Company Quick10K Filing
Aaron's
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 69 $4,201
10-Q 2019-11-04 Quarter: 2019-09-30
10-Q 2019-07-25 Quarter: 2019-06-30
10-Q 2019-04-25 Quarter: 2019-03-31
10-K 2019-02-14 Annual: 2018-12-31
10-Q 2018-10-25 Quarter: 2018-09-30
10-Q 2018-07-26 Quarter: 2018-06-30
10-Q 2018-04-26 Quarter: 2018-03-31
10-K 2018-03-01 Annual: 2017-12-31
10-Q 2017-10-27 Quarter: 2017-09-30
10-Q 2017-08-04 Quarter: 2017-06-30
10-Q 2017-05-03 Quarter: 2017-03-31
10-K 2017-02-24 Annual: 2016-12-31
10-Q 2016-11-02 Quarter: 2016-09-30
10-Q 2016-08-04 Quarter: 2016-06-30
10-Q 2016-05-06 Quarter: 2016-03-31
10-K 2016-02-29 Annual: 2015-12-31
10-Q 2015-11-09 Quarter: 2015-09-30
10-Q 2015-08-06 Quarter: 2015-06-30
10-Q 2015-05-07 Quarter: 2015-03-31
10-K 2015-03-02 Annual: 2014-12-31
10-Q 2014-11-05 Quarter: 2014-09-30
10-Q 2014-08-08 Quarter: 2014-06-30
10-Q 2014-05-09 Quarter: 2014-03-31
10-K 2014-02-24 Annual: 2013-12-31
10-Q 2013-11-01 Quarter: 2013-09-30
10-Q 2013-05-03 Quarter: 2013-03-31
10-K 2013-02-22 Annual: 2012-12-31
10-Q 2012-11-07 Quarter: 2012-09-30
10-Q 2012-08-08 Quarter: 2012-06-30
10-Q 2012-05-08 Quarter: 2012-03-31
10-K 2012-02-29 Annual: 2011-12-31
10-Q 2011-11-07 Quarter: 2011-09-30
10-Q 2011-08-04 Quarter: 2011-06-30
10-Q 2011-05-04 Quarter: 2011-03-31
10-K 2011-02-25 Annual: 2010-12-31
10-Q 2010-11-03 Quarter: 2010-09-30
10-Q 2010-08-04 Quarter: 2010-06-30
10-Q 2010-05-04 Quarter: 2010-03-31
10-K 2010-02-26 Annual: 2009-12-31
8-K 2019-11-04 Earnings, Exhibits
8-K 2019-10-11 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-07-25 Earnings, Exhibits
8-K 2019-05-13 Officers, Shareholder Vote, Exhibits
8-K 2019-04-25 Earnings, Exhibits
8-K 2019-03-01 Officers
8-K 2019-02-14 Earnings, Exhibits
8-K 2019-02-14 Regulation FD
8-K 2019-01-08 Earnings, Exhibits
8-K 2018-10-25 Enter Agreement, Earnings, Off-BS Arrangement, Exhibits
8-K 2018-07-26 Earnings, Exhibits
8-K 2018-05-09 Shareholder Vote
8-K 2018-04-26 Earnings, Exhibits
8-K 2018-03-01 Regulation FD
8-K 2018-02-15 Earnings, Exhibits
AAN 2019-09-30
Part I - Financial Information
Item 1. Financial Statements
Note 1. Basis and Summary of Significant Accounting Policies
Note 2. Acquisitions
Note 3. Fair Value Measurement
Note 4. Loans Receivable
Note 5. Leases
Note 6. Commitments and Contingencies
Note 7. Segments
Note 8. Restructuring
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 a2019q310-qexhibit101.htm
EX-31.1 a2019q310-qexhibit311.htm
EX-31.2 a2019q310-qexhibit312.htm
EX-32.1 a2019q310-qexhibit321.htm
EX-32.2 a2019q310-qexhibit322.htm

Aaron's Earnings 2019-09-30

AAN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
AER 5,761 43,209 34,328 0 0 0 0 33,853 0%
ADT 4,517 16,977 13,087 4,861 0 -556 1,388 14,284 0% 10.3 -3%
AL 4,457 20,484 15,184 1,838 0 551 1,637 17,166 0% 10.5 3%
AAN 4,201 3,180 1,331 3,926 445 204 280 4,101 11% 14.6 6%
JOBS 3,731 12,238 4,420 0 0 0 0 1,757 0%
FTDR 3,675 1,179 1,457 1,315 633 139 260 4,237 48% 16.3 12%
ABM 2,432 3,744 2,240 6,499 719 89 253 3,296 11% 13.0 2%
TRTN 2,426 9,996 7,659 93 20 346 1,291 9,471 22% 7.3 3%
KFY 2,163 2,407 1,142 1,992 0 187 295 1,962 0% 6.7 8%
AYR 1,543 8,634 6,613 921 0 206 818 6,535 0% 8.0 2%

