schedule of Goodwill [Table Text Block] | A summary of the changes in recorded goodwill follows: Year Ended December 31, (In thousands) 2019 2018 Beginning goodwill balance $ 56,845 $ 56,614 Additions from acquisitions 13,700 169 Post purchase price allocation adjustments (328 ) 62 Ending goodwill balance $ 70,217 $ 56,845 |
Merchants Preferred acquisition [Table Text Block] | Assets acquired and liabilities assumed in connection with the acquisition have been recorded at their fair values. The following table provides the final estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands) August 13, 2019 Receivables $ 1,813 Prepaid expenses and other assets 154 Rental merchandise 17,904 Software 4,300 Right of use operating leases 404 Other intangible assets 8,900 Goodwill 13,403 Lease liabilities (487 ) Net identifiable assets acquired $ 46,391 |
Acquisitions [Table Text Block] | The following table provides information concerning the other acquisitions, excluding Merchants Preferred, made during the years ended December 31, 2019 , 2018 and 2017 . Year Ended December 31, (Dollar amounts in thousands) 2019 2018 2017 Number of stores acquired remaining open — 1 — Number of stores acquired that were merged with existing stores 4 6 8 Number of transactions 4 7 4 Total purchase price $ 504 $ 2,048 $ 2,547 Amounts allocated to: Goodwill $ 66 $ 169 $ 1,217 Customer relationships 85 289 550 Rental merchandise 353 1,590 780 |
Accrued Liabilities Accrued Lia
Accrued Liabilities Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued liabilities [Table Text Block] | Accrued Liabilities December 31, (In thousands) 2019 2018 Accrued insurance costs $ 104,557 $ 109,505 Accrued compensation 38,547 55,789 Deferred revenue 52,589 53,348 Taxes other than income 28,397 27,711 Income taxes payable — 26,797 Accrued legal settlement 440 11,000 Deferred compensation 9,711 8,687 Accrued interest payable 1,391 5,643 Deferred rent — 3,503 Accrued dividends 15,912 — Accrued other 24,233 35,476 Total Accrued liabilities $ 275,777 $ 337,459 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Loss Before Income Tax, Domestic and Foreign [Table Text Block] | For financial statement purposes, income (loss) before income taxes by source was comprised of the following: Year Ended December 31, (In thousands) 2019 2018 2017 Domestic $ 212,406 $ 11,290 $ (109,615 ) Foreign 11,377 2,551 (585 ) Earnings (loss) before income taxes $ 223,783 $ 13,841 $ (110,200 ) |
Reconciliation of Income Tax Expense [Table Text Block] | A reconciliation of the federal statutory rate of 21% for 2019 and 2018 and 35% for 2017 to actual follows: Year Ended December 31, 2019 2018 2017 Tax at statutory rate 21.0 % 21.0 % 35.0 % Tax Cuts and Jobs Act of 2017 — % — % 70.3 % State income taxes 4.3 % 17.6 % (1.8 )% Effect of foreign operations, net of foreign tax credits 0.3 % (1.2 )% 3.5 % Effect of current and prior year credits (2.7 )% (31.4 )% 1.7 % Change in unrecognized tax benefits — % 10.9 % — % Other permanent differences 0.2 % 14.9 % — % Prior year return to provision adjustments (2.7 )% 7.3 % — % Adjustments to deferred taxes — % — % 1.6 % Valuation allowance 1.2 % (0.5 )% (1.6 )% Other, net 0.8 % — % (2.7 )% Effective income tax rate 22.4 % 38.6 % 106.0 % |
Components of Income Tax Expense [Table Text Block] | The components of income tax expense (benefit) are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Current expense (benefit) Federal $ (6,996 ) $ (2,573 ) $ (34,445 ) State 528 816 1,216 Foreign 796 724 (1,417 ) Total current (5,672 ) (1,033 ) (34,646 ) Deferred expense (benefit) Federal 37,309 4,691 (89,820 ) State 16,439 3,325 9,266 Foreign 2,161 (1,634 ) (1,653 ) Total deferred 55,909 6,382 (82,207 ) Total income tax expense (benefit) $ 50,237 $ 5,349 $ (116,853 ) |
Deferred Tax Assets [Table Text Block] | Deferred tax assets (liabilities) consist of the following: December 31, (In thousands) 2019 2018 Deferred tax assets Net operating loss carryforwards $ 34,928 $ 56,701 Accrued liabilities 45,671 50,558 Intangible assets 13,088 20,346 Lease obligations 71,104 — Other assets including credits 10,915 23,070 Foreign tax credit carryforwards 7,815 6,601 Total deferred tax assets 183,521 157,276 Valuation allowance (43,555 ) (39,961 ) Deferred tax assets, net 139,966 117,315 Deferred tax liabilities Rental merchandise (193,878 ) (177,794 ) Property assets (24,513 ) (32,571 ) Lease assets (69,035 ) — Other liabilities (1,635 ) (453 ) Total deferred tax liabilities (289,061 ) (210,818 ) Net deferred taxes $ (149,095 ) $ (93,503 ) |
Unrecognized Tax Benefits [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: Year Ended December 31, (In thousands) 2019 2018 2017 Beginning unrecognized tax benefit balance $ 36,364 $ 37,319 $ 33,723 Reductions based on tax positions related to current year (654 ) (206 ) (2,280 ) Additions for tax positions of prior years 415 735 6,688 Reductions for tax positions of prior years (11,917 ) (488 ) (368 ) Settlements — (996 ) (444 ) Ending unrecognized tax benefit balance $ 24,208 $ 36,364 $ 37,319 |
Senior Debt Senior Debt (Tables
Senior Debt Senior Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Senior Debt [Abstract] | |
Debt facilities [Table Text Block] | The debt facilities as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In thousands) Facility Maturity Maximum Facility Amount Outstanding Amount Available Maximum Facility Amount Outstanding Amount Available Senior Debt: Term Loan August 5, 2026 $ 200,000 $ 199,500 $ — $ — $ — $ — ABL Credit Facility August 5, 2024 300,000 40,000 168,200 200,000 — 95,900 Total 500,000 239,500 168,200 200,000 — 95,900 Other indebtedness: Line of credit — — — 12,500 — 12,500 Total $ 500,000 239,500 $ 168,200 $ 212,500 — $ 108,400 Unamortized debt issuance costs (8,587 ) — (1) Total senior debt, net $ 230,913 $ — (1) At December 31, 2018 there was $2.6 million in unamortized debt issuance costs included in other assets on the consolidated balance sheet. |
Maturities of outstanding debt [Table Text Block] | The table below shows the scheduled maturity dates of our outstanding debt at December 31, 2019 for each of the years ending December 31: (in thousands) Term Loan ABL Credit Facility Total 2020 $ 2,000 $ — $ 2,000 2021 2,000 — 2,000 2022 2,000 — 2,000 2023 2,000 — 2,000 2024 2,000 40,000 42,000 Thereafter 189,500 — 189,500 Total senior debt $ 199,500 $ 40,000 $ 239,500 |
Other (Gains) and Charges Other
Other (Gains) and Charges Other (Gains) and Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Charges - Operating Expenses [Abstract] | |