Document
816928000890932000500000P6Y1994100019970000false--12-31Q32019000070668828428700031115500062704000747520002000000.030.030.030.0350.0350.0350.50.52250000002250000009075212390752123130116000147389000300000P1Y32356797923602055 0000706688 2019-01-01 2019-09-30 0000706688 2019-10-28 0000706688 2018-12-31 0000706688 2019-09-30 0000706688 aan:NonRetailSalesMember 2018-01-01 2018-09-30 0000706688 aan:RetailSalesMember 2018-01-01 2018-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember 2019-07-01 2019-09-30 0000706688 2018-07-01 2018-09-30 0000706688 aan:LeaseRevenuesandFeesMember 2018-01-01 2018-09-30 0000706688 2018-01-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember 2019-07-01 2019-09-30 0000706688 aan:NonRetailSalesMember 2019-07-01 2019-09-30 0000706688 2019-07-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember 2019-07-01 2019-09-30 0000706688 aan:NonRetailSalesMember 2018-07-01 2018-09-30 0000706688 aan:RetailSalesMember 2018-07-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember 2018-01-01 2018-09-30 0000706688 aan:RetailSalesMember 2019-01-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember 2018-07-01 2018-09-30 0000706688 aan:OtherRevenueMember 2018-07-01 2018-09-30 0000706688 aan:NonRetailSalesMember 2019-01-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember 2018-07-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember 2018-07-01 2018-09-30 0000706688 aan:RetailSalesMember 2019-07-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember 2019-01-01 2019-09-30 0000706688 aan:OtherRevenueMember 2019-01-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember 2018-01-01 2018-09-30 0000706688 aan:OtherRevenueMember 2018-01-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember 2019-01-01 2019-09-30 0000706688 aan:OtherRevenueMember 2019-07-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember 2019-01-01 2019-09-30 0000706688 2017-12-31 0000706688 2018-09-30 0000706688 us-gaap:OperatingSegmentsMember us-gaap:EntityOperatedUnitsMember 2018-09-30 0000706688 us-gaap:OperatingSegmentsMember us-gaap:FranchisedUnitsMember 2018-09-30 0000706688 us-gaap:OperatingSegmentsMember 2019-09-30 0000706688 us-gaap:OperatingSegmentsMember 2018-09-30 0000706688 us-gaap:OperatingSegmentsMember us-gaap:FranchisedUnitsMember 2019-09-30 0000706688 us-gaap:OperatingSegmentsMember us-gaap:EntityOperatedUnitsMember 2019-09-30 0000706688 aan:MerchandiseNotOnLeaseMember 2019-09-30 0000706688 aan:MerchandiseOnLeaseMember 2019-09-30 0000706688 aan:MerchandiseNotOnLeaseMember 2018-12-31 0000706688 aan:MerchandiseOnLeaseMember 2018-12-31 0000706688 srt:MinimumMember us-gaap:CreditCardReceivablesMember 2019-01-01 2019-09-30 0000706688 aan:AgreementOneMember aan:SalesAndLeaseOwnershipMember 2019-01-01 2019-09-30 0000706688 aan:AgreementThreeMember aan:SalesAndLeaseOwnershipMember 2019-01-01 2019-09-30 0000706688 aan:MerchandiseNotOnLeaseMember 2019-01-01 2019-09-30 0000706688 aan:SalesandLeaseOwnershipandHomeSmartMember 2019-01-01 2019-09-30 0000706688 srt:MinimumMember aan:MerchandiseOnLeaseMember 2019-01-01 2019-09-30 0000706688 srt:MaximumMember us-gaap:CreditCardReceivablesMember 2019-01-01 2019-09-30 0000706688 us-gaap:CreditCardReceivablesMember 2019-01-01 2019-09-30 0000706688 aan:RelatedPartyMember 2019-01-01 2019-09-30 0000706688 2019-01-01 2019-06-30 0000706688 aan:AgreementTwoMember aan:SalesAndLeaseOwnershipMember 2019-01-01 2019-09-30 0000706688 2018-01-01 2018-12-31 0000706688 aan:InitialFranchiseFeesMember srt:MaximumMember aan:SalesandLeaseOwnershipandHomeSmartMember 2019-01-01 2019-09-30 0000706688 aan:AllAcquisitionsExcludingSEIAcquisitionMember 2019-01-01 2019-09-30 0000706688 aan:ProgressiveFinanceHoldingsLLCMember 2018-01-01 2018-12-31 0000706688 srt:MaximumMember aan:MerchandiseOnLeaseMember 2019-01-01 2019-09-30 0000706688 us-gaap:CreditCardReceivablesMember 2019-09-30 0000706688 srt:MinimumMember us-gaap:CreditCardReceivablesMember 2019-09-30 0000706688 srt:MaximumMember us-gaap:CreditCardReceivablesMember 2019-09-30 0000706688 aan:ProgressiveLeasingMember 2019-09-30 0000706688 aan:AgreementOneMember aan:ProgressiveFinanceHoldingsLLCMember 2019-01-01 2019-09-30 0000706688 aan:RelatedPartyMember 2002-01-01 2004-12-31 0000706688 aan:InitialFranchiseFeesMember srt:MinimumMember aan:SalesandLeaseOwnershipandHomeSmartMember 2019-01-01 2019-09-30 0000706688 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2019-01-01 0000706688 2019-01-01 2019-03-31 0000706688 us-gaap:RetainedEarningsMember 2019-09-30 0000706688 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000706688 2019-04-01 2019-06-30 0000706688 us-gaap:CommonStockMember 2019-06-30 0000706688 us-gaap:CommonStockMember 2019-09-30 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000706688 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000706688 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000706688 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000706688 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0000706688 us-gaap:RetainedEarningsMember 2019-03-31 0000706688 us-gaap:TreasuryStockMember 2018-12-31 0000706688 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000706688 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000706688 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0000706688 us-gaap:TreasuryStockMember 2019-07-01 2019-09-30 0000706688 us-gaap:RetainedEarningsMember 2019-06-30 0000706688 us-gaap:CommonStockMember 2018-12-31 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0000706688 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000706688 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000706688 us-gaap:TreasuryStockMember 2019-09-30 0000706688 us-gaap:TreasuryStockMember 2019-03-31 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0000706688 us-gaap:TreasuryStockMember 2019-06-30 0000706688 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0000706688 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000706688 us-gaap:RetainedEarningsMember 2018-12-31 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000706688 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000706688 2019-03-31 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000706688 2019-06-30 0000706688 us-gaap:CommonStockMember 2019-03-31 0000706688 aan:ProgressiveLeasingMember 2019-07-01 2019-09-30 0000706688 aan:ProgressiveLeasingMember 2018-07-01 2018-09-30 0000706688 us-gaap:TreasuryStockMember 2018-01-01 2018-03-31 0000706688 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 0000706688 us-gaap:CommonStockMember 2018-06-30 0000706688 us-gaap:TreasuryStockMember 2018-03-31 0000706688 2018-03-31 0000706688 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0000706688 us-gaap:TreasuryStockMember 2018-06-30 0000706688 us-gaap:RetainedEarningsMember 2018-03-31 0000706688 us-gaap:CommonStockMember 2017-12-31 0000706688 2018-01-01 2018-03-31 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0000706688 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0000706688 2018-04-01 2018-06-30 0000706688 us-gaap:TreasuryStockMember 2018-07-01 2018-09-30 0000706688 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000706688 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2018-01-01 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000706688 2018-06-30 0000706688 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000706688 us-gaap:CommonStockMember 2018-09-30 0000706688 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0000706688 us-gaap:RetainedEarningsMember 2018-06-30 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000706688 us-gaap:TreasuryStockMember 2017-12-31 0000706688 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000706688 us-gaap:TreasuryStockMember 2018-09-30 0000706688 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0000706688 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000706688 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0000706688 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0000706688 us-gaap:RetainedEarningsMember 2018-09-30 0000706688 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0000706688 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000706688 us-gaap:RetainedEarningsMember 2017-12-31 0000706688 us-gaap:CommonStockMember 2018-03-31 0000706688 aan:FICOScoreLessthan600Member 2018-12-31 0000706688 us-gaap:FicoScoreGreaterThan700Member 2018-12-31 0000706688 us-gaap:FicoScoreGreaterThan700Member 2019-09-30 0000706688 aan:FICOScoreLessthan600Member 2019-09-30 0000706688 us-gaap:FicoScore600To699Member 2019-09-30 0000706688 us-gaap:FicoScore600To699Member 2018-12-31 0000706688 us-gaap:TradeAccountsReceivableMember 2018-12-31 0000706688 aan:CorporateReceivableMember 2019-09-30 0000706688 aan:FranchiseeReceivableMember 2018-12-31 0000706688 aan:FranchiseeReceivableMember 2019-09-30 0000706688 us-gaap:TradeAccountsReceivableMember 2019-09-30 0000706688 aan:CorporateReceivableMember 2018-12-31 0000706688 aan:FranchiseeAcquisitionsMember 2019-07-01 2019-09-30 0000706688 aan:FranchiseeAcquisitionsMember 2019-06-30 0000706688 aan:FranchiseeAcquisitionsMember 2019-09-30 0000706688 aan:FranchiseeAcquisitionsMember 2019-06-30 2019-06-30 0000706688 aan:FranchiseeAcquisitionsMember us-gaap:CustomerRelationshipsMember 2018-07-01 2018-07-31 0000706688 aan:FranchiseeAcquisitionsMember us-gaap:CustomerContractsMember 2018-07-01 2018-07-31 0000706688 aan:FranchiseeAcquisitionsMember 2018-07-01 2018-07-31 0000706688 aan:FranchiseeAcquisitionsMember us-gaap:FranchiseRightsMember 2018-07-01 2018-07-31 0000706688 aan:FranchiseeAcquisitionsMember us-gaap:NoncompeteAgreementsMember 2018-07-01 2018-07-31 0000706688 aan:AllAcquisitionsExcludingSEIAcquisitionMember 2018-01-01 2018-09-30 0000706688 aan:FranchiseeAcquisitionsMember 2019-01-01 2019-09-30 0000706688 aan:FranchiseeAcquisitionsMember 2018-07-01 2018-09-30 0000706688 aan:FranchiseeAcquisitionsMember 2018-12-31 0000706688 aan:FranchiseeAcquisitionsMember 2018-01-01 2018-12-31 0000706688 aan:FranchiseeAcquisitionsMember 2018-01-01 2018-09-30 0000706688 us-gaap:LongTermDebtMember 2018-12-31 0000706688 us-gaap:LongTermDebtMember 2019-09-30 0000706688 us-gaap:FairValueInputsLevel1Member us-gaap:LongTermDebtMember 2018-12-31 0000706688 us-gaap:FairValueInputsLevel3Member us-gaap:LongTermDebtMember 2019-09-30 0000706688 us-gaap:FairValueInputsLevel2Member us-gaap:LongTermDebtMember 2019-09-30 0000706688 us-gaap:FairValueInputsLevel3Member us-gaap:LongTermDebtMember 2018-12-31 0000706688 us-gaap:FairValueInputsLevel2Member us-gaap:LongTermDebtMember 2018-12-31 0000706688 us-gaap:FairValueInputsLevel1Member us-gaap:LongTermDebtMember 2019-09-30 0000706688 us-gaap:FairValueInputsLevel1Member 2019-09-30 0000706688 us-gaap:FairValueInputsLevel2Member 2019-09-30 0000706688 us-gaap:FairValueInputsLevel3Member 2019-09-30 0000706688 us-gaap:FairValueInputsLevel3Member 2018-12-31 0000706688 us-gaap:FairValueInputsLevel1Member 2018-12-31 0000706688 us-gaap:FairValueInputsLevel2Member 2018-12-31 0000706688 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0000706688 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0000706688 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0000706688 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000706688 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000706688 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000706688 us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0000706688 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0000706688 us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0000706688 us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0000706688 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0000706688 us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0000706688 aan:AcquiredLoansMember 2018-12-31 0000706688 aan:AcquiredLoansMember 2019-09-30 0000706688 us-gaap:CreditCardReceivablesMember 2018-12-31 0000706688 srt:MaximumMember 2019-09-30 0000706688 aan:RestructuringExpensesMember 2019-01-01 2019-09-30 0000706688 us-gaap:OperatingExpenseMember 2019-07-01 2019-09-30 0000706688 us-gaap:OperatingExpenseMember 2019-01-01 2019-09-30 0000706688 aan:RestructuringExpensesMember 2019-07-01 2019-09-30 0000706688 srt:MinimumMember 2019-09-30 0000706688 us-gaap:UnusedLinesOfCreditMember 2019-09-30 0000706688 us-gaap:SubsequentEventMember 2019-10-11 0000706688 aan:FranchiseLoanFacilityMember 2019-01-01 2019-09-30 0000706688 us-gaap:UnusedLinesOfCreditMember 2018-12-31 0000706688 aan:RetailSalesMember aan:AaronsBusinessMember 2018-07-01 2018-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:DentAMedInc.Member 2018-07-01 2018-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:AaronsBusinessMember 2018-07-01 2018-09-30 0000706688 aan:NonRetailSalesMember aan:AaronsBusinessMember 2018-07-01 2018-09-30 0000706688 aan:NonRetailSalesMember aan:DentAMedInc.Member 2018-07-01 2018-09-30 0000706688 aan:OtherRevenueMember aan:AaronsBusinessMember 2018-07-01 2018-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:ProgressiveLeasingMember 2018-07-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:AaronsBusinessMember 2018-07-01 2018-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:ProgressiveLeasingMember 2018-07-01 2018-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:AaronsBusinessMember 2018-07-01 2018-09-30 0000706688 aan:RetailSalesMember aan:DentAMedInc.Member 2018-07-01 2018-09-30 0000706688 aan:OtherRevenueMember aan:DentAMedInc.Member 2018-07-01 2018-09-30 0000706688 aan:OtherRevenueMember aan:ProgressiveLeasingMember 2018-07-01 2018-09-30 0000706688 aan:NonRetailSalesMember aan:ProgressiveLeasingMember 2018-07-01 2018-09-30 0000706688 aan:RetailSalesMember aan:ProgressiveLeasingMember 2018-07-01 2018-09-30 0000706688 aan:DentAMedInc.Member 2018-07-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:ProgressiveLeasingMember 2018-07-01 2018-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:DentAMedInc.Member 2018-07-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:DentAMedInc.Member 2018-07-01 2018-09-30 0000706688 aan:AaronsBusinessMember 2018-07-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:DentAMedInc.Member 2018-01-01 2018-09-30 0000706688 aan:AaronsBusinessMember 2018-01-01 2018-09-30 0000706688 aan:NonRetailSalesMember aan:AaronsBusinessMember 2018-01-01 2018-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:ProgressiveLeasingMember 2018-01-01 2018-09-30 0000706688 aan:NonRetailSalesMember aan:ProgressiveLeasingMember 2018-01-01 2018-09-30 0000706688 aan:NonRetailSalesMember aan:DentAMedInc.Member 2018-01-01 2018-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:AaronsBusinessMember 2018-01-01 2018-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:DentAMedInc.Member 2018-01-01 2018-09-30 0000706688 aan:OtherRevenueMember aan:AaronsBusinessMember 2018-01-01 2018-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:ProgressiveLeasingMember 2018-01-01 2018-09-30 0000706688 aan:ProgressiveLeasingMember 2018-01-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:ProgressiveLeasingMember 2018-01-01 2018-09-30 0000706688 aan:RetailSalesMember aan:AaronsBusinessMember 2018-01-01 2018-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:AaronsBusinessMember 2018-01-01 2018-09-30 0000706688 aan:OtherRevenueMember aan:ProgressiveLeasingMember 2018-01-01 2018-09-30 0000706688 aan:RetailSalesMember aan:DentAMedInc.Member 2018-01-01 2018-09-30 0000706688 aan:OtherRevenueMember aan:DentAMedInc.Member 2018-01-01 2018-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:DentAMedInc.Member 2018-01-01 2018-09-30 0000706688 aan:DentAMedInc.Member 2018-01-01 2018-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:AaronsBusinessMember 2018-01-01 2018-09-30 0000706688 aan:RetailSalesMember aan:ProgressiveLeasingMember 2018-01-01 2018-09-30 0000706688 aan:NonRetailSalesMember aan:AaronsBusinessMember 2019-07-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:AaronsBusinessMember 2019-07-01 2019-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:DentAMedInc.Member 2019-07-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:ProgressiveLeasingMember 2019-07-01 2019-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:ProgressiveLeasingMember 2019-07-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:DentAMedInc.Member 2019-07-01 2019-09-30 0000706688 aan:AaronsBusinessMember 2019-07-01 2019-09-30 0000706688 aan:RetailSalesMember aan:AaronsBusinessMember 2019-07-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:DentAMedInc.Member 2019-07-01 2019-09-30 0000706688 aan:RetailSalesMember aan:ProgressiveLeasingMember 2019-07-01 2019-09-30 0000706688 aan:OtherRevenueMember aan:DentAMedInc.Member 2019-07-01 2019-09-30 0000706688 aan:RetailSalesMember aan:DentAMedInc.Member 2019-07-01 2019-09-30 0000706688 aan:OtherRevenueMember aan:AaronsBusinessMember 2019-07-01 2019-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:AaronsBusinessMember 2019-07-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:AaronsBusinessMember 2019-07-01 2019-09-30 0000706688 aan:OtherRevenueMember aan:ProgressiveLeasingMember 2019-07-01 2019-09-30 0000706688 aan:DentAMedInc.Member 2019-07-01 2019-09-30 0000706688 aan:NonRetailSalesMember aan:DentAMedInc.Member 2019-07-01 2019-09-30 0000706688 aan:NonRetailSalesMember aan:ProgressiveLeasingMember 2019-07-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:ProgressiveLeasingMember 2019-07-01 2019-09-30 0000706688 country:CA aan:AaronsBusinessMember 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-30 0000706688 aan:AaronsBusinessMember 2018-04-01 2018-06-30 0000706688 us-gaap:OperatingSegmentsMember aan:AaronsBusinessMember 2018-12-31 0000706688 srt:SubsidiariesMember aan:DentAMedInc.Member 2019-01-01 2019-09-30 0000706688 aan:LeasesMember 2018-07-01 2018-09-30 0000706688 aan:LeasesMember 2019-01-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-09-30 0000706688 us-gaap:OperatingSegmentsMember aan:AaronsBusinessMember 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-09-30 0000706688 aan:LeasesMember 2018-01-01 2018-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-30 0000706688 aan:LeasesMember 2019-07-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:ProgressiveLeasingMember 2019-01-01 2019-09-30 0000706688 aan:RetailSalesMember aan:DentAMedInc.Member 2019-01-01 2019-09-30 0000706688 aan:RetailSalesMember aan:ProgressiveLeasingMember 2019-01-01 2019-09-30 0000706688 aan:NonRetailSalesMember aan:ProgressiveLeasingMember 2019-01-01 2019-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:ProgressiveLeasingMember 2019-01-01 2019-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:DentAMedInc.Member 2019-01-01 2019-09-30 0000706688 aan:NonRetailSalesMember aan:DentAMedInc.Member 2019-01-01 2019-09-30 0000706688 aan:OtherRevenueMember aan:AaronsBusinessMember 2019-01-01 2019-09-30 0000706688 aan:AaronsBusinessMember 2019-01-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:DentAMedInc.Member 2019-01-01 2019-09-30 0000706688 aan:DentAMedInc.Member 2019-01-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:AaronsBusinessMember 2019-01-01 2019-09-30 0000706688 aan:OtherRevenueMember aan:DentAMedInc.Member 2019-01-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:DentAMedInc.Member 2019-01-01 2019-09-30 0000706688 aan:FranchiseRoyaltiesAndFeesMember aan:ProgressiveLeasingMember 2019-01-01 2019-09-30 0000706688 aan:OtherRevenueMember aan:ProgressiveLeasingMember 2019-01-01 2019-09-30 0000706688 aan:NonRetailSalesMember aan:AaronsBusinessMember 2019-01-01 2019-09-30 0000706688 aan:ProgressiveLeasingMember 2019-01-01 2019-09-30 0000706688 aan:RetailSalesMember aan:AaronsBusinessMember 2019-01-01 2019-09-30 0000706688 aan:LeaseRevenuesandFeesMember aan:AaronsBusinessMember 2019-01-01 2019-09-30 0000706688 aan:InterestandFeesonLoansReceivableMember aan:AaronsBusinessMember 2019-01-01 2019-09-30 0000706688 aan:AaronsBusinessMember 2019-09-30 0000706688 aan:DentAMedInc.Member 2018-12-31 0000706688 aan:DentAMedInc.Member 2019-09-30 0000706688 us-gaap:AllOtherSegmentsMember 2019-09-30 0000706688 aan:AaronsBusinessMember 2018-12-31 0000706688 aan:ProgressiveLeasingMember 2018-12-31 0000706688 us-gaap:AllOtherSegmentsMember 2018-12-31 0000706688 us-gaap:ContractTerminationMember 2019-09-30 0000706688 us-gaap:ContractTerminationMember 2019-01-01 2019-09-30 0000706688 us-gaap:EmployeeSeveranceMember 2019-09-30 0000706688 us-gaap:EmployeeSeveranceMember 2018-12-31 0000706688 us-gaap:AccountingStandardsUpdate201602Member us-gaap:ContractTerminationMember 2019-01-01 2019-01-01 0000706688 us-gaap:AccountingStandardsUpdate201602Member us-gaap:EmployeeSeveranceMember 2019-01-01 2019-01-01 0000706688 us-gaap:AccountingStandardsUpdate201602Member us-gaap:ContractTerminationMember 2018-12-31 0000706688 us-gaap:ContractTerminationMember 2018-12-31 0000706688 us-gaap:EmployeeSeveranceMember 2019-01-01 2019-09-30 0000706688 us-gaap:AccountingStandardsUpdate201602Member us-gaap:EmployeeSeveranceMember 2018-12-31 0000706688 country:CA aan:RestructuringProgramTwoThousandandNineteenMember 2019-09-30 0000706688 aan:RestructuringProgramTwoThousandandNineteenMember 2019-01-01 2019-09-30 0000706688 aan:RestructuringProgramTwoThousandandNineteenMember 2019-07-01 2019-09-30 0000706688 aan:TwoThousandSixteenAndTwoThousandSeventeenProgramsMember 2019-01-01 2019-09-30 0000706688 aan:TwoThousandSixteenAndTwoThousandSeventeenProgramsMember 2016-01-01 2019-09-30 0000706688 us-gaap:FacilityClosingMember 2016-01-01 2018-12-31 0000706688 aan:TwoThousandSixteenAndTwoThousandSeventeenProgramsMember 2019-07-01 2019-09-30 0000706688 us-gaap:OtherRestructuringMember 2018-07-01 2018-09-30 0000706688 aan:RightofUseAssetImpairmentandOperatingLeaseChargesMember 2018-01-01 2018-09-30 0000706688 us-gaap:FacilityClosingMember 2018-07-01 2018-09-30 0000706688 aan:FixedAssetsMember 2018-01-01 2018-09-30 0000706688 aan:FixedAssetsMember 2019-07-01 2019-09-30 0000706688 aan:RightofUseAssetImpairmentandOperatingLeaseChargesMember 2018-07-01 2018-09-30 0000706688 us-gaap:OtherRestructuringMember 2018-01-01 2018-09-30 0000706688 us-gaap:EmployeeSeveranceMember 2018-07-01 2018-09-30 0000706688 aan:FixedAssetsMember 2018-07-01 2018-09-30 0000706688 us-gaap:EmployeeSeveranceMember 2019-07-01 2019-09-30 0000706688 us-gaap:EmployeeSeveranceMember 2018-01-01 2018-09-30 0000706688 aan:RightofUseAssetImpairmentandOperatingLeaseChargesMember 2019-07-01 2019-09-30 0000706688 us-gaap:OtherRestructuringMember 2019-07-01 2019-09-30 0000706688 aan:FixedAssetsMember 2019-01-01 2019-09-30 0000706688 us-gaap:FacilityClosingMember 2019-07-01 2019-09-30 0000706688 us-gaap:FacilityClosingMember 2019-01-01 2019-09-30 0000706688 aan:RightofUseAssetImpairmentandOperatingLeaseChargesMember 2019-01-01 2019-09-30 0000706688 us-gaap:OtherRestructuringMember 2019-01-01 2019-09-30 0000706688 us-gaap:FacilityClosingMember 2018-01-01 2018-09-30 xbrli:pure aan:lease aan:franchise aan:property iso4217:USD xbrli:shares aan:store xbrli:shares aan:state iso4217:USD iso4217:CAD aan:segment aan:source
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 ________________________________
 FORM 10-Q
________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED September 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                      TO                     
COMMISSION FILE NUMBER 1-13941
 ________________________________
 AARON’S, INC.
(Exact name of registrant as specified in its charter)
 _________________________________
Georgia
 