Other (Gains) and Charges [Table Text Block] | Activity with respect to other charges for the years ended December 31, 2018 and 2019 is summarized in the below table: (In thousands) Accrued Charges at December 31, 2017 Charges & Adjustments Payments & Adjustments Accrued Charges at December 31, 2018 Charges & Adjustments Payments & Adjustments Accrued Charges at December 31, 2019 Cash charges: Labor reduction costs $ 1,674 $ 13,321 $ (7,372 ) $ 7,623 $ 3,039 $ (9,924 ) $ 738 Lease obligation costs (1) 2,105 11,952 (9,175 ) 4,882 — (4,882 ) — Contract termination costs — 6,750 (6,750 ) — — — — Other miscellaneous — 2,696 (2,696 ) — 4,615 (4,615 ) — Total cash charges $ 3,779 34,719 $ (25,993 ) $ 12,505 7,654 $ (19,421 ) $ 738 Non-cash charges: Rental merchandise losses 620 — Asset impairments (2) 6,825 9,938 Other (3) 17,160 (78,320 ) Total other charges (gains) $ 59,324 $ (60,728 ) (1) Upon adoption of ASU 2016-02, previously accrued lease obligation costs related to discontinued operations were eliminated and are now reflected as an adjustment to our operating lease right-of-use assets in our condensed consolidated balance sheet. (2) Asset impairments primarily includes impairments of operating lease right-of-use assets and other property assets related to the closure of Rent-A-Center Business stores and our product service centers for the year ended December 31, 2019. Asset impairments for the year ended December 31, 2018, primarily includes capitalized software write-downs and impairment of property assets related to the closure of Rent-A-Center Business stores. (3) Other primarily includes $92.5 million in Vintage Settlement proceeds, $21.8 million gain on the sale of our corporate headquarters, and $1.1 million in insurance proceeds related to the 2017 hurricanes, offset by $21.4 million in incremental legal and professional fees related to the termination of the Merger Agreement and the Merchants Preferred acquisition, $13.0 million for the Blair class action settlement (refer to Note L for additional details), $2.4 million in state tax audit assessments, and $0.3 million in other litigation settlements for the year ended December 31, 2019. Other for the year ended December 31, 2018, primarily includes $18.4 million in incremental legal and advisory fees associated with our strategic review and merger related activities, partially offset by a $1.1 million favorable contract termination settlement. |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-based compensation expense [Table Text Block] | Stock-based compensation expense for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Stock options $ 1,273 $ 1,388 $ 2,023 Restricted share units 5,685 4,573 1,873 Total stock-based compensation expense 6,958 5,961 3,896 Tax benefit recognized in the statements of earnings 1,562 1,739 1,442 Stock-based compensation expense, net of tax $ 5,396 $ 4,222 $ 2,454 |
Stock option activity [Table Text Block] | Information with respect to stock option activity related to the Plans for the year ended December 31, 2019 follows: Equity Awards Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) Balance outstanding at January 1, 2019 2,468,900 $ 19.37 Granted 381,198 22.53 Exercised (551,008 ) 12.36 Forfeited (224,396 ) 10.54 Expired (239,832 ) 30.96 Balance outstanding at December 31, 2019 1,834,862 $ 21.70 6.12 $ 4,464 Exercisable at December 31, 2019 973,036 $ 27.60 4.15 $ 4,469 |
Weighted average fair values of options granted [Table Text Block] | The weighted average fair values of the options granted under the Plans were calculated using the Black-Scholes method. The weighted average grant date fair value and weighted average assumptions used in the option pricing models are as follows: Year Ended December 31, 2019 2018 2017 Weighted average grant date fair value $ 8.92 $ 3.80 $ 2.92 Weighted average risk free interest rate 2.07 % 2.51 % 1.78 % Weighted average expected dividend yield 1.28 % — % 3.03 % Weighted average expected volatility 50.93 % 49.58 % 45.44 % Weighted average expected life (in years) 4.63 4.63 4.50 |
Nonvested restricted stock units activity [Table Text Block] | Information with respect to non-vested restricted stock unit activity follows: Restricted Awards Outstanding Weighted Average Grant Date Fair Value Balance outstanding at January 1, 2019 1,855,862 $ 8.82 Granted 512,567 28.24 Vested (351,469 ) 10.58 Forfeited (446,560 ) 10.19 Balance outstanding at December 31, 2019 1,570,400 $ 14.38 |
Segment Information Segment Inf
Segment Information Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information [Table Text Block] | Segment information as of and for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Revenues Rent-A-Center Business $ 1,800,486 $ 1,855,712 $ 1,835,422 Preferred Lease 749,260 722,562 797,987 Mexico 53,960 49,613 47,005 Franchising 66,146 32,578 22,126 Total revenues $ 2,669,852 $ 2,660,465 $ 2,702,540 Year Ended December 31, (In thousands) 2019 2018 2017 Gross profit Rent-A-Center Business $ 1,255,153 $ 1,299,809 $ 1,276,212 Preferred Lease 333,798 339,616 400,002 Mexico 37,488 34,364 32,592 Franchising 17,632 14,379 9,736 Total gross profit $ 1,644,071 $ 1,688,168 $ 1,718,542 Year Ended December 31, (In thousands) 2019 2018 2017 Operating profit (loss) Rent-A-Center Business $ 235,964 $ 147,787 $ 86,196 Preferred Lease 83,066 93,951 48,618 Mexico 5,357 2,605 (260 ) Franchising 7,205 4,385 5,081 Total segments 331,592 248,728 139,635 Corporate (77,733 ) (192,591 ) (202,694 ) Total operating profit (loss) $ 253,859 $ 56,137 $ (63,059 ) Year Ended December 31, (In thousands) 2019 2018 2017 Depreciation and amortization Rent-A-Center Business $ 20,822 $ 25,566 $ 31,070 Preferred Lease 1,533 1,677 2,498 Mexico 401 1,006 1,973 Franchising 45 172 177 Total segments 22,801 28,421 35,718 Corporate 38,303 40,525 38,921 Total depreciation and amortization $ 61,104 $ 68,946 $ 74,639 Year Ended December 31, (In thousands) 2019 2018 2017 Capital expenditures Rent-A-Center Business $ 10,255 $ 17,173 $ 26,506 Preferred Lease 141 203 2,723 Mexico 172 295 124 Total segments 10,568 17,671 29,353 Corporate 10,589 10,291 36,107 Total capital expenditures $ 21,157 $ 27,962 $ 65,460 December 31, (In thousands) 2019 2018 2017 On rent rental merchandise, net Rent-A-Center Business $ 411,482 $ 424,829 $ 408,993 Preferred Lease 268,845 242,978 278,443 Mexico 16,943 16,001 14,367 Total on rent rental merchandise, net $ 697,270 $ 683,808 $ 701,803 December 31, (In thousands) 2019 2018 2017 Held for rent rental merchandise, net Rent-A-Center Business $ 131,086 $ 117,294 $ 156,039 Preferred Lease 1,254 1,207 4,940 Mexico 6,078 5,161 6,209 Total held for rent rental merchandise, net $ 138,418 $ 123,662 $ 167,188 December 31, (In thousands) 2019 2018 2017 Assets by segment Rent-A-Center Business $ 953,151 $ 714,914 $ 776,296 Preferred Lease 357,859 312,151 350,970 Mexico 33,707 29,321 33,529 Franchising 11,095 4,287 3,802 Total segments 1,355,812 1,060,673 1,164,597 Corporate 226,986 336,244 256,184 Total assets $ 1,582,798 $ 1,396,917 $ 1,420,781 December 31, (In thousands) 2019 2018 2017 Assets by country United States $ 1,547,895 $ 1,366,405 $ 1,383,004 Mexico 33,707 29,321 33,529 Canada 1,196 1,191 4,248 Total assets $ 1,582,798 $ 1,396,917 $ 1,420,781 Year Ended December 31, (In thousands) 2019 2018 2017 Rentals and fees by inventory category Furniture and accessories $ 982,644 $ 962,241 $ 921,159 Consumer electronics 358,619 410,184 459,942 Appliances 346,668 344,548 351,893 Computers 103,171 120,756 124,158 Smartphones 62,948 62,592 57,927 Other products and services 370,352 344,539 352,662 Total rentals and fees $ 2,224,402 $ 2,244,860 $ 2,267,741 Year Ended December 31, (In thousands) 2019 2018 2017 Revenue by country United States $ 2,615,892 $ 2,610,432 $ 2,654,819 Mexico 53,960 49,612 47,005 Canada — 421 716 Total revenues $ 2,669,852 $ 2,660,465 $ 2,702,540 |