58-0687630
(State or other jurisdiction of
incorporation or organization)
 
(I. R. S. Employer
Identification No.)
 
 
 
400 Galleria Parkway SE
Suite 300
Atlanta
Georgia
 
30339-3182
(Address of principal executive offices)
 
(Zip Code)
(678) 402-3000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 Trading Symbol
Name of each exchange on which registered
Common Stock, $0.50 Par Value
AAN 
New York Stock Exchange

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
 ___________________________________

Indicate by check mark whether registrant (l) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes     No  
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definition of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated Filer
 
 
 
Accelerated Filer
 
 
 
 
 
 
 
 
 
Non-Accelerated Filer
 
(Do not check if a smaller reporting company)
 
Smaller Reporting Company
 
 
 
 
 
 
 
 
 
Emerging Growth Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Title of Each Class
 
Shares Outstanding as of
October 28, 2019
Common Stock, $0.50 Par Value
 
67,151,778


1


AARON’S, INC.
INDEX
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 3. Defaults Upon Senior Securities
 
 
Item 4. Mine Safety Disclosures
 
 
Item 5. Other Information
 
 
 
 

2


PART I – FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
AARON’S, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
(Unaudited)
 
 
 
September 30,
2019
 
December 31,
2018
 
(In Thousands, Except Share Data)
ASSETS:
 
 
 
Cash and Cash Equivalents
$
150,261

 
$
15,278

Accounts Receivable (net of allowances of $74,752 in 2019 and $62,704 in 2018)
93,090

 
98,159

Lease Merchandise (net of accumulated depreciation and allowances of $890,932 in 2019 and $816,928 in 2018)
1,281,872

 
1,318,470

Loans Receivable (net of allowances and unamortized fees of $19,970 in 2019 and $19,941 in 2018)
72,130

 
76,153

Property, Plant and Equipment at Cost (net of accumulated depreciation of $311,155 in 2019 and $284,287 in 2018)
230,347

 
229,492

Operating Lease Right-of-Use Assets
330,508

 

Goodwill
735,782

 
733,170

Other Intangibles (net of accumulated amortization of $147,389 in 2019 and $130,116 in 2018)
198,216

 
228,600

Income Tax Receivable
15,931

 
29,148

Prepaid Expenses and Other Assets
111,483

 
98,222

Total Assets
$
3,219,620

 
$
2,826,692

LIABILITIES & SHAREHOLDERS’ EQUITY:
 