Earnings Per Common Share Earni
Earnings Per Common Share Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Common Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Summarized basic and diluted earnings per common share were calculated as follows: Year Ended December 31, (In thousands, except per share data) 2019 2018 2017 Numerator: Net earnings $ 173,546 $ 8,492 $ 6,653 Denominator: Weighted-average shares outstanding 54,325 53,471 53,282 Effect of dilutive stock awards 1,630 1,071 562 Weighted-average dilutive shares 55,955 54,542 53,844 Basic earnings per share $ 3.19 $ 0.16 $ 0.12 Diluted earnings per share $ 3.10 $ 0.16 $ 0.12 Anti-dilutive securities excluded from diluted earnings per common share: Anti-dilutive restricted share units — — — Anti-dilutive performance share units 290 200 329 Anti-dilutive stock options 1,109 1,498 2,554 |
Unaudited Quarterly Data Unaudi
Unaudited Quarterly Data Unaudited Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unaudited Quarterly Data [Abstract] | |
Unaudited Quarterly Data [Table Text Block] | Summarized quarterly financial data for the years ended December 31, 2019 , and 2018 is as follows: (In thousands, except per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Ended December 31, 2019 Revenues $ 696,694 $ 655,925 $ 649,371 $ 667,862 Gross profit 424,866 408,071 399,996 411,138 Operating profit 17,349 129,829 38,847 67,834 Net earnings 7,323 94,455 31,277 40,491 Basic earnings per common share $ 0.14 $ 1.74 $ 0.57 $ 0.74 Diluted earnings per common share $ 0.13 $ 1.70 $ 0.56 $ 0.72 (In thousands, except per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Ended December 31, 2018 Revenues $ 698,043 $ 655,730 $ 644,942 $ 661,750 Gross profit 436,978 423,886 407,740 419,564 Operating (loss) profit (10,270 ) 27,151 25,632 13,624 Net (loss) earnings (19,843 ) 13,753 12,918 1,664 Basic (loss) earnings per common share $ (0.37 ) $ 0.26 $ 0.24 $ 0.03 Diluted (loss) earnings per common share $ (0.37 ) $ 0.25 $ 0.24 $ 0.03 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Accounting Policies Nature of Operations and Summary of Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)store | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Nature of Operations [Abstract] | |||||
Number of company-owned stores nationwide and in Puerto Rico | store | 1,973 | ||||
Number of retail installment sales stores | store | 44 | ||||
Number of Preferred Lease Staffed locations | store | 998 | ||||
Number of stores in Mexico | store | 123 | ||||
Number of Franchised stores | store | 372 | ||||
Number of states with Franchised stores | 33 | ||||
Rental merchandise, net [Abstract] | |||||
Minimum Period in Held for Rent status needed for depreciation of merchandise | 180 days | ||||
Maximum Period used for depreciation of Merchandise Held for Rent | 18 months | ||||
Maximum Period used for depreciation of smartphones Held for Rent | 18 months | ||||
Minimum Period in Held for Rent status needed for depreciation of smartphones | 90 days | ||||
Maximum period of past due required to charge off remaining book value of rental merchandise for Rent-A-Center business and Mexico segments | 90 days | ||||
Maximum period of past due required to charge off remaining book value of rental merchandise for Preferred Lease segment | 150 days | ||||
Receivables and Allowance for Doubtful Accounts [Abstract] | |||||
Minimum Period of Past Due Required to Charge Off installment Notes | 120 days | ||||
Maximum period in current status allowed to Franchisees for payment of receivables | 30 days | ||||
Minimum period of past due required to write off receivables from Franchisees | 90 days | ||||
Major Property Class Useful Life [Line Items] | |||||
Goodwill | $ 70,217 | $ 56,845 | $ 56,614 | ||
Operating lease right-of-use assets | 281,566 | 0 | |||
Operating lease liabilities | $ 285,041 | 0 | |||
Goodwill and Other Intangibles [Abstract] | |||||
Amortization period for acquired customer relationships | 21 months | ||||
Amortization period for vendor relationships minimum | 7 years | ||||
Amortization period for vendor relationships maximum | 15 years | ||||
Advertising Costs [Abstract] | |||||
Advertising Costs | $ 58,800 | 74,600 | 86,100 | ||
Vendor Allowances | 21,200 | 17,100 | $ 14,400 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accrued liabilities | (275,777) | (337,459) | |||
Deferred tax liability | $ 163,984 | 119,061 | |||
Change in beginning retained earnings | $ 2,000 | $ 1,300 | |||
Furniture, equipment and vehicle [Member] | |||||
Major Property Class Useful Life [Line Items] | |||||
Useful life | 5 years | ||||
Internally Developed Software [Member] | |||||
Major Property Class Useful Life [Line Items] | |||||
Useful life | 10 years | ||||
Rent-A-Center Business [Member] | |||||
Major Property Class Useful Life [Line Items] | |||||
Goodwill | $ 1,500 | 1,500 | |||
Preferred Lease [Member] | |||||
Major Property Class Useful Life [Line Items] | |||||
Goodwill | $ 68,700 | $ 55,300 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accrued liabilities | (1,700) | ||||
Deferred tax liability | $ 400 |
Revenues Revenues (Details)
Revenues Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Rentals and fees | $ 2,224,402 | $ 2,244,860 | $ 2,267,741 | ||||||||
Merchandise sales | 304,630 | 304,455 | 331,402 | ||||||||
Installment sales | 70,434 | 69,572 | 71,651 | ||||||||
Other | 4,795 | 9,000 | 9,620 | ||||||||
Total store revenues | 2,604,261 | 2,627,887 | 2,680,414 | ||||||||
Franchise merchandise sales | 49,135 | 19,087 | 13,157 | ||||||||
Royalty income and fees | 16,456 | 13,491 | 8,969 | ||||||||
Total revenues | $ 667,862 | $ 649,371 | $ 655,925 | $ 696,694 | $ 661,750 | $ 644,942 | $ 655,730 | $ 698,043 | 2,669,852 | 2,660,465 | 2,702,540 |
Deferred revenue | 52,589 | 53,348 | 52,589 | 53,348 | |||||||
Rental purchase agreements [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Deferred revenue | 39,900 | 42,100 | 39,900 | 42,100 | |||||||
Other product plans [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Deferred revenue | 2,900 | 3,000 | 2,900 | 3,000 | |||||||
Franchise fees [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Deferred revenue | $ 4,500 | $ 4,100 | 4,500 | 4,100 | |||||||
Rent-A-Center Business [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Rentals and fees | 1,585,997 | 1,640,839 | |||||||||
Merchandise sales | 140,372 | 136,878 | |||||||||
Installment sales | 70,434 | 69,572 | |||||||||
Other | 3,683 | 8,423 | |||||||||
Total store revenues | 1,800,486 | 1,855,712 | |||||||||
Franchise merchandise sales | 0 | 0 | |||||||||
Royalty income and fees | 0 | 0 | |||||||||
Total revenues | 1,800,486 | 1,855,712 | 1,835,422 | ||||||||
Preferred Lease [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Rentals and fees | 587,502 | 557,592 | |||||||||
Merchandise sales | 161,235 | 164,432 | |||||||||
Installment sales | 0 | 0 | |||||||||
Other | 523 | 538 | |||||||||
Total store revenues | 749,260 | 722,562 | |||||||||
Franchise merchandise sales | 0 | 0 | |||||||||
Royalty income and fees | 0 | 0 | |||||||||
Total revenues | 749,260 | 722,562 | 797,987 | ||||||||
Mexico [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Rentals and fees | 50,903 | 46,429 | |||||||||
Merchandise sales | 3,023 | 3,145 | |||||||||
Installment sales | 0 | 0 | |||||||||
Other | 34 | 39 | |||||||||
Total store revenues | 53,960 | 49,613 | |||||||||
Franchise merchandise sales | 0 | 0 | |||||||||
Royalty income and fees | 0 | 0 | |||||||||
Total revenues | 53,960 | 49,613 | 47,005 | ||||||||
Franchising [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Rentals and fees | 0 | 0 | |||||||||
Merchandise sales | 0 | 0 | |||||||||
Installment sales | 0 | 0 | |||||||||
Other | 555 | 0 | |||||||||
Total store revenues | 555 | 0 | |||||||||
Franchise merchandise sales | 49,135 | 19,087 | |||||||||
Royalty income and fees | 16,456 | 13,491 | |||||||||
Total revenues | $ 66,146 | $ 32,578 | $ 22,126 |
Receivables and Allowance for_3
Receivables and Allowance for Doubtful Accounts Receivables and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Line Items] | ||||
Accounts Receivable, before Allowance for Credit Loss | $ 89,724 | $ 74,528 | ||
Receivables, net of allowance for doubtful accounts of $5,601 and $4,883 in 2019 and 2018, respectively | 84,123 | 69,645 | ||
Changes in allowance for doubtful accounts [Roll Forward] | ||||
Bad debt expense | 15,077 | 14,610 | $ 15,702 | |
Accounts written off | (14,359) | (13,894) | (15,128) | |
Allowance for doubtful accounts | (5,601) | (4,883) | $ (4,167) | $ (3,593) |
Installment sales receivable [Member] | ||||
Receivables [Line Items] | ||||
Accounts Receivable, before Allowance for Credit Loss | 56,370 | 54,746 | ||
Changes in allowance for doubtful accounts [Roll Forward] | ||||
Allowance for doubtful accounts | (4,100) | (3,600) | ||
Trade and notes receivables [Member] | ||||
Receivables [Line Items] | ||||
Accounts Receivable, before Allowance for Credit Loss | 33,354 | 19,782 | ||
Changes in allowance for doubtful accounts [Roll Forward] | ||||
Allowance for doubtful accounts | $ (1,500) | $ (1,300) |
Rental Merchandise Rental Mer_2
Rental Merchandise Rental Merchandise (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Rental Merchandise [Abstract] | |||
On rent cost | $ 1,112,130 | $ 1,110,968 | |
On rent accumulated depreciation | (414,860) | (427,160) | |
On rent | 697,270 | 683,808 | $ 701,803 |
Held for rent cost | 163,636 | 147,300 | |
Held for rent accumulated depreciation | (25,218) | (23,638) | |
Held for rent | $ 138,418 | $ 123,662 | $ 167,188 |
Property Assets Property Asse_2
Property Assets Property Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Furniture and equipment | $ 475,431 | $ 512,056 | |
Building and leasehold improvements | 207,620 | 251,975 | |
Land and land improvements | 0 | 6,737 | |
Transportation equipment | 567 | 3,765 | |
Construction in progress | 5,346 | 3,540 | |
Total property assets | 688,964 | 778,073 | |
Accumulated depreciation of property assets | (522,826) | (551,750) | |
Property assets, net of accumulated depreciation of $522,826 and $551,750 in 2019 and 2018, respectively | 166,138 | 226,323 | |
Capitalized software costs included in construction in progress | 3,800 | 1,900 | |
Cost of internally developed software placed in service | 6,000 | 9,700 | $ 32,100 |
Proceeds from sale of corporate headquarters | 43,200 | ||
Gain on sale of corporate headquarters | $ 21,800 | ||
Corporate headquarters lease terms | The lease includes an initial term of 12 years, with two five year renewal option periods at our discretion | ||
Operating lease right-of-use assets | $ 281,566 | $ 0 | |
Corporate Headquarters [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Operating lease right-of-use assets | 19,000 | ||
Building and building improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Write-off | 14,000 | ||
Land and land improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Write-off | $ 6,700 |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease charges | $ 149,853 | |
Sublease receipts | (7,683) | |
Cash paid for amounts included in measurement of operating lease liabilities | 120,826 | |
Cash paid for short-term operating leases not included in operating lease liabilities | 27,402 | |
Right-of-use asset obtained in exchange for new operating lease liabilities | $ 78,250 | |
Weighted-average discount rate | 7.70% | |
Weighted-average remaining lease term (in years) | 4 years | |
2020 | $ 116,689 | |
2021 | 86,279 | |
2022 | 57,271 | |
2023 | 31,352 | |
2024 | 16,323 | |
Thereafter | 21,473 | |
Total undiscounted operating lease liabilities | 329,387 | |
Less: Interest | (44,346) | |
Operating lease liabilities | 285,041 | $ 0 |
2019 | 145,345 | |
2020 | 116,785 | |
2021 | 80,362 | |
2022 | 47,417 | |
2023 | 16,460 | |
Thereafter | 2,280 | |
Total future minimum rental payments | 408,649 | |
Other store expenses [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease charges | 148,314 | |
Other charges [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease charges | $ 9,222 |
Intangible Assets and Acquisi_3
Intangible Assets and Acquisitions Intangible Assets and Acquisitions (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)store | Dec. 31, 2018USD ($)store | Dec. 31, 2017USD ($)store | Aug. 13, 2019USD ($)$ / shares | |
Intangible Assets and Acquisitions [Line Items] | ||||
Goodwill impairment charge | $ 0 | |||
Gross carrying amount | 96,543,000 | $ 87,547,000 | ||
Accumulated amortization | 87,781,000 | 87,048,000 | ||
Amortization and impairment of intangibles | 723,000 | 671,000 | $ 4,908,000 | |
Impairment of intangible asset | 3,900,000 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||||
2020 Estimated amortization expense | 1,031,000 | |||
2021 Estimated amortization expense | 906,000 | |||
2022 Estimated amortization expense | 890,000 | |||
2023 Estimated amortization expense | 890,000 | |||
2024 Estimated amortization expense | 890,000 | |||
Thereafter Estimated amortization expense | 4,155,000 | |||
Other intangible assets, net | 8,762,000 | 499,000 | ||
Goodwill | 13,700,000 | 169,000 | 1,217,000 | |
Post purchase price allocation adjustments | $ (328,000) | 62,000 | ||
Acquisition date | Aug. 13, 2019 | |||
Acquired entity | Merchants Preferred | |||
Description of acquired entity | a nationwide provider of virtual lease-to-own services | |||
Aggregate purchase price | $ 46,400,000 | |||
Total purchase price | 2,048,000 | 2,547,000 | ||
Common stock consideration | 701,918 shares of our common stock | |||
Common stock price | $ / shares | $ 27.31 | |||
Working capital adjustment | $ 900,000 | |||
Rental merchandise | 1,590,000 | 780,000 | ||
Goodwill | $ 70,217,000 | $ 56,845,000 | $ 56,614,000 | |
Acquired intangible assets weighted average useful life | 54 months | |||
Description of goodwill recognized | consists of the excess of the net purchase price over the fair value of the net assets acquired | |||
Acquisition related expenses | $ 1,400,000 | |||
Number of stores acquired remaining open | store | 1 | 0 | ||
Number of stores acquired that were merged with existing stores | store | 6 | 8 | ||
Number of transactions | 7 | 4 | ||
Rent-A-Center Business [Member] | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||||
Goodwill | $ 66,000 | |||
Total purchase price | 504,000 | |||
Rental merchandise | 353,000 | |||
Goodwill | $ 1,500,000 | $ 1,500,000 | ||