 
 
Accounts Payable and Accrued Expenses
$
254,234

 
$
293,153

Deferred Income Taxes Payable
297,110

 
267,500

Customer Deposits and Advance Payments
79,071

 
80,579

Operating Lease Liabilities
374,443

 

Debt
347,107

 
424,752

Total Liabilities
1,351,965

 
1,065,984

Commitments and Contingencies (Note 6)


 


SHAREHOLDERS' EQUITY:
 
 
 
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at September 30, 2019 and December 31, 2018; Shares Issued: 90,752,123 at September 30, 2019 and December 31, 2018
45,376

 
45,376

Additional Paid-in Capital
283,454

 
278,922

Retained Earnings
2,139,353

 
2,005,344

Accumulated Other Comprehensive Loss
(348
)
 
(1,087
)
 
2,467,835

 
2,328,555

Less: Treasury Shares at Cost
 
 
 
Common Stock: 23,602,055 Shares at September 30, 2019 and 23,567,979 at December 31, 2018
(600,180
)
 
(567,847
)
Total Shareholders’ Equity
1,867,655

 
1,760,708

Total Liabilities & Shareholders’ Equity
$
3,219,620

 
$
2,826,692

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

3


AARON’S, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
 
(In Thousands, Except Per Share Data)
REVENUES:
 
 
 
 
 
 
 
Lease Revenues and Fees
$
906,776

 
$
880,871

 
$
2,758,498

 
$
2,596,876

Retail Sales
8,854

 
7,620

 
30,561

 
22,728

Non-Retail Sales
31,085

 
44,368

 
102,190

 
151,259

Franchise Royalties and Fees
8,087

 
10,153

 
25,899

 
35,140

Interest and Fees on Loans Receivable
8,687

 
9,508

 
25,943

 
28,258

Other
319

 
551

 
961

 
1,478

 
963,808

 
953,071

 
2,944,052

 
2,835,739

COSTS AND EXPENSES:
 
 
 
 
 
 
 
Depreciation of Lease Merchandise
489,199

 
434,593

 
1,464,887

 
1,290,015

Retail Cost of Sales
5,742

 
4,877

 
20,025

 
14,695

Non-Retail Cost of Sales
24,913

 
35,214

 
83,057

 
130,302

Operating Expenses
383,264

 
420,602

 
1,154,056

 
1,199,171

Restructuring Expenses, Net
5,516

 
537

 
37,535

 
561

Other Operating Income, Net
(329
)
 
(38
)
 
(4,712
)
 
(286
)
 
908,305

 
895,785

 
2,754,848

 
2,634,458

OPERATING PROFIT
55,503

 
57,286

 
189,204

 
201,281

Interest Income
360

 
18

 
1,405

 
374

Interest Expense
(3,991
)
 
(3,735
)
 
(13,247
)
 
(11,868
)
Impairment of Investment

 

 

 
(20,098
)
Other Non-Operating (Expense) Income, Net
(207
)
 
(154
)
 
1,430

 
458

EARNINGS BEFORE INCOME TAXES
51,665

 
53,415

 
178,792

 
170,147

INCOME TAXES
11,864

 
9,695

 
40,263

 
35,680

NET EARNINGS
$
39,801

 
$
43,720

 
$
138,529

 
$
134,467

EARNINGS PER SHARE
 
 
 
 
 
 
 
Basic
$
0.59

 
$
0.64

 
$
2.05

 
$
1.93

Assuming Dilution
$
0.58

 
$
0.62

 
$
2.02

 
$
1.89

CASH DIVIDENDS DECLARED PER SHARE:
 
 
 
 
 
 
 
Common Stock
$
0.0350

 
$
0.0300

 
$
0.1050

 
$
0.0900

WEIGHTED AVERAGE SHARES OUTSTANDING:
 
 
 
 
 
 
 
Basic
67,400

 
68,819

 
67,461

 
69,521

Assuming Dilution
68,652

 
70,139

 
68,739

 
70,996

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

4


AARON’S, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(In Thousands)
2019
 
2018
 
2019
 
2018
Net Earnings
$
39,801

 
$
43,720

 
$
138,529

 
$
134,467

Other Comprehensive (Loss) Income:
 
 
 
 
 
 
 
Foreign Currency Translation Adjustment
(303
)
 
297

 
739

 
(715
)
Total Other Comprehensive (Loss) Income
(303
)
 
297

 
739

 
(715
)
Comprehensive Income
$
39,498

 
$
44,017

 
$
139,268

 
$
133,752

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.


5


AARON’S, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Nine Months Ended
September 30,
 
2019
 
2018
 
(In Thousands)
OPERATING ACTIVITIES:



Net Earnings
$
138,529


$
134,467

Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities:



Depreciation of Lease Merchandise
1,464,887


1,290,015

Other Depreciation and Amortization
79,419


68,730

Accounts Receivable Provision
228,608


188,763

Provision for Credit Losses on Loans Receivable
15,291


16,011

Stock-Based Compensation
20,261


21,793

Deferred Income Taxes
28,747


30,166

Impairment of Assets
29,031


20,098

Non-Cash Lease Expense
86,367

 

Other Changes, Net
3,423


(1,625
)
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions:





Additions to Lease Merchandise
(1,723,385
)

(1,583,184
)
Book Value of Lease Merchandise Sold or Disposed
298,904


289,859

Accounts Receivable
(225,372
)

(181,512
)
Prepaid Expenses and Other Assets
(19,642
)

(6,685
)
Income Tax Receivable
13,217


70,299

Operating Lease Liabilities
(91,333
)
 

Accounts Payable and Accrued Expenses
5,762


7,998

Customer Deposits and Advance Payments
(1,954
)

(2,198
)
Cash Provided by Operating Activities
350,760


362,995

INVESTING ACTIVITIES:





Investments in Loans Receivable
(49,311
)

(49,311
)
Proceeds from Loans Receivable
40,423


44,016

Proceeds from Investments


666

Outflows on Purchases of Property, Plant and Equipment
(67,049
)

(52,927
)
Proceeds from Property, Plant and Equipment
2,805


5,488

Outflows on Acquisitions of Businesses and Customer Agreements, Net of Cash Acquired
(12,873
)

(141,079
)
Proceeds from Dispositions of Businesses and Customer Agreements, Net of Cash Disposed
2,813


802

Cash Used in Investing Activities
(83,192
)

(192,345
)
FINANCING ACTIVITIES:





(Repayments) Borrowings on Revolving Facility, Net
(16,000
)

25,000

Repayments on Debt
(62,317
)

(96,857
)
Dividends Paid
(7,086
)

(4,186
)
Acquisition of Treasury Stock
(39,422
)

(100,004
)
Issuance of Stock Under Stock Option Plans
5,115


6,684

Shares Withheld for Tax Payments
(12,977
)

(17,282
)
Debt Issuance Costs


(55
)
Cash Used in Financing Activities
(132,687
)

(186,700
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
102


(1
)
Increase (Decrease) in Cash and Cash Equivalents
134,983


(16,051
)
Cash and Cash Equivalents at Beginning of Period
15,278


51,037

Cash and Cash Equivalents at End of Period
$
150,261


$
34,986

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

6


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


NOTE 1.
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business
Aaron's, Inc. (the "Company") is a leading omnichannel provider of lease-purchase solutions. As of September 30, 2019, the Company's operating and reportable segments are Progressive Leasing, Aaron's Business and Dent-A-Med, Inc. ("DAMI").
Progressive Leasing is a virtual lease-to-own company that provides month-to-month lease-purchase solutions in 46 states and the District of Columbia. It does so by purchasing merchandise from third-party retailers desired by those retailers' customers and, in turn, leasing that merchandise to the customers through a lease-to-own transaction. Progressive Leasing consequently has no stores of its own, but rather offers lease-purchase solutions to the customers of traditional and e-commerce retailers.
The following table presents invoice volume for Progressive Leasing:
For the Three Months Ended September 30 (Unaudited and In Thousands)
2019
 