Number of stores acquired remaining open | store | 0 | |||
Number of stores acquired that were merged with existing stores | store | 4 | |||
Number of transactions | 4 | |||
Preferred Lease [Member] | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||||
Total purchase price | $ 28,000,000 | |||
Goodwill | $ 68,700,000 | 55,300,000 | ||
Customer relationships [Member] | ||||
Intangible Assets and Acquisitions [Line Items] | ||||
Average life | 2 years | |||
Gross carrying amount | $ 80,036,000 | 79,942,000 | ||
Accumulated amortization | 79,941,000 | 79,695,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||||
Acquisition amounts allocated to finite-lived intangible assets | 289,000 | $ 550,000 | ||
Customer relationships [Member] | Rent-A-Center Business [Member] | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||||
Acquisition amounts allocated to finite-lived intangible assets | $ 85,000 | |||
Vendor relationships [Member] | ||||
Intangible Assets and Acquisitions [Line Items] | ||||
Average life | 9 years | |||
Gross carrying amount | $ 9,760,000 | 860,000 | ||
Accumulated amortization | $ 1,113,000 | 860,000 | ||
Non-compete agreements [Member] | ||||
Intangible Assets and Acquisitions [Line Items] | ||||
Average life | 3 years | |||
Gross carrying amount | $ 6,747,000 | 6,745,000 | ||
Accumulated amortization | $ 6,727,000 | $ 6,493,000 | ||
Merchants Preferred [Member] | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||||
Receivables | 1,813,000 | |||
Prepaid expenses and other assets | 154,000 | |||
Rental merchandise | 17,904,000 | |||
Software | 4,300,000 | |||
Right of use operating leases | 404,000 | |||
Other intangible assets | 8,900,000 | |||
Goodwill | 13,403,000 | |||
Lease liabilities | (487,000) | |||
Net identifiable assets acquired | $ 46,391,000 | |||
Acquired intangible assets weighted average useful life | 10 years |
Accrued Liabilities Accrued L_2
Accrued Liabilities Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Accrued insurance costs | $ 104,557 | $ 109,505 |
Accrued compensation | 38,547 | 55,789 |
Deferred revenue | 52,589 | 53,348 |
Taxes other than income | 28,397 | 27,711 |
Income taxes payable | 0 | 26,797 |
Accrued legal settlement | 440 | 11,000 |
Deferred compensation | 9,711 | 8,687 |
Accrued interest payable | 1,391 | 5,643 |
Deferred rent | 0 | 3,503 |
Accrued dividends | 15,912 | 0 |
Accrued other | 24,233 | 35,476 |
Accrued liabilities | $ 275,777 | $ 337,459 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Revaluation income tax benefit | $ 76,500 | ||
Tax Act transition tax obligation | 700 | ||
Tax Act provisional benefit | 9,700 | ||
Domestic loss before income taxes | $ 212,406 | $ 11,290 | (109,615) |
Foreign loss before income taxes | 11,377 | 2,551 | (585) |
Earnings (loss) before income taxes | 223,783 | 13,841 | (110,200) |
Federal current benefit | (6,996) | (2,573) | (34,445) |
State current expense | 528 | 816 | 1,216 |
Foreign current expense (benefit) | 796 | 724 | (1,417) |
Total current | (5,672) | (1,033) | (34,646) |
Federal deferred expense (benefit) | 37,309 | 4,691 | (89,820) |
State deferred expense | 16,439 | 3,325 | 9,266 |
Foreign deferred expense (benefit) | 2,161 | (1,634) | (1,653) |
Total deferred expense (benefit) | 55,909 | 6,382 | (82,207) |
Income tax expense (benefit) | 50,237 | 5,349 | $ (116,853) |
State net operating loss carryforwards | 34,928 | 56,701 | |
Accrued liabilities | 45,671 | 50,558 | |
Intangible assets | 13,088 | 20,346 | |
Lease obligations | 71,104 | 0 | |
Other assets including credits | 10,915 | 23,070 | |
Foreign tax credit carryfowards | 7,815 | 6,601 | |
Total deferred tax assets | 183,521 | 157,276 | |
Valuation allowance | (43,555) | (39,961) | |
Deferred tax asset | 139,966 | 117,315 | |
Rental merchandise | (193,878) | (177,794) | |
Property assets | (24,513) | (32,571) | |
Lease assets | (69,035) | 0 | |
Other liabilities | (1,635) | (453) | |
Deferred income taxes | (289,061) | (210,818) | |
Deferred tax liability | $ (149,095) | $ (93,503) | |
Tax at statutory rate | 21.00% | 21.00% | 35.00% |
Tax Cuts and Jobs Act of 2017 | 0.00% | 0.00% | 70.30% |
State income taxes | 4.30% | 17.60% | (1.80%) |
Effect of foreign operations, net of foreign tax credits | (0.30%) | (1.20%) | (3.50%) |
Effect of current and prior year credits | (2.70%) | (31.40%) | (1.70%) |
Change in unrecognized tax benefits | 0.00% | 10.90% | 0.00% |
Other permanent differences | 0.20% | 14.90% | 0.00% |
Prior year return to provision adjustments | (2.70%) | 7.30% | 0.00% |
Adjustments to deferred taxes | 0.00% | 0.00% | 1.60% |
Valuation allowance | 1.20% | (0.50%) | (1.60%) |
Other, net | 0.80% | 0.00% | (2.70%) |
Effective income tax rate | 22.40% | 38.60% | 106.00% |
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | $ 15,900 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 360,000 | ||
Foreign [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 53,000 |
Income Taxes Unrecognized tax b
Income Taxes Unrecognized tax benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||||
Reductions based on tax positions related to current year | $ (654) | $ (206) | $ (2,280) | |
Additions for tax positions of prior years | 415 | 735 | 6,688 | |
Reductions for tax positions of prior years | (11,917) | (488) | (368) | |
Settlements | 0 | (996) | (444) | |
Unrecognized tax benefit balance | 24,208 | $ 36,364 | $ 37,319 | $ 33,723 |
Tax benefits, if recognized, affect annual effective tax rate | 5,000 | |||
Unrecognized tax benefits, potential reduction | 18,700 | |||
Accrued for payment of interest related to unrecognized tax benefits | 3,100 | |||
Interest expense related to unrecognized tax benefits | $ 346 |
Senior Debt Senior Debt (Detail
Senior Debt Senior Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Aug. 05, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Senior debt | $ 239,500 | $ 0 | |
Original issue discount | $ 2,000 | ||
Debt issuance costs | $ 6,300 | ||
Unamortized debt issuance expense | (8,587) | (2,600) | |
Letters of credit, amount outstanding | 92,000 | ||
Senior debt, net | 230,913 | 0 | |
2020 | 2,000 | ||
2021 | 2,000 | ||
2022 | 2,000 | ||
2023 | 2,000 | ||
2024 | 42,000 | ||
Thereafter | 189,500 | ||
Debt Issuance Costs [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance expense | (6,700) | ||
Original Issue Discount [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance expense | (1,900) | ||
Term loan [Member] | |||
Debt Instrument [Line Items] | |||
Senior debt | 199,500 | 0 | |
Maximum borrowing capacity | 200,000 | 0 | |
Amount available | $ 0 | 0 | |
Maturity date | Aug. 5, 2026 | ||
Frequency of periodic payment | quarterly | ||
Periodic Payment, Percent | 1.00% | ||
Required consolidated senior secured leverage ratio, minimum | 2 | ||
2020 | $ 2,000 | ||
2021 | 2,000 | ||
2022 | 2,000 | ||
2023 | 2,000 | ||
2024 | 2,000 | ||
Thereafter | 189,500 | ||
Term loan [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Senior debt | $ 200,000 | ||
Term loan [Member] | Eurodollar [Member] | |||
Debt Instrument [Line Items] | |||
Basis margin on variable rate | 4.50% | ||
Actual margin on variable rate | 6.25% | ||
ABL credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Senior debt | $ 40,000 | 0 | |
Maximum borrowing capacity | 300,000 | 200,000 | |
ABL credit facility availability | $ 168,200 | 95,900 | |
Maturity date | Aug. 5, 2024 | ||
Line of credit commitment fee percentage | 0.375% | ||
Line of credit commitment fee | $ 500 | ||
Line of credit additional borrowing capacity | $ 100,000 | ||
Required minimum proforma fixed charge coverage ratio | 1.10 | ||
Required minimum consolidated fixed charge coverage ratio | 1.10 | ||
2020 | $ 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 40,000 | ||
Thereafter | $ 0 | ||
ABL credit facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit commitment fee percentage | 0.25% | ||
ABL credit facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Senior debt | $ 300,000 | ||
Letters of credit, amount outstanding | $ 150,000 | ||
Line of credit commitment fee percentage | 0.375% | ||
ABL credit facility [Member] | Eurodollar [Member] | |||
Debt Instrument [Line Items] | |||
Actual margin on variable rate | 3.25% | ||
ABL credit facility [Member] | Eurodollar [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis margin on variable rate | 1.50% | ||
ABL credit facility [Member] | Eurodollar [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis margin on variable rate | 2.00% | ||
Term Loan and Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 500,000 | 200,000 | |
Amount available | 168,200 | 95,900 | |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured line of credit, maximum facility | 0 | 12,500 | |
Unsecured line of credit, amount outstanding | 0 | 0 | |
Amount available | 0 | 12,500 | |
Senior Debt [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 500,000 | 212,500 | |
Amount outstanding | 239,500 | 0 | |
Amount available | $ 168,200 | $ 108,400 |
Senior Notes Senior Notes (Deta
Senior Notes Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 02, 2013 | Nov. 02, 2010 | |
Senior Notes [Line Items] | |||||
Senior note redemption price, percent | 100.00% | ||||
Senior notes, net | $ 540,000 | ||||
Write-off of debt financing fees | 2,168 | $ 475 | $ 1,936 | ||
Senior Notes Due 2020 [Member] | |||||
Senior Notes [Line Items] | |||||
Initial borrowing in senior notes | $ 300,000 | ||||
Senior Notes Due 2021 [Member] | |||||
Senior Notes [Line Items] | |||||
Initial borrowing in senior notes | $ 250,000 | ||||
Write-off of debt financing fees | $ 2,000 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)store | |
Loss Contingencies [Line Items] | |
Blair settlement | $ 13,000,000 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Velma Russell injunctive relief and statutory damages sought | 25 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Velma Russell injunctive relief and statutory damages sought | $ 75 |
Preferred Lease [Member] | MASSACHUSETTS | |
Loss Contingencies [Line Items] | |
Preferred lease stores in MA | store | 12 |
Other (Gains) and Charges Oth_2
Other (Gains) and Charges Other (Gains) and Charges (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)store | Dec. 31, 2018USD ($)store | Dec. 31, 2017USD ($)store | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | $ 7,654 | $ 34,719 | |
Cash payment from Vintage settlement | 92,500 | ||
Proceeds from Vintage settlement | 80,000 | ||
Proceeds from sale of corporate headquarters | 43,200 | ||
Gain on sale of corporate headquarters | 21,800 | ||
Impairment of intangible asset | $ 3,900 | ||
Restructuring Reserve | 738 | 12,505 | 3,779 |
Restructuring payments | (19,421) | (25,993) | |
Other (gains) and charges | (60,728) | 59,324 | 59,219 |
Labor reduction costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 3,039 | 13,321 | |
Restructuring Reserve | 738 | 7,623 | 1,674 |
Restructuring payments | (9,924) | (7,372) | |
Capitalized software write-down [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | 1,200 | 18,200 | |
Lease obligation costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 0 | 11,952 | |
Restructuring Reserve | 0 | 4,882 | 2,105 |
Restructuring payments | (4,882) | (9,175) | |
Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 0 | 6,750 | |
Restructuring Reserve | 0 | 0 | 0 |
Restructuring payments | 0 | (6,750) | |
Other miscellaneous [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 4,615 | 2,696 | |
Restructuring Reserve | 0 | 0 | 0 |
Restructuring payments | (4,615) | (2,696) | |
Preferred Lease [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Legal Fees | (1,400) | ||
Cost Savings Initiative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Legal Fees | 1,900 | ||
Cost Savings Initiative [Member] | Labor reduction costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 2,600 | 13,100 | |
Cost Savings Initiative [Member] | Capitalized software write-down [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | 1,900 | ||
Cost Savings Initiative [Member] | Lease obligation costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 3,400 | ||
Cost Savings Initiative [Member] | Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 6,800 | ||
Cost Savings Initiative [Member] | Other miscellaneous [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 2,300 | 2,300 | |
Cost Savings Initiative [Member] | Disposal of fixed assets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | 400 | 1,000 | |
Store Consolidation Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 11,200 | ||
Store Consolidation Plan [Member] | Labor reduction costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 400 | 200 | |
Store Consolidation Plan [Member] | Lease obligation costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 8,100 | ||
Store Consolidation Plan [Member] | Other miscellaneous [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | 2,300 | 1,300 | |
Store Consolidation Plan [Member] | Disposal of fixed assets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | $ 900 | $ 1,600 | |
Store Consolidation Plan [Member] | Rent-A-Center Business [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | store | 88 | 138 | |
Store Consolidation Plan [Member] | Mexico [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | store | 9 | ||
2017 Acceptance Now Consolidation Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of intangible asset | 3,900 | ||
2017 Acceptance Now Consolidation Plan [Member] | Preferred Lease [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pretax other charges | $ 19,200 | ||
2017 Field Support Center Restructuring Plan [Member] | Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Head count reduction as percent of total workforce | 10.00% | ||
2017 Field Support Center Restructuring Plan [Member] | Corporate, Non-Segment [Member] | Labor reduction costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cash charges | $ 3,400 | ||
Non-Cash Charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | $ 9,938 | $ 6,825 | |
Other | (78,320) | 17,160 | |
Rental merchandise losses | 0 | 620 | |
Non-Cash Charges [Member] | Vintage Settlement [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 92,500 | ||
Non-Cash Charges [Member] | Sale of corporate headquarters [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 21,800 | ||
Non-Cash Charges [Member] | Insurance proceeds [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 1,100 | ||