2018
Progressive Leasing Invoice Volume1
$
420,902

 
$
355,005

1 Invoice volume is defined as the retail price of lease merchandise acquired and then leased to customers during the period, net of returns.
The Aaron's Business segment offers furniture, consumer electronics, home appliances and accessories to consumers primarily with a month-to-month, lease-to-own agreement with no credit needed through the Company's Aaron's-branded stores in the United States and Canada and its e-commerce platform. This operating segment also supports franchisees of its Aaron's-branded stores. In addition, the Aaron's Business segment includes the operations of Woodhaven Furniture Industries ("Woodhaven"), which manufactures and supplies the majority of the upholstered furniture and bedding leased and sold in Company-operated and franchised stores.
The Company acquired the store operations of six franchisees during the nine months ended September 30, 2019 and eight franchisees during the nine months ended September 30, 2018. Refer to Note 2 to these condensed consolidated financial statements.
The following table presents store count by ownership type for the Aaron's Business operations:
Stores as of September 30 (Unaudited)
2019
 
2018
Company-operated Aaron's Branded Stores
1,163

 
1,267

Franchised Stores
341

 
432

Systemwide Stores
1,504

 
1,699


DAMI partners with merchants to provide a variety of revolving credit products originated through two, third-party federally insured banks to customers that may not qualify for traditional prime lending (called "second-look" financing programs).
Basis of Presentation
The preparation of the Company's condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Generally, actual experience has been consistent with management's prior estimates and assumptions. Management does not believe these estimates or assumptions will change significantly in the future absent unidentified and unforeseen events.
The accompanying unaudited condensed consolidated financial statements do not include all information required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Annual Report") filed with the U.S. Securities and Exchange Commission on February 14, 2019. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of operating results for the full year.

7


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Principles of Consolidation
The condensed consolidated financial statements include the accounts of Aaron's, Inc. and its subsidiaries, each of which is wholly owned. Intercompany balances and transactions between consolidated entities have been eliminated.
Accounting Policies and Estimates
See Note 1 to the consolidated financial statements in the 2018 Annual Report.
Earnings Per Share
Earnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. The computation of earnings per share assuming dilution includes the dilutive effect of stock options, restricted stock units ("RSUs"), restricted stock awards ("RSAs") and performance share units ("PSUs") and awards issuable under the Company's employee stock purchase plan ("ESPP") (collectively, "share-based awards") as determined under the treasury stock method. The following table shows the calculation of dilutive share-based awards:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(Shares In Thousands)
2019
 
2018
 
2019
 
2018
Weighted Average Shares Outstanding
67,400

 
68,819

 
67,461

 
69,521

Dilutive Effect of Share-Based Awards
1,252

 
1,320

 
1,278

 
1,475

Weighted Average Shares Outstanding Assuming Dilution
68,652

 
70,139

 
68,739

 
70,996


Approximately 400,000 and 455,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the three and nine months ended September 30, 2019, respectively, as the awards would have been anti-dilutive for the periods presented.
Approximately 356,000 and 345,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the three and nine months ended September 30, 2018, respectively, as the awards would have been anti-dilutive for the periods presented.
Revenue Recognition
Lease Revenues and Fees
The Company provides merchandise, consisting primarily of furniture, consumer electronics, home appliances, jewelry and accessories, to its customers for lease under certain terms agreed to by the customer. The Company's Progressive Leasing segment offers customers of traditional and e-commerce retailers a virtual lease-purchase solution through leases with month-to-month terms that can be renewed up to 12 months. The Company's Aaron's-branded stores and its e-commerce platform offer leases with month-to-month terms that can be renewed up to 12, 18 or 24 months. The Company does not require deposits upon inception of customer agreements. The customer has the right to acquire ownership either through a purchase option or through payment of all required lease payments. The agreements are cancelable at any time by either party without penalty.
Progressive lease revenues are earned prior to the lease payment due date and are recorded net of related sales taxes as earned. Payment due dates terms include weekly, bi-weekly, and monthly. Revenue recorded prior to the payment due date results in unbilled accounts receivable in the accompanying condensed consolidated balance sheets. Beginning January 1, 2019, Progressive lease revenues are recorded net of a provision for returns and uncollectible renewal payments.
Aaron's Business lease revenues are recognized as revenue net of related sales taxes in the month they are earned. Lease payments received prior to the month earned are recorded as deferred lease revenue, and this amount is included in customer deposits and advance payments in the accompanying condensed consolidated balance sheets. Aaron's Business lease revenues are recorded net of a provision for returns and uncollectible renewal payments.
All of the Company's customer agreements are considered operating leases. The Company maintains ownership of the lease merchandise until all payment obligations are satisfied under sales and lease ownership agreements. Initial direct costs related to Progressive Leasing's lease purchase agreements are capitalized as incurred and amortized as operating expense over the estimated lease term. The capitalized costs have been classified within prepaid expenses and other assets in the accompanying condensed consolidated balance sheets. Initial direct costs related to Aaron's Business customer agreements are expensed as incurred and have been classified as operating expenses in the Company's condensed consolidated statements of earnings. The

8


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

statement of earnings effects of expensing the initial direct costs of the Aaron's Business as incurred are not materially different from amortizing initial direct costs over the lease term.
Retail and Non-Retail Sales
Revenues from the retail sale of merchandise to customers are recognized at the point of sale. Generally, the transfer of control occurs near or at the point of sale for retail sales. Revenues for the non-retail sale of merchandise to franchisees are recognized when control transfers to the franchisee, which is upon delivery of the merchandise.
Substantially all of the amounts reported as non-retail sales and non-retail cost of sales in the accompanying condensed consolidated statements of earnings relate to the sale of lease merchandise to franchisees. The Company classifies the sale of merchandise to other customers as retail sales in the condensed consolidated statements of earnings.
Franchise Royalties and Fees
The Company has no current plans to franchise additional Aaron's stores. Current franchisees pay an ongoing royalty of 6% of the weekly cash revenue collections, which is recognized as the fees become due. The Company received a non-refundable initial franchise fee from current franchisees from $15,000 to $50,000 per store depending upon market size. Franchise fees and area development fees were generated from the sale of rights to develop, own and operate sales and lease ownership stores and pre-opening services provided by Aaron's to assist in the start-up operations of the stores. The Company considers the rights to the intellectual property and the pre-opening services to be a single performance obligation, resulting in the recognition of revenue ratably over time from the store opening date throughout the remainder of the franchise agreement term. The Company believes that this period of time is most representative of the time period in which the franchisee realizes the benefits of having the right to access the Company's intellectual property.
The Company guarantees certain debt obligations of some of the franchisees and receives guarantee fees based on the outstanding debt obligations of such franchisees. Refer to Note 6 of these condensed consolidated financial statements for additional discussion of the Company's franchise-related guarantee obligation. The Company also charges fees for advertising efforts that benefit the franchisees. Such fees are recognized at the time the advertising takes place and are presented as franchise royalties and fees in the Company's condensed consolidated statements of earnings.
Interest and Fees on Loans Receivable
DAMI extends or declines credit to an applicant through its bank partners based upon the applicant's credit rating and other factors. Qualifying applicants receive a credit card to finance their initial purchase and to use in subsequent purchases at the merchant or other participating merchants for an initial 24-month period, which DAMI may renew if the cardholder remains in good standing.
DAMI acquires the loan receivable from merchants through its third-party bank partners at a discount from the face value of the loan. The discount is comprised of a merchant fee discount and a promotional fee discount, if applicable.
The merchant fee discount represents a pre-negotiated, nonrefundable discount that generally ranges from 3% to 25% of the loan face value. The discount is designed to cover the risk of loss related to the portfolio of cardholder charges and DAMI's direct origination costs. The merchant fee discount and origination costs are presented net on the condensed consolidated balance sheet in loans receivable. Cardholders generally have an initial 24-month period that the card is active. The merchant fee discount, net of the origination costs, is amortized on a net basis and is recorded as interest and fee revenue on loans receivable in the condensed consolidated statements of earnings on a straight-line basis over the initial 24-month period.
The discount from the face value of the loan on the acquisition of the loan receivable from the merchant through the third-party bank partners may also include a promotional fee discount, which generally ranges from 1% to 8%. The promotional fee discount is intended to compensate the holder of the loan receivable (i.e. DAMI) for deferred or reduced interest rates that are offered to the cardholder for a specified period on the outstanding loan balance (generally for six, 12 or 18 months). The promotional fee discount is amortized as interest and fee revenue on loans receivable in the condensed consolidated statements of earnings on a straight-line basis over the promotional interest period (i.e., over six, 12 or 18 months, depending on the promotion). The unamortized promotional fee discount is netted on the condensed consolidated balance sheet in loans receivable.