Non-Cash Charges [Member] | Incremental legal and professional fees [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 21,400 | 18,400 | |
Non-Cash Charges [Member] | Blair settlement [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 13,000 | ||
Non-Cash Charges [Member] | State tax audit assessments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 2,400 | ||
Non-Cash Charges [Member] | Other settlements [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 300 | 1,100 | |
Non-Cash Charges [Member] | Cost Savings Initiative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | 4,900 | ||
Non-Cash Charges [Member] | Store Consolidation Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | $ 3,700 | ||
Non-Cash Charges [Member] | 2018 Hurricanes [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | $ 600 | ||
Non-Cash Charges [Member] | 2017 Hurricanes [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 4,500 | ||
Non-Cash Charges [Member] | 2017 Hurricanes [Member] | Hurricane Harvey and Irma [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | 2,100 | ||
Non-Cash Charges [Member] | 2017 Hurricanes [Member] | Hurricane Maria [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | $ 2,400 | ||
Staffed Location [Member] | 2017 Acceptance Now Consolidation Plan [Member] | Preferred Lease [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | store | 319 | ||
Virtual Location [Member] | 2017 Acceptance Now Consolidation Plan [Member] | Preferred Lease [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | store | 9 |
Stock-Based Compensation Stoc_2
Stock-Based Compensation Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding | 1,834,862 | 2,468,900 | |
Exercise period of options once vested | 10 years | ||
Stock-based compensation expense | $ 6,958,000 | $ 5,961,000 | $ 3,896,000 |
Tax benefit recognized in the statements of earnings | 1,562,000 | 1,739,000 | 1,442,000 |
Share-based compensation expense, net of tax | $ 5,396,000 | $ 4,222,000 | 2,454,000 |
Stock options granted | 381,198 | ||
Exercise of stock options, shares | (551,008) | ||
Stock options forfeited | (224,396) | ||
Stock options expired | (239,832) | ||
Stock options outstanding, weighted average exercise price | $ 21.70 | $ 19.37 | |
Stock options granted, weighted average exercise price | 22.53 | ||
Stock options exercised, weighted average exercise price | 12.36 | ||
Stock options forfeited, weighted average exercise price | 10.54 | ||
Stock options expired, weighted average exercise price | $ 30.96 | ||
Stock options outstanding, weighted average remaining contractual life | 6 years 1 month 13 days | ||
Stock options outstanding, aggregate intrinsic value | $ 4,464,000 | ||
Stock options exercisable | 973,036 | ||
Stock options exercisable, weighted average exercise price | $ 27.60 | ||
Stock options exercisable, weighted average remaining contractual life | 4 years 1 month 24 days | ||
Stock options exercisable, aggregate intrinsic value | $ 4,469,000 | ||
Stock options exercised, intrinsic value | 5,137,000 | $ 418,900 | 53,300 |
Tax benefits from exercise of stock options | $ 1,798,000 | $ 146,600 | $ 18,700 |
Weighted average grant date fair value | $ 8.92 | $ 3.80 | $ 2.92 |
Weighted average risk free interest rate | 2.07% | 2.51% | 1.78% |
Weighted average expected dividend yield | 1.28% | 0.00% | 3.03% |
Weighted average expected volatility | 50.93% | 49.58% | 45.44% |
Weighted average expected life (in years) | 4 years 7 months 17 days | 4 years 7 months 17 days | 4 years 6 months |
Restricted share units outstanding | 1,570,400 | 1,855,862 | |
Restricted share units granted | 512,567 | ||
Restricted share units vested | (351,469) | ||
Restricted share units forfeited | (446,560) | ||
Restricted share units outstanding, weighted average exercise price | $ 14.38 | $ 8.82 | |
Restricted share units granted, weighted average exercise price | 28.24 | ||
Restricted share units vested, weighted average exercise price | 10.58 | ||
Restricted share units forfeited, weighted average exercise price | $ 10.19 | ||
2016 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized to issue | 6,500,000 | ||
Stock options outstanding | 2,556,180 | 2,625,206 | |
2006 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized to issue | 7,000,000 | ||
Stock options outstanding | 450,531 | 1,022,482 | |
Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized to issue | 2,468,461 | ||
Stock options outstanding | 398,551 | 677,074 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of options granted | 1 year | ||
Vesting % of performance based restricted stock units | 0.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of options granted | 4 years | ||
Vesting % of performance based restricted stock units | 200.00% | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,273,000 | $ 1,388,000 | $ 2,023,000 |
Unvested awards - to result in compensation expense | $ 3,500,000 | ||
Weighted average number of years to vesting | 2 years 11 months 4 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5,685,000 | $ 4,573,000 | $ 1,873,000 |
Unvested awards - to result in compensation expense | $ 11,400,000 | ||
Weighted average number of years to vesting | 1 year 11 months 19 days | ||
Restricted Stock Units (RSUs) [Member] | 2006 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized to issue | 3,500,000 |
Deferred Compensation Plan Defe
Deferred Compensation Plan Deferred Compensation Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Compensation Plan [Abstract] | |||
Maximum Deferral Percentage of Base Compensation under Deferred Compensation Plan | 50.00% | ||
Maximum Deferral Percentage of Bonus Compensation under Deferred Compensation Plan | 100.00% | ||
Contributions by Employer under Deferred Compensation Plan | $ 150 | $ 50 | $ 100 |
Employer match under Deferred Compensation Plan, Percent | 50.00% | ||
Employee Contribution Maximum Percent of Compensation under Deferred Compensation Plan | 6.00% | ||
Discretionary Contribution under Deferred Compensation Plan | $ 0 | ||
Deferred compensation | $ 9,711 | $ 8,687 |
401(k) Plan 401(k) Plan (Detail
401(k) Plan 401(k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
401(k) Plan [Abstract] | |||
Maximum contribution % of eligible pre-tax compensation allowed to participants of defined contribution plan | 50.00% | ||
Employer match | $ 6.6 | $ 6.3 | $ 7 |
Employer match, percent | 50.00% | ||
Employer match, percent of employees' compensation | 6.00% | ||
Percent of company stock purchased | 8.20% | 6.20% |
Stock Repurchase Plan Stock Rep
Stock Repurchase Plan Stock Repurchase Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Repurchase Plan [Abstract] | ||
Authorized common stock repurchase amount | $ 1,250 | |
Share Repurchase Program, Total Shares Repurchased | 37,053,383 | |
Common stock repurchased, shares | 58,730 | 0 |
Share Repurchase Program, Aggregate Purchase Price of All Shares Repurchased | $ 996.1 |
Segment Information Segment I_2
Segment Information Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($)store | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)store | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 667,862 | $ 649,371 | $ 655,925 | $ 696,694 | $ 661,750 | $ 644,942 | $ 655,730 | $ 698,043 | $ 2,669,852 | $ 2,660,465 | $ 2,702,540 |
Gross profit | 411,138 | 399,996 | 408,071 | 424,866 | 419,564 | 407,740 | 423,886 | 436,978 | 1,644,071 | 1,688,168 | 1,718,542 |
Operating profit (loss) | 67,834 | $ 38,847 | $ 129,829 | $ 17,349 | 13,624 | $ 25,632 | $ 27,151 | $ (10,270) | 253,859 | 56,137 | (63,059) |
Depreciation, amortization and write-down of intangibles | 61,104 | 68,946 | 74,639 | ||||||||
Capital expenditures | 21,157 | 27,962 | 65,460 | ||||||||
On rent | 697,270 | 683,808 | 697,270 | 683,808 | 701,803 | ||||||
Held for rent | 138,418 | 123,662 | 138,418 | 123,662 | 167,188 | ||||||
Assets | $ 1,582,798 | 1,396,917 | 1,582,798 | 1,396,917 | 1,420,781 | ||||||
Rentals and fees | $ 2,224,402 | 2,244,860 | 2,267,741 | ||||||||
Number of retail installment sales stores | store | 44 | 44 | |||||||||
Royalty Fee Percentage Minimum | 2.00% | ||||||||||
Royalty Fee Percentage Maximum | 6.00% | ||||||||||
Furniture and accessories [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rentals and fees | $ 982,644 | 962,241 | 921,159 | ||||||||
Consumer electronics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rentals and fees | 358,619 | 410,184 | 459,942 | ||||||||
Appliances [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rentals and fees | 346,668 | 344,548 | 351,893 | ||||||||
Computers [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rentals and fees | 103,171 | 120,756 | 124,158 | ||||||||
Smartphones [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rentals and fees | 62,948 | 62,592 | 57,927 | ||||||||
Other products and services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rentals and fees | 370,352 | 344,539 | 352,662 | ||||||||
Rent-A-Center Business [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,800,486 | 1,855,712 | 1,835,422 | ||||||||
Gross profit | 1,255,153 | 1,299,809 | 1,276,212 | ||||||||
Operating profit (loss) | 235,964 | 147,787 | 86,196 | ||||||||
Depreciation, amortization and write-down of intangibles | 20,822 | 25,566 | 31,070 | ||||||||
Capital expenditures | 10,255 | 17,173 | 26,506 | ||||||||
On rent | $ 411,482 | 424,829 | 411,482 | 424,829 | 408,993 | ||||||
Held for rent | 131,086 | 117,294 | 131,086 | 117,294 | 156,039 | ||||||
Assets | 953,151 | 714,914 | 953,151 | 714,914 | 776,296 | ||||||
Rentals and fees | 1,585,997 | 1,640,839 | |||||||||
Preferred Lease [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 749,260 | 722,562 | 797,987 | ||||||||
Gross profit | 333,798 | 339,616 | 400,002 | ||||||||
Operating profit (loss) | 83,066 | 93,951 | 48,618 | ||||||||
Depreciation, amortization and write-down of intangibles | 1,533 | 1,677 | 2,498 | ||||||||
Capital expenditures | 141 | 203 | 2,723 | ||||||||
On rent | 268,845 | 242,978 | 268,845 | 242,978 | 278,443 | ||||||
Held for rent | 1,254 | 1,207 | 1,254 | 1,207 | 4,940 | ||||||
Assets | 357,859 | 312,151 | 357,859 | 312,151 | 350,970 | ||||||
Rentals and fees | 587,502 | 557,592 | |||||||||
Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 53,960 | 49,613 | 47,005 | ||||||||
Gross profit | 37,488 | 34,364 | 32,592 | ||||||||
Operating profit (loss) | 5,357 | 2,605 | (260) | ||||||||
Depreciation, amortization and write-down of intangibles | 401 | 1,006 | 1,973 | ||||||||
Capital expenditures | 172 | 295 | 124 | ||||||||
On rent | 16,943 | 16,001 | 16,943 | 16,001 | 14,367 | ||||||
Held for rent | 6,078 | 5,161 | 6,078 | 5,161 | 6,209 | ||||||
Assets | 33,707 | 29,321 | 33,707 | 29,321 | 33,529 | ||||||
Rentals and fees | 50,903 | 46,429 | |||||||||
Franchising [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 66,146 | 32,578 | 22,126 | ||||||||
Gross profit | 17,632 | 14,379 | 9,736 | ||||||||
Operating profit (loss) | 7,205 | 4,385 | 5,081 | ||||||||
Depreciation, amortization and write-down of intangibles | 45 | 172 | 177 | ||||||||
Assets | 11,095 | 4,287 | 11,095 | 4,287 | 3,802 | ||||||
Rentals and fees | 0 | 0 | |||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit (loss) | 331,592 | 248,728 | 139,635 | ||||||||
Depreciation, amortization and write-down of intangibles | 22,801 | 28,421 | 35,718 | ||||||||
Capital expenditures | 10,568 | 17,671 | 29,353 | ||||||||
Assets | 1,355,812 | 1,060,673 | 1,355,812 | 1,060,673 | 1,164,597 | ||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit (loss) | (77,733) | (192,591) | (202,694) | ||||||||
Depreciation, amortization and write-down of intangibles | 38,303 | 40,525 | 38,921 | ||||||||
Capital expenditures | 10,589 | 10,291 | 36,107 | ||||||||
Assets | 226,986 | 336,244 | 226,986 | 336,244 | 256,184 | ||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 2,615,892 | 2,610,432 | 2,654,819 | ||||||||
Assets | 1,547,895 | 1,366,405 | 1,547,895 | 1,366,405 | 1,383,004 | ||||||
Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 53,960 | 49,612 | 47,005 | ||||||||
Assets | 33,707 | 29,321 | 33,707 | 29,321 | 33,529 | ||||||
Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 421 | 716 | ||||||||
Assets | $ 1,196 | $ 1,191 | $ 1,196 | $ 1,191 | $ 4,248 |
Earnings Per Common Share Ear_2
Earnings Per Common Share Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net earnings | $ 40,491 | $ 31,277 | $ 94,455 | $ 7,323 | $ 1,664 | $ 12,918 | $ 13,753 | $ (19,843) | $ 173,546 | $ 8,492 | $ 6,653 |
Weighted-average shares outstanding | 54,325 | 53,471 | 53,282 | ||||||||
Effect of dilutive stock awards | 1,630 | 1,071 | 562 | ||||||||
Weighted-average dilutive shares | 55,955 | 54,542 | 53,844 | ||||||||
Basic earnings per common share | $ 0.74 | $ 0.57 | $ 1.74 | $ 0.14 | $ 0.03 | $ 0.24 | $ 0.26 | $ (0.37) | $ 3.19 | $ 0.16 | $ 0.12 |
Diluted earnings per common share | $ 0.72 | $ 0.56 | $ 1.70 | $ 0.13 | $ 0.03 | $ 0.24 | $ 0.25 | $ (0.37) | $ 3.10 | $ 0.16 | $ 0.12 |
Restricted share units [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive securities excluded from diluted earnings per common share | 0 | 0 | 0 | ||||||||
Performance share units [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive securities excluded from diluted earnings per common share | 290 | 200 | 329 | ||||||||
Stock options [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive securities excluded from diluted earnings per common share | 1,109 | 1,498 | 2,554 |
Unaudited Quarterly Data Unau_2
Unaudited Quarterly Data Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unaudited Quarterly Data [Abstract] | |||||||||||
Total revenues | $ 667,862 | $ 649,371 | $ 655,925 | $ 696,694 | $ 661,750 | $ 644,942 | $ 655,730 | $ 698,043 | $ 2,669,852 | $ 2,660,465 | $ 2,702,540 |
Gross profit | 411,138 | 399,996 | 408,071 | 424,866 | 419,564 | 407,740 | 423,886 | 436,978 | 1,644,071 | 1,688,168 | 1,718,542 |
Operating profit (loss) | 67,834 | 38,847 | 129,829 | 17,349 | 13,624 | 25,632 | 27,151 | (10,270) | 253,859 | 56,137 | (63,059) |
Net earnings | $ 40,491 | $ 31,277 | $ 94,455 | $ 7,323 | $ 1,664 | $ 12,918 | $ 13,753 | $ (19,843) | $ 173,546 | $ 8,492 | $ 6,653 |
Basic earnings per common share | $ 0.74 | $ 0.57 | $ 1.74 | $ 0.14 | $ 0.03 | $ 0.24 | $ 0.26 | $ (0.37) | $ 3.19 | $ 0.16 | $ 0.12 |
Diluted earnings per common share | $ 0.72 | $ 0.56 | $ 1.70 | $ 0.13 | $ 0.03 | $ 0.24 | $ 0.25 | $ (0.37) | $ 3.10 | $ 0.16 | $ 0.12 |