9


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The customer is typically required to make periodic minimum payments of at least 3.5% of the outstanding loan balance, which includes outstanding interest. Fixed and variable interest rates, typically 25% to 35.99%, are compounded daily for cards that do not qualify for deferred or reduced interest promotional periods. Interest income, which is recognized based upon the amount of the loans outstanding, is recognized as interest and fees on loans receivable in the billing period in which they are assessed if collectability is reasonably assured. For credit cards that provide deferred interest, if the balance is not paid off during the promotional period or if the cardholder defaults, interest is billed to the customers at standard rates and the cumulative amount owed is charged to the cardholder account in the month that the promotional period expires. For credit cards that provide reduced interest, if the balance is not paid off during the promotional period, interest is billed to the cardholder at standard rates in the month that the promotional period expires or when the cardholder defaults.
The Company recognizes interest revenue during the promotional period based on its historical experience related to cardholders that fail to pay off balances during the promotional period.
Annual fees are charged to cardholders at the commencement of the loan and on each subsequent anniversary date. Annual fees are deferred and recognized into revenue on a straight-line basis over a one-year period. Under the provisions of the credit card agreements, the Company also may assess fees for service calls or for missed or late payments, which are recognized as revenue in the billing period in which they are assessed if collectability is reasonably assured. Annual fees and other fees discussed are recognized as interest and fee revenue on loans receivable in the condensed consolidated statements of earnings.
Accounts Receivable
Accounts receivable consist primarily of receivables due from customers of Progressive Leasing and Company-operated stores, corporate receivables incurred during the normal course of business (primarily for vendor consideration and real estate leasing activities) and franchisee obligations.
Accounts receivable, net of allowances, consist of the following: 
(In Thousands)
September 30, 2019

December 31, 2018
Customers
$
67,359

 
$
60,879

Corporate
12,600

 
18,171

Franchisee
13,131

 
19,109

Accounts Receivable
$
93,090

 
$
98,159


The Company maintains an accounts receivable allowance, which primarily relates to its Progressive Leasing operations and the Aaron's Business operations. The Company’s policy for its Progressive Leasing segment is to record an allowance for returns and uncollectible renewal payments based on historical collection experience. During 2019, the Company adopted ASU 2016-02, Leases ("ASC 842") which resulted in the Progressive Leasing provision for returns and uncollectible renewal payments being recorded as a reduction of lease revenue and fees within the condensed consolidated statements of earnings beginning January 1, 2019. The provision for returns and uncollectible renewal payments for periods prior to 2019 are reported herein as bad debt expense within operating expenses in the condensed consolidated statements of earnings. The Progressive Leasing segment writes off lease receivables that are 120 days or more contractually past due.
For the Aaron's Business operations, contractually required lease payments are accrued when due. The Aaron's Business policy is to record a provision for returns and uncollectible contractually due renewal payments based on historical collection experience, which is recognized as a reduction of lease revenues and fees within the condensed consolidated statements of earnings. Aaron's Business writes off lease receivables that are 60 days or more past due on pre-determined dates twice monthly.
DAMI's allowance for uncollectible merchant accounts receivable, which primarily relates to cardholder returns and refunds, is recorded as bad debt expense within operating expenses in the condensed consolidated statements of earnings.

10


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following table shows the amounts recognized for bad debt expense and provision for returns and uncollected payments:
 
Nine Months Ended September 30,
(In Thousands)
2019
 
2018
Bad Debt Expense1
$
1,272

 
$
160,886

Provision for Returns and Uncollectible Renewal Payments2
227,336

 
27,877

Accounts Receivable Provision
$
228,608

 
$
188,763


1 Bad debt expense is recorded within operating expenses in the condensed consolidated financial statements.
2 In accordance with the adoption of ASC 842, Progressive Leasing provision for returns and uncollectible renewal payments are recorded as a reduction to lease revenues and fees within the condensed consolidated financial statements beginning January 1, 2019. Prior to January 1, 2019, Progressive Leasing provision for returns and uncollectible renewal payments were recorded as bad debt expense within operating expenses in the condensed consolidated financial statements.
Lease Merchandise
The Company's lease merchandise consists primarily of furniture, consumer electronics, home appliances, jewelry, and accessories and is recorded at the lower of cost or net realizable value. The cost of merchandise manufactured by our Woodhaven operations is recorded at cost and includes overhead from production facilities, shipping costs and warehousing costs. The Company's Progressive Leasing segment, at which substantially all merchandise is on lease, depreciates merchandise generally over 12 months. The Company's Aaron's Business segment begins depreciating merchandise at the earlier of 12 months and one day or when the item is leased. Aaron's Business depreciates merchandise to a 0% salvage value over the lease agreement period when on lease, generally 12 to 24 months, and generally 36 months when not on lease. Depreciation is accelerated upon early payout.
The following is a summary of lease merchandise, net of accumulated depreciation and allowances:
(In Thousands)
September 30, 2019
 
December 31, 2018
Merchandise on Lease
$
1,034,855

 
$
1,053,684

Merchandise Not on Lease
247,017

 
264,786

Lease Merchandise, net of Accumulated Depreciation and Allowances
$
1,281,872

 
$
1,318,470


The Company's policies require weekly lease merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. In addition to monthly cycle counting, full physical inventories are generally taken at the fulfillment and manufacturing facilities annually and appropriate provisions are made for missing, damaged and unsalable merchandise. In addition, the Company monitors lease merchandise levels and mix by division, store, and fulfillment center, as well as the average age of merchandise on hand. If obsolete lease merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off.
Generally, all lease merchandise is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off. The Company records a provision for write-offs on the allowance method, which estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based on historical write-off experience. The provision for write-offs is included in operating expenses in the accompanying condensed consolidated statements of earnings.
The following table shows the components of the allowance for lease merchandise write-offs:
 
Nine Months Ended September 30,
(In Thousands)
2019
 
2018
Beginning Balance
$
46,694

 
$
35,629

Merchandise Written off, net of Recoveries
(168,770
)
 
(130,946
)
Provision for Write-offs
186,922

 
146,091

Ending Balance
$
64,846

 
$
50,774



11


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Loans Receivable, Net
Gross loans receivable represents the principal balances of credit card charges at DAMI's participating merchants that remain due from cardholders, plus unpaid interest and fees due from cardholders. The allowances and unamortized fees represents an allowance for uncollectible amounts; merchant fee discounts, net of capitalized origination costs; promotional fee discounts; and deferred annual card fees.
Loans acquired in the October 15, 2015 DAMI acquisition (the "Acquired Loans") were recorded at their estimated fair value at the acquisition date. The projected net cash flows from expected payments of principal, interest, fees and servicing costs and anticipated charge-offs were included in the determination of fair value; therefore, an allowance for loan losses and an amount for unamortized fees were not recognized for the Acquired Loans. The difference, or discount, between the expected cash flows to be received and the fair value of the Acquired Loans is accreted to interest and fees on loans receivable based on the effective interest method. At each period end, the Company evaluates the appropriateness of the accretable discount on the Acquired Loans based on actual and revised projected future cash receipts.
Losses on loans receivable are recognized when they are incurred, which requires the Company to make its best estimate of probable losses inherent in the portfolio. The Company evaluates loans receivable collectively for impairment. The method for calculating the best estimate of probable losses takes into account the Company's historical experience, adjusted for current conditions and the Company's judgment concerning the probable effects of relevant observable data, trends and market factors. Economic conditions and loan performance trends are closely monitored to manage and evaluate exposure to credit risk. Trends in delinquency ratios are an indicator of credit risk within the loans receivable portfolio, including the migration of loans between delinquency categories over time. Charge-off rates represent another indicator of the potential for future credit losses. The risk in the loans receivable portfolio is correlated with broad economic trends, such as unemployment rates, gross domestic product growth and gas prices, which can have a material effect on credit performance. To the extent that actual results differ from estimates of uncollectible loans receivable, the Company's results of operations and liquidity could be materially affected.
The Company calculates the allowance for loan losses based on actual delinquency balances and historical average loss experience on loans receivable by aging category for the prior eight quarters. The allowance for loan losses is maintained at a level considered adequate to cover probable losses of principal, interest and fees on active loans in the loans receivable portfolio. The adequacy of the allowance is evaluated at each period end.
Delinquent loans receivable includes those that are 30 days or more past due based on their contractual billing dates. The Company places loans receivable on nonaccrual status when they are greater than 90 days past due or upon notification of cardholder bankruptcy, death or fraud. The Company discontinues accruing interest and fees and amortizing merchant fee discounts and promotional fee discounts for loans receivable in nonaccrual status. Loans receivable are removed from nonaccrual status when cardholder payments resume, the loan becomes 90 days or less past due and collection of the remaining amounts outstanding is deemed probable. Payments received on nonaccrual loans are allocated according to the same payment hierarchy methodology applied to loans that are accruing interest. Loans receivable are charged off no later than the end of the following month after the billing cycle in which the loans receivable become 120 days past due.
DAMI extends or declines credit to an applicant through its bank partners based upon the applicant's credit rating and other factors. Below is a summary of the credit quality of the Company's loan portfolio as of September 30, 2019 and December 31, 2018 by Fair Isaac and Company (FICO) score as determined at the time of loan origination:
FICO Score Category
September 30, 2019
 
December 31, 2018
600 or Less
5.6
%
 
3.7
%
Between 600 and 700
79.9
%
 
77.9
%
700 or Greater
14.5
%
 
18.4
%


12


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Prepaid Expenses and Other Assets
Prepaid expenses and other assets consist of the following:
(In Thousands)
September 30, 2019
 
December 31, 2018
Prepaid Expenses
$
37,658

 
$
30,763

Prepaid Insurance
26,535

 
27,948

Assets Held for Sale
10,017

 
6,589

Deferred Tax Asset
8,761

 
8,761

Other Assets
28,512

 
24,161

Prepaid Expenses and Other Assets
$
111,483

 
$
98,222


Assets Held for Sale
Certain properties, consisting of parcels of land and commercial buildings, met the held for sale classification criteria as of September 30, 2019 and December 31, 2018. Assets held for sale are recorded at the lower of their carrying value or fair value less estimated cost to sell and are classified within prepaid expenses and other assets in the condensed consolidated balance sheets. Depreciation is suspended on assets upon classification to held for sale.
The carrying amount of the properties held for sale as of September 30, 2019 and December 31, 2018 is $10.0 million and $6.6 million, respectively. The Company estimated the fair values of real estate properties using the market values for similar properties. These properties are considered Level 2 assets as defined below.
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consist of the following:
(In Thousands)
September 30, 2019
 
December 31, 2018
Accounts Payable
$
72,190

 
$
88,369

Accrued Insurance Costs
41,872

 
40,423

Accrued Salaries and Benefits
49,052

 
40,790

Accrued Real Estate and Sales Taxes
32,337

 
30,332

Deferred Rent1

 
27,270

Other Accrued Expenses and Liabilities1
58,783

 
65,969

Accounts Payable and Accrued Expenses
$
254,234

 
$
293,153


1
Amounts as of September 30, 2019 were impacted by the January 1, 2019 adoption of ASC 842. Upon transition to ASC 842, the remaining balances of the Company's deferred rent, lease incentives, and closed store reserve were reclassified as a reduction to the operating lease right-of-use asset in the accompanying condensed consolidated balance sheet.
Debt
At September 30, 2019, the Company was in compliance with all covenants related to its outstanding debt. See Note 7 to the consolidated financial statements in the 2018 Annual Report for further information regarding the Company's indebtedness.

13


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Stockholders' Equity
Changes in stockholders' equity for the nine months ended September 30, 2019 and 2018 are as follows:
 
Treasury Stock
 
Common Stock
 
Additional
Paid-in Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Loss
Total Shareholders’ Equity
(In Thousands, Except Per Share)
Shares
 
Amount
 
 
 
 
Balance, December 31, 2018
(23,568
)
 
$
(567,847
)
 
$
45,376

 
$
278,922

 
$
2,005,344

 
$
(1,087
)
$
1,760,708

Opening Balance Sheet Adjustment - ASC 842, net of taxes

 

 

 

 
2,592

 

2,592

Cash Dividends, $0.035 per share

 

 

 

 
(2,363
)
 

(2,363
)
Stock-Based Compensation

 

 

 
7,050

 

 

7,050

Reissued Shares
493

 
4,264

 

 
(15,245
)
 

 

(10,981
)
Net Earnings

 

 

 

 
56,078

 

56,078

Foreign Currency Translation Adjustment

 

 

 

 

 
424

424

Balance, March 31, 2019
(23,075
)
 
(563,583
)
 
45,376

 
270,727

 
2,061,651

 
(663
)
1,813,508

Cash Dividends, $0.035 per share

 

 

 

 
(2,386
)
 

(2,386
)
Stock-Based Compensation

 

 

 
6,522

 

 

6,522

Reissued Shares
113

 
2,776

 

 
284

 

 

3,060

Repurchased Shares
(243
)
 
(14,414
)
 

 

 

 

(14,414
)
Net Earnings

 

 

 

 
42,650

 

42,650

Foreign Currency Translation Adjustment

 

 

 

 

 
618

618

Balance, June 30, 2019
(23,205
)
 
(575,221
)
 
45,376

 
277,533

 
2,101,915

 
(45
)
1,849,558

Cash Dividends, $0.035 per share

 

 

 

 
(2,363
)
 

(2,363
)
Stock-Based Compensation

 

 

 
5,911

 

 

5,911

Reissued Shares
2

 
49

 

 
10

 

 

59

Repurchased Shares
(399
)
 
(25,008
)
 

 

 

 

(25,008
)
Net Earnings

 

 

 

 
39,801

 

39,801

Foreign Currency Translation Adjustment

 

 

 

 

 
(303
)
(303
)
Balance, September 30, 2019
(23,602
)
 
$
(600,180
)
 
$
45,376

 
$
283,454

 
$
2,139,353

 
$
(348
)
$
1,867,655


14


AARON'S, INC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

 
Treasury Stock
 
Common Stock
 
Additional
Paid-in Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income (Loss)
Total Shareholders’ Equity
(In Thousands, Except Per Share)
Shares
 
Amount
 
 
 
 
Balance, December 31, 2017
(20,733
)
 
$
(407,713
)
 
$
45,376

 
$
270,043

 
$
1,819,524

 
$
774

$
1,728,004

Opening Balance Sheet Adjustment - ASC 606, net of taxes

 

 

 

 
(1,729
)
 

(1,729
)
Cash Dividends, $0.03 per share

 

 

 

 
(2,146
)
 

(2,146
)
Stock-Based Compensation

 

 

 
7,862

 

 

7,862

Reissued Shares
545

 
3,441

 

 
(12,602
)
 

 

(9,161
)
Repurchased Shares
(391
)
 
(18,407
)
 

 

 

 

(18,407
)
Net Earnings

 

 

 

 
52,246

 

52,246

Foreign Currency Translation Adjustment

 

 

 

 

 
(477
)
(477
)
Balance, March 31, 2018
(20,579
)
 
(422,679
)
 
45,376

 
265,303

 
1,867,895

 
297

1,756,192

Cash Dividends, $0.03 per share

 

 

 

 
(2,087
)
 

(2,087
)
Stock-Based Compensation

 

 

 
6,380

 

 

6,380

Reissued Shares
220

 
1,795

 

 
(5,408
)
 

 

(3,613
)
Repurchased Shares
(1,234
)
 
(50,025
)
 

 

 

 

(50,025
)
Net Earnings

 

 

 

 
38,501

 

38,501

Foreign Currency Translation Adjustment

 

 

 

 

 
